Food Security Act of 1985
PL 99-198 (H.R.2100), enacted 12/23/1985

99 STAT. 1354 
PUBLIC LAW 99-198—DEC. 23, 1985 
•Public Law 99-198 
99th Congress 
An Act 
Dec. 23, 1985 
[H.R. 2100] 
Food Security 
Act of 1985. 
Farms and 
farming. 
Agriculture and 
agricultural 
commodities. 
7 u s e 1281 note. 
To extend and revise agricultural price support and related programs, to provide for 
agricultural export, resource conservation, farm credit, and agricultural research 
and related programs, to continue food assistance to low-income persons, to ensure 
consumers an abundance of food and flber at reasonable prices, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Food Security Act of 
1985". 
TABLE OF CONTENTS 
SEC. 2. The table of contents is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I-DAIRY 
Subtitle A—Milk Price Support and Producer-Supported Dairy Program 
Sec. 101. Milk price support, price reduction, and milk production termination pro-
grams for calendar years 1986 through 1990. 
Sec. 102. Administrative procedure*. 
Sec. 103. Application of support price for milk. 
Sec. 104. Avoidance of adverse effect of milk production termination program on 
beef, pork, and lamb producers. 
Sec. 105. Domestic casein industry. 
Sec. 106. Study relating to casein. 
Sec. 107. Circumvention of historical distribution of milk. 
Sec. 108. Application of amendments. 
Subtitle B—Dairy Research and Promotion 
Sec. 121. National Dairy Research Endowment Institute. 
Subtitle C—Milk Marketing Orders 
Sec. 131. Minimum adjustments to prices for fluid milk under marketing orders. 
Sec. 132. Adjustments for seasonal production; hearings on amendments; determi-
nation of milk prices. 
Sec. 133. Marketwide service pajonents. 
Sec. 134. Status of producer handlers. 
Subtitle D—National Commission on Dairy Policy 
Sec. 141. Findings and declaration of policy. 
Sec. 142. Establishment of commission. 
Sec. 143. Study and recommendations. 
Sec. 144. Administration. 
Sec. 145. Financial support. 
Sec. 146. Termination of commission. 
Subtitle E—Miscellaneous 
Sec. 151. Transfer of dairy products to the military and veterans hospitals. 
Sec. 152. Extension of the dairy indemnity program. 
Sec. 153. Dairy export incentive program. 
*Note: The printed text of Public Law 99-198 is a reprint of the hand enrollment, 
signed by the President on December 23, 1985. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1355 
TITLE n—WOOL AND MOHAIR 
Sec. 201. Extension of price support program. 
Sec. 202. Foreign promotion programs. 
TITLE III—WHEAT 
Sec. 301. Wheat poll. 
Sec. 302. Marketing quotas. 
Sec. 303. Marketing quota apportionment foctor. 
Sec. 304. Farm marketing quotas. 
Sec. 305. Marketing penalties. 
Sec. 306. Referendum. 
Sec. 307. Transfer of farm marketing (quotas. 
Sec. 308. Loan rates, target prices, disaster payments, acreage limitation and set-
aside programs, and land diversion for the 1986 through 1990 crops of 
wheat. 
Sec. 309. Nonapplicabilitv of certificate requirements. 
Sec. 310. Suspension of land use, wheat marketing allocation, and producer certifi-
cate provisions. 
Sec. 311. Suspension of certain quota provisions. 
Sec. 312. Nonapplicability of section 107 of the Agricultural Act of 1949 to the 1986 
through 1990 crops of wheat. 
TITLE IV—FEED GRAINS 
Sec. 401. Loan rates, target prices, disaster payments, acreage limitation and set-
aside programs, and land diversion for the 1986 through 1990 crops of 
feed grains. 
Sec. 402. Nonapplicability of section 105 of the agricultural act of 1949 to the 1986 
through 1990 crops of feed grains. 
Sec. 403. Price support for corn sil£ige. 
TITLE V—COTTON 
Sec. 501. Loan rates, target prices, disaster payments, acreage limitation program, 
and land diversion for the 1986 through 1990 crops of upland cotton. 
Sec. 502. Suspension of base acreage allotments, marketing quotas, and related pro-
visions. 
Sec. 503. Commodity Credit Corporation sales price restrictions. 
Sec. 504. Miscellaneous cotton provisions. 
Sec. 505. Skiprow practices. 
Sec. 506. Preliminary allotments for 1991 crop of upland cotton. 
Sec. 507. Extra long staple cotton. 
TITLE VI—RICE 
Sec. 601. Loan rates, target prices, disaster payments, acreage limitation program, 
and land diversion for the 1986 through 1990 crops of rice. 
Sec. 602. Marketing loan for the 1985 crop of rice. 
Sec. 603. Marketing certificates. 
TITLE VII—PEANUTS 
Sec. 701. Suspension of marketing quotas and acreage allotments. 
Sec. 702. National poundage quota and farm poundage quota. 
Sec. 703. Sale, lease, or transfer of farm poundage quota. 
Sec. 704. Marketing penalties; disposition of additional peanuts. 
Sec. 705. Price support program. 
Sec. 706. Reports and records. 
Sec. 707. Suspension of certain price support provisions. 
TITLE VIII—SOYBEANS 
Sec. 801. Soybean price support. 
TITLE IX—SUGAR 
Sec. 901. Sugar price support. 
Sec. 902. Prevention of sugar loan forfeitures. 
Sec. 903. Protection of sugar producers. 
TITLE X—GENERAL COMMODITY PROVISIONS 
Subtitle A—Miscellaneous Commodity Provisions 
Sec. 1001. Payment limitations. 
Sec. 1002. Advance deficiency and diversion payments. 
99 STAT. 1356 
PUBLIC LAW 99-198—DEC. 23, 1985 
Sec. 1003. Advance recQurse commodity loans. 
Sec. 1004. Interest payment certificates. 
Sec. 1005. Payments in commodities. 
•'" ' 
Sec. 1006. Wheat and feed grain export certificate programs. 
Sec. 1007. C!ommodity Credit Corporation sales price restrictions. 
Sec. 1008. Disaster payments for 1985 through 1990 crops of peanuts, soybeans, 
sugar beets, and sugarcane. 
Sec. 1009. Cost reduction options. 
Sec. 1010. Multiyear set-asides. 
Sec. 1011. Supplemental set-aside and acreage limitation authority. 
Sec. 1012. Producer reserve program for wheat and feed grains. 
Sec. 1013. Extension of reserve. ' 
Sec. 1014. Normally planted acreage. 
Sec. 1015. Special grazing and hay program. 
Sec. 1016. Advance announcement of programs. 
Sec. 1017. Determinations of the Secretary. 
Sec. 1018. Application of terms in the Agricultural Act of 1949. 
Sec. 1019. Normal supply. 
Sec. 1020. Marketing year for corn. 
Sec. 1021. Federal Crop Insurance Corporation emergency funding authority. 
Sec. 1022. Crop insurance study. 
Sec. 1023. National Agricultural Cost of Production Standards Review Board. 
Sec. 1024. Liquid fuels. 
Subtitle B—Uniform Base Acreage and Yield Provisions 
Sec. 1031. Acreage base and program yield system for the wheat, feed grain, upland 
cotton, and rice programs. 
Subtitle C—Honey 
Sec. 1041. Honey price support. 
TITLE XI—TRADE 
Subtitle A—Public Law 480 and Use of Surplus Commodities in International 
Programs 
Sec. 1101. Title II of Public Law 480—funding levels. 
Sec. 1102. Minimum quantity of agricultural commodities distributed under title II. 
Sec. 1103. Title II of Public Law 480—minimum for fortified or processed food and 
nonprofit agency proposals. 
Sec. 1104. Food assistance programs of voluntary agencies. 
Sec. 1105. Extension of the Public Law 480 authorities. 
Sec. 1106. Facilitation of exports. 
Sec. 1107. Farmer-to-farmer program under Public Law 480. 
Sec. 1108. Food for development program. 
Sec. 1109. Use of surplus commodities in international programs. 
Sec. 1110. Food for progress. 
Sec. n i l . Sales for local currencies; private enterprise promotion. 
Sec. 1112. Child immunization. 
Sec. 1113. Special Assistant for Agricultural Trade and Food Aid. 
Subtitle B—Maintenance and Development of Export Markets 
Sec. 1121. Trade policy declaration. 
Sec. 1122. Trade liberalization. 
Sec. 1123. Agricultural trade consultations. 
• 
Sec. 1124. Targeted export assistance. 
Sec. 1125. Short-term export credit. 
Sec. 1126. Cooperator market development program. 
Sec. 1127. Development jmd expansion of markets for United States agricultural 
commodities. 
Sec. 1128. Poultry, beef and pork meats and meat-food products, equitable treat-
ment. 
Sec. 1129. Pilot barter program for exchange of agricultural commodities for strate-
gic materials. 
Sec. 1130. Agricultural export credit revolving fund. 
Sec. 1131. Intermediate export credit. 
Sec. 1132. Agricultural attache reports. 
Sec. 1133. Contract sanctity and producer embargo protection. 
Sec. 1134. Study to reduce foreign exchange risk. 
- 
=
*
* 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1357 
Subtitle C—Export Transportation of Agricultural Commodities 
Sec. 1141. Findings and declarations. 
Sec. 1142. Exemption of certain agricultural exports from the requirements of the 
cargo preference laws. 
Sec. 1143. Effect on other lavrs. 
Subtitle D—Agricultural Imports 
Sec. 1151. Trade consultations. 
Sec. 1152. Apricot Study. 
Sec. 1155. Study relating to brazilian ethanol imports. 
Sec. 1156. Study of oat imports. 
Subtitle E—Trade Practices 
Sec. 1161. Tobacco pesticide residues. 
Sec. 1162. Assessment of export displacement. 
Sec. 1163. Export sales of dairy products. 
Sec. 1164. Unfair trade practices. 
Sec. 1165. Thai rice. 
Sec. 1166. End users of imported tobacco. 
Sec. 1167. Barter of agricultural commodities for strategic and critical materials. 
TITLE XII—CONSERVATION 
Subtitle A—Definitions 
Sec. 1201. Definitions. 
Subtitle B—Highly Erodible Land Conservation 
Sec. 1211. Program ineligibility. 
Sec. 1212. Exemptions. 
Sec. 1213. Soil surveys. 
Subtitle C—Wetland Conservation 
Sec. 1221. Program ineligibility. 
Sec. 1222. Exemptions. 
Sec. 1223. Consultation with Secretary of the Interior. 
Subtitle D—Conservation Acreage Reserve 
Sec. 1231. Conservation acreage reserve. 
Sec. 1232. Duties of owners and operators. 
Sec. 1233. Duties of the Secretary. 
Sec. 1234. Payments. 
Sec. 1235. Contracts. 
Sec. 1236. Base history. 
Subtitle E—Administration 
Sec. 1241. Use of Commodity Credit Corporation. 
Sec. 1242. Use of other agencies. 
Sec. 1243. Administration. 
Sec. 1244. Regulations. 
Sec. 1245. Authorization for appropriations. 
Subtitle F—Other Conservation Provisions 
Sec. 1251. Technical assistance for water resources. 
Sec. 1252. Soil and water resources conservation. 
Sec. 1253. Dry land farming. 
Sec. 1254. Softwood timber. 
TITLE XIII—CREDIT 
Sec. 1301. Joint operations. 
Sec. 1302. Eligibility for real estate and operating loans. 
Sec. 1303. Family farm restriction. 
Sec. 1304. Water and weiste disposal facilities. 
Sec. 1304A. Interest Rates—Water and Waste Disposal Facility and Community Fa-
cility Loans. 
Sec. 1305. Mineral rights as collateral. 
Sec. 1306. Farm recordkeeping training for limited resource borrowers. 
Sec. 1307. Nonsupervised accounts. 
Sec. 1308. Eligibility for emergency loans. 
99 STAT. 1358 
PUBLIC LAW 99-198—DEC. 23, 1985 
Sec. 1309. Settlement of claims. 
^ 
- 
•'• 
' -
Sec. 1310. Oil and gas royalties. 
Sec. 1311. County committees. 
Sec. 1312. Prompt approval of loans and loan guarantees. 
Sec. 1313. Appeals. 
Sec. 1314. Disposition and leasing of farmland. 
Sec. 1315. Release of normal income security. 
Sec. 1316. Loan summary statements. 
Sec. 1317. Authorization of loan amounts. 
Sec. 1318. Farm debt restructure and conservation set-aside conservation ease-
ments. 
Sec. 1319. Administration of guaranteed farm loan programs. 
Sec. 1320. Interest rate reduction program. 
Sec. 1321. Homestead protection. 
Sec. 1322. Extension of credit to all rural utilities that participate in the program 
administered by the rural electriflcation administration. 
Sec. 1323. Nonprofit national rural development and finance corporations. 
Sec. 1324. Protection for purchasers of farm products. 
Sec. 1325. Prohibiting coordinated financial statement. 
Sec. 1326. Regulatory restraint. 
Sec. 1327. Study of farm credit system. 
Sec. 1328. Continuation of small farmer training and technical assistance program. 
Sec. 1329. Study of farm and home plan. 
TITLE XIV—AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
Subtitle A—General Provisions 
Sec. 1401. Short title. 
i 
Sec. 1402. Findings. 
Sec. 1403. Definitions. 
Sec. 1404. Responsibilities of the Secretary of Agriculture. 
Sec. 1405. Joint Council on Food and Agricultural Sciences. 
Sec. 1406. National Agricultural Research and Extension Users Advisory Board. 
Sec. 1407. Federal-State partnership. 
Sec. 1408. Report of the Secretary of Agriculture. 
Sec. 1409. Competitive, special, and facilities research grants. 
Sec. 1410. Grants for schools of veterinary medicine. 
Sec. 1411. Research facilities. 
Sec. 1412. Grants and fellowships for food and agricultural sciences education. 
Sec. 1413. Food and human nutrition research and extension program. 
Sec. 1414. Animal health and disease research. 
Sec. 1415. Extension at 1890 land-grant colleges. 
Sec. 1416. Grants to upgrade 1890 land-grant college extension facilities. 
Sec. 1417. Research at 1890 land-grant colleges. 
Sec. 1418. International agricultural research and extension. 
Sec. 1419. International trade development centers. 
Sec. 1420. Agricultural information exchange with Ireland. 
Sec. 1421. Studies. 
. 
-
Sec. 1422. Authorization for appropriations for certain agricultural research pro-
grams. 
Sec. 1423. Authorization for appropriations for extension education. 
Sec. 1424. Contracts, grants, and cooperative agreements. 
Sec. 1425. Indirect costs. 
Sec. 1426. Cost-reimbursable agreements. 
Sec. 1427. Technology development. 
Sec. 1428. Supplemental and alternative crops. 
Sec. 1429. Aquaculture. 
Sec. 1430. Rangeland research. 
Sec. 1431. Authorization for appropriations for Federal agricultural research facili-
ties. 
Sec. 1432. Dairy goat research. 
Sec. 1433. Grants to upgrade 1890 land-grant college research facilities. 
Sec. 1434. Soybean Research Advisory Institute. 
Sec. 1435. Smith-Lever Act. 
Sec. 1436. Market expansion research. 
Sec. 1437. Pesticide resistance study. 
Sec. 1438. Expansion of education study. 
Sec. 1439. Critical agricultural materials. 
Sec. 1440. Special grants for financially stressed farmers and dislocated farmers. 
Sec. 1441. Annual report on family farms. 
Sec. 1442. Conforming amendments to tables of contents. 
,, .*.,. - ^c-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1359 
Subtitle B—Human Nutrition Research 
Sec. 1451. Findings. 
Sec. 1452. Human nutrition research. 
Sec. 1453. Dietary assessment and studies. 
Subtitle C—Agricultural Productivity Research 
Sec. 1461. Definitions. 
Sec 1462. Findings. 
Sec 1463. Purposes. 
Sec 1464. Information study. 
Sec 1465. Research projects. 
Sec 1466. Coordination. 
Sec 1467. Reports. 
Sec 1468. Agreements. 
Sec. 1469. Insemination of data. 
Sec 1470. Authorization for appropriations. 
Sec 1471. Effective date. 
TITLE XV—FOOD STAMP AND RELATED PROVISIONS 
Subtitle A—Food Stamp Provisions 
Sec. 1501. Publicly operated community mental health centers. 
Sec 1502. Determination of food sales volume. 
Sec 1503. Thri% food plan. 
Sec 1504. Definitions of the disabled. 
Sec 1505. State and local sales taxes. 
Sec 1506. Relation of food stamp and commodity distribution programs. 
Sec 1507. Cat^orical eligibility. 
Sec 1508. Tliird party payments. 
Sec 1509. Ehccluded income. 
Sec 1510. Child support payments. 
Sec 1511. Deductions from income. 
Sec. 1512. Income 
fi:x>m 
self-employment. 
Sec 1513. Retrospective budgeting and monthly reporting simplification. 
Sec 1514. Resources limitation. 
Sec 1515. Disaster task force. 
Sec 1516. El^ibility disqualifications. 
Sec. 1517. Employnient and training program. 
Sec 1518. Staggering of coupon issuance. 
Sec 1519. Alternative means of coupon issuance. 
Sec 1520. Simplified applications and standardized benefits. 
Sec. 1521. Dtsclosure of information submitted by retail stores. 
Sec 1522. Credit unions. 
Sec 1523. Charges for redemption of coupons. 
Sec 1524. Hours of operation. 
Sec 1525. Certification of information. 
Sec 1526. Fraud detection. 
Sec 1527. Verification. 
Sec 1528. Photographic identification cards. 
Sec 1529. EligibiUty of the homeless. 
Sec 1530. Expanded food and nutrition education program. 
Sec 1531. Food stamp program information and simplified application at social 
security administration offices. 
Sec 1532. Retail food stores and wholesale food concerns. 
Sec 1533. Liability for overissuanoe of coupons. 
Sec 1534. Collection of claims. 
Sec 1535. Food stamp intercept of unemployment benefits. 
Sec 1536. Administrative and judicial review. 
Sec 1537. State agency liabihty, quality control, and automatic data processing. 
Sec 1538. QuaUty control studies and penalty moratorium. 
Sec 1539. Geographical error-prone profiles. 
Sec 1540. Pilot projects. 
Sec 1541. Authorization ceiling; authority to reduce benefits. 
Sec 1542. Transfer of funds. 
Sec 1543. Puerto Rico block grant. 
Subtitle B—Commodity Distribution Provisions 
Sec 1561. Transfer of section 32 commodities. 
Sec 1562. Commodity distribution programs. 
Sec 1563. Emergency feeding organizations—definitions. 
99 STAT. 1360 
PUBLIC LAW 99-198—DEC. 23, 1985 
Sec. 1564. Temporary emergency food assistance program. 
Sec. 1565. Repeal of provisions relating to the food security wheat reserve. 
Sec. 1566. Report on commodity displacement. 
Sec. 1567. Distribution of surplus commodities; processing agreements. 
Sec. 1568. State cooperation. 
Sec. 1569. Authorization for funding and related provisions. 
Sec. 1570. Reauthorizations. 
Sec. 1571. Report. 
Subtitle C—Nutrition and Miscellaneous Provisions 
Sec. 1581. School lunch pilot project. 
Sec. 1582. Gleaning of fields. 
Sec. 1583. Issuance of rules. 
Sec. 1584. Nutrition education findings. 
Sec. 1585. Purpose. 
Sec. 1586. Program. 
Sec. 1587. Administration. 
Sec. 1588. Authorization of appropriations. 
Sec. 1589. Nutrition monitoring. 
TITLE XVI—MARKETING 
Subtitle A—Beef Promotion and Research Act of 1985 
Sec. 1601. Amendment to Beef Research and Information Act. 
Subtitle B—Pork Promotion, Researclv^d Consumer Informatioii 
Sec. 1611. Short title. 
Sec. 1612. Findings and declaration of purpose. 
Sec. 1613. Definitions. 
Sec. 1614. Pork and pork product orders. 
Sec. 1615. Notice and hearing. 
Sec. 1616. Findings and issuance of orders. 
Sec. 1617. National Pork Producers Del^ate Body. 
Sec. 1618. Selection of delegate body. 
Sec. 1619. National Pork Board. 
Sec. 1620. Assessments. 
Sec. 1621. Permissive provisions. 
Sec. 1622. Referendum. 
Sec. 1623. Suspension and termination of orders. 
Sec. 1624. Refunds. 
Sec. 1625. Petition and review. 
Sec. 1626. Enforcement. 
Sec. 1627. Investigations. 
Sec. 1628. Preemption. 
Sec. 1629. Administrative provision. 
Sec. 1630. Authorization for appropriations. 
Sec. 1631. Effective date. 
Subtitle C—Watermelon Research and Promotion Act 
Sec. 1641. Short title. 
Sec. 1642. Findings and declaration of policy. 
Sec. 1643. Definitions. 
Sec. 1644. Issuance of plans. 
Sec. 1645. Notice and hearings. 
Sec. 1646. Regulations. 
Sec. 1647. Required terms in plans. 
Sec. 1648. Permissive terms in plans. 
Sec. 1649. Assessment procedures. 
Sec. 1650. Petition and review. 
Sec. 1651. Enforcement. 
Sec. 1652. Investigation and power to subpoena. 
Sec. 1653. Requirement of referendum. 
Sec. 1654. Suspension or termination of plans. 
Sec. 1655. Amendment procedure. 
Sec. 1656. Separability. 
Sec. 1657. Authorization of appropriations. 
Subtitle D—Marketing Orders 
Sec. 1661. Maximum penalty for order violations. 
Sec. 1662. Limitation on authority to terminate marketing orders. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1361 
Sec. 1663. Confidentiality of information. 
Subtitle E—Grain Inspection 
Sec. 1671. Grain standards. 
Sec. 1672. New grain classifications. 
Sec. 1673. Study of grain standards. 
TITLE XVII—RELATED AND MISCELLANEOUS MATTERS 
Subtitle A—Processing, Inspection, and Labeling 
Sec. 1701. Poultry inspection. 
Sec. 1702. Inspection and other standards for imported meat and meat food 
products. 
Sec. 1703. Examination and report of labeling and sanitation standards for importa-
tion of agricultural commodities. 
Sec. 1704. Potato inspection. 
Subtitle B—Agricultural Stabilization and Conservation Committees 
Sec. 1711. Local committees. 
Sec. 1712. County committees. 
Sec. 1713. Salary and travel expenses. 
Subtitle C—National Agricultural Policy Commission Act of 1985 
Sec. 1721. Short title. 
Sec. 1722. Definitions. 
Sec. 1723. Establishment of commission. 
Sec. 1724. Conduct of study. 
Sec. 1725. Reports. 
Sec. 1726. Administration. 
Sec. 1727. Authorization of appropriations. 
Sec. 1728. Termination. 
Subtitle D—National Aquaculture Improvement Act of 1985 
Sec. 1731. Short title. 
Sec. 1732. Findings, purpose, and policy. 
Sec. 1733. Definitions. 
Sec. 1734. National aquaculture development plan. 
Sec. 1735. Functions and powers of secretaries. 
Sec. 1736. Coordination of national activities regarding aquaculture. 
Sec. 1737. Authorization of appropriations. 
Subtitle E—Special Study and Pilot Projects on Futures Trading 
Sec. 1741. Findings and declaration of policy. 
Sec. 1742. Study by the Department of Agriculture. 
Sec. 1743. Pilot program. 
Subtitle F—Animal Welfare 
Sec. 1751. Findings. 
Sec. 1752. Standards and certification process. 
Sec. 1753. Inspections. 
Sec. 1754. Penalty for release of trade secrets. 
Sec. 1755. Increased penalties for violation of the Act. 
Sec. 1756. Definitions. 
Sec. 1757. Consultation with the Secretary of Health and Human Services. 
Sec. 1758. Technical amendment. 
Sec. 1759. Effective date. 
Subtitle G—Miscellaneous 
Sec. 1761. Commodity credit corporation storage contracts. 
Sec. 1762. Weather and climate information in agriculture. 
Sec. 1763. Emergency feed program. 
Sec. 1764. Controlled substances production control. 
Sec. 1765. Study of unleaded fuel in agricultural machinery. 
Sec. 1766. Potato advisory panel. 
Sec. 1767. Viruses, serums, toxins, and analagous products. 
Sec. 1768. Authorization of appropriations for Federal Insecticide, Fungicide, and 
Rodenticide Act. 
Sec. 1769. User fees for reports, publications, and software. 
Sec. 1770. Confidentiality of information. 
99 STAT. 1362 
PUBLIC LAW 99-198—DEC. 23, 1985 
Sec. 1771. Land conveyance to Irwin County, Georgia. 
Sec. 1772. National tree seed laboratory. 
Sec. 1773. Control of grasshoppers and mormon crickets on all Federal lands. 
Sec. 1774. Study of a strategic ethanol reserve. 
TITLE XVIII—GENERAL EFFECTIVE DATE 
Sec. 1801. Effective Date. 
TITLE I—DAIRY 
Subtitle A—Milk Price Support and Producer-Supported Dairy 
Program 
MILK PRICE SUPPORT, PRICE REDUCTION, AND MILK 
PRODUCTION 
TERMINATION 
PROGRAMS FOR CALENDAR YEARS 1986 
THROUGH 
1990 
Ante, p. 818. 
SEC. 101. (a) Section 201(d) of the Agricultural Act of 1949 (7 U.S.C. 
1446(d)) is amended by striking out paragraphs (1) and (2) and 
inserting in lieu thereof the following: 
"(IXA) During the period beginning on January 1, 1986, and 
ending on December 31, 1990, the price of milk shall be sup-
ported as provided in this subsection. 
"(B) During the period beginning on January 1, 1986, and 
ending on December 31, 1986, the price of milk shall be sup-
ported at a rate equal to $11.60 per hundredweight for milk 
containing 3.67 percent milkfat. 
"(C)(i) During the period beginning on January 1, 1987, and 
ending on September 30, 1987, the price of milk shall be sup-
ported at a rate equal to $11.35 per hundredweight for milk 
containing 3.67 percent milkfat. 
"(ii) Except as provided in subparagraph (D), during the 
period beginning on October 1, 1987, and ending on December 
31, 1990, the price of milk shall be supported at a rate equal to 
$11.10 per hundredweight for milk containing 3.67 percent 
milkfat. 
"(D)(i) Subject to clause (ii), if for any of the calendar years 
1988, 1989, and 1990, the level of purchases of milk and the 
products of milk under this subsection (less sales under section 
7 use 1427. 
407 for unrestricted use), as estimated by the Secretary on 
January 1 of such calendar year, will exceed 5,000,000,000 
pounds (milk equivalent), on January 1 of such calendar year, 
the Secretary shall reduce by 50 cents the rate of price support 
for milk as in effect on such date. 
Prohibition. 
"(ii) The rate of price support for milk may not be reduced 
under clause (i) unless— 
"(I) the milk production termination program under 
paragraph (3) achieved a reduction in the production of 
milk 
by 
participants 
in 
the 
program 
of at 
least 
12,000,000,000 pounds during the 18 months of the program; 
or 
Contracts. 
"(II) the Secretary submits to Congress a certification, 
including a statement of facts in support of the certification 
of the Secretary, that reasonable contract offers were ex-
tended by the Secretary under such program but such offers 
were not accepted by a sufficient number of producers 
^ 
making reasonable bids for contracts to achieve such a 
reduction in production. 
"(E) If for any of the calendar years 1988, 1989, and 1990, the 
level of purchases of milk and the products of milk under this 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1363 
subsection (less sales under section 407 for unrestricted use), as 
7 use 1427. 
estimated by the Secretary on January 1 of such calendar year, 
will not exceed 2,500,000,000 pounds (milk equivalent), the Sec-
retary shall increase by 50 cents the rate of price support for 
milk in effect on such date. 
"(F) The price of milk shall be supported through the pur-
chase of milk and the products of milk. 
"(2XA) During the period beginning on April 1, 1986, and 
ending on September 30,1987, the Secretary shall provide for a 
reduction to be made in the price received by producers for all 
milk produced in the United States and marketed by producers 
for commercial use. 
"(B) The amount of the reduction under subparagraph (A) in 
the price received by producers shall be— 
"(i) the period beginning on April 1, 1986, and ending on 
December 31, 1986, 40 cents per hundredweight of milk 
marketed; and 
"(ii) during the first 9 months of 1987, 25 cents per 
hundredweight of milk marketed. 
"(C) The funds represented by the reduction in price, required 
under subparagraph (A) to be applied to the marketings of milk 
by a producer, shsdl be collected and remitted to the Commodity 
Credit Corporation, at such time and in such manner as pre-
scribed by the Secretary, by each person making pajonent to a 
producer for milk purchased from such producer, except that in 
the case of a producer who markets milk of the producer's own 
production directly to consumers, such funds shall be remitted 
directly to the Corporation by such producer. 
"(D) The funds remitted to the (>)rporation under this para-
graph shall be considered as included in the payments to a 
producer of milk for purposes of the minimum price provisions 
of the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), 
reenacted with amendments by the Agricultural Marketing 
Agreement Act of 1937.". 
(b) Paragraph (3) of section 201(d) of the Agricultural Act of 1949 
(7 U.S.C. 1446(d)) is amended by— 
(1) striking out subparagraphs (A) through (G), and inserting 
in lieu thereof the following: 
"(AXi) The Secretary shall establish and carry out under this 
paragraph a milk production termination program for the 18-
month period beginning April 1,1986. 
"(ii) Under the milk production 
termination 
program re- 
Contracts. 
quired under this subparagraph, the Secretary, at the request of 
any producer of milk in the United States who submits to the 
Secretary a bid, may offer to enter into a contract with the 
producer for the purpose of terminating the production of milk 
by the producer in return for a payment to be made by the 
Secretary. 
"(iii) For the 18-month period for which the milk production 
termination 
program under this subparagraph is in effect, the 
Secretary shall— 
"(I) as soon as practicable, determine the total number of 
dairy cattle the Secretary estimates will be marketed for 
slaughter as a result of such program; and 
"(II) by regulation specify marketing procedures 
to 
Regulation. 
ensure that greater numbers of dairy cattle slaughtered as 
a result of the production termination program provided for 
7 use 674. 
Animals. 
Exports. 
99 STAT. 1364 
PUBLIC LAW 99-198—DEC. 23, 1985 
Contracts. 
Regulations. 
Contracts. 
Prohibition. 
Contracts. 
Contracts. 
Contracts. 
Beef. 
Pork. 
Poultry. 
in this section shall be slaughtered in each of the periods of 
April through August 1986, and March through August 
1987 than for the other months of the program. Such 
procedures also shall ensure that such sales of dairy cattle 
for slaughter shall occur on a basis estimated by the Sec-
retary that maintains historical seasonal marketing pat-
terns. During such 18-month period, the Secretary shall 
limit the total number of dairy cattle marketed for 
slaughter under the program in excess of the historical 
dairy herd culling rate to no more than 7 percent of the 
national dairy herd per calendar year. 
"(iv) Each contract made under this subparagraph shall pro-
vide that— 
"(I) the producer shall sell for slaughter or for export all 
the dairy cattle in which such producer owns an interest; 
"(11) during a period of 3, 4, or 5 years, as specified by the 
Secretary in each producer contract and beginning on the 
day the producer completes compliance with subclause (I), 
the producer neither shall acquire any interest in dairy 
cattle or in the production of milk nor acquire, or make 
available to any person, any milk production capacity of a 
facility that becomes available because of compliance by a 
producer with such subclause unless the Secretary shall by 
regulation otherwise permit; and 
(III) if the producer fails to comply with such contract, 
the producer shall repay to the Secretary the entire pay-
ment received under the contract, including simple interest 
payable at a rate prescribed by the Secretary, which shall, 
to the extent practicable, reflect the cost to the Corporation 
of its borrowings from the Treasury of the United States, 
commencing on the date payment is first received under 
such contract. 
"(v) Any producer of milk who seeks to enter into a contract 
for payments under this paragraph shall provide the Secretary 
with (I) evidence of such producer's marketing history; (II) the 
size and composition of the producer's dairy herd during the 
period the marketing history is determined; and (III) the size 
and composition of the producer's dairy herd at the time the bid 
is submitted, as the Secretary deems necessary and appropriate. 
"(vi) Except as provided in subparagraph (D), no producer who 
commenced marketing of milk in the 15-month period ending 
March 31, 1986, shall be eligible to enter into a contract for 
pavments under this subparagraph. 
(vii) A contract entered into under this paragraph by a 
producer who by reason of death cannot perform or assign such 
contract may be performed or assigned by the estate of such 
producer. 
"(B) The Secretary may establish and carry out a milk diver-
sion or milk production termination program for any of the 
calendar years 1988, 1989, and 1990 as necessary to avoid the 
creation of burdensome excess supplies of milk or milk products. 
"(C) In setting the terms and conditions of any milk diversion 
or milk production termination under this paragraph and of 
each contract made under this subparagraph, the Secretary 
shall take into account any adverse effect of such program or 
contracts on beef, pork, and poultry prodjucers in the United 
States and shall take all feasible steps to Aiinimize such effect. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1365 
"(D) A producer who commenced marketing milk after 
Contracts. 
December 31, 1984, shall be eligible to enter into a contract for 
pajrments under this subparagraph if such producer's entire 
milk production facility and entire dairy herd were transferred 
to the producer by reason of a gift from, or the death of, a 
member or members of the family of the producer. The term 
'member of the family of the producer' means (i) an ancestor of 
the producer, (ii) the spouse of the producer, (iii) a lineal 
descendant of the producer, or the producer's spouse, or a 
parent of the producer, or (iv) the spouse of any such lineal 
descendant."; 
(2) striking out subparagraphs (H), (I), (J), (L), and (O); and 
(3) redesignating subparagraph (K) as subparagraph (E). 
(c) Paragraph (5XB) of section 201(d) of the Agricultural Act of Animals. 
1949 (7 U.S.C. 1446(dX5XB)) is amended by— 
Exports. 
(1) striking out "(i)"; 
(2) striking out ", (ii)" and inserting in lieu thereof "or"; 
(3) striking out ", or (iii)" and all that follows through "para-
graph (3)"; 
(4) redesignating the text thereof as clause (i); 
(5) adding at the end thereof the following: 
"(ii) Each person who buys, from a producer with respect to whom 
Contracts. 
there is in effect at the time of such sale a contract entered into 
under paragraph (3), one or more dairy cattle sold for slaughter or 
export, who knows that such cattle are sold for slaughter or export, 
and who fails to cause the slaughter or export of such cattle within a 
reasonable time after receiving such cattle shall be liable for a civil 
penalty of not more than $5,000 with respect to each of such cattle. 
"(iii) Each person who retains or acquires an interest in dairy 
Contracts. 
cattle or the production of milk in violation of a contract entered 
into under this paragraph shall be liable, in addition to any amount 
due under paragraph (3XAXiv), to a marketing penalty on the 
quantity of milk produced during the period in which such owner-
ship is prohibited under the contract. Such penalty shall be com-
puted at the rate or rates of the support price for milk in effect 
during the period in which the milk production occurred. 
"(iv) Each person who makes a false statement in a bid submitted 
under paragraph (3) as to (I) the marketings of milk for commercial 
use by the producer, or (II) the size or composition of the dairy herd 
that produced such marketings, or (III) the size or composition of the 
dairy herd at the time the bid is submitted shall be subject, in 
addition to any amount due under paragraph (3XAXiv) or clause (iii) 
of this subparagraph, to a civil penalty of $5,000 for each head of 
cattle to which such statement applied. 
"(v) Each person who makes a false statement as to the number of Contracts. 
dairy cattle that was sold for slaughter or export under a contract 
under paragraph (3XA) shall be subject, in addition to any amount 
due under paragraph (3XAXiv) or clause (iii) of this subparagraph, to 
a civil penalty of not more than $5,000 for each head of cattle to 
which such statement applied.". 
(d) Section 201(c) of the Agricultural Act of 1949 (7 U.S.C. 1446(c)) 
is amended by striking out The price" and inserting in lieu thereof 
"Except as provided in subsection (d), the price". 
(e) Section 201(d) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)) 
Ante, p. 1362. 
is amended by adding at the end thereof the following: 
"(7) The Secretary shall carry out this subsection through the 
Commodity Credit Corporation.". 
99 STAT. 1366 
PUBLIC LAW 99-198—DEC. 23, 1985 
Effective date. 
7 u s e 1446 note. 
Prohibition. 
7 u s e 1446 note. 
Prohibition. 
7 u s e 1446 note. 
7 u s e 1446 note. 
Ante, p. 1362. 
State and local 
governments. 
(f) The provisions of this section shall become effective January 1, 
1986. 
ADMINISTRATIVE PROCEDURES 
SEC. 102. Section 553 of title 5, United States Code, shall not apply 
with respect to the implementation of section 201(d) of the Agricul-
tural Act of 1949 (7 U.S.C. 1446(d)) by the Secretary of Agricul-
ture, as amended by section 101, including determinations made 
regarding— 
(1) the level of price support for milk; 
(2) any reduction in the prices paid to producers of milk; and 
(3) the milk production termination program. 
APPLICATION OF SUPPORT PRICE FOR MILK 
SEC. 103. For purposes of supporting the price of milk under 
section 201(d) of the Agricultural Act of 1949, the Secretary of 
Agriculture may not take into consideration any market value of 
whey. 
A V O I D A N C E O F ADVERSE EFFECT O F MILK PRODUCTION TERMINATION 
PROGRAM ON BEEF, PORK, AND LAMB PRODUCERS 
SEC. 104. To minimize the adverse effect of the milk production 
termination program on beef, pork, and lamb producers in the 
United States during the 18-month period for which such program is 
in effect under section 201(d) of the Agricultural Act of 1949 (7 
U.S.C. 1446(d)), in such period— 
(1) the Secretary of Agriculture shall use funds available for 
the purposes of clause (2) of section 32 of the Act entitled "An 
Act to amend the Agricultural Adjustment Act, and for other 
purposes" (7 U.S.C. 612c), approved August 14, 1935, including 
the contingency funds appropriated under such section 32, and 
other funds available to the Secretary under the commodity 
distribution and other nutrition programs of the Department of 
Agriculture, and including funds 
available through the 
Commodity Credit Corporation, to purchase and distribute 
200,000,000 pounds of red meat in addition to those quantities 
normally purchased and distributed by the Secretary. Such 
purchases by the Secretary shall not reduce purchases of any 
other agricultural commodities under section 32; 
(2) the Secretary of Agriculture shall use funds available 
through the Commodity Credit Corporation to purchase 
200,000,000 pounds of red meat, in addition to those quantities 
normally purchased and distributed by the Secretary, and to 
make such meat available— 
(A) to the Secretary of Defense, on a nonreimbursable 
basis, for use in commissaries on military installations 
located outside of the United States; or 
(B) for export under the authority of any law in effect on 
or after the date of the enactment of this Act; 
(3) the Secretary of Defense and other Federal agencies, to the 
maximum extent practicable, shall use increased quantities of 
red meat to meet the food needs of the programs that they 
administer, and State agencies are encouraged to cooperate in 
such effort; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1367 
(4) the Secretary of Agriculture shall encourage the consump-
tion of red meat by the public. 
DOMESTIC CASEIN INDUSTRY 
SEC. 105. (a) The Commodity Credit Corporation shall provide 7 use i446c-2. 
surplus stocks of nonfat dry milk of not less than 1,000,000 pounds 
annually to individuals or entities on a bid basis. 
(b) The Commodity Credit Corporation may accept bids at lower 
than the resale price otherwise required by law, in order to promote 
the strengthening of the domestic casein industry. 
(c) The Commodity Credit Corporation shall take appropriate 
action to ensure that the nonfat dry milk sold by the Coiporation 
under this section is used only for the manufacture of casein. 
STUDY RELATING TO CASEIN 
SEC. 106. The Secretary of Agriculture shall conduct a study to imports. 
determine whether imports of casein tend to interfere with or 
render ineffective the milk price support program of the Depart-
ment of Agriculture. Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall report the results of such 
study to the Committee on Agriculture of the House of Representa-
tives and to the Committee on Agriculture, Nutrition, and Forestry 
of the Senate. 
CIRCUMVENTION OF HISTORICAL DISTRIBUTION OP MILK 
I 
SEC. 107. The Secretary of Agriculture shall— 
7 use 1
4
4
6 note. 
(1) monitor the Commodity Credit Corporation purchases of 
the products of milk during 1986 and 1987; and 
(2) report to Congress, on a quarterly basis, on disruptions of, Report. 
or attempts by handlers or cooperative marketing associations 
to circumvent, the historical distribution of milk among proc-
essors during the milk production termination program. 
APPUCATION OF AMENDMENTS 
SEC. 108. The amendments made by this subtitle shall not affect Prohibition. 
any liability of any person under section 201 of the Agricultural Act 7 use 1
4
4
6 note. 
of 1949 (7 U.S.C. 1446) as in effect before the date of the enactment 
of this Act. 
Subtitle B—Dairy Research and Promotion 
NATIONAL DAIRY RESEARCH ENDOWMENT INSTFTUTE 
SEC. 121. The Dairy Production Stabilization Act of 1983 (7 U.S.C. 
1421 note, et seq.) is amended by adding at the end thereof the 
following: 
"Subtitle C—Dairy Research Program 
"DEFINITIONS 
"SEC. 130. For purposes of this subtitle— 
7 use 4531. 
"(1) the term 'board' means the board of trustees of the 
Institute; 
"(2) the term 'Department' means the Department of Agri-
culture; 
51-194 
O 
-
QL. 3 
Part 2 
99 STAT. 1368 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(3) the term 'dairy products' means manufactured products 
that are derived from the processing of milk, and includes fluid 
milk products; 
"(4) the term 'fluid milk products' means those milk products 
,, 
normally consumed in liquid form as a beverage; 
"(5) the term 'Fund' means the Dairy Research Trust Fund 
established by section 135; 
"(6) the term 'Institute' means the National Dairy Research 
Post, p. 1371; 
Endowment Institute established by section 131; 
'"/"^a- 
"(7) the term 'milk' means any class of cow's milk marketed 
in the United States; 
"(8) the term 'person' means any individual, group of individ-
uals, partnership, corporation, association, cooperative, or any 
other entity; 
"(9) the term 'producer' means any person engaged in the 
production of milk for commercial use; 
"(10) the term 'research' means studies testing the effective-
ness of market development and promotion efforts, studies 
relating to the nutritional value of milk and dairy products, and 
other related efforts to expand demand for milk and dairy 
products; 
"(11) the term 'Secretary' means the Secretary of Agriculture 
unless the context specifies otherwise; and 
"(12) the term 'United States' means the several States and 
the territories and possessions of the United States, except that 
Post, pp. 1369, 
for purposes of sections 131, 133(a), and 136, and paragraph (7) 
^^^^' 
fi 
of this section, such term means the forty-eight contiguous 
States in the continental United States. 
"ESTABUSHMENT OF NATIONAL DAIRY RESEARCH ENDOWMENT 
INSTITUTE 
7 use 4532. 
Research and 
"SEC. 131. The Secretary of Agriculture may establish in the 
development. 
Department of Agriculture a National Dairy Research Endowment 
Institute whose function shall be to aid the dairy industry through 
the implementation of the dairy products research order, which its 
board of trustees shall administer, and the use of monies made 
available to its board of trustees from the Dairy Research Trust 
Fund to implement the order. In implementing the order, the 
Institute shall provide a permanent system for funding scientific 
research activities designed to facilitate the expansion of markets 
for milk and dairy products marketed in the United States. The 
Institute shall be headed by a board of trustees composed of the 
members of the National Dairy Promotion and Research Board. The 
board may appoint from among its members an executive committee 
whose membership shall reflect equally each of the different regions 
in the United States in which milk is produced. The executive 
committee shall have such duties and powers as are delegated to it 
by the board. The members of the board shall serve without com-
pensation. While away from their homes or regular places of busi-
ness in the performance of services for the board, members of the 
board shall be allowed reasonable travel expenses, including a per 
diem allowance in lieu of subsistence, as recommended by the board 
and approved by the Secretary, except that there shall be no 
duplication of payment for such expenses. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1369 
Federal 
Register, 
publication. 
7 u s e 4533. 
7 u s e 4505. 
ISSUANCE OF ORDER 
>i^^ 
' 
"SEC. 132. (a) After receipt of a proposed dairy products research 
order, the Secretary may publish such proposed order in the Federal 
Register and shall give notice and reasonable opportunity for public 
comment on such proposed order. Such proposed order may be 
submitted by an organization certified under section 114 or by any 
interested person affected by the provisions of subtitle B. 
"(b) After the Secretary provides for such publication and a 
reasonable opportunity for a hearing under subsection (a), the Sec-
retary may issue the dairy products research order. The order so Effective date. 
issued shall become effective not later than 90 days after publication 
in the Federal Register of the order. 
"(c) The Secretary may amend, from time to time, the dairy 
products research order issued under subsection (b). 
Research 
and 
development. 
7 u s e 4534. 
REQUIRED TERMS OF ORDER; AGREEMENTS UNDER ORDER; RECORDS 
"SEC. 133. (a) The dairy products research order issued under 
section 132(b) shall— 
"(1) provide for the establishment and administration, by the 
Institute, of appropriate scientific research activities designed 
. 
to facilitate the expansion of markets for deiiry products mar-
[, keted in the United States; 
"(2) specify the powers of the board, including the powers to— 
"(A) receive and evaluate, or on its own initiative develop 
and budget for, research plans or projects designed to— 
"(i) increase the knowledge of human nutritional 
needs and the relationship of milk and dairy products 
to these needs; 
"(ii) improve dairy processing technologies, particu-
larly those appropriate to small- and medium-sized 
family farms; 
"(iii) develop new dairy products; and 
- •
=
^
' 
"(iv) appraise the effect of such research on the 
marketing of dairy products; 
"(B) make recommendations to the Secretary regarding 
such plans and projects; 
"(C) administer the order in accordance with its terms 
n
> 
and provisions; 
"(D) make rules and regulations to effectuate the terms 
Regulations. 
and provisions of the order; 
"(E) receive, investigate, and report to the Secretary 
complaints of violations of the order; 
"(F) recommend to the Secretary amendments to the 
order; 
"(G) enter into agreements, with the approval of the 
Secretary, for the conduct of activities authorized under the 
order and for pajmtient of the cost of such activities with 
any monies in the Fund other than monies appropriated or 
transferred by the Secretary to the Fund; 
"(H) with the approval of the Secretary, establish ad-
visory committees composed of individuals other than mem-
bers of the board, and pay the necessary and reasonable 
expenses and fees of the members of such committees; and 
(I) with the approval of the Secretary, appoint or employ 
such persons, other than members of the board, as the 
Report. 
99 STAT. 1370 
PUBLIC LAW 99-198—DEC. 23, 1985 
board deems necessary and define the duties and determine 
the compensation of each; 
"(3) specify the duties of the board, including the duties to— 
"(A) develop, and submit to the Secretary for approval 
before implementation, any research plan or project to be 
carried out under this subtitle; 
"(B) submit to the Secretary for approval, budgets, on a 
fiscal year basis, of the board's anticipated expenses and 
disbursements in the administration of the order, including 
> projected costs of carrying out dairy products research 
plans and projects; 
Report. 
t 
"(C) prepare and make public, at least annually, a report 
of the board's activities and an accounting for funds re-
ceived and expended by the board; 
Records. 
"(D) maintain such books and records (which shall be 
available to the Secretary for inspection and audit) as the 
1 
Secretary may prescribe; 
Reports. 
"(E) prepare and submit to the Secretary, from time to 
time, such reports as the Secretary may prescribe; and 
"(F) account for the receipt and disbursement of all funds 
entrusted to the board; 
"(4) prohibit any monies received under this subtitle by the 
• board to be used in any manner for the purpose of influencing 
governmental policy or actions, except as provided in paragraph 
(2)(F); and 
Records. 
"(5) require that each person receiving tnilk from producers 
Reports. 
for 
commercial use and any person marketing milk of that 
person's own production directly to consumers maintain and 
make available for inspection by the Secretary such books and 
records as may be required by the order and file with the 
Secretary reports at the time, in the manner, and having the 
content prescribed by the order. 
"(b) Any agreement made under subsection (a)(2)(G) shall provide 
that— 
"(1) the person with whom such agreement is made shall 
develop and submit to the board a research plan or project 
together with a budget that shows estimated costs to be in-
curred to carry out such plan or project; 
"(2) such plan or project shall become effective on the ap-
proval of the Secretary; and 
"(3) such person shall keep accurate records of all of its 
transactions, account for funds received and expended, make 
periodic reports to the board of activities conducted to carry out 
such plan or project, and submit such other reports as the 
Secretary or the board may require. 
"(c)(1) Information, books, and records made available to, and 
reports filed with, the Secretary under subsection (a)(6) shall be kept 
confidential by all officers and employees of the Department, except 
that such information, books, records, and reports as the Secretary 
deems relevant may be disclosed by such officers and employees in 
any suit or administrative proceeding that is brought at the request 
of the Secretary or to which the Secretary or any officer of the 
United States is a party, and that involves the order issued under 
Ante, p. 1369. 
section 132(b). 
Prohibition. 
"(2) Paragraph (1) shall not be construed to prohibit— 
Records. 
"(A) the issuance of general statements, based on such 
Reports. 
information, books, records, and reports, of the number of per-
Effective date. 
Records. 
Reports. 
Records. 
Reports. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1371 
Prohibition. 
Government 
organization and 
employees. 
7 u s e 4535. 
7 use 
4509-4511. 
Ante, p. 1369. 
sons subject to the order or of statistical data collected from 
such persons if such statements do not specifically identify the 
data furnished by any one of such persons; or 
i 
"(B) the publication, at the direction of the Secretary, of the 
name of any person violating the order, together with a state-
ment of the particular provisions of the order violated by the 
person. 
"(3) No information obtained under the authority of this section 
may be made available to any agency, officer, or employee of the 
United States for any purpose other than the implementation of this 
subtitle and any investigatory or enforcement action necessary to 
implement this subtitle. Any person who violates this paragraph 
shall be subject to a fine of not more than $1,000, or to impriso'n-
ment for not more than one year, or both, and, if such person is 
employed by the board or the Department, shall be terminated from 
such employment. 
-
y
f - i "PETITION AND REVIEW; ENFORCEMENT; INVESTIGATIONS 
IIM 
"SEC. 134. The provisions of sections 118, 119, and 120 shall apply, 
except when inconsistent with this subtitle, to the Institute, the 
board, the persons subject to the order issued under section 132(b), 
the jurisdiction of district courts of the United States, and the 
authority of the Secretary under this subtitle in the same manner as 
such sections apply with respect to subtitle B. 
"DAIRY RESEARCH TRUST FUND 
"SEC. 135. (a) There may be established in the Treasury of the 7 use 4536. 
United States a trust fund to be known as the 'Dairy Research Trust 
Fund' if the Institute is established under section 131 and a dairy Ante, p. 1368. 
products research order issued under section 132 is effective during 
such fiscal year. 
"(bXD There is authorized to be appropriated to the Fund or 
transferred from moneys available to the Commodity Credit Cor-
poration for deposit in the Fund, $100,000,000. 
"(2) Moneys deposited in the Fund under paragraph (1) shall be Banks and 
invested by the Secretary of the Treasury in obligations of the banking. 
United States or any agency thereof, in general obligations of any 
State or any political subdivision thereof, in any interest-bearing 
account or certificate of deposit of a bank that is a member of the 
Federal Reserve System, or in obligations fully guaranteed as to 
principal and interest by the United States. Interest, dividends, and 
other pa3mients that accrue from such investments shall be 
deposited in the Fund and also shall be so invested, subject to 
subsection (c). 
"(c) Moneys in the Fund, other than moneys appropriated or 
transferred under paragraph (1) of subsection (b), shall be available 
to the board, in such amounts, and for such activities authorized by 
this subtitle, as the Secretary may approve. 
"TERMINATION OF ORDER, INSTITUTE, AND FUND 
"SEC. 136. (a) The Secretary, whenever the Secretary finds that 7 USC 4537. 
the order issued under this subtitle or any provision of such order 
obstructs or does not tend to facilitate the expansion of markets for 
milk and dairy products marketed in the United States, shall termi-
nate or suspend the operation of the order or such provision. 
99 STAT. 1372 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(b) If the Secretary terminates the order, the Institute shall be 
dissolved 180 days after the termination of the order. 
"(c) If the Institute is dissolved for any reason, the moneys 
remaining in the Fund shall be disposed of as shall be agreed to by 
the board and the Secretary. 
. 
. , . , , - . 
"ADDITIONAL AUTHORITY 
Prohibition. 
"SEC. 137. (a) No provision of this subtitle shall be construed to 
7 use 4538. 
preempt or supersede any other program relating to milk or dairy 
products research organized and operated under the laws of the 
United States or any State. 
"(b) The provisions of this subtitle applicable to the order issued 
Ante, p. 1369. 
under section 132(b) shall be applicable to any amendment to the 
order.". 
<;'• 
Subtitle C—Milk Marketing Orders 
MINIMUM ADJUSTMENTS TO PRICES FOR FLUID MILK UNDER MARKETING 
ORDERS 
SEC. 131. (a) Section 8c(5XA) of the Agricultural Adjustment Act (7 
U.S.C. 608c(5XA)), reenacted with amendments by the Agricultural 
7 use 674. 
Marketing Agreement Act of 1937, is amended by adding at the end 
the following: "Throughout the 2-year period beginning on the 
effective date of this sentence (and subsequent to such 2-year period 
unless modified by amendment to the order involved), the minimum 
aggregate amount of the adjustments, under clauses (1) and (2) of 
the preceding sentence, to prices for milk of the highest use classi-
fication under orders that are in effect under this section on the 
Ante, p. 1354. 
date of the enactment of the Food Security Act of 1985 shall be as 
follows: 
Minimum Aggregate Dollar 
Amount of Such Adjustments 
03' 
Per Hundredweight of Milk 
"Marketing Area Subject to Order 
:. 
Having 3.5 Percent Milkfat 
New England 
$3.24 
^ 
New York-New Jersey 
3.14 ^ 
Middle Atlantic 
3.03 
Georgia 
3.08 
Alabama-West Florida 
3.08 
Upper Florida 
3.58 
Tampa Bay 
3.88 
Southeastern Florida 
4.18 i . 
Michigan Upper Peninsula 
1.35 ' 
Southern Michigan 
1.75 
Eastern Ohio-Western Pennsylvania 
1.95 
Ohio Valley 
2.04 
Indiana 
2.00 
Chicago Regional 
1,40 
Central Illinois 
1.61 ' 
Southern Illinois 
1.92 
Louisville-Lexington-Evansville 
2.11 
Upper Midwest 
1.20 
Eastern South Dakota 
1.50 
Black Hills, South Dakota 
2.05 
Iowa 
1.55 
Nebraska-Western Iowa 
1.75 
T? ^fttj r 
Greater Kansas City 
1.92 
Tennessee Valley 
2.77 
,, -
Nashville, Tennessee 
2.52 
Paducah, Kentucky 
2.39 
Memphis, Tennessee 
2.77 
• • 
Central Arkansas 
2.77 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1373 
Fort Smith, Arkansas 
2.77 
fs 
Southwest Plains 
2.77 
5
^
^ 
Texas Panhandle 
2.49 
Lubbock-Plainview, Texas 
2.49 
Texas 
3.28 
Greater Louisiana 
3.28 
New Orleans-Mississippi 
3.85 
Eastern Colorado 
2.73 
Western Colorado 
2.00 
Southwestern Idaho-Eastern Oregon 
1.50 
Great Basin 
1.90 
Lake Mead 
1.60 
• 
Central Arizona 
2.52 
Rio Grande Valley 
2.35 
Puget Sound-Inland 
1.85 
Oregon-Washington 
1.95 
Effective at the beginning of such two-year period, the minimum 
prices for milk of the highest use classification shall be adjusted for 
the locations at which delivery of such milk is made to such 
handlers.". 
(b) The amendment made by this section shall take effect on the 
first day of the first month beginning more than 120 days after the 
date of the enactment of this Act. 
Effective date. 
7 u s e 608c 
note. 
ADJUSTMENTS FOR SEASONAL PRODUCTION; HEARINGS ON 
' 
AMENDMENTS; DETERMINATION OF MILK PRICES 
SEC. 132. Section 101(b) of the Agriculture and Food Act of 1981 (7 
U.S.C. 608c note) is amended by striking out "1985" and inserting in 
lieu thereof "1990". 
- *r 
. jjs. 
> . 
MARKETWIDE SERVICE PAYMENTS 
J 
SEC. 133. Effective January 1, 1986, section 8c(5) of the Agricul-
tural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments 
by the Agricultural Marketing Agreement Act of 1937, is amended 
by adding at the end thereof the following: 
"(J) Providing for the payment, from the total sums payable by all 
handlers for milk (irrespective of the use classification of such milk) 
and before computing uniform prices under paragraph (A) and 
making adjustments in payments under paragraph (C), to handlers 
that are cooperative marketing associations described in paragraph 
(F) and to handlers with respect to which adjustments in payments 
are made under paragraph (C), for services of marketwide benefit, 
including but not limited to— 
"(i) providing facilities to furnish additional supplies of milk 
needed by handlers and to handle and dispose of milk supplies 
in excess of quantities needed by handlers; 
"(ii) handling on specific days quantities of milk that exceed 
the quantities needed by handlers; and 
' 
"(iii) transporting milk from one location to another for the 
' 
purpose of fulfilling requirements for milk of a higher use 
classification or for providing a market outlet for milk of any 
use classification.". 
Effective date. 
Ante, p. 1372. 
7 u s e 674. 
STATUS 
OF 
PRODUCER HANDLERS 
SEC. 134. The legal status of producer handlers of milk under the 
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, 
7 use 674. 
99 STAT. 1374 
PUBLIC LAW 99-198—DEC. 23, 1985 
shall be the same after the amendments made by this title take 
effect as it was before the effective date of such amendments. 
Subtitle D—National Commission on Dairy Policy 
FINDINGS AND DECLARATION OF POLICY 
7 use 1446 
SEC. 141. (a) Congress finds that— 
-
note. 
(1) the Federal program established to support the price of 
milk marketed by producers in the United States was created to 
provide price and income protection for milk producers as well 
as to assure consumers of an adequate supply of milk and dairy 
products at reasonable prices; 
(2) the milk production industry in the United States is 
composed primarily of small- and medium-sized family farm 
operations; 
(3) consumers in the United States benefit financially from a 
. . . , , , 
milk price support program that prohibits large fluctuations in 
V i 
the price and supply of milk and dairy products; 
(4) consumers in the United States also benefit financiedly 
from the current structure of the domestic milk production 
industry; and 
(5) the Office of Technology Assessment, in its report entitled 
"Technology, Public Policy, and the Changing Structure of 
American Agriculture", found that larger milk production oper-
ations already enjoy a major advantage in the production of 
milk and that, under current Federal policy, the development 
and use of new technologies will permit a continued trend 
toward fewer and larger milk production operations throughout 
the country. 
&
i ! 
(b) It is hereby declared to be the policy of Congress to respond to 
the development of new technologies in the domestic milk produc-
tion industry by reviewing the present milk price support program 
and its alternatives, and by adopting such policies as are needed to 
prevent significant surplus production in the future while ensuring 
that the current small- and medium-sized family farm structure of 
such industry will be preserved for new generations of producers 
and consumers alike. 
'* 
ESTABUSHMENT OF COMMISSION 
> 
7 use 1446 
SEC 142. (a) There is hereby established a National Commission 
note. 
on Daily Policy, which shall study and make recommendations 
concerning the future operation of the Federal program established 
to support the price of milk marketed by producers in the United 
States. 
(b) The Commission shall be composed of eighteen members who 
are engaged in the commercial production of milk in the United 
States, to be appointed by the Secretary of Agriculture. Not fewer 
than twelve members shall be appointed from nominations submit-
ted to the Secretary by the following Members of Congress, after 
consultation with the other Members of Congress who sit on the 
specified committee of the respective House of Congress: 
(1) The Chairman of the Committee on Agriculture of the 
' ; House of Representatives. 
•
« 
(2) The ranking minority member of the Committee on Agri-
y culture of the House of Representatives. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1375 
(3) The Chairman of the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. 
(4) The ranking minority member of the Committee on Agri-
culture, Nutrition, and Forestry of the Senate. 
Each such Member of Congress shall make not fewer than eighteen 
such nominations for appointment to the Commission, but not more 
than two such nominations for any particular vacancy on the 
Commission. The Secretary shall appoint not fewer than three 
individuals from among the nominations submitted by each such 
Member of Congress. Each member of the Commission shall rep-
resent a milk-producing region of the United States. A region may 
be made up of more than one State and may be represented by more 
than one member of the Commission. In making such appointments, 
the Secretary shall take into account, to the extent practicable, the 
geographical distribution of milk production volume throughout the 
United States. In determining geographical representation, whole 
States shall be considered as a unit. 
(c) A vacancy on the Commission shall be filled in the manner in 
which the original appointment was made. 
(d) The Commission shall elect a chairman from among the 
members of the Commission. 
(e) The Commission shall meet at the call of the chairman or a 
majority of the members of the Commission. 
aO 
STUDY AND RECOMMENDATIONS 
SEC. 
study-
143. (a) The National Commission on Dairy Policy shall 
(1) the current Federal price support program for milk; 
(2) alternatives to such program; 
(3) the future functioning of such program; 
(4) new technologies that will become a part of the milk 
production industry before the end of this century; 
(5) the effect that developing technologies will have on sur-
plus milk production; and 
(6) the future structure of the milk production industry. 
In conducting such study, the Commission shall consider, among 
other things, how effective the current Federal price support pro-
gram for milk will be in preventing significant surpluses of dairy 
products in the future, how well such program will respond to the 
challenges to the family farm structure of the milk production 
industry created by developing technologies, and whether or not a 
better response to those challenges could be achieved through modi-
fications or revisions of current Federal policy. 
(b) On the basis of its study, the Commission shall make findings 
and develop recommendations for consideration by the Secretary of 
Agriculture and Congress with respect to the future operation of the 
Federal price support program for milk. 
(c) The Commission shall submit to the Secretary of Agriculture 
and Congress, not later than March 31, 1987, a report containing the 
results of its study and recommendations based on such results. 
Science and 
technology. 
7 u s e 1446 
note. 
Report. 
ADMINISTRATION 
SEC. 144. (a) The heads of executive agencies, the General 
7 use 1446 
Accounting Office, the Office of Technology Assessment, and the 
"o^e. 
Congressional Budget Office, to the extent permitted by law, shall 
99 STAT. 1376 
PUBLIC LAW 99-198—DEC. 23, 1985 
provide to the National Commission on Dairy Policy such informa-
tion as the Commission may require to carry out its duties and 
functions. 
(b) Members of the Commission shall serve without compensation 
for work on the Commission. While away from their homes or 
regular places of business in the performance of duties of the 
Commission, members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
law for persons serving intermittently in the Government service 
under section 5703 of title 5 of the United States Code. 
(c) To the extent there are sufficient funds available to the 
Commission in advance under section [139], and subject to such rules 
as may be adopted by the Commission, the Commission, without 
regard to the provisions of title 5 of the United States Code govern-
ing appointments in the competitive service and without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of such 
5 use 5101 
title relating to the classification and General Schedule pay rates, 
et seq., 5331 
m a y 
^' *
^
^
" 
(1) appoint and fix the compensation of a director; and 
(2) appoint and fix the compensation of such additional 
fc . personnel as the Commission determines necessary to assist it 
to carry out its duties and functions. 
(d) On the request of the Commission, the heads of executive 
agencies, the General Accounting Office, and the Office of Tech-
nology Assessment may furnish the Commission with such person-
' •' 
' "•' nel and support services as the head of the agency, or office, and the 
chairman of the Commission agree are necessary to assist the 
H ,, 
Commission to carry out its duties and functions. The Commission 
shall not be required to pay or reimburse any agency or office for 
personnel and support services provided under this subsection. 
(e) The Commission shall be exempt from sections 7(d), 10(e), 10(f), 
and 14 of the Federal Advisory Committee Act (5 U.S.C. App.). 
(f) The Commission shall be exempt from the requirements of 
sections 4301 through 4305 of title 5 of the United States Code. 
FINANCIAL SUPPORT 
7 use 1446 
SEC. 145. (a) Following the appointment or designation of the 
^°^- 
members of the National Commission on Dairy Policy, notwith-
standing the provisions of section 1342 of title 31 of the United 
States Code, the Secretary of Agriculture may receive on behalf of 
the Commission, from persons, groups, and entities within the 
United States, contributions of money and services to assist the 
Commission to carry out its duties and functions. Any money 
contributed under this section shall be made available to the 
Prohibition. 
Commission to carry out this subtitle. In no event may the Secretary 
accept an aggregate amount of contributions from any one person, 
group, or entity exceeding 10 percent of the budget of the 
Commission. 
(b) If the contributions under subsection (a) are insufficient to 
carry out this subtitle, the Secretary of Agriculture may transfer to 
the Commission, from funds available to the Commodity Credit 
Corporation, an amount not to exceed $1,000,000 to carry out this 
subtitle. 
KXl-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1377 
TERMINATION OF COMMISSION 
SEC. 146. The National Commission on Dairy Policy shall cease to 
exist thirty days following the submission of its report to the 
Secretary of Agriculture and Congress. 
Subtitle E—Miscellaneous 
7 u s e 1446 
note. 
TRANSFER OF DAIRY PRODUCTS TO THE MIUTARY AND VETERANS 
HOSPITALS 
SEC. 151. Subsections (a) and (b) of section 202 of the Agricultural 
Act of 1949 (7 U.S.C. 1446a) are each amended by striking out "1985" 
and inserting in lieu thereof "1990". 
EXTENSION OF THE DAIRY INDEMNITY PROGRAM 
SEC. 152. Section 3 of the Act entitled "An Act to provide indem- 
7 use 450/. 
nity payments to dairy farmers" (7 U.S.C. 4501), approved August 13, 
1968, is amended by striking out "1985" and inserting in lieu thereof 
"1990". 
DAIRY EXPORT INCENTIVE PROGRAM 
SEC. 153. (a) During the period beginning 60 days after the date of 
enactment of this Act and ending on September 30, 1989, the 
Commodity Credit Corporation shall establish and operate an export 
incentive program as described in this section for dairy products 
under section 5 of the Commodity Credit Corporation Charter Act. 
(b) The program established under subsection (a) shall provide for 
the Corporation to make payments, on a bid basis, to an entity that 
sells for export United States dairy products. The Secretary shall 
have discretion to accept or reject bids under such criteria as the 
Secretary deems appropriate. 
(c) The program shaJl be operated under such rules and regula-
tions issued by the Secretary as the Secretary deems necessary to 
ensure, among other things, that— 
(1) payments may be made under the program only on the 
. 
quantity of dairy products sold by an entity for export in any 
year that is in addition to, and not in place of, any export sales 
of dairy products that the entity would otherwise make in the 
absence of the program; and 
(2) to the extent practicable, dairy products sold for export 
under the program will not displace commercial export sales of 
United States dairy products by other exporters. 
(dXD The regulations issued by the Secretary may provide for 
Regulations. 
payments under the program to be made in cash or in commodities 
of equal value that are available in Commodity Credit Corporation 
stock. 
(2) If pajmients in commodities are authorized, such payments 
may be made through the issuance of certificates redeemable in 
commodities. 
(3) If payments are authorized to be made in dairy products, the 
Regulations. 
regulations issued by the Secretary shall ensure that such dairy 
products, or an equal amount of other dairy products, will be sold for 
export by the entity and that any such export sales by the entity 
will be in addition to, and not in place of, export sales of dairy 
products that the entity would otherwise make under program or in 
the absence of the program, and, to the extent practicable, will not 
15 use 
713a-14. 
98 Stat. 3409. 
15 u s e 714c. 
Regulations. 
99 STAT. 1378 
PUBLIC LAW 99-198—DEC. 23, 1985 
Federal 
Register, 
publication. 
displace commercial export sales of United States dairy products by 
other exporters. 
(eXD The pajnnents made under the program shall be made at a 
rate or rates established or approved by the Secretary, taking into 
consideration, among other things the type of product to be ex-
ported, the domestic price of dairy products, and world price of the 
dairy products. 
(2) Any such rate established or approved by the Secretary shall 
be published in the Federal Register or publicly announced through 
other appropriate means, and shall be at a level or levels as will 
encourage the exportation of United States dairy products by 
entities. 
TITLE II—WOOL AND MOHAIR 
^ 
EXTENSION 
OF 
PRICE 
SUPPORT 
PROGRAM 
SEC. 201. Section 703 of the National Wool Act of 1954 (7 U.S.C. 
1782) is amended b y -
ID striking out "1985" in subsection (a) and inserting in lieu 
thereof "1990"; and 
(2) striking out "1985" in subsection (b) and inserting in lieu 
thereof "1990". 
7 use 
1332-1338. 
FOREIGN PROMOTION PROGRAMS 
SEC. 202. The second sentence of section 708 of the National Wool 
Act of 1954 (7 U.S.C. 1787) is amended by striking out "mohair or 
goats" and inserting in lieu thereof "wool, mohair, sheep, or goats". 
TITLE III—WHEAT 
WHEAT POLL 
SEC. 301. (a) Not later than July 1, 1986, the Secretary of Agri-
culture shall conduct a poll, by mail ballot, of eligible producers of 
wheat to determine whether such producers favor the imposition of 
mandatory limits on the production of wheat that will result in 
wheat prices that are not lower than 125 percent of the cost of 
production (excluding land and residual returns to management) as 
determined by the Secretary. 
(b) The Secretary shall conduct such poll in such a manner as will 
reflect the types and sizes of farm operations (including livestock), 
distinctions among types and classes of wheat produced, and such 
demographic and other information as the Secretary determines is 
necessary to reflect State, regional, and national responses. 
(c) To be eligible to vote in such poll, a producer must have 
produced a crop of wheat during at least one of the 1981 through 
1985 crop years for wheat on a farm with a wheat crop acreage base 
of at least 40 acres. 
MARKETING QUOTAS 
; 
SEC. 302. Effective only for the 1987 through 1990 crops of wheat, 
section 332 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1332) is amended to read as follows: 
"PROCLAMATION OF MARKETING QUOTAS 
, - - -
"SEC. 332. (a) As used in sections 332 through 338: 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1379 
"(1) The term 'base period' means the 1981 through 1985 crop 
years for wheat. 
"(2) The term 'marketing quota period' means the 1987 
through 1990 marketing years for wheat. 
"(bX 1) The Secretary may— 
"(A) proclaim national marketing quotas for wheat for each 
marketing year of the marketing quota period not later than 
June 15, 1986; and 
"(B) conduct, by mail ballot, a marketing quota referendum 
not later than August 1, 1986. 
"(2) The quantity of the national marketing quota for wheat for 
any marketing year shall be a quantity of wheat that the Secretary 
estimates is required to meet anticipated needs during such market-
ing year, taking into consideration domestic requirements, export 
demand, emergency food aid needs, and adequate carryover stocks. 
"(c) If, after the proclamation of a national marketing quota for 
wheat for any marketing year, the Secretary determines that the 
national marketing quota should be terminated or adjusted to meet 
a national emergency or a material change in the demand for 
wheat, the Secretary shall adjust or terminate the national market-
ing quota.". 
MARKETING QUOTA APPORTIONMENT FACTOR 
SEC. 303. Effective only for the 1987 through 1990 crops of wheat, 
section 333 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1333) is amended to read as follows: 
"MARKETING QUOTA APPORTIONMENT FACTOR 
"SEC. 333. (a) The Secretary shall establish a marketing quota 
apportionment factor for each crop of wheat for which a national 
marketing quota is proclaimed under section 332. 
Ante, p. 1378. 
"(b) The apportionment factor shall be determined by dividing— 
"(1) the national marketing quota for such crop of wheat; by 
"(2) the average number of bushels of wheat the Secretary 
determines was produced in the United States during the base 
period, adjusted to reflect the quantity of wheat that would 
have been produced during such years except for— 
"(A) drought, flood, or other natural disaster, or other 
conditions beyond the control of producers; and 
"(B) participation in any acreage reduction, set-aside, or 
diversion programs for wheat during such crop years, 
as determined by the Secretary.". 
FARM MARKETING QUOTAS 
SEC. 304. Effective only for the 1987 through 1990 crops of wheat, 
section 334 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1334) is amended to read as follows: 
"FARM MARKETING QUOTAS 
"SEC. 334. (a) For each crop of wheat for which a national market-
ing quota has been proclaimed under section 332, the Secretary shall 
establish a farm marketing quota for each farm on which wheat was 
planted for harvest, or considered planted for harvest, during the 
base period. 
99 STAT. 1380 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(b) The farm marketing quota shall be equal to the product 
obtained by multiplying— 
"(1) the average number of acres of wheat planted for harvest, 
or considered planted for harvest, on the farm during the base 
period; by 
"(2) the average yield of wheat planted for harvest, or consid-
ered planted for harvest, on the farm during such base period, 
as determined by the Secretary on such basis as the Secretary 
determines will provide a fair and equitable yield; by 
"(3) the marketing quota apportionment factor. 
"(c) For purposes of this section, wheat shall be considered to have 
been planted for harvest on the farm in any crop year to the extent 
that the Secretary determines that wheat was not planted for 
harvest on the farm because— 
"(1) of drought, flood, or other natural disaster, or other 
condition beyond the control of the producer, as determined by 
the Secretary; or 
"(2) the producer on the farm participated in any acreage 
reduction, set-aside, or diversion program for wheat during such 
crop years. 
"(d) Farm marketing quotas shall be established by the Secretary 
under this section by June 1 of the calendar year preceding each 
marketing year for which a national marketing quota has been 
Ante, p. 1378. 
proclaimed under section 332.". 
MARKETING PENALTIES 
SEC. 305. Effective only for the 1987 through 1990 crops of wheat, 
section 335 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1335) is amended to read as follows: 
"MARKETING PENALTIES 
"SEC. 335. (a) The marketing of wheat produced on a farm in 
excess of a farm marketing quota shall be subject to a penalty at a 
rate per bushel equal to 75 percent of the national average market 
price for wheat during the immediately preceding marketing year. 
"Ot)) The penalty provided for in subsection (a) shall be paid— 
"(1) in the case of wheat marketed by sale to a person within 
the United States, by the person who acquired the wheat from 
* 
the producer, except that an amount equivalent to the penalty 
may be deducted by the buyer from the price paid to the 
producer; 
"(2) in the case of wheat marketed through a warehouseman 
or agent, by the warehouseman or agent, who may deduct an 
amount equivalent to the penalty from the price paid to the 
producer; or 
"(3) in the case of wheat marketed directly to any person 
outside the United States, by the producer. 
Regulations. 
"(c) If any producer falsely identifies, or fails to certify, the 
acreage planted to wheat for harvest or fails to account for the 
disposition of any wheat produced on such planted acreage in 
accordance with regulations issued by the Secretary— 
"(1) a quantity of wheat equal to the product obtained by 
multiplying— 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1381 
"(A) the farm program payment yield, as determined by 
C 
the Secretary under title V of the Agricultural Act of 1949; 7 use 1461. 
by 
"(B) the planted acreage, 
shall be deemed to have been marketed in excess of the farm 
marketing quota; and 
"(2) the penalty provided for in subsection (a) on such quan-
tity of wheat shall be paid by the producer. 
"(d) Each producer having an interest in the crop of wheat on any 
farm for which a penalty is determined shall be jointly and severally 
liable for the entire amount of the penalty. 
"(e) Wheat subject to a farm marketing quota may be carried over 
by the producer from one marketing year to the succeeding market-
ing year, and may be marketed without incurring a penalty under 
this section in the succeeding marketing year, to the extent that— 
"(1) the total quantity of wheat available for marketing from 
the farm in the marketing year from which the wheat is carried 
over does not exceed the farm marketing quota; or 
"(2) the total quantity of wheat available for marketing in the 
succeeding marketing year (including any quantity of wheat 
carried over) does not exceed the farm marketing quota for the 
succeeding marketing year. 
"(0 Wheat produced in a calendar year in which marketing quotas 
are in effect for the marketing year beginning therein shall be 
subject to such quotas even though it is marketed prior to the date 
on which such marketing year begins. 
"(gXD The Secretary, shall require collection of the penalty pro- Regulations. 
vided for in this section on a proportion of each unit of wheat 
marketed from the farm equal to the proportion that the wheat 
available for marketing from the farm in excess of the farm market-
ing quota is of the total quantity of wheat available for marketing 
from the farm, if satisfactory proof is not furnished to the Secretary 
as to the disposition to be made of the excess wheat, in accordance 
with regulations issued by the Secretary, prior to the marketing of 
any wheat from the farm. 
"(2) All funds collected under this section during a marketing year 
Regulations. 
shall be deposited in a special account established in the Treasury of 
the United States until the end of the next succeeding marketing 
year. On certification of the Secretary, there shall be paid out of 
such special account to a person designated by the Secretary the 
amount by which the penalty collected exceeds that amount of 
penalty due on wheat marketed in excess of the farm marketing 
quota for a farm. Such special account shall be administered by the 
Secretary. The basis for, the amount of, and the person entitled to 
receive a pajmient from such account, when determined in accord-
ance with regulations prescribed by the Secretary, shall be final and 
conclusive. 
"(h) Until the amount of the penalty provided by this section is 
paid, a lien on— 
"(1) the wheat with respect to which such penalty is incurred; 
and 
"(2) any subsequent wheat subject to marketing quotas in 
which the person liable for the payment of such penalty has an 
interest, 
shall be in effect in favor of the United States for the amount of the 
penalty. 
99 STAT. 1382 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(i) A person liable for the payment or collection of a penalty on 
• 
any quantity of wheat shall be liable also for interest thereon from 
the date the penalty becomes due until the date of payment of such 
penalty at a rate per annum equal to the rate of interest that was 
charged the Commodity Credit Corporation by the Treasurer of the 
United States on the date such penalty became due. 
Effective date. 
"(jXD If marketing quotas for wheat are not in effect for any 
marketing year, all previous marketing quotas applicable to wheat 
shall be terminated, effective as of the first day of such marketing 
year. 
Prohibition. 
"(2) Such termination shall not— 
"(A) abate any penalty previously incurred by a producer; or 
"(B) relieve any buyer of the duty to remit penalties pre-
viously collected.". 
REFERENDUM 
SEC. 306. Effective only for the 1987 through 1990 crops of wheat, 
section 336 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
Ante, p. 119. 
1336) is amended to read as follows: 
"REFERENDUM 
"SEC. 336. (a) If a national marketing quota for wheat for the 
marketing quota period is proclaimed, not later than August 1,1986, 
the Secretary shall conduct, by mail ballot, a referendum of eligible 
producers to determine whether they favor or oppose marketing 
quotas for such period. 
"(b) Any producer who produced wheat on a farm during at least 
one of the crop years of the base period shall be eligible to vote in 
the referendum. 
"(c) Not later than 30 days after the conduct of such referendum, 
the Secretary shall proclaim the results of such referendum. 
"(d) If the Secretary determines that 60 percent or more of the 
producers voting in the referendum approve marketing quotas, the 
Secretary shall proclaim that marketing quotas will be in effect for 
the marketing quota period.''. 
TRANSFER OF FARM MARKETING QUOTAS 
SEC. 307. Effective only for the 1987 through 1990 crops of wheat, 
section 338 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1338) is amended to read as follows: 
TRANSFER OF FARM MARKETING QUOTAS 
Prohibition. 
"SEC. 338. (a) Except as provided in subsection (b), farm marketing 
quotas shall not be transferable. 
Regulations. 
"(b) In accordance with regulations prescribed by the Secretary 
for such purpose— 
"(1) the farm marketing quota for a farm for any marketing 
year, or any portion thereof, may be voluntarily surrendered to 
the Secretary by the producer; and 
"(2) the Secretary may reallocate any farm marketing quotas 
so surrendered to other farms having farm marketing quotas on 
such basis as the Secretary may determine.". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1383 
LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE UMITA-
TION AND SET-ASIDE PROGRAMS, AND LAND DIVERSION FOR THE 1986 
THROUGH 1990 CROPS OF WHEAT 
SEC. 308. Effective only for the 1986 through 1990 crops of wheat, 
the Agricultural Act of 1949 is amended by inserting after section 
107C (7 U.S.C. 1445b-2) the following new section: 
"SEC. 107D. Notwithstanding any other provision of law: 
7 use i445b-3. 
"(aXD Except as provided in paragraphs (2) through (4), the 
Secretary shall make available to producers loans and purchases for 
each of the 1986 through 1990 crops of wheat at such level as the 
Secretary determines will maintain the competitive relationship of 
wheat to other grains in domestic and export markets after taking 
into consideration the cost of producing wheat, supply and demand 
conditions, and world prices for wheat. 
"(2) For any crop of wheat for which marketing quotas are in 
effect, the loan and purchase level determined under paragraph (1) 
shall not be less than the higher of^ 
"(A) 75 percent of the national average cost of production per 
bushel of wheat, as determined by the Secretary, taking into 
consideration variable expenses, general farm overhead, taxes, 
insurance, interest, and capital replacement costs (but exclud-
ing residual returns for management and risk); or 
"(B) $3.55 per bushel. 
"(3) Except as provided in paragraph (4), for any crop of wheat for 
which marketing quotas are not in effect, the loan and purchase 
level determined under paragraph (1) shall— 
"(A) in the case of the 1986 crop of wheat, not be less than 
$3.00 per bushel; and 
"(B) in the case of each of the 1987 through 1990 crops of 
wheat, not be less than 75 percent, nor more than 85 percent, of 
the simple average price received by producers of wheat, as 
determined by the Secretary, during the marketing years for 
the immediately preceding 5 crops of wheat, excluding the year 
in which the average price was the highest and the year in 
which the average price was the lowest in such period, except 
that the loan and purchase level for a crop determined under 
this clause may not be reduced by more than 5 percent from the 
level determined for the preceding crop. 
"(4XA) Except as provided in subparagraph (B), for any crop of 
wheat for which marketing quotas are not in effect, if the Secretary 
determines that the average price received by producers for wheat 
in the previous marketing year was not more than 110 percent of 
the loan and purchase level for wheat for such marketing year or 
determines that such action is necessary to maintain a competitive 
market position for wheat, the Secretary— 
"(i) in the case of the 1986 crop of wheat, shall reduce the loan 
and purchase level for wheat for the marketing year by the 
amount the Secretary determines necessary to maintain domes-
tic and export markets for grain but not less than 10 percent of 
the loan and purchase level for such crop; and 
"(ii) in the case of each of the 1987 through 1990 crops of 
wheat, may reduce the loan and purchase level for wheat for 
the marketing year by the amount the Secretary determines 
necessary to maintain domestic and export markets for grain. 
"(B) The loan and purchase level may not be reduced under 
Prohibition. 
subparagraph (A) by more than 20 percent in any year. 
99 STAT. 1384 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
"(C) Any reduction in the loan and purchase level for wheat under 
this paragraph shall not be considered in determining the loan and 
purchase level for wheat for subsequent years. 
"(5XA) The Secretary may permit a producer to repay a loan made 
under paragraph (1) for a crop at a level that is the lesser of^ 
"(i) the loan level determined for such crop; or 
.. 
"(ii) the higher of— 
- 
• 
"(I) 70 percent of such level; 
'if 
"(II) if the loan level for a crop was reduced under 
•";,' 
paragraph (4), 70 percent of the loan level that would have 
~ ' 
been in effect but for the reduction under paragraph (4); or 
"(III) the prevailing world market price for wheat, as 
determined by the Secretary. 
Regulations. 
"(B) If the Secretary permits a producer to repay a loan in 
accordance with subparagraph (A), the Secretary shall prescribe by 
regulation— 
"(i) a formula to define the prevailing world market price for 
wheat; and 
"(ii) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for wheat. 
"(6) For purposes of this section, the simple average price received 
by producers for the immediately preceding marketing year shall be 
based on the latest information available to the Secretary at the 
time of the determination. 
"(bXD The Secretary may, for each of the 1986 through 1990 crops 
of wheat, make payments aveiilable to producers who, although 
eligible to obtain a loan or purchase agreement under subsection (a), 
agree to forgo obtaining such loan or agreement in return for such 
payments. 
"(2) A pajnment under this subsection shall be computed by 
multiplying— 
, 
"(A) the loan payment rate; by 
"(B) the quantity of wheat the producer is eligible to place 
under loan. 
Prohibition. 
"(3) For purposes of this subsection, the quantity of wheat eligible 
to be placed under loan may not exceed the product obtained by 
multiplying— 
"(A) the individual farm program acreage for the crop; by 
"(B) the farm program payment jrield established for the 
farm. 
"(4) For purposes of this subsection, the loan pajnnent rate shall 
be the amount by which— 
"(A) the loan level determined for such crop under subsection 
(a); exceeds 
"(B) the level at which a loan may be repaid under sub-
section (a). 
"(cXlXA) The Secretary shall make available to producers pay-
ments for each of the 1986 through 1990 crops of wheat in an 
amount computed by multiplying— 
"(i) the payment rate; by 
"(ii) the individual farm program acreage for the crop; by 
"(iii) the farm program payment yield for the crop for the 
farm. 
Prohibition. 
"(B) Payments for any such crop for which marketing quotas are 
in effect shall not exceed an amount equal to the pajmient rate 
multiplied by the farm marketing quota. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1385 
"(CXi) If an acreage limitation program under subsection (fX2) is 
in effect for a crop of wheat and the producers on a farm devote a 
portion of the permitted wheat acreage of the farm (as determined 
in accordance with subsection (fK2XA)) equal to more than 8 percent 
of the permitted wheat acreage of the farm for the crop to conserva-
tion uses or nonprogram crops— 
"(I) such portion of the permitted wheat acreage of the farm 
Conservation. 
in excess of 8 percent of such acreage devoted to conservation 
uses or nonprogram crops shall be considered to be planted to 
wheat for the purpose of determining the individual farm pro-
gram acreage in accordance with subsection (f)(2XE) and for the 
purpose of determining the acreage on the farm required to be 
devoted to conservation uses in accordance with subsection 
(fK2XD); and 
"(II) the producers shall be eligible for payments under this 
paragraph on such acreage, subject to the compliance of the 
producers with clause (ii). 
"(ii) To be eligible for payments under clause (i), except as pro-
vided in clauses (iii) and (vii), the producers on the farm must 
actually plant wheat for harvest on at least 50 percent of the 
permitted wheat acreage of the farm. 
"(iii) If a State or local agency has imposed in an area of a State or 
county a quarantine on the planting of wheat for harvest on farms 
in such area, the State committee established under section 8(b) of 
the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) may recommend to the Secretary that payments be made 
under this paragraph, without regard to the requirement imposed 
under clause (ii), to producers in such area who were required to 
forgo the planting of wheat for harvest on acreage to alleviate or 
eliminate the condition requiring such quarantine. If the Secretary 
determines that such condition exists, the Secretary may make 
payments under this paragraph to such producers. To be eligible for 
payments under this clause, such producers may not plant feed 
grains, cotton, rice, or soybeans on such acreage. 
"(iv) The wheat crop acreage base and wheat farm program 
Prohibition, 
payment yield of the farm shall not be reduced due to the fact that 
such portion of the permitted acreage of the farm was devoted to 
conserving uses or nonprogram crops. 
"(v) Other than as provided in clauses (i) through (iv), payments 
Prohibition. 
may not be made under this paragraph for any crop on a greater 
acreage than the acreage actually planted to wheat. 
"(vi) Any acreage considered to be planted to wheat in accordance Prohibition, 
with clause (i) may not also be designated as conservation use 
acreage for the purpose of fulfilling any provisions under any 
acreage limitation, set-aside program, or land diversion program 
requiring that the producers devote a specified acreage to conserva-
tion uses. 
"(vii) This subparagraph shall not apply if the established price 
for wheat is determined pursuant to subparagraph (HXi). 
"(DXi) Except as provided in clause (ii), the payment rate for 
wheat shall be the amount by which the established price for the 
crop of wheat exceeds the higher of— 
"(I) the national weighted average market price received by 
producers during the first 5 months of the marketing year for 
such crop, as determined by the Secretary; or 
99 STAT. 1386 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(ID the loan level determined for such crop, prior to any 
adjustment made under subsection (a)(4) for the marketing year 
for such crop of wheat. 
"(ii) If the national weighted average market price received by 
producers during the first 5 months of the marketing year for a 
crop, as determined by the Secretary, exceeds $2.55 per bushel for 
the 1986 crop, $2.65 per bushel for the 1987 crop, or $2.82 per bushel 
for the 1988 crop, at the option of the Secretary, the payment rate 
for such crop of wheat shall be the amount by which the established 
price for the crop of wheat exceeds the higher of— 
"(I) $2.55 per bushel for the 1986 crop, $2.65 per bushel for the 
1987 crop, and $2.82 per bushel for the 1988 crop; or 
"(II) the loan level determined for such crop, prior to any 
adjustment made under subsection (a)(4) for the marketing year 
for such crop of wheat. 
"(E)(i) Notwithstanding the foregoing provisions of this section, if 
the Secretary adjusts the level of loans and purchases for wheat 
under subsection (a)(4), the Secretary shall provide emergency com-
pensation by increasing the established price payments for wheat by 
such amount as the Secretary determines necessary to provide the 
same total return to producers as if the adjustment in the level of 
loans and purchases had not been made, taking into consideration 
any payments made as the result of subparagraph (D)(ii). 
"(ii) In determining the payment rate, per bushel, for established 
price payments for a crop of wheat under this subparagraph, the 
Secretary shall use the national weighted average market price, per 
bushel of wheat, received by producers during the marketing year 
for such crop, as determined by the Secretary. 
Prohibition. 
"(F) For any crop of wheat for which marketing quotas are in 
effect, the established price shall not be less than the higher of^ 
"(i) the national average cost of production per bushel of 
wheat, as determined by the Secretary under subsection (aX2); 
or 
"(ii) $4.65 per bushel. 
~ 
- fv .. 
"(G) For any crop of wheat for which marketing quotas are not in 
" 
•' 
effect, the established price for wheat shall not be less than $4.38 
per bushel for each of the 1986 and 1987 crops, $4.29 per bushel for 
the 1988 crop, $4.16 per bushel for the 1989 crop, and $4.00 per 
bushel for the 1990 crop. 
"(H) For any crop of wheat for which marketing quotas are not in 
effect, at the option of the Secretary and subject to subparagraph 
(G), the established price for wheat applicable to producers may be 
' 
determined on the basis o
f
— 
"(i) the percentage by which the producers reduce the acreage 
planted to wheat on the farm for harvest from the crop acreage 
base for the farm in accordance with an acreage limitation 
program described in subsection (f)(2); or 
"(ii) a graduated scale of production under which the amount 
of the payments made to the producers would vary for specified 
quantities of wheat produced by the producers and such pay-
ments would be targeted to commercial family farmers who 
have annual gross sales in excess of $20,000. 
"(I) The total quantity on which payments would otherwise be 
payable to a producer on a farm for any crop under this paragraph 
shall be reduced by the quantity on which any disaster payment is 
made to the producer for the crop under paragraph (2). 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1387 
"(J) The Secretary may pay not more than 5 percent of the total Prohibition. 
amount of a payment made under this paragraph in the form of 
wheat. The use of wheat in making payments to producers shall be 
subject to a determination by the Secretary of the effect that such 
in-kind payments will have on market prices for any commodity. 
The Secretary shall report such determination to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. 
"(K) As used in this paragraph, the term 'nonprogram crop' 
means any agricultural commodity other than wheat, feed grains, 
upland cotton, extra long staple cotton, rice, or soybeans. 
"(2)(A)(i) Except as provided in subparagraph (C), if the Secretary 
determines that the producers on a farm are prevented from plant-
ing any portion of the acreage intended for wheat to wheat or other 
nonconserving crops because of drought, flood, or other natural 
disaster, or other condition beyond the control of the producers, the 
Secretary shall make a prevented planting disaster payment to the 
producers in an amount equal to the product obtained by 
multiplying— 
"(I) the number of acres so affected but not to exceed the 
acreage planted to wheat for harvest (including any acreage 
that the producers were prevented from planting to wheat or 
other nonconserving crops in lieu of wheat because of drought, 
flood, or other natural disaster, or other condition beyond the 
control of the producers) in the immediately preceding year; by 
"(11) 75 percent of the farm program payment yield estal> 
lished by the Secretary; by 
''' 
"(III) a payment rate equal to 33 V
a percent of the average of 
the established prices for the crop. 
"(ii) Payments made by the Secretary under this subparagraph 
may be made in the form of cash or from stocks of wheat held by the 
Commodity Credit Corporation. 
"(B) Except as provided in subparagraph (C), if the Secretary 
determines that because of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the total 
quantity of wheat that the producers are able to harvest on any 
farm is less than the result of multiplying 60 percent of the farm 
program payment yield established by the Secretary for such crop 
by the acreage planted for harvest for such crop, the Secretary shall 
make a reduced yield disaster payment to the producers at a rate 
equal to 50 percent of the established price for the crop for the 
deficiency in production below 60 percent for the crop. 
"(C) Producers on a farm shall not be eligible for— 
Prohibition, 
"(i) prevented planting disaster payments under subpara-
graph (A), if prevented planting crop insurance is available to 
the producers under the Federal Crop Insurance Act (7 U.S.C. 
* 1501 et seq.) with respect to the wheat acreage of the producers; 
or 
* 
"(ii) reduced yield disaster payments under subparagraph (B), 
if reduced yield crop insurance is available to the producers 
under such Act with respect to the wheat acreage of the 
producers. 
"(DXi) Notwithstanding subparagraph (C), the Secretary may 
make a disaster payment to producers on a farm under this para-
graph if the Secretary determines that— 
"(I) as the result of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the 
99 STAT. 1388 
PUBLIC LAW 99-198—DEC. 23, 1985 
. ; , 
, 
producers on a farm have suffered substantial losses of produc-
tion either from being prevented from planting wheat or other 
nonconserving crops or from reduced yields; 
f 
"(II) such losses have created an economic emergency for the 
producers; 
"(III) crop insurance indemnity payments under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) and other forms of 
assistance made available by the Federal Government to such 
producers for such losses are insufficient to alleviate such eco-
nomic emergency; and 
"(IV) additional assistance must be made available to such 
producers to alleviate such economic emergency, 
"(ii) The Secretary may make such adjustments in the amount of 
payments made available under this subparagraph with respect to 
an individual farm so as to assure the equitable allotment of such 
pa3mients among producers, taking into account other forms of 
Federal disaster assistance provided to the producers for the crop 
involved. 
"(dXlXA) For any crop of wheat for which marketing quotas are 
not in effect and an acreage limitation program under subsection (f) 
is not in effect, the Secretary shall proclaim a national program 
acreage. The proclamation shall be made not later than June 1 of 
each calendar year for the crop harvested in the next succeeding 
calendar year, except that in the case of the 1986 crop, the proclama-
tion shall be made as soon as practicable after the date of enactment 
of the Food Security Act of 1985. 
"(B) The Secretary may revise the national program acreage first 
proclaimed for any crop year for the purpose of determining the 
allocation factor under paragraph (2) if the Secretary determines it 
necessary based on the latest information. The Secretary shall 
proclaim such revised national program acreage as soon as it is 
made. 
"(C) The national program acreage for wheat shall be the number 
of harvested acres the Secretary determines (on the basis of the 
weighted national average of the farm program payment yields for 
the crop for which the determination is made) will produce the 
quantity (less imports) that the Secretary estimates will be utilized 
domestically and for export during the marketing year for such 
crop. 
"(D) If the Secretary determines that carryover stocks of wheat 
are excessive or an increase in stocks is needed to assure desirable 
carryover, the Secretary may adjust the national program acreage 
-ii ii 
^y *^® quantity the Secretary determines will accomplish the de-
sired increase or decrease in carryover stocks. 
"(2) The Secretary shall determine a program allocation factor for 
each crop of wheat for which marketing quotas are not in effect. The 
allocation factor for wheat shall be determined by dividing the 
national program acreage for the crop by the number of acres that 
the Secretary estimates will be harvested for such crop, except that 
in no event shall the allocation factor for any crop of wheat be more 
than 100 percent nor less than 80 percent. 
"(3XAXi) Except as provided in subsection (fK2), the individual 
farm program acreage for each crop of wheat for which marketing 
quotas are not in effect shall be determined by multipljdng the 
allocation factor by the acreage of wheat planted for harvest on the 
farms for which individual farm program acreages are required to 
be determined. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1389 
"(ii) The individual farm program acreage shall not be further 
Prohibition. 
reduced by application of the allocation factor if the producers 
reduce the acreage of wheat planted for harvest on the farm from 
the crop acreage base established for the farm under title V by at 
7 use 1461. 
least the percentage recommended by the Secretary in the 
proclamation of the national program acreage. 
"(iii) The Secretary shall provide fair and equitable treatment for 
producers on farms on which the acreage of wheat planted for 
harvest is less than the crop acreage base established for the farm 
under title V, but for which the reduction is insufficient to exempt 
the farm from the application of the allocation factor. 
"(iv) In establishing the allocation factor for wheat, the Secretary 
may make such adjustment as the Secretary deems necessary to 
take into account the extent of exemption of farms under the 
foregoing provisions of this paragraph. 
"(B) For any crop of wheat for which marketing quotas are in 
effect, the individual farm program acreage shall be the acreage on 
the farm that the Secretary determines is sufficient to produce the 
quantity of wheat equal to the farm marketing quota established for 
the farm under section 334 of the Agricultural Adjustment Act of 
1938. 
Ante, p. 1379. 
"(e) The farm program payment yields for farms for each crop of 
wheat shall be determined under title V. 
"(f)(l)(A)(i) Notwithstanding any other provision of this Act, 
except as provided in subparagraphs (B) through (E), if the Secretary 
determines that the total supply of wheat, in the absence of an 
acreage limitation or set-aside program, will be excessive taking into 
account the need for an adequate carryover to maintain reasonable 
and stable supplies and prices and to meet a national emergency, 
the Secretary may provide for any crop of wheat for which market-
ing quotas are not in effect either an acreage limitation program as 
described in paragraph (2) or a set-aside program as described in 
paragraph (3). 
"(ii) In making a determination under clause (i), the Secretary 
shall take into consideration the number of acres placed in the 
conservation acreage reserve established under section 1231 of the 
Food Security Act of 1985. 
Post, p. 1509. 
"(iii) If the Secretary elects to put either of such programs into 
effect for any crop year, the Secretary shall announce such program 
not later than June 1 prior to the calendar year in which the crop is 
harvested, except that in the case of the 1986 crop, the Secretary 
shall announce such program as soon as practicable after the date of 
enactment of the Food Security Act of 1985. 
"(iv) Not later than July 31 of the year previous to the year in 
which the crop is harvested, the Secretary may make adjustments in 
the program announced under clause (iii) if the Secretary deter-
mines that there has been a significant change in the total supply of 
wheat since the program was first announced. 
"(B) In the case of the 1986 crop of wheat, if the Secretary 
estimates, as soon as practicable after the date of enactment of the 
Food Security Act of 1985, that the quantity of wheat on hand in the 
United States on the first day of the marketing year for that crop 
(not including any quantity of wheat of that crop) will be— 
"(i) more than 1,000,000,000 bushels, the Secretary shall pro-
' 
vide for— 
.(s. 
"(I) an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to wheat for 
99 STAT. 1390 
PUBLIC LAW 99-198—DEC. 23, 1985 
harvest on a farm would be limited to the wheat crop 
acreage base for the farm for the crop reduced by not less 
• than 15 percent nor more than 22 y2 percent; and 
' 
.
^
" 
"(11) a land diversion program (as described in paragraph 
*•'' (5XA)) with in-kind payments under which the acreage 
planted to wheat for harvest on a farm would be limited to 
the wheat crop acreage base for the farm for the crop 
reduced by 2^2 percent of the wheat crop acreage base, in 
addition to any reduction required under subclause (I); or 
"(ii) 1,000,000,000 bushels or less, the Secretary may provide 
for— 
"(I) an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to wheat for 
harvest on a farm would be limited to the wheat crop 
acreage base for the farm for the crop reduced by not more 
',' 
',' 
than 15 percent; and 
"(II) a land diversion program as described in paragraph 
(5XA). 
"(C) In the case of the 1987 crop of wheat, if the Secretary 
(
V ... 
, J 
estimates, not later than June 1 of the year previous to the year in 
' 
which the crop is harvested, that the quantity of wheat on hand in 
the United States on the first day of the marketing year for that 
crop (not including any quantity of wheat of that crop) will be— 
"(i) more than 1,000,000,000 bushels, the Secretary shall pro-
vide for an acreage limitation program (as described in para-
vifj graph (2)) under which the acreage planted to wheat for harvest 
on a farm would be limited to the wheat crop acreage base for 
' the farm for the crop reduced by not less than 20 percent but 
not more than 27 V
a percent; or 
:/ ,. 
"(ii) 1,000,000,000 bushels or less, the Secretary may provide 
fi: ; for such an acreage limitation program under which the acre-
age planted to wheat for harvest on a farm would be limited to 
V i 
the wheat crop acreage base for the farm for the crop reduced 
- ' - by not more than 20 percent. 
"(D) In the case of each of the 1988 through 1990 crops of wheat, if 
.; ; > the Secretary estimates, not later than June 1 of the year previous 
to the year in which the crop is harvested, that the quantity of 
wheat on hand in the United States on the first day of the market-
ing year for that crop (not including any quantity of wheat of that 
crop) will be— 
"(i) more than 1,000,000,000 bushels, the Secretary shall pro-
vide for an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to wheat for harvest 
on a farm would be limited to the wheat crop acreage base for 
^
' ^ the farm for the crop reduced by not less than 20 percent nor 
^ 
more them 30 percent; or 
"(ii) 1,000,000,000 bushels or less, the Secretary may provide 
for such an acreage limitation program under which the acre-
age planted to wheat for harvest on a farm would be limited to 
the wheat crop acreage base for the farm for the crop reduced 
- " by not more than 20 percent. 
"(E) As a condition of eligibility for loans, purchases, and pay-
ments for any such crop of wheat, except as provided in subsection 
(g), the producers on a farm must comply with the terms and 
conditions of the acreage limitation program and, if applicable, the 
land diversion progremi as provided in paragraph (IXBXiXII). 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1391 
"(2XAXi) If a wheat acreage limitation program is announced 
< :t„.. 
under paragraph (1), such limitation shall be achieved by applying a 
* 
uniform percentage reduction to the wheat crop acreage base for the 
crop for each wheat-producing farm. 
"(ii) If the Secretary elects to determine the established price for 
wheat applicable to producers as provided in subsection (cXlXHXi), 
the limitation on the acreage planted to wheat shall be achieved by 
applying the percentage reductions selected by producers under 
subsection (cXlXHXi) to the crop acreage base for each wheat-produc-
ing farm. 
(B) Except as provided in subsection (g), producers who know-
ingly produce wheat in excess of the permitted wheat acreage for 
the farm shall be ineligible for wheat loans, purchases, and pay-
ments with respect to that farm. 
"(C) Wheat crop acreage bases for each crop of wheat shall be 
determined under title V. 
7 use 1461. 
"(DXi) A number of acres on the farm shall be devoted to conserva- Conservation. 
tion uses, in accordance with regulations issued by the Secretary. Regulations. 
Such number shall be determined by dividing— 
"(I) the product obtained by multiplying the number of acres 
required to be withdrawn from the production of wheat times 
the number of acres planted to such commodity; by 
"(II) the number of acres authorized to be planted to such 
commodity under the limitation established by the Secretary. 
"(ii) The number of acres so determined is hereafter in this 
subsection referred to as 'reduced acreage'. 
"(E) If an acreage limitation program is announced under para- Prohibition. 
graph (1) for a crop of wheat, subsection (d) shall not be applicable to 
such crop, including any prior announcement that may have been 
made under such subsection with respect to such crop. Except as 
otherwise provided in subsection (cXlXC), the individual farm pro-
gram acreage shall be the acreage planted on the farm to wheat for 
harvest within the permitted wheat acreage for the farm as estab- 
, ^
-
^ ..,. 
lished under this paragraph. 
5 1 ? 
"(3)(A) If a set-aside program is announced under paragraph (1), as 
a condition of eligibility for loans, purchases, and payments for 
wheat authorized by this Act (except as provided in subsection (g)), 
the producers on a farm must— 
"(i) set aside and devote to conservation uses an acreage of Conservation. 
cropland equal to a specified percentage, as determined by the 
Secretary, of the acreage of wheat planted for harvest for the 
crop for which the set-aside is in effect; and 
"(ii) otherwise comply with the terms of such program. 
"(B) The set-aside acreage shall be devoted to conservation uses, in Conservation. 
accordance with regulations issued by the Secretary. 
Regulations. 
"(C) If a set-aside program is established, the Secretary may limit 
the acreage planted to wheat. Such limitation shall be applied on a 
uniform basis to all wheat-producing farms. 
"(D) The Secretary may make such adjustments in individual set-
aside acreages under this paragraph £is the Secretary determines 
necessary— 
"(i) to correct for abnormal factors affecting production; and 
"(ii) to give due consideration to tillable acreage, crop-rotation 
practices, types of soil, soil and water conservation measures, 
topography, and such other factors as the Secretary determines 
necessary. 
99 STAT. 1392 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
Conservation. 
Prohibition. 
Conservation. 
Conservation. 
Contracts. 
Contracts. 
"(4XA) The regulations issued by the Secretary under paragraphs 
(2) and (3) with respect to acreage required to be devoted to conserva-
tion uses shall assure protection of such acreage from weeds and 
wind and water erosion. 
"(B) Subject to subparagraph (C), the Secretary may permit, sub-
ject to such terms and conditions £is the Secretary may prescribe, all 
or any part of such acreage to be devoted to sweet sorghum, hay and 
grazing, or the production of guar, sesame, safflower, sunflower, 
castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, or other commodity, if the Secretary determines that 
such production is needed to provide an adequate supply of such 
commodities, is not likely to increase the cost of the price support 
program, and will not affect farm income adversely. 
"(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. 
590h(b)) 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, 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) Haying and grazing shall not be permitted for any crop of 
wheat under clause (i) 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. 
"(D) In determining the quantity of land to be devoted to conserva-
tion uses under an acreage limitation or set-aside program with 
respect to land that has been farmed under summer fallow prac-
tices, as defined by the Secretary, the Secretary shall consider the 
effects of soil erosion and such other factors as the Secretary 
considers appropriate. 
"(5)(A)(i) The Secretary may make land diversion payments to 
producers of wheat, whether or not an acreage limitation program, 
set-aside program, or marketing quotas for wheat are in effect, if the 
Secretary determines that such land diversion payments are nec-
essary to assist in adjusting the total national acreage of wheat to 
desirable goals. Such land diversion payments shall be made to 
producers who, to the extent prescribed by the Secretary, devote to 
approved conservation uses an acreage of cropland on the farm in 
accordance with land diversion contracts entered into by the Sec-
retary with such producers. 
"(ii) The amounts payable to producers under land diversion 
contracts may be determined through the submission of bids for 
such contracts by producers in such manner as the Secretary may 
prescribe or through such other means as the Secretary determines 
appropriate. In determining the acceptability of contract offers, the 
Secretary shall take into consideration the extent of the diversion to 
be undertaken by the producers and the productivity of the acreage 
diverted. 
"(iii) The Secretary shall limit the total acreage to be diverted 
under agreements in any county or local community so as not to 
affect adversely the economy of the county or local community. 
"(B)(i) Notwithstanding the foregoing provisions of this paragraph, 
the Secretary shall implement a land diversion program for the 1986 
crop of wheat for producers who plant the 1986 crop of wheat before 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1393 
the announcement by the Secretary of the wheat acreage limitation 
program for that crop under which the Secretary shall make crop 
retirement and conservation pa3anents to any such producer of the 
1986 crop of wheat who— 
''(I) reduces the acreage on the farm planted to wheat for 
harvest so that it does not exceed the wheat crop acreage base 
for the farm less an amount equivalent to 10 percent of the 
*
" 
wheat crop acreage base (in addition to any reduction required 
under paragraph (2)); and 
"(11) devotes to approved conservation uses an acreage of Conservation. 
cropland equivalent to the reduction required from the wheat 
crop acreage base under this paragraph. 
"(ii) Pa3mients under clause (i) shall be made in an amount 
computed by multiplying— 
"(I) the diversion payment rate; by 
"(II) the acreage diverted under this paragraph; by 
^ ,. 
"(Ill) the farm program payment yield for the crop. 
'•'"'•' 
"(iii) The diversion pa)nnent rate shall be $2.00 per bushel. 
"(6XA) Any reduced acreage, set-aside acreage, and additional 
diverted acreage may be devoted to wildlife food plots or wildlife 
habitat in conformity with standards established by the Secretary in 
consultation with wildlife agencies. 
"(B) The Secretary may pay an appropriate share of the cost of 
practices designed to carry out the purposes of subparagraph (A). 
"(C) The Secretary may also pay an appropriate share of the cost Conservation. 
of approved soil and water conservation practices (including prac-
tices that may be effective for a number of years) established by the 
producer on reduced acreage, set-aside acreage, or additional di-
verted acreage. 
"(D) The Secretary may provide for an additional payment on Regulations. 
such acreage in an amount determined by the Secretary to be 
appropriate in relation to the benefit to the general public if the 
producer agrees to permit, without other compensation, access to all 
or such portion of the farm, as the Secretary may prescribe, by the 
general public, for hunting, trapping, fishing, and hiking, subject to 
applicable State and Federal regulations. 
"(7XA) An operator of a farm desiring to participate in the pro-
gram conducted under this subsection shall execute an agreement 
with the Secretary providing for such participation not later than 
such date as the Secretary may prescribe. 
"(B) The Secretary may, by mutual agreement with producers on 
a farm, terminate or modify any such agreement if the Secretary 
determines such action necessary because of an emergency created 
by drought or other disaster or to prevent or alleviate a shortage in 
the supply of agricultural commodities. 
"(8) Notwithstanding the foregoing provisions of this subsection, 
in carrying out the program conducted under this subsection, the 
Secretary may prescribe production targets for participating farms 
expressed in bushels of production so that all participating farms 
achieve the same pro rata reduction in production as prescribed by 
the national production targets. 
"(gXl) The Secretary may, for each of the 1986 through 1990 crops 
of wheat, make payments available to producers who meet the 
requirements of this subsection. 
"(2) Such payments shall be— 
"(A) made in the form of wheat owned by the Commodity 
Credit ([k>rporation; and 
,,^^ 
v 
99 STAT. 1394 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
"(B) subject to the availability of such wheat. 
"(3XA) Payments under this subsection shall be determined in the 
same manner as provided in subsection (h)-
"(B) The quantity of wheat to be made available to a producer 
under this subsection shall be equal in value to the payments so 
determined under such subsection. 
"(4) A producer shall be eligible to receive a payment under this 
subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agreement 
under subsection (a); 
*i .' 
"(B) agrees to forgo receiving payments under subsection (c); 
"(C) does not plant wheat for harvest in excess of the crop 
acreage base reduced by one-half of any acreage required to be 
diverted from production under subsection (f); and 
"(D) otherwise complies with this section. 
"(h)(1) If the failure of a producer to comply fully with the terms 
and conditions of the program conducted under this section pre-
cludes the making of loans, purchases, and payments, the Secretary 
may, nevertheless, make such loans, purchases, and payments in 
such amounts as the Secretary determines are equitable in relation 
to the seriousness of the failure. 
"(2) The Secretary may authorize the county and State commit-
tees established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
deadlines and other program requirements in cases in which late-
ness or failure to meet such other requirements does not affect 
adversely the operation of the program. 
"(i) The Secretary may issue such regulations as the Secretary 
determines necessary to carry out this section. 
"(j) The Secretary shall carry out the program authorized by this 
section through the Commodity Credit Corporation. 
"(k) The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment 
of payments) shall apply to payments under this section. 
"(1) The Secretary shall provide for the sharing of payments made 
under this section for any farm among the producers on the farm on 
a fair and equitable basis. 
"(m) The Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
"(n)(l) Except as provided in paragraphs (2) and (3), compliance on 
a farm with the terms and conditions of any other commodity 
program may not be required as a condition of eligibility for loans, 
purchases, or payments under this section. 
"(2) If an acreage limitation program is established for a crop of 
wheat under subsection (f)(2), producers who participate in the 
program may not plant acreage of another commodity for which 
there is an acreage limitation program in effect in excess of the crop 
acreage base for the crop for the farm. 
"(3) If a set-aside program is established for a crop of wheat under 
subsection (f)(3), compliance on a farm with the terms and conditions 
of any other commodity program may be required £is a condition of 
eligibility for loans, purchases, or payments under this section.". 
Prohibition. 
7 u s e 1379d 
note. 
NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS 
SEC. 309. Sections 379d, 379e, 379f, 379g, 379h, 379i, and 379j of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1379d-1379j) (relating 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1395 
to marketing certificate requirements for processors and exporters) 
shall not be applicable to wheat processors or exporters during the 
period June 1,1986, through May 31,1991. 
SUSPENSION OP LAND USE, WHEAT MARKETING ALLOCATION, AND 
PRODUCER CERTIFICATE PROVISIONS 
SEC. 310. (a) Sections 332, 333, 334, 335, 336, and 338 of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1332-1336 and 1338) 
shall not be applicable to the 1986 crop of wheat. 
(b) Sections 331, 339, 379b, and 379c of such Act (7 U.S.C. 1331, 
1339, 1379b, and 1379c) shaU not be applicable to the 1986 through 
1990 crops of wheat. 
SUSPENSION OP CERTAIN QUOTA PROVISIONS 
SEC. 311. The joint resolution entitled "A joint resolution relating 
to com and wheat marketing quotas under the Agricultural Adjust-
ment Act of 1938, as amended", approved May 26, 1941 (7 U.S.C. 
1330 and 1340), shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1986 through 1990. 
NONAPPUCABIUTY OF SECTION 107 OF THE AGRICULTURAL ACT OP 1949 
TO THE 1986 THROUGH 1990 CROPS OF WHEAT 
SEC. 312. Section 107 of the Agricultural Act of 1949 (7 U.S.C. 
1445a) shall not be applicable to the 1986 through 1990 crops of 
wheat. 
TITLE IV—FEED GRAINS 
Prohibitions. 
Ante, pp. 
1378-1382. 
7 u s e 1332 
note. 
7 u s e 1331 note. 
Prohibition. 
7 u s e 1340 note. 
Prohibition. 
7 u s e 1445a 
note. 
LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE UMITA-
TION AND SET-ASIDE PROGRAMS, AND LAND DIVERSION FOR THE 1986 
THROUGH 1990 CROPS OF FEED GRAINS 
SEC. 401. Effective only for the 1986 through 1990 crojw of feed 
grains, the Agricultural Act of 1949 is amended by adding after 
section 105B (7 U.S.C. 1444d) the following new section: 
"SEC. 105C. Notwithstanding any other provision of law: 
"(aXl) Except as provided in paragraphs (2) through (4), the 
Secretary shall make available to producers loans and purchases for 
each of the 1986 through 1990 crops of com at such level as the 
Secretary determines will encourage the exportation of feed grains 
and not result in excessive total stocks of feed grains after taking 
into consideration the cost of producing com, supply and demand 
conditions, and world prices for com. 
"(2) Except as provided in paragraph (3), the loan and purchase 
level determined under paragraph (1) shall— 
"(A) in the case of the 1986 crop of com, not be less than $2.40 
per bushel; and 
"(B) in the case of each of the 1987 through 1990 crops of com, 
not be less than 75 percent, nor more than 85 percent, of the 
simple average price received by producers of corn, as deter-
mined by the Secretary, during the marketing years for the 
immediately 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 such period, except that the 
loan and purchase level for a crop determined under this clause 
7 u s e 1444e. 
99 STAT. 1396 
PUBLIC LAW 99-198—DEC. 23, 1985 
may not be reduced by more than 5 percent from the level 
determined for the preceding crop. 
"(3)(A) Except as provided in subparagraph (B), if the Secretary 
determines that the average price received by producers for corn in 
the previous marketing year was not more than 110 percent of the 
loan and purchase level for corn for such marketing year or deter-
mines that such action is necessary to maintain a competitive 
market position for feed grains, the Secretary— 
"(i) in the case of the 1986 crop of corn, shall reduce the loan 
and purchase level for corn for the marketing year by the 
amount the Secretary determines necessary to maintain domes-
tic and export markets for grain but not less than 10 percent of 
the loan and purchase level for such crop; and 
"(ii) in the case of each of the 1987 through 1990 crops of corn, 
may reduce the loan and purchase level for corn for the market-
ing year by the amount the Secretary determines necessary to 
maintain domestic and export markets for grain. 
Prohibition. 
"(B) The loan and purchase level may not be reduced under 
subparagraph (A) by more than 20 percent in any year. 
Prohibition. 
"(C) Any reduction in the loan and purchase level for corn under 
this paragraph shall not be considered in determining the loan and 
purchase level for corn for subsequent years. 
"(4)(A) The Secretary may permit a producer to repay a loan made 
under paragraph (1) or (6) for a crop at a level that is the lesser of— 
"(i) the loan level determined for such crop; or 
", 
"(ii) the higher of— 
"(I) 70 percent of such level; 
•'' 
"(II) if the loan level for a crop was reduced under 
paragraph (3), 70 percent of the loan level that would have 
been in effect but for the reduction under paragraph (3); or 
"(III) the prevailing world market price for feed grains, as 
determined by the Secretary. 
Regulations. 
"(B) If the Secretary permits a producer to repay a loan in 
accordance with subparagraph (A), the Secretary shall prescribe by 
regulation— 
"(i) a formula to define the prevailing world market price for 
feed grains; and 
"(ii) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for feed grains. 
"(5) For purposes of this section, the simple average price received 
by producers for the immediately preceding marketing year shall be 
based on the latest information available to the Secretary at the 
time of the determination. 
7 use 1421. 
"(6) The Secretary shall make available to producers loans and 
purchases for each of the 1986 through 1990 crops of grain 
sorghums, barley, oats, and rye, respectively, at such level as the 
Secretary determines is fair and reasonable in relation to the level 
that loans and purchases are made available for corn, taking into 
consideration the feeding value of such commodity in relation to 
corn and other factors specified in section 401(b). 
"(b)(1) The Secretary may, for each of the 1986 through 1990 crops 
of corn, grain sorghums, barley, oats, and rye, make payments 
available to producers who, although eligible to obtain a loan or 
purchase agreement under subsection (a), agree to forego obtaining 
such loan or agreement in return for such payments. 
"(2) A payment under this subsection shall be computed by mul-
tiplying— 
'•--.!/bKS,:?,.-fr -,--^., r-r-, ^
- -. t '•.-•'' !:• 
• ,;- • .^ --..K 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1397 
"(A) the loan pa3mient rate; by 
"(B) the quantity of such feed grains the producer is eligible to 
place under loan. 
"(3) For purposes of this subsection, the quantity of feed grains 
eligible to be placed under loan may not exceed the product obtained 
by multipljdng— 
"(A) the individual farm program acreage for the crop; by 
"(B) the farm program payment yield established for the 
farm. 
"(4) For purposes of this subsection, the loan pajnnent rate shall 
be the amount by which— 
"(A) the loan level determined for such crop under subsection 
(a); exceeds 
"(B) the level at which a loan may be repaid under subsection 
(a). 
"(cXlXA) The Secretary shall make available to producers pay-
ments for each of the 1986 through 1990 crops of corn, grain 
sorghums, oats, and, if designated by the Secretary, barley, in an 
amount computed by multiplying— 
"(i) the pajmient rate; by 
"(ii) the individual farm program acreage for the crop; by 
"(iii) the farm program pajonent yield for the crop for the 
farm. 
"(BXi) If an acreage limitation program under subsection (fK2) is Conservation. 
in effect for a crop of feed grains and the producers on a farm devote 
a portion of the permitted feed grain acreage of the farm (as 
determined in accordance with subsection (fK2XA)) equal to more 
than 8 percent of the permitted feed grain acreage of the farm for 
the crop to conservation uses or nonprogram crops— 
"(I) such portion of the permitted feed grain acreage of the Conservation. 
farm in excess of 8 percent of such acreage devoted to conserva-
tion uses or nonprogram crops shall be considered to be planted 
to feed grains for the purpose of determining the individual 
farm program acreage in accordance with subsection (fK2XE) 
and for the purpose of determining the acreage on the farm 
required to be devoted to conservation uses in accordance with 
subsection (fX2XD); and 
"(II) the producers shall be eligible for payments under this 
paragraph on such acreage, subject to the compliance of the 
producers with clause (ii). 
"(ii) To be eligible for payments under clause (i), except as pro-
vided in clause (iii), the producers on the farm must actually plant 
feed grains for harvest on at least 50 percent of the permitted feed 
grain acreage of the farm. 
"(iii) If a State or loceil agency has imposed in an area of a State or 
county a quarantine on the planting of feed grains for harvest on 
farms in such area, the State committee established under section 
8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) may recommend to the Secretary that pa3mients be made 
under this paragraph, without regard to the requirement imposed 
under clause (ii), to producers in such area who were required to 
forgo the planting of feed grains for harvest on acreage to alleviate 
or eliminate the condition requiring such quarantine. If the Sec-
retary determines that such condition exists, the Secretary may 
make payments under this paragraph to such producers. To be 
eligible for payments under this clause, such producers may not 
plant wheat, cotton, rice, or soybeans on such acreage. 
99 STAT. 1398 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
Prohibition. 
Conservation. 
Prohibition. 
"(iv) The feed grain crop acresige base and feed grain program 
pajnnent yield of the farm shall not be reduced due to the fact that 
such portion of the permitted acreage of the farm was devoted to 
conserving uses or nonprogram crops. 
"(v) Other than as provided in clauses (i) through (iv), payments 
may not be made under this paragraph for any crop on a greater 
acreage than the acreage actually planted to feed grains. 
"(vi) Any acreage considered to be planted to feed grains in 
accordance with clause (i) may not also be designated as conserva-
tion use acreage for the purpose of fulfilling any provisions under 
any acreage limitation or land diversion program requiring that the 
producers devote a specified acreage to conservation uses. 
"(C)(i) Except as provided in clause (ii), the payment rate for corn 
shall be the amount by which the established price for the crop of 
corn exceeds the higher of— 
"(I) the national weighted average market price received by 
"' producers during the first 5 months of the marketing year for 
such crop, as determined by the Secretary; or 
"(II) the loan level determined for such crop, prior to any 
adjustment made under subsection (a)(3) for the marketing year 
for such crop of corn. 
"(ii) If the national weighted average market price received by 
producers during the first 5 months of the marketing year for a 
crop, as determined by the Secretary, exceeds $2.04 per bushel for 
the 1986 crop of corn, $2.19 per bushel for the 1987 crop, and $2.24 
per bushel for the 1988 crop, at the option of the Secretary, the 
payment rate for such crop of corn shall be the amount by which the 
established price for the crop of corn exceeds the higher of— 
"(I) $2.04 per bushel for the 1986 crop, $2.19 per bushel for the 
1987 crop, and $2.24 per bushel for the 1988 crop; or 
; 
"(II) the loan level determined for such crop, prior to any 
- adjustment made under subsection (a)(3) for the marketing year 
for such crop of corn. 
"(D)(i) Notwithstanding the foregoing provisions of this section, if 
the Secretary adjusts the level of loans and purchases for feed grains 
under subsection (a)(4), the Secretary shall provide emergency com-
pensation by increasing the established price pa3nnents for feed 
grains by such amount as the Secretary determines necessary to 
provide the same total return to producers as if the adjustment in 
the level of loans and purchases had not been made, taking into 
consideration any payments made as the result of subparagraph 
(C)(ii). 
"(ii) In determining the payment rate, per bushel, for established 
price payments for a crop of feed grains under this subparagraph, 
the Secretary shall use the national weighted average market price, 
per bushel of wheat, received by producers during the marketing 
year for such crop, as determined by the Secretary. 
"(E) The established price for corn shall not be less than $3.03 per 
bushel for each of the 1986 and 1987 crops, $2.97 per bushel for the 
1988 crop, $2.88 per bushel for the 1989 crop, and $2.75 per bushel 
for the 1990 crop. 
"(F) The payment rate for grain sorghums, oats, and, if designated 
by the Secretary, barley, shall be such rate as the Secretary deter-
mines is fair and reasonable in relation to the rate at which 
pavments are made available for corn. 
(G) The total quantity on which payments would otherwise be 
payable to ^ producer on a farm for any crop under this paragraph 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1399 
shall be reduced by the quantity on which any disaster payment is 
made to the producer for the crop under paragraph (2). 
"(H) The Secretary may pay not more than 5 percent of the total 
amount of a pa3rment made under this paragraph in the form of feed 
grains. The use of feed grains in making payments to producers 
shall be subject to a determination by the Secretary of the effect 
that such in-kind payments will have on market prices for any 
commodity. The Secretary shall report such determination to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate. 
"(I) As used in this paragraph, the term 'nonprogram crop' means 
any agricultural commodity other than wheat, feed grains, upland 
cotton, extra long staple cotton, rice, or soybeans. 
"(2XAXi) Except as provided in subparagraph (C), if the Secretary 
determines that the producers on a farm are prevented from plant-
ing any portion of the acreage intended for feed grains to feed grains 
or other nonconserving crops because of drought, flood, or other 
natural disaster, or other condition beyond the control of the 
producers, the Secretary shall make a prevented planting disaster 
payment to the producers in an amount equal to the product 
obtained by multiplying— 
"(I) the number of acres so affected but not to exceed the 
acreage planted to feed grains for harvest (including any acre-
age that the producers were prevented from planting to feed 
grains or other nonconserving crops in lieu of feed grains 
because of drought, flood, or other natural disaster, or other 
condition beyond the control of the producers) in the imme-
diately preceding year; by 
"(II) 75 percent of the farm program payment yield estab-
' 
lished by the Secretary; by 
"(III) a payment rate equal to 33 V
b percent of the established 
price for the crop. 
"(ii) Payments made by the Secretary under this subparagraph 
may be made in the form of cash or from stocks of feed grains held 
by the Commodity Credit Corporation. 
"(B) Except as provided in subparagraph (C), if the Secretary 
determines that because of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the total 
quantity of feed grains that the producers are able to harvest on any 
farm is less than the result of multiplying 60 percent of the farm 
program payment yield established by the Secretary for such crop 
by the acreage planted for harvest for such crop, the Secretary shall 
make a reduced yield disaster payment to the producers at a rate 
equal to 50 percent of the established price for the crop for the 
deficiency in production below 60 percent for the crop. 
"(C) Producers on a farm shall not be eligible for— 
Prohibition, 
"(i) prevented planting disaster payments under subpara-
graph (A), if prevented planting crop insurance is available to 
the producers under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) with respect to the feed grain acreage of the 
producers; or 
"(ii) reduced yield disaster payments under subparagraph (B), 
ri if reduced yield crop insurance is available to the producers 
B under such Act with respect to the feed grain acreage of the 
producers. 
51-194 O - 88 - 10 : QL. 3 
Part 2 
99 STAT. 1400 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(DXi) Notwithstanding subparagraph (C), the Secretary may 
make a disaster payment to the producers on a farm under this 
paragraph if the Secretary determines that— 
"(I) as the result of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the 
i producers on a farm have suffered substantial losses of produc-
. lion either from being prevented from planting feed grains or 
'r other nonconserving crops or from reduced yields; 
' 
"(11) such losses have created an economic emergency for the 
/ 
producers; 
"(III) crop insurance indemnity payments under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) and other forms of 
assistance made available by the Federal (Government to such 
producers for such losses are insufficient to alleviate such eco-
; nomic emergency; and 
"(IV) additional assistance must be made available to such 
producers to alleviate such economic emergency, 
"(ii) The Secretary may make such adjustments in the amount of 
payments made available under this subparagraph with respect to 
an individual farm so as to assure the equitable allotment of such 
payments among producers, taking into account other forms of 
Federal disaster assistance provided to the producers for the crop 
involved. 
"(dXlXA) Except for a crop with respect to which there is an 
acreage limitation program in effect under subsection (f), the Sec-
retary shall proclaim a national program acreage for each of the 
1986 through 1990 crops of feed grains. The proclamation shall be 
made not later than September 30 of each calendar year for the crop 
harvested in the next succeeding calendar year, except that in the 
case of the 1986 crop, the proclamation shall be made as soon as 
practicable after the date of enactment of the Food Security Act of 
1985. 
"(B) The Secretary may revise the national program acreage first 
proclaimed for any crop year for the purpose of determining the 
allocation factor under paragraph (2) if the Secretary determines it 
necessary based on the latest information. The Secretary shall 
proclaim such revised national program acreage as soon as it is 
made. 
"(C) The national program acreage for feed grains shall be the 
number of harvested acres the Secretary determines (on the basis of 
the weighted national average of the farm program payment 3rields 
for the crop for which the determination is made) will produce the 
quantity (less imports) that the Secretary estimates will be utilized 
domestically and for export during the marketing year for such 
crop. 
"(D) If the Secretary determines that carryover stocks of feed 
grains are excessive or an increase in stocks is needed to assure 
!' 
desirable carryover, the Secretary may adjust the national program 
acreage by the quantity the Secretary determines will accomplish 
the desired increase or decrease in carryover stocks. 
Prohibition. 
"(2) The Secretary shall determine a program allocation factor for 
each crop of feed grains. The allocation factor for feed grains shall 
be determined by dividing the national program acreage for the crop 
by the number of acres that the Secretary estimates will be har-
vested for such crop, except that in no event shall the allocation 
factor for any crop of feed grains be more than 100 percent nor less 
than 80 percent. 
<
' ^•'r?'-Te»'m<r'vs/i^mp^^xwt^m<g:!' i^-^»f^~ -
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1401 
"(3)(A) Except as provided in subsection (f)(2), the individual farm 
program acreage for each crop of feed grains shall be determined by 
multiplying the allocation factor by the acreage of feed grains 
planted for harvest on the farms for which individual farm program 
acreages are required to be determined. 
"(B) The individual farm program acreage shall not be further 
Prohibition. 
reduced by application of the allocation factor if the producers 
reduce the acreage of feed grains planted for harvest on the farm 
from the crop acreage base established for the farm under title V by 
7 use 1461. 
at least the percentage recommended by the Secretary in the 
proclamation of the national program acreage. 
"(C) The Secretary shall provide fair and equitable treatment for 
producers on farms on which the acreage of feed grains planted for 
harvest is less than the crop acreage base established for the farm 
under title V, but for which the reduction is insufficient to exempt 
the farm from the application of the allocation factor. 
"(D) In establishing the allocation factor for feed grains, the 
Secretary may make such adjustment as the Secretary deems nec-
essary to take into account the extent of exemption of farms under 
the foregoing provisions of this paragraph. 
"(e) The farm program payment yields for farms for each crop of 
feed grains shall be determined under title V. 
"(f)(l)(A)(i) Notwithstanding any other provision of this Act, 
except £is provided in subparagraphs (B) through (D), if the Sec-
retary determines that the total supply of feed grains, in the absence 
of an acreage limitation or set-aside program, will be excessive 
taking into account the need for an adequate carryover to maintain 
reasonable and stable supplies and prices and to meet a national 
emergency, the Secretary may provide for any crop of feed grains 
either an acreage limitation program as described in paragraph (2) 
or a set-aside program as described in paragraph (3). 
"(ii) In making a determination under clause (i), the Secretary 
shall take into consideration the number of acres placed in the 
conservation acreage reserve established under section 1231 of the 
Food Security Act of 1985. 
Post, p. 1509. 
"(iii) If the Secretary elects to put either of such programs into 
effect for any crop year, the Secretary shall announce any such 
program not later than September 30 prior to the calendar year in 
which the crop is harvested, except that in the case of the 1986 crop, 
the Secretary shall announce such program as soon as practicable 
after the date of enactment of the Food Security Act of 1985. 
"(iv) Not later than November 15 of the year previous to the year 
in which the crop is harvested, the Secretary may make adjustments 
in an announcement made under clause (iii) if the Secretary deter-
mines that there has been a significant change in the total supply of 
feed grains since the program was first announced. 
"(B) In the case of the 1986 crop of feed grains, if the Secretary 
estimates, as soon as practicable after the date of enactment of the 
Food Security Act of 1985, that the quantity of corn on hand in the 
United States on the first day of the marketing year for that crop 
(not including any quantity of corn of that crop) will be— 
"(i) more than 2,000,000,000 bushels, the Secretary shall pro-
vide for— 
"(I) an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to feed grains 
for harvest on a farm would be limited to the feed grain 
s 
99 STAT. 1402 
PUBLIC LAW 99-198—DEC. 23, 1985 
crop acreage base for the farm for the crop reduced by not 
less than 12 V
a percent nor more than 17 V
a percent; and 
"(11) a land diversion program (as described in paragraph 
(5)) with in-kind pajmients under which the acreage planted 
to feed grains for harvest on a farm would be limited to the 
feed grain acreage crop base for the farm for the crop 
reduced by not less than an amount equivalent to 2^2 
percent of the feed grain crop acreage base, in addition to 
any reduction required under subclause (I); or 
"(ii) 2,000,000,000 bushels or less, the Secretary may provide 
for— 
"(I) an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to feed grains 
for harvest on a farm would be limited to the feed grain 
crop acreage base for the farm for the crop reduced by not 
more than 12^2 percent; and 
"(II) a land diversion program as described in para-
graph (5). 
"(C) In the case of each of the 1987 through 1990 crops of feed 
grains, if the Secretary estimates, not later than September 30 of 
the year previous to the year in which the crop is harvested, that 
the quantity of corn on hand in the United States on the first day of 
the marketing year for that crop (not including any quantity of corn 
of that crop) will be— 
"(i) more than 2,000,000,000 bushels, the Secretary shall pro-
vide for an acreage limitation program (as described in para-
graph (2)) under which the acreage planted to feed grains for 
harvest on a farm would be limited to the feed grain crop 
acreage base for the farm for the crop reduced by not less than 
12 y2 percent nor more than 20 percent; or 
"(ii) 2,000,000,000 bushels or less, the Secretary may provide 
for such an acreage limitation program under which the acre-
' age planted to feed grains for harvest on a farm would be 
limited to the feed grain crop acreage base for the farm for the 
crop reduced by not more than 12y2 percent. 
"(D) As a condition of eligibility for loans, purchases, and pay-
ments for any such crop of feed grains, except as provided in 
subsection (g), the producers on a farm must comply with the terms 
and conditions of the acreage limitation program and, if applicable, 
the land diversion program, as provided in paragraph (IXBXiXD-
"(2XA) If a feed grain acreage limitation program is announced 
under paragraph (1), such limitation shall be achieved by appljdng a 
uniform percentage reduction to the feed grain crop acreage base for 
the crop for each feed grain-producing farm. 
"(B) Except as provided in subsection (g), producers who know-
ingly produce feed grains in excess of the permitted feed grain 
acreage for the farm shall be ineligible for feed grain loans, pur-
chases, and payments with respect to that farm. 
Prohibition. 
"(C) The Secretary may provide that no producer of malting 
barley shall be required as a condition of eligibility for feed grain 
loans, purchases, and pa3nnents to comply with any acreage limita-
tion under this paragraph if such producer has previously produced 
a malting variety of barley for harvest, plants barley only of an 
acceptable malting variety for harvest, and meets such other condi-
tions as the Secretary may prescribe. 
"(D) Feed grain crop acreage bases for each crop of feed grains 
7 use 1461. 
shall be determined under title V. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1403 
"(EXi) A number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the Secretary. 
Such number shall be determined by dividing— 
"(I) the product obtained by multiplying the number of acres 
required to be withdrawn from the production of feed grains 
times the number of acres planted to such commodity; by 
"(II) the number of acres authorized to be planted to such 
commodity under the limitation established by the Secretary. 
"(ii) The number of acres so determined is hereafter in this 
subsection referred to as 'reduced acreage'. 
"(F) If an acreage limitation program is announced under para-
graph (1) for a crop of feed grains, subsection (d) shall not be 
applicable to such crop, including any prior announcement that may 
have been made under such subsection with respect to such crop. 
Except as otherwise provided in subsection (cXDOB), the individual 
farm program acreage shall be the acreage planted on the farm to 
feed grains for harvest within the permitted feed grain acreage for 
the farm as established under this paragraph. 
"(3XA) If a set-aside program is announced under paragraph (1), as 
a condition of eligibility for loans, purchases, and payments for feed 
grains authorized by this Act (except as provided in subsection (g)), 
the producers on a farm must— 
"(i) set aside and devote to conservation uses an acreage of 
cropland equal to a specified percentage, as determined by the 
Secretary, of the acreage of feed grains planted for harvest for 
the crop for which the set-aside is in effect; and 
"(ii) otherwise comply with the terms of such program. 
"(B) The set-aside acreage shall be devoted to conservation uses, in 
accordance with regulations issued by the Secretary. 
"(C) If a set-aside program is established, the Secretary may limit 
the acreage plsmted to feed grains. Such limitation shall be applied 
on a uniform basis to all feed grain-producing farms. 
"(D) The Secretary may make such adjustments in individual set-
aside acreages under this section as the Secretary determines 
necessary— 
"(i) to correct for abnormal factors affecting production; and 
"(ii) to give due consideration to tillable acreage, crop-rotation 
practices, types of soil, soil and water conservation measures, 
topography, and such other factors as the Secretary determines 
necessary. 
"(4XA) The regulations issued by the Secretary under paragraphs 
(2) and (3) with respect to acreage required to be devoted to conserva-
tion uses shall assure protection of such acreage from weeds and 
wind and water erosion. 
"(B) Subject to subparagraph (C), the Secretary may permit, sub-
ject to such terms and conditions as the Secretary may prescribe, all 
or any part of such acreage to be devoted to sweet sorghum, hay and 
grazing, or the production of g^uar, sesame, safflower, sunflower, 
castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, or other commodity, if the Secretary determines that 
such production is needed to provide an adequate supply of such 
commodities, is not likely to increase the cost of the price support 
progrsun, and will not affect farm income adversely. 
"(CXi) 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 CJonservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) for a State and subject to such terms and conditions as the 
Conservation. 
Regulations. 
Prohibition. 
Conservation. 
Conservation. 
Regulations. 
Regulations. 
Conservation. 
99 STAT. 1404 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
16 u s e 590h. 
Conservation. 
Conservation. 
Contracts. 
Contracts. 
Wildlife refuge. 
Conservation. 
Regulations. 
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, in the case of the 1986 crop of feed 
grains; and 
"(ID grazing, in the case of each of the 1987 through 1990 
crops of feed grains. 
"(ii) Hajdng and grazing shall not be permitted for any crop of 
feed grains under clause (i) 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. 
"(D) In determining the quantity of land to be devoted to conserva-
tion uses under an acreage limitation or set-aside program with 
respect to land that has been farmed under summer fallow prac-
tices, as defined by the Secretary, the Secretary shall consider the 
effects of soil erosion and such other factors as the Secretary 
considers appropriate. 
"(5XA) The Secretary may make land diversion payments to 
producers of feed grains, whether or not an acreage limitation or 
set-aside program for feed grains is in effect, if the Secretary 
determines that such land diversion payments are necessary to 
assist in adjusting the total national acreage of feed grains to 
desirable goals. Such land diversion pa3mients shall be made to 
producers who, to the extent prescribed by the Secretary, devote to 
approved conservation uses an acreage of cropland on the farm in 
accordance with land diversion contracts entered into by the Sec-
retary with such producers. 
"(B) The amounts payable to producers under land diversion 
contracts may be determined through the submission of bids for 
such contracts by producers in such manner as the Secretary may 
prescribe or such other means as the Secretary determines appro-
priate. In determining the acceptability of contract offers, the Sec-
retary shall take into consideration the extent of the diversion to be 
undertaken by the producers and the productivity of the acreage 
diverted. 
"(C) The Secretary shall limit the total acreage to be diverted 
under agreements in any county or local community so as not to 
affect adversely the economy of the county or local community. 
"(6XA) Any reduced acreage, set-aside acreage, and additional 
diverted acreage may be devoted to wildlife food plots or wildlife 
habitat in conformity with standards established by the Secretary in 
consultation with wildlife agencies. 
"(B) The Secretary may pay an appropriate share of the cost of 
practices designed to carry out the purposes of subparagraph (A). 
"(C) The Secretary may also pay an appropriate share of the cost 
of approved soil and water conservation practices (including prac-
tices that may be effective for a number of years) established by the 
producer on reduced acreage, set-aside acreage, or additional di-
verted acreage. 
"(D) The Secretary may provide for an additional payment on 
such acreage in an amount determined by the Secretary to be 
appropriate in relation to the benefit to the general public if the 
producer agrees to permit, without other compensation, access to all 
or such portion of the farm, as the Secretary may prescribe, by the 
general public, for hunting, trapping, fishing, and hiking, subject to 
applicable State and Federal regulations. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1405 
"(7)(A) An operator of a farm desiring to participate in the pro-
gram conducted under this subsection shall execute an agreement 
with the Secretary providing for such participation not later than 
such date as the Secretary may prescribe. 
"(B) The Secretary may, by mutual agreement with producers on 
a farm, terminate or modify any such agreement if the Secretary 
determines such action necessary because of an emergency created 
by drought or other disaster or to prevent or alleviate a shortage in 
the supply of agricultural commodities. 
"(8) Notwithstanding the foregoing provisions of this subsection, 
in carrying out the program conducted under this subsection, the 
Secretary may prescribe production targets for participating farms 
expressed in bushels of production so that all participating farms 
achieve the same pro rata reduction in production as prescribed by 
the national production targets. 
"(g)(1) The Secretary may, for each of the 1986 through 1990 crops 
of corn, grain sorghums, oats, and, if designated by the Secretary, 
barley, make payments available to producers who meet the require-
ments of this subsection. 
"(2) Such payments shall be— 
"(A) made in the form of such feed grains, respectively, owned 
by the Commodity Credit Corporation; and 
"(B) subject to the availability of such feed grains. 
"(3)(A) Payments under this subsection shall be determined in the 
same manner as provided in subsection (b). 
"(B) The quantity of feed grains to be made available to a pro-
ducer under this subsection shall be equal in value to the payments 
so determined under such subsection. 
"(4) A producer shall be eligible to receive a payment under this 
subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agreement 
under subsection (a); 
"(B) agrees to forgo receiving payments under subsection (c); 
"(C) does not plant feed grains for harvest in excess of the 
crop acreage base reduced by one-half of any acreage required 
to be diverted from production under subsection (f); and 
"(D) otherwise complies with this section. 
"(h)(1) If the failure of a producer to comply fully with the terms 
and conditions of the program conducted under this section pre-
cludes the making of loans, purchases, and pa3nnents, the Secretary 
may, nevertheless, make such loans, purchases, and payments in 
such amounts as the Secretary determines are equitable in relation 
to the seriousness of the failure. 
"(2) The Secretary may authorize the county and State commit-
tees established under section 80)) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590hOt))) to waive or modify 
deadlines and other program requirements in cases in which late-
ness or failure to meet such other requirements does not affect 
adversely the operation of the program. 
"(i) The Secretary may issue such regulations as the Secretary Regulations. 
determines necessary to carry out this section. 
"0') The Secretary shall carry out the program authorized by this 
section through the Commodity Credit Corporation. 
"(k) The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment 
of payments) shall apply to payments under this section. 
99 STAT. 1406 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(1) The Secretary shall provide for the sharing of payments made 
under this section for any farm among the producers on the farm on 
a fair and equitable basis. 
"(m) The Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
"(nXD Except as provided in paragraphs (2) and (3), compliance on 
a farm with the terms and conditions of any other commodity 
program may not be required as a condition of eligibility for loans, 
purchases, or payments under this section. 
Prohibition. 
"(2) If an acreage limitation program is established for a crop of 
feed grains under subsection (0(2), producers who participate in the 
program may not plant acreage of another commodity for which 
there is an acreage limitation program in effect in excess of the crop 
acreage base for the crop for the farm. 
"(3) If a set-aside program is established for a crop of feed grains 
under subsection (fK3), compliance on a farm with the terms and 
conditions of any other commodity program may be required as a 
condition of eligibility for loans, purchases, or payments under this 
section.". 
7 u s e 1444b 
note. 
7 u s e 1444e-l. 
NONAPPUCABILITY OF SECTION 105 OF THE AGRICULTURAL ACT OF 1949 
TO THE 1986 THROUGH 1990 CROPS OF FEED GRAINS 
SEC. 402. Section 105 of the Agricultural Act of 1949 (7 U.S.C. 
1444b) shall not be applicable to the 1986 through 1990 crops of feed 
grains. 
PRICE SUPPORT FOR CORN SILAGE 
SEC. 403. (a) Notwithstanding any other provision of law, effective 
only for each of the 1986 through 1990 crops of feed grains, the 
Secretary of Agriculture may make available loans and purchases, 
as provided in this section, to producers on a farm who— 
(1) for silage— 
(A) cut com (including mutilated com) that the producers 
have produced in such crop year; or 
(B) purchase or exchange com (including mutilated com) 
that has been produced in such crop year by another pro-
ducer (including a producer that is not participating in an 
acreage limitation or set-aside program for such crop estab-
lished by the Secretary); and 
(2) participate in an acreage limitation or set-aside program 
for such crop of corn established by the Secretary. 
(b) Such loans and purchases may be made on a quantity of corn of 
the same crop, other than the corn obtained for silage, acquired by 
the producer equivalent to a quantity determined by multipljring— 
, 
(1) the acreage of com obtained for silage; by 
(2) the lower of the farm program pa3rment jdeld or the actual 
yield on a field, as determined by the Secretary, that is similar 
to the field from which such silage was obtained. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1407 
I * 1 
> 
:•.<. TITLE V—COTTON 
i 
:: 
LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE LIMITA-
TION PROGRAM, AND LAND DIVERSION FOR THE 1986 THROUGH 1990 
CROPS OF UPLAND COTTON 
SEC. 501. Effective only for the 1986 through 1990 crops of upland 
cotton, the Agricultural Act of 1949 is amended by inserting after 
section 103 (7 U.S.C. 1444) the following new section: 
"SEC. 103A. Notwithstanding any other provision of law: 
7 USC 1444-1. 
"(aXD Except as provided in paragraph (2), the Secretary shall, on 
presentation of warehouse receipts reflecting accrued storage 
charges of not more than 60 days, make available for the 1986 
through 1990 crops of upland cotton to producers nonrecourse loans 
for a term of 10 months from the first day of the month in which the 
loan is made at such level, per pound, as will reflect for Strict Low 
Middling one and one-sixteenth inch upland cotton (micronaire 3.5 
through 4.9) at average location in the United States at a level that 
is not less than— 
"(A) in the case of the 1986 crop of upland cotton, 55 cents per 
pound; and 
"(B) in the case of each of the 1987 through 1990 crops of 
upland cotton, the smaller of— 
"(i) 85 percent of the average price (weighted by market 
and month) of such quality of cotton as quoted in the 
* 
designated United States spot markets during 3 years of the 
5-year period ending July 31 in the year in which the loan 
level is announced, excluding the year in which the average 
price was the highest and the year in which the average 
price was the lowest in such period; or 
"(ii) 90 percent of the average, for the 15-week period 
beginning July 1 of the year in which the loan level is 
announced, of the 5 lowest-priced growths of the growths 
quoted for Middling one and three-thirty-seconds inch 
cotton C.I.F. northern Europe (adjusted downward by the 
average difference during the period April 15 through Octo-
ber 15 of the year in which the loan is announced between 
such average northern European price quotation of such 
quality of cotton and the market quotations in the des-
ignated United States spot markets for Strict Low Middling 
one and one-sixteenth inch cotton (micronaire 3.5 through 
4.9)). 
"(2XA) The loan level for any crop determined under paragraph 
(IXB) may not be reduced by more than 5 percent from the loan level 
determined for the preceding crop nor below 50 cents per pound. 
"(B) If for any crop the average northern European price deter-
mined under paragraph (lXB)(ii) is less than the average United 
States spot market price determined under paragraph (IXBXi), the 
Secretary may increase the loan level to such level as the Secretary 
may deem appropriate, not in excess of the average United States 
spot market price determined under paragraph (IXBXi). 
"(3) The loan level for any crop of upland cotton shall be deter- 
Prohibition. 
mined and announced by the Secretary not later than November 1 
of the calendar year preceding the marketing year for which such 
loan is to be effective, except that in the case of the 1986 crop, such 
determination and announcement shall be made as soon as prac-
99 STAT. 1408 
PUBLIC LAW 99-198—DEC. 23, 1985 
ticable after the date of enactment of the Food Security Act of 1985. 
Such level shall not thereafter be changed. 
"(4XA) Except as provided in subparagraph (B), nonrecourse loans 
provided for in this section shall, on request of the producer during 
the 10th month of the loan period for the cotton, be made available 
for an additional term of 8 months. 
"(B) A request to extend the loan period shsdl not be approved in 
any month in which the average price of Strict Low Middling one 
and one-sixteenth inch cotton (micronaire 3.5 through 4.9) in the 
designated spot markets for the preceding month exceeded 130 
percent of the average price of such quality of cotton in such 
markets for the preceding 36-month period. 
"(5XA) If the Secrets^ determines that the prevailing world 
market price for upland cotton (adjusted to United States quality 
and location) is below the loan level determined under the foregoing 
provisions of this subsection, in order to make United States upland 
cotton competitive in world markets, the Secretary shall implement 
the provisions of Plan A or Plan B in accordance with this 
paragraph. 
"(B) If the Secretary elects to implement Plan A, the Secretary 
shall permit a producer to repay a loan made for any crop at a level 
determined and announced by the Secretary at the same time the 
Secretary announces the loan level for such crop as determined 
under paragraph (3). Such repayment level for loans on such crops 
shall not be less than 80 percent of the loan level determined for the 
crop. Such repajrment level, once announced for the crop, shall not 
thereafter be changed. 
"(CXi) If the Secretary elects to implement Plan B, except as 
provided in clause (ii), the Secretary shall permit a producer to 
repay a loan made for any crop at a level that is the lesser of^ 
"(I) the loan level determined for such crop; or 
"(II) the prevailing world market price for upland cotton 
(adjusted to United States quality and location), as determined 
by the Secreteiry. 
"(ii) For each of the 1987 through 1990 crops of cotton, if the world 
market price for cotton (adjusted to United States quality and 
location) as determined by the Secretary, is less than 80 percent of 
the loan level determined for such crop, the Secretary may permit a 
producer to repay a loan made under this subsection for a crop at 
such level (not in excess of 80 percent of the loan level determined 
for such crop) as the Secretary determines will— 
"(I) minimize potential loan forfeitures; 
"(II) minimize the accumulation of cotton stocks by the Fed-
eral Government; 
"(III) minimize the cost incurred by the Federal Grovemment 
in storing cotton; and 
"(IV) allow cotton produced in the United States to be mar-
keted 
freely 
and 
competitively, 
both 
domestically 
and 
internationally. 
Exports. 
"(DXi) Notwithstanding any other provision of law, during the 
period beginning August 1, 1986, and ending July 31, 1991, if a 
program carried out under Plan A or Plan B fails to make United 
States upland cotton fully competitive in world markets and the 
prevailing world market price of upland cotton (adjusted to United 
States quality and location), as determined by the Secretary, is 
below the current loan repayment rate for upland cotton deter-
mined under subparagraph (A), to make United States upland 
'" >.ip?«*»g«' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1409 
cotton competitive 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 nego-
tiable marketing certificates in accordance with this subparagraph. 
"(ii) The Commodity Credit Corporation, under such regulations 
as the Secretary may prescribe, shall make payments, through the 
issuance of negotiable marketing certificates, to first handlers of 
cotton (persons regularly engaged in buying or selling upland 
cotton) who have entered into an agreement with the Commodity 
Credit Corporation to participate in the program established under 
this subparagraph. Such payments shall be made in such monetary 
amounts and subject to such terms and conditions as the Secretary 
determines will make upland cotton produced in the United States 
available at competitive prices, consistent with the purposes of this 
subparagraph, including such payments as may be necessary to 
make raw cotton in inventory on August 1, 1986, available on the 
same basis. 
"(iii) The value of each certificate issued under clause (ii) shall be 
based on the difference between— 
"(I) the loan repayment rate for upland cotton under Plan A 
or Plan B, as the case may be; and 
"(II) the prevailing world market price of upland cotton, as 
determined by the Secretary under a published formula sub-
mitted for public comment before its adoption. 
"(iv) The Commodity Credit Corporation, under regulations pre-
scribed by the Secretary, may assist any person receiving marketing 
certificates under this subparagraph in the redemption of certifi-
cates for cash, or marketing or exchange of such certificates for (I) 
upland cotton owned by the Commodity Credit Corporation or (II) (if 
the Secretary and the person agree) other agricultural commodities 
or the products thereof owned by the Commodity Credit Corpora-
tion, at such times, in such manner, and at such price levels as the 
Secretary determines will best effectuate the purposes of the pro-
gram established under this subparagraph. Notwithstanding any 
other provision of law, any price restrictions that may otherwise 
apply to the disposition of agricultural commodities by the Commod-
ity Credit Corporation shall not apply to the redemption of certifi-
cates under this subparagraph. 
"(v) Insofar as practicable, the Secretary shall permit owners of 
certificates to designate the commodities and the products thereof, 
including storage sites thereof, such owners would prefer to receive 
in exchange for certificates. If any certificate is not presented for 
redemption, marketing, or exchange within a reasonable number of 
days after the issuance of such certificate (as determined by the 
Secretary), reasonable costs of storage and other carrying charges, 
as determined by the Secretary, shall be deducted from the value of 
the certificate for the period beginning after such reasonable 
number of days and ending with the date of the presentation of such 
certificate to the Commodity Credit Corporation. 
"(vi) The Secretary shall take such measures as may be necessary 
to prevent the marketing or exchange of agricultural commodities 
and products for certificates under this section from adversely 
affecting the income of producers of such commodities or products. 
"(vii) Under regulations prescribed by the Secretary, certificates 
issued to cotton handlers under this subparagraph may be trans-
ferred to other handlers and persons approved by the Secretary. 
"(EXi) The Secretary shall prescribe by regulation— 
Regulations. 
C!ontracts. 
Regulations. 
Prohibition. 
Regulations. 
Regulations. 
99 STAT. 1410 
PUBLIC LAW 99-198—DEC. 23, 1985 
Federal 
Roister, 
publication. 
Regulations. 
Conservation. 
"(I) a formula to define the prevailing world market price for 
cotton; and 
"(II) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for cotton. 
"(ii) Not later than 90 days after the date of enactment of the Food 
Security Act of 1985, the Secretary shall— 
"(I) publish in the Federal Register proposed regulations 
specifying such formula and mechanism; and 
"(II) invite public comment on such proposal, 
"(iii) The prevailing world market price established under this 
subparagraph shall be used for purposes of both Plan A and Plan B 
and marketing certificates under subparagraph (D). 
"(bXD The Secretary may, for each of the 1986 through 1990 crops 
of upland cotton, make pa5nnents available to producers who, al-
though eligible to obtain a loan under subsection (a), sigree to forgo 
obtaining such loan in return for such payments. 
"(2) A payment under this subsection shall be computed by 
multiplying— 
"(A) the loan payment rate; by 
"(B) the quantity of upland cotton the producer is eligible to 
place under loan. 
"(3) For purposes of this subsection, the quantity of upland cotton 
eligible to be placed under loan may not exceed the product obtained 
by multiplying— 
"(A) the individual farm program acreeige for the crop; by 
"(B) the farm program payment yield established for the 
farm. 
"(4) For purposes of this subsection, the loan payment rate shall 
be the amount by which— 
"(A) the loan level determined for such crop under sub-
section (a); exceeds 
"(B) the level at which a loan may be repaid under subsection 
(a). 
"(5) The Secretary may make up to one-half the amount of a 
payment under this subsection available in the form of negotiable 
marketing certificates, subject to the terms and conditions provided 
in subsection (a)(5)(D). 
"(c)(lXA) The Secretary shall make available to producers pay-
ments for each of the 1986 through 1990 crops of upland cotton in an 
amount computed by multiplying— 
"(i) the payment rate; by 
^ 
n 
"(ii) the individual farm program acreage; by 
"(iii) the farm program payment yield established for the crop 
for the farm. 
"(B)(i) If an acreage limitation program under subsection (fK2) is 
in effect for a crop of upland cotton and the producers on a farm 
devote a portion of the permitted upland cotton acreage of the farm 
(as determined in accordance with subsection (f)(2)(A)) equal to more 
than 8 percent of the permitted upland cotton acreage of the farm 
for the crop to conservation uses or nonprogram crops— 
"(I) such portion of the permitted upland cotton acreage in 
excess of 8 percent of such acreage devoted to conservation uses 
or nonprogram crops shall be considered to be planted to upland 
cotton for the purpose of determining the individual farm pro-
gram acreage in accordance with subsection (f)(2)(E) and for the 
purpose of determining the acreage on the farm required to be 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1411 
devoted to conservation uses in accordance with subsection 
(fX2XD); and 
"(11) the producers shall be eligible for pa3rments under this 
paragraph on such acreage, subject to the compliance of the 
producers with clause (ii). 
"(ii) To be eligible for pajrments under clause (i), except as pro-
vided in clause (iii), the producers on the farm must actually plant 
upland cotton for harvest on at least 50 percent of the permitted 
upland cotton acreage of the farm. 
"(iii) If a State or local agency has imposed in an area of a State or 
county a quarantine on the planting of upland cotton for harvest on 
farms in such area, the State committee established under section 
8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) may recommend to the Secretary that pajonents be made 
under this paragraph, without regard to the requirement imposed 
under clause (ii), to producers in such area who were required to 
forgo the planting of upland cotton for harvest on acreage to allevi-
ate or eliminate the condition requiring such quarantine. If the 
Secretary determines that such condition exists, the Secretary may 
make payments under this paragraph to such producers. To be 
eligible for pajmients under this clause, such producers may not 
plant wheat, feed grains, rice, cotton, or soybeans on such acreage. 
"(iv) The upland cotton crop acreage base and upland cotton farm 
Prohibition. 
program pajmient yield of the farm shall not be reduced due to the 
fact that such portion of the permitted acreage of the farm was 
devoted to conserving uses or nonprogram crops. 
"(v) Other than as provided in clauses (i) through (iv), payments Prohibition, 
may not be made under this subsection for any crop on a greater 
acreage than the acreage actually planted to upland cotton. 
"(vi) Any acreage considered to be planted to upland cotton in 
accordance with clause (i) may not also be designated as conserva-
tion use acreage for the purpose of fulfilling any provisions under 
any acreage limitation or land diversion program requiring that the 
producers devote a specified acreage to conservation uses. 
"(C) The payment rate for upland cotton shall be the amount by 
which the established price for the crop of upland cotton exceeds the 
higher of— 
» 
"(i) the national average market price received by producers 
during the calendar year that includes the first 5 months of the 
marketing year for such crop, as determined by the Secretary; 
or 
"(ii) the loan level determined for such crop. 
"(D) The established price for upland cotton shall not be less than 
Prohibition. 
$0.81 per pound for the 1986 crop, $0,794 per pound for the 1987 
crop, $0.77 per pound for the 1988 crop, $0,745 per pound for the 
1989 crop, and $0,729 per pound for the 1990 crop. 
"(E) The total quantity of upland cotton on which payments would 
otherwise be payable to a producer on a farm for any crop under this 
subsection shall be reduced by the quantity on which any disaster 
payment is made to the producer for the crop under paragraph (2). 
'(F) The Secretary may pay not more than 5 percent of the total 
Prohibition. 
amount of a pajnnent made under this paragraph in the form of 
upland cotton. The use of upland cotton in making payments to 
producers shall be subject to a determination by the Secretary of the 
effect that such in-kind payments will have on market prices for any 
commodity. The Secretary shall report such determination to the 
Report. 
99 STAT. 1412 
PUBLIC LAW 99-198—DEC. 23, 1985 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate. 
"(G) As used in this subsection, the term 'nonprogram crop' means 
any agricultural commodity other than wheat, feed grains, upland 
cotton, extra long staple cotton, rice, or soybeans. 
"(2)(A)(i) Except as provided in subparagraph (C), if the Secretary 
determines that the producers on a farm are prevented from plant-
ing any portion of the acreage intended for upland cotton to upland 
cotton or other nonconserving crops because of drought, flood, or 
other natural disaster, or other condition beyond the control of the 
producers, the Secretary shall make a prevented planting disaster 
payment to the producers in an amount equal to the product 
obtained by multiplying— 
"(I) the number of acres so affected but not to exceed the 
^- acreage planted to upland cotton for harvest (including any 
acreage that the producers were prevented from planting to 
I] upland cotton or other nonconserving crops in lieu of upland 
,1 
cotton because of drought, flood, or other natural disaster, or 
other condition beyond the control of the producers) in the 
immediately preceding year; by 
"(II) 75 percent of the farm program payment yield estab-
lished for the farm by the Secretary; by 
^, 
"(III) a payment rate equal to 33 V
a percent of the established 
price for the crop. 
"(ii) Payments made by the Secretary under this subparagraph 
may be made in the form of cash or from stocks of upland cotton 
^ 
,. 
held by the Commodity Credit Corporation. 
"(B) Except £is provided in subparagraph (C), if the Secretary 
determines that because of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the total 
quantity of upland cotton that the producers are able to harvest on 
any farm is less than the result of multiplying 75 percent of the 
farm program payment yield established for the farm for such crop 
by the acreage planted for harvest for such crop, the Secretary shall 
make a reduced yield disaster payment to the producers at a rate 
equal to 33 V
a percent of the established price for the crop for the 
deficiency in production below 75 percent for the crop. 
Prohibition. 
"(C) Producers on a farm shall not be eligible for— 
"(i) prevented planting disaster payments under subpara-
graph (A), if prevented planting crop insurance is available to 
the producers under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) with respect to the upland cotton acreage of the 
producers; or 
* 
'*'= I 
"(ii) reduced yield disaster payments under subparagraph (B), 
if reduced yield crop insurance is available to the producers 
under such Act with respect to the upland cotton acreage of the 
producers. 
"(D)(i) Notwithstanding subparagraph (C), the Secretary may 
make a disaster payment to producers on a farm under this subsec-
tion if the Secretary determines that— 
"(I) as the result of drought, flood, or other natural disaster, 
o^r 1- 
! 
or other condition beyond the control of the producers, the 
producers have suffered substantial losses of production either 
from being prevented from planting upland cotton or other 
nonconserving crops or from reduced yields; 
"(II) such losses have created an economic emergency for the 
sJ" 
producers; 
^««ife 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1413 
"(III) crop insurance indemnity payments under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) and other forms of 
assistance made available by the Federal Government to such 
producers for such losses is insufficient to alleviate such eco- 
f
^ au : 
nomic emergency; and 
"(IV) additional assistance must be made available to such 
producers to alleviate such economic emergency. 
"(ii) The Secretary may make such adjustments in the amount of 
payments made available under this paragraph with respect to an 
individual farm so as to assure the equitable allotment of such 
payments among producers, taking into account other forms of 
Federal disaster assistance provided to the producers for the crop 
involved. 
"(d)(1)(A) Except for a crop with respect to which there is an 
acreage limitation program in effect under subsection (f), the Sec-
retary shall proclaim a national program acreage for each of the 
1986 through 1990 crops of upland cotton. The proclamation shall be 
made not later than November 1 of the calendar year preceding the 
year for which such acreage is established, except that in the case of 
the 1986 crop, such announcement shall be made as soon as prac-
ticable after the enactment of the Food Security Act of 1985. 
"(B) The Secretary may revise the national program acreajge first 
proclaimed for any crop year for the purpose of determining the 
allocation factor under paragraph (2) if the Secretaiy determines it 
necessary based on the latest information. The Secretary shall 
proclaim such revised national program acreage as soon as it is 
made. 
"(C) The national program acreage for upland cotton shall be the 
number of harvested acres the Secretary determines (on the basis of 
the weighted national average of the farm program pajmient 5delds 
for the crop for which the determination is made) will produce the 
quantity (less imports) that the Secretary estimates will be utilized 
domestically and for export during the marketing year for such 
crop. 
"(D) The national program acreage shall be subject to such adjust- 
Prohibition. 
ment as the Secretary determines necessary, taking into consider-
ation the estimated carryover supply, so as to provide for an 
adequate but not excessive total supply of upland cotton for the 
marketing year for the crop for which such national program acre-
age is established. In no event shall the national program acreage be 
less than 10 million acres. 
"(2) The Secretary shall determine a program allocation factor for 
each crop of upland cotton. The allocation factor (not to exceed 100 
percent) shall be determined by dividing the national program 
acreage for the crop by the number of acres that the Secretary 
estimates will be harvested for such crop. 
"(3XA) The individual farm program acreage for each crop of 
upland cotton shall be determined by multiplying the allocation 
factor by the acreage of upland cotton planted for harvest on the 
farms for which individual farm program acreages are required to 
be determined. 
"(B) The individual farm program acreage may not be further 
reduced by application of the allocation factor if the producers 
reduce the acreage of upland cotton planted for harvest on the farm 
from the crop acreage base established for the farm under title V by 
7 use 1461. 
at least the percentage recommended by the Secretary in the 
proclamation of the national program acreage. 
99 STAT. 1414 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(C) The Secretary shall provide fair and equitable treatment for 
producers on farms on which the acreage of upland cotton planted 
for harvest is less than the crop acreage base established for the 
7 use 1461. 
farm under title V, but for which the reduction is insufficient to 
exempt the farm from the application of the allocation factor. 
"(D) In establishing the allocation factor for upland cotton, the 
Secretary may make such adjustment as the Secretary deems nec-
essary to take into account the extent of exemption of farms under 
the forgoing provisions of this subsection. 
"(e) The farm program payment yields for farms for each crop of 
upland cotton shall be determined under title V. 
"(fKlXA) Notwithstanding any other provision of this Act, if the 
Secretary determines that the total supply of upland cotton, in the 
absence of an acreage limitation program, will be excessive taking 
into account the need for an adequate carryover to maintain re£ison-
able and stable supplies and prices and to meet a national emer-
gency, the Secretary may provide for any crop of upland cotton an 
acreage limitation program as described in paragraph (2). 
"(B) In making a determination under clause (i), the Secretary 
shall take into consideration the number of acres placed in the 
conservation acreage reserve established under section 1231 of the 
Post, p. 1509. 
Food Security Act of 1985. 
"(C) If the Secretary elects to put an acreage limitation program 
into effect for any crop year, the Secretary shall announce any such 
program not later than November 1 of the calendar year preceding 
the year in which the crop is harvested, except that in the case of 
the 1986 crop, such announcement shall be made as soon as prac-
ticable after the enactment of the Food Security Act of 1985. 
"(D) The Secretary shall, to the maximum extent practicable, 
carry out an acreage limitation program described in paragraph (2) 
for a crop of upland cotton in a manner that will result in a 
carryover of 4 million bales of upland cotton. 
Prohibition. 
"(2)(A) If a upland cotton acreage limitation program is an-
nounced under paragraph (1), such limitation shall be achieved by 
applying a uniform percentage reduction (not to exceed 25 percent) 
to the upland cotton crop acreage base for the crop for each upland 
cotton-producing farm. 
"(B) Except as provided in subsection (g), producers who know-
ingly produce upland cotton in excess of the permitted upland cotton 
acreage for the farm, £is established in accordance with subpara-
graph (A), shall be ineligible for upland cotton loans and payments 
with respect to that farm. 
"(C) Upland cotton crop acreage bases for each crop of upland 
cotton shall be determined under title V. 
Conservation. 
"(DXi) A number of acres on the farm shall be devoted to conserva-
Regulations. 
tion uses, in accordance with regulations issued by the Secretary. 
Such number shall be determined by dividing— 
"(I) the product obtained by multiplying the number of acres 
required to be withdrawn from the production of upland cotton 
times the number of acres planted to such commodity; by 
"(II) the number of acres authorized to be planted to such 
commodity under the limitation established by the Secretary. 
"(ii) The number of acres determined under clause (i) is hereafter 
in this subsection referred to as 'reduced acreage'. 
Prohibition. 
"(E) If an acreage limitation program is announced under para-
graph (1) for a crop of upland cotton, subsection (d) shall not be 
applicable to such crop, including any prior announcement that may 
--^*5||'r 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1415 
have been made under such subsection with respect to such crop. 
Except as provided in subsection (cXlXB), the individual farm pro-
gram acreage shall be the acreage planted on the farm to upland 
cotton for harvest within the permitted upland cotton acreage for 
the farm as established under this paragraph. 
"(3)(A) The regulations issued by the Secretary under paragraph 
(2) with respect to acreage required to be devoted to conservation 
uses shall assure protection of such acreage from weeds and wind 
and water erosion. 
"(B) Subject to subparagraph (C), the Secretary may permit, sub-
ject to such terms and conditions as the Secretary may prescribe, all 
or any part of such acreage to be devoted to sweet sorghum, hay and 
grazing, or the production of guar, sesame, safflower, sunflower, 
castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, or other commodity, if the Secretary determines that 
such production is needed to provide an adequate supply of such 
commodities, is not likely to increeise the cost of the price support 
program, and will not affect farm income adversely. 
"(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. 
590h(b)) 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, in the case of the 1986 crop of upland 
cotton; and 
"(II) grazing, in the case of each of the 1987 through 1990 
crops of upland cotton. 
"(ii) Haying and grazing shall not be permitted for any crop of 
upland cotton under clause (i) 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. 
"(4)(A) The Secretary may make land diversion payments to 
producers of upland cotton, whether or not an acreage limitation 
program for upland cotton is in effect, if the Secretary determines 
that such land diversion payments are necessary to assist in adjust-
ing the total national acreage of upland cotton to desirable goals. 
Such land diversion payments shall be made to producers who, to 
the extent prescribed by the Secretary, devote to approved conserva-
tion uses an acreage of cropland on the farm in accordance with 
land diversion contracts entered into by the Secretary with such 
producers. 
"(B) The amounts payable to producers under land diversion 
contracts may be determined through the submission of bids for 
such contracts by producers in such manner as the Secretary may 
prescribe or through such other means as the Secretary determines 
appropriate. In determining the acceptability of contract offers, the 
Secretary shall take into consideration the extent of the diversion to 
be undertaken by the producers and the productivity of the acreage 
diverted. 
"(C) The Secretary shall limit the total acreage to be diverted 
under agreements in any county or local community so as not to 
affect adversely the economy of the county or local community. 
"(5)(A) The reduced acreage and additional diverted acreage may 
be devoted to wildlife food plots or wildlife habitat in conformity 
Regulations. 
Conservation. 
Prohibition. 
16 u s e 590h. 
Conservation. 
Contracts. 
Contracts. 
Wildlife refuge. 
99 STAT. 1416 
PUBLIC LAW 99-198—DEC. 23, 1985 
Contracts. 
Contracts. 
with standards established by the Secretary in consultation with 
wildlife agencies. 
"(B) The Secretary may pay an appropriate share of the cost of 
practices designed to carry out the purposes of subparagraph (A). 
Regulations. 
"(C) The Secretary may provide for an additional payment on such 
acreage in an amount determined by the Secretary to be appropriate 
in relation to the benefit to the general public if the producer agrees 
to permit, without other compensation, access to all or such portion 
of the farm, as the Secretary may prescribe, by the general public, 
for hunting, trapping, fishing, and hiking, subject to applicable State 
and Federal regulations. 
"(7XA) An operator of a farm desiring to participate in the pro-
gram conducted under this subsection shall execute an agreement 
with the Secretary providing for such participation not later than 
such date as the Secretary may prescribe. 
"(B) The Secretary may, by mutual agreement with producers on 
a farm, terminate or modify any such agreement if the Secretary 
determines such action necessary because of an emergency created 
by drought or other disaster or to prevent or alleviate a shortage in 
the supply of agricultural commodities. 
"(gXl) The Secretary may, for each of the 1986 through 1990 crops 
of upland cotton, make payments available to producers who meet 
the requirements of this subsection. 
"(2) Such pa3mients shall be— 
"(A) made in the form of upland cotton owned by the 
Commodity Credit Corporation; and 
"(B) subject to the availability of such upland cotton. 
"(3XA) Pajmients under this subsection shall be determined in the 
same manner as provided in subsection (b). 
"(B) The quantity of upland cotton to be made available to a 
producer under this subsection shall be equal in value to the pay-
ments so determined under such subsection. 
"(4) A producer shall be eligible to receive a pa)mient under this 
subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan under subsection (a); 
"(B) agrees to forgo receiving payments under subsection (c); 
"(C) does not plant upland cotton for harvest in excess of the 
crop acreage base reduced by one-half of any acreage required 
to be diverted from production under subsection (f); and 
"(D) otherwise complies with this section. 
"(hXl) If the failure of a producer to comply fully with the terms 
and conditions of the program formulated under this section pre-
cludes the making of loans and pa3mients, the Secretary may, 
nevertheless, make such loans and payments in such amounts as the 
Secretary determines are equitable in relation to the seriousness of 
the failure. 
"(2) The Secretary may authorize the county and State commit-
tees established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
deadlines and other program requirements in cases in which late-
ness or failure to meet such other requirements does not affect 
adversely the operation of the program. 
Regulations. 
"(i) The Secretary may issue such regulations as the Secretary 
determines necessary to carry out this section. 
"(j) The Secretary shall carry out the program authorized by this 
section through the C!ommodity Credit Corporation. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1417 
"(k) The provisions of section 8(g) of the Soil Conservation and 
t 
Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment 
of payments) shall apply to payments under this section. 
(1) The Secretary shall provide for the sharing of payments made 
under this section for any farm among the producers on the farm on 
a fair and equitable basis. 
"(m) The Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
"(nXD Notwithstanding any other provision of law, except as 
provided in paragraph (2), compliance on a farm with the terms and 
conditions of any other commodity program may not be required as 
a condition of eligibility for loans or payments under this section. 
"(2) The Secretary may require that, as a condition of eligibility of Prohibition. 
producers on a farm for loans or payments under this section, the 
acreage planted for harvest on the farm to any other commodity for 
which an acreage limitation program is in effect shall not exceed the 
crop acreage base for that commodity. 
"(3) The Secretary may not require producers on a farm, as a Prohibition. 
condition of eligibility for loans or payments under this section for 
such farm, to comply with the terms and conditions of the upland 
cotton program with respect to any other farm operated by such 
producers. 
"(o)(l) Whenever the Secretary determines that the average price President of U.S. 
of Strict Low Middling one and one-sixteenth 
inch cotton Imports. 
(micronaire 3.5 through 4.9) in the designated spot markets for a 
month exceeded 130 percent of the average price of such quality of 
cotton in such markets for the preceding 36 months, notwithstand-
ing any other provision of law, the President shall immediately 
establish and proclaim a special limited global import quota for 
upland cotton subject to the following conditions: 
"(A) The quantity of the special quota shall be equal to 21 
y- days of domestic mill consumption of upland cotton at the 
seasonally adjusted average rate of the most recent 3 months 
for which data are available. 
"(B) If a special quota has been established under this subsec-
tion during the preceding 12 months, the quantity of the quota 
next established hereunder shall be the smaller of 21 days of 
domestic mill consumption calculated as set forth in subpara-
graph (A) or the quantity required to increase the supply to 130 
^ 
percent of the demand. 
; i ; 
li 
"(C) As used in subparagraph (B): 
"(i) The term 'supply' means, using the latest official data 
of the Bureau of the Census, the Department of Agri-
culture, and the Department of the Treasury— 
"(I) the carryover of upland cotton at the beginning 
r 
of the marketing year (adjusted to 480-pound bales) in 
which the special quota is established; plus 
"(II) production of the current crop; plus 
!..-.. 
"(Ill) imports to the latest date available during the 
Imports. 
marketing year. 
; <
r 
"(ii) The term 'demand' means— 
* * v 
'i 
"(I) the average seasonally adjusted annual rate of 
• 
•
" r 
domestic mill consumption in the most recent 3 months 
a 
for which data are available; plus 
"(II) the larger of— 
"(aa) average exports of upland cotton during the 
preceding 6 marketing years; or 
99 STAT. 1418 
PUBLIC LAW 99-198—DEC. 23, 1985 
Exports. 
"(bb) cumulative exports of upland cotton plus 
outstanding export sales for the marketing year in 
which the special quota is established. 
"(D) When a special quota is established under this subsec-
tion, cotton may be entered under such quota during the 90-day 
period beginning on the effective date of the proclamation. 
"(2) Notwithstanding paragraph (1), a special quota period may 
not be established that overlaps an existing quota period.". 
SUSPENSION OF BASE ACREAGE ALLOTMENTS, MARKETING QUOTAS, AND 
RELATED PROVISIONS 
; 
Prohibition. 
SEC. 502. Sections 342, 343, 344, 345, 346, and 377 of the Agricul-
^«f| P 818. 
tural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not 
' ^^ ^^^^ "°*^ be applicable to any of the 1986 through 1990 crops of upland cotton. 
COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS 
SEC. 503. Effective only with respect to the period beginning 
August 1, 1978, and ending July 31, 1991, the tenth sentence of 
section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) is amend-
ed by striking out all of that sentence through the words "110 per 
centum of the loan rate, and (2)" and inserting in lieu thereof the 
following: "Notwithstanding any other provision of law, (1) the 
Commodity Credit Corporation shall sell upland cotton for unre-
stricted use at the same prices as it sells upland cotton for export, in 
no event, however, at less than (A) 115 percent of the loan rate for 
Strict Low Middling one and one-sixteenth inch upland cotton 
(micronaire 3.5 through 4.9) adjusted for such current market dif-
ferentials reflecting grade, quality, location, and other value factors 
as the Secretary determines appropriate plus reasonable carrjdng 
charges, or (B) if the Secretary permits the repa3mient of loans made 
for a crop of cotton at a rate that is less than the loan level 
determined for such crop, 115 percent of the average loan repay-
ment rate that is determined for such crop during the period of such 
loans, and (2)". 
MISCELLANEOUS COTTON PROVISIONS 
SEC. 504. Sections 103(a) and 203 of the Agricultural Act of 1949 (7 
U.S.C. 1444(a) and 1446d) shall not be applicable to the 1986 through 
1990 crops. 
5 ^ 
SKIPROW PRACTICES 
SEC. 505. Section 374(a) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1374(a)) is amended by striking out "1985" and 
inserting in lieu thereof "1990". 
Prohibition. 
7 u s e 1446d 
note. 
P R E U M I N A R Y ALLOTMENTS FOR 1991 CROP OF UPLAND COTTON 
7 use 1342 note. 
SEC. 506. Notwithstanding any other provision of law, the perma-
nent State, county, and farm base acreeige gdlotments for the 1977 
crop of upland cotton, adjusted for any underplantings in 1977 and 
reconstituted as provided in section 379 of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1379), shall be the preliminary allotments 
for the 1991 crop. 
'^•"ff^ 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1419 
-*IC)?!i 
*o r 
EXTRA LONG STAPLE COTTON 
, 
SEC. 507. Section 103(h) of the Agricultural Act of 1949 (7 U.S.C. 
1444(h)) is amended— 
Ante, p. 488. 
(1) in paragraph (2)— 
(A) in the first sentence, by striking out "50 per centum 
in excess of the loan level established for each crop of Strict 
Low Middling one ^nd one-sixteenth inch upland cotton 
(micronaire 3.5 through 4.9) at average location in the 
United States" and inserting in lieu thereof "85 percent of 
the simple average price received by producers of extra long 
, . 
staple cotton, as determined by the Secretary, during 3 
years of the 5-year period ending July 31 in the year in 
which the loan level is announced, excluding the year in 
which the average price was the highest and the year in 
which the average price was the lowest in such period."; 
(B) by striking out "November" in the last sentence and 
inserting in lieu thereof "December"; and 
_
.
_ 
(C) by striking out in the last sentence ", or within 10 
J„;:j 
days after the loan level for the related crop of upland 
' " 
cotton is announced, whichever is later,"; and 
(2) by adding at the end thereof the following new paragraph: 
"(19) Notwithstanding any other provision of law, this subsec- Prohibition, 
tion shall not be applicable to the 1991 and subsequent crops of 
extra long staple cotton.". 
TITLE VI—RICE 
LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE LIMITA-
TION PROGRAM, AND LAND DIVERSION FOR THE 1986 THROUGH 1990 
CROPS OF RICE 
SEC. 601. Effective only for the 1986 through 1990 crops of rice, the 
Agricultural Act of 1949 is amended by inserting after section 101 (7 
U.S.C. 1441) the following new section: 
"SEC. lOlA. Notwithstanding any other provision of law: 
7 USC 1441-1. 
"(a)(1) Except as provided in paragraph (2), the Secretary shall 
make available to producers loans and purchases for each of the 
1986 through 1990 crops of rice at a level that is not less than— 
"(A) in the case of the 1986 crop of rice, $7.20 per hundred-
weight; and 
"(B) in the case of each of the 1987 through 1990 crops of rice, 
the higher of— 
"(i) 85 percent of the simple average price received by 
producers, as determined by the Secretary, during the 
marketing years for the immediately preceding 5 crops of 
rice, excluding the year in which the average price was the 
highest and the year in which the average price was the 
lowest in such period; or 
"(ii) $6.50 per hundredweight. 
"(2) The loan level for a crop of rice determined under paragraph 
(IXB) may not be reduced by more than 5 percent from the loan level 
determined for the preceding crop. 
"(3) The loan and purchase level and the established price for each 
of the 1986 through 1990 crops of rice shall be announced not later 
than January 31 of each calendar year for the crop harvested in 
such calendar year. 
99 STAT. 1420 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(4) A loan made under this section shall have a term of not more 
than 9 months beginning after the month in which the application 
for the loan is made. 
"(5)(A) The Secretary shall permit a producer to repay a loan 
made under paragraph (1) for a crop at a level that is the lesser of— 
"(i) the loan level determined for such crop; or 
"(ii) the higher of— 
"(I) the loan level determined for such crop multiplied by 
50 percent for each of the 1986 and 1987 crops, 60 percent 
for the 1988 crop, and 70 percent for each of the 1989 and 
1990 crops; or 
"(II) the prevailing world market price for rice, as deter-
mined by the Secretary. 
Regulations. 
"(B) The Secretary shall prescribe by regulation— 
"(i) a formula to define the prevailing world market price for 
rice; and 
"(ii) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for rice. 
"(CXi) As a condition of permitting a producer to repay a loan as 
provided in subparagraph (A), the Secretary may require a producer 
to purchase marketing certificates equal in value to an amount that 
does not exceed one-half the difference, as determined by the Sec-
retary, between the amount of the loan obtained by the producer 
and the amount of the loan repayment. Such certificates shall be 
negotiable. 
"(ii) Such certificates shall be redeemable for rice owned by the 
Commodity Credit Corporation valued at the prevailing market 
price, as determined by the Secretary. If such rice is not available in 
the State in which the rice pledged as collateral for the loan was 
produced or at such other location outside of such State as may be 
approved by the owner of such certificate, such certificate shall be 
redeemable in cash. 
Regulations. 
"(iii) The Commodity Credit Corporation, under regulations pre-
scribed by the Secretary, shall assist any person receiving market-
ing certificates under this subparagraph in the redemption or 
marketing of such certificates. Insofar as practicable, the Secretary 
shall permit an owner of a certificate to designate the storage 
facility at which such owner would prefer to receive rice in ex-
change for such certificate. 
"(iv) If any such certificate is not presented for redemption or 
marketing within a reasonable number of days after issuance, as 
determined by the Secretary, reasonable costs of storage and other 
carrying charges, as determined by the Secretary, shall be deducted 
from the value of the certificate for the period beginning after such 
reasonable number of days and ending with the date of the presen-
tation of such certificate to the Commodity Credit Corporation. 
"(6) For purposes of this section, the simple average price received 
by producers for the immediately preceding marketing year shall be 
based on the latest information available to the Secretary at the 
time of the determination. 
Contracts. 
"(bXD The Secretary may, for each of the 1986 through 1990 crops 
of rice, make payments available to producers who, although eligible 
to obtain a loan or purchase agreement under subsection (a), agree 
to forgo obtaining such loan or agreement in return for such pay-
ments. 
"(2) A payment under this subsection shall be computed by 
multiplying— 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1421 
« 
"(A) the loan pajonent rate; by 
"(B) the quantity of rice the producer is eligible to place under 
loan. 
"(3) For purposes of this subsection, the quantity of rice eligible to 
be placed under loan may not exceed the product obtained by 
multiplying— 
"(A) the individual farm program acreage for the crop; by 
"(B) the farm program payment jdeld established for the 
farm. 
"(4) For purposes of this subsection, the loan pajrment rate shall 
be the amount by which— 
"(A) the loan level determined for such crop under subsection 
(a); exceeds 
"(B) the level at which a loan may be repgiid under sub-
section (a). 
"(5) The Secretary shall make up to one-half the amount of a 
payment under this subsection available in the form of negotiable 
marketing certificates, subject to the terms and conditions provided 
in subsection (aXSXC). 
"(cXlXA) The Secretary shall make available to producers pay-
ments for each of the 1986 through 1990 crops of rice in an amount 
computed by multiplying— 
"(i) the payment rate; by 
"(ii) the individual farm program acreage; by 
"(iii) the farm program pa3mient yield established for the crop 
for the farm. 
"(BXi) If an acreage limitation program under subsection (fK2) is 
in effect for a crop of rice and the producers on a farm devote a 
portion of the permitted rice acreage of the farm (as determined in 
accordance with subsection (fK2XA)) equal to more than 8 percent of 
the permitted rice acreage of the farm for the crop to conservation 
uses or nonprogram crops— 
"(I) such portion of the permitted rice acreage in excess of 8 
percent of such acreage devoted to conservation uses or 
nonprogram crops shall be considered to be planted to rice for 
the purpose of determining the individual farm program acre-
age in accordance with subsection (fK2XE) and for the purpose of 
determining the acreage on the farm required to be devoted to 
conservation uses in accordance with subsection (fK2XD); and 
"(II) the producers shall be eligible for pajmients under this 
paragraph on such acreage, subject to the compliance of the 
producers with clause (ii). 
"(ii) To be eligible for payments under clause (i), except as pro-
vided in clause (iii), the producers on the farm must actually plant 
rice for harvest on at least 50 percent of the permitted rice acreage 
of the farm. 
"(iii) If a State or local agency has imposed in an area of a State or 
county a quarantine on the planting of rice for harvest on farms in 
such area, the State committee established under section 8(b) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) 
may recommend to the Secretary that pajrments be made under this 
paragraph, without regard to the requirement imposed under clause 
(ii), to producers in such area who were required to forgo the 
planting of rice for harvest on acreage to alleviate or eliminate the 
condition requiring such quarantine. If the Secretary determines 
that such condition exists, the Secretary may make pajrments under 
this paragraph to such producers. To be eligible for payments under 
Prohibition. 
Conservation. 
99 STAT. 1422 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
Conservation. 
Prohibition. 
Conservation. 
Prohibition. 
Prohibition. 
this clause, such producers may not plant wheat, feed grains, cotton, 
or soybeans on such acreage. 
"(iv) The rice crop acreage base and rice farm program payment 
yield of the farm shall not be reduced due to the fact that such 
portion of the permitted acreage of the farm was devoted to conserv-
ing uses or nonprogram crops. 
"(v) Other than as provided in clauses (i) through (iv), payments 
may not be made under this subsection for any crop on a greater 
acreage than the acreage actually planted to rice. 
"(vi) Any acreage considered to be planted to rice in accordance 
with clause (i) may not also be designated as conservation use 
acreage for the purpose of fulfilling any provisions under any 
acreage limitation or land diversion program requiring that the 
producers devote a specified acreage to conservation uses. 
"(C) The payment rate for rice shall be the amount by which the 
established price for the crop of rice exceeds the higher of— 
"(i) the national average market price received by producers 
during the first 5 months of the marketing year for such crop, 
as determined by the Secretary; or 
"(ii) the loan level determined for such crop. 
"(D) The established price for rice shall not be less than $11.90 per 
hundredweight for the 1986 crop, $11.66 per hundredweight for the 
1987 crop, $11.30 per hundredweight for the 1988 crop, $10.95 per 
hundredweight for the 1989 crop, and $10.71 per hundredweight for 
the 1990 crop. 
"(E) The total quantity of rice on which payments would otherwise 
be payable to a producer on a farm for any crop under this subsec-
tion shall be reduced by the quantity on which any disaster payment 
is made to the producer for the crop under paragraph (2). 
"(F) The Secretary may pay not more than 5 percent of the total 
amount of a payment made under this paragraph in the form of rice. 
The use of rice in making payments to producers shall be subject to 
a determination by the Secretary of the effect that such in-kind 
payments will have on market prices for any commodity. The 
Secretary shall report such determination to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. 
"(G) As used in this subsection, the term 'nonprogram crop' means 
any agricultural commodity other than wheat, feed grains, upland 
cotton, extra long staple cotton, rice, or soybeans. 
"(2)(A)(i) Except as provided in subparagraph (C), if the Secretary 
determines that the producers on a farm are prevented from plant-
ing any portion of the acreage intended for rice to rice or other 
nonconserving crops because of drought, flood, or other natural 
disaster, or other condition beyond the control of the producers, the 
Secretary shall make a prevented planting disaster payment to the 
producers in an amount equal to the product obtained by 
multiplying— 
"(I) the number of acres so affected but not to exceed the 
acreage planted to rice for harvest (including any acreage that 
the producers were prevented from planting to rice or other 
nonconserving crops in lieu of rice because of drought, flood, or 
other natural disaster, or other condition beyond the control of 
the producers) in the immediately preceding year; by 
"(II) 75 percent of the farm program payment yield estab-
lished for the farm by the Secretary; by 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1423 
"(HI) a payment rate equal to 33 Vz percent of the established 
price for the crop, 
"(ii) Payments made by the Secretary under this subparagraph 
may be made in the form of cash or from stocks of rice held by the 
Commodity Credit Corporation. 
"(B) Except as provided in subparagraph (C), if the Secretary 
determines that because of drought, flood, or other natural disaster, 
or other condition beyond the control of the producers, the total 
quantity of rice that the producers are able to harvest on any farm 
is less than the result of multiplying 75 percent of the farm program 
payment yield established for the farm for such crop by the acreage 
planted for harvest for such crop, the Secretary shall make a 
reduced yield disaster pajmient to the producers at a rate equal to 
33 V
a percent of the established price for the crop for the deficiency 
in production below 75 percent for the crop. 
"(C) Producers on a farm shall not be eligible for— 
Prohibition, 
"(i) prevented planting disaster payments under subpara-
graph (A), if prevented planting crop insurance is available to 
the producers under the Federal Crop Insurance Act (7 U.S.C. 
1501 et seq.) with respect to the rice acreage of the producers; or 
"(ii) reduced 3deld disaster pa3anents under subparagraph (B), 
if reduced yield crop insurance is available to the producers 
under such Act with respect to the rice acreage of the 
producers. 
"(DXi) Notwithstanding subparagraph (C), the Secretary may 
make a disaster payment to producers on a farm under this subsec-
tion if the Secretary determines that— 
"(I) as the result of drought, flood, or other natural diseister, 
or other condition beyond the control of the producers, the 
producers have suffered substantial losses of production either 
from being prevented from planting rice or other nonconserving 
crops or from reduced yields; 
"(II) such losses have created an economic emergency for the 
producers; 
"(III) crop insurance indemnity pa3niients under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) and other forms of 
assistance made available by the Federal Grovemment to such 
producers for such losses is insufficient to alleviate such eco-
nomic emergency; and 
"(IV) additional assistance must be made available to such 
producers to alleviate such economic emergency, 
"(ii) The Secretary may make such adjustments in the amount of 
payments made available under this paragraph with respect to an 
individual farm so as to assure the equitable allotment of such 
payments among producers, taking into account other forms of 
Federal disaster assistance provided to the producers for the crop 
involved. 
"(dXlXA) Except for a crop with respect to which there is an 
acreage limitation program in effect under subsection (f), the Sec-
retary shall proclaim a national program acreage for each of the 
1986 through 1990 crops of rice. The proclamation shall be made not 
later than January 31 of each calendar year for the crop harvested 
in that calendar year. 
"(B) The Secretary may revise the national progrsim acreage first 
proclaimed for any crop year for the purpose of determining the 
allocation factor under paragraph (2) if the Secreta^ determines it 
necessary based on the latest information. The Secretary shall 
99 STAT. 1424 
PUBLIC LAW 99-198—DEC. 23, 1985 
proclaim such revised national program acreage as soon as it is 
made. 
"(C) The national program acreage for rice shall be the number of 
harvested acres the Secretary determines (on the basis of the 
weighted national average of the farm program payment yields for 
the crop for which the determination is made) will produce the 
quantity (less imports) that the Secretary estimates will be utilized 
domestically and for export during the marketing year for such 
crop. 
"(D) If the Secretary determines that carryover stocks of rice are 
excessive or an increase in stocks is needed to assure desirable 
carryover, the Secretary may adjust the national program acreage 
by the quantity the Secretary determines will accomplish the de-
sired increase or decrease in carryover stocks. 
"(2) The Secretary shall determine a program allocation factor for 
each crop of rice. The allocation factor for rice shall be determined 
by dividing the national program acreage for the crop by the 
number of acres that the Secretary estimates will be harvested for 
such crop. In no event may the allocation factor for any crop of rice 
be more than 100 percent nor less than 80 percent. 
"(3)(A) The individual farm program acreage for each crop of rice 
shall be determined by multiplying the allocation factor by the 
acreage of rice planted for harvest on the farms for which individual 
farm program acreages are required to be determined. 
Prohibition. 
"(B) The individual farm program acreage may not be further 
reduced by application of the allocation factor if the producers 
reduce the acreage of rice planted for harvest on the farm from the 
7 use 1461. 
crop acreage base established for the farm under title V by at least 
the percentage recommended by the Secretary in the proclamation 
of the national program acreage. 
"(C) The Secretary shall provide fair and equitable treatment for 
producers on farms on which the acreage of rice planted for harvest 
is less than the crop acreage base established for the farm under 
title V, but for which the reduction is insufficient to exempt the 
farm from the application of the allocation factor. 
"(D) In establishing the allocation factor for rice, the Secretary 
may make such adjustment as the Secretary deems necessary to 
take into account the extent of exemption of farms under the 
foregoing provisions of this subsection. 
"(e) The farm program payment yields for farms for each crop of 
rice shall be determined under title V. 
"(fKlXA) Notwithstanding any other provision of this Act, if the 
Secretary determines that the total supply of rice, in the absence of 
an acreage limitation program, will be excessive taking into account 
the need for an adequate carryover to maintain reasonable and 
stable supplies and prices and to meet a national emergency, the 
Secretary may provide for any crop of rice an acreage limitation 
program as described in paragraph (2). 
"(B) In making a determination under clause (i), the Secretary 
shall take into consideration the number of acres placed in the 
conservation acreage reserve established under section 1231 of the 
Post, p. 1509. 
Food Security Act of 1985. 
"(C) If the Secretary elects to put an acreage limitation program 
into effect for any crop year, the Secretary shall announce any such 
program not later than January 31 of the calendar year in which 
the crop is harvested. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1425 
"(D) The Secretary shall, to the maximum extent practicable, 
carry out an acreage limitation program described in paragraph (2) 
for a crop of rice in a manner that will result in a carryover of 30 
million hundredweight of rice. 
"(2XA) If a rice acreage limitation program is announced under 
pargigraph (1), such limitation shall be achieved by appljang a 
uniform percentage reduction (not to exceed 35 percent) to the rice 
crop acreage base for the crop for each rice-producing farm. 
"(B) Except as provided in subsection (g), producers who know-
ingly produce rice in excess of the permitted rice acreage for the 
farm, as established in accordance with subparagraph (A), shall be 
ineligible for rice loans, purchases, and payments with respect to 
that farm. 
"(C) Rice crop acreage bases for each crop of rice shall be deter-
mined under title V. 
"(DXi) A number of acres on the farm shall be devoted to conserva-
tion uses, in accordance with regulations issued by the Secretary. 
Such number shall be determined by dividing— 
"(I) the product obtained by multiplying the number of acres 
required to be withdrawn from the production of rice times the 
number of acres planted to such commodity; by 
"(II) the number of acres authorized to be planted to such 
commodity under the limitation established by the Secretary. 
"(ii) The number of acres determined under clause (i) is hereafter 
in this subsection referred to as 'reduced acreage'. 
"(E) If an acreage limitation program is announced under para-
graph (1) for a crop of rice, subsection (d) shall not be applicable to 
such crop, including any prior announcement that may have been 
made under such subsection with respect to such crop. Except as 
provided in subsection (cXlXB), the individual farm program acreage 
shall be the acreage planted on the farm to rice for harvest within 
the permitted rice acreage for the farm as established under this 
paragraph. 
"(3XA) The regulations issued by the Secretary ulider paragraph 
(2) with respect to acreage required to be devoted to conservation 
uses shall assure protection of such acreage from weeds and wind 
and water erosion. 
"(B) Subject to subparagraph (C), the Secretary may permit, sub-
ject to such terms and conditions as the Secretary may prescribe, all 
or any part of such acreage to be devoted to sweet sorghum, hay and 
grazing, or the production of guar, sesame, safflower, sunflower, 
castor beans, mustard seed, crambe, plantago ovato, flaxseed, 
triticale, rye, or other commodity, if the Secretary determines that 
such production is needed to provide an adequate supply of such 
commodities, is not likely to increase the cost of the price support 
program, and will not affect farm income adversely. 
"(CXi) 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. 
590h(b)) 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, in the case of the 1986 crop of rice; and 
"(II) grazing, in the case of each of the 1987 through 1990 
crops of rice. 
:u'. 
7 use 1461. 
Conservation. 
Regulations. 
Prohibition. 
Regulations. 
Conservation. 
99 STAT. 1426 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
16 use 590h. 
Conservation. 
Contracts. 
Contracts. 
Wildlife refuge. 
Regulations. 
"(ii) Haying and grazing shall not be permitted for any crop of rice 
under clause (i) during any 5-consecutive-month period that is estab-
lished for such crop for a State by the State committee established 
under section 8(b) of such Act. 
"(4XA) The Secretary may make land diversion payments to 
producers of rice, whether or not an acreage limitation program for 
rice is in effect, if the Secretary determines that such land diversion 
payments are necessary to assist in adjusting the total national 
acreage of rice to desirable goals. Such land diversion payments 
shall be made to producers who, to the extent prescribed by the 
Secretary, devote to approved conservation uses an acreage of crop-
land on the farm in accordance with land diversion contracts en-
tered into by the Secretary with such producers. 
"(B) The amounts payable to producers under land diversion 
contracts may be determined through the submission of bids for 
such contracts by producers in such manner as the Secretary may 
prescribe or through such other means as the Secretary determines 
appropriate. In determining the acceptability 6f contract offers, the 
Secretary shall take into consideration the extent of the diversion to 
be undertaken by the producers and the productivity of the acreage 
diverted. 
"(C) The Secretary shall limit the total acreage to be diverted 
under agreements in any county or local community so as not to 
affect adversely the economy of the county or local community. 
"(5)(A) The reduced acreage and additional diverted acreage may 
be devoted to wildlife food plots or wildlife habitat in conformity 
with standards established by the Secretary in consultation with 
wildlife agencies. 
"(B) The Secretary may pay an appropriate share of the cost of 
practices designed to carry out the purposes of subparagraph (A). 
"(C) The Secretary may provide for an additional payment on such 
acreage in an amount determined by the Secretary to be appropriate 
in relation to the benefit to the general public if the producer agrees 
to permit, without other compensation, access to all or such portion 
of the farm, as the Secretary may prescribe, by the general public, 
for hunting, trapping, fishing, and hiking, subject to applicable State 
and Federal regulations. 
"(7)(A) An operator of a farm desiring to participate in the pro-
gram conducted under this subsection shall execute an agreement 
with the Secretary providing for such participation not later than 
such date as the Secretary may prescribe. 
"(B) The Secretary may, by mutual agreement with producers on 
a farm, terminate or modify any such agreement if the Secretary 
determines such action necessary because of an emergency created 
by drought or other disaster or to prevent or alleviate a shortage in 
the supply of agricultural commodities. 
"(g)(1) The Secretary may, for each of the 1986 through 1990 crops 
of rice, make payments available to producers who meet the require-
ments of this subsection. 
"(2) Such payments shall be— 
"(A) made in the form of rice owned by the Commodity Credit 
Corporation; and 
"(B) subject to the availability of such rice. 
"(3)(A) Payments under this subsection shall be determined in the 
same manner as provided in subsection (b). 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1427 
"(B) The quantity of rice to be made available to a producer under 
this subsection shall be equal in value to the payments so deter-
mined under such subsection. 
"(4) A producer shall be eligible to receive a payment under this 
subsection for a crop if the producer— 
"(A) agrees to forgo obtaining a loan or purchase agreement 
under subsection (a); 
"(B) agrees to forgo receiving payments under subsection (c); 
"(C) does not plant rice for harvest in excess of the crop 
acreage base reduced by one-half of any acreage required to be 
diverted from production under subsection (f); and 
"(D) otherwise complies with this section. 
"(h)(1) If the failure of a producer to comply fully with the terms 
and conditions of the program formulated under this section pre-
cludes the making of loans, purchases, and payments, the Secretary 
may, nevertheless, make such loans, purchases, and payments in 
such amounts as the Secretary determines are equitable in relation 
to the seriousness of the failure. 
"(2) The Secretary may authorize the county and State commit-
tees established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify 
deadlines and other program requirements in cases in which late-
ness or failure to meet such other requirements does not affect 
adversely the operation of the program. 
"(i) The Secretary may issue such regulations as the Secretary 
determines necessary to carry out this section. 
"(j) The Secretary shall carry out the program authorized by this 
section through the Commodity Credit Corporation. 
"(k) The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment 
of payments) shall apply to payments under this section. 
'(1) The Secretary shall provide for the sharing of payments made 
under this section for any farm among the producers on the farm on 
a fair and equitable basis. 
"(m) The Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
"(n)(l) Notwithstanding any other provision of law, except as 
provided in paragraph (2), compliance on a farm with the terms and 
conditions of any other commodity program may not be required as 
a condition of eligibility for loans, purchases, or payments under 
this section. 
"(2) The Secretary may require that, as a condition of eligibility of 
producers on a farm for loans, purchases, or payments under this 
section, the acreage planted for harvest on the farm to any other 
commodity for which an acreage limitation program is in effect shall 
not exceed the crop acreage base established for the farm for that 
commodity. 
"(3) The Secretary may not require producers on a farm, as a 
condition of eligibility for loans, purchases, or payments under this 
section for such farm, to comply with the terms and conditions of 
the rice program with respect to any other farm operated by such 
producers.". 
Regulations. 
Prohibition. 
Prohibition. 
MARKETING LOAN FOR THE 1985 CROP OF RICE 
SEC. 602. Effective for the 1985 crop of rice, section 101(i)(l) of the 
Agricultural Act of 1949 (7 U.S.C. 1441(i)(l)) is amended— 
99 STAT. 1428 
PUBLIC LAW 99-198—DEC. 23, 1985 
(1) by inserting "(A)" after the paragraph designation; and 
(2) by adding at the end thereof the following new sub-
paragraphs: 
"(BXi) Beginning April 15, 1986, the Secretary shall permit an 
eligible producer to repay a loan made under subparagraph (A) with 
respect to the 1985 crop at a level that is the lesser of— 
"(I) the loan level determined for such crop; or 
"(II) the prevailing world market price for rice, as determined 
by the Secretary. 
Regulations. 
"(ii) The Secretary shall prescribe by regulation— 
"(I) a formula to define the prevailing world market price for 
rice; and 
"(II) a mechanism by which the Secretary shall announce 
periodically the prevailing world market price for rice, 
"(iii) To be eligible to repay a loan in accordance with clause (i), a 
producer must have a loan made under subparagraph (A) outstand-
ing on April 15,1986. 
"(iv) A loan made under this subsection shall have a term of not 
more than 9 months beginning after the month in which the ap-
plication for the loan is made. The Secretary may extend the 
maturity date of loans made for the 1985 crop of rice as necessary to 
permit the orderly marketing of such rice. 
"(v) As a condition to permitting a producer to repay a loan as 
provided in this subparagraph, the Secretary may require a pro-
ducer to purchase negotiable marketing certificates equal in value 
to an amount that does not exceed the difference, as determined by 
the Secretary, between the amount of the loan obtained by the 
producer and the amount of the loan repajmaent. Such certificates 
shall be negotiable. 
"(vi) Such certificates shall be redeemable for rice owned by the 
Commodity Credit Corporation valued at the prevailing market 
price, as determined by the Secretary. If such rice is not available in 
the State in which the rice pledged as collateral for the loan was 
produced or at such other location outside of such State as may be 
approved by the owner of such certificate, such certificate shall be 
redeemable in cash. 
Regulations. 
"(vii) The Commodity Credit Corporation, under regulations pre-
scribed by the Secretary, shall assist any person receiving market-
ing certificates under this subparagraph in the redemption or 
marketing of such certificates. Insofar as practicable, the Secretary 
shall permit an owner of a certificate to designate the storage 
facility at which such owner would prefer to receive rice in ex-
change for such certificate. 
"(viii) If any such certificate is not presented for redemption or 
marketing within a reasonable number of days after issuance, as 
determined by the Secretary, reasonable costs of storage and other 
carrying charges, as determined by the Secretary, shall be deducted 
from the value of the certificate for the period beginning after such 
reasonable number of days and ending with the date of the presen-
tation of such certificate to the Commodity Credit Corporation. 
"(CXi) Beginning April 15, 1986, the Secretary shall, for the 1985 
crop of rice, make payments available to— 
Contracts. 
"(I) producers who have produced rice, and although eligible 
to obtain a loan or purchase agreement under this subsection 
did not obtain such loan or agreement, and have not sold or 
delivered such rice under a sales contract; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1429 
"(ID producers who have produced rice that is not eligible to Contracts. 
be placed under loan and have not sold or delivered such rice 
under a sales contract, 
"(ii) A payment under this subparagraph shall be computed by 
multipl3dng— 
"(I) the loan payment rate; by 
"(II) the quantity of rice the producer has not sold or deliv- Contracts. 
ered under a sales contract, 
"(iii) For purposes of this subparagraph, the loan payment rate 
shall be the amount by which— 
"(I) the loan level determined for the 1985 crop; exceeds 
"(II) the level at which a loan may be repaid under subpara-
graph (B). 
"(iv) The Secretary may make all or part of a payment under this 
subparagraph in the form of negotiable marketing certificates, sub-
ject to the terms and conditions provided in subparagraph (B). 
"(D) The pa)mient limitation provided in section 1101 of the 
Prohibition. 
Agriculture and Food Act of 1981 (7 U.S.C. 1308) shall not apply to— 
"(i) any gain realized by a producer from repa3dng a loan for 
the 1985 crop of rice at the rate permitted under subparagraph 
(B); or 
"(ii) any payment received for a crop of rice under subpara-
graph (C).". 
MARKETING CERTIFICATES 
SEC. 603. (a) Notwithstanding any other provision of law, when- 
7 use I44i-ia. 
ever, during the period beginning August 1, 1986, and ending 
July 31, 1991, the world price for a class of rice (adjusted to United 
States qualities and location), as determined by the Secretary of 
Agriculture, is below the current loan repayment rate for that class 
of rice, to make United States rice competitive in world markets and 
, 
to maintain and expand exports of rice produced in the United States, 
the Commodity Credit Corporation, under such regulations as the 
Secretary may prescribe, shall make payments, through the issu-
ance of negotiable marketing certificates, to persons who have 
entered into an agreement with the Commodity Credit Corporation 
to participate in the program established under this section. Such 
payments shall be made in such monetary amounts and subject to 
, 
such terms and conditions as the Secretary determines will make 
rice produced in the United States available at competitive prices 
consistent with the purposes of this section, including such pay-
ments as may be necessary to make rice in inventory on August 1, 
-. 
1986, available on the same basis. 
(b) The value of each certificate issued under subsection (a) shall 
be based on the difference between— 
(1) the loan repayment rate for the class of rice; and 
(2) the prevailing world market price for the class of rice, as 
determined by the Secretary of Agriculture under a published 
f 
formula submitted for public comment before its adoption. 
(c) The Commodity Credit Corporation, under regulations pre- Regulations. 
scribed by the Secretary of Agriculture, may assist any person 
receiving marketing certificates under this section in the redemp-
tion of certificates for cash, or marketing or exchange of such 
certificates for (1) rice owned by the Commodity Credit Corporation 
or (2) (if the Secretary and tne person agree) other agricultural 
commodities or the products thereof owned by the Commodity 
Credit Corporation, at such times, in such manner, and at such price 
99 STAT. 1430 
PUBLIC LAW 99-198—DEC. 23, 1985 
levels as the Secretary determines will best effectuate the purposes 
Prohibition. 
of the program established under this section. Notwithstanding any 
other provision of law, any price restrictions that may otherwise 
apply to the disposition of agricultural commodities by the Commod-
ity Credit Corporation shall not apply to the redemption of certifi-
cates under this section. 
(d) Insofar as practicable, the Secretary shall permit owners of 
certificates to designate the commodities and the products thereof, 
including storage sites thereof, such owners would prefer to receive 
in exchange for certificates. If any certificate is not presented for 
redemption, marketing, or exchange within a reasonable number of 
days after the issuance of such certificate (as determined by the 
Secretary), reasonable costs of storage and other carrying charges, 
as determined by the Secretary, shall be deducted from the value of 
the certificate for the period beginning after such reasonable 
number of days and ending with the date of the presentation of such 
certificate to the Commodity Credit Corporation. 
(e) The Secretary of Agriculture shall take such measures as may 
be necessary to prevent the marketing or exchange of agricultural 
commodities and the products thereof for certificates under this 
section from adversely affecting the income of producers of such 
commodities or products. 
Regulations. 
(f) Under regulations prescribed by the Secretary of Agriculture, 
certificates issued to rice exporters under this section may be trans-
ferred to other exporters and persons approved by the Secretary. 
TITLE VII—PEANUTS 
SUSPENSION OF MARKETING QUOTAS AND ACREAGE ALLOTMENTS 
Prohibition. 
SEC. 701. The following provisions of the Agricultural Adjustment 
Act of 1938 shall not be applicable to the 1986 through 1990 crops of 
peanuts: 
Ante, p. 818. 
(1) Subsections (a) through 0') of section 358 (7 U.S.C. 1358(a)-
7 u s e 1358 note. 
(j)). 
7USCl358a 
(2) Subsections (a) through (h) of section 358a (7 U.S.C. 
note. 
1358a(a)-(h)). 
7 use 1359 note. 
(3) Subsections (a), (b), (d), and (e) of section 359 (7 U.S.C. 1359 
(a),(b),(d),(e)). 
7 use note prec. 
(4) Part I of Subtitle C of title III (7 U.S.C. 1361 et seq.). 
1361. 
(5) Section 371 (7 U.S.C. 13711 
7 u s e 1371 note. 
NATIONAL POUNDAGE QUOTA AND FARM POUNDAGE QUOTA 
Prohibition. 
SEC. 702. Effective only for the 1986 through 1990 crops of pea-
nuts, section 358 of the Agricultural Adjustment Act of 1938 (7 
Ante, p. 818. 
U.S.C. 1358) is amended by adding at the end thereof the following: 
"(q)(l) The national poundage quota for peanuts for each of the 
1986 through 1990 marketing years shall be established by the 
Secretary at a level that is equal to the quantity of peanuts (in tons) 
that the Secretary estimates will be devoted in each such marketing 
year to domestic edible, seed, and related uses, except that the 
national poundage quota for any such marketing year shall not be 
less than 1,100,000 tons. 
"(2) The national poundage quota for a marketing year shall be 
announced by the Secretary not later than December 15 preceding 
such marketing year. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1431 
"(r) The national poundage quota established under subsection (q) 
shall be apportioned among the States so that the poundage quota 
allocated to each State shall be equal to the percentage of the 
national poundage quota allocated to farms in the State for 1985. 
i «><! 
"(sXlXA) A farm poundage quota for each of the 1986 through 
1990 marketing years shall be established— 
"(i) for each farm that had a farm poundage quota for peanuts 
for the 1985 marketing year; and 
"(ii) if the poundage quota apportioned to a State under 
subsection (r) for any such marketing year is larger than such 
quota for the immediately preceding marketing year, for each 
other farm on which peanuts were produced for marketing in at 
least 2 of the 3 immediately preceding crop years, as determined 
by the Secretary. 
"(B) The farm poundage quota for each of the 1986 through 1990 
marketing years for each farm described in subparagraph (AXi) of 
the preceding sentence shall be the same as the farm poundage 
quota for such farm for the immediately preceding marketing year, 
as adjusted under paragraph (2), but not including— 
"(i) any increases for undermarketings from previous years; 
or 
"(ii) any increases resulting from the allocation of quotas 
voluntarily released for 1 year under paragraph (7). 
The farm poundage quota, if any, for each of the 1986 through 1990 
marketing years for each farm described in subparagraph (AXii) 
shall be equal to the quantity of peanuts allocated to such farm for 
such year under paragraph (2). 
"(C) For purposes of this paragraph, if the farm poundage quota, 
or any part thereof, is permanently transferred in accordance with 
section 358a, the receiving farm shall be considered as possessing Post, p. 1434. 
the farm poundage quotas (or portion thereof) of the transferring 
farm for all subsequent marketing years. 
"(2)(A) If the poundage quota apportioned to a State under subsec-
tion (r) for any of the 1986 through 1990 marketing years is in-
creased over the poundage quota apportioned to the State for the 
immediately preceding marketing year, such increase shall be allo-
cated equally among— 
"(i) all farms in the State for each of which a farm poundage 
quota was established for the marketing year immediately 
r^^^ 
preceding the marketing year for which the allocation is being 
"'* 
made; and 
"(ii) all other farms in the State on each of which peanuts 
were produced in at least 2 of the 3 immediately preceding crop 
years, as determined by the Secretary. 
"(B) If the poundage quota apportioned to a State under subsec-
tion (r) for any of the 1987 through 1990 marketing years is de-
creased from the poundage quota apportioned to the State under 
such subsection for the immediately preceding marketing year, such 
decrease shall be allocated among all the farms in the State for each 
of which a farm poundage quota was established for the marketing 
year immediately preceding the marketing year for which the 
allocation is being made. 
"(3XA) Insofar as practicable and on such fair and equiteble basis Regulations, 
as the Secretary may by regulation prescribe, the farm poundage 
quota established for a farm for any of the 1986 through 1990 
marketing years shall be reduced to the extent that the Secretary 
determines that the farm poundage quota established for the farm 
51-194 O - 88 - 11 : QL. 3 
Part 2 
99 STAT. 1432 
PUBLIC LAW 99-198—DEC. 23, 1985 
for any 2 of the 3 marketing years preceding the marketing year for 
which the determination is being made was not produced, or consid-
ered produced, on the farm. 
Prohibition. 
"(B) For the purposes of this paragraph, the farm poundage quota 
for any such preceding marketing year shall not include— 
"(i) any increases for undermarketing of quota peanuts from 
1} previous years; or 
"(ii) any increase resulting from the allocation of quotas 
voluntarily released for one year under paragraph (7). 
"(4) For purposes of this subsection, the farm poundage quota 
shall be considered produced on a farm if— 
"(A) the farm poundage quota was not produced on the farm 
b^-- because of drought, flood, or any other natural disaster, or any 
other condition beyond the control of the producer, as deter-
^ '• mined by the Secretary; or 
"(B) the farm poundage quota for the farm was released 
voluntarily under paragraph (7) for only 1 of the 3 marketing 
years immediately preceding the marketing year for which the 
determination is being made. 
"(5) Notwithstanding any other provision of law— 
"(A) the farm poundage quota established for a farm under 
' 
this subsection, or any part of such quota, may be permanently 
released by the owner of the farm, or the operator with the 
permission of the owner; and 
"(B) the poundage quota for the farm for which such quota is 
released shall be adjusted downward to reflect the quota that is 
so released. 
"(6XA) Except as provided in subparagraph (B), the total amount 
of the farm poundage quotas reduced or voluntarily released from 
»<:>; 6 • "
_ farms in a State for any marketing year under paragraphs (3) and 
(5) shall be allocated, as the Secretary may by regulation prescribe, 
to other farms in the State on which peanuts were produced in at 
legist 2 of the 3 crop years immediately preceding the year for which 
such allocation is being made. 
"(B) Not less than 25 percent of such total amount of farm 
poundage quota in the State shall be allocated to farms for which no 
farm poundage quota was established for the immediately preceding 
year's crop. 
"(7)(A) The farm poundage quota, or any portion thereof, estab-
Regulations. 
lished for a farm for a marketing year may be voluntarily released 
to the Secretary to the extent that such quota, or any part thereof, 
will not be produced on the farm for the marketing year. Any farm 
poundage quota so released in a State shall be allocated to other 
farms in the State on such basis as the Secretary may by regulation 
prescribe. 
Prohibition. 
"(B) Any adjustment in the farm poundage quota for a farm under 
subparagraph (A) shall be effective only for the marketing year for 
which it is made and shall not be taken into consideration in 
establishing a farm poundage quota for the farm from which such 
quota was released for any subsequent marketing year. 
"(8)(A) Except as provided in subparagraph (B), the farm poundage 
, r - -5<« quota for a farm for any marketing year shall be increased by the 
^ 
number of pounds by which the total marketings of quota peanuts 
from the farm during previous marketing years (excluding any 
marketing year before the marketing year for the 1984 crop) were 
less than the total amount of applicable farm poundage quotas 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1433 
(disregarding adjustments for undermarketings from 
previous 
marketing years) for such marketing years. 
"(B) For 
purposes of subparagraph 
(A), no increase for Prohibition. 
undermarketings in previous marketing years shall be made to the 
poundage quota for any farm to the extent that the poundage quota 
for such farm for the marketing year was reduced under paragraph 
(3) for failure to produce. 
"(C) Any increases in farm poundage quotas under this paragraph Prohibition, 
shall not be counted against the national poundage quota for the 
marketing year involved. 
"(D) Any increase in the farm poundeige quota for a farm for a Regulations. 
marketing year under this paragraph may be used during the 
marketing year by the transfer of additional peanuts produced on 
the farm to the quota loan pool for pricing purposes on such basis as 
the Secretary shall by regulation prescribe. 
"(9) Notwithstanding the foregoing provisions of this subsection, if 
the total of all increases in individual farm poundage quotas under 
paragraph (8) exceeds 10 percent of the national poundage quota for 
,
_ 
the marketing year in which such increases shall be applicable, the 
Secretary shall adjust such increases so that the total of all such 
increases does not exceed 10 percent of the national poundage quota. 
"(tXD For each farm for which a farm poundage quota is estab-
lished under subsection (s), and when necessary for purposes of this 
Act, a farm yield of peanuts shall be determined for each such farm. 
"(2) Such yield shall be equal to the average of the actual yield per 
acre on the farm for each of the 3 crop years in which yields were 
highest on the farm out of the 5 crop years 1973 through 1977. 
'(3) If peanuts were not produced on the farm in at least 3 years 
during such 5-year period or there weis a substantial change in the 
operation of the farm during such period (including, but not limited 
to, a change in operator, lessee who is an operator, or irrigation 
practices), the Secretary shall have a 5deld appraised for the farm. 
The appraised yield shall be that amount determined to be fair and 
reasonable on the basis of yields established for similar farms that 
are located in the area of the farm and on which peanuts were 
produced, taking into consideration land, labor, and equipment 
available for the production of peanuts, crop rotation practices, soil 
and water, and other relevant factors. 
"(uXD Not later than December 15 of each calendar year, the Prohibition. 
Secretary shall conduct a referendum of producers engaged in the 
production of quota peanuts in the calendar year in which the 
referendum is held to determine whether such producers are in 
favor of or opposed to poundage quotas with respect to the crops of 
peanuts produced in the five calendar years immediately following 
the year in which the referendum is held, except that, if £is many as 
- ^. 
two-thirds of the producers voting in any referendum vote in favor 
of poundage quotas, no referendum shall be held with respect to 
quotas for the second, third, fourth, and fifth years of the period. 
"(2) The Secretary shall proclaim the result of the referendum 
within 30 days after the date on which it is held. 
"(3) If more than one-third of the producers voting in the referen-
dum vote against quotas, the Secretary also shall proclaim that 
poundage quotas will not be in effect with respect to the crop of 
peanuts produced in the calendar year immediately following the 
calendar year in which the referendum is held. 
"(v) For the purposes of this part and title I of the Agricultural 
Act of 1949: 
7 use 1421 note. 
99 STAT. 1434 
PUBLIC LAW 99-198—DEC. 23, 1985 
'- 
"(1) The term 'additional peanuts' means, for any marketing 
year— 
"(A) any peanuts that are marketed from a farm for 
which a farm poundage quota has been established and that 
are in excess of the marketings of quota peanuts from such 
farm for such year; and 
"(B) all peanuts marketed from a farm for which no farm 
• poundage quota has been established in accordance with 
subsection (s). 
"(2) The term 'crushing' means the processing of peanuts to 
extract oil for food uses and meal for feed uses, or the processing 
of peanuts by crushing or otherwise when authorized by the 
Secretary. 
"(3) The term 'domestic edible use' means use for milling to 
produce domestic food peanuts (other than those described in 
paragraph (2)) and seed and use on a farm, except that the 
Secretary may exempt from this definition seeds of peanuts that 
7 use 1359. 
are used to produce peanuts excluded under section 359(c), are 
' unique strains, and are not commercially available. 
"(4) The term 'quota peanuts' means, for any marketing year, 
any peanuts produced on a farm having a farm poundage quota, 
, as determined in subsection (s), that— 
^ 
"(A) are eligible for domestic edible use as determined by 
J 
the Secretary; 
''^' 
"(B) are marketed or considered marketed from a farm; 
, ;;; -^ and 
\,. i' 
"(C) do not exceed the farm poundage quota of such farm 
for such year.". 
-; 
SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA 
SEC. 703. Effective only for the 1986 through 1990 crops of pea-
nuts, section 358a of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1358a) is amended by adding at the end thereof the following: 
"(kXD Subject to such terms, conditions, or limitations as the 
Secretary may prescribe, the owner, or the operator with permission 
of the owner, of any farm for which a farm poundage quota has been 
established under this Act may sell or lease all or any part of such 
•r>iij4y-< poundage quota to any other owner or operator of a farm within the 
same county for transfer to such farm, except that any such lease of 
poundage quota may be entered into in the fsdl or after the normal 
planting season but only— 
"(A) if the quota has been planted on the farm from which the 
g?i' quota is to be leased; and 
Regulations. 
"(B) under such terms and conditions as the Secretary may by 
regulation prescribe. 
"(2) The owner or operator of a farm may transfer all or any part 
of the farm poundage quota for such farm to any other farm owned 
or controlled by such owner or operator that is in the same county 
or in a county contiguous to such county in the same State and that 
had a farm poundage quota for the preceding year's crop. 
"(3) Notwithstanding paragraphs (1) and (2), in the case of any 
State for which the poundage quota allocated to the State wgus less 
than 10,000 tons for the preceding year's crop, all or any part of a 
farm poundage quota may be transferred by sale or lease or other-
wise from a farm in one county to a farm in another county in the 
>
; 
'!tj 
same State. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1435 
"(1) Transfers (including transfer by sale or lease) of farm pound- Prohibitions. 
age quotas under this section shall be subject to all of the following 
conditions: 
"(1) No transfer of the farm poundage quota from a farm 
subject to a mortgage or other lien shall be permitted unless the 
transfer is agreed to by the lienholders. 
"(2) No transfer of the farm poundage quota shall be per-
mitted if the county committee established under section 8(b) of 
the Soil Conservation and Domestic Allotment Act determines 16 USC 590h. 
that the receiving farm does not have adequate tillable cropland 
to produce the farm poundage quota. 
"(3) No transfer of the farm poundage quota shall be effective 
until a record thereof is filed with the county committee of the 
county to which such transfer is made and such committee 
determines that the transfer complies with this section. 
"(4) Such other terms and conditions that the Secretary may Regulations. 
by regulation prescribe.". 
MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEANUTS 
SEC. 704. Effective only for the 1986 through 1990 crops of pea-
nuts, section 359 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1359) is amended by adding at the end thereof the following: 
"(mXlXA) The marketing of any peanuts for domestic edible use in 
excess of the farm poundage quota for the farm on which such 
peanuts are produced shall be subject to penalty at a rate equal to 
140 percent of the support price for quota peanuts for the marketing 
year in which such marketing occurs. 
"(B) For purposes of this section, the marketing year for pea-
nuts shall be the 12-month period beginning August 1 and ending 
July 31. 
"(C) The marketing of any additional peanuts from a farm shall be 
subject to the same penalty unless such peanuts, in accordance with 
regulations established by the Secretary, are— 
"(i) placed under loan at the additional loan rate in effect for 
such peanuts under section 108B of the Agricultural Act of 1949 
and not redeemed by the producers; 
"(ii) marketed through an area marketing association des-
ignated pursuant to section 108B(3XA) of the Agricultural Act of 
1949; or 
"(iii) marketed under contracts between handlers and produc-
ers pursuant to subsection (q). 
"(2) Such penalty shall be paid by the person who buys or other-
wise acquires the peanuts from the producer or, if the peanuts are 
marketed by the producer through an agent, the penalty shall be 
paid by sucn agent. Such person or agent may deduct an amount 
equivalent to the penalty from the price paid to the producer. 
"(3) If the person required to collect the penalty fails to collect 
such penalty, such person and all persons entitled to share in the 
peanuts marketed from the farm or the proceeds thereof shall be 
jointly and severally liable for the amount of the penalty. 
"(4) Peanuts produced in a calendar year in which farm poundage 
quotas are in effect for the marketing year beginning therein shall 
be subject to such quotas even though the peanuts are marketed 
prior to the date on which such marketing year begins. 
"(5) If any producer falsely identifies or fails to certify planted 
acres or fails to account for the disposition of any peanuts produced 
Regulations. 
Post, p. 1439. 
Contracts. 
99 STAT. 1436 
PUBLIC LAW 99-198—DEC. 23, 1985 
on such planted acres, an Eimount of peanuts equal to the farm's 
Ante, p. 1430. 
average 5deld, as determined under section 358(t), times the planted 
acres, shall be deemed to have been marketed in violation of permis-
sible uses of quota and additional peanuts. Any penalty payable 
under this pareigraph shall be paid and remitted by the producer. 
Regulations. 
"(6) The Secretary shall authorize, under such regulations as the 
Secretary shall issue, the county committees established under sec-
16 use 590h. 
tion 8(b) of the Soil Conservation and Domestic Allotment Act to 
waive or reduce marketing penalties provided for under this subsec-
tion in cases in which such committees determine that the violations 
that were the basis of the penedties were unintentional or without 
knowledge on the part of the parties concerned. 
Prohibition. 
"(7) Errors in weight that do not exceed one-tenth of 1 percent in 
the case of any one marketing document shall not be considered to 
be marketing violations except in cases of fraud or conspiracy. 
"(n)(l) Only quota peanuts may be retained for use as seed or for 
other uses on a farm. When so retained, quota peanuts shall be 
considered as marketings of quota peanuts, except that the Sec-
retary may exempt from consideration as marketings of quota 
peanuts seeds of peanuts that are used to produce peanuts excluded 
under subsection (c), are unique strains, and are not commercially 
available. 
Prohibition. 
"(2) Additional peanuts shall not be retained for use on a farm and 
shall not be marketed for domestic edible use, except as provided in 
subsection (r). 
"(3) Seed for planting of any peanut acreage in the United States 
shedl be obtained solely from quota peanuts marketed or considered 
marketed for domestic edible use. 
"(o) On a finding by the Secretary that the peanuts marketed from 
any crop for domestic edible use by a handler are larger in quantity 
or higher in grade or quality than the peanuts that could reasonably 
be produced from the quantity of peanuts having the grade, kernel 
content, and quality of the quota peanuts acquired by such handler 
from such crop for such marketing, such handler shall be subject to 
* 
a penalty equal to 140 percent of the loan level for quota peanuts on 
the quantity of peanuts that the Secretary determines are in excess 
of the quantity, grade, or quality of the peanuts that could reason-
ably have been produced from the peanuts so acquired. 
"(pXD Except as provided in paragraph (2), the Secretary shall 
require that the handling and disposal of additional peanuts be 
supervised by agents of the Secretary or by area marketing associa-
tions designated pursuant to section 108B(3XA) of the Agricultural 
Post, p. 1439. 
Act of 1949. 
Prohibition. 
"(2XA) Supervision of the handling and disposal of additional 
Regulations. 
peanuts by a handler shall not be required under parsigraph (1) if 
the handler agrees in writing, prior to any handling or disposal of 
such peanuts, to comply with regulations that the Secretary shall 
issue. 
Regulations. 
"(B) The regulations issued by the Secretary under subparagraph 
(A) shall include, but need not be limited to, the following 
provisions: 
"(i) Handlers of shelled or milled peanuts may export peanuts 
classified by tjrpe in all of the following quantities (less such 
I :;; reasonable allowance for shrinkage as the Secretary may 
>•,/: prescribe): 
--^nB i^; -.v^.. .:-•-:.•• ^
^
: ;, 
- .. • 
., ,, . ;:ri,.>^ 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1437 
"(I) Sound split kernel peanuts in an amount equal to 
twice the poundage of such peanuts purchased by the han-
dler as additional peanuts. 
"(ID Sound mature kernel peanuts in an amount equal to 
the poundage of such peanuts purchased by the handler as 
additional peanuts less the amount of sound split kernel 
peanuts purchased by the handler as additional peanuts. 
"(Ill) The remaining quantity of total kernel content of 
peanuts purchased by the handler as additional peanuts 
and not crushed domestically. 
"(ii) Handlers shall ensure that any additional peanuts ex-
ported are evidenced by onboard bills of lading, other appro-
priate documentation as may be required by the Secretary, or 
both. 
"(iii) If a handler suffers a loss of peanuts as a result of fire, 
flood, or any other condition beyond the control of the handler, 
the portion of such loss allocated to contracted additional pea-
nuts shall not be greater than the portion of the handler's total 
peanut purchases for the year attributable to contracted addi-
tional peanuts purchased for export by the handler during such 
year. 
"(3) A handler shall submit to the Secretary adequate financial 
.m 
guarantees, as well as evidence of adequate facilities and assets, to 
ensure the handler's compliance with the obligation to export 
peanuts. 
"(4) Quota and additional peanuts of like type and segregation or Regulations 
quality may, under regulations issued by the Secretary, be commin-
gled and exchanged on a dollar value basis to facilitate warehousing, 
handling, and marketing. 
"(5XA) Except as provided in subparagraph (B), the failure by a Regulations 
handler to comply with regulations issued by the Secretary govern-
ing the disposition and handling of additional peanuts shall subject 
the handler to a penalty at a rate equal to 140 percent of the loan 
level for quota peanuts on the quantity of peanuts involved in the 
violation. 
"(B) A handler shall not be subject to a penalty for failure to Prohibition. 
export additional peanuts if such peanuts were not delivered to the 
handler. 
"(6) If any additional peanuts exported by a handler are reentered 
into the United States in commercial quantities as determined by 
the Secretary, the importer thereof shall be subject to a penalty at a 
rate equal to 140 percent of the loan level for quota peanuts on the 
quantity of peanuts reentered. 
"(qXl) Handlers may, under such regulations as the Secretary 
may issue, contract with producers for the purchase of additional 
peanuts for crushing, export, or both. 
"(2) Any such contract shall be completed and submitted to the 
Secretary (or if designated by the Secretary, the area marketing 
association) for approval before August 1 of the year in which the 
crop is produced. 
"(3) Each such contract shall contain the final price to be paid by Contracts, 
the handler for the peanuts involved and a specific prohibition 
against the disposition of such peanuts for domestic edible or seed 
use. 
"(rXD Subject to section 407 of the Agricultural Act of 1949, any 
peanuts owned or controlled by the Commodity Credit Corporation 
may be made available for domestic edible use, in accordance with 
Regulations. 
Contracts. 
7 u s e 1427. 
Regulations. 
99 STAT. 1438 
PUBLIC LAW 99-198—DEC. 23, 1985 
regulations issued by the Secretary, so long as doing so does not 
result in substantially increased cost to the Commodity Credit Cor-
poration. Additional peanuts received under loan shall be offered for 
sale for domestic edible use at prices not less than those required to 
cover all costs incurred with respect to such peanuts for such items 
as inspection, warehousing, shrinkage, and other expenses, plus— 
"(A) not less than 100 percent of the loan value of quota 
peanuts if the additional peanuts are sold and paid for during 
the harvest season on delivery by and with the written consent 
of the producer; 
"(B) not less than 105 percent of the loan value of quota 
peanuts if the additional peanuts are sold after delivery by the 
producer but not later than December 31 of the marketing year; 
or 
"(C) not less than 107 percent of the loan value of quota 
peanuts if the additional peanuts are sold later than December 
31 of the marketing year. 
"(2)(A) Except £is provided in subparagraph (B), for the period 
from the date additional peanuts are delivered for loan to March 1 
of the calendar year following the year in which such additional 
peanuts were harvested, the area marketing association designated 
Post, p. 1439. 
pursuant to section 108B(3)(A) of the Agricultural Act of 1949 shall 
have sole authority to accept or reject lot list bids when the sales 
price, as determined under this subsection, equals or exceeds the 
minimum price at which the Commodity Credit Corporation may 
sell its stocks of additional peanuts. 
"(B) The area marketing association and the Commodity Credit 
Corporation may agree to modify the authority granted by subpara-
graph (A) to facilitate the orderly marketing of additional peanuts. 
"(s)(l) The person liable for payment or collection of any penalty 
provided for in this section shall be liable also for interest thereon at 
a rate per annum equal to the rate per annum of interest that was 
charged the Commodity Credit Corporation by the Treasury of the 
United States on the date such penalty became due. 
Prohibition. 
"(2) This section shall not apply to peanuts produced on any farm 
on which the acreage harvested for nuts is one acre or less if the 
producers who share in the peanuts produced on such farm do not 
share in the peanuts produced on any other farm. 
"(3) Until the amount of the penalty provided by this section is 
paid, a lien on the crop of peanuts with respect to which such 
penalty is incurred, and on any subsequent crop of peanuts subject 
to farm poundage quotas in which the person liable for payment of 
the penalty has an interest, shall be in effect in favor of the United 
States. 
"(4)(A) Notwithstanding any other provision of law, the liability 
for and the amount of any penalty assessed under this section shall 
be determined in accordance with such procedures as the Secretary 
by regulation may prescribe. The facts constituting the basis for 
determining the liability for or amount of any penalty assessed 
under this section, when officially determined in conformity with 
the applicable regulations prescribed by the Secretary, shall be final 
and conclusive and shall not be reviewable by any other officer or 
agency of the Government. 
Prohibition. 
"(B) Nothing in this section shall be construed as prohibiting any 
court of competent jurisdiction from reviewing any determination 
made by the Secretary with respect to whether such determination 
was made in conformity with the applicable law and regulations. 
Regulations. 
Prohibition. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1439 
"(C) All penalties imposed under this section shall for all purposes 
be considered civil penalties. 
"(5XA) Notwithstanding any other provision of law and except as 
provided in subparagraph (B), the Secretary may reduce the amount 
of any penalty assessed against handlers under this section if the 
Secretary finds that the violation on which the penalty is based was 
minor or inadvertent, and that the reduction of the penalty will not 
impair the operation of the peanut program. 
"(B) The amount of any penalty imposed on a handler under this 
section that resulted from the failure to export contracted additional 
peanuts may not be reduced by the Secretary.". 
PRICE SUPPORT PROGRAM 
SEC. 705. Effective only for the 1986 through 1990 crops of pea-
nuts, the Agricultural Act of 1949 is amended by adding after 
section 108A the following: 
"PRICE SUPPORT FOR 1986 THROUGH 1990 CROPS OF PEANUTS 
Contracts. 
Prohibition. 
7 u s e 1445C-2. 
'SEC. 108B. Notwithstanding any other provision of law: 
"(IXA) The Secretary shall make price support available to 
producers through loans, purchases, and other operations on 
quota peanuts for each of the 1986 through 1990 crops. 
"(BXi) The national average quota support rate for the 1986 
crop of quota peanuts shall be equal to the national average 
support rate established for the 1985 crop of quota peanuts, 
adjusted by the Secretary by a percentage equal to the percent-
age of any increase in the prices paid by producers for commod-
ities and services, interest, taxes, and wage rates during the 
period beginning with calendar year 1981 and ending with 
calendar year 1985, as determined by the Secretary. 
"(ii) The national average quota support rate for each of the 
Prohibition. 
1987 through 1990 crops of quota peanuts shall be the nationed 
average quota support rate for the immediately preceding crop, 
adjusted to reflect any increase, during the calendar year imme-
diately preceding the marketing year for the crop for which a 
level of support is being determined, in the national average 
cost of peanut production, excluding any change in the cost of 
land, except that in no event shall the national average quota 
support rate for any such crop exceed by more than 6 percent 
the national average quota support rate for the preceding crop. 
"(C) The levels of support so announced shall not be reduced 
Prohibition. 
by any deductions for inspection, handling, or storage. 
"(D) The Secretary may make adjustments for location of 
peanuts and such other factors £is are authorized by section 403. 
7 use 1423. 
"(E) The Secretary shall announce the level of support for 
quota peanuts of each crop not later than February 15 preced-
ing the marketing year for the crop for which the level of 
support is being determined. 
"(2XA) The Secretary shall make price support available to 
producers through loans, purchases, or other operations on 
additional peanuts for each of the 1986 through 1990 crops at 
such levels as the Secretary finds appropriate, talking into 
consideration the demand for peanut oil and peanut meal, 
expected prices of other vegetable oils and protein meals, and 
the demand for peanuts in foreign markete, except that the 
99 STAT. 1440 
PUBLIC LAW 99-198—DEC. 23, 1985 
Secretary shall set the support rate on additional peanuts at a 
level estimated by the Secretary to ensure that there are no 
losses to the Commodity Credit Corporation on the sale or 
disposal of such peanuts. 
"(B) 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. 
"(3XAXi) In carrying out paragraphs (1) and (2), the Secretary 
shall make warehouse storage loans available in each of the 
three producing areas (described in section 1446.60 of title 7 of 
the Code of Federal Regulations (January 1, 1985)) to a des-
ignated area marketing association of peanut producers that is 
selected and approved by the Secretary and that is operated 
primarily for the purpose of conducting such loan activities. The 
Secretary may not make warehouse storage loans available to 
any cooperative that is engaged in operations or activities 
concerning peanuts other than those operations and activities 
specified in this section and section 359 of the Agricultural 
Ante, p. 1435. 
Adjustment Act of 1938. 
"(ii) Such area marketing associations shall be used in 
administrative and supervisory activities relating to price sup-
port and marketing activities under this section and section 359 
of the Agricultural Adjustment Act of 1938. 
"(iii) Loans made under this subparagraph shall include, in 
addition to the price support value of the peanuts, such costs as 
the area marketing association reasonably may incur in carry-
ing out its responsibilities, operations, and activities under this 
section and section 359 of the Agricultural Adjustment Act of 
1938. 
New Mexico. 
"(B)(i) The Secretary shall require that each area marketing 
association establish pools and maintain complete and accurate 
' 
' 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 such pools. 
"(ii) Net gains on peanuts in each pool, unless otherwise 
- approved by the Secretary, shall be distributed only to produc-
•' 
ers who placed peanuts in the pool and shall be distributed in 
proportion to the value of the peanuts placed in the pool by each 
' 
producer. Net gains for peanuts in each pool shall consist of the 
following: 
"(I) For quota peanuts, the net gains over and above the 
loan indebtedness and other costs or losses incurred on 
peanuts placed in such pool plus an amount from the pool 
for additional peanuts, to the extent of the net gains from 
the sale for domestic food and related uses of additional 
peanuts in the pool for additional peanuts equal to any loss 
on disposition of all peanuts in the pool for quota peanuts. 
' 
"(II) For additional 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 subclause (I). 
"(4) Notwithstanding any other provision of this section: 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1441 
"(A) Any distribution of net gains on additional peanuts 
shall be first reduced to the extent of any loss by the 
; 
Commodity Credit Corporation on quota peanuts placed 
under loan. 
"(BXi) 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 under section 358(sX8) of the Agricul-
tural Adjustment Act of 1938. 
"(ii) Losses in area quota pools, other than losses incurred 
as a result of transfers from additional loan pools to quota 
loan pools under section 358(sX8) of the Agricultural Adjust-
ment Act of 1938, shall be offset by any gains or profits 
from pools in other production areas (other than separate 
t3rpe pools established under paragraph (3XBXi) for Valencia 
peanuts produced in New Mexico) in such manner as the 
Secretary shall by regulation prescribe. 
"(5) 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(u) of 
the Agricultural Adjustment Act of 1938.". 
Ante, p. 1430. 
New Mexico. 
Regulations. 
Prohibition. 
REPORTS AND RECORDS 
SEC. 706. Effective only for the 1986 through 1990 crops of pea-
nuts, the first sentence of section 373(a) of the Agricultural Adjust-
ment 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 production of peanuts,". 
' 
SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS 
SEC. 707. Section 101 of the Agricultural Act of 1949 (7 U.S.C. 
1441) shall not be applicable to the 1986 through 1990 crops of 
peanuts. 
TITLE VIII—SOYBEANS 
Prohibition. 
7 u s e 1441 note. 
SOYBEAN 
PRICE 
SUPPORT 
SEC. 801. Effective only for the 1986 through 1990 crops of soy-
beans, section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is 
amended by— 
(1) inserting "soybeans," after "tung nuts," in the first sen-
tence; and 
(2) adding at the end thereof the following new subsection: 
"(iXlXA) The Secretary shall support the price of soybeans 
through loans and purchases in each of the 1986 through 1990 
marketing years as provided in this subsection. 
"(B) The support price for the 1986 and 1987 crops of soybeans 
shall be $5.02 per bushel. 
"(C) The support price for each of the 1988 through 1990 crops of 
soybeans shall be established at a level equal to 75 percent of the 
simple average price received by producers for soybeans in the 
preceding 5 marketing years, excluding the year in which the 
average price was the highest and the year in which the average 
price was the lowest in such period, except that the level of price 
Prohibition. 
STAT. 1442 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
Loans. 
Regulations. 
Prohibition. 
Prohibition. 
Prohibitions. 
support may not be reduced by more than 5 percent in any year and 
in no event below $4.50 per bushel. 
"(2) If the Secretary determines that the level of loans or pur-
chases computed for a marketing year under paragraph (1) would 
discourage the exportation of soybeans and cause excessive stocks of 
soybeans in the United States, the Secretary may reduce the level of 
loans and purchases for soybeans for the marketing year by the 
amount the Secretary determines necessary to meiintain domestic 
and export markets for soybean^, except that the level of loans and 
purchases may not be reduced by more than 5 percent in any year 
and in no event below $4.50 per bushel. Any reduction in the loan 
and purchase level for soybeans under this paragraph shall not be 
considered in determining the loan and purchase level for soybeans 
for subsequent years. 
"(3XA) If the Secretary determines that such action will assist in 
maintaining the competitive relationship of soybeans in domestic 
and export markets after taking into consideration the cost of 
producing soybeans, supply and demand conditions, and world 
prices for soybeans, the Secretary may permit a producer to repay a 
loan made under this subsection for a crop at a level that is the 
lesser of— 
"(i) the loan level determined for such crop; or 
"(ii) the prevailing world market price for soybeans, as deter-
mined by the Secretary. 
"(B) If the Secretary makes the determination described in 
subparagraph (A), the Secretary shall prescribe by regulation— 
"(i) a formula to define the prevailing world market price for 
soybeans; and 
"(ii) a mechanism by which the Secretary shall periodically 
announce the prevailing world market price for soybeans. 
"(4) For purposes of this subsection, the soybean marketing year is 
the 12-month period beginning on September 1 and ending on 
August 31. 
"(5XA) The Secretary shall make a preliminary announcement of 
the level of price support for soybeans for a marketing year not 
earlier than 30 days before the beginning of the marketing year. The 
announced level shall be based on the latest information and statis-
tics available at the time of the announcement. 
"(B) The Secretary shall make a final announcement of such level 
as soon as complete information and statistics are available on 
prices for the 5 years preceding the beginning of the marketing year. 
Such final level of support may not be announced later than 
October 1 of the marketing year with respect to which the 
announcement is made. The final level of support may not be less 
than the level of support provided for in the preliminary 
announcement. 
"(6) Notwithstanding any other provision of law— 
"(A) the Secretary shall not require participation in any 
production adjustment program for soybeans or any other 
commodity as a condition of eligibility for price support for 
soybeans; 
"(B) the Secretary shall not permit the planting of soybeans 
for harvest on reduced acreage or acreage set aside or diverted 
from production under any other Federal Grovemment program; 
"(C) the Secretary may not authorize pajrments to producers 
to cover the cost of storing soybeans; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1443 
Honey. 
Milk. 
"(D) soybeans may not be considered an eligible commodity 
for any reserve program.". 
TITLE DC—SUGAR 
SUGAR PRICE SUPPORT 
SEC. 901. Effective only for the 1986 through 1990 crops of sugar 
beets and sugarcane, section 201 of the Agricultural Act of 1949 (7 
U.S.C. 1446) (as amended by section 801 of this Act) is further 
amended by— 
(1) striking out "honey, and milk" in the first sentence and 
inserting in lieu thereof "honey, milk, sugar beets, and sugar-
cane"; and 
(2) adding at the end thereof the following new subsection: 
"(jXD The price of each of the 1986 through 1990 crops of sugar 
beets and sugarcane, respectively, shall be supported in accordance 
with this subsection. 
"(2) The Secretary shall support the price of domestically grown Loans, 
sugarcane through nonrecourse loans at such level as the Secretary 
determines appropriate but not less than 18 cents per pound for raw 
cane sugar, except that such level may be increased under para-
graph (4). 
"(3) The Secretary shall support the price of domestically grown Loans. 
sugar beets through nonrecourse loans at such level as the Secretary 
determines is fair and reasonable in relation to the loan level for 
sugarcane. 
"(4XA) The Secretary may increase the support price for each of 
the 1986 through 1990 crops of domestically grown sugarcane and 
sugar beets from the price determined for the preceding crop based 
on such factors as the Secretary determines appropriate, including 
changes (during the 2 crop years immediately preceding the crop 
year for which the determination is made) in the cost of sugar 
products, the cost of domestic sugar production, and other cir-
cumstances that may adversely affect domestic sugar production. 
"(B) If the Secretary makes a determination not to increase the 
support price under subparagraph (A), the Secretary shall submit a 
report containing the findings, decision, and supporting data for 
such determination to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
"(5) The Secretary shall announce the loan rate to be applicable Loans. 
during any fiscal year under this subsection as far in advance of the 
beginning of that fiscal year as is practicable consistent with the 
purposes of this subsection. 
"(6) Loans under this subsection during any fiscal year shall be Loans. 
made available not earlier than the beginning of such fiscal year 
and shall mature before the end of such fiscal year.". 
PREVENTION OF SUGAR LOAN FORFEITURES 
SEC. 902. (a) Beginning with the quota year for sugar imports 
which begins after the 1985/1986 quota year, the President shall use 
all authorities available to the President as is necessary to enable 
the Secretary of Agriculture to operate the sugar program estab-
lished under section 201 of the Agricultural Act of 1949 (7 U.S.C. 
1446) at no cost to the Federal (jovernment by preventing the 
7 u s e 1446 note. 
Ante, pp. 1362, 
1441; supra. 
99 STAT. 1444 
PUBLIC LAW 99-198—DEC. 23, 1985 
President of U.S. 
Prohibition. 
Cuba. 
accumulation 
of sugar 
acquired by the Commodity 
Credit 
Corporation. 
(b) Effective only for the 1985/1986 quota year for sugar imports, 
the President shall— 
(1) modify the 1985/1986 quota year for imports for sugar so 
that such quota year will end no earlier than December 31, 
1986, and rearrange the shipping schedules so that shipments 
are divided equally throughout the quota year, as extended; or 
(2) require that the sugar program be administered in such a 
manner as will result in the forfeiture of sugar held by the 
Commodity Credit Corporation as collateral for price support 
loans in a quantity no greater than the total quantity (deter-
mined by the Secretary of Agriculture) that would have been 
forfeited to the Commodity Credit Corporation had the 1985/ 
1986 quota year been modified as prescribed in clause (1). 
(c) Beginning with the quota year for sugar imports which begins 
after the 1985/1986 quota year, the President shall not allocate any 
of the sugar import quota under such provisions to any country that 
is a net importer of sugar derived from sugarcane or sugar beets 
unless the appropriate officials of that country verify to the Presi-
dent that that country does not import for reexport to the United 
States any sugar produced in Cuba. 
i «f 
PROTECTION OF SUGAR PRODUCERS 
SEC. 903. (a) Section 401(e) of the Agricultural Act of 1949 (7 U.S.C. 
1421(e)) is amended by— 
(1) inserting "(1)" after the subsection designation; and 
'' 
(2) adding at the end thereof the following new paragraph: 
Contracts. 
"(2XA) If the assurances under paragraph (1) are not adequate to 
cause the producers of sugar beets and sugarcane, because of the 
bankruptcy or other insolvency of the processor, to receive maxi-
mum benefits from the price support program within 30 days after 
the final settlement date provided for in the contract between such 
producers and processor, the Secretary, on demand made by such 
producers and on such assurances as to nonpayment as the Sec-
retary shall require, shall pay such producers such maximum bene-
fits less benefits previously received by such producers. 
"(B) On such payment, the Secretary shall— 
"(i) be subrogated to all claims of such producers against the 
processor and other persons responsible for nonpayment; and 
; 
"(ii) have authority to pursue such claims as necessary to 
recover the benefits not paid to the producers. 
"(C) The Secretary shall carry out this paragraph through the 
Commodity Credit Corporation.". 
7 use 1421 note. 
(b) The amendments made by this section shall apply to 
nonpayments occurring after January 1,1985. 
TITLE X—GENERAL COMMODITY PROVISIONS 
^I'^n 
'-:} 
Prohibitions. 
7 u s e 1308. 
smc: 
SUBTITLE A—MISCELLANEOUS COMMODITY PROVISIONS 
PAYMENT UMITATIONS 
SEC. 1001. Notwithstanding any other provision of law: 
(1) For each of the 1986 through 1990 crops, the total amount of 
pajmients (excluding disaster pa3mients) that a person shall be 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1445 
entitled to receive under one or more of the annual programs 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) 
for wheat, feed grains, upland cotton, extra long staple cotton, and 
rice may not exceed $50,000. 
(2) For each of the 1986 through 1990 crops, the total amount of 
disaster payments that a person shall be entitled to receive under 
one or more of the annual programs established under the Agricul-
tural Act of 1949 for wheat, feed grains, upland cotton, and rice may 
not exceed $100,000. 
(3) As used in this section, the term "pajnnents" does not 
include— 
(A) loans or purchases; 
(B) any part of any payment that is determined by the 
Secretary of Agriculture to represent compensation for resource 
adjustment (excluding land diversion payments) or public access 
for recreation; 
7 >
:
• 
(C) any gain realized by a producer from repajring a loan for a 
crop of wheat, feed grains, upland cotton, or rice at the rate 
permitted under section 107D(aX5), 105C(aX4), 103A(aX5), or 
101A(aX5), respectively, of the Agricultural Act of 1949; 
(D) any deficiency pa3nnent received for a crop of wheat or 
feed grains under section lOTJXcXD or 105C(cXl), respectively, of 
' such Act as the result of a reduction of the loan level for such 
crop under section 107D(aX4) or 105C(aX3) of such Act; 
(E) any loan deficiency pa3mient received for a crop of wheat, 
feed grains, upland cotton, or rice under section 107IXb), 
105C(b), 103A(b), or 101A(b), respectively, of such Act; 
(F) any inventory reduction pa3mient received for a crop of 
wheat, feed grains, upland cotton, or rice under section 107D(g), 
,i 105C(g), 103A(g), or 101 
A(g), respectively, of such Act; 
(G) any increased established price payments under section 
105C(cXlXE) or 107D(cXlXE), respectively, of such Act; or 
(H) any benefit received as a result of any cost reduction 
action by the Secretary under section 1009 of this Act. 
(4) If the Secretary determines that the total amount of payments 
that will be earned by any person under the program in effect for 
any crop will be reduced under this section, any acreage require-
ment established under a set-aside or acreage limitation program for 
the farm or farms on which such person will be sharing in payments 
earned under such program shall be adjusted to such extent and in 
such memner as the Secretary determines will be fair and reason-
able in relation to the amount of the payment reduction. 
(5XA) The Secretary shall issue regulations— 
(i) defining the term "person"; and 
(ii) prescribing such rules as the Secretary determines nec-
essary to assure a fair and reasonable application of the limita-
tion established under this section. 
(B) The regulations issued by the Secretary on December 18,1970, 
under section 101 of the Agricultural Act of 1970 (7 U.S.C. 1307) 
shall be used to establish the percentage ownership of a corporation 
by the stockholders of such corporation for the purpose of determin-
ing whether such corporation and stockholders are separate persons 
under this section, 
(6) The provisions of this section that limit payments to any 
person shall not be applicable to lands owned by States, political 
subdivisions, or agencies thereof, so long as such lands are farmed 
Ante, pp. 1383, 
1395, 1407, 1419. 
Regulations. 
Regulations. 
Prohibition. 
99 STAT. 1446 
PUBLIC LAW 99-198—DEC. 23, 1985 
primarily in the direct furtherance of a public function, as deter-
mined by the Secretary. 
ADVANCE DEFICIENCY AND DIVERSION PAYMENTS 
SEC. 1002. Effective only for the 1986 through 1990 crops of wheat, 
feed grains, upland cotton, and rice, section 107C of the Agricultural 
Act of 1949 (7 U.S.C. 1445b-2) is amended to read as follows: 
"SEC. 107C. (aXl) If the Secretary establishes an acreage limitation 
or set-aside program for any of the 1986 through 1990 crops of 
wheat, feed grains, upland cotton, or rice under this Act and deter-
mines that deficiency pa5rments will likely be made for such 
commodity for such crop, the Secretary— 
"(A) shall make advance deficiency payments available to 
* 
producres who agree to participate in such program for the 1986 
crop; and 
"(B) may make such pa3nnents available to such producers for 
each of the 1987 through 1990 crops. 
. "
« "(2) Advance deficiency payments under paragraph (1) shall be 
made to the producer under the following terms and conditions: 
* 
"•' 
"(A) Such payments may be made available in the form of— 
"(i) cash; 
"(ii) commodities owned by the Commodity Credit Cor-
poration and negotiable certificates redeemable in a 
commodity owned by the Commodity Credit Corporation, 
except that not more than 50 percent of such pajmients may 
be made in commodities or such certificates in the case of 
any producer; or 
"(iii) any combination of clauses (i) and (ii). 
"(B) If pa3mients are made available to producers as provided 
A- 
for under subparagraph (A)(ii), such producers may elect to 
receive such payments either in the form of— 
?7f 
"(i) such commodities; or 
"(ii) such certificates. 
' 
-^ • 
& 
"(C) Such a certificate shall be redeemable for a period not to 
' 
exceed 3 years from the date such certificate is issued. 
"(D) The Commodity Credit Corporation shall pay the cost of 
storing a commodity that may be received under such a certifi-
cate until such time as the certificate is redeemed. 
Contracts. 
"(E) Such pajmtients shall be made available as soon as prac-
' 
ticable after the producer enters into a contract with the Sec-
retary to participate in such program. 
- ' 
"(F) Such payments shall be made available in such amounts 
as the Secretary determines appropriate to encourage adequate 
participation in such program, except that such amount may 
not exceed an amount determined by multiplying— 
"(i) the estimated farm program acreage for the crop, by 
' 
"(ii) the farm program payment yield for the crop, by 
'' ' 
"(iii) 50 percent of the projected payment rate, 
as determined by the Secretary. 
f 
"(G) If the deficiency payment payable to a producer for a 
- 
crop, as finally determined by the Secretary under this Act, is 
less than the amount paid to the producer as an advance 
" ' 
deficiency payment for the crop under this subsection, the 
producer shall refund an amount equal to the difference be-
tween the amount advanced and the amount finalUy deter-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1447 
mined by the Secretary to be payable to the producer as a 
deficiency pa5mient for the crop concerned. 
"(H) If the Secretary determines under this Act that defi-
ciency pajnnents will not be made available to producers on a 
crop with respect to which advance deficiency payments already 
have been made under this subsection, the producers who re-
ceived such advance pa3nnents shall refund such payments. 
"(I) Any refund required under subparagraph (G) or (H) shall 
be due at the end of the marketing year for the crop with 
respect to which such payments were made. 
(J) If a producer fails to comply with requirements estab- Regulations, 
lished under the acreage limitations or set-aside program in-
volved after obtaining an advance deficiency payment under 
this subsection, the producer shall repay immediately the 
) 
amount of the advance, plus interest thereon in such amount as 
the Secretary shall prescribe by regulation. 
"(3) The Secretary may issue such regulations as the Secretary Regulations. 
determines necessary to carry out this section. 
"(4) The Secretary shall carry out the program authorized by this 
section through the Commodity Credit Corporation. 
"(5) The authority provided in this section shall be in addition to, 
and not in place of, any authority granted to the Secretary or the 
Commodity Credit Corporation under any other provisions of law. 
"(b) If the Secretary makes land diversion payments under this 
Act to assist in adjusting the total national acreage of any of the 
1986 through 1990 crops of wheat, feed grains, upland cotton, or rice 
to desirable levels, the Secretary may make at least 50 percent of 
such pajmients available to a producer as soon as possible after the 
producer agrees to undertake the diversion of land in return for 
- -
such payments.". 
ADVANCE RECOURSE COMMODITY LOANS 
SEC. 1003. Effective for the 1986 through 1990 crops, the Agricul-
tural Act of 1949 is amended by inserting after section 423 (7 U.S.C 
1433b) the following new section: 
"SEC. 424. Notwithstanding any other provision of this Act, the 7 use 1433c. 
Secretary may make advance recourse loans available to producers 
of the commodities of the 1986 through 1990 crops for which 
nonrecourse loans are made available under this Act if the Sec-
retary finds that such action is necessary to ensure that adequate 
operating credit is available to producers. Such recourse loans may 
be made available under such reasonable terms and conditions as 
the Secretary may prescribe, except that the Secretary shall require 
that a producer obtain crop insurance for the crop as a condition of '-ocu~-
eligibility for a loan.". 
INTEREST PAYMENT CERTIFICATES 
SEC. 1004. Effective only for the 1986 through 1990 crops, section 
405 of the Agricultural Act of 1949 (7 U.S.C. 1425) is amended by— 
(1) inserting "(a)" after the section designation; and 
(2) adding at the end thereof the following new subsection: 
"(bXl) Notwithstanding any other provision of law, the Secretary 
may provide a negotiable certificate to any producer who repays, 
together with interest, a price support loan made available to such 
producer under any of the annual programs, for wheat, feed grains, 
upland cotton, or rice established under this Act. 
Loans. 
99 STAT. 1448 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loans. 
"(2) The amount of such certificates shall be equal to the amount 
of the interest paid by the producer on such loan. 
"(3) Such certificate shall be redeemable in wheat, feed grains, 
upland cotton, or rice, as the case may be, owned by the Commodity 
Credit Corporation. 
"(4) The issuance of such certificate shall be subject to the avail-
ability of commodities owned by the Corporation.". 
7 u s e 1445b-4. 
Loans. 
7 u s e 1445e. 
Regulations. 
^ 
-VI, 
>.u 
., 
PAYMENTS IN COMMODITIES 
SEC. 1005. The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is 
amended by inserting after section 107D (as added by section 308 of 
this Act) the following new section: 
"SEC. 107E. (a) In making in-kind pajrments under any of the 
annual programs for wheat, feed grains, upland cotton, or rice (other 
than negotiable marketing certificates for upland cotton or rice), the 
Secretary may— 
"(1) acquire and use like commodities that have been pledged 
to the Commodity Credit Corporation as security for price sup-
port loans, including loans made to producers under section 110; 
and 
"(2) use other like commodities owned by the Commodity 
Credit Corporation. 
"(b) The Secretary may make in-kind pajnnents— 
"(1) by delivery of the commodity to the producer at a ware-
house or other similar facility, as determined by the Secretary; 
"(2) by the transfer of negotiable warehouse receipts; 
"(3) by the issuance of negotiable certificates which the 
Commodity Credit Corporation shall redeem for a commodity in 
accordance with regulations prescribed by the Secretary; or 
"(4) by such other methods as the Secretary determines appro-
priate to enable the producer to receive payments in an effi-
cient, equitable, and expeditious manner so as to ensure that 
the producer receives the same total return as if the pa5anents 
had been made in cash.". 
c. . 
.-, , -
7 u s e 1445b-5. 
Loans. 
Ante, pp. 1383, 
1395. 
WHEAT AND FEED GRAIN EXPORT CERTIFICATE PROGRAMS 
SEC. 1006. Effective for the 1986 through 1990 crops of wheat and 
feed grains, the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is 
amended by inserting after section 107F (as added by section 1005 of 
this Act), the following new section: 
"SEC. 107F. (aXl) The Secretary may establish a program, ap-
plicable to any of the 1986 through 1990 crops of wheat or feed 
grains, to provide incentives for the export of any of such crops of 
wheat and feed grains from private stocks. The program for any 
such crop established under this subsection by the Secretary shall 
include the following terms: 
"(A) The Secretary shall issue wheat or feed grain export 
certificates to producers to whom the Secretary makes loans 
and payments under section 107D or 105C, respectively, for a 
crop if such producers comply with the terms and conditions of 
the program for such crop. 
"(B) Each such certificate shall bear a monetary denomina-
tion and a designation specifying a quantity of the crop of the 
commodity involved, selected by the Secretary. 
. 
^.u 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1449 
"(C) The aggregate quantity of wheat or feed grains specified 
in all export certificates distributable to eligible producers of 
the crop involved shall be equal to— 
"(i) the aggregate amount of wheat or feed grains pro-
if f 
duced by producers participating in the program for the 
crop under section 107D or 105C, as determined by mul- 
Ante, pp. 1383, 
tiplying the acreage planted by each such producer for 
i^^^ 
harvest times the farm program payment )deld for the 
commodity, times 
"(ii) an export production factor. 
For purposes of this subparagraph, the export production factor 
for a crop shall be determined by the Secretary by dividing the 
quantity of such crop harvested domestically that the Secretary 
estimates will not be used domestically and will be available for 
export (excluding the portion of the crop expected to be added to 
carryover stocks) during the marketing year for such crop by 
the quantity of such crop that the Secretary estimates will be 
harvested domestically. 
"(D) Wheat or feed grain export certificates shall be distrib-
uted among eligible producers in a manner that will ensure that 
each eligible producer receives certificates having an aggregate 
face value that represents an equal rate of return per unit of 
wheat or feed grains produced by such producer for such crop. 
For purposes of determining such rate of return, the Secretary 
shall take into consideration regional variations in the costs 
incurred by producers to market the commodity (including 
transportation costs). 
"(E) An export certificate issued under this subsection shall 
be redeemed by the Secretary for a cash amount equal to the 
monetary denomination on such certificate (or, at the option of 
the Secretary, a quantity of the commodity involved having a 
current fair market value equal to such amount) only on presen-
tation by a holder who exports a quantity of the crop involved 
(including processed wheat or feed grains) equal to the quantity 
designated in the certificate and only if the Secretary has not 
redeemed previously an export certificate issued under this 
subsection presented in connection with the particular wheat or 
feed grains so exported. 
"(2) The Secretary shall carry out this subsection through the 
Commodity Credit Corporation. If sufficient funds are available to 
the Corporation, there shall be expended to carry out this subsection 
with respect to the export of the crop of wheat or feed grains 
involved an amount not less than the product of multipl3dng— 
"(A) 21 cents for wheat, 11 cents for corn, and such amounts 
for grain sorghums, oats, and, if designated by the Secretary, 
barley as the Secretary determines fair and reasonable in rela-
tion to the amount specified for corn, times 
"(B) the aggregate of the wheat or feed grain acreage planted 
to the commodity for harvest by producers participating in the 
program for the crop with respect to which deficiency pa3niients 
are available under section 107D or 105C, times 
"(C) the average of the program 3delds for the crop. 
"(3) Funds expended to carry out export certificate programs 
established under this subsection shall be in addition to, and not in 
place of, funds authorized by any other law to be expended to 
finance or encourage the export of wheat or feed gredns. 
99 STAT. 1450 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(4) For purposes of facilitating the transfer of export certificates 
under this subsection, the Commodity Credit Corporation may buy 
and sell certificates in accordance with regulations prescribed by the 
S©crGtfl.rv 
"(bXD Effective for each of the 1986 through 1990 crops of wheat 
M. 
) f 
or feed grains, the Secretary may issue to eligible producers (who, 
r <
; 
for purposes of this subsection, are producers of wheat or feed grains 
participating in the program under this Act for such crop who meet 
the requirements of paragraph (2)) export marketing certificates, 
denominated in bushels of wheat or feed grains, as applicable, for 
the crop, which shall be used, under such terms and conditions as 
the Secretary may prescribe consistent with the provisions of this 
subsection, as follows: 
"(A) Not later than 3 months before the beginning of the 
fi 
marketing year for a crop of wheat or feed grains, the Secretary 
I 
may issue to eligible producers that plant at least 50 percent of 
,
:
^ 
the farm's wheat or feed grain crop acreage base for such crop, 
export marketing certificates to be applicable to such marketing 
year that, in the aggregate, shall equal the quantity of the 
t 
commodity the Secretary estimates will be exported during the 
marketing year. Each such eligible producer shall receive cer-
tificates for a quantity of the commodity that bears the same 
" 
ratio to the quantity of estimated exports as the producer's crop 
acreage base for that crop of the commodity bears to the 
aggregate total of all such eligible producers' crop acreage bases 
* 
for that crop, rounded upward to the nearest full bushel. 
~ 
"(B) The denomination of export marketing certificates shall 
t. 
be 1 bushel (with no accompanying cash face value), except that 
the Secretary may issue certificates in multiples of such 
I 
denomination, and any certificate in the multiple of such 
* 
denomination, may be exchanged by the producer, at the county 
Agricultural Stabilization and Conservation Service office, for 
certificates representing an equivalent quantity of the commod-
ity in different multiples, to facilitate the operation of the 
program 
under 
this subsection. 
Each 
export 
marketing 
certificate shall designate the producer by name and the crop 
involved. 
"(C) If 7 months after the beginning of the marketing year for 
the crop, the Secretary determines that the amount of the 
-
^ 
commodity that will be exported during the marketing year for 
that crop will exceed the aggregate quantity of the commodity 
'' 
represented by all the export marketing certificates so issued, 
^ 
the Secretary may issue additional export marketing certifi-
cates to producers that initially received certificates for the crop 
*
* 
sufficient to cover the additional exports, such certificates to be 
apportioned among such producers so that producer receives the 
same portion of the additional certificates issued that the pro-
ducer received of the export certificates initially issued for the 
crop, as provided in subparagraph (A), rounded upward to the 
-' 
nearest full bushel. 
"(D) Producers may convey export marketing certificates 
issued under this subsection to purchasers of the commodity 
involved sold by the producers at any time prior to the end of 
s 
the marketing year for the crop described in the certificate. If a 
*
^ 
producer has less wheat or feed grains to sell than the quantity 
represented by the export marketing certificates issued to the 
producer, because of reduced production or other reason or 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1451 
because, in the case of additional certificates issued under 
subparagraph (C), the producer had disposed of the producer's 
< 
wheat or feed grains prior to the issuance of such additional 
certificates, the producer, at any time prior to the end of the 
marketing year for the crop involved, may sell the extra export 
marketing certificates to any person for such price as agreed on 
by the producer and purchaser. Any certificate may be 
reconveyed without restriction. 
"(2) To be eligible to receive export certificates under this subsec-
tion for a crop of wheat or feed grains, a producer of such commodity 
must participate in the program under this title for such crop, and— 
"(A) if there is no acreage limitation or set-aside in effect for 
the crop, limit the acreage on the farm planted to the crop for 
harvest to the farm's wheat or feed grain crop acreage base, as 
applicable; 
"(B) if an acreage limitation is in effect for the crop, limit the 
acreage on the farm planted to the crop for harvest to the 
farm's wheat or feed grain crop acreage base, as applicable, 
reduced to the extent required under the acreage limitation 
program, and comply with any other terms of the acreage 
limitation program established by the Secretary; or 
"(C) if a set-aside program is in effect for the crop, comply 
with the set-aside and other terms of the set-aside program 
established by the Secretary. 
"(3) Whenever the Secretary issues certificates under this subsec- Prohibitions. 
tion for a crop of wheat or feed grains, no person may export wheat 
or feed grains or products thereof, from the United States during the 
marketing year for the crop without surrendering to the Secretary, 
at the time of export, export marketing certificates for such crop 
representing the quantity of the commodity being exported or, in 
the case of wheat or feed grain products, the equivalent quantity of 
the commodity contained in the products being exported. Persons 
that fail to comply with the requirements of the preceding sentence 
shall be subject, for each violation thereof, to a fine of not more than 
$25,000 or imprisonment for not to exceed 1 year, or both such fine 
and imprisonment. This paragraph shall not apply to exports of 
commodities or products owned by the Federal Government or any 
agency or instrumentality thereof, nor to commodities or products 
provided to the exporter by the Commodity Credit Corporation 
under an export development program. 
"(4) Any person who falsely makes, issues, alters, forges, or 
counterfeits any export marketing certificate, or with fraudulent 
intent possesses, transfers, or uses any such falsely made, issued, 
altered, forged, or counterfeited export marketing certificate, shall 
be subject to a fine of not more than $10,000 or imprisonment of not 
more than 10 years, or both such fine and imprisonment. 
"(5) For purposes of facilitating the transfer of export certificates 
under this subsection, the Commodity Credit Corportation may buy 
and sell certificates in accordance with regulations prescribed by the 
Secretary.". 
COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS 
SEC. 1007. Effective only for the marketing years for the 1986 
through 1990 crops, section 407 of the Agricultural Act of 1949 (7 
U.S.C. 1427) is amended by— 
99 STAT. 1452 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
Loans. 
Prohibition. 
(1) in the third sentence, striking out the langauge following 
the third colon and inserting in lieu thereof the following: 
"Provided, That, notwithstanding any other provision of law, 
the Corporation may not sell any of its stocks of wheat, corn, 
grain sorghum, barley, oats, and rye, respectively, at less than 
(A) 115 percent of the current national average loan rate for the 
commodity, adjusted for such current market 
differentials 
reflecting grade, quality, location, and other value factors as the 
Secretary determines appropriate plus reasonble carrying 
charges, or (B) if the Secretary permits the repayment of loans 
made for a crop of the commodity at a rate that is less than the 
loan level determined for such crop, 115 percent of the averge 
loan repayment rate that is determined for such crop during the 
period of such loans.''; 
(2) in the fifth sentence, striking out "current basic county 
support rate including the value of any applicable price-support 
payment in kind (or a comparable price if there is no current 
basic county support rate)' and inserting in lieu thereof the 
following: 
current basic county loan rate (or a comparable 
price if there is no current basic county loan rate)"; and 
(3) in the seventh sentence, striking out ", but in no event 
shall the purchase price exceed the then current support price 
for such commodities" and inserting in lieu thereof: "or unduly 
affecting market prices, but in no event shall the purchase price 
exceed the Corporation's minimum sales price for such commod-
ities for unrestricted use". 
, 
DISASTER PAYMENTS FOR 1985 THROUGH 1990 CROPS OF PEANUTS, ,, 
SOYBEANS, SUGAR BEETS, AND SUGARCANE 
SEC. 1008. Effective only for the 1985 through 1990 crops of 
peanuts, soybeans, sugar beets, and sugarcane, section 201 of the 
Agricultural Act of 1949 (7 U.S.C. 1446) (as amended by section 901 
of this Act) is further amended by adding at the end thereof the 
following new subsection: 
"(kXD If the Secetary determines that the producers on a farm are 
prevented from planting any portion of the acreage on the farm 
intended for peanuts, soybeans, sugar beets, or sugarcane to pea-
nuts, soybeans, sugar beets, sugarcane, or other nonconserving crops 
because of drought, flood, or other natural disaster, or other condi-
tion beyond the control of the producers, the Secretary may make a 
prevented planting disaster payment to the producers in an amount 
equal to the product obtained^y multiplying— 
"(A) the number of acres so affected but not to exceed the 
acreage planted to peanuts, soybeans, sugar beets, or sugarcane 
for harvest (including any acreage that the producers were 
prevented from planting to such commodity or to other 
nonconserving crops in lieu of peanuts, soybeans, sugar beets, or 
sugarcane because of drought, flood or other natural disaster, or 
other condition beyond the control of the producers) in the 
immediately preceding year, by 
"(B) 75 percent of the farm program payment yield estab-
lished by the Secretary, by 
"(C) a payment rate equal to 50 percent of the loan and 
purchase level for the crop. 
"(2) If the Secretary determines that because of drought, 
flood, or other natural disaster, or other condition beyond the 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1453 
control of the producers, the total quantity of peanuts, soybeans, 
sugar beets, or sugarcane that the producers are able to harvest 
on any farm is less than the result of multiplying 60 percent of 
the farm program payment 3deld established by the Secretary 
for such crop by the acreage planted for harvest for such crop, 
the Secretary may make a reduced jdeld disaster payment to 
the producers at a rate equal to 50 percent of the loan and 
purchase level for the crop for the deficiency in production 
below 60 percent for the crop. 
"(3) The Secretary may make such adjustments in the amount 
of pa3niients made available under this paragraph with respect 
to an individual farm so as to assure the equitable allotment of 
such payments among producers, taking into account other 
forms of Federal disaster assistance provided to the producers 
for the crop involved.". 
COST REDUCTION OPTIONS 
SEC. 1009. (a) Notwithstanding any other provision of law, i^hen- 7 use I308a. 
ever the Secretary of Agriculture determines that an action au-
thorized under subsection (c), (d), or (e) will reduce the total of the 
direct and indirect costs to the Federal Government of a commodity 
program administered by the Secretary without adversely affecting 
« t s ^ 
income to small- and medium-sized producers participating in such 
f r '" r 
program, the Secretary shall take such action with respect to the 
commodity program involved. 
(b) In the announcement of the specific provisions of any commod- Contract. 
ity program administered by the Secretary of Agriculture, the Sec-
retary shall include a statement setting forth which, if any, of the 
actions are to be initially included in the program, and a statement 
that the Secretary reserves the right to initiate at a later date any 
action not previously included but authorized by this section, includ-
ing the right to reopen and change a contract entered into by a 
producer under the program if the producer voluntarily agrees to 
the change. 
(c) When a nonrecourse loan program is in effect for a crop of a Loans. 
commodity, the Secretary may enter the commercial market to 
purchsise such commodity if the Secretary determines that the cost 
of such purchases plus appropriate carrying charges will probably 
be less than the comparable cost of later acquiring the commodity 
through defaults on nonrecourse loans under the program. 
(d) When the domestic market price of a commodity for which a 
Loans. , 
nonrecourse loan program is in effect is insufficient to cover the 
principal and accumulated interest on a loan made under such 
program, thereby encouraging default by a producer, the Secretary 
may provide for settlement of such loan and redemption by the 
producer of the commodity securing such loan for less than the total 
of the principal and all interest accumulated thereon if the Sec-
retary determines that such reduction in the settlement price will 
yield savings to the Federal Government due to— 
(1) receipt by the Federal Government of a portion rather 
than none of the accumulated interest; 
(2) avoidance of default; or 
(3) elimination of storage, handling, and carrying charges on 
Prohibition. 
the forfeited commodity, 
but the Secretary may not reduce the settlement price to less than 
the principal due on the loan. 
99 STAT. 1454 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loan. 
(e) When a production control or loan program is in effect for a 
crop of a major agricultural commodity, the Secretary may at any 
time prior to harvest reopen the program to participating producers 
for the purpose of accepting bids from producers for the conversion 
of acreage planted to such crop to diverted acres in return for 
pa3nnent in kind from Commodity Credit Corporation surplus stocks 
of the commodity to which the acreage was planted, if the Secretary 
determines that (1) changes in domestic or world supply or demand 
conditions have substantially changed after announcement of the 
program for that crop, and (2) without action to further adjust 
production, the Federal Government and producers will be faced 
with a burdensome and costly surplus. Such payments in kind shall 
not be included within the payment limitation of $50,000 per person 
established under section 1001 of this Act, but shall be limited to a 
total $20,000 per year per producer for any one commodity. 
(f) The authority provided in this section shall be in addition to, 
and not in place of, any authority granted to the Secretary under 
any other provision of law. 
Contracts. 
7 u s e 1445i. 
Ck)ntract. 
Regulations. 
MULTIYEAR SET-ASIDES 
SEC, 1010. Notwithstanding any other provision of law: 
(1) The Secretary of Agriculture may enter into multiyear set-
aside contracts for a period not to extend beyond the 1990 crops. 
Such contracts may be entered into only as a part of the programs in 
effect for the 1986 through 1990 crops of wheat, feed grains, upland 
cotton, and rice, and only producers participating in one or more of 
such programs shall be eligible to contract with the Secretary under 
this section. Producers agreeing to a multiyear set-aside agreement 
shall be required to devote the set-aside acreage to vegetative cover 
capable of maintaining itself through such period to provide soil 
protection, water quality enhancement, wildlife production, and 
natural beauty. Grazing of livestock under this section shall be 
prohibited, except in areas of a major disaster, as determined by the 
President, if the Secretary finds there is a need for such grazing as a 
result of such disaster. Producers entering into agreements under 
this section shall also agree to comply with all applicable State and 
local laws and regulations governing noxious weed control. 
(2) The Secretary shall provide cost-sharing incentives to farm 
operators for the establishment of vegetative cover, whenever a 
multiyear set-aside contract is entered into under this Section. 
(3) The Secretary may issue such regulations as the Secretary 
determines necessary to carry out this section. 
(4) The Secretary shall carry out the program authorized by this 
section through the Commodity Credit Corporation. 
SUPPLEMENTAL SET-ASIDE AND ACREAGE UMITATION AUTHORITY 
SEC. 1011. Effective for the 1986 through 1990 crops of wheat and 
feed grains, section 113 of the Agricultural Act of 1949 (7 U.S.C. 
1445h) is amended to read as follows: 
SUPPLEMENTAL SET-ASIDE AND ACREAGE UMITATION AUTHORITY 
"SEC. 113. Notwithstanding any other provision of law or prior 
announcement made by the Secretary to the contrary, the Secretary 
may announce and provide for a set-aside or acreage limitation 
^ I'i'^^'v^'^is*^ • 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1455 
program under section 105C or 107D for one or more of the 1986 
through 1990 crops of wheat and feed grains if the Secretary deter-
mines that such action is in the public interest as a result of the 
imposition of restrictions on the export of any such commodity by 
the President or other member of the executive branch of the 
Federal Government. To carry out effectively a set-aside or acreage 
limitation program authorized under this section, the Secretary may 
make such modifications and adjustments in such program as the 
Secretary determines necessary because of any delay in instituting 
such program.". 
Ante, pp. 1395, 
1383. 
PRODUCER RESERVE PROGRAM FOR WHEAT AND FEED GRAINS 
SEC. 1012. (a) Except as provided by subsection (b), effective begin-
ning with the 1986 crops, section 110 of the Agricultural Act of 1949 
(7 U.S.C. 1445e) is amended b y -
C
D in the first sentence of subsection (a)— 
(A) striking out "and" after "supply" and inserting in 
lieu thereof a comma; and 
(B) inserting before the period at the end thereof the 
following: ", and provide for adequate, but not excessive, 
carryover stocks to ensure a reliable supply of the 
"
: 
commodities"; 
(2) in the third sentence of subsection (b)— 
(A) in clause (1), striking out "nor more than five years" 
and inserting in lieu thereof ", with extensions as war-
rgmted by market conditions"; 
(B) in clause (4), striking out "before the market price for 
wheat or feed grains has reached" and inserting in lieu 
thereof "when the total amount of wheat or feed grains in 
storage under programs under this section is below the 
upper limits for such storage as set forth in clauses (A) and 
(B) of subsection (eX2) and the market price for wheat or 
feed grains is below"; 
(C) in clause (5), striking out "a specified level, as deter-
mined by the Secretary" and inserting in lieu thereof "the 
higher of 140 percent of the nonrecourse loan rate for the 
commodity or the established price for such commodity, as 
determined under title I"; 
(3) adding at the end of subsection (b) the following: 
"Whenever— 
"(AXi) the total quantity of wheat stored under storage pro-
grams established under this section is less than. 17 percent of 
the estimated total domestic and export usage of wheat during 
the then current marketing year for wheat, as determined by 
the Secretary; or 
"(ii) the total quantity of feed grains stored under storage 
programs established under this section is less than 7 percent of 
the estimated total domestic and export usage of feed grains 
during the then current marketing year for feed grains, as 
determined by the Secretary; and 
"(B) the market price of the commodity, as determined by the 
Secretary, does not exceed 140 percent of the nonrecourse loan 
rate for the commodity; 
the Secretary shall encourage participation in the programs au-
thorized under this section by offering producers increased storage 
payments and loan levels, interest waivers, or such other incentives 
Loans. 
Loans. 
STAT. 1456 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
7 u s e 1445e 
note. 
as the Secretary determines necessary to maintain the total amount 
of storage under the programs at the levels specified in clauses (A) 
and (B). The Secretary shall ensure that producers are afforded a 
fair and equitable opportunity to participate in each producer stor-
age program, taking into account regional differences in the time of 
harvest."; and 
(4) in subsection (e)— 
(A) inserting "(1)" after the subsection designation; 
* 1 
(B) inserting before the period at the end of the second 
sentence the following: ", subject to the upper limits on the 
total quantity of wheat and feed grains that may be stored 
under storage programs established under this section set 
out in paragraph (2)"; 
;' -r 
(C) striking out the third sentence; and 
iriK" ' 
(D) adding at the end thereof the following new 
paragraph: 
"(2) Prior to the harvest of each crop of wheat and feed grains, the 
Secretary shall determine and establish upper limits on the total 
quantity of wheat and feed grains that may be stored under storage 
programs established under this section to be effective during the 
marketing year for such crop, as follows: 
"(A) The upper limit on the total quantity of wheat that may 
be stored under such programs shall not exceed 30 percent of 
the estimated total domestic and export usage of wheat during 
the marketing year for the crop of wheat, as determined by the 
Secretary. 
"(B) The upper limit on the total quantity of feed grains that 
may be stored under such programs shall not exceed 15 percent 
of the estimated total domestic and export usage of feed grains 
during the marketing year for the crop, as determined by the 
Secretary. 
"(C) Notwithstanding clauses (A) and (B), the Secretary may 
establish the upper limits at higher levels—not in excess of 110 
percent of the levels determined under clauses (A) and (B)—if 
the Secretary determines that the higher limits are necessary to 
achieve the purposes of this section.". 
(b) The amendment made by subsection (aX2XB) of this section 
shall take effect with respect to any loan made under section 110 of 
the Agricultural Act of 1949 (7 U.S.C. 1445e) the date for repayment 
of which occurs after the date of enactment of this Act. 
EXTENSION OF THE RESERVE 
"SEC. 1013. Section 302(i) of the Food Security Wheat Reserve Act 
of 1980 (7 U.S.C. 1736f-l(i)) is amended by striking out "1985" both 
places it appears and inserting in lieu thereof "1990". 
Loans. 
NORMALLY PLANTED ACREAGE 
SEC. 1014. Section 1001 of the Food and Agriculture Act of 1977 (7 
U.S.C. 1309) is amended by— 
(1) striking out "1985" each place it appears and inserting in 
lieu thereof ^'1990"; and 
(2) adding at the end thereof the following new subsection: 
"(c) Notwithstanding any other provision of law, whenever 
marketing quotas are in effect for any of the 1987 through 1990 
crops of wheat, the Secretary of Agriculture may require, as a 
^'•i<H«e*3N&fc''.' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1457 
condition of eligibility for loans, purchases, and pa3mients on any 
,,,, 
commodity under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), 
that the acreage normally planted to crops designated by the Sec-
retary, adjusted as considered necessary by the Secretary to be fair 
and equitable among producers, shall be reduced by a quantity equal 
to— 
"(1) the acreage that the Secretary determines would nor-
mally be planted to wheat on a farm; minus 
"(2) the individual farm program acreage for the farm under 
section 107D(dX3XA) of such Act.". 
Ante, p. 1383. 
SPECIAL GRAZING AND HAY PROGRAM 
SEC. 1015. (a) Section 109 of the Agricultural Act of 1949 (7 U.S.C. 
1445d) is amended by striking out "1985" in the first sentence of 
subsection (a) and inserting in lieu thereof "1990". 
ADVANCE ANNOUNCEMENT OF PROGRAMS 
SEC. 1016. Section 406 of the Agricultural Act of 1949 (7 U.S.C. 
1426) is amended by 
(1) inserting "(a)" after the section designation; and 
(2) adding at the end thereof the following new subsection: 
"(bXl) Notwithstanding any other provision of this Act, the Sec-
retary of Agriculture may offer an option to producers of the 1987 
ji jiu- ; 
through 1991 crops of wheat, feed grains, upland cotton and rice 
with respect to participation in commodity price support, production 
adjustment, and payment programs as provided in this subsection. 
'^'(2) With respect to the 1987 through 1991 crops of wheat, feed 
grains, upland cotton, and rice, in any county in the United States, 
if the Secretary has not made final announcement of the terms of 
the commodity price support production adjustment, and pajmaent 
program for wheat, feed grains, upland cotton, or rice on or before 
the later o
f
— 
"(A) 60 days prior to the normal planting date of such 
^ commodity in such county, as determined by the Secretary; or 
J 
"(BXl) in the case of wheat, June 1 of the calendar year prior 
r, to the crop year for which such program is announced; 
"(ii) in the case of feed grains, ^ptember 30 of the calendar 
year prior to the crop year for which such program is an-
nounced; 
"(iii) in the case of upland cotton, November 1 of the calendar 
year prior to the crop year for which such program is an-
nounced; and 
"(iv) in the case of rice, January 31 of the calendar year that 
is the same as the crop year for which such program is 
announced, 
than the Secretary may permit producers of any such commodity in 
such county to elect to receive price support, payments, or other 
program benefits as provided in (I) the program announced for such 
commodity for the current crop year or (II) paragraph (3). 
"(3XAXi) The Secretary may permit producer eligible to make the 
election provided by this subsection to participate in the program 
described in this paragraph or, at the discretion of the Secretary, the 
program announced for the commodity for the current crop year, by 
compl3ring with the terms of the program announced for the preced-
ing crop of the commodity. 
99 STAT. 1458 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loans. 
Prohibition. 
"(BXi) Except as provided in clause (ii), the Secretary may make 
available to producers of a commodity who exercise the election 
provided by this subsection and who comply fully with the terms 
and conditions of any acreage reduction program established for the 
preceding year's crop of the commodity— 
"(I) loans and purchsises at the level established for the crop 
for which the election is made; 
"(II) deficiency pajnnents calculated on the same basis as the 
deficiency payments which were calculated for the crop imme-
diately preceding the crop with respect to which the election is 
made; and 
"(III) payments equal to the difference between the level of 
loans and purchases for the crop with respect to which the 
election is made and the level of loans and purchases for the 
crop immediately preceding the crop with respect to which the 
election is made. 
Payments authorized by subclause (III) of the preceding sentence 
shall be made in the form of cash or in-kind commodities. 
"(ii) In the case of the 1991 crop, the Secretary shall make 
available to producers of a commodity who exercise the election 
provided by this section and who comply fully with the terms and 
conditions of any acreage reduction program established for the 
1990 crop of the commodity— 
"(I) loans and purchases at the level established for the 1991 
crop under legislation enacted subsequent to the date of the 
enactment of the Food Security Act of 1985, except that if 
legislation is enacted subsequent to the enactment of such Act 
which provides that loans and purcheises shall not be made with 
respect to the 1991 crop of a commodity, the Secretary may 
make available to producers of such commodity eligible for the 
election provided by this subsection loans and purchases at the 
level determined for the 1990 crop, or if legislation is not 
enacted subsequent to the enactment of such Act which pro-
vides that loans and purchases shall be made with respect to the 
1991 crop of any such commodity, and if loans and purchases 
are available to producers of such commodity under laws pre-
. viously enacted, none of the provisions of this section shall 
, apply to the 1991 crop; 
"(II) deficiency payments calculated on the basis of the estab-
, lished price for the commodity determined for the 1990 crop; 
s and 
"(III) payments equal to the difference between the level of 
' 
loans and purchases that the producer is eligible to receive 
under subclause (I) for such commodity for the 1991 crop and 
the level of loans and purchases determined for such commodity 
for the 1990 crop. 
Pajmtients authorized by subclause (III) of the preceding sentence 
shall be made in cash or in the form of in-kind commodities. 
"(C) The Secretary shall consider the crop acreage base and farm 
program pajnnent yield for any farm with respect to which a 
producer exercises the election provided by this section to be equal 
to the crop acreage base and farm program payment yield that was 
established, or would have been established, for such farm for the 
year preceding the year for which the election is made.". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1459 
Loans. 
7 u s e 1422, 
1423, 1426, 1427, 
1431. 
7 u s e 1421. 
.,;; 
. 
DETERMINATIONS OF THE SECRETARY 
SEC. 1017. (a) The first sentence of section 385 of the Agricultural 7 use 1385 note. 
Adjustment Act of 1938 (7 U.S.C. 1385) is amended by inserting 
"extra long staple cotton," after "upland cotton,". 
(b) The Secretary of Agriculture shall determine the rate of loans. Loans. 
payments, and purchases under a program established under the 
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for any of the 1986 
through 1990 crops of a commodity without regard to the require-
ments for notice and public participation in rulemaking prescribed 
in section 553 of title 5, United States Code, or in any directive of the 
Secretary. 
APPLICATION OF TERMS IN THE AGRICULTURAL ACT OF 1949 
SEC. 1018. Effective only for the 1986 through 1990 crops of wheat, 
feed grains, upland cotton, and rice, subsection (k) of section 408 of 
the Agricultural Act of 1949 (7 U.S.C. 1428(k)) is amended to read as 
follows: 
"(kXD Reference made m sections 402, 403, 406, 407, and 416 to 
the terms 'support price', 'level of support', and 'level of price 
support' shall be considered to apply as well to the loan and 
purchase level for wheat, feed grains, upland cotton, and rice under 
this Act. 
"(2) References made to the terms 'price support', 'price support Loans 
operations', and 'price support program' in such sections and in 
section 401(a) shall be considered as applying as well to loan and 
purchase operations for wheat, feed grains, upland cotton, and rice 
under this Act.". 
NORMAL SUPPLY 
SEC. 1019. Notwithstanding any other provision of law, if the 7 use I3i0a. 
Secretary of Agriculture determines that the supply of wheat, com, 
upland cotton, or rice for the marketing year for any of the 1986 
through 1990 crops of such commodity is not likely to be excessive 
and that program measures to reduce or control the planted acreage 
of the crop are not necessary, such a decision shall constitute a 
determination that the total supply of the commodity does not 
exceed the normal supply and no determination to the contrary 
shall be made by the Secretary with respect to such commodity for 
such marketing year. 
MARKETING YEAR FOR CORN 
SEC. 1020. Section 301(bX7) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1301(bX7)) is amended by striking out "Com, October 
1-September 30;" and inserting in lieu thereof Corn, September 1-
August 31;". 
FEDERAL CROP INSURANCE CORPORATION EMERGENCY FUNDING 
AUTHORITY 
SEC. 1021. Section 516(cXl) of the Federal Crop Insurance Act (7 
U.S.C. 1516(cXl)) is amended by striking out the last sentence. 
CROP INSURANCE STUDY 
SEC. 1022. (a) The Secretary of Agriculture shall conduct a study— 
99 STAT. 1460 
PUBLIC LAW 99-198—DEC. 23, 1985 
,st 
(1) of the practice of offsetting the quantity of winter and 
,., ,, 
spring wheat of a producer for the purpose of determining the 
• 
amount of benefits due such producer under a policy insured 
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.); 
and 
' '
^
^ "'^ 
(2) of the feasibility and desirpbility of including winterkill of 
winter wheat as a loss covered by crop insurance under such 
Act. 
Report. 
(b) Not later than 180 days after the date of enactment of this Act, 
Regulations. 
the Secretary shall report to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate on the results of the study con-
ducted under subsection (a), together with any recommendations for 
any legislation or regulations necessary to rectify any inequities 
identified in such study. 
NATIONAL AGRICULTURAL COST OF PRODUCTION STANDARDS REVIEW 
BOARD 
- •' 
SEC. 1023. (a) Subsection (c) of section 1006 of the Agriculture and 
^»r ^. 
Food Act of 1981 (7 U.S.C. 4102(c)) is amended to read as follows: 
"(c) A person may serve as a member of the Board for one or more 
terms.". 
(b) Section 1014 of such Act (7 U.S.C. 4110) is amended by striking 
out "1985" and inserting in lieu thereof "1990". 
; „ 
.. 
UQUID FUELS 
SEC. 1024. Section 423(a) of the Agricultural Act of 1949 (7 U.S.C. 
1433b) is amended by striking out all after "the Commodity Credit 
,0 
'>;*i 
Corporation" and inserting in lieu thereof the following: "the Cor-
poration may, under terms and conditions established by the Sec-
retary, make its accumulated stocks of agricultural commodities 
available, at no cost or reduced cost, to encourage the purchase of 
such commodities for the production of liquid fuels and agricultural 
commodity byproducts. In carrying out the program established by 
this section, the Secretary shall ensure, insofar as possible, that any 
use of agricultural commodities made available be made in sucn 
manner as to encourage increased use and avoid displacing usual 
marketings of agricultural commodities.". 
SUBTITLE B—UNIFORM BASE ACREAGE AND YIELD PROVISIONS 
1 
ACREAGE BASE AND PROGRAM YIELD SYSTEM FOR THE WHEAT, FEED 
"
? 
GRAIN, UPLAND COTTON, AND RICE PROGRAMS 
SEC. 1031. Effective for the 1986 through 1990 crops of wheat, feed 
grains, upland cotton, and rice, the Agricultural Act of 1949 (7 
U.S.C. 1421 et seq.) is amended by inserting after title IV the 
following new title: 
"TITLE V—ACREAGE BASE AND PROGRAM YIELD SYSTEM 
FOR THE WHEAT, FEED GRAIN, UPLAND COTTON, AND 
RICE PROGRAMS 
7 use 1461. 
"SEC. 501. The purpose of this title is to prescribe a system for 
establishing farm and crop acreage bases and program yields for the 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1461 
wheat, feed grain, upland cotton, and rice programs under this Act 
that is efficient, equitable, flexible, and predictable. 
"SEC. 502. For purposes of this title— 
7 use 1462. 
"(1) the term 'program crop' means any crop of wheat, feed 
iy 
grains, upland cotton, or rice; and 
"(2) the term 'county committee' means the county committee 
fi 
established under section 8(b) of the Soil Conservation and 
I 
Domestic Allotment Act (16 U.S.C. 590h(b)) for the county in 
which the farm is administratively located. 
"SEC. 503. (aXD Except as provided in parc^aph (2), the Secretary 
7 use 1463. 
shall provide for the establishment and maintenance of farm acre-
age bases for the 1986 and subsequent crop years. 
"(2) With respect to the 1986 crop year, the Secretary may forgo 
the establishment of farm acreage bases under this title. 
"(bXD The county committee, in accordance with regulations Regulations. 
prescribed by the Secretary, shall determine the farm acreage base 
for a farm for a crop year. Such farm acreage base shall include the 
number of acres equal to the sum of the crop acreage bases for the 
farm. 
- . 
"(2) In the case of farm acreage bases established for the 1987 and 
subsequent crop years, the determination of the farm acreage base 
shall also include (in addition to the crop acreage bases for the farm) 
the sum of (A) the average of the acreage on the farm planted to 
soybeans in the 1986 and subsequent crop years, and (B) the average 
of the acre£ige on the farm devoted by the producer to a conserving 
use in the normal course of farming operations in the 1986 and 
subsequent crop years. 
"SEC. 504. (aXD The Secretary shall provide for the establishment 
and maintenance of crop acreage bases for each program crop, 
including any progrsun crop produced under an established practice 
of double cropping. The sum of the crop acreage bases for all 
program crops produced on any farm for any crop year shall not 
exceed the farm acreage base for such farm for such crop year, 
except to the extent that the excess is due to an established practice 
of double cropping. 
"(2) The term 'double cropping' means a farming practice, as 
defined by the Secretary, which has been carried out on a farm in at 
least 3 of the 5 crop years immediately preceding the crop year for 
which the crop acreage base for the farm is established. 
"(bXlXA) Except as provided in subparagraph (B), the crop acreage 
base for a program crop for any farm for the 1986 and subsequent 
crop years shall be the number of acres that is equal to the average 
of the acreage planted emd considered planted to such program crop 
for harvest on the farm in each of the five crop years preceding such 
crop year. 
"(BXi) In the case of upland cotton and rice, except as provided in 
clause (ii), if no planted and considered planted acreage has been 
established for a farm for each of the five crop years preceding such 
crop year, the crop acreage base for such crop shall be equal to the 
average of the acreage planted and considered planted to such crop 
for harvest on the farm in each of the five crop years preceding such 
crop year, excluding all crop years in which planted and considered 
planted acreage was not established for the farm. 
"(ii) Any crop acreage base established in accordance with para- 
Prohibition. 
graph (IXA) and paragraph (IXBXi) shall not exceed a number of 
acres equal to the average of the acreage planted and considered 
Prohibition. 
7 use 1464. 
•no;;'! 
99 STAT. 1462 
PUBLIC LAW 99-198—DEC. 23, 1985 
planted to such crop for harvest on the farm in each of the two crop 
years preceding such crop year. 
"(2) The acreage considered planted to a program crop shall 
include— 
"(A) any reduced acreage, set-aside acreage, and diverted 
' acreage on the farm; 
"(B) any acreage on the farm that producers were prevented 
from planting to such crop because of drought, flood, or other 
natural disaster, or other condition beyond the control of the 
j ; 
, ^ 
producers; 
"(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 planted to 
a nonprogram crop, other than soybeans and extra long staple 
cotton; and 
"(D) any acreage on the farm which the Secretary determines 
is necessary to h^ included in establishing a fair and equitable 
crop acreage base. 
Regulations. 
"(3) For the purpose of determining the crop acreage base for the 
1986 and subsequent crop years for any farm, the county committee, 
in accordance with regulations prescribed by the Secretary, may 
construct a planting history for such crop if— 
"(A) planting records for such crop for any of the five crop 
years preceding such crop year are incomplete or unavailable; 
or 
"(B) during at least one but not more than four of the five 
crop years preceding such crop year, the program crop was not 
, .:,, , ., 
produced on the farm. 
r; : 
"(c) The Secretary may make adjustments to reflect crop rotation 
practices and to reflect such other factors as the Secretary deter-
mines should be considered in determining a fair and equitable crop 
acreage base. 
"(d) If a county committee determines, in accordance with regula-
tions prescribed by the Secretary, that the occurrence of a natural 
disaster or other similar condition beyond the control of the pro-
ducer prevented the planting of a program crop on any farm within 
the county (or substantially destroyed any such program crop after 
it had been planted but before it had been harvested), the producer 
may plant any other crop, including any other program crop, on the 
acreage of such farm that, but for the occurrence of such disaster or 
other condition, would have been devoted to the production of a 
progam crop. For purposes of determining the farm acreage base or 
the crop acreage base, any acreage on the farm on which a sub-
stitute crop, including any program crop, is planted under this 
subsection shall be taken into account as if such acreage had been 
planted to the program crop for which the other crop was 
substituted. 
Prohibition. 
"SEC. 505. (a) The Secretary may provide for an upward adjust-
7 use 1465. 
ment of any crop acreage base for any farm for any crop year. 
Except as provided in subsection (b), such adjustment may not 
exceed the number of acres that is equal to 10 percent of the farm 
acreage base for such farm for such crop year. Any upward adjust-
ment in a crop acreage base must be offset by an equivalent 
downward adjustment in one or more other crop acreage bases 
• ' 
established for the farm for such crop year. 
"(b) The Secretary may suspend, on a nationwide basis, any 
limitation contained in subsection (a) with respect to the crop 
^f^'XZ^^Mjt 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1463 
acreage base for any program crop if the Secretary determines 
that— 
"(1) a short supply or other similar emergency situation exists 
with respect to the program crop; or 
"(2) market factors exist that require the suspension of the 
limitation to achieve the purposes of the prc^am. 
"SEC. 506. (a) The Secretary shall provide for the establishment of 
a farm program payment yield for each farm for each program crop 
for each crop year. 
"(bXD Except as provided in paragraph (2), the farm program 
payment 5deld for each of the 1986 and 1987 crop years shall hie the 
average of the farm program payment jrields for the farm for the 
1981 through 1985 crop years, excluding the year in which such 
yield was the highest and the year in which such )deld was the 
lowest. 
"(2) If no crop of the commodity was produced on the farm or no 
farm program pa3mtient yield was established for the farm for any of 
the 1981 through 1985 crop years, the farm program payment yield 
shall be established on the basis of the average farm program 
pavment jdeld for such crop years for similar farms in the area. 
(3) If the Secretary determines such action is necessary, the 
Secretary may establish national. State, or county program payment 
jdelds on the basis of— 
"(A) historical jdelds, as adjusted by the Secretary to correct 
for abnormal factors affecting such jdelds in the historical 
period; or 
"(B) the Secretary's estimate of actual jdelds for the crop year 
involved if historical yield data is not available. 
"(4) If national. State, or county program payment yields are 
established, the farm program pa)mient yields shall balance to the 
national, State, or county program pa)ntnent jdelds. 
"(cXD With respect to the 1988 and subsequent crop years, the 
Secretary may (A) establish the farm program payment jdeld as 
provided in subsection Ot)), or (B) establish a farm program payment 
yield for any program crop for any farm on the basis of the average 
of the yield per harvested acre for the crop for such farm for each of 
the five crop years immediately preceding such crop year, excluding 
the crop year with the highest yield per harvested acre, the crop 
year with the lowest yield per harvested acre, and any crop year in 
which such crop was not planted on the farm. For purposes of the 
preceding sentence, the farm program payment yield for the 1983 
through 1986 crop years and the actual 3deld per harvested acre 
with respect to the 1987 and subsequent crop years shall be used in 
determining farm program pa3mient jdelds. 
"(2) The county committee, in accordance with regulations pre-
scribed by the Secretary, may adjust any program 3deld for any 
program crop for any farm if the program yield for the crop on the 
farm does not accurately reflect the productive potential of the farm 
because of the occurrence of a natural disaster or other similar 
condition beyond the control of the producer. 
"(d) In the case of any farm for which the actual yield per 
harvested acre for any program crop referred to in subsection (cXD 
for any crop year is not available, the county committee may assign 
the farm a yield for the crop for such crop year on the basis of actual 
yields for the crop for such crop year on similar farms in the area. 
"SEC. 507. Effective for each of the 1986 and subsequent crop 
years, each county committee, in accordance with regulations pre-
7 use 1466. 
Regulations. 
Regulations. 
7 use 1467. 
51-194 O 
QL. 3 
Part 2 
99 STAT. 1464 
PUBLIC LAW 99-198—DEC. 23, 1985 
scribed by the Secretary, may require any producer who seeks to 
establish a farm acreage base, crop acreage base, or farm program 
pajnnent yield for a farm for a crop year to provide planting and 
production history of such farm for each of the five crop years 
immediately preceding such crop year. 
Regulations. 
"SEC. 508. Each county committees may, in accordance with regu-
7 use 1468. 
lations prescribed by the Secretary, provide for the establishment of 
a farm acreage base, crop acreage base, and farm program payment 
yield with respect to any farm administratively located within the 
• county if such farm acreage base, crop acreage base, or farm pro-
gram payment yield cannot otherwise be established under this 
title. Such bases and farm program payment yields shall be estab-
lished in a fair and equitable manner, but no such bases or farm 
program payment yields shall be established for a farm if the 
producer on such farm is subject to sanctions under any provision 
of Federal law for cultivating highly erodible land or converted 
wetland. 
7 use 1469. 
"SEC. 509. The Secretary shall establish an administrative appeal 
procedure which provides for an administrative review of deter-
minations made with respect to farm acreage bases, crop acreage 
bases, and farm program payment yields.". 
Subtitle C—Honey 
Loans. 
HONEY PRICE SUPPORT 
SEC, 1041. Effective only for the 1986 through 1990 crops of honey, 
subsection (b) of section 201 of the Agricultural Act of 1949 (7 U.S.C. 
1446) is amended to read as follows: 
"(b)(1) For each of the 1986 through 1990 crops of honey, the price 
of honey shall be supported through loans, purchases, or other 
operations £is follows: 
"(A) For the 1986 crop, the loan and purchase level for honey 
shall be 64 cents per pound. 
"(B) For the 1987 crop, the loan and purchase level for honey 
shall be 63 cents per pound. 
"(C) For each of the 1988, 1989, and 1990 crops, the loan and 
purchase level for honey shall be the same as the level estab-
lished for the preceding crop year reduced by 5 percent, except 
that such level may not be less than an amount equal to 75 
percent of the simple average price received by producers of 
honey in the 5 preceding crop years, excluding the year in 
which the average price was the highest and the year in which 
the average price was the lowest in such period. 
"(2) The Secretary may permit a producer to repay a loan made to 
the producer under this subsection for a crop at a level that is the 
lesser of— 
"(A) the loan level determined for such crop; or 
. 
r 
"(B) such level as the Secretary determines will— 
"(i) minimize the number of loan forfeitures; 
"(ii) not result in excessive total stocks of honey; 
"(iii) reduce the costs incurred by the Federal Govern-
ment in storing honey; and 
"(iv) maintain the competitiveness of honey in domestic 
and export markets. 
"(3)(A) If the Secretary determines that a person has knowingly 
pledged adulterated or imported honey as collateral to secure a loan 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1465 
made under this subsection, such person shall, in addition to any 
other penalties or sanctions prescribed by law, be ii*eligible for a 
loan, purchase, or pajrment under this subsection for the 3 crop 
years succeeding such determination. 
"(B) For purposes of subparagraph (A), honey shall be considered 
adulterated i
f
— 
"(i) any substance has been substituted wholly or in part for 
such honey; 
"(ii) such honey contains a poisonous or deleterious substance 
that may render such honey injurious to health, except that in 
any case in which such substance is not added to such honey, 
such honey shall not be considered adulterated if the quantity 
of such substance in or on such honey does not ordinarily render 
it injurious to health; or 
"(iii) such honey is for any other reason unsound, unhealthy, 
unwholesome, or otherwise unfit for human consumption.'. 
TITLE XI—TRADE 
Subtitle A—Public Law 480 and Use of Surplus Commodities in 
International Programs 
TITLE n OF PUBLIC LAW 480—FUNDING LEVELS 
SEC. 1101. Effective October 1, 1985, section 204 of the Agricul- Effective date, 
tural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724) 
is amended by— 
(1) striking out "calendar" both places it appears in the first 
sentence and inserting in lieu thereof "fiscal"; and 
(2) inserting after the first sentence the following: "The Presi-
dent may waive the limitation in the preceding sentence if the 
President determines that such waiver is necessary to under-
take programs of assistance to meet urgent humanitarian 
needs.'. 
MINIMUM QUANTITY OF AGRICULTURAL COMMODITIES DISTRIBUTED 
UNDER TITLE II 
SEC. 1102. Section 201(b) of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1721(b)) is amended to read as 
follows: 
"(b) The minimum quantity of agricultural commodities distrib-
uted under this title for each of the fiscal years ending September 
30,1987, September 30,1988, September 30,1989, and September 30, 
1990, shall be 1,900,000 metric tons, of which not less than 1,425,000 
metric tons for nonemergency programs shall be distributed 
through nonprofit voluntary agencies, cooperatives, and the World 
Food Program; unless the President determines and reports to the 
Congress, together with his reasons, that such quantity cannot be 
used effectively to carry out the purposes of this title.". 
TITLE II OF PUBUC LAW 480—MINIMUM FOR FORTIFIED OR PROCESSED 
FOOD AND NONPROFIT AGENCY PROPOSAI5 
SEC. 1103. Section 201 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1721) is amended by adding at the 
end thereof the following new subsection: 
99 STAT. 1466 
PUBLIC LAW 99-198—DEC. 23, 1985 
President of U.S. 
"(cXD Except as provided in paragraph (2), in distributing agricul-
tural commodities under this title, the President shall— 
"(A) consider— 
"(i) the nutritional assistance to recipients and benefits to 
the United States that would result from distributing such 
commodities in the form of processed and protein-fortified 
products, including processed milk, plant protein products, 
and fruit, nut, and vegetable products; 
"(ii) the nutritional needs of the proposed recipients of 
the commodities; 
"(iii) the cost effectiveness of providing such commodities, 
': ' 
for purposes of selecting commodities for distribution under 
nonemergency programs; and 
"(iv) the purposes of this title; and 
' 
"(B) ensure that at least 75 percent of the quantity of agricul-
tural commodities required to be distributed each fiscal year 
under subsection (b) for nonemergency programs be in the form 
of processed or fortified products or bagged commodities. 
"(2) The President may waive the requirement under paragraph 
(1)(B) or make available a smaller percentage of fortified or proc-
essed food than required under paragraph (IXB) during any fiscal 
year in which the President determines that the requirements of the 
programs established under this title will not be best served by the 
distribution of fortified or processed food in the amounts required 
under paragraph (IXB).". 
7 u s e 1726a. 
7 u s e 1726a 
note. 
FOOD ASSISTANCE PROGRAMS OF VOLUNTARY AGENCIES 
SEC. 1104. (a) Title II of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1721 et seq.) is amended by adding 
at the end thereof the following: 
"SEC. 207. (a) A nonprofit voluntary agency requesting a 
nonemergency food assistance agreement under this title shall in-
clude in such request a description of the intended uses of any 
foreign currency proceeds that would be generated with the 
commodities provided under the agreement. 
"(b) Such agreements shall provide, in the aggregate for each 
fiscal year, for the use of foreign currency proceeds under this 
subsection in an amount that is not less than 5 percent of the 
aggregate value of the commodities distributed under nonemergency 
programs under this title for such fiscal year.". 
(b) Section 207 of the Agricultural Trade Development and Assist-
ance Act of 1954 (£is added by subsection (a)) shall apply with respect 
to agreements entered into after December 31,1985. 
EXTENSION OF THE PUBLIC LAW 480 AUTHORITIES 
SEC. 1105. Section 409 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736c) is amended by— 
(1) striking out "1985" in the first sentence and inserting in 
lieu thereof "1990"; and 
(2) in the second sentence— 
(A) striking out "amendment" and inserting in lieu 
thereof "amendments"; and 
(B) inserting "and the Food Security Act of 1985" after 
"Agriculture and Food Act of 1981". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1467 
FACILITATION OF EXPORTS 
SEC. 1106. It is the sense of Congress that the President should 
work with the People's Republic of China to facilitate the export of 
agricultural commodities to the People's Republic of China. 
FARMER-TO-FARMER PROGRAM UNDER PUBLIC LAW 480 
SEC. 1107. (a) Notwithstanding any other provision of law, not less 
than one-tenth of 1 percent of the funds available for each of the 
fiscal years ending September 30, 1986, and September 30, 1987, to 
carry out the Agricultural Trade Development and Assistance Act of 
1954 shall be used to carry out paragraphs (1) and (2) of section 
406(a) of that Act. Any such funds used to carry out paragraph (2) of 
section 406(a) shall not constitute more than one-fourth of the funds 
used as provided by the first sentence of this subsection, shall be 
used for activities in direct support of the farmer-to-farmer program 
under paragraph (1) of section 406(a), and shall be administered 
whenever possible in conjunction with programs under sections 296 
through 300 of the Foreign Assistance Act of 1961. 
(b) Not later than 120 days after the date of enactment of this Act, 
the Administrator of the Agency for International Development, in 
conjunction with the Secretary of Agriculture, shall submit to Con-
gress a report indicating the manner in which the Agency intends to 
implement the provisions of paragraphs (1) and (2) of section 406(a) 
of the Agricultural Trade Development and Assistance Act of 1954 
with the funds made available under subsection (a). 
China. 
Prohibition. 
7 u s e 1736 note. 
7 u s e 1691 note. 
7 u s e 1736. 
2 use 
2220a-2220e. 
Report. 
FOOD 
FOR 
DEVELOPMENT PROGRAM 
SEC. 1108. Section 302(cXlXC) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1727a(cXlXC)) is amended 
by striking out "15" and inserting in lieu thereof "10", 
USE OF SURPLUS COMMODITIES IN INTERNATIONAL PROGRAMS 
SEC. 1109. Section 416 of the Agricultural Act of 1949 (7 U.S.C. 
1431) is amended by— 
(1) striking out the last two sentences of subsection (a); and 
(2) amending subsection (b) to read as follows: 
"(bXl) The Secretary, subject to the requirements of paragraph 
(10), may furnish eligible commodities for carrying out programs of 
assistance in developing countries and friendly countries under title 
II of the Agricultural Trade Development and Assistance Act of 1954 
and under the Food for Progress Act of 1985, as approved by the 
Secretary, and for such purposes as are approved by the Secretary. 
To ensure that the furnishing of commodities under this subsection 
is coordinated with and complements other United States foreign 
assistance, assistance under this subsection shall be coordinated 
through the mechanism designated by the President to coordinate 
assistance under the Agricultural Trade Development and Assist-
ance Act of 1954. 
"(2) As used in this subsection, the term 'eligible commodities' 
means— 
"(A) dairy products, grains, and oilseeds acquired by the 
(Dommodity Credit C!orporation through price support oper-
ations that the Secretary determines meet the criteria specified 
in subsection (a); and 
Ante, p. 271. 
Ante, p. 1466. 
Post, p. 1472. 
7 u s e 1691 note. 
99 STAT. 1468 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(B) such other edible agricultural commodities as may be 
acquired by the Secretary or the Commodity Credit Corporation 
^ ' 
in the normal course of operations and that are available for 
disposition under this subsection, except that no such commod-
ities may be acquired for the purpose of their use under this 
subsection. 
"(3XA) Commodities may not be made available for disposition 
under this subsection in amounts that (i) will, in any way, reduce 
i 
the amounts of commodities that traditionally are made available 
through donations to domestic feeding programs or agencies, or (ii) 
will prevent the Secretary from fulfilling any agreement entered 
into by the Secretary under a pa3mient-in-kind program under this 
Act or other Acts administered by the Secretary. 
"(BXi) The requirements of section 401(b) of the Agricultural 
7 use 1731. 
Trade Development and Assistance Act of 1954 shall apply with 
respect to commodities furnished under this subsection. Commod-
ities may not be furnished for disposition to any country under this 
subsection except on determinations by the Secretary that— 
"(I) the receiving country has the absorptive capacity to use 
the commodities efficiently and effectively; and 
Commerce and 
"(II) such disposition of the Commodities will not interfere 
trade. 
with usual marketings of the United States, nor disrupt world 
prices of agricultural commodities and normal patterns of 
commercial trade with developing countries, 
"(ii) The requirement for safeguarding usual marketings of the 
United States shall not be used to prevent the furnishing under this 
subsection of any eligible commodity for use in countries that— 
"(I) have not traditionally purchased the commodity from the 
United States; or 
ij' 
"(II) do not have adequate financial resources to acquire the 
commodity from the United States through commercial sources 
or through concessional sales arrangements. 
"(C) The Secretary shall take reasonable precautions to ensure 
that— 
"(i) commodities furnished under this subsection will not 
displace or interfere with sales that otherwise might be made; 
and 
Commerce and 
"(ii) sales or barter under paragraph (7) will not unduly 
trade. 
disrupt world prices of agricultural commodities nor normal 
patterns of commercial trade with friendly countries. 
"(4) Agreements may be entered into under this subsection to 
provide eligible commodities in installments over an extended 
period of time. 
"(5XA) Section 203 of the Agricultural Trade Development and 
7 use 1723. 
Assistance Act of 1954 shall apply to the commodities furnished 
under this subsection. 
"(B) The Commodity Credit Corporation may pay the processing 
and domestic handling costs incurred, as authorized under this 
subsection, in the form of eligible commodities, as defined in para-
graph (2XA), if the Secretary determines that such in-kind payment 
will not disrupt domestic markets. 
Prohibition. 
"(6) The cost of Commodities furnished under this subsection, and 
expenses incurred under section 203 of the Agricultural Trade 
Development and Assistance Act of 1954 in connection with those 
commodities, shall be in addition to the level of assistance pro-
grammed under that Act and shall not be considered expenditures 
for international affairs and finance. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1469 
"(7) Eligible commodities, and products thereof, furnished under 
this subsection may be sold or bartered only with the approval of the 
Secretary and solely as follows: 
.K ^ 
"(A) Sales and barter that are incidental to the donation of 
the commodities or products. 
"(B) Sales and barter to finance the distribution, handling, 
and processing costs of the donated commodities or products in 
the importing country or in a country through which such 
commodities or products must be transshipped, or other activi-
ties in the importing country that are consistent with providing 
food assistance to needy people. 
"(C) Sales and barter of commodities and products furnished 
to intergovernmental agencies or organizations, insofar as they 
are consistent with normal programming procedures in the 
distribution of commodities by those agencies or organizations. 
:
* 
"(DXi) Sales of commodities and products furnished to non-
profit and voluntary agencies, or cooperatives, for food assist-
ance under agreements that provide for the use, by the agency 
or cooperative, of foreign currency proceeds generated from 
such sale of commodities or products for the purposes estab-
lished in clause (ii) of this subparagraph. 
"(ii) Foreign currency proceeds generated from the sales of Transportation, 
commodities and products under this subparagraph shall be 
used by nonprofit and voluntary agencies, or cooperatives, for 
activities carried out by the agency or cooperative that will 
enhance the effectiveness of transportation, distribution, and 
use of commodities and products donated under this subsection, 
including food for work programs and cooperative and agricul-
tural projects. 
"(iii) Except as otherwise provided in clause (v), such £igree-
ments, taken together for each fiscal year, shall provide for 
ssdes of commodities and products for foreign currency proceeds 
in amounts that are, in the aggregate, not less than 5 percent of 
the aggregate value of all commodities and products furnished 
for carrying out programs of assistance under this subsection in 
such fiscal year. The minimum allocation requirements of this 
clause apply with respect to commodities and products made 
available under this subsection for carrying out programs of 
assisteuice under title II of the Agricultural Trade Development 
and Assistance Act of 1954, and not with respect to commodities 
Ante, p. 1466. 
and products made available to carry out the Food for Progress 
Act of 1985. 
Post, p. 1472. 
"(iv) Foreign currency proceeds generated from the sale of Transportation. 
commodities or products under this subparagraph shall be ex-
pended within the country of origin within one year of acquisi-
tion of such currency, except that the Secretary may permit the 
use of such proceeds (I) in countries other than the country of 
origin as necessary to expedite the transportation of commod-
ities and products furnished under this subsection, and (II) after 
one year of acquisition as appropriate to achieve the purposes of 
clause (i). 
"(v) The provisions of clause (iii) of this subparagraph 
Prohibition, 
establishing minimum annual allocations for sales and use of 
proceeds shall not apply to the extent that there have not been 
sufficient requests for such sales and use of proceeds nor to the 
extent required under paragraph (3). 
99 STAT. 1470 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
Regulations. 
Regulations. 
Reports. 
Commerce and 
trade. 
"(E) Sales and barter to cover expenses incurred under para-
graph (5Xa). 
No portion of the proceeds or services realized from sales or barter 
under this paragraph may be used to meet operating and overhead 
expenses, except as otherwise provided in subparagraph (C) and 
except for personnel and administrative costs incurred by local 
cooperatives. 
"(SKA) To the maximum extent practicable, expedited procedures 
shall be used in the implementation of this subsection. 
"(B) The Secretary shall be responsible for regulations governing 
sales and barter, and the use of foreign currency proceeds, under 
paragraph (7) of this subsection that will provide reasonable safe-
guards to prevent the occurrence of abuses in the conduct of activi-
ties provided for in paragraph (7). 
"(9XA) Each recipient of commodities and products approved for 
sale or barter under paragraph (7) shall report to the Secretary 
information with respect to the items required to be included in the 
Secretary's report pursuant to clauses (i) through (iv) of subpara-
graph (B). Reports pursuant to this subparagraph shall be submitted 
in accordance with regulations of the Secretary. Such regulations 
shall require at least one report annually, to be submitted not later 
than December 31 following the end of the fiscal year in which the 
commodities and products are received; except that a report shall 
not be required with respect to fiscal year 1985. 
"(B) Not later than February 15, 1987, and annually thereafter, 
the Secretary shall report to tihe Congress on sales and barter, and 
use of foreign currency proceeds, under paragraph (7) during the 
preceding fiscal year. Such report shall include information on— 
"(i) the quantity of commodities furnished for such sale or 
barter; 
"(ii) the amount of funds (including dollar equivalents for 
foreign currencies) and value of services generated from such 
sales and barter in such fiscal year; 
"(iii) how such funds and services were used; 
"(iv) the amount of foreign currency proceeds that were used 
under agreements under subparagraph (D) of paragraph (7) in 
such fiscal year, and the percentage of the quantity of all 
commodities and products furnished under this subsection in 
such fiscal year such use represented; 
"(v) the Secretary's best estimate of the amount of foreign 
currency proceeds that will be used, under agreements under 
subparagraph (D) of paragraph (7), in the then current fiscal 
year and the next following fiscal year (if all requests for such 
use are agreed to), and the percentage that such estimated use 
represents of the quantity of all commodities and products that 
the Secretary estimates will be furnished under this subsection 
in each such fiscal year; 
"(vi) the effectiveness of such sales, barter, and use during 
such fiscal year in facilitating the distribution of commodities 
and products under this subsection; 
"(vii) the extent to which sales, barter, or uses— 
"(I) displace or interfere with commercial sales of United 
States agricultural commodities and products that other-
wise would be made, 
"(II) affect usual marketings of the United States, 
"(III) disrupt world prices of agricultural commodities or 
normal patterns of trade with friendly countries, or 
--"smf^'" 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1471 
. - 
"(TV) discourage local production and marketing of agri-
cultural commodities in the countries in which commodities 
and products are distributed under this subsection; and 
"(viii) the Secretary's recommendations, if any, for changes to 
improve the conduct of sales, barter, or use activities under 
parEigraph (7). 
"(lOXA) Subject to the limitations established under paragraph (3), 
the Secretary shall make available for disposition under this subsec-
tion in each of the fiscal years 1986 through 1990 not less than the 
minimum quantities of eligible commodities specified in subpara-
graph (B). 
"(B) The minimum quantity of eligible commodities that shall be 
made available for disposition under this subsection in each fiscal 
year shall be— 
"(i) 500,000 metric tons of grains and oilseeds from the Cor-
poration's uncommitted stocl^, or an amount equal to 10 per-
cent of the Corporation's uncommitted stocks of grains and 
oilseeds as of the end of such fiscal year (as estimated by the 
Secretary), whichever is less; and 
"(ii) 10 percent of the Corporation's uncommitted stocks of 
dairy products, but not less than 150,000 metric tons of such 
products to the extent that uncommitted stocks are available. 
The Secretary shall make such estimation of expected year-end 
levels of the Corporation's uncommitted stocks prior to the begin-
ning of the fiscal year. The Secretary's determination as to the 
amount of the Corporation's stocks that shall be made available for 
disposition under this subsection for such fiscal year shall be pub-
lished in the Federal Register, along with a breakdown by kind of 
commodity and the quantity of each kind of commodity that shall be 
made available, before the beginning of such fiscal year. 
"(C) Of the aggregate amounts made available each fiscal year 
pursuant to both clauses (i) and (ii) of subparagraph (B), not less 
than 75,000 metric tons shedl be made available to carry out the 
Food for Progress Act of 1985. 
"(DXi) The Secretary— 
"(I) may waive the minimum quantity requirements of sub-
paragraphs (A) and (B) for a fiscal year to the extent that the 
Secretary determines and reports to Congress that there are not 
sufficient requests for eligible commodities under this subsec-
tion for such fiscal year, except that the waiver authority of this 
subclause may not be used to waive the minimum quantity 
requirement of subparagraph (C); 
* (II) may waive the minimum quantity requirement of 
subparagraph (C) in accordance with subsection (fX2) of the Food 
for Progress Act of 1985; and 
"(III) may waive the minimum quantity requirements of sub-
paragraphs (A), (B), and (C) for a fiscal year, if the Secretary 
determines that the restrictions on the furnishing of commod-
ities under paragraph (3) prevent the meiking available of 
commodities in such quantities, 
"(ii) For any fiscal year in which the minimum levels of un-
committed Commodity Credit Corporation stocks specified 
in 
subparagraph (B) are not made available and during which any 
requests for commodities under this subsection are rejected, the 
Secretary shall provide a detailed, written explanation to Congress, 
at the end of such fiscal year, of the reasons for the rejections of 
such requests. 
Securities. 
Federal 
Register, 
publication. 
Post, p. 1472. 
Securities. 
99 STAT. 1472 
PUBLIC LAW 99-198—DEC. 23, 1985 
Food for 
Progress Act of 
1985. 
7 u s e 1736o. 
Contracts. 
"(IIXA) The Secretary may furnish eligible commodities under 
this subsection in connection with (i) concessional sales agreements 
entered into under title I of the Agricultural Trade Development 
7 use 1701. 
and Assistance Act of 1954 or other statutes, or (ii) agricultural 
export bonus or promotion programs carried out under the Commod-
15 use 714 note, ity Credit Corporation Charter Act or other statutes. 
"(B) Eligible cominodities may be furnished by the Secretary 
under this subsection in connection with agreements by recipient 
countries to acquire additional agricultural commodities from the 
United States through commercial arrangements. 
Prohibition. 
"(C) The amount of any commodity furnished under subpara-
graphs (A) and (B) of this paragraph in any fiscal year shall not be 
considered for the purpose of determining whether the requirements 
of paragraph (lOXA) of this subsection have been met during such 
fiscal year. . 
FOOD FOR PROGRESS 
SEC. 1110. (a) This section may be cited as the "Food for Progress 
Act of 1985". 
(b) In order to use the food resources of the United States more 
effectively in support of countries that have made commitments to 
introduce or expand free enterprise elements in their agricultural 
economies through changes in commodity pricing, marketing, input 
availability, distribution, and private sector involvement, the Presi-
dent is authorized to enter into agreements with developing coun-
tries to furnish commodities made available pursuant to subsections 
(e) and (f) of this section. Such agreements may provide for commod-
ities to be furnished on a multiyear basis. 
(c) As used in this section, the term "commodities" means agricul-
tural commodities and the products thereof. 
(d) In determining whether to enter into an agreement with 
countries under this section, the President shall consider whether a 
potential recipient country is committed to carry out, or is carrying 
out, policies that promote economic freedom, private, domestic 
production of food commodities for domestic consumption, and the 
creation and expansion of efficient domestic markets for the pur-
chase and sale of such commodities. Such policies may provide for, 
among other things— 
(1) access, on the part of farmers in the country, to private, 
competitive markets for their product; 
(2) market pricing of commodities to foster adequate private 
sector incentives to individual farmers to produce food on a 
regular basis for the country's domestic needs; 
(3) establishment of market-determined foreign exchange 
rates; 
(4) timely availability of production inputs (such as seed, 
fertilizer, or pesticides) to farmers; 
(5) access to technologies appropriate to the level of agricul-
tural development in the country; and 
4; i itrtr 
(6) construction of facilities and distribution systems nec-
essary to handle perishable products. 
(eXD The Commodity Credit Corporation shall make available to 
the President such commodities determined to be available under 
section 401 of the Agricultural Trade Development and Assistance 
7 use 1731. 
Act of 1954 as the President may request for purposes of furnishing 
commodities under this section. 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1473 
(2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation may use funds appropriated to carry out title I of 
the Agricultural Trade Development and Assistance Act of 1954 in 
carrying out this section with respect to commodities made available 
under that Act. 
(8) The Commodity Credit Corporation may finance the sale and 
exportation of commodities, made available under the Agricultural 
Trade Development and Assistance Act of 1954, which are furnished 
to a developing country under this section. Pajrment by a developing 
country for commodities made available under that Act which are 
purchased on credit terms under this section shall be on the same 
basis as the terms provided in section 106 of that Act. 
(4) In the case of commodities made available under the Agricul-
tural Trade Development and Assistance Act of 1954 for purposes of 
this section, section 203 of that Act shall apply to commodities 
furnished on a grant basis to a developing country under this section 
and section 401(b) of that Act shall apply to all commodities fur-
nished to a developing country under this section. 
(fKD Commodities made available under section 416(b) of the 
Agricultural Act of 1949 for use in carrying out this section shall be 
provided to developing countries on a grant basis. 
(2) Not less than 75,000 metric tons shall be made available 
pursuant to section 416(bX10XC) of the Agricultural Act of 1949 to 
carry out this section unless the President determines there are an 
insufficient number of eligible recipients. 
(3) In carr5dng out section 416(b) of the Agricultural Act of 1949, 
the Commodity Credit Corporation may purchase commodities for 
use under this section if— 
(A) the Commodity Credit Corporation does not hold stocks of 
such commodities; or 
(B) Commodity Credit Corporation stocks are insufficient to 
satisfy commitments made in agreements entered into under 
this section and such commodities are needed to fulfill such 
commitments. 
(4) No funds of the Commodity Credit Corporation in excess of 
$30,000,000 (exclusive of the cost of commodities) may be used to 
carry out this section with respect to commodities made available 
under section 416(b) of the Agricultural Act of 1949 unless au-
thorized in advance in appropriation Acts. 
(5) The cost of commodities made available under section 416(b) of 
the Agricultural Act of 1949 which are furnished under this section, 
and the expenses incurred in connection with furnishing such 
commodities, shall be in addition to the level of assistance pro-
grammed under the Agricultural Trade Development and Assist-
ance Act of 1954 and may not be considered expenditures for 
international affairs and finance. 
(g) Not more than 500,000 metric tons of commodities may be 
furnished under this section in each of the fiscal years 1986 through 
1990. 
(h) An agreement entered into under this section shall prohibit 
the resale or transshipment of the commodities provided under the 
agreement to other countries. 
(i) In entering into agreements under this section, the President 
shall take reasonable steps to avoid displacement of any sales of 
United States commodities that would otherwise be made to such 
countries. 
7 use 1701. 
7 use 1691 note. 
7 use 1706. 
7 u s e 1723. 
7 use 1731. 
Ante, p. 271. 
Securities, 
eontracts. 
Prohibition. 
Prohibition. 
Prohibition. 
Prohibition. 
President of U.S. 
99 STAT. 1474 
PUBLIC LAW 99-198—DEC. 23, 1985 
President of U.S. 
(j) Within 90 days after the end of each fiscal year in which an 
Report. 
agreement entered into with a country under this section is in 
effect, the President shall report to the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate on the status of such agreement and the progress being made 
to implement private, free enterprise agricultural policies for long-
term agricultural development in such country. 
Effective date 
(k) TTiis section shall be effective during the period beginning 
October 1,1985, and ending September 30,1990. 
7 use 1708. 
Prohibition. 
SALES FOR LOCAL CURRENCIES; PRIVATE ENTERPRISE PROMOTION 
SEC. 1111, (a) The first sentence of section 2 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691) is 
amended by inserting "to use foreign currencies accruing under this 
Act to foster and encourage the development of private enterprise in 
developing countries; to enhance food security in developing 
countries through local food production;" after 
"agricultural 
production;". 
(b) The Congress finds that additional steps should be taken to use 
the agricultural abundance produced by American farmers— 
(1) to relieve hunger and promote long-term food security and 
economic development in developing countries in accordance 
with the development assistance policy established under sec-
tion 102 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151-1); 
and 
(2) to promote United States agricultural trade interests. 
(c) Section 101 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1701) is amended to read as follows: 
"SEC. 101. (a) In order to carry out the policies and accomplish the 
objectives set forth in section 2 of this Act, the President is au-
thorized to negotiate and carry out agreements with friendly coun-
tries to provide for the sale of agricultural commodities— 
"(1) for dollars on credit terms; 
' "(2) to the extent that sales for dollars under the terms 
applicable to such sales are not possible, for foreign currencies 
on credit terms and on terms that permit conversion to dollars 
at the exchange rate applicable to the sales agreement; or 
"(3) for foreign currencies for use under section 108 on terms 
that permit conversion to dollars. 
"(bXD Except as provided in paragraph (2), for each of the fiscal 
years 1986 through 1990 sales for foreign currencies for use under 
section 108 under agreements entered into under this title shall be 
made at an annual level of not less than 10 percent of the aggregate 
value of all sales of agricultural commodities under this title. 
"(2) The President may reduce the minimum level of sales for 
foreign currencies required under paragraph (1) during any fiscal 
year in which the President determines that the level of agricultural 
commodities furnished under this title will be significantly reduced 
as a result of compliance with the requirement under paragraph (1;. 
"(c) Agreements for sales for foreign currency in a developing 
country for use under section 108 may not be entered into to the 
extent that such agreements would generate currency in amounts 
that cannot be productively used and absorbed in the private sector 
of such country. 
•5%-**' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1475 
7 u s e 1704. 
President of U.S. 
"(d) Sales for foreign currencies for use under section 108 under 7 use 1708 
agreements entered into under this title shall be made on such 
terms and conditions as are specified in such agreements.". 
(d) Section 103 of such Act (7 U.S.C. 1703) is amended— 
(1) by inserting ", in section 108," after "section 104" in 
subsection (b); 
(2) by striking out "for dollars on credit terms" in the last 
sentence of subsection (d); 
(3) in subsection (m)— 
(A) by inserting "except as provided in section 108," after 
(m) ; 
(B) by striking out the semicolon and inserting in lieu 
thereof a period; and 
(C) by adding at the end thereof the following: "In carry-
ing out this subsection, the President shall require that 
foreign currencies to be used under section 108 that are 
acquired under an agreement for the sale of commodities be 
convertible to dollars during the period beginning 10 years 
after the date of the last delivery of such commodities and 
ending 30 years after the date of such delivery. Such 
agreement for sale shall establish a schedule for such 
conversion but need not specify the exchange rate for such 
conversion;"; 
(4) by striking out "for dollars on credit terms" and "for cash 
dollars" in subsection (n); 
(5) by striking out "Take" in subsection (o) and inserting in 
lieu thereof "take"; 
(6) by striking out "Assure convertibility" in subsection (p) 
and inserting in lieu thereof "except as provided in section 108, 
assure convertibility"; and 
(7) by striking out "Assure convertibility" in subsection (q) 
and inserting in lieu thereof "except as provided in section 108, 
assure convertibility". 
(e) The first sentence of section 105 of such Act (7 U.S.C. 1705) is 
amended by striking out "section 104" and inserting in lieu thereof 
"sections 104 and 108". 
(0 Section 106(a) of such Act (7 U.S.C. 1706(a)) is amended by 
adding at the end thereof the following new paragraph: 
"(3) Payment for sales made for foreign currencies that are to be 
used under section 108 under an agreement entered into under this 
title shall be made on such terms as are specified in such 
agreement.". 
(g) Section 106(b) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(4XA) Notwithstanding any other provision of this subsection, 
agreements under this title for the sale of agricultural commodities 
for dollars on credit terms may provide that proceeds from the sale 
of the commodities in the recipient country shall be used for such 
private sector development activities as are mutually agreed upon 
by the United States £md the recipient government. 
"(B) Proceeds used for private sector development activities pursu-
ant to this paragraph shall be deposited in jointly programmed 
accounts to be loaned by the recipient government to one or more 
financial intermediaries operating within the country for use by 
those financial intermediaries for loans to private individuals, pri-
vate and voluntary organizations, corporations, cooperatives, and 
other entities within such country. In the case of a cooperative or 
Loans. 
Corporations. 
Prohibition. 
99 STAT. 1476 
PUBLIC LAW 99-198—DEC. 23, 1985 
7 u s e 1708. 
President of U.S. 
Prohibition. 
President of U.S. 
Loans. 
Corporations. 
Loans. 
private and voluntary organizations, proceeds may be granted to 
defray the startup costs of becoming a financial intermediary. Such 
proceeds shall not be used to promote the production of commodities 
or the products thereof that will compete, as determined by the 
President, in world markets with similar commodities or the prod-
ucts thereof produced in the United States.". 
(h) Such Act is amended by inserting after section 107 (7 U.S.C. 
1707) the following new section: 
"SEC. 108. (aXD In order to foster and encourage the development 
of private enterprise institutions and infrastructure as the base for 
the expansion, promotion, and improvement of the production of 
food and other related goods and services within a developing 
country and pursuant to an agreement for the sale of agricultural 
commodities entered into under this title, the President may enter 
into an agreement with a financial intermediary located or operat-
ing in such country under which the President shall lend to such 
financial intermediary foreign currency that accrues as a result of 
commodity sales to such country under a sales agreement entered 
into under this title after the date of enactment of the Food Security 
Act of 1985, Procurement and other contracting requirements, nor-
mally applicable to appropriated funds, shall not apply to such 
foreign currency. 
"(2) Prior to loaning the foreign currencies as provided in this 
section, the President shall take such steps as may be necessary to 
assure that the availability of such foreign currencies to financial 
intermediaries is adequately publicized within the purchasing 
country. 
"(b) To be eligible to obtain foreign currency under this section, a 
financial intermediary must enter into an agreement with the 
President under which the intermediary agrees to use such currency 
to make loans to private individuals, cooperatives, corporations, or 
other entities within a developing country, at reasonable rates of 
interest, for the purpose of financing— 
"(1) productive, private enterprise investment within such 
} 
country, including such investment in projects carried out by 
cooperatives, nonprofit voluntery organizations, and other enti-
ties found to be qualified by the President; 
"(2) private enterprise facilities for aiding the utilization and 
distribution, and increasing the consumption of and markets 
for. United States agricultural commodities and the products 
thereof; or 
"(3) private enterprise support of self-help measures and 
projects. 
"(c) An agreement entered into under this section shall specify the 
terms and conditions under which the foreign currency shall be 
used and subsequently repaid, including the following terms and 
conditions: 
"(1) A financial intermediary shall, to the maximum extent 
feasible, give preference to the financing of agricultural related 
private enterprise with the funds provided under this section. 
"(2XA) A financial intermediary shall repay a loan made 
under this section, plus accrued interest, at such times and in 
such manner as will permit conversion of such foreign currency 
to dollars in accordance with the schedule for such conversion. 
"(B) A financial intermediary may repay a loan made under 
^ 
this section prior to the repa3mient date specified in such 
agreement. 
.^ 
? 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1477 
Ante, p. 1474. 
Prohibition. 
Prohibition. 
Loans. 
:. "(3) To be eligible to receive financing from a financial 
intermediary under this section, an entity or venture must— 
"(A) be owned, directly or indirectly, by citizens of the 
developing country or any other country eligible to partici-
pate in a sales agreement entered into under this title, 
except that up to 49 percent of such ownership interest may 
J 
be held by citizens of the United States; and 
,t 
"(B) not be owned or controlled, in whole or in part, by 
\'-. 
the government or any governmental subdivision of the 
developing country. 
"(4XA) The rate of interest charged on funds loaned to a 
financial intermediary under this section shall be such rate as is 
determined by the President gmd the intermediary. 
"(B) In the case of a cooperative or nonprofit voluntary Grants. 
! 
agency that is acting as a financial intermediary, the President 
may charge a lower rate of interest on funds loaned to such 
; 
intermediary under this section than is charged to other types 
of intermediaries or make a grant from currencies received 
from sales made under section 101(a)(3) of this Act to defray the 
startup costs of becoming a financial intermediary. 
"(5) No currency made available under this section may be 
used to promote the production of agricultural commodities or 
the products thereof that will compete, as determined by the 
President, in world markets with similar agricultural commod-
•
5 
ities or the products thereof produced in the United States. 
^ 
"(6) The President may not require a developing country to 
guarantee the repayment of a loan made to a financial 
intermediary under this section as a condition of receipt of such 
lo£in. 
"(7) A financial intermediary shall teike such steps as may be Loans, 
necessary to publicize in the developing country the availability 
of loan funds under this section. 
"(dXD AH currencies repaid by financial intermediaries under 
agreements entered into under this section shall be deposited and 
accounted for in accordance with section 105. 
"(2) Currencies repaid by financial intermediaries shall, as deter-
mined by the President— 
"(A) be used to finance additional productive, private enter-
prise investment under agreements with financial inter-
mediaries entered into under this section; 
"(B) be used for the development of new markets for United 
States agricultural commodities; 
"(C) be used for the payment of United States obligations 
(including obligations entered into pursuant to other laws of the 
United States); or 
"(D) be converted to dollars. 
"(3) Section 1306 of title 31, United States Code, shall apply to 
currencies used for the purpose specified in paragraph (2XC). 
"(eXD Any agreement entered into under this section and section 
106(b)(4) shall be subject to periodic audit to determine whether the 
terms and conditions of the agreement are being fulfilled. 
"(2) Not later than 180 days after the end of each fiscal year, the President of U.S. 
President shall report to the House of Representatives and the 
(Committee on Agriculture, Nutrition, and Forestry and the Commit-
tee on Foreign Relations of the Senate on the activities carried out 
:«:. •/ 
under this section and section 106(bX4) during the preceding fiscal 
year, including an evaluation of the impact of investment under this 
Ante, p. 1475. 
Ante, p. 1475. 
99 STAT. 1478 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1475. 
section and section 106(bX4) on the development of agricultural-
related private enterprise in each participating country. 
"(0 The President may provide agricultural technical assistance 
to further the purposes of this section, including the funding of 
market development activities. To the maximum extent practicable, 
the President shall use at least 5 percent of the foreign currencies 
obtained for use under this section from sales of agricultural 
commodities made under agreements entered into under this title 
after the date of enactment of the Food Security Act of 1985 to carry 
out such assistance. 
"(g) For each of the fiscal years 1986 through 1990, and in accord-
ance with the provisions of section 106(bX4) and this section, the 
President is encouraged to channel foreign currencies, in an amount 
equivalent to 25 percent of the value of sales agreements under this 
title, for loans for private enterprise investment provided there are 
appropriate proposals for such an amount of foreign currencies. 
"(h) The provisions of this section apply notwithstanding any 
other provision of law. 
"(i) As used in this section and in section 106(bX4)— 
"(1) the term 'developing country' means a country that is 
eligible to participate in a sales agreement entered into under 
this title; and 
"(2) the term 'financial intermediary' means a bank, financial 
institution, cooperative, nonprofit voluntary agency, or other 
organization or entity, as determined by the President, that has 
the capability of making and servicing a loan in accordance 
with this section.". 
7 u s e 1691 note. 
Health and 
medical care. 
7 u s e 1709 note. 
Reports. 
22 u s e 2394. 
• ' ' 
CHILD IMMUNIZATION 
SEC. 1112. (a) The Agricultural Trade Development and Assistance 
Act of 1954 is amended— 
(1) in paragraph (11) of section 109 (7 U.S.C. 1709(11)) by 
inserting immediately before the period at the end thereof 
", including the immunization of children"; 
(2) in the first sentence of section 206 (7 U.S.C. 1726) by 
striking out "or" before "(B)", and by inserting immediately 
before the period at the end thereof ", or (C) health programs 
and projects, including immunization of children"; and 
(3) in the second sentence of section 301(b) (7 U.S.C. 1727(b)) by 
inserting "(including immunization of children)" immediately 
after "health services". 
(b) In the implementation of health programs undertaken in 
relation to assistance provided under the Agricultural Trade Devel-
opment and Assistance Act of 1954, it shall be the goal of the 
organizations and agencies involved to provide as many additional 
immunizations of children as possible. Such increased immunization 
activities should be taken in coordination with similar efforts of 
other organizations and in keeping with any national plans for 
expanded programs of immunization. The President shall include 
information concerning such immunization activities in the annual 
reports required by section 634 of the Foreign Assistance Act of 
1961, including a report on the estimated number of immunizations 
provided each year pursuant to this subsection. 
; 8 ^ 5 , ^ f ^ - - ^ ' . - - Jc • 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1479 
Commerce and 
trade. 
SPECIAL ASSISTANT FOR AGRICULTURAL TRADE AND POOD AID 
SEC. 1113. (a) The President shall appoint a Special Assistant to 7 use 1736-1. 
the President for Agricultural Trade and Food Aid (hereinafter in 
this section referred to as the "Special Assistant"). 
(b) The Special Assistant shall serve in the Executive Office of the 
President. 
(c) The Special Assistant shall— 
(1) assist and advise the President in order to improve and 
enhance food assistance programs carried out in the United 
States and foreign countries; 
(2) be available to receive suggestions and complaints con-
cerning the implementation of United States food aid and 
agricultural export programs an3rwhere in the United States 
Government and provide prompt responses thereto, including 
expediting the program implementation in any instances in 
which there is unreasonable delay; 
(3) make recommendations to the President on means to 
coordinate and streamline the manner in which food assistance 
progrsims are carried out by the Department of Agriculture and 
the Agency for International Development, in order to improve 
their overall effectiveness; 
(4) make recommendations to the President on measures to be 
taken to increase use of United States agricultural commodities 
and the products thereof through food assistance programs; 
(5) advise the President on agricultural trade; 
(6) advise the President on the Food for Progress Program and 
expedite its implementation; 
(7) serve as a member of the Development Coordination 
Committee and the Food Aid Subcommittee of such Committee; 
(8) advise departments and agencies of the Federal Govern-
ment on their policy guidelines on basic issues of food assistance 
policy to the extent necessary to assure the coordination of food 
assistance programs, consistent with law, and with the advice of 
such Subcommittee; and 
(9) submit a report to the President and Congress each year Report 
through 1990 containing— 
(A) a global analysis of world food needs and production; 
(B) an identification of at least 15 target countries which 
are most likely to emerge as growth markets for agricul-
tural commodities in the next 5 to 10 years; and 
(C) a detailed plan for using available export and food aid 
authorities to increase United States agricultural exports to 
those targeted countries. 
(d) The Special Assistant shall also— 
(1) solicit information and advice from private and govern-
mental sources and recommend a plan to the President and 
Congress on measures that should be taken— 
(A) to promote the export of United States agricultural 
commodities and the products thereof; and 
(B) to expand export markets for United States agricul-
tural commodities and the products thereof; 
(2) develop and recommend to the President national agricul-
tural policies to foster and promote the United States agricul-
tural industry and to maintain and increase the strength of this 
vitally important sector of the United States economy; and 
99 STAT. 1480 
PUBLIC LAW 99-198—DEC. 23, 1985 
(3XA) appraise the various programs and activities of the 
Federal Government, as they affect the United States agricul-
tural industry, for the purpose of determining the extent to 
which such programs and activities are contributing or not 
contributing to such industry; and 
(B) make recommendations to the President and Congress 
with respect to the effectiveness of such programs and activities 
in contributing to such industry, 
(d) Section 5312 of title 5, United States Code, is amended by 
adding at the end thereof the following new item: 
"Special Assistant for Agricultural Trade and Food Aid." 
Subtitle B—Maintenance and Development of Export Markets 
TRADE POUCY DECLARATION 
7 use I736p. 
SEC. 1121. (a) Congress finds that— 
(1) the volume and value of United States agricultural exports 
have significantly declined in recent years as a result of unfair 
foreign competition and the high value of the dollar; 
(2) this decline has been exacerbated by the lack of uniform 
and coherent objectives in United States a^cultural trade 
policy and the absence of direction and coordination in trade 
policy formulation; 
(3) agricultural interests have been under-represented in 
- (
5 
councils of government responsible for determining economic 
•' »
^
' 
policy that has contributed to a strengthening of the United 
States dollar; 
(4) foreign policy objectives of the United States have been 
introduced into the trade policy process in a manner injurious 
to the goal of msiximizing United States economic interests 
through trade; and 
(5) the achievement of that goal is in the best interests of the 
United States. 
(b) It is hereby declared to be the agricultural trade policy of the 
j^,.,.. 
United States to— 
(1) provide through all means possible agricultural commod-
ities and their products for export at competitive prices, with 
full assurance of quality and reliability of supply; 
(2) support the principle of free trade and the promotion of 
fairer trade in agricultural commodities and their products; 
(3) cooperate fully in all efforts to negotiate with foreign 
countries reductions in current barriers to fair trade; 
(4) counter aggressively unfair foreign trade practices using 
all available means, including export restitution, export bonus 
programs, and, if necessary, restrictions on United States im-
ports of foreign agricultural commodities and their products, as 
a means to encourage fairer trade; 
(5) remove foreign policy constraints to maximize United 
States economic interests through agricultural trade; and 
(6) provide for consideration of United States agricultural 
trade interests in the design of national fiscal and monetary 
policy that may foster continued strength in the value of the 
dollar. 
V 
TRADE UBERAUZATION 
7 use I736q. 
SEC. 1122. (a) Congress finds that— 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1481 
^ 
(1) the present high level of agricultural protectionism con-
trasts sharply with the general trade liberalization that has 
been achieved since the inception of the General Agreement on 
Tariffs and Trade (hereinafter referred to as "GATT"); and 
(2) GATT procedures should explicitly recognize the protec-
tive effect of domestic subsidies that alter trade indirectly by 
reducing the demand for imports and increasing the supply of 
exports. 
(b) It is the sense of Congress that the President should negotiate 
i K 
; 
with other parties to GATT to revise GATT rules and codes with the 
goal of reducing agricultural export subsidies, tariffs, and nontariff 
barriers to trade. 
AGRICULTURAL TRADE CONSULTATIONS 
SEC. 1123. (a) To improve the orderly marketing of United States 7 use I736r. 
eigricultural commodities, to achieve higher income for United 
States producers of agricultural commodities, and to reduce the 
likelihood of an agricultural commodity price war and the need for 
export subsidy programs, the Secretary of Agriculture shall, in 
coordination with the United States Trade Representative, confer 
with representatives of other major agricultural producing countries 
and, at the earliest possible date, initiate and pursue agricultural 
trade consultations among major agricultural producing countries. 
O
t
>
) It is the sense of Congress that the objectives of the consulta-
tions called for in subsection (a) should be to— 
(1) increase the exchange of information on worldwide agri-
cultural production, demand, and commodity supply levels; 
(2) determine a more equitable sharing of responsibility for 
maintaining £^ricultural commodity reserves and managing 
supplies of agricultural commodities; and 
(3) attain increased cooperation in restraining export subsidy 
programs. 
(c) The Secretary of Agriculture shall report to Congress by July 1, 
1986, and annually thereafter through fiscal year 1990, on the 
progress of efforts to initiate and pursue the consultations called for 
in subsection (a), including any agreements reached with respect to 
the objectives set forth in subsection (b). 
TARGETED EXPORT ASSISTANCE 
SEC. 1124. (a) For export activities authorized to be carried out by 7 use I736s. 
the Secretary of Agriculture or the Commodity Credit Corporation, 
the Secretary of Agriculture shall use under this section, in addition 
to any funds or commodities otherwise required under this Act to be 
used for such activities, for the fiscal year ending September 30, 
1986, and each of the fiscal years thereafter through September 30, 
1990, not less than $325,000,000 of funds of, or an equal value of 
commodities owned by, the Corporation. 
(bXD Funds or commodities made available for use under this 
section shall be used by the Secretary only to counter or offset the 
adverse effect on the export of a United States agricultural commod-
ity or the product thereof of a subsidy (as defined in paragraph (2)), 
import quotas, or other unfair trade practices of a foreign country 
(2) As used in paragraph (1), the term subsidy includes an export 
subsidy, tax rebate on exports, financial assistance on preferential 
terms, financial assistance for operating losses, assumption of costs 
99 STAT. 1482 
PUBLIC LAW 99-198—DEC. 23, 1985 
98 Stat. 3002, 
3003, 3005. 
or expenses of production, processing, or distribution, a differential 
export tax or duty exemption, a domestic consumption quota, or 
other method of furnishing or ensuring the availability of raw 
materials at artificially low prices. 
(c) The Secretary shall provide export assistance under this sec-
tion on a priority basis in the case o
f
— 
(1) agricultural commodities and the products thereof with 
respect to which there has been a favorable decision under 
section 301 of the Trade Act of 1974 (19 U.S.C. 2411); or 
(2) agricultural commodities and the products thereof for 
which exports have been adversely affected, as defined by the 
Secretary, by retaliatory actions related to a favorable decision 
under section 301 of the Trade Act of 1974 (19 U.S.C. 2411). 
SHORT-TERM EXPORT 
CREDIT 
7 use I736t. 
SEC. 1125. (a) In making available any guarantees of the repay-
ment of credit extended on terms of up to 3 years in connection with 
the export sale of United States agricultural commodities or the 
products thereof, the Commodity Credit Corporation shall take into 
account— 
(1) the credit needs of countries that are potential purchasers 
of United States agricultural exports; 
(2) the creditworthiness of such countries; and 
(3) whether the availability of CHommodity Credit Corporation 
guarantees will improve the competitive position of United 
States agricultural exports in world markets. 
(b) Effective for the fiscal year ending September 30, 1986 and 
each fiscal year thereafter through the fiscal year ending Septem-
ber 30, 1990, the O)mmodity Credit (]!orporation shall make avgdl-
able not less than $5,000,000,000 in credit guarantees under its 
export credit guarantee program for short-term credit extended to 
finance the export sales of United States agricultural commodities 
and the products thereof. 
Prohibition. 
(c) Notwithstanding any other provision of law, the Secretary of 
Agriculture may not charge an origination fee with respect to any 
credit guarantee transaction under the Exjwrt Credit Guarantee 
Program (GSM-102) in excess of an amount equal to one percent of 
the credit extended under the transaction. 
COOPERATOR MARKET DEVELOPMENT PROGRAM 
7 use I736u. 
SEC. 1126. (a) It is the sense of Congress that the cooperator 
market development program of the Foreign Agricultural Service 
should be continued to help develop new markets and expand and 
maintain existing markets for United States agricultural commod-
ities, using nonprofit agricultural trade organizations to the maxi-
mum extent practicable. 
7 use I736u. 
0)) The cooperator market development program shall be exempt 
from the requirements of Circular A 110 issued by the Office of 
Management and Budget. 
(c) Subclause (B) of section 1207(aX5) of the Agriculture and Food 
Act of 1981 (7 U.S.C. 1736m(aX5XB)) is amended to read as follows: 
"(B) funding an export market development program for value-
added farm products and processed foods at a higher funding level 
than that provided during the fiscal year ending September 30,1985; 
and". 
... .. .. 
,..,-. 
- 
, . 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1483 
DEVELOPMENT AND EXPANSION OF MARKETS FOR UNITED STATES 
AGRICULTURAL COMMODITIES 
SEC. 1127. (aXD Notwithstanding any other provision of law, the 7 USC 1736v. 
Secretary of Agriculture (hereafter in this section referred to as the 
"Secretary") shall formulate and carry out a program under which 
agricultural commodities and the products thereof acquired by the 
Commodity Credit Corporation are provided to United States export-
ers, users, and processors and foreign purchasers at no cost to 
encourage the development, maintenance, and expansion of export 
markets for United States agricultural commodities and the prod-
ucts thereof, including value-added or high-value agricultursd prod-
ucts produced in the United States. 
(2XA) The term "agricultural commodities", as used in this section 
in referring to United States agricultural commodities, includes, but 
is not limited to— 
(i) wheat, feed grains, upland cotton, rice, soybeans, and dairy 
products produced in the United States; 
(ii) any other agricultural commodity produced in the United 
States that is determined by the Secretary of Agriculture to be 
in surplus supply and that can be purchased with funds avail-
able under section 32 of the Act entitled "An Act to amend the 
Agricultural Adjustment Act, and for other purposes", approved 7 USC 6l2c. 
August 24,1935; and 
(iii) products of the commodities and products described in 
clauses (i) and (ii) that are processed in the United States. 
(B) United States agricultural commodities, as described in clause Prohibitions. 
(ii) of subparagraph (A), may not be purchased with funds available 
under section 32 of the Act entitled "An Act to amend the Agricul-
tural Adjustment Act, and for other purposes", approved August 24, 
1935, for the sole purpose of use under the program under this 
section; and such commodities, or products thereof, may not be 
furnished to a United States user, exporter, processor, or foreign 
purchaser under the program under this section except by mutual 
agreement of such user, exporter, processor, or purchaser and the 
Secretary. 
(3) In canying out paragraph (1), the Secretary may provide such 
commodities in order to make United States commodities more 
competitive and shall, to the extent necessary, provide such 
commodities and products— 
(A) to counter or offset— 
(i) the adverse effect on the export of a United States 
agricultural commodity or the product thereof of a subsidy 
(as defined in paragraph (4)) or other unfair trade practice 
of a foreign country that directly or indirectly benefits 
producers, processors, or exporters of agricultural commod-
ities in such foreign country; 
(ii) the adverse effects of United States agricultural price 
support levels that are temporarily above the export prices 
offered by overseas competitors in export markets; or 
(iii) fluctuations in the exchange rate of the United States 
dollar against other major currencies; and 
(B) in conjunction with an intermediate export credit program 
Animals. 
conducted by the C!ommodity Credit Corporation— 
(i) for the export sale of breeding animals (including, but 
not limited to, cattle, swine, sheep, and poultry), including 
99 STAT. 1484 
PUBLIC LAW 99-198—DEC. 23, 1985 
the cost of freight from the United States to designated 
points of entry in other nations; and 
.j„ 
(ii) for the establishment of facilities in the importing 
nation to improve handling, marketing, processing, storage, 
or distribution 
of imported 
agricultural 
commodities 
(through the use of local currency generated from the 
import and sale of United States agricultural commodities 
or the products thereof to finance all or part of such 
facilities). 
(4) As used in paragraph (3XAXi), the term "subsidy" includes an 
export subsidy, tax rebate on exports, financial assistance on pref-
erential terms, financial assistance for operating losses, assumption 
of costs or expenses of production, processing, or distribution, a 
differential export tax or duty exemption, a domestic consumption 
quota, or other method of furnishing or ensuring the availability of 
raw materials at artificially low prices. 
(b) In canying out the program established by this section, the 
Secretary of Agriculture— 
(1) shall take such action as may be necessary to ensure that 
the program provides equal treatment to domestic and foreign 
purchasers and users of United States agricultural commodities 
and the products thereof in any case in which the importation 
' 
of a manufactured product made, in whole or in part, from a 
commodity or the product thereof made available for export 
under this section would place domestic users of the commodity 
or the product thereof at a competitive disadvantage; 
(2) shall, to the extent that agricultural commodities and the 
products thereof £u*e to be provided to foreign purchasers during 
any fiscal year, consider for participation all interested foreign 
purchasers, giving priority to those who have traditionally pur-
chased United States agricultural commodities and the products 
thereof and who continue to purchase such commodities and the 
products thereof on an annual basis in quantities greater than 
the level of purchases in a previous representative period; 
(3) shall encourage increased use and avoid displacing usual 
marketings of United States agricultural commodities and the 
products thereof; 
(4) shall take reasonable precautions to prevent the resale or 
transshipment to other countries, or use for other than domestic 
use in the importing country, of agricultural commodities or the 
products thereof the export of which is assisted under this 
section; and 
(5) may provide to a United States exporter, user, processor, 
or foreign purchaser, under the program, agricultural commod-
ities of a kind different than the agricultural commodity in-
volved in the transaction for which assistance under this section 
is being provided. 
(cXD If a country does not meet the financial qualifications for 
export credit or credit guarantees provided by the Commodity Credit 
Corporation, the Secretary may provide to such country agricultural 
commodities and the products thereof acquired by the Corporation 
to the extent necessary to reduce the cost to such country of 
purchasing United States agricultural commodities and to allow 
such country to meet such qualifications. 
(2) The Secretary shall review and adjust annually the quantity of 
commodities provided to a country under paragraph (1) in order to 
encourage such country to place greater reliance on increased use of 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1485 
commercial trade to meet the qualifications referred to in para-
graph (1). 
(dXl) In carrying out this section, the Secretary may make green 
dollar export certificates available to commercial exporters of 
United States agricultural commodities and the products thereof. 
(2) The Secretary shall make such certificates available under 
such terms and conditions £is the Secretary determines appropriate. 
(3) The amount of such certificates to be made available to an 
exporter may be determined— 
(A) on the basis of competitive bids submitted by exporters; or 
(B) by announcement of the Secretary. 
(4XA) An exporter may redeem a green dollar export certificate 
for commodities owned by the Commodity Credit Corporation. 
(B) For purposes of redeeming such certificates, the Secretary may 
establish values for such commodities that are different than the 
acquisition prices of such commodities. 
(5) Such certificates— 
(A) may be transferred among commercial exporters of 
United States agricultural commodities; and 
(B) shall be redeemed within 6 months after the date of 
issuance. 
(e) The Secretary of Agriculture shall carry out the program 
established by this section through the Commodity Credit 
Corporation. 
(f) Any price restrictions that otherwise may be applicable to 
dispositions of agricultural commodities owned by the Commodity 
Credit Corporation shall not apply to agricultural commodities pro-
vided under this section. 
(g) The program established under this section shall be in addition 
to, and not in place of, any authority granted to the Secretary of 
Agriculture or the Commodity Credit Corporation under any other 
provision of law. 
(h) The authority provided under this section shall terminate on 
September 30,1990. 
(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) that are 
equal in value to not less than $2,000,000,000 to carry out this 
section. To the maximum extent practicable, such commodities shall 
be used in equed amounts during each of the years in such period. 
Prohibition. 
Termination. 
POULTRY, BEEF AND PORK MEATS AND MEAT-FOOD PRODUCTS, 
J'ipl \ 
EQUITABLE TREATMENT 
SEC. 1128. In the case of any program operated by the Secretary of 7 use I736w. 
Agriculture during the years 1986 through 1989, for the purpose of 
encouraging or enhancing commercial ssdes in foreign export mar-
kets of agricultural products or commodities produced in the United 
States, which program includes the pajmient of a bonus or incentive 
(in cash, commodities, or other benefits) provided to the purchaser, 
the Secretary shall seek to expend annually at least 15 per centum 
of the total funds available (or 15 per centum of the value of any 
commodities employed to encourage such sales) for program activi-
ties to likewise encourage and enhance the export sales of poultry, 
beef or pork meat and meat products. 
99 STAT. 1486 
PUBLIC LAW 99-198—DEC. 23, 1985 
7 use 1431. 
Report. 
Loans. 
< if 
PILOT BARTER PROGRAM FOR EXCHANGE OF AGRICULTURAL 
COMMODITIES FOR STRATEGIC MATERIALS 
SEC. 1129. Section 416 of the Agricultural Act of 1949 is amended 
by adding at the end thereof the following: 
"(dXD The Secretary shall establish and carry out a pilot program 
under which strategic or other materials that the United States does 
not produce domestically in amounts sufficient for its requirements 
and for which national stockpile or reserve goals established by law 
are unmet shall be acquired in exchange for commodities meeting 
the criteria specified in subsection (a). 
"(2) The program established \inder paragraph (1) shall be carried 
out through agreements with at least two countries. 
"(3) In establishing the pilot program under paragraph (2), the 
Secretary shall give priority to— 
''(A) the acquisition of materials that involve less risk of loss 
through deterioration and have lower storage costs than the 
agricultural commodities or products for which they are 
exchanged; and 
"(B) nations with food and currency reserve shortages. 
"(4) To the extent practical, the Secretary shall use private chan-
nels of commerce to consummate any exchange of commodities for 
materials under the prc^am. 
"(5) Any materials acquired under the programs shall be held by 
the Commoditv Credit Corporation and may be transferred, on a 
reimbursable basis, to any Department or agency of the United 
States that has responsibility for any reserve or other need for the 
material. Any material acquired, in excess of any required reserve, 
may be sold by the Corporation to the extent authorized by the 
Secretary taking into consideration any effect that such sale may 
have on the commercial market of such material. 
"(6) The program established by the Secretary shall be carried out 
during the fiscal years ending September 30, 1986, and September 
30, 1987, and the Secretary shall submit a report to Congress, not 
later than 60 days after the end of each such fiscal year with respect 
to the operation of the program.". 
AGRICULTURAL EXPORT CREDIT REVOLVING FUND 
SEC. 1130. Section 4(dX6) of the Food for Peace Act of 1966 (7 
U.S.C. 1707a(dX6)) is amended by striking out "1985" both places it 
appears and inserting in lieu thereof "1990". 
INTERMEDIATE EXPORT CREDIT 
SEC. 1131. Section 4(b) of the Food for Peace Act of 1966 (7 U.S.C. 
1707a(b)) is amended— 
(1) by adding at the end of paragraph (1) the following new 
sentence: "In addition, the Corporation mav guarantee the 
repajrment of lo€uis made to finance such sales. ; 
(2) in para^aph (2)— 
(A) by inserting ", and no loan may be guaranteed," after 
"financed"; 
(B) by striking out "or" at the end of clause (A); 
• 
(C) by striking out the period at the end of clause (B) and 
inserting in lieu thereof ; or"; and 
(D) by inserting at the end thereof the following new 
clause: 
' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1487 
"(C) otherwise promote the export of United States agri-
cultural commodities."; 
(3) by striking out paragraph (7); 
(4) by redesignating paragraphs (3) through (6) as paragraphs 
(4) through (7), respectively; 
(5) by inserting after paragraph (2) the following new 
paragraph: 
"(3) The Secretary is encouraged, to the maximum extent prac-
ticable, to finance or guarantee the export sales of agricultural 
commodities under this subsection to purchasers from— 
"(A) countries that are previous recipients of credit extended 
under title I of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1701 et seq.); 
"(B) countries unable, as determined by the Secretary, to 
utilize other short-term export credit programs offered by the 
Secretary or the Commodity Credit CJorporation; and 
"(C) countries that are friendly countries, as defined in sec-
tion 103(d) of such Act (7 U.S.C. 1703(d))."; 
(6) in paragraph (4) (as redesignated by clause (4))— 
(A) by inserting "or guarantees" after "financing"; 
(B) by striking out '^nd" at the end of subparagraph (C); 
(C) by striking out "credit" in subparagraph (D); 
(D) by striking out the period at the end of subparagraph 
(D) and inserting in lieu thereof a semicolon; and 
(E) by adding at the end thereof the following new sub-
paragraphs: 
"(E) to finance the importation of agricultural commod-
ities by developing nations for use in meeting their food and 
fiber needs; and 
"(F) otherwise to promote the export sales of agricultural 
commodities."; 
(7) in paragraph (5) (as redesignated by clause (4))— 
(A) by inserting "or guarantees after "financing"; and 
(B) by striking out "to encourage credit competition, or"; 
(8) in paragraph (6) (as redesignated by clause (4))— 
(A) by inserting "(A)" aiter the paragraph designation; 
(B) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively; 
(C) by amending clause (i) (as redesignated) to read as 
follows: 
"(i) Repa3mient shall be in dollars with interest at a rate 
determined by the Secretary."; and 
(D) by adding at the end thereof the following new 
subparagraph: 
"(B) Contracts of guarantee under this subsection shall contain Contracts. 
such terms and conditions as the Commodity Credit Corporation 
shall determine."; 
(9) by inserting "or guarantees" after "financing" in para-
graph (7) (as redesignated by clause (4)); 
(10) by inserting "or guaranteed" aJter "financed" in para-
graph (8); and 
(11) by adding at the end thereof the following new 
paragraph: 
"(10) For purposes of guaranteeing export sales under this subsec-
tion, the Commodity Credit Corporation shall make available— 
"(A) for each of the fiscal years ending September 30, 1986, 
through September 30, 1988, not less than $500,000,000; and 
99 STAT. 1488 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(B) for each of the fiscal years ending September 30, 1989 
and September 30,1990, not more than $1,000,000,000.". 
AGRICULTURAL ATTACH^ REPORTS 
7 use I736x. 
SEC. 1132. (a) The Secretary of Agriculture shall require appro-
priate officers and employees of the Department of Agriculture, 
including those stationed in foreign countries, to prepare and submit 
annually to the Secretary detailed reports that— 
(1) document the nature and extent of— 
(A) programs in such countries that provide direct or 
indirect government support for the export of agricultural 
commodities and the products thereof; and 
(B) other trade practices that may impede the entry of 
^ 
United States agricultural commodities and the products 
thereof into such countries; and 
(2) identify opportunities for the export of United States 
agricultural commodities and the products thereof to such 
countries. 
(b) The Secretary shall annually compile the information con-
tained in such reports and make such information available to 
Congress, the Agricultural Policy Advisory Committee and the agri-
cultural technical advisory committees established under section 
135 of the Trade Act of 1974 (19 U.S.C. 2155), and other interested 
parties. 
(c) The United States Trade Representative shall— 
(1) review the reports prepared under subsection (a) and any 
other information available to identify export subsidies or other 
export enhancing techniques (within the meaning of the agree-
ment on Interpretation and Application of Articles VI, XVI, and 
XXIII of the General Agreement on Tariffs and Trade); 
Exports. 
(2) identify markets (in order of priority) in which United 
States export subsidies can be used most efficiently and will 
have the greatest impact in offsetting the benefits of foreign 
export subsidies that— 
(A) harm United States exports, 
(B) are inconsistent with the Agreement on Interpreta-
tion and Application of Articles VI, XVI, and XXin of the 
General Agreement on Tariffs and Trade, 
International 
-~ 
(C) nullify or impair benefits accruing to the United 
agreements. 
States Under international agreements, or 
(D) cause serious prejudice to the interests of the United 
States and 
(3) submit to the Congress and to the Secretary of Agriculture 
an annual report on— 
Exports. 
(A) the existence and status of export subsidies and other 
export enhancing techniques that are the subject of the 
investigation conducted under paragraph (1), and 
(B) the identification and assignment of priority to mar-
kets under paragraph (2). 
(d) The Secretary and the United States Trade Representative 
shall convene a meeting, at least once a year, of the Agricultural 
Policy Advisory Committee and the agricultural technical advisory 
committees to develop specific recommendations for actions to be 
taken by the Federal Government and private industry to— 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1489 
(1) reduce or eliminate trade barriers or distortions identified 
in the annual reports required to be submitted under subsec-
tions (a) and (c); and 
(2) expand United States agricultural export opportunities Exports. 
identified in such annual reports. 
Exports. 
7 u s e 1736y. 
CONTRACT SANCTTTY AND PRODUCER EMBARGO PROTECTION 
SEC. 1133. (a) It is hereby declared to be the policy of the United 
States— 
(1) to foster and encourage the export of agricultural commod-
ities and the products of such commodities; 
(2) not to restrict or limit the export of such commodities and 
products except under the most compelling circumstances; 
(3) that any prohibition or limitation on the export of such 
commodities or products should be imposed only in time of a 
national emergency declared by the President under the Export 
Administration Act; and 
(4) that contracts for the export of such commodities or 
products entered into before the imposition of any prohibition 
or limitation on the export of such commodities or products 
should not be abrogated. 
(b) Section 1204 of the Agriculture and Food Act of 1981 (7 U.S.C. 
1736J) is amended— 
(1) in subsection (a), by striking out "involved by" and all that 
follows through the period and inserting in lieu thereof "in-
volved by making payments available to such producers, as 
provided in subsection (b) of this section."; 
(2) by striking out "clause (1) of' in subsection (b); 
(3) by striking out subsection (d); and 
(4) by redesignating subsections (e), (f), and (g) as subsections 
(d), (e), and (f), respectively. 
STUDY TO REDUCE FOREIGN EXCHANGE RISK 
SEC. 1134. (a) The Secretary of Agriculture shall conduct a study Exports. 
to determine the feasibility, practicability and cost of implementing 
a program to reduce the risk of foreign exchange fluctuations that is 
incurred by the purchasers of United States agricultural exports 
under United States export credit promotion programs. The purpose 
of the study is to examine whether the GSM-102 program and all 
other United States export credit initiatives relating to agricultural 
exports would be enhanced by the United States assuming the 
foreign exchange risk of the buyer which resulted from a rise in the 
value of the United States doUar compared to the trade-weighted 
index of the dollar. The index referred to is the "trade-weighted 
index" published by the Department of Commerce as a measure-
ment of the relative bujdng power of the dollar compared to the 
currencies of nations trading with the United States. The elements 
of the program to be considered in this study would include the 
following: 
(1) On the datfe a foreign buyer receives GSM-102 or other Loans. 
credit for purposes of purchasing United States agricultural 
products, the maximum loan repayment exchange rate would 
be tied to the trade-weighted value of the United States dollar 
on the same date. 
99 STAT. 1490 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loans. 
(2) If in the future the United States dollar gains in strength 
(a higher trade-weighted index), the buyer would continue to 
repay the loan at the lower value fixed at the time the GSM-102 
credit was extended. 
(3) If the United States dollar falls in value during the term of 
the repayment period, the foreign buyer could calculate his 
repayment on the lower dollar value. 
(b) Not later than six months after the enactment of this Act, the 
Secretary shall report the results of such study to the Committee on 
Agriculture of the House of Representatives and to the Committee 
on Agriculture, Nutrition, and Forestry of the Senate. 
Subtitle C—Export Transportation of Agricultural Commodities 
FINDINGS AND DECLARATIONS 
Defense and 
SEC. 1141. (a) The Congress finds and declares— 
national 
(1) that a productive and healthy agricultural industry and a 
46^USC app 
strong and active United States maritime industry are vitally 
I24ld. 
important to the economic well-being and national security 
objectives of our Nation; 
(2) that both industries must compete in international mar-
kets increasingly dominated by foreign trade barriers and the 
subsidization practices of foreign governments; and 
Vessels. 
(3) that increased agricultural exports and the utilization of 
United States merchant vessels contribute positively to the 
United States balance of trade and generate employment 
opportunities in the United States, 
(b) It is therefore declared to be the purpose and policy of the 
Congress in this subtitle— 
(1) to enable the Department of Agriculture to plan its export 
programs effectively, by clarifying the ocean transportation 
requirements applicable to such pr(^ams; 
(2) to take immediate and positive steps to promote the 
growth of the cargo carrying capacity of the United States 
,
^ 
merchant marine; 
(3) to expand international trade in United States agricul-
tural commodities and products and to develop, maintain, and 
expand markets for United States agricultural exports; 
(4) to improve the efficiency of administration of both the 
commodity purchasing and selling and the ocean transportation 
activities associated with export programs sponsored by the 
Department of Agriculture; 
f 
(5) to stimulate and promote both the agricultural and mari-
f 
time industries of the United States and encourage cooperative 
efforts by both industries to address their common problems; 
and 
46 use 1245 et 
(6) to provide in the Merchant Marine Act, 1936, for the 
seq. 
appropriate disposition of these findings and purposes. 
EXEMPTION OF CERTAIN AGRICULTURAL EXPORTS FROM THE 
REQUIREMENTS OF THE CARGO PREFERENCE LAWS 
46 use 1245 et 
SEC. 1142. The Merchant Marine Act, 1936, (46 U.S.C. 1101 et seq.) 
««9- 
is amended by inserting after section 901 the following: 
Prohibition. 
"SEC. 901a. The requirements of section 901(bXl) of this Act and 
46 use 1241. 
the Joint Resolution of March 26,1934 (46 U.S.C. App. 1241-1), shall 
46 u s e app. 
1241e. 
•>-w^m.f' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1491 
not apply to any export activities of the Secretary of Agriculture or 
the Commodity Credit Corporation— 
"(1) under which agricultural commodities or the products 
thereof acquired by the Commodity Credit Corporation are 
made available to United States exporters, users, processors, or 
foreign purchasers for the purpose of developing, maintaining, 
or expanding export markets for United Stat^ agricultural 
commodities or the products thereof at prevailing world market 
prices; 
"(2) under which payments are made available to United 
Stat^ exporters, users, or processors or, except as provided in 
section 901b, cash grants are made available to foreign pur-
chasers, for the purpose described in paragraph (1); 
"(3) under which commercial credit guarantees are blended 
with direct credits from the Commodity Credit Corporation to 
reduce the effective rate of interest on export sales of United 
States agricultural commodities or the products thereof; 
"(4) under which credit or credit guarantees for not to exceed 
3 years are extended by the Commodity Credit Corporation to 
finance or guarantee export sales of United States agricultural 
commodities or the products thereof; or 
"(5) under which agricultural commodities or the products 
thereof owned or controlled by or under loan from the Commod-
ity Credit Corporation are exchanged or bartered for materials, 
goods, equipment, or services, but only if such materials, goods, 
equipment, or services are of a value at least equivalent to the 
value of the agricultural commodities or products exchanged or 
bartered therefor (determined on the basis of prevailing world 
market prices at the time of the exchange or barter), but 
nothing in this subsection shall be construed to exempt from the 
cargo preference provisions referred to in section 901b any 
requirement otherwise applicable to the materials, goods, equip-
ment, or services imported under any such transaction. 
Grants. 
Infra. 
Loans. 
Prohibition. 
SHIPME>rr REQUIREMENTS FOR CERTAIN EXPORTS SPONSORED BY THE 
DEPARTMENT OF AGRICULTURE 
"SEC. 901b. (aXD In addition to the requirement for United States-
flag carriage of a percentage of gross tonnage imposed by section 
901(bXl) of this Act, 25 percent of the gross tonnage of agricultural 
commodities or the products thereof specified in subsection (b) shall 
be transported on United States-flag commercial vessels. 
"(2) In order to achieve an orderly and efficient implementation of 
the requirement of paragraph (1)— 
(A) an additions^ quantity equal to 10 percent of the gross 
tonnage referred to in paragraph (1) shall be transported in 
United States-flag vessels in calendar year 1986; 
"(B) an additional quantity equal to 20 percent of the gross 
tonnage shall be transported in such vessels in calendar year 
1987; and 
'\C) an additional quantity equal to 25 percent of the gross 
tonnage shall be transported in such vessels in calendar year 
1988 and in each calendar year thereafter. 
"(b) This section shall apply to any export activity of the Commod-
ity Credit Corporation or the Secretary of Agriculture— 
"(1) carried out under the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); 
Vessels. 
46 u s e app. 
1241f. 
7 u s e 1241. 
99 STAT. 1492 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(2) carried out under section 416 of the Agricultural Act of 
Ante, p. 1486. 
1949 (7 U.S.C. 1431); 
"(3) carried out under the Food Security Wheat Reserve Act 
ofl980(7U.S.C.1736f-l); 
"(4) under which agricultural commodities or the products 
thereof are— 
"(A) donated through foreign governments or agencies, 
;
^
T 
private or public, including intergovernmental organiza-
tions; or 
i/ ' 
"(B) sold for foreign currencies or for dollars on credit 
? 
terms of more than ten years; 
iv:v;.i 
"(5) under which agricultural commodities or the products 
thereof are made available for emergency food relief at less 
than prevailing world market prices; 
Grants. 
"(6) under which a cash grant is made directly or through an 
Vessels. 
intermediary to a foreign purchaser for the purpose of enabling 
the purchaser to obtain United States agricultural commodities 
or the products thereof in an amount greater than the dif-
ference between the prevailing world market price and the 
United States market price, free along side vessel at United 
States port; or 
"(7) under which agricultural commodities owned or con-
ijii! 
trolled by or under loan from the Commodity Credit Corpora-
tion are exchanged or bartered for materials, goods, equipment, 
or services produced in foreign countries, other than export 
Ante, p. 1490. 
activities described in section 901a (5). 
"(cXl) The requirement for United States-flag transportation im-
posed by subsection (a) shall be subject to the same terms and 
7 use 1241. 
conditions as provided in section 901(b) of this Act. 
"(2XA) In order to provide for effective and equitable administra-
tion of the cargo preference laws the calendar year for the purpose 
of compliance with minimum percentage requirements shall be for 
12 month periods commencing April 1,1986. 
"(B) In addition, the Secretary of Transportation, in administering 
this subsection and section 901(b), and consistent with these sec-
tions, shall take such steps as may be necessary and practicable 
without detriment to any port range to preserve during calendar 
years 1986, 1987, 1988, and 1989 the percentage share, or metric 
-; 
tonnage of bagged, processed, or fortified commodities, whichever is 
, 
lower, experienced in calendar year 1984 as determined by the 
Secretary of Agriculture, of waterborne cargoes exported from Great 
Lake ports pursuant to title II of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1721 et seq.). 
"(d) As used in subsection (b), the term 'export activity' does not 
include inspection or weighing activities, other activities carried out 
for health or safety purposes, or technical assistance provided in the 
handling of commercial transactions. 
"(eXD The prevailing world market price as to agricultural 
commodities or the products thereof shall be determined under 
Ante, pp. 1490- 
Sections 901a through 901d in accordance with procedures estab-
1491; post, 
lished by the Secretary of Agriculture. The Secretary shall prescribe 
P ^^^^ 
such procedures by regulation, with notice and opportunity for 
public comment, pursuant to section 553 of title 5, United States 
Code. 
"(2) In the event that a determination of the prevailing world 
market price of any other type of materials, goods, equipment, or 
service is required in order to determine whether a barter or 
'*i|!ftS«t^*' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1493 
exchange transaction is subject to subsection (bX6) or (bX7), such 
determination shall be made by the Secretary of Agriculture in 
consultation with the heads of other appropriate Federal agencies. 
^M..: 
"MINIMUM TONNAGE 
"SEC. 901c. (aXl) For fiscal year 1986 and each fiscal year there-
after, the minimum quantity of agricultural commodities to be 
exported under programs subject to section 901b shall be the aver- Ante, p. 1491. 
age of the tonnage exported under such programs during the base 
period defined in subsection (b), discarding the high and low years. 
"(2) The President may waive the minimum quantity for any 
fiscal year required under paragraph (1) if he determines and re-
ports to the Congress, together with his reasons, that such quantity 
cannot be effectively u»ed for the purposes of such programs or, 
based on a certification by the Secretary of Agriculture, that the 
commodities are not available for reasons which include the un-
availability of funds. 
"Ot)) The base period utilized for computing the minimum tonnage 
quantity referred to in subsection (a) for any fiscal year shall be the 
five fiscal years beginning with the sixth fiscal year preceding such 
fiscal year and ending with the second fiscal year preceding such 
fiscal year. 
46 u s e app. 
1241g. 
President of U.S. 
FINANCING OF SHIPMENT OF AGRICULTURAL COMMODITIES IN UNITED 
STATES-FLAG VESSELS 
"SEC. 901d. (a) The Secretary of Transportation shall finance any 
increased ocean freight charges incurred in any fiscal year which 
result from the application of section 901b. 
"(b) If in any fiscal year the total cost of ocean freight and ocean 
freight differential for which obligations are incurred by the Depart-
ment of Agriculture and the Commodity Credit Corporation on 
exports of agricultural commodities and products thereof under the 
agricultural export programs specified in section 901b(b) exceeds 20 
percent of the value of such commodities and products and the cost 
of such ocean freight and ocean freight differential on which obliga-
tions are incurred by such Department and Corporation during such 
year, the Secretary of Transportation shall reimburse the Depart-
ment of Agriculture and the Commodity Credit Corporation for the 
amount of such excess. For the purpose of this subsection, commod-
ities shipped from the inventory of the Commodity Credit Corpora-
tion shall be valued as provided in section 403(b) of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1733(b)). 
"(c) For the purpose of meeting those expenses required to be 
assumed under subsections (a) and (b), the Secretary of Transpor-
tation shall issue to the Secretary of the Treasury such obligations 
in such forms and denominations, bearing such maturities and 
subject to such terms and conditions, as may be prescribed by the 
Secretary of Transportation with the approval of the Secretary of 
the Treasury. Such obligations shall be at a rate of interest as 
determined by the Secretary of the Treasury, taking into consider-
ation the average market yield on outstanding marketable obliga-
tions of the United States with remaining periods of maturity 
comparable to the aversige maturities of such obligations during the 
month preceding the issuance of such obligations of the Secretary of 
Transportation. The Secretary of the Treasury shall purchase any 
46 u s e app. 
1241h. 
Ante, p. 1491. 
Securities. 
Public debt. 
99 STAT. 1494 
PUBLIC LAW 99-198—DEC. 23, 1985 
obligations of the Secretary of Transportation issued under this 
subsection and, for the purpose of purchasing such obligations, the 
Secretary of the Treasury may use as a public debt transaction the 
proceeds from the sale of any securities issued under chapter 31 of 
31 use 3101 et 
title 31, United States Code, after the date of the enactment of this 
s«9- 
Act and the purposes for which securities may be issued under such 
chapter are extended to include any purchases of the obligations of 
the Secretary of Transportation under this subsection. All redemp-
tions and purchases by the Secretary of the Treasury of the obliga-
tions of the Secretary of Transportation shall be treated as public-
debt transactions of the United States. 
"(d) There is authorized to be appropriated annually for each 
fiscal year, commencing with the fiscal year beginning October 1, 
1986, an amount sufficient to reimburse the Secretary of Transpor-
tation for the costs, including administrative expenses and the 
principal and interest due on the obligations to the Secretary of the 
Treasury incurred under this section. Reimbursement of any such 
costs shall be made with appropriated funds, as provided in this 
section, rather than through cancellation of notes. 
"(e) Notwithstanding the provisions of this section, in the event 
that the Secretary of Transportation is unable to obtain the funds 
necessary to finance the increased ocean freight charges resulting 
Ante, p. 1491. 
from the requirements of subsections (a) and (b) and section 901b(a), 
the Secretary of Transportation shall so notify the Congress within 
10 working days of the discovery of such insufficiency. 
46 u s e app. 
12411. 
Ante, pp. 1490-
1494; post, 
pp. 1495, 1496. 
46 u s e app. 
1241J. 
Ante, p. 1498. 
Ante, pp. 1491, 
1493. 
Ante, pp. 1490-
1493. 
46 u s e 1241. 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 901e. There are authorized to be appropriated such sums as 
may be necessary to carry out the provisions of sections 901a 
through 901k. 
"TERMINATION OF SECTIONS 901A THROUGH 901K 
"SEC. 901f. The operation of sections 901a through 901k shall 
terminate 90 days after the date on which a notification is made 
pursuant to section 901d(e), except with respect to shipments of 
agricultural commodities and products subject to contracts entered 
into before the expiration of such 90-day period, unless within such 
90-day period the Secretary of Transportation proclaims that funds 
are available to finance increased freight charges resulting from the 
requirements of sections 901b(a) and 901d(a) and (b). In the event of 
termination under this section, nothing in sections 901a through 
901d shall be construed as exempting export activities from or 
subjecting export activities to the cargo preference laws except to 
the extent those activities are exempt under section 4(b) of Public 
Law 95-501 (7 U.S.C. 1707a(b)). In the event of termination under 
this section, the 50 percent requirement in section 901(b) of the 
Merchant Marine Act, 1936 shall be in full effect. 
46 u s e app. 
1241k. 
Post, pp. 1495, 
1496. 
NATIONAL ADVISORY COMMISSION ON AGRICULTURAL EXPORT 
TRANSPORTATION POUCY 
"SEC. 901g. (a) There is hereby established an advisory commission 
to be known as the National Advisory Commission on Agricultural 
Export Transportation Policy (hereafter in this section through 
section 901j referred to as the 'Commission'). 
"(bXD The Commission shall be composed of 16 members. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1495 
"(2) Eight members of the Commission shall be appointed by the 
President. 
"(3) The chairman and ranking minority members of the Senate 
Committee on Agriculture, Nutrition, and Forestry, of the Sub-
committee on Merchant Marine of the Senate Committee on Com-
merce, Science, and Transportation, of the House Committee on 
Agriculture, and of the House Committee on Merchant Marine and 
Fisheries shall serve as members of the Commission. 
"(4XA) Four of the members appointed by the President shall be 
representatives of agricultural producers, cooperatives, merchan-
disers, and processors of agricultural commodities. 
"(B) The remaining four members appointed by the President 
shall be representatives of the United States-flag maritime industry, 
two of whom shall represent labor and two of whom shall represent 
management. 
"(cXD The members of the Commission shall elect a Chairman 
from among its members. 
"(2) Any vacancy in the Commission does not affect its powers but 
shall be filled in the same manner in which the original appoint-
ment was made. 
"DUTIES OF THE COMMISSION 
"SEC. 901h. (a) It shall be the duty of the Commission to conduct a 
comprehensive study and review of the ocean transportation of 
agricultural exports subject to the cargo preference laws referred to 
in section 901b and to make recommendations to the President and 
the Congress for improving the efficiency of such transportation on 
United States-flag vessels in order to reduce the costs incurred by 
the United States in connection with such transportation. In carry-
ing out such study and review, the Commission shall consider the 
extent to which any unfair or discriminatory practices of foreign 
governments increase the cost to the United States of transporting 
agricultural commodities subject to such cargo preference laws. 
"(bXD The Commission shall submit an interim report to the 
President and the Congress not later than one year after the date of 
the enactment of this subtitle and such other interim reports as the 
Commission considers advisable. 
"(2) The Commission shall submit a final report containing its 
findings and recommendations to the President and the Congress 
not later than two years after the date of the enactment of this 
subtitle. Tlie report shall include recommendations for any changes 
in the provisions of paragraph (1) that would help assure that the 
cost of ocean freight and ocean freight differentisd incurred by the 
Department of Agriculture and the Commodity Credit Corporation 
on the agricultural export pr(^ams specified in section 901b, is not 
increased above historical levels as a result of the extra demand for 
United States-fiag vessels caused by section 901b. 
"(3) Sixty days after the submission of the final report, the 
Commission shall cease to exist. 
"(c) The Commission shall include in its reports submitted pursu-
ant to subsection (b) recommendations concerning the feasibility and 
desirability of achieving the following goals with respect to the 
ocean transportation of agricultural commodities subject to the 
cargo preference laws referred to in section 901b: 
"(1) Ensuring that the timing of commodity purchase agree-
ments entered into by the United States in connection with the 
Study. 
Exports. 
46 u s e app. 
1241/. 
Ante, p. 1491. 
Report. 
Report. 
Exports. 
Vessels. 
Report. 
Report. 
Reports. 
51-194 O 
- 13 
QL. 3 
Part 2 
99 STAT. 1496 
PUBLIC LAW 99-198—DEC. 23, 1985 
Vessels. 
Contracts. 
Vessels. 
Vessels. 
export of such commodities, and the methods of implementing 
such agreements, will minimize cost to the United States. 
"(2) Ensuring that shipments of such commodities are made 
on the most modem and efficient United States-flag vessels 
available. 
"(3) Ensuring that shipments of such commodities are made 
under the most advantageous terms available, including— 
"(A) charters for full shiploads; 
"(B) charters for intermediate or long term; 
"(C) charters for consecutive voyages and contracts of 
affreightment; and 
"(D) adjustment of rates in the event that vessels used for 
shipment^ of such commodities also carry cai^oes on return 
voyages. 
"(4) Reduction and elimination of impediments, including 
delays in port, to the efficient loading and operation of the 
vessels employed for shipment of such commodities. 
"(5) Utilization of open and competitive bidding for the ocean 
transportation of such commodities. 
Reports. 
46 u s e app. 
1241m. 
INFORMATION AND ASSISTANCE TO BE FURNISHED TO THE COMMISSION 
"SEC. 901i. (a) Each department, agency, and instrumentality of 
the United States, including independent agencies, shall furnish to 
the Commission, upon request made by the Chairman, such statis-
tical data, reports, and other information as the Commission consid-
ers necessary to carry out its functions. 
"(b) The Secretary of Agriculture and the Secretary of Transpor-
tation shall make available to the Commission such staff, personnel, 
and administrative services as may reasonably be required to carry 
out the Commission's duties. 
COMPENSATION AND TRAVEL AND SUBSISTENCE EXPENSES OF 
COMMISSION MEMBERS 
46 use app. 
"SEC. 901j. Members of the Commission shall serve without com-
I24in. 
pensation in addition to compensation they may otherwise be enti-
tled to receive as employees of the United States or as Members of 
Congress, but shall be reimbursed for travel, subsistence, and other 
necessary expenses incurred in the performance of duties vested in 
the Commission. 
46 u s e app. 
12410. 
Ante, pp. 1491-
1493. 
Prohibition. 
46 u s e app. 
1241p. 
5 u s e 500 et seq. 
DEFINITION OF UNITED STATES FLAG VESSEL EUGIBLE TO CARRY 
CARGOES UNDER CERTAIN SECTIONS 
"SEC. 901k. A United States flag vessel eligible to carry cargoes 
under sections 901b through 901d means a vessel, as defined in 
section 3 of title 1, United States Clode, that is necessanr for national 
security purposes and, if more than 25 years old, is within five years 
of having been substantially rebuilt and certified by the Secretary of 
Transportation as having a useful life of at least five years after that 
rebuilding.". 
EFFECT ON OTHER LAWS 
SEC. 1143. This subtitle shall not be construed as modifjdng in any 
manner the provisions of section 4(bX8) of the Food for Peace Act of 
1966 (7 U.S.C. 1707a(bX8)) or chapter 5 of title 5, United States Code. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1497 
Subtitle D—Agricultural Imports 
TRADE CONSULTATIONS 
SEC. 1151. (a) The Secretary of Agriculture shall require consulta- 7 use 2275. 
tion between the Administrator of the Foreign Agricultural Service 
and the heads of other appropriate agencies and offices of the 
Department of Agriculture, including the Administrator of the 
Animal and Plant Health Inspection Service, before relaxing or 
removing any restriction on the importation of any agricultural 
commodity or a product thereof into the United States. 
(b) The Secretary shall consult with the United States Trade 
Representative before relaxing or removing any restriction on the 
importation of any agricultur£d commodity or a product thereof into 
the United States. 
APRICOT STUDY 
SEC. 1152. (a) The Secretary of Agriculture, in conjunction with 
the United States Trade Representative, not later than 120 days 
after the date of enactment of this Act, shall complete a study to 
determine— 
(1) the effect of apricot imports into the United States on the 
domestic apricot industry; and 
(2) the extent and nature of apricot subsidies existing in the 
countries from which such apricot imports are derived. 
(b) The Secretary shall report the results of the study conducted Report. 
under subsection (a), as soon as the study is completed, to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate. 
STUDY RELATING TO BRAZIUAN ETHANOL IMPORTS 
SEC. 1155. The Secretary of Agriculture shall conduct a study to 
determine the impact that the import of Brazilian ethanol has on 
the domestic price of corn and other grains and the domestic ethanol 
refining industry. The Secretary of Agriculture shall also, in con-
sultation with the International Trade Commission and the United 
States Trade Representative, determine what relief should be 
granted because of the interference of subsidized Brazilian ethanol 
with the domestic ethanol industry. Not later than 60 days after the Report. 
enactment of this Act, the Secretary shall report the results of such 
study to the Committee on Agriculture and the Committee on Ways 
and Means of the House of Representatives and to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate. 
STUDY OF OAT IMPORTS 
SEC. 1156. (a) The Secretary of Agriculture shall conduct a study of 
the impact of domestic farm programs of the increased importation 
of oats into the United States. 
(b) By no later than 1 year after the date of enactment of this Act, Report. 
the Secretary of Agriculture shall submit to the Congress a report 
on the study conducted under subsection (a). 
99 STAT. 1498 
PUBLIC LAW 99-198—DEC. 23, 1985 
Subtitle E—Trade Practices 
TOBACCO PESTICIDE RESIDUES 
SEC. 1161. (a) Section 213 of the Dairy and Tobacco Adjustment 
Act of 1983 (7 U.S.C. 51 
Ir) is amended by adding at the end thereof 
the following new subsection: 
"(e) Notwithstanding any other provision of law: 
"(IXA) All flue-cured or hurley tobacco offered for importation 
into the United States shall be accompanied by a certification 
by the importer, in such form as the Secretary of Agriculture 
shall prescribe, that the tobacco does not contain any prohibited 
residue of any pesticide that has been cancelled, suspended, 
revoked, or otherwise prohibited under the Federsd Insecticide, 
7 use 1
3
6 note. 
Fungicide, and Rodenticide Act (7 U.S.C. 135 et seq.). Any flue-
cured or hurley tobacco that is not accompanied by such certifi-
cation shall be inspected by the Secretary at the point of entry 
to determine whether that tobacco meets the pesticide residue 
requirements. Subsection (d) of this section shall apply with 
respect to fees and charges imposed to cover the costs of such 
inspection. 
"(B) Any tobacco that is determined by the Secretary not to 
meet the pesticide residue requirements shall not be permitted 
entry into the United States. 
"(C) The customs fraud provisions under section 592 of the 
Tariff Act of 1930, as amended (19 U.S.C. 1592), and criminal 
fraud provisions under section 1001 of title 18, United States 
Code, shall apply with respect to the certification requirement 
in subparagraph (A). 
Regulation. 
"(2) The Secretary shall by regulation provide for pesticide 
residue standards with respect to pesticides that are cancelled, 
suspended, revoked, or otherwise prohibited under the Federal 
Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. 135 et seq.), 
that shall apply to flue-cured and hurley tobacco, whether 
domestically produced or imported. 
"(3) The Secretary, to such extent and at such times as the 
Secretary determines appropriate, shall sample and test flue-
cured and hurley tobacco offered for importation or for sale in 
the United States to determine whether it conforms with the 
Regulation. 
pesticide residue requirements. The Secretary shall by regula-
tion impose fees and charges for such inspections. 
"(4) If the Secretary determines, as a result of tests conducted 
under paragraph (3), that certain flue-cured or hurley tobacco 
offered for importation does not meet the requirements of this 
subsection, then such tobacco shall not be permitted entry into 
the United States. 
"(5XA) Subject to subparagraph (B), if the Secretary deter-
mines that domestically produced Flue-cured or Burley tobacco 
does not meet the requirements of this section, such tobacco 
may not be moved in commerce among the States and shall be 
destroyed by the Secretary. 
"(B) This paragraph shall apply only to tobacco produced 
after the date of enactment of this provision that receives price 
support under the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1281 et seq.) or the Agricultural Act of 1949 (7 U.S.C. 
1421 et seq.).". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1499 
(b) The second sentence of section 213(d) of such Act is amended by 
inserting "and subsection (e)" after "subsection (aXD". 
ASSESSMENT OF EXPORT DISPLACEMENT 
SEC. 1162. (a) The Secretary of Agriculture shall assess each 
program, project, or activity administered by the Secretary or the 
Etepartment of Agriculture that— 
(1) provides assistance for establishing, expanding, or facilitat-
ing the production, marketing, or use of any agricultural 
commodity in a foreign country; and 
(2) the Secretary determines is likely to have a detrimental 
impact on efforts to promote the export of United States agricul-
tural commodities; 
in order to determine if such program, project, or activity is likely to 
have such a detrimental impact. 
(b) The Secretary shall provide the results of the assessment 
required under subsection (a)— 
(1) in the case of current programs, projects, or activities, in a 
report made to the Congress not later than one year from the 
date of enactment of this section; and 
(2) in the case of programs, projects, or activities undertaken 
after the date of enactment of this section, on a regular basis. 
EXPORT 
SALES 
OP 
DAIRY 
PRODUCTS 
SEC. 1163. (a) In each of the fiscal years ending September 30, 
1986, September 30, 1987, and September 30, 1988, the Secretary of 
Agriculture shall sell for export, at such prices as the Secretary 
determines appropriate, not less than 150,000 metric tons of dairy 
products owned by the Commodity Credit Corporation, of which not 
less than 100,000 metric tons shall be butter and not less than 20,000 
metric tons shall be cheese, if that disposition of such commodities 
will not interfere with the usual marketings of the United States 
nor disrupt world prices of agricultural commodities and normal 
patterns of commercial trade. 
0>) Such sales shall be made through the Commodity Credit 
Corporation under existing authority available to the Secretary or 
the Commodity Credit Corporation. 
(c) Through September 30, 1988, the Secretary shall report semi-
annually to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate on the volume of sales made under this 
section. 
UNFAIR TRADE PRACTICES 
SEC. 1164. The Congress finds that— 
(1) United States producers and processors of citrus, wheat 
flour, poultry, canned fruits, and raisins have filed petitions 
under section 302 of the Trade Act of 1974 alleging that the 
subsidies and discriminatory tariffs of the European Commu-
nities are inconsistent with the principles and terms of the 
General Agreement on Tariffs and Trade (hereafter referred to 
in this section as the "GATT") and have placed United States 
exporters at a competitive disadvantage; 
(2) throughout the past decade, the European Communities 
has repeatedly rebuffed extensive United States efforts to re-
7 u s e 51 Ir. 
7 u s e 1736z. 
Commerce and 
7 u s e 1731 note. 
98 Stat. 3003. 
19 u s e 2412. 
99 STAT. 1500 
PUBLIC LAW 99-198—DEC. 23, 1985 
solve these matters through bilateral consultations and multi-
lateral negotiations, as well as through consultations under the 
provisions of the GATT; 
(3) after many years of frustrated discussions, the United 
States had no choice but to invoke the dispute settlement 
procedures of the GATT as the only remaining means of seeking 
redress for American producers and processors; 
(4) investigatory panels, established by the GATT to review 
United States complaints with respect to citrus, canned fruits, 
and raisins, concluded that European Communities subsidies 
and discriminatory tariffs had nullified and impaired rights of 
United States exporters and were in violation of the GATT and 
recommended that the European Communities take necessary 
steps to rectify the matters; 
(5) the European Communities has effectively and repeatedly 
prevented adoption by the GATT of each of these reports, most 
recently, the favorable report involving the 15-year-old citrus 
complaint; 
(6) on May 1, 1985, the President concluded that the GATT 
dispute settlement process with respect to the citrus complaint 
was terminated and, pursuant to section 301 of the Trade Act of 
98 Stat. 3002, 
1974, the President had to consider a subsequent course of 
3003,3005. 
action to redress the injury to United States citrus exporters; 
1
9 ubc 2411. 
(,7) Qjj jyjjg 20, 1985, the President announced that a rea-
sonable and appropriate course of action in response to the 
unwillingness of the European Communities to implement the 
unanimous finding of the GATT panel or to negotiate a mutu-
ally acceptable resolution of the citrus complaint is to withdraw 
an equivalent amount of concessions from imported European 
Communities pasta products and, in response, the European 
Communities notified the United States that the European 
Communities would retaliate by increasing the European 
Communities duties on United States lemon and walnut 
imports; 
(8) on July 19, 1985, the United States and the European 
Communities agreed to suspend until October 31, 1985, the 
tariff increases, in order to provide the European Communities 
with additional time to resolve the citrus complaint; and 
Effective date. 
(9) despite this suspension, the European Communities has 
failed to present to the United States an acceptable proposal to 
resolve the citrus complaint, and effective November 1, 1985, 
the United States reinstated the pasta tariff increase, and in 
turn, the European Communities reinstated the lemon and 
walnut tariff increase. 
(b) The President shall take all appropriate and feasible action 
within the power of the Presidency (including, but not limited to, 
the actions described in section 301 of the Trade Act of 1974 (19 
U.S.C. 2411)) to— 
(1) ensure a prompt and satisfactory resolution of all com-
plaints regarding subsidies and discriminatory tariffs of the 
European (Communities which— 
(A) are set forth in petitions filed under section 302 of the 
98 Stat. 3003. 
Trade Act of 1974 by United States exporters of citrus, 
1
9 use 2412. 
wheat flour, poultry, canned fruits, and raisins, and 
(B) are pending before the GATT on the date of enact-
ment of this Act; and 
'y.'fBSi 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1501 
(2) balance the level of concessions in the trade between the Commerce and 
United States and the European Communities. 
trade. 
THAI RICE 
SEC. 1165. (a) Congress finds that— 
(1) Rice ranks 9th among major domestic field crops in value 
of production; 
(2) Rice accounts for about 5 percent of the value of major 
field crops produced in the United States; 
(3) The value of domestic rice production annually is over 
$1,500,000,000; 
(4) Ending stocks for rice have sharply increased since 1980; 
(5) The projected 1985-1986 carryover of rice as a percentage 
of annual use is 62 percent; 
(6) Between 1980 and 1983, rice stocks rose and prices fell, 
pushing rice program costs from less than one-tenth to over 
nine-tenths of the value of United States rice production; 
(7) Over the last several years, the percentage of world rice 
exports from the United States has fallen from a high of 25 
percent to 18 percent in 1985; 
(8) In the last several years, Thailand has become the largest 
rice exporter in the world, accounting for 30 percent of the 
world market; 
(9) Thai rice imports into the United States have displaced 
normal sales of United States rice and have increased Govern-
ment costs; 
(10) In 1983, the United States imported 33.2 million pounds 
of rice from Thailand, in 1984 the United States imported 51.3 
million pounds of rice (an increase of 53 percent), and in the 
first six months of 1985, rice imports from Thailand to the 
United States have already reached 58.3 million pounds; and 
(11) A petition has been filed with the Department of Com-
merce asking that countervailing duties be imposed upon im-
ports of Thai rice into the United States. 
(b) Based upon these findings, it is the sense of Congress that— 
(1) our domestic rice industry is of vital importance and must 
be protected from unfair foreign competition; and 
(2) the Secretary of Commerce should give immediate consid-
eration to the countervailing duty petition referred to in subsec-
tion (aXll). 
END 
USERS 
OP 
IMPORTED 
TOBACCO 
SEC. 1166. Section 213 of the Dairy and Tobacco Adjustment Act of 
1983 (7 U.S.C. 511r) is amended by adding after the subsection added 
by section 1161 of this Act the following: 
"(fKl) The certification required under subsection (eXD of this 
section shall also include the identification of any and all end users 
of such tobacco of which the importer has knowledge. Any flue 
cured or hurley tobacco permitted entry into the United States must 
be accompanied by a written identification of any and all end users 
of such tobacco. In cases in which the importer has no knowledge of 
the identity of an end user, the importer shall identify any and all 
purchasers to whom the importer expects to transfer such imported 
tobacco. The importer shall file with the Department of Agriculture 
an amended statement if, at any time after the time of entry of such 
tobacco imports, the importer has knowledge of any additional 
99 STAT. 1502 
PUBLIC LAW 99-198—DEC. 23, 1985 
Report. 
Reports. 
purchaser or end user. In those cases in which the importer has not 
identified all end users of such imported tobacco, the Secretary of 
Agriculture shall take all steps available to ascertain the identity of 
any and all such end users, including requesting such information 
from purchasers of such imported tobacco. Domestic purchasers of 
imported tobacco shall be required to supply any relevant informa-
tion to the Department of Agriculture upon demand under this 
subsection. 
"(2) The Secretary shall provide to the Senate Committee on 
Agriculture, Nutrition, and Forestry, and the House Committee on 
Agriculture, on or before April 1, 1986, a report on the implementa-
tion of this authority to identify each end user and purchaser of 
imported tobacco. Such report shall identify the end users and 
purchasers of imported tobacco and the quantity, in pounds, bought 
by such end user or purchaser, as well as all steps taken by the 
Department of Agriculture to ascertain such identities. The Sec-
retary shall provide an additional report, beginning November 15, 
1986, and annual reports thereafter, on the implementation of this 
authority. 
"(3) As used in this subsection, the term 'end user of imported 
tobacco' means— 
"(A) a domestic manufacturer of cigarettes or other tobacco 
products; 
"(B) an entity that mixes, blends, processes, alters in any 
manner, or stores, imported tobacco for export; and 
"(C) any other individual that the Secretary may identify as 
making use of imported tobacco for the production of tobacco 
products.". 
Defense and 
nation£il 
security. 
7 u s e 1727g 
note. 
Defense and 
national 
security. 
BARTER OF AGRICULTURAL COMMODITIES FOR STRATEGIC AND CRITICAL 
MATERIAI^ 
SEC. 1167. (a) Congress finds that— 
(1) the Commodity Credit Corporation, the General Services 
Administration, and the Department of Agriculture have 
authority to barter or exchange agricultural commodities for 
strategic and critical materials for the national defense 
stockpile; 
(2) from 1950 to 1973, the Department of Agriculture con-
ducted a highly successful barter pr(^am using agricultural 
commodities to acquire strategic and critical materials; 
(3) private commercial firms in the United States have en-
tered into effective barter agreements with foreign governments 
or private parties in foreign countries to barter or exchange 
commodities and services to supplement customary commercial 
transactions in international markets; 
(4) barter can be an effective secondary method of reducing 
excess supplies of agricultural commodities and adding needed 
strategic and critical materials to the national defense stock-
pile; 
(5) barter can be used to help overcome certain currency 
exchange and balance-of-trade problems and to develop new 
markets for United States agricultural products; 
(6) barter can be used to promote United States foreign policy 
interests; and 
(7) several nations are potential partners in a revival of a 
coherent and well-managed government barter program. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1503 
Commerce and 
trade. 
Petroleum and 
petroleum 
products. 
(b) Section 4(h) of the Commodity Credit Corporation Charter Act 
(15 U.S.C. 714b(h)) is amended— 
(1) in the fourth sentence— 
(A) by striking out "is authorized," and inserting in Ueu 
thereof "shall, to the maximum extent practicable, in con-
sultation with the Secretary of State, and"; and 
(B) by striking out "to"; 
(2) in the fifth sentence, by striking out "normal commercial 
trade channels shall be utilized and priority shall be given" and 
inserting in lieu thereof "the Secretary shall: (1) use normal 
commercial trade channels; (2) take action to avoid displacing 
usual marketings of United States agricultural commodities 
and the products thereof; (3) take reasonable precautions to 
prevent the resale or transshipment to other countries, or use 
for other than domestic use in the importing country, of agricul-
tural commodities used for such exchange; and (4) give 
priority"; 
(3) by inserting after the fifth sentence the following new 
sentence: "TTie Corporation may solicit bids from, and utilize, 
private trading firms to effect such exchange of goods."; 
(4) in the eighth sentence (as amended by clause (3)), by 
striking out "when" and inserting in lieu thereof "in the same 
fiscal year such materials are"; and 
(5) by inserting after the eighth sentence (as amended by 
clause (3)) the following new sentence: "If the volume of petro-
leum products (including crude oil) stored in the Strategic 
Petroleum Reserve is less than the level prescribed imder sec-
tion 154 of the Energy Policy and Conservation Act (42 U.S.C. 
6234), the Corporation shall, to the maximum extent practicable 
and with the approval of the Secretary of Agriculture, make 
available annually to the Secretary of Energy, upon the request 
of the Secretary of Energy, a quantity of agricultural products 
owned by the Corporation with a market value at the time of 
such request of at least $300,000,000 for use by the Secretary of 
Energy in acquiring petroleum products (including crude oil) 
produced abroad for placement in the Strategic Petroleum 
Reserve through an exchange of such agricultural products. The 
terms and conditions of each such exchange, including provi-
sions for full reimbursement to the Commo&ty Credit (^Drpora-
tion, shall be determined by the Secretary of Energy and the 
Secretary of Agriculture.". 
(c) Section 310 of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1727g) is amended by inserting after the 
second sentence the following new sentence: "To the maximum 
extent practicable, the Secretary shall solicit bids from, and utilize, 
private trading firms to arrange or make barters or exchanges for 
strategic or other materials under clause (a).". 
(dXD The Secretary of .^riculture shall encourage United States 7 use I736aa 
exporters of agricultural commodities and the products thereof to 
barter such commodities and products for foreign products needed 
by such exporters. 
(2) The Secretary shall provide technical advice and assistance 
relating to the barter of agricultural commodities and the products 
thereof to suiy United States exporter who requests such advice or 
assistance. 
99 STAT. 1504 
PUBLIC LAW 99-198—DEC. 23, 1985 
Post, pp. 1506-
1514. 
16 u s e 3801. 
Prohibition. 
Post, p. 1506. 
TITLE XII—CONSERVATION 
SUBTITLE A—DEFINITIONS 
DEFINITIONS 
SEC. 1201. (a) For purposes of subtitles A through E: 
(1) The term "agricultural commodity" means— 
(A) any agricultural commodity planted and produced in 
a State by annual tilling of the soil, including tilling by one-
trip planters; or 
(B) sugarcane planted and produced in a State. 
(2) The term "conservation district" means any district or 
unit of State or local government formed under State or terri-
torial law for the express purpose of developing and carrying 
out a local soil and water conservation program. Such district or 
unit of government may be referred to as a "conservation 
district", "soil conservation district", "soil and water conserva-
tion district", "resource conservation district", "natural re-
source district", "land conservation committee", or a similar 
name. 
(3) The term "cost sharing payment" means a payment made 
by the Secretary to an owner or operator of a farm or ranch 
containing highly erodible cropland under the provisions of 
section 1234 Ot)) of this Act. 
(4XA) The term "converted wetland" means wetland that has 
been drained, dredged, filled, leveled, or otherwise manipulated 
(including any activity that results in impairing or reducing the 
flow, circulation, or reach of water) for the purpose or to have 
the effect of making the production of an agricultural commod-
ity possible if— 
(i) such production would not have been possible but for 
such action; and 
(ii) before such action— 
(I) such land was wetland; and 
(II) such land was neither highly erodible land nor 
highly erodible cropland. 
(B) Wetland shall not be considered converted wetland if 
production of an agricultural commodity on such land 
during a crop year— 
(i) is possible as a result of a natural condition, such 
as drought; and 
(ii) is not assisted by an action of the producer that 
destroys natural wetland characteristics. 
(5) The term "field" means such term as is defined in section 
718.2(bX9) of title 7 of the Code of Federal Regulations (as of 
January 1, 1985), except that any highly erodible land on which 
an agricultural commodity is produced after the date of enact-
ment of this Act and that is not exempt under section 1212 shall 
be considered as part of the field in which such land was 
included on such date, unless the Secretary permits modifica-
tion of the boundaries of the field to carry out subtitles A 
through E. 
(6) The term "highly erodible cropland" means highly erod-
ible land that is in cropland use, as determined by the 
Secretary. 
(7XA) The term "highly erodible land" means land— 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1505 
(i) that is classified by the Soil Conservation Service as 
class IV, VI, VII, or VIII land under the land capability 
classification system in effect on the date of the enactment 
of this Act; or 
(ii) that has, or that if used to produce an agricultural 
commodity, would have an excessive average annual rate of 
erosion in relation to the soil loss tolerance level, as estab-
lished by the Secretary, and as determined by the Secretary 
through application of factors from the universal soil loss 
equation and the wind erosion equation, including factors 
~ •' 
for climate, soil erodibility, and field slope. 
(B) For purposes of this paragraph, the land capability class or Regulations, 
rate of erosion for a field shall be that determined by the 
Secretary to be the predominant class or rate of erosion under 
regulations issued by the Secretary. 
(8) The term "hydric soil" means soil that, in its undrained 
condition, is saturated, flooded, or ponded long enough during a 
growing season to develop an anaerobic condition that supports 
the growth and regeneration of hydrophvtic vegetation. 
(9) The term "hydrophytic vegetation means a plant growing 
^ "• ' 
in— 
(A) water; or 
'"'* 
(B) a sul^trate that is at least periodically deficient in 
oxygen during a growing season as a result of excessive 
water content. 
(10) The term "in-kind commodities" means commodities that 
are normally produced on land that is the subject of an agree-
ment entered into under subtitle D. 
Post, p. 1509. 
(11) The term "rental payment" means a pajrment made by 
the Secretary to an owner or operator of a farm or ranch 
containing highly erodible cropland to compensate the owner or 
operator for retiring such land from crop production and plac-
ing such land in the conservation reserve in accordance with 
subtitle D. 
(12) The term "Secretary" means the Secretary of Agri-
culture. 
(13) The term "shelterbelt" means a vegetative barrier with a 
linear configuration composed of trees, shrubs, and other 
approved perennial vegetation. 
(14) The term "State" means each of the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, 
the Virgin Islands of the United States, American Samoa, the 
Commonwealth of the Northern Mariana Islands, or the Trust 
Territory of the Pacific Islands. 
(15) The term "vegetative cover" means— 
(A) perennial grasses, legumes, forbs, or shrubs with an 
expected life span of 5 or more years; or 
-
^ ' 
(B) trees. 
(16) The term "wetland", except when such term is part of the 
term "converted wetland", means land that has a predominance 
of hydric soils and that is inundated or saturated by surface or 
groundwater at a frequency and duration sufficient to support, 
and that under normal circumstances does support, a preva-
lence of hydrophytic vegetation typically adapted for life in 
saturated soil conditions. 
(b) The Secretary shall develop— 
99 STAT. 1506 
PUBLIC LAW 99-198—DEC. 23, 1985 
(1) criteria for the identification 
of hydric soils and 
hydrophj^ic vegetation; and 
(2) lists of such soils and such vegetation. 
SUBTITLE B—HIGHLY ERODIBLE LAND CONSERVATION 
16 u s e 3811. 
Infra. 
Loans. 
Ante, p. 1503. 
Disaster 
assistance. 
Loans. 
PROGRAM INELIGIBILITY 
SEC. 1211. Except as provided in section 1212, and notwithstanding 
any other provision of law, following the date of enactment of this 
Act, any person who in any crop year produces an agricultural 
commodity on a field on which highly erodible land is predominate 
shall be ineligible for— 
(1) as to any commodity produced during that crop year by 
such person— 
(A) any type of price support or payment made available 
under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), 
the Commodity Credit Corporation Charter Act (15 U.S.C. 
714 et seq.), or any other Act; 
(B) a farm storage facility loan made under section 4(h) of 
the Commodity Credit Corporation Charter Act (15 U.S.C. 
714b(h)); 
(C) crop insurance under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.); 
(D) a disaster payment made under the Agricultural Act 
of 1949 (7 U.S.C. 1421 et seq.); or 
(E) a loan made, insured, or guaranteed under the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) or any other provision of law administered by 
the Farmers Home Administration, if the Secretary deter-
mines that the proceeds of such loan will be used for a 
purpose that will contribute to excessive erosion of highly 
erodible land; or 
(2) a payment made under section 4 or 5 of the Commodity 
Credit Corporation Charter Act (15 U.S.C. 714b or 714c) during 
such crop year for the storage of an agricultural commodity 
acquired by the Commodity Credit Corporation. 
Prohibitions. 
Loans. 
16 use 3812. 
Supra. 
EXEMPTIONS 
SEC. 1212. (aXD During the period beginning on the date of the 
enactment of this Act and ending on the later of January 1, 1990, or 
the date that is 2 years after the date land on which a crop of an 
agricultural commodity is produced was mapped by the Soil Con-
servation Service for purposes of classifying such land under the 
land capability classification system in effect on the date of enact-
ment of this Act, except as provided in paragraph (2), no person 
shall become ineligible under section 1211 for program loans, pay-
ments, and benefits as the result of the production of a crop of an 
agricultural commodity on any land that was— 
(A) cultivated to produce any of the 1981 through 1985 crops 
of an agricultural commodity; or 
(B) set aside, diverted or otherwise not cultivated under a 
program administered by the Secretary for any such crops to 
reduce production of an agricultural commodity. 
(2) If, as of January 1, 1990, or 2 years after the Soil Conservation 
Service has completed a soil survey for the farm, whichever is later. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1507 
a person is actively applying a conservation plan based on the local 
Soil Conservation Service technical guide and approved by the local 
soil conservation district, in consultation with the local committees 
established under section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)) and the Secretary, or by the 
Secretary, such person shall have until January 1, 1995, to comply 
with the plan without being subject to program ineligibility. 
(b) No person shall become ineligible under section 1211 for 
Ante, p. 1506. 
program loans, pa)anents, and benefits as the result of the produc-
tion of a crop of an agricultural commodity— 
(1) planted before the date of enactment of this Act; 
(2) planted during any crop year beginning before the date of 
enactment of this Act; 
(3) on highly erodible land in an area— 
(A) within a conservation district, under a conservation 
system that has been approved by a conservation district 
after the district has determined that the conservation 
system is in conformity with technical standards set forth 
in the Soil Conservation Service technical guide for such 
district; or 
(B) not within a conservation district, under a conserva-
tion system determined by the Secretary to be adequate for 
the production of such agricultural commodity on any 
highly erodible land subject to this title; or 
(4) on highly erodible land that is planted in reliance on a 
determination by the Soil Conservation Service that such land 
was not highly erodible land, except that this paragraph shall 
not apply to any agricultural commodity that was planted on 
any land after the Soil Conservation Service determines that 
such land is highly erodible land. 
(c) Section 1211 shall not apply to a loan described in section 1211 
made before the date of enactment of this Act. 
SOIL SURVEYS 
SEC. 1213. The Secretary shall, as soon as is practicable after the 
16 use 3813. 
date of enactment of this Act, complete soil surveys on those private 
lands that do not have a soil survey suitable for use in determining 
the land capability class for purposes of this subtitle. In carrying out 
this section, the Secretary shall, insofar as possible, concentrate on 
those localities where significant amounts of highly erodible land 
are being converted to the production of agricultural commodities. 
Subtitle C—Wetland Conservation 
PROGRAM INEUGIBILTTY 
SEC. 1221. Except as provided in section 1222 and notwithstanding 
16 USC 3821. 
any other provision of law, following the date of enactment of this 
^o**' P-1^08. 
Act, any person who in any crop year produces an agricultural 
commodity on converted wetland shall be ineligible for— 
(1) as to any commodity produced during that crop year by 
such person— 
(A) any type of price support or payment made available 
under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), 
the Commodity Credit Corporation Charter Act (15 U.S.C. 
714 et seq.), or any other Act; 
99 STAT. 1508 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loans. 
Ante, p. 1503. 
Disaster 
assistance. 
Loans. 
(B) a farm storage facility loan made under section 4(h) of 
the Commodity Credit Corporation Charter Act (15 U.S.C. 
714b(h)); 
(C) crop insurance under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.); 
(D) a disaster payment ro«de under the Agricultural Act 
of 1949 (7 U.S.C. 1421 et seq.), or 
(E) a loan made, insured, or guaranteed under the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) or any other provision of law administered by 
the Farmers Home Administration, if the Secretary deter-
mines that the proceeds of such loan will be used for a 
purpose that will contribute to conversion of wetlands 
(other than as provided in this subtitle) to produce an 
agricultural commodity; or 
(2) a pajnnent made under section 4 or 5 of the Commodity 
Credit Corporation Charter Act (15 U.S.C. 714b or 714c) during 
such crop year for the storage of an agricultural commodity 
acquired by the Commodity Credit Corporation. 
Prohibitions. 
Loans. 
Ante, p. 1507. 
16 u s e 3822. 
Livestock. 
Fish and fishing. 
Flood control. 
EXEMPTIONS 
SEC. 1222. (a) No person shall become ineligible under section 1221 
for program loans, payments, and benefits as the result of the 
production of a crop of an agricultural commodity on— 
(1) converted wetland if the conversion of such wetland was 
commenced before the date of enactment of this Act; 
(2) an artificial lake, pond, or wetland created by excavating 
or diking non-wetland to collect and retain water for purposes 
such as water for livestock, fish production, irrigation (including 
subsurface irrigation), a settling basin, cooling, rice production, 
or flood control; 
(3) a wet area created by a water delivery system, irrigation, 
irrigation system, or application of water for irrigation; or 
(4) wetland on which production of an agricultural commodity 
is possible as a result of a natural condition, such as drought, 
and without action by the producer that destroys a natural 
wetland characteristic. 
(b) Section 1221 shall not apply to a loan described in section 1221 
made before the date of enactment of this Act. 
(c) The Secretary may exempt a person from section 1221 for any 
action associated with the production of an agricultural commodity 
on converted wetland if the effect of such action, individually and in 
connection with all other similar actions authorized by the Sec-
retary in the area, on the hydrological and biological aspect of 
wetland is minimal. 
16 u s e 3823. 
Regulations. 
Post, p. 1515. 
CONSULTATION WFTH SECRETARY OF THE INTERIOR 
SEC. 1223. The Secretary shall consult with the Secretary of the 
Interior on such determinations and actions as are necessary to 
carry out this subtitle, including— 
(1) the identification of wetland; 
(2) the determination of exemptions under section 1222; and 
(3) the issuance of regulations under section 1244 to carry out 
this subtitle. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1509 
Subtitle D—Conservation Reserve 
CONSERVATION RESERVE 
SEC. 1231. (a) During the 1986 through 1990 crop years, the 
Secretary shall formulate and carry out a conservation reserve 
program, in accordance with this subtitle, through contracts to 
assist owners and operators of highly erodible cropland in conserv-
ing and improving the soil and water resources of their farms or 
ranches. 
0?) The Secretary shall enter into contracts with owners and 
operators of farms and ranches containing highly erodible cropland 
to place in the conservation reserve— 
(1) during the 1986 crop year, not less thein 5, nor more than 
45, million acres; 
(2) during the 1986 through 1987 crop years, a total of not less 
than 15, nor more than 45, million acres; 
(3) during the 1986 through 1988 crop years, a total of not less 
than 25, nor more than 45, million acres; 
(4) during the 1986 through 1989 crop years, a total of not less 
than 35, nor more than 45, million acres; and 
(5) during the 1986 through 1990 crop years, a total of not less 
than 40, nor more than 45, million acres. 
(cXlXA) Notwithstanding subsection O
t
>
)
, effective for each of the 
fiscal years 1986 through 1989, the Secretary may reduce by up to 25 
percent the number of acres of highly erodible land required to be 
placed under contract during each fiscal year if the Secretary 
determines that the rental payments to be made under section 
12330?) on such acres are likely to be significantly lower in the 
succeeding year. 
(B) Paragraph (A) shall not affect the requirements of parsigraph 
(5) of subsection (b). 
(2) The Secretary may include in the program established under 
this subtitle lands that are not highly erodible lands but that pose 
an off-farm environmental threat or, if permitted to remain in 
production, pose a threat of continued degradation of productivity 
due to soil salinity. 
(d) Under the program established under this subtitle, the Sec-
retary shall not place under contract more than 25 percent of the 
cropland in any one county, except that the Secretary may exceed 
the limitation established by this subsection in a county to the 
extent that the Secretary determines that such action would not 
adversely affect the local economy of such county. 
(e) For the purpose of carrying out this subtitle, the Secretary 
shall enter into contracts of not less than 10, nor more than 15, 
years. 
DUTIES OF OWNERS AND OPERATORS 
SEC. 1232. (a) Under the terms of a contract entered into under 
this subtitle, during the term of such contract, an owner or operator 
of a farm or ranch must agree— 
(1) to implement a plan approved by the local conservation 
district (or in an area not located within a conservation district, 
a plan approved by the Secretary) for converting highly erodible 
cropland normally devoted to the production of an agricultural 
commodity on the farm or ranch to a less intensive use (as 
defined by the Secretary), such as pasture, permanent grass, 
Contracts. 
16 use 3831. 
Post, p. 1511. 
Prohibition. 
Prohibition. 
Contracts. 
16 use 3832. 
99 STAT. 1510 
PUBLIC LAW 99-198—DEC. 23, 1985 
legumes, forbs, shrubs, or trees, substantially in accordance 
with a schedule outlined in the plan; 
(2) to place highly erodible cropland subject to the contract in 
the conservation reserve established under this subtitle; 
(3) not to use such land for agricultural purposes, except as 
permitted by the Secretary; 
(4) to establish approved vegetative cover on such land; 
(5) on the violation of a term or condition of the contract at 
any time the owner or operator has control of such land— 
(A) to forfeit all rights to receive rental pajmnents and 
cost sharing payments under the contract and to refund to 
the Secretary any rental pajnnents and cost sharing pay-
ments received by the owner or operator under the con-
tract, together with interest thereon as determined by the 
Secretary, if the Secretary, after considering the rec-
ommendations of the soil conservation district and the Soil 
Conservation Service, determines that such violation is of 
such nature as to warrant termination of the contract; or 
(B) to refund to the Secretary, or accept adjustments to, 
the rental payments and cost sharing pa3rments provided to 
the owner or operator, as the Secretary considers appro-
priate, if the Secretary determines that such violation does 
not warrant termination of the contract; 
(6) on the transfer of the right and interest of the owner or 
operator in land subject to the contract— 
(A) to forfeit all rights to rental pajmients and cost 
sharing pajrments under the contract; and 
(B) to refund to the United States all rental payments 
and cost sharing pajnnents received by the owner or opera-
tor, or accept such pajmient adjustments or make such 
refunds as the Secretary considers appropriate and consist-
ent with the objectives of this subtitle, 
unless the tremsferee of such land agrees with the Secretary to 
assume all obligations of the contract; 
(7) not to conduct any harvesting or grazing, nor otherwise 
make commercial use of the forage, on land that is subject to 
the contract, nor adopt any similar practice specified in the 
contract by the Secretary as a practice that would tend to defeat 
the purposes of the contract, except that the Secretary may 
permit harvesting or grazing or other commercial use of the 
forage on land that is subject to the contract in response to a 
drought or other similar emergency; 
Prohibition. 
(8) not to conduct any planting of trees on land that is subject 
Forests and 
to the Contract unless the contract specifies that the harvesting 
forest products. 
^^^ commercial sale of trees such as Christmas trees are prohib-
ited, nor otherwise make commercial use of trees on land that is 
subject to the contract unless it is expressly permitted in the 
contract, nor adopt any similar practice specMed in the contract 
by the Secretary as a practice that would tend to defeat the 
purposes of the contract, except that no contract shall prohibit 
activities consistent with customary forestry practice, such as 
pruning, thinning, or stand improvement of trees, on lands 
converted to forestry use; 
(9) not to adopt any practice specified by the Secretary in the 
contract as a practice that would tend to defeat the purposes of 
this subtitle; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1511 
(10) to comply with such additional provisions as the Sec-
retary determines are desirable and are included in the contract 
to carry out this subtitle or to facilitate the practical adminis-
tration thereof. 
Ot)) The plan referred to in subsection (aXl)— 
(1) shall set forth— 
(A) the conservation measures and practices to be carried 
out by the owner or operator during the^ term of the con-
tract; and 
(B) the commercial use, if any, to be permitted on the 
land during such term; and 
(2) may provide for the permanent retirement of any existing 
cropland base and allotment history for the land. 
(c) To the extent practicable, not less than one eighth of the 
number of acres of land that is placed in the conservation reserve 
under this subtitle in each of the 1986 through 1990 crop years shall 
be devoted to trees. 
DUTIES OF THE SECRETARY 
SEC. 1233. In return for a contract entered into by an owner or 
operator under section 1232, the Secretary shall— 
(1) share the cost of carrying out the conservation measures 
and practices set forth in the contract for which the Secretary 
determines that cost sharing is appropriate and in the public 
interest; 
(2) for a period of years not in excess of the term of the 
contract, pay an annual rental pa3mnient in an amount nec-
essary to compensate for— 
(A) the conversion of highly erodible cropland normally 
devoted to the production of an agricultural commodity on 
a farm or ranch to a less intensive use; and 
(B) the retirement of any cropland base and allotment 
history that the owner or operator agrees to retire perma-
nently; and 
(3) provide conservation technical assistance to assist the 
owner or operator in carrying out the contract. 
Contracts. 
16 u s e 3833. 
Ante, p. 1509. 
PAYMENTS 
SEC. 1234. (a) The Secretary shall provide payment for obligations 
incurred by the Secretary under a contract entered into under this 
subtitle— 
(1) with respect to any cost-sharing pa3mient obligation in-
curred by the Secretary, as soon as possible after the obligation 
is incurred; and 
(2) with respect to any annual rental payment obligation 
incurred by the Secretary— 
(A) as soon as practicable after October 1 of each calendar 
year; or 
(B) at the discretion of the Secretary, at any time prior to 
such date during the year that the obligation is incurred. 
G)) In making cost sharing pajrments to owners and operators 
under contracts entered into under this subtitle, the Secretary shall 
pay 50 percent of the cost of establishing conservation measures and 
practices set forth in such contracts for which the Secretary deter-
mines that cost-sharing is appropriate and in the public interest. 
Contracts. 
16 u s e 3834. 
99 STAT. 1512 
PUBLIC LAW 99-198—DEC. 23, 1985 
(cXl) In determining the amount of annual rental pa)mients to be 
paid to owners and operators for converting highly erodible cropland 
normally devoted to the production of an agricultural commodity to 
less intensive use, the Secretary may consider, among other things, 
the amount necessary to encourage owners or operators of highly 
erodible cropland to participate in the program established by this 
subtitle. 
(2) The amounts payable to owners or operators in the form of 
rental payments under contracts entered into under this subtitle 
may be determined through— 
(A) the submission of bids for such contracts by owners and 
operators in such manner as the Secretary may prescribe; or 
(B) such other means as the Secretary determines are 
appropriate. 
(3) In determining the acceptability of contract offers, the Sec-
retary may— 
(A) take into consideration the extent of erosion on the land 
that is the subject of the contract and the productivity of the 
acreage diverted; 
(B) where appropriate, accept contract offers that provide for 
the establishment of— 
(i) shelterbelts and windbreaks; or 
(ii) permanently vegetated stream borders, filter strips of 
permanent grass, forbs, shrubs, and trees that will reduce 
sedimentation substantially; 
(C) establish different criteria in various States and regions of 
the United States to determine the extent to which erosion may 
be abated; and 
(D) give priority to offers made by owners and operators who 
are subject to the highest degree of economic stress, such as a 
general tightening of agricultural credit or an unfavorable 
relationship between production costs and prices received for 
agricultural commodities. 
(dXD Except as otherwise provided in this section, payments 
under this subtitle— 
(A) shall be made in cash or in commodities in such amount 
and on such time schedule as is agreed on and specified in the 
contract; and 
(B) may be made in advance of determination of performance. 
(2) If such payment is made with in-kind commodities, such 
pajnnent shall be made by the Commodity Credit Corporation— 
(A) by delivery of the commodity involved to the owner or 
operator at a warehouse or other similar facility located in the 
county in which the highly erodible cropland is located or at 
such other location as is agreed to by the Secretary and the 
owner or operator; 
(B) by the transfer of n^otiable warehouse receipts; or 
(C) by such other method, including the sale of the commodity 
in commercial markets, as is determined by the Secretary to be 
appropriate to enable the owner or operator to receive efficient 
and expeditious possession of the commodity. 
(3) If stocks of a commodity acquired by the Commodity Credit 
Corporation are not readily available to make full payment in kind 
to the owner or operator, the Secretary may substitute full or 
partial pa5rment in cash for payment in kind. 
Regulations. 
(e) If an owner or operator who is entitled to a payment under a 
contract entered into under this subtitle dies, becomes incompetent, 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1513 
is otherwise unable to receive such payment, or is succeeded by 
another person who renders or completes the required performance, 
the Secretary shall make such payment, in accordance with regula-
tions prescribed by the Secretary and without regard to any other 
provision of law, in such manner as the Secretary determines is fair 
and reasonable in light of all of the circumstances. 
(fKD The total amount of rental payments, including rental pay- Prohibition, 
ments made in the form of in-kind commodities, made to an owner 
or operator under this subtitle for any fiscal year may not exceed 
$50,000. 
(2XA) The Secretary shall issue regulations— 
Regulations, 
(i) defining the term "person" as used in this subsection; and 
(ii) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tion contained in this subsection, 
(B) The regulations issued by the Secretary on December 18,1970, 
under section 101 of the Agricultural Act of 1970 (7 U.S.C. 1307), 
shall be used to determine whether corporations and their stock-
holders may be considered as separate persons under 
this 
subsection. 
(3) Rental payments received by an owner or operator shall be in 
addition to, and not affect, the tot^d amount of pajmients that such 
owner or operator is otherwise eligible to receive under this Act or 
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). 
CONTRACTS 
SEC. 1235. (aXD No contract shall be entered into under this 
subtitle concerning land with respect to which the ownership has 
changed in the 3-year period preceding the first year of the contract 
period unless— 
(A) the new ownership was acquired by will or succession as a 
result of the death of the previous owner; 
(B) the new ownership was acquired before January 1, 1985; 
or 
(C) the Secretary determines that the land was acquired 
under circumstances that give adequate assurance that such 
land was not acquired for the purpose of placing it in the 
program established by this subtitle. 
(2) Paragraph (1) shall not— 
(A) prohibit the continuation of an agreement by a new owner 
after an agreement has been entered into under this subtitle; or 
(B) require a person to own the land as a condition of eligi-
bility for entering into the contract if the person— 
(i) has operated the land to be covered by a contract 
under this section for at least 3 years preceding the date of 
the contract or since January 1, 1985, whichever is later; 
and 
(ii) controls the land for the contract period. 
(b) If during the term of a contract entered into under this subtitle 
an owner or operator of land subject to such contract sells or 
otherwise transfers the ownership or right of occupancy of such 
land, the new owner or operator of such land may— 
(1) continue such contract under the same terms or 
conditions; 
(2) enter into a new contract in accordance with this subtitle; 
or 
Prohibition. 
16 use 3835. 
Prohibitions. 
99 STAT. 1514 
PUBLIC LAW 99-198—DEC. 23, 1985 
16 u s e 3836. 
Regulations. 
Contracts. 
Ante, pp. 1506, 
1507. 
(3) elect not to participate in the program established by this 
subtitle. 
(cXD The Secretary may modify a contract entered into with an 
owner or operator under this subtitle i
f
— 
(A) the owner or operator agrees to such modification; and 
(B) the Secretary determines that such modification is 
desirable— 
(i) to carry out this subtitle; 
(ii) to facilitate the practical administration of this sub-
title; or 
(iii) to achieve such other goals as the Secretary deter-
mines are appropriate, consistent with this subtitle. 
(2) The Secretary may modify or waive a term or condition of a 
contract entered into under this subtitle in order to permit all or 
part of the land subject to such contract to be devoted to the 
production of an agricultural commodity during a crop year, subject 
to such conditions as the Secretary determines are appropriate. 
(dXD The Secretary may terminate a contract entered into with 
an owner or operator under this subtitle i
f
—
• 
(A) the owner or operator agrees to such termination; and 
(B) the Secretary determines that such termination would be 
in the public interest. 
(2) At least 90 days before taking any action to terminate under 
paragraph (1) all conservation reserve contracts entered into under 
this subtitle, the Secretary shall provide written notice of such 
action to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate. 
BASE HISTORY 
SEC. 1236. (a) A reduction, based on a ratio between the total 
cropland acreage on the farm and the acreage placed in the con-
servation reserve authorized by this subtitle, as determined by the 
Secretary, shall be made during the period of the contract, in the 
aggregate, in crop bases, quotas, and allotments on the farm with 
respect to crops for which there is a production adjustment program. 
(b) Notwithstanding sections 1211 and 1221, the Secretary, by 
appropriate regulation, may provide for preservation of cropland 
base and allotment history applicable to acreage converted from the 
production of Mricultural commodities under this section, for the 
purpose of any Federal program under which the history is used as a 
basis for participation in the program or for an allotment or other 
limitation in the program, unless the owner and operator agree 
under the contract to retire permanently that cropland base and 
allotment history. 
Subtitle E—Administration 
USE OF COMMODITY CREDIT CORPORATION 
16 use 3841. 
SEC. 1241. (aXD During each of the fiscal years ending September 
30, 1986, and September 30, 1987, the ^retary shall use the 
facilities, services, authorities, and funds of the Commodity Credit 
Ante, p. 1509. 
Corporation to carry out subtitle D. 
Prohibition. 
(2) During the fiscal year ending September 30, 1988, and each 
fiscal year thereafter, the Secretary may use the facilities, services, 
authorities, and funds of the Commodity Credit Corporation to carry 
out subtitle D, except that the Secretary may not use funds of the 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1515 
Corporation for such purpose unless the Corporation has received 
funds to cover such expenditures from appropriations made to carry 
out this subtitle. 
(b) The authority provided by subtitles (A) through (E) shall be in 
addition to, and not in place of, other authority granted to the 
Secretary and the Commodity Credit Corporation. 
USE OF OTHER AGENCIES 
SEC. 1242. (a) In canying out subtitles B, C, and D, the Secretary 
shall use the services of local, county, and State committees estab-
lished under section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)). 
(bXD In carrying out subtitle D, the Secretary may utilize the 
services of the Soil Conservation Service and the Forest Service, the 
Fish and Wildlife Service, State forestry agencies, State fish and 
game agencies, land-grant colleges, local, county, and State commit-
tees established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h), soil and water conserva-
tion districts, and other appropriate agencies. 
(2) In carrying out subtitle D at the State and county levels, the 
Secretary shall consult with, to the extent practicable, the Fish and 
Wildlife Service, State forestry agencies, State fish and game agen-
cies, land-grant colleges, soil-conservation districts, and other appro-
priate agencies. 
ADMINISTRATION 
SEC. 1243. (a) The Secretary shall establish, by regulation, an 
appeal procedure under which a person who is adversely affected by 
any determination made under subtitles A through E may seek 
review of such determination. 
(b) Ineligibility under section 1211 or 1212 of a tenant or share-
cropper for benefits shall not cause a landlord to be ineligible for 
benefits for which the landlord would otherwise be eligible with 
respect to commodities produced on lands other than those operated 
by the tenant or sharecropper. 
(c) In carr3dng out subtitles B through E, the Secretary shall 
provide adequate safeguards to protect the interests of tenemts and 
sharecroppers, including provision for sharing, on a fair and equi-
table basis, in payments under the program established by 
subtitle D. 
REGULATIONS 
SEC. 1244. Not later than 180 days after the date of enactment of 
this Act, the Secretary shall issue such regulations as the Secretary 
determines are necessary to carry out subtitles A through E, includ-
ing regulations that— 
(1) define the term "person"; 
(2) govern the determination of persons who shall be ineligible 
for program benefits under subtitles B and C, so as to ensure 
a fair and reasonable determination of ineligibility; and 
(3) protect the interests of landlords, tenants, and 
sharecroppers. 
Ante, pp. 1504-
1514. 
16 u s e 3842. 
Ante, pp. 1506, 
1507, 1509. 
Schools and 
colleges. 
Schools and 
colleges. 
Regulations. 
16 u s e 3843. 
Ante, p. 1506. 
16 u s e 3844. 
99 STAT. 1516 
PUBLIC LAW 99-198—DEC. 23, 1985 
16 u s e 3845. 
Ante, pp. 1504-
1514. 
State and local 
governments. 
16 u s e 2005a. 
Report. 
Report. 
16 u s e 2005. 
President of U.S. 
President of U.S. 
AUTHORIZATION FOR APPROPRIATIONS 
SEC. 1245. There are authorized to be appropriated without fiscal 
year limitation such sums as may be necessary to carry out subtitles 
A through E. 
Subtitle F—Other Conservation Provisions 
TECHNICAL ASSISTANCE FOR WATER RESOURCES 
SEC. 1251. (a) Notwithstanding any other provision of law, the 
Secretary of Agriculture may formulate plans and provide technical 
assistance to property owners and agencies of State and local 
governments and interstate river basin commissions, at their 
request, to— 
(1) protect the quality and quantity of subsurface water, 
including water in the Nation's aquifers; 
(2) enable property owners to reduce their vulnerability to 
flood h£izards that also may affect water resources; and 
(3) control the salinity in the Nation's agricultural water 
resources. 
(b) The Secretary shall submit by February 15, 1987, to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate a 
report evaluating the plans and technical assistance authorized in 
subsection (a). Such report shall include any recommendations as to 
whether the plan and assistance should be extended, how any plan 
and assistance could be improved, and any other relevant informa-
tion and data relating to costs and other elements of the plan or 
assistance that would be helpful to such Committees. 
SOIL AND WATER RESOURCES CONSERVATION 
SEC. 1252. (a) Subsection (d) of section 5 of the Soil and Water 
Resources Conservation Act of 1977 (16 U.S.C. 2004(b)) is amended to 
read as follows: 
"(d) The Secretary shall conduct four comprehensive appraisals 
under this section, to be completed by December 31, 1979, December 
31, 1986, December 31, 1995, and December 31, 2()05, respectively. 
The Secretary may make such additional interim appraisals as the 
Secretary considers appropriate.". 
(b) Subsection (b) of section 6 of such Act (16 U.S.C. 2205(b)) is 
amended to read as follows: 
"(b) The initial program shall be completed not later than Decem-
ber 31, 1979, and program updates shall be completed by December 
31, 1987, December 31, 1997, and December 31, 2007, respectively.". 
(c) Section 7 of such Act (16 U.S.C. 2006) is amended by— 
(1) striking out subsection (a) and inserting in lieu thereof the 
following new subsection: 
"(aXD At the time Congress convenes in 1980, 1987, 1996, and 
2006, the President shall transmit to the Speaker of the House of 
Representatives and the President of the Senate the appraisal devel-
oped under section 5 and completed prior to the end of the previous 
year. 
"(2) At the time Congress convenes in 1980, 1988, 1998, and 2008, 
the President shall transmit to the Speaker of the House of Rep-
resentatives and the President of the Senate the initial program or 
updated program developed under section 6 and completed prior to 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1517 
the end of the previous year, together with a detailed statement of 
policy regarding soil and water conservation activities of the United 
States Department of Agriculture."; 
(2) striking out subsection (b); and 
(3) redesignating subsection (c) as subsection (b). 
(d) Section 10 of such Act (16 U.S.C. 2009) is amended by striking 
out "1985" and inserting in lieu thereof "2008". 
DRY LAND FARMING 
SEC. 1253. The first sentence of section 7(a) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590g(a)) is amended by— 
(1) striking out "and" at the end of clause (5); and 
(2) inserting before the period the following: 
", and (7) the promotion of energy and water conservation 
through dry land farming". 
SOFTWOOD TIMBER 
SEC. 1254. Section 608 of the Agricultural Programs Adjustment 
Act of 1984 (7 U.S.C. 1981 note) is amended to read as follows: 
98 Stat. 140. 
SOFTWOOD TIMBER 
"SEC. 608. (aXD Notwithstamding any other provision of law, the Loans. 
Secretary of Agriculture (hereinafter in this section referred to as 
the 'Secretary') may implement a program, pursuant to the rec- 
; <
! j 
ommendations contained in the study mandated by section 608 of 
the Agricultural Programs Adjustment Act of 1984 (7 U.S.C. 1421 
note), under which a distressed loan (as determined by the Sec- 7 USC1981 note. 
retary) made or insured under the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.), or a portion thereof, may be 
reamortized with the use of future revenue produced from the 
planting of softwood timber crops on marginal land (as determined 
by the Secretary) that— 
"(A) was previously used to produce an agricultural commod- 
i r 
ity or as pasture; and 
"(B) secures a loan made or insured under such Act. 
"(2) Accrued interest on a loan reamortized under this section 
may be capitalized and interest charged on such interest. 
"(3) All or a portion of the payments on such reamortized loan 
may be deferred until such softwood timber crop produces revenue 
or for a term of 45 years, whichever comes first. 
"(4) Repayment of such reamortized loan shall be made not later 
than 50 years after the date of reamortization. 
"(b) The interest rate on such reamortized loans shall be deter-
mined by the Secretary, but not in excess of the current average 
)deld on outstanding marketable obligations of the United States 
with periods to maturity comparable to the average maturities of 
such loans, plus not to exceed 1 percent, as determined by the 
Secretary and adjusted to the nearest one-eighth of 1 percent. 
"(c) To be eligible for such program— 
"(1) the borrower of such reamortized loan must place not less 
than 50 acres of such land in softwood timber production; 
"(2) such land (including timber) may not have any lien Prohibition, 
against such land other than a lien for— 
99 STAT. 1518 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(A) a loan made or insured under the Consolidated Farm 
7 use 1921 note. 
and Rural Development Act to secure such reamortized 
loan; or 
"(B) a loan made under this section, at the time of 
reamortization or thereafter, that is subject to a lien on 
such land (including timber) in favor of the Secretary; and 
"(3) the total amount of loans secured by such land (including 
timber) may not exceed $1,000 per acre. 
"(dXl) To assist such borrowers to place such land in softwood 
timber production, the Secretary may make loans to such borrowers 
for such purpose in an aggregate amount not to exceed the actual 
cost of tree planting for land placed in the program. 
"(2) Any such loan shall be secured by the land (including timber) 
on which the trees are planted. 
"(3) Such loans shall be made on the same terms and conditions as 
are provided in this section for reamortized loans. 
"(e) The Secretary shall issue such rules as are necessary to carry 
out this section, including rules prescribing terms and conditions 
for— 
"(1) reamortizing and making loans under this section; 
"(2) entering into security instruments and agreements under 
this section; and 
"(3) management and harvesting practices of the timber crop. 
"(f) There are authorized to be appropriated such sums as are 
necessary to carry out this section. 
Prohibition. 
"(g) No more than 50,000 acres may be placed in such prc^am.". 
AMENDMENT TO FARMLAND PROTECTION POUCY ACT 
SEC. 1255. (a) Section 1546 of the Farmland Protection Policy Act 
(7 U.S.C. 4207) is amended by striking out "Within one year after 
the enactment of this subtitle," and inserting in lieu thereof "On 
January 1, 1987, and at the beginning of each subsequent calendar 
year.". 
Regulations. 
Q}) Section 1548 of such Act (7 U.S.C. 4209) is amended by striking 
out "any State, local unit of government, or" and inserting before 
the period ": Provided, That the Governor of an affected State where 
a State policy or program exists to protect farmland may bring an 
action in the Federal district court of the district where a Federal 
7 use 4202. 
program is proposed to enforce the requirements of section 1541 of 
this subtitle and r^^lations issued pursuant thereto". 
TITLE XIII—CREDIT 
JOINT OPERATIONS 
SEC. 1301. (a) Sections 302 and 311(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1922 and 1941(a), respectively) 
are each amended by— 
(1) striking out "and partnerships" each place it appears after 
"corporations" and inserting ", partnerships, and joint oper-
ations" in lieu thereof; 
(2) striking out ", and partnerships" each place it appears 
after "corporations" and inserting ", partnerships, and joint 
operations" in lieu thereof; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1519 
(3) striking out "members, stockholders, or partners, as ap-
plicable," each place it appears smd inserting 'individuals" in 
lieu thereof, 
(b) Section 343 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991) is amended b y -
C
D striking out "and" before "(6)"; and 
(2) inserting before the period at the end thereof the follow-
ing: ", and (7) the term 'joint operation' means a joint farming 
operation in which two or more farmers work together sharing 
equally or unequally land, labor, equipment, expenses, and 
income". 
EUGIBIUTY FOR REAL ESTATE AND OPERATING LOANS 
SEC. 1302. (a) Section 302 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922) is amended b y -
C
D inserting "(a)" after the section designation; and 
(2) adding at the end thereof the following new subsection: 
"(b) The Secretary may not restrict eligibility for loans made or 
insured under this subtitle for purposes set forth in section 303 
solely to borrowers of loans that are outstanding on the date of 
enactment of the Food Security Act of 1985.". 
(b) Section 311 of such Act (7 U.S.C. 1941) is amended by adding at 
the end thereof the following new subsection: 
"(c) The Secretary may not restrict eligibility for loans made or 
insured under this subtitle for purposes set forth in section 312 
solely to borrowers of loans that are outstanding on the date of 
enactment of the Food Security Act of 1985.". 
Prohibition. 
7 u s e 1923. 
Prohibition. 
7 u s e 1942. 
FAMILY FARM RESTRICTION 
SEC. 1303. Sections 302 and 311 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1922 and 1941) are each amended 
by adding, at the end of the parenthetical provision in clause (3) of 
the second sentence, the following: "or, in the case of holders of the 
entire interest who are related by blood or marriage and all of whom 
are or will become farm operators, the ownership interest of each 
such holder separately constitutes not larger than a family farm, 
even if their interests collectively constitute larger than a family 
farm, as defined by the Secretary'. 
WATER AND WASTE DISPOSAL FACIUTIES 
SEC. 1304. (a) Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) is amended by— 
(1) adding at the end of paragraph (2) the following: 
"The Secretary shall fix the grant rate for each project in conform-
ity with regulations issued by the Secretary that shall provide for a 
graduated scale of grant rates establishing higher rates for projects 
in communities that have lower community population and income 
levels."; and 
(2) adding at the end thereof the following: 
"(16XA) The Secretary may make grants to private nonprofit 
organizations for the purpose of enabling them to provide to associa-
tions described in paragraph (1) of this subsection technical assist-
ance and training to— 
"(i) identify, and evaluate alternative solutions to, problems 
relating to the obtaining, storage, treatment, purification, or 
Regulations. 
Grants. 
99 STAT. 1520 
PUBLIC LAW 99-198—DEC. 23, 1985 
Grants. 
Prohibition. 
Grants. 
Post, p. 1521. 
Grants. 
Loans. 
Study. 
Loans. 
Grants. 
Ante, p. 1519. 
Report. 
distribution of water or the collection, treatment, or disposal of 
waste in rural areeis; 
"(ii) prepare applications to receive financial assistance for 
any purpose specified in paragraph (2) of this subsection from 
any public or private source; and 
"(iii) improve the operation and maintenance practices at any 
existing works for the storage, treatment, purification, or dis-
tribution of water or the collection, treatment, or disposal of 
waste in rural areas. 
"(B) In selecting recipients of grants to be made under subpara-
graph (A), the Secretary shall give priority to private nonprofit 
organizations that have experience in providing the technical assist-
ance and training described in subparagraph (A) to associations 
serving rural areas in which residents have low income and in 
which water supply systems or waste facilities are unhealthful. 
"(C) Not less than 1 nor more than 2 per centum of any funds 
provided in Appropriations Acts to carry out paragraph (2) of this 
subsection for any fiscal year shall be reserved for grants under 
subparagraph (A) unless the applications, qualifying for grants, 
received by the Secretary from eligible nonprofit organizations for 
the fiscal year total less than 1 per centum of those funds. 
"(17) In the case of water and waste disposal facility projects 
serving more than one separate rural community, the Secretary 
shall use the median population level and the community income 
level of all the separate communities to be served in applying the 
standards specified in paragraph (2) of this subsection and section 
307(aX3XA). 
"(18) Grants under paragraph (2) of this subsection may be used to 
pay the local share requirements of another Federal grant-in-aid 
program to the extent permitted under the law providing for such 
grant-in-aid program. 
"(19XA) In the approval and administration of a loan made under 
paragraph (1) for a water or waste disposal facility, the Secretary 
shall consider fully any recommendation made by the loan applicant 
or borrower concerning the technical design and choice of materials 
to be used for such facility. 
"(B) If the Secretary determines that a design or materials, other 
than those that were recommended, should be used in the water 
or waste disposal facility, the Secretary shall provide such applicant 
or 
borrower 
with 
a 
comprehensive 
justification 
for 
such 
determination.". 
(bXD The Secretary of Agriculture shall— 
(A) conduct a study of the practicality and cost effectiveness of 
making loans and grants under section 306 of the C]!onsolidated 
Farm and Rural Development Act (7 U.S.C. 1926) for the 
construction of water and waste disposal facilities in rural areas 
at individual locations, rather than central or community loca-
tions; and 
(B) in such study consider the feasibility of small multiuser 
drinking water facilities, the costs involved in connecting rural 
residents into the community water systems, improvements to 
small community water systems, and alternative rural drinking 
water systems. 
(2) Not later than 120 days after the date of enactment of this Act, 
the Secretary shall submit a report on the results of the study 
required under paragraph (1) to the (Dommittee on Agriculture of 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1521 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate. 
INTEREST RATES—WATER AND WASTE DISPOSAL FACIUTY AND 
COMMUNITY FACIUTY LOANS 
SEC. 1304A. Section 307(aX3XA) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1927(aX3XA)) is amended b y -
C
D striking out "where the median family income of the 
persons to be served by such facility is below the poverty line 
prescribed by the Office of Management and Budget, as adjusted 
under section 624 of the Economic Opportunity Act of 1964 (42 
U.S.C. 2971d)" and inserting in lieu thereof "where the median 
household income of the persons to be served by such facility is 
below the higher of 80 per centum of the 
statewide 
nonmetropolitan median household income or the poverty line 
established by the Office of Management and Budget, as revised 
under section 673(2) of the Community Services Block Grant Act 
(42 U.S.C. 9902(2))"; and 
(2) inserting before the period at the end thereof the follow-
ing: "; and not in excess of 7 per centum per annum on loans for 
such facilities that do not qualify for the 5 per centum per 
annum interest rate but are located in areas where the median 
household income of the persons to be served by the facility does 
not exceed 100 per centum of the statewide nonmetropolitein 
median household income". 
MINERAL RIGHTS AS COLLATERAL 
SEC. 1305. Section 307 of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1927) is amended by adding at the end thereof Supra. 
the following: 
"(d) With respect to a farm ownership loan made after the date of 
the enactment of this subsection, unless appraised values of the 
rights to oil, gas, or other minerals are specifically included as part 
of the appraised value of collateral securing the loan, the rights to 
oil, gas, or other minerals located under the property shall not be 
considered part of the collateral securing the loan. Nothing in this 
subsection shall prevent the inclusion of, as part of the collateral 
securing the loan, any pajmaent or other compensation the borrower 
may receive for damages to the surface of the collateral real estate 
resulting from the exploration for or recovery of minerals.". 
Loans. 
Petroleum and 
petroleum 
products. 
FARM RECORDKEEPING TRAINING FOR UMITED RESOURCE BORROWERS 
SEC. 1306. The first sentence of section 312(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1942(a)) is amended— 
(1) by striking out "and" at the end of clause (10); and 
(2) by inserting before the period at the end thereof the Loans. 
following new clause: ", and (12) training in maintaining records 
of farming and ranching operations for limited resource borrow-
ers receiving loans under section 310D". 
7 USC 1934. 
NONSUPERVISED ACCOUNTS 
SEC. 1307. Section 312 of the (Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1942) is amended by adding at the end the 
Supra. 
following: 
99 STAT. 1522 
PUBLIC LAW 99-198—DEC. 23, 1985 
Loans. 
Banks and 
banking. 
"(e) Notwithstanding any other provision of this title, the Sec-
retary shall reserve not more than 10 percent of any loan made 
under this subtitle or $5,000 of such loan, whichever is less, to be 
placed in a nonsupervised bank account which may be used at the 
discretion of the borrower for necessary family living needs or 
purposes not inconsistent with previously agreed upon farming or 
ranching plans. If the borrower exhausts this reserve, the Secretary 
may review and adjust the farm plan with the borrower and con-
sider rescheduling the loan, extending additional credit, the use of 
income proceeds to pay necessary farm and home and other ex-
penses, or additional available loan servicing.". 
EUGIBIUTY FOR EMERGENCY LOANS 
SEC. 1308. (a) Section 321(a) of the Consolidated Farm and Rural 
98 Stat. 138. 
Development Act (7 U.S.C. 1961(a)) is amended by— 
(1) inserting after "United States" in clause (1) of the first 
sentence "and who are owner-operators (in the case of loans for 
a purpose under subtitle A) or operators (in the case of loans for 
Corporations. 
a purpose under subtitle B) of not larger than family farms"; 
(2) in clause (2) of the first sentence, striking out "farm 
cooperatives or private domestic corporations or partnerships in 
which a majority interest is held by members, stockholders, or 
partners who are citizens of the United States if the coopera-
tive, corporation, or partnership is engaged primarily in farm-
ing, ranching, or aquaculture," and inserting in lieu thereof the 
following: "farm cooperatives, private domestic corporations, 
partnerships, or joint operations (A) that are engaged primarily 
in farming, ranching, or aquaculture, and (B) in which a major-
ity interest is held by individuals who are citizens of the United 
States and who are owner-operators (in the case of loans for a 
purpose under subtitle A) or operators (in the case of loans for a 
purpose under subtitle B) of not larger than family farms (or in 
the case of such cooperatives, corporations, partnerships, or 
joint operations in which a majority interest is held by individ-
uals who are related by blood or marriage, as defined by the 
Secretary, such individuals must be either owners or operators 
of not larger than a family farm and at least one such individ-
ual must be an operator of not larger than a family farm),"; and 
(Corporations. 
(3) inserting after the first sentence the following: "In addi-
tion to the foregoing requirements of this subsection, in the case 
of farm cooperatives, private domestic corporations, partner-
ships, and joint operations, the family farm requirement of the 
preceding sentence shall apply as well to all farms in which the 
entity has an ownership and operator interest (in the case of 
loans for a purpose under subtitle A) or an operator interest (in 
the case of loans for a purpose under subtitle B).". 
(bXD Subsection (b) of section 321 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961(b)) is amended to read as 
follows: 
"(b) An applicant shall be ineligible for financial assistance under 
this subtitle for crop losses if crop insurance was available to the 
applicant for such crop losses under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.).". 
Prohibition. 
(2) The amendment made by paragraph (1) shall not apply to a 
7 use 1961 note, person whose eligibility for an emergency loan is the result of 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1523 
damage to an annual crop planted or harvested before the end of 
1986. 
(3) Section 324(bXl) of such Act (7 U.S.C. 1964(bXl)) is amended by 
striking out "but (A)" and all that follows through "Secretary" and 
inserting in lieu thereof "but not in excess of 8 percent per annum". 
(c) Subsection (a) of section 324 of such Act (7 U.S.C. 1964(a)) is 
amended to read as follows: 
"(a) No loan made or insured under this subtitle may exceed the 
amount of the actual loss caused by the disaster or $500,000, which-
ever is less, for each disaster.". 
(d) Section 330 of such Act (7 U.S.C. 1971) is repealed. 
Prohibition. 
Repeal. 
SETTLEMENT OF CLAIMS 
SEC. 1309. Subsection (d) of the second paragraph of section 331 of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
1981(d)) is amended to read as follows: 
"(d) compromise, adjust, reduce, or charge-off claims, and adjust, 
modify, subordinate, or release the terms of security instruments, 
leases, contracts, and agreements entered into or administered by 
the Farmers Home Administration under any of its programs, as 
circumstances may require, to carry out this title. The Secretary 
may release borrowers or others obligated on a debt incurred under 
this title from personal liability with or without payment of any 
consideration at the time of the compromise, adjustment, reduction, 
or charge-off of any claim, except that no compromise, adjustment, 
reduction, or charge-off of any claim may be made or carried out— 
"(1) on terms more favorable than those recommended by the 
appropriate county committee utilized pursuant to section 332; 
or 
"(2) after the claim has been referred to the Attorney Gen-
eral, unless the Attorney General approves;". 
Securities. 
Contracts. 
Post, p. 1524. 
OIL AND GAS ROYALTIES 
SEC. 1310. (a) Subtitle D of the Consolidated Farm and Rural 
Development Act is amended by inserting after section 33IB the 
following new section: 
"SEC. 331C. (a) The Secretary shall permit a borrower of a loan 
made or insured under this title to make a prospective payment on 
such loan with proceeds from— 
"(1) the leasing of oil, gas, or other mineral rights to real 
property used to secure such loan; or 
"(2) the sale of oil, gas, or other minerals removed from real 
property used to secure such loan, if the value of the rights to 
such oil, gas, or other minerals has not been used to secure such 
loan. 
"(b) Subsection (a) shall not apply to a borrower of a loan made or 
insured under this title with respect to which a liquidation or 
foreclosure proceeding is pending on the date of enactment of the 
Food Security Act of 1985.'\ 
(b) Section 204 of the Emergency Agricultural Credit Adjustment 
Act of 1978 (7 U.S.C. 1947 note) is amended by adding at the end 
thereof the following new subsection: 
"(eXD The Secretary shall permit a borrower of a loan made or 
insured under this title to make a prospective payment on such loan 
with proceeds from— 
Loans. 
7 u s e 1981c. 
Real property. 
Prohibition. 
Loans. 
7 u s e note precl 
1961. 
Loans. 
99 STAT. 1524 
PUBLIC LAW 99-198—DEC. 23, 1985 
Real property. 
"(A) the leasing of oil, gas, or other mineral rights to real 
property used to secure such loan; or 
"(B) the sale of oil, gas, or other minerals removed from real 
property used to secure such loan if the value of the rights to 
such oil, gas, or other minerals has not been used to secure such 
loan. 
Prohibition. 
"(2) Paragraph (1) shall not apply to a borrower of a loan made or 
insured under this title with respect to which a liquidation or 
foreclosure proceeding is pending on the date of enactment of the 
Food Security Act of 1985." 
COUNTY COMMITTEES 
Regulations. 
SEC. 1311. Section 332(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C, 1982(a)) is amended to read as follows: 
"(a) In each county or area in which activities are carried out 
under this title, there shall be a county committee composed of 
three members. Two members shall be elected, from among their 
number, by farmers deriving the principal part of their income from 
farming who reside within the county or area, and one member, who 
shall reside within the county or area, shall be appointed by the 
Secretary for a term of three years. At the first election of county 
committee members under this subsection, one member shall be 
elected for a term of one year and one member shall be elected for a 
term of two years. Thereafter, elected members of the county 
committee shall be elected for a term of three years. The Secretary, 
in selecting the appointed member of the county committee, shall 
ensure that, to the greatest extent practicable, the committee is 
fairly representative of the farmers in the county or area. The 
Secretary may appoint an alternate for each member of the county 
committee. Appointed and alternate members of the county commit-
tee shall be removable by the Secretary for cause. The Secretary 
shall issue such regulations as are necessary relating to the election 
and appointment of members and alternate members of the county 
committees.". 
PROMPT APPROVAL OF LOANS AND LOAN GUARANTEES 
SEC. 1312. (a) Subtitle D of the Consolidated Farm and Rural 
Development Act is amended by inserting after section 333 (7 U.S.C. 
1983) the following new section: 
7 use 1983a. 
"SEC. 333A. (aXD The Secretary shall approve or disapprove an 
application for a loan or loan guarantee made under this title, and 
notify the applicant of such action, not later than 60 days after the 
Secretary has received a complete application for such loan or loan 
guarantee. 
"(2) If an application for a loan or loan guarantee under this title 
is incomplete, the Secretary shall inform the applicant of the rea-
sons such application is incomplete not later than 20 days after the 
Secretary has received such application. 
"(3) If an application for a loan or loan guarantee under this title 
is disapproved by the Secretary, the Secretary shall state the rea-
sons for the disapproval in the notice required under parsigraph (1). 
"(bXD Except as provided in paragraph (2), if an application for an 
insured loan under this title is approved by the Secretary, the 
Secretary shall provide the loan proceeds to the applicant not later 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1525 
than 15 days (or such longer period as the applicant may approve) 
after the application for the loan is approved by the Secretary. 
"(2) If the Secretary is unable to provide the loan proceeds to the 
applicant within such 15-day period because sufficient funds are not 
available to the Secretary for such purpose, the Secretary shall 
provide the loan proceeds to the applicant as soon as practicable (but 
in no event later than 15 days unless the applicant agrees to a 
longer period) after sufficient funds for such purpose become avail-
able to the Secretary. 
"(c) In an application for a loan or loan guarantee under this title 
is disapproved by the Secretary, but such action is subsequently 
reversed or revised as the result of an appeal within the Department 
of Agriculture or to the courts of the United States and the applica-
tion is returned to the Secretary for further consideration, the 
Secretary shall act on the application and provide the applicant 
with notice of the action within 15 days after return of the applica-
tion to the Secretary. 
"(d) In carr3dng out the approved lender program established by 
exhibit A to subpart B of part 1980 of title 7, Code of Federal 
Regulations, the Secretary shall ensure that each request of a 
lending institution for designation as an approved lender under such 
program is reviewed, and a decision made on the application, not 
later than 15 days after the Secretary has received a complete 
application for such designation. 
'(eXD As soon as practicable after the date of enactment of the 
Food Security Act of 1985, the Secretary shall take such steps as are 
necessary to make personnel, including the pajrment of overtime for 
such personnel, and other resources of the Department of Agri-
culture available to the Farmers Home Administration as are 
sufficient to enable the Farmers Home Administration to expedi-
tiously process loan applications that are submitted by farmers and 
ranchers. 
"(2) In carrjdng out paragraph (1), the Secretary may use any 
authority of law provided to the Secretary, including— 
"(A) the Agricultural Credit Insurance Fund established 
under section 309; and 
"(B) the emplojrment procedures used in connection with the 
emergency loan program established under subtitle C". 
(b) The amendment made by subsection (a) shall be effective with 
respect to applications for loans or loan guarantees under the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) received by the Secretary of Agriculture after the date of 
enactment of this Act. 
APPEALS 
SEC. 1313. (a) Subtitle D of the Consolidated Farm and Rural 
Development Act is amended by inserting after section 333A (as 
added by section 1312) the following new section: 
"SEC. 333B. (a) The Secretary shall provide an applicant for or 
borrower of a loan, or an applicant for or recipient of a loan 
guartuitee, under this title who has been directly and adversely 
affected by a decision of the Secretary made under this title (here-
after in this section referred to as the 'appellant') with written 
notice of the decision, an opportunity for an informal meeting, and 
an opportunity for a hearing with respect to such decision, in 
accordance with regulations issued by the Secretary consistent with 
this section. 
7 use 1929. 
Effective date. 
7 use 1983a 
note. 
Ante, p. 1524. 
Loans. 
Emulations. 
7 use 1983b. 
99 STAT. 1526 
PUBLIC LAW 99-198—DEC. 23, 1985 
study. 
Loans. 
Ante, p. 1524. 
Report. 
Conservation. 
State and local 
governments. 
"(bXD Not later than 10 days after such adverse decision, the 
Secretary shall provide the appellant with written notice of the 
decision, an opportunity for an informal meeting, an opportunity for 
a hearing, and the procedure to appeal such decision (including any 
deadlines for filing appeals). 
"(2) Upon the request of the appellant and in order to provide an 
opportunity to resolve differences and minimize formal appeals, the 
Secretary shall hold an informal meeting with the appellant prior to 
the initiation of any formal appeal of the decision of the Secretary. 
"(cXl) An appellant shall have the right to have— 
"(A) access to the personal file of the appellant maintained by 
the Secretary, including a reasonable opportunity to inspect and 
reproduce the file at an office of the Farmers Home Administra-
tion located in the area of the appellant; and 
"(B) representation by an attorney or nonattorney during the 
inspection and reproduction of files under subparagraph (A) and 
at any informal meeting or hearing. 
"(2) The Secretary may charge an appellant for any reasonable 
costs incurred in reproducing files under paragraph (IXA).". 
(bXD The Secretary of Agriculture shall conduct a study of the 
administrative appeals procedure used in the farm loan programs of 
the Farmers Home Administration. 
(2) In conducting such study, the Secretary shall examine— 
(A) the number and type of appeals initiated by loan ap-
plicants and borrowers; 
(B) the extent to which initial administrative actions are 
reversed on appeal; 
(C) the reasons that administrative actions are reversed, 
modified, or sustained on appeal; 
(D) the number and disposition of appeals in which the loan 
applicant or borrower is represented by legal counsel; 
(E) the quantity of time required to complete action on 
appeals and the reasons for delays; 
(F) the feasibility of the use of administrative law judges in 
the appeals process; and 
(G) the desirability of electing members of county committees 
established under section 332 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1982). 
(c) Not later than September 1, 1986, the Secretary shall submit a 
report describing the results of the study required under this section 
to the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition, and Forestry of the 
Senate. 
DISPOSITION AND LEASING OF FARMLAND 
SEC. 1314. (a) Section 335 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1985) is amended by— 
(1) striking out "Real" in subsection (b) and inserting in lieu 
thereof "Except as provided in subsection (e), real"; 
(2) in subsection (c)— 
(A) striking out "The" in the first sentence and inserting 
in lieu thereof "Except as provided in subsection (e), the'; 
and 
(B) adding at the end thereof the following new sentence: 
"Notwithstanding the preceding sentence, the Secretary 
may for conservation purposes grant or sell an easement, 
restriction, development rights, or the equivalent thereof. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1527 
to a unit of local or State government or a private nonprofit 
organization separately from the underlying fee or sum of 
all other rights possessed by the United States."; and 
(3) by adding at the end thereof the following new subsection: 
"(eXl) The Secretary shall to the extent practicable sell or lease 
farmland administered under this title in the following order of 
priority: 
(A) Sale of such farmland to operators (as of the time 
immediately before such sale) of not larger than family-size 
farms. 
"(B) Lease of such farmland to operators (as of the time 
immediately before such lease is entered into) of not larger than 
family-size farms. 
"(2) The Secretary shall not offer for sale or sell any such farm- 
Prohibition, 
land if the placing of such farmland on the market will have a 
detrimental effect on the value of farmland in the area. 
"(3XA) The Secretary shall consider granting, and may grant, to 
an operator of not larger than a family-size farm, in conjunction 
with paragraph (3), a lease with an option to purchase farmlEind 
administered under this title. 
"(B) The Secretary shall issue regulations providing for leasing Regulations, 
such land, or leasing such land with an option to purchase, on a fair 
and equitable basis. 
"(C) In leasing such land, the Secretary shall give special consider-
ation to a previous owner or operator of such land if such owner or 
operator has financial resources, and farm management skills and 
experience, that the Secretary determines are sufficient to assure a 
reasonable prospect of success in the proposed farming operation. 
"(D) To the extent the Secretary may lease or operate real prop-
erty under this subsection, the Secretary shall, if the Secretary 
determines to administer such property through management con-
tracts, offer the contracts on a competitive bid basis, giving pref-
erence to persons who will live in, and own and operate qualified 
small businesses in, the area where the property is located. 
"(4XAXi) The Secretary may sell farmland administered under 
this title through an installment sale or similar device that contains 
such terms as the Secretary considers necessary to protect the 
investment of the Federal Government in such land. 
"(ii) The Secretary may subsequently sell any contract entered 
Contracts, 
into to carry out clause (i). 
"(B) The Secretary shall offer such land for sale to operators of not 
larger than family-size farms at a price that reflects the aversige 
annual income that may be reasonably anticipated to be generated 
from farming such land. 
"(C) If two or more qualified operators of not larger than family- Regulations, 
size farms desire to purchase, or lease with an option to purchase, 
such land, the appropriate county committee shall, by majority vote, 
select the operator who may purchase such land, on such basis as 
the Secretary may prescribe by regulation. 
"(5XA) If the Secretary determines that farmland administered 
under this title is not suitable for sale or lease to an operator of not 
larger than a family-size farm because such farmland is in a tract or 
tracts that the Secretary determines to be larger than that nec-
essary for family-size farms, the Secretary shall subdivide such land 
into tracts suitable for such operator. 
"(B) The Secretary shall dispose of such subdivided farmland in 
accordance with this subsection. 
Real property. 
C!ontracts. 
Small business. 
51-194 O -
QL. 3 
Part 2 
99 STAT. 1528 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(6) If suitable farmland is available for disposition under this 
subsection, the Secretary shall— 
"(A) publish an announcement of the availability of such 
farmland in at least one newspaper that is widely circulated in 
the county in which the farmland is located; and 
"(B) post an announcement of the availability of such farm-
land in a prominent place in the local office of the Farmers 
Home Administration that serves the county in which the 
farmland is located. 
"(7) In the case of farmland administered under this title that is 
highly erodible land (as defined in section 1201 of the Food Security 
Act of 1985), the Secretary may require the use of specified conserva-
tion practices on such land as a condition of the sale or lease of such 
land. 
"(8) Notwithstanding any other provisions of law, compliance by 
the Secretary with this subsection shall not cause any acreage 
allotment, marketing quota, or acreage base assigned to such prop-
erty to lapse, terminate, be reduced, or otherwise be adversely 
affected.". 
7 use 1985 note. 
(b) The Secretary of Agriculture shall implement the amendments 
made by this section not later than 90 days after the date of 
enactment of this Act. 
Conservation. 
Ante, p. 1504. 
RELEASE OF NORMAL INCOME SECURITY 
SEC. 1315. Section 335 of the Consolidated Farm and Rural Devel-
Ante, p. 1526. 
opment Act (7 U.S.C. 1985) (as amended by section 1314(3)) is further 
amended by adding at the end thereof the following new subsection: 
"(fKD As used in this subsection, the term 'normal income secu-
rity' has the same meaning given such term in section 1962.17(b) of 
title 7, Code of Federal Regulations (as of January 1,1985). 
Loans. 
"(2) Until such time as the Secretary accelerates a loan made or 
insured under this title, the Secretary shall release from the normal 
income security provided for such loan an amount sufficient to pay 
the essential household and farm operating expenses of the bor-
rower, as determined by the Secretary.". 
LOAN SUMMARY STATEMENTS 
SEC. 1316. Section 337 of the Consolidated Farm and Rural Devel-
opment Act (7 U.S.C. 1987) is amended by— 
(1) inserting "(a)" after the section designation; and 
(2) adding at the end thereof the following new subsection: 
"(bXl) As used in this subsection, the term 'summary period' 
means— 
"(A) the period beginning on the date of enactment of the 
Food Security Act of 1985 and ending on the date on which the 
first loan summary statement is issued after such date of enact-
ment; or 
"(B) the period beginning on the date of issuance of the 
preceding loan summary statement and ending on the date of 
issuance of the current loan summary statement. 
"(2) On the request of a borrower of a loan made or insured (but 
not guaranteed) under this title, the Secretary shall issue to such 
borrower a loan summary statement that reflects the account activ-
ity during the summary period for each loan made or insured under 
this title to such borrower, including— 
II - m 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1529 
"(A) the outstanding amount of principal due on each such 
loan at the beginning of the summary period; 
"(B) the interest rate charged on each such loan; 
"(C) the amount of pajnnents made on and their application to 
each such loan during the summary period and an explanation 
of the basis for the application of such payments; 
"(D) the amount of principal and interest due on each such 
loan at the end of the summary period; 
"(E) the total amount of unpaid principal and interest on all 
such loans at the end of the summary period; 
"(F) any delinquency in the repayment of any such loan; 
"(G) a schedule of the amount and date of payments due on 
each such loan; and 
"(H) the procedure the borrower may use to obtain more 
information concerning the status of such loans.". 
AUTHORIZATION OF LOAN AMOUNTS 
SEC. 1317. (a) Subsection (b) of section 346 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1994(b)) is amended to 
read as follows: 
"(bXlXA) For each of the fiscal years ending September 30, 1986, 
through September 30,1988, real estate and operating loans may be 
insured, made to be sold and insured, or guaranteed in accordance 
with subtitles A and B, respectively, from the Agricultural Credit 
Insur£uice Fund established under section 309 in an amount equal to 
7 use 1929. 
$4,000,000,000, of which not less than $520,000,000 shall be for farm 
ownership loans under subtitle A. 
"(B) Subject to subparagraph (C), such amount shall be appor-
tioned as follows: 
"(i) For the fiscal year ending September 30,1986— 
"(I) $2,000,000,000 for insured loans, of which not less 
than $260,000,000 shall be for farm ownership loans; and 
"(II) $2,000,000,000 for guaranteed loans, of which not less 
than $260,000,000 shall be for guarantees of farm ownership 
loans. 
"(ii) For the fiscal year ending September 30,1987— , 
"(I) $1,500,000,000 for insured loans, of which not less 
than $195,000,000 shall be for farm ownership loans; and 
"(II) $2,500,000,000 for guaranteed loans, of which not less 
than $325,00(),000 shall be for guarantees of farm ownership 
loans. 
"(iii) For the fiscal year ending September 30,1988— 
"(I) $1,000,000,000 for insured loans, of which not less 
than $130,000,000 shall be for farm ownership loans; and 
"(II) $3,000,000,000 for guaranteed loans, of which not less 
than $39(),00(),00() shall be for guarantees of farm ownership 
loans. 
"(C) For each of the fiscal years referred to in subparagraph (A), 
the Secretary may transfer not more than 25 percent of the amounts 
authorized for guaranteed loans to amounts authorized for insured 
loans. 
"(DXi) For each of the fiscal years 1986,1987, and 1988, emergency 
loans may be made or insured or guaranteed in accordance with 
subtitle C from the Agricultural Credit Insurance Fund as follows: 
$1,300,000,000 for fiscal year 1986, $700,000,000 for fiscal year 1987, 
and $600,000,000 for fiscal year 1988. 
99 STAT. 1530 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(E) Loans for each of the fiscal years 1986, 1987, and 1988 are 
authorized to be insured, or made to be sold and insured, or guaran-
teed under the Rural Development Insurance Fund as follows: 
"(i) Insured 
water 
and waste disposal facility 
loans, 
$340,000,000. 
"(ii) Industrial development loans, $250,000,000. 
"(iii) Insured community facility loans, $115,000,000.". 
7 use 1994. 
0)) Section 346(eXl) of such Act is amended b y -
C
D striking out "20" each place it appears and inserting in 
lieu thereof "25"; and 
(2) striking out "fiscal year 1984" and inserting in lieu thereof 
"each fiscal year". 
(c) Section 346 of such Act (as amended by subsection (b)) is 
amended— 
(1) striking out subsection (d); and 
(2) redesignating subsection (e) as subsection (d). 
FARM DEBT RESTRUCTURE AND CONSERVATION SET-ASIDE 
CONSERVATION EASEMENTS 
SEC. 1318. (a) The Consolidated Farm and Rural Development Act 
(7 U.S.C. 1921 et seq.) is amended by adding at the end thereof the 
following new section: 
7 use 1997. 
"SEC. 349. (a) For purposes of this section: 
"(1) The term 'governmental entity' means any sigency of the 
United States, a State, or a unit of local government of a State. 
"(2) The terms 'highly erodible land' and 'wetland' have the 
meanings, respectively, that such terms are given in section 
Ante, p. 1504. 
1201 of the Food Security Act of 1985. 
"(3) The term 'wildlife' means fish or wildlife as defined in 
section 2(a) of the Lacey Act Amendments of 1981 (16 U.S.C. 
3371(a)). 
"(5) The term 'recreational purposes' includes hunting. 
Real property. 
"(b) Subject to subsection (c), the Secretary may acquire and 
retain an easement in real property, for a term of not less than 50 
years, for conservation, recreational, and wildlife purposes. 
Real property. 
"(c) Such easement may be acquired or retained for resd property 
if such property— 
"(1) is wetland, upland, or highly erodible land; 
"(2) is determined by the Secretary to be suitable for the 
purposes involved; 
Loans. 
"(3XAXi) secures any loan made under any law administered 
by the Farmers Home Administration and held by the Sec-
retary; and 
"(ii) the borrower of such loan is unable, as determined by the 
Secretary, to repay such loan in a timely manner; or 
"(B) is administered under this title by the Secretary; and 
"(4) was (except in the case of wetland) row cropped each year 
of the 3-year period ending on the date of the enactment of the 
Food Security Act of 1985. 
"(d) The terms and conditions specified in each such easement 
shall— 
Real property. 
"(1) specify the purposes for which such real property may be 
used; 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1531 
"(2) identify the conservation measures to be taken, and the 
recreational and wildlife uses to be allowed, with respect to such 
real property; and 
"(3) require such owner to permit the Secretary, and any 
person or governmental entity designated by the Secretary, to 
have access to such real property for the purpose of monitoring 
compliance with such easement. 
"(e) Any such easement acquired by the Secretary shall be pur-
chased from the borrower involved by canceling that part of the 
aggregate amount of such outstanding loans of the borrower held by 
the Secretary under laws administered by the Farmers Home 
Administration that bears the same ratio to the aggregate amount 
of the outstanding loans of such borrower held by the Secretary 
under all such laws as the number of acres of the real property of 
such borrower that are subject to such easement bears to the 
aggregate number of acres securing such loans. In no case shall the 
amount so cancelled exceed the value of the land on which the 
easement is acquired. 
"(f) If the Secretary elects to use the authority provided by this 
section, the Secretary shall consult with the Director of the Fish and 
Wildlife Service for purposes o
f
— 
"(1) selecting real property in which the Secretary may 
acquire easements under this section; 
"(2) formulating the terms and conditions of such easements; 
and 
"(3) enforcing such eeisements. 
"(g) The Secretary, and any person or governmental entity des-
ignated by the Secretary, may enforce an easement acquired by the 
Secretary under this section. 
"(h) This section shall not apply with respect to the cancellation of 
any part of any loan that was made after the date of enactment of 
the Food Security Act of 1985.". 
(bXD The last sentence of section 335(c) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1985(c)) is amended by insert-
ing ", other than easements acquired under section 349" before the 
period at the end thereof. 
(2) The second sentence of section 1001 of the Agricultural Act of 
1970 (16 U.S.C. 1501) is amended— 
(1) by striking out "perpetual"; and 
(2) by inserting "for a term of not less than 50 years" after 
"easements". 
Loans. 
Real property. 
Prohibition. 
Real property. 
Prohibition. 
Ante, pp. 1526, 
1528. 
Ante, p. 1530. 
ADMINISTRATION OF GUARANTEED FARM LOAN PROGRAMS 
SEC. 1319. The Consolidated Farm and Rural Development Act (7 
U.S.C. 1921 et seq.) is amended by adding after the section added by 
section 1318 the following: 
"SEC. 350. Notwithstanding any other provision of this title, the 
Secretary shall ensure that farm loan guarantee programs carried 
out under this title are designed so as to be responsive to borrower 
and lender needs and to include provisions under reasonable terms 
and conditions for advances, before completion of the liquidation 
process, of guarantee proceeds on loans in default.". 
Ante, p. 1530. 
7 u s e 1998. 
99 STAT. 1532 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1531. 
Loans. 
7 u s e 1999. 
Contracts. 
Loans. 
C!ontracts. 
Loans. 
Contracts. 
Prohibition. 
Loans. 
7 u s e 1929. 
Prohibition. 
INTEREST RATE REDUCTION PROGRAM 
SEC. 1320. Effective only for the period beginning on the date of 
enactment of this Act and ending September 30, 1988, the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) is 
amended by adding after the section added by section 1319 the 
following: 
"SEC. 351. (a) The Secretary shall establish and carry out in 
accordance with this section an interest rate reduction program for 
loans guaranteed under this title. 
"(b) Under such program, the Secretary shall enter into a contract 
with, and make pajnnents to, a l^ally oi^anized institution to 
reduce during the term of such contract the interest rate paid by a 
borrower on a guaranteed loan made by such institution if— 
"(1) the borrower— 
"(A) is unable to obtain sufficient credit elsewhere to 
finance the actual needs of the borrower at reasonable rates 
and terms, taking into consideration private and coopera-
tive rates and terms for a loan for a similar purpose and 
period of time in the community in or near which the 
borrower resides; 
"(B) is otherwise unable to make payments on such loan 
in a timely manner; and 
"(C) has a total estimated cash income during the 12-
month period beginning on the date such contract is en-
tered into (including all farm and nonfarm income) that 
will equal or exceed the total estimated cash expenses to be 
incurred by the borrower during such period (including all 
farm and nonfarm expenses); and 
"(2) the lender reduces during the term of such contract the 
annual rate of interest payable on such loan by a minimum 
percentage specified in such contract. 
"(c) In return for a contract entered into by a lender under 
subsection (b) for the reduction of the interest rate paid on a loan, 
the Secretary shall make pa3nnents to the lender in an amount 
equal to not more than 50 percent of the cost of reducing the annual 
rate of interest payable on such loan, except that such pajnnents 
may not exceed the cost of reducing such rate by more than 2 
percent. 
"(d) The term of a contract entered into under this section to 
reduce the interest rate on a guaranteed loan may not exceed the 
outstanding term of such loan, or 3 years, whichever is less. 
"(eXD Notwithstanding any other provision of this title, the Agri-
cultural Credit Insurance Fund established under section 309 may 
be used by the Secretary to carry out this section. 
"(2) The total amount of funds lused by the Secretary to carry out 
this section may not exceed $490,000,000.". 
HOMESTEAD PROTECTION 
SEC. 1321. The Consolidated Farm and Rural Development Act is 
Supra. 
amended by adding after the section added by section 1320 the 
following: 
7 use 2000. 
"SEC. 352. (a) As used in this section: 
"(1) The term 'Administrator' means the Administrator of the 
Small Business Administration. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1533 
"(2) The term 'farm program loan' means any loan made by Loans, 
the Administrator under the Small Business Act (15 U.S.C. 631 
et seq.) for any of the purposes authorized for loans under 
subtitles A or B of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1921 et seq.). 
"(3) The term 'homestead property' means the principal resi-
dence and adjoining property possessed and occupied by a bor-
rower specified in paragraph (2) of this subsection. 
"(4) The term 'Secretary' means the Secretary of Agriculture. 
"(bXD If the Secretary forecloses a loan made or insured under the Loans. 
Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.), the Administrator forecloses a farm program loan made under 
the Small Business Act (15 U.S.C. 631 et seq.), or a borrower of a 
loan made or insured by either agency declares bankruptcy or goes 
into voluntary liquidation to avoid foreclosure or bankruptcy, the 
Secretary or Administrator may upon application by the borrower, 
permit the borrower to retain possession and occupancy of any 
principal residence of the borrower, and a reasonable amount of 
adioining land for the purpose of family maintenance. 
(2) The value of the homestead property shall be determined 
insofar as possible by an independent appraisal made within six 
months from the date of the borrower's application to retain posses-
sion and occupancy of the homestead property. 
"(3) The period of occupancy of homestead property under this Prohibition, 
subsection may not exceed five years, but in no case shall be the 
Secretary or the Administrator grant a period of occupancy less 
than three years, subject to compliance with the requirements of 
subsection (c). 
"(c) To be eligible to occupy homestead property, a borrower of a Loans, 
loan made or insured by the Secretary or the Administrator must— 
"(1) apply for such occupancy during the three-year period 
beginning on the date of the enactment of this Act; 
'(2) have exhausted all other remedies for the extension or 
restructuring of such loan, including all remedies afforded 
under section 331(d); 
Ante, p. 1523. 
"(3) have made gross annual farm sales of at least $40,000 in 
at least two calendar years during the five-year period begin-
ning on January 1, 1981, and ending on December 31, 1985 (or 
the equivalent crop or fiscal years); 
"(4) have received from mrming operations at least 60 per 
centum of the gross annual income of the borrower and any 
spouse of the borrower during at least two years of such five-
year period; 
"(5) have occupied the homestead property, and engaged in 
farming or ranching operations on adjoining land, or other land 
controlled by said borrower, during such five-year period; 
"(6) during the period of occupancy of the homestead propn 
erty, pay a reasonable sum as rent for such property to the 
Secretary or the Administrator in an amount substantially 
equivalent to rents charged for similar residential properties in 
the area in which the homestead property is located, and failure 
to make rental payments in a timely fashion shall constitute 
cause for the termination of all rights of a borrower to posses-
sion and occupancy of the homestead property under this 
subsection; 
"(7) during the period of occupancy of homestead property, 
maintain such property in good condition; and 
99 STAT. 1534 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(8) agree to such other terms and conditions as are pre-
scribed by the Secretary or the Administrator in order to facili-
tate the administration of this subsection. 
"(d) At the end of the period of occupancy described in subsection 
(c), the Secretary or the Administrator shall grant to the borrower a 
first right of refusal to reacquire the homestead property on such 
terms and conditions (which may include pa3anent of principal in 
installments) as the Secretary or the Administrator shall determine. 
"(e) At the time any reacquisition agreement is entered into, the 
Secretary or the Administrator may not demand a total payment of 
principal that is in excess of the value of the homestead property as 
established under subsection (bX2).". 
Loans. 
Banks and 
banking. 
EXTENSION OF CREDIT TO ALL RURAL UTILITIES THAT PARTICIPATE IN 
THE PROGRAM 
ADMINISTERED 
BY THE RURAL 
ELECTRIFICATION 
ADMINISTRATION 
SEC. 1322. Section 3.8 of the Farm Credit Act of 1971 (12 U.S.C. 
2129) is amended by— 
(1) inserting "(1)" immediately before "Any association"; and 
(2) adding at the end thereof a new subsection (2) as follows: 
"(2) Notwithstanding any other provision of this title, cooperatives 
and other entities that have received a loan, loan commitment, or 
loan guarantee from the Rural Electrification Administration, or a 
loan or loan commitment from the Rural Telephone Bank, or that 
have been certified by the Administrator of the Rural Electrification 
Administration to be eligible for such a loan, loan commitment, or 
loan guarantee, and subsidiaries of such cooperatives or other enti-
ties, shall also be eligible to borrow from a bank for cooperatives.". 
NONPROFIT NATIONAL RURAL DEVELOPMENT AND FINANCE 
CORPORATIONS 
Loans. 
SEC. 1323. (aXD For the fiscal year ending September 30, 1986, the 
7 use 1932 note. Secretary of Agriculture (hereafter in this section referred to as the 
"Secretary") shall guarantee loans made by public agencies or 
private organizations (including loans made by financial institutions 
such as insurance companies) to nonprofit national rural develop-
ment and finance corporations that establish similar and affiliated 
statewide rural development and finance programs for the purpose 
of providing loans, guarantees, and other financial assistance to 
profit or nonprofit local businesses to improve business, industry, 
and emplojmient opportunities in a rural area (as determined by the 
Secretary). 
(2) To be eligible to obtain a loan guarantee under this subsection, 
a corporation must— 
(A) demonstrate to the Secretary the ability of the corporation 
to administer a national revolving rural development loan 
program; 
(B) be prepared to commit financial resources under the 
control of the corporation to the establishment of affiliated 
statewide rural development and finance programs; and 
(C) have secured commitments of significant financial support 
from public agencies and private organizations for such affili-
ated statewide programs. 
(3) A national rural development and finance corporation receiv-
ing a loan guarantee under this subsection shall base a determina-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1535 
tion to establish an affiliated statewide program in large part on the 
willingness of States and private organizations to sponsor and make 
funds available to such program. 
(4) Notwithstanding any other provision of law, for the fiscal year 
ending September 30, 1986, of the amounts available to guarantee 
loans in accordance with section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) from the Rural Development 
Insurance Fund, $20,000,000 shall be used by the Secretary to 
guarantee loans under the national rural development and finance 
program established under this subsection, to remain available until 
expended. 
(bXD For the fiscal year ending September 30, 1986, the Secretary Grants, 
shall make grants, from funds transferred under paragraph (2), to 
national rural development and finance corporations for the pur-
pose of establishing a rural development program to provide finan-
cial and technical assistance to compliment the loan guarantees 
made to such corporations under subsection (a). 
(2) All funds authorized under the Rural Development Loan Fund, 
including those on deposit and available upon date of enactment, 
under sections 623 and 633 of the Community EJconomic Develop-
ment Act of 1981 (42 U.S.C. 9801 et seq.) shall be transferred to the 
Secretary provided that— 
(A) all funds on deposit and available on date of enactment Grants 
shall be used for the purpose of making grants under paragraph 
(1) and shall remain available until expended; and 
(B) notwithstanding any other provision of law, all loans to 
intermediary borrowers made prior to date of enactment, shall 
upon date of enactment, for the life of such loan, bear a rate of 
interest not to exceed that in effect upon the date of issuance of 
such loans. 
42 use 9812, 
9822. 
PROTECTION FOR PURCHASERS OF FARM PRODUCTS 
SEC. 1324. (a) Congress finds that— 
(1) certain State laws permit a secured lender to enforce liens 
against a purchaser of farm products even if the purchaser does 
not know that the sale of the products violates the lender's 
security interest in the products, lacks any practical method for 
discovering the existence of the security interest, and has no 
reasonable means to ensure that the seller uses the sales pro-
ceeds to repay the lender; 
(2) these laws subject the purchaser of farm products to 
double payment for the products, once at the time of purchase, 
and again when the seller fails to repay the lender; 
(3) the exposure of purchasers of farm products to double 
payment inhibits free competition in the market for farm prod-
ucts; and 
(4) this exposure constitutes a burden on and an obstruction 
to interstate commerce in farm products. 
(b) The purpose of this section is to remove such burden on and 
obstruction to interstate commerce in farm products. 
(c) For the purposes of this section— 
(1) The term "buyer in the ordinary course of business" 
means a person who, in the ordinary course of business, buys 
farm products from a person engaged in farming operations who 
is in the business of selling farm products. 
7 use 1631. 
eommerce and 
trade. 
99 STAT. 1536 
PUBLIC LAW 99-198—DEC. 23, 1985 
(2) The term "central filing system" means a system for filing 
effective financing statements or notice of such financing state-
ments on a statewide basis and which has been certified by the 
Secretary of the United States Department of Agriculture; the 
Secretary shall certify such system if the system complies with 
the requirements of this section; specifically under such 
system— 
(A) effective financing statements or notice of such 
financing statements are filed with the office of the Sec-
retary of State of a State; 
(B) the Secretary of State records the date and hour of the 
filing of such statements; 
(C) the Secretary of State compiles all such statements 
into a master list— 
(i) organized according to farm products; 
(ii) arranged within each such product— 
(I) in alphabetical order according to the last 
name of the individual debtors, or, in the case of 
debtors doing business other than as individuals, 
the first word in the name of such debtors; and 
(II) in numerical order according to the social 
security number of the individual debtors or, in the 
case of debtors doing business other than as 
individuals, the Internal Revenue Service taxpayer 
identification number of such debtors; and 
(III) geographically by county or parish; and 
(IV) by crop year; 
(iii) containing the information referred to in para-
graph (4XD); 
(D) the Secretary of State maintains a list of all buyers of 
farm products, commission merchants, and selling agents 
who register with the Secretary of State, on a form 
indicating— 
(i) the name and address of each buyer, commission 
merchant and selling agent; 
(ii) the interest of each buyer, commission merchant, 
and selling agent in receiving the lists described in 
subparagraph (E); and 
(iii) the farm products in which each buyer, commis-
sion merchant, and selling agent has an interest; 
(E) the Secretary of State distributes regularly as pre-
scribed by the State to each buyer, commission merchant, 
and selling agent on the list described in subparagraph (D) 
a copy in written or printed form of those portions of the 
master list described in paragraph (C) that cover the farm 
products in which such buyer, commission merchant, or 
selling agent has registered an interest; 
(F) the Secretary of State furnishes to those who are not 
registered pursuant to (2XD) of this section oral confirma-
tion within 24 hours of any effective financing statement on 
request followed by written confirmation to any buyer of 
farm products buying from a debtor, or commission mer-
chant or selling agent selling for a seller covered by such 
statement. 
(3) The term "commission merchant" means any person en-
gaged in the business of receiving any farm product for sale, on 
commission, or for or on behalf of another person. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1537 
(4) The term "effective financing statement" means a state-
ment that— 
(A) is an original or reproduced copy thereof; 
(B) is signed and filed with the Secretary of State of a 
State by the secured party; 
(C) is signed by the debtor; 
(D) contains, 
(i) the name and address of the secured party; 
(ii) the name and address of the person indebted to 
the secured party; 
(iii) the social security number of the debtor or, in the 
case of a debtor doing business other than as an 
individual, the Internal Revenue Service taxpayer 
identification number of such debtor; 
(iv) a description of the farm products subject to the 
security interest created by the debtor, including the 
amount of such products where applicable; and a 
reasonable description of the property, 
including 
county or parish in which the property is located; 
(E) must be amended in writing, within 3 months, simi-
larly signed and filed, to reflect material changes; 
(F) remains effective for a period of 5 years from the date 
of filing, subject to extensions for additional periods of 5 
years each by refiling or filing a continuation statement 
within 6 months before the expiration of the initial 5 year 
period; 
(G) lapses on either the expiration of the effective period 
of the statement or the filing of a notice signed by the 
secured party that the statement has lapsed, whichever 
occurs first; 
(H) is accompanied by the requisite filing fee set by the 
Secretary of State; and 
(I) substantially complies with the requirements of this 
subparagraph even though it contains minor errors that are 
not seriously misleading. 
(5) The term farm product" means an agricultural commod-
ity such as wheat, corn, soybeans, or a species of livestock such 
as cattle, hogs, sheep, horses, or poultry used or produced in 
farming operations, or a product of such crop or livestock in its 
unmanufactured state (such as ginned cotton, wool-clip, maple 
syrup, milk, and eggs), that is in the possession of a person 
engaged in farming operations. 
(6) The term "knows" or "knowledge" means actual knowl-
edge. 
(7) The term "security interest" means an interest in farm 
products that secures pajmtient or performance of an obligation. 
(8) The term "selling agent" means any person, other than a 
commission merchant, who is engaged in the business of nego-
tiating the sale and purchase of any farm product on behalf of a 
person engaged in farming operations. 
(9) The term "State" means each of the 50 States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Virgin Islands of the United States, American Samoa, the 
Commonwealth of the Northern Mariana Islands, or the Trust 
Territory of the Pacific Islands. 
(10) The term "person" means any individual, partnership, 
corporation, trust, or any other business entity. 
99 STAT. 1538 
PUBLIC LAW 99-198—DEC. 23, 1985 
(11) The term "Secretary of State" means the Secretary of 
State or the designee of the State. 
(d) Except as provided in subsection (e) and notwithstanding any 
other provision of Federal, State, or local law, a buyer who in the 
ordinary course of business buys a farm product from a seller 
engaged in farming operations shall take free of a security interest 
created by the seller, even though the security interest is perfected; 
and the buyer knows of the existence of such interest. 
(e) A buyer of farm products takes subject to a security interest 
created by the seller if— 
(IXA) within 1 year before the sale of the farm products, the 
buyer has received from the secured party or the seller written 
notice of the security interest organized according to farm 
products that— 
(i) is an original or reproduced copy thereof; 
(ii) contains, 
(I) the name and address of the secured party; 
(II) the name and address of the person indebted to 
the secured party; 
(III) the social security number of the debtor or, in 
the case of a debtor doing business other than as an 
individual, the Internal Revenue Service taxpayer 
identification number of such debtor; 
(IV) a description of the farm products subject to the 
security interest created by the debtor, including the 
amount of such products where applicable, crop year, 
county or parish, and a reasonable description of the 
property; and 
(iii) must be amended in writing, within 3 months, simi-
larly signed and transmitted, to reflect material changes; 
(iv) will lapse on either the expiration period of the 
statement or the transmission of a notice signed by the 
secured party that the statement has lapsed, whichever 
occurs first; and 
(v) any payment obligations imposed on the buyer by the 
secured party as conditions for waiver or release of the 
security interest; and 
(B) the buyer has failed to perform the payment obligations, 
or 
(2) in the case of a farm product produced in a State that has 
established a central filing system— 
(A) the buyer has failed to register with the Secretary of 
State of such State prior to the purchase of farm products; 
and 
(B) the secured party has filed an effective 
financing 
statement or notice that covers the farm products being 
sold; or 
(3) in the case of a farm product produced in a State that has 
established a central filing system, the buyer— 
(A) receives from the Secretary of State of such State 
written notice £is provided in subparagraph (cX2XE) or 
(cX2XF) that specifies both the seller and the farm product 
being sold by such seller as being subject to an effective 
financing statement or notice; and 
(B) does not secure a waiver or release of the security 
interest specified in such effective financing statement or 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1539 
notice from the secured party by performing any pajmaent 
obligation or otherwise; and 
(f) What constitutes receipt, as used in this section, shall be 
determined by the law of the State in which the buyer resides. 
(gXD Except as provided in paragraph (2) and notwithstanding Prohibition, 
any other provision of Federal, State, or local law, a commission 
merchant or selling agent who sells, in the ordinary course of 
business, a farm product for others, shall not be subject to a security 
interest created by the seller in such farm product even though the 
security interest is perfected and even though the commission mer-
chant or selling agent knows of the existence of such interest. 
(2) A commission merchant or selling agent who sells a farm 
product for others shall be subject to a security interest created by 
the seller in such farm product if— 
(A) within 1 year before the sale of such farm product the 
commission merchant or selling agent has received from the 
secured party or the seller written notice of the security in-
terest; organized according to farm products, that— 
(i) is an original or reproduced copy thereof; 
(ii) contains, 
(I) the name and address of the secured party; 
(II) the name and address of the person indebted to 
the secured party; 
(III) the social security number of the debtor or, in 
the case of a debtor doing business other than as an 
individual, the Internal Revenue Service taxpayer 
identification number of such debtor; 
(IV) a description of the farm products subject to the 
security interest created by the debtor, including the 
amount of such products, where applicable, crop year, 
county or parish, and a reasonable description of the 
property, etc.; and 
(iii) must be amended in writing, within 3 months, simi-
larly signed and transmitted, to reflect material changes; 
(iv) will lapse on either the expiration period of the 
statement or the transmission of a notice signed by the 
secured party that the statement has lapsed, whichever 
occurs first; and 
(v) any payment obligations imposed on the commission 
merchant or selling agent by the secured party as condi-
tions for waiver or release of the security interest; and 
(B) the commission merchant or selling agent has failed to 
perform the payment obligations; 
(C) in the case of a farm product produced in a State that has 
established a central filing system— 
(i) the commission merchant or selling agent has failed to 
register with the Secretary of State of such State prior to 
the purchase of farm products; and 
(ii) the secured party has filed an effective 
financing 
statement or notice that covers the farm products being 
sold; or 
(D) in the case of a farm product produced in a State that has 
established a central filing system, the commission merchant or 
selling agent— 
(i) receives from the Secretary of State of such State 
written notice as provided in subsection (cX2XE) or (cX2XF) 
that specifies both the seller and the farm products being 
99 STAT. 1540 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
Effective date. 
sold by such seller as being subject to an effective financing 
statement or notice; and 
(ii) does not secure a waiver or release of the security 
interest specified in such effective financing statement or 
notice from the secured party by performing any pajonent 
obligation or otherwise. 
(3) What constitutes receipt, as used in this section, shall be 
determined by the law of the State in which the buyer resides. 
(hXD A security agreement in which a person engaged in farming 
operations creates a security interest in a farm product may require 
the person to furnish to the secured party a list of the buyers, 
commission merchants, and selling agents to or through whom the 
person engaged in farming operations may sell such farm product. 
(2) If a security agreement contains a provision described in 
paragraph (1) and such person engaged in farming operations sells 
the farm product collateral to a buyer or through a commission 
merchant or selling agent not included on such list, the person 
engaged in farming operations shall be subject to paragraph (3) 
unless the person— 
(A) has notified the secured party in writing of the identity of 
the buyer, commission merchant, or selling agent at least 7 days 
prior to such sale; or 
(B) has accounted to the secured party for the proceeds of 
such sale not later than 10 days after such sale. 
(3) A person violating paragraph (2) shall be fined $5,000 or 15 per 
centum of the value or benefit received for such farm product 
described in the security agreement, whichever is greater. 
(i) The Secretary of Agriculture shall prescribe regulations not 
later than 90 days after the date of enactment of this Act to aid 
States in the implementation and management of a central filing 
system. 
(j) This section shall become effective 12 months after the date of 
enactment of this Act. 
Regulations. 
Loans. 
7 u s e 1989 note. 
12 u s e 2254 
note. 
Loans. 
Banks and 
banking. 
PROHIBITING COORDINATED FINANCIAL STATEMENT 
SEC. 1325. The Secretary of Agriculture shall not use or require 
the submission of the coordinated financial statement referred to in 
the proposed regulations of the Farmers Home Administration pub-
lished in the Federal Register of November 8, 1983 (48 F.R. 51312-
51317) in connection with an application submitted on or after the 
date of the enactment of this Act for any loan under any program of 
the Department of Agriculture carried out by the Farmers Home 
Administration. 
REGULATORY RESTRAINT 
SEC. 1326. (a) Congress finds and declares that— 
(1) high production costs and low commodity prices have 
combing to reduce farm income to the lowest levels since the 
depths of the Depression in the 1930's, to subject many agricul-
tural producers, through no fault of their own, to severe eco-
nomic hardship, and in many cases temporarily but seriously to 
impair producers' ability to meet loan repayment schedules in a 
timely fashion; and 
(2) a policy of adverse classification of agricultural loans by 
bank examiners under these circumstances will trigger a wave 
of foreclosures and similar actions on the part of banks, thereby 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1541 
Banks and 
banking. 
Loans. 
depressing land values and prices for agricultural facilities and 
equipment and having a devastating effect on farmers and the 
banking industry, and upon rural areas of the United States in 
general, 
(b) It is therefore the sense of Congress that the Federal bank 
regulatory agencies should ensure, in their examination procedures, 
that examiners exercise caution and restraint and give due consider-
ation not only to the current cash flow of agricultural borrowers 
under flnancial stress, but to factors such as their loan collateral 
and ultimate ability to repay as well, for so long as the adverse 
economic effects of the cost-price squeeze of recent years continue to 
impair the ability of these borrowers to meet scheduled repayments 
on their loans. 
STUDY OF FARM CREDIT SYSTEM 
SEC. 1327. (a) The Farm Credit Administration shall conduct a 
study of the need for the establishment of a fund to be used— 
(1) to insure institutions of the Farm Credit System against Loans, 
losses on loans made by such institutions; or 
(2) for any other purp(»e that would— 
(A) assist in stabilizing the financial condition of such 
System; and 
(B) provide for the protection of the capital that borrow- Loans, 
ers of such loans have invested in such System. 
(b) In conducting the study required under subsection (a), the 
Farm Credit Administration shall— 
(1) consider the advisability of using the revolving funds 
provided for under section 4.1 of the Farm Credit Act of 1971 (12 
U.S.C. 2152) to provide initial capital for the fund referred to in 
subsection (a); and 
(2) estimate the amount and level of future assessments levied 
on institutions of the Farm Credit System that would be nec-
essary to ensure the long-term liquidity of such fund. 
(c) Not later than 180 days after the date of enactment of this Act, Report, 
the Farm Credit Administration shall submit a report containing 
the results of the study required under subsection (a) to the Commit-
tee on Agriculture of the House of Representatives and the Commit-
tee on Agriculture, Nutrition, and Forestry of the Senate. 
CONTINUATION OF SMALL FARMER TRAINING AND TECHNICAL 
ASSISTANCE PROGRAM 
SEC. 1328. The Secretary of Agriculture shall, during the period 7 use 1981 note. 
beginning on the date of enactment of this Act and ending on 
September 30, 1988, maintain at substantially current levels the 
small farmer training and technical assistance program in the office 
of the Administrator of the Farmers Home Administration. 
STUDY OF FARM AND HOME PLAN 
SEC. 1329. (a) The Secretary of Agriculture shall conduct a study of 
the appropriateness of the Farm and Home Plan (Form FmHA 
431-2) used by the Farmers Home Administration in connection 
with loans made or insured under the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1921 et seq.). 
(b) After canying out such study, if the Secretary finds the plan is 
inappropriate, the Secretary shall— 
Loans. 
99 STAT. 1542 
PUBLIC LAW 99-198—DEC. 23, 1985 
(1) evaluate other alternative farm plan forms for use in 
connection with such loans; 
(2) evaluate the need to develop a new farm plan form for 
such use; and 
(3) specify the steps that should be taken to improve or 
replace the current form. 
Report. 
(c) Not later than 120 days after the date of enactment of this Act, 
the Secretary shall report the results of the study required under 
subsection (a) to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate. 
National 
TITLE XIV—AGRICULTURAL RESEARCH, EXTENSION, AND 
^ ^ r i r ' 
TEACHING 
Extension, and 
Teaching Policy 
Subtitle A—General Provisions 
Act 
Amendments of 
«..^„„ „,„, 
„ 
1935 
SHORT TITLE 
7 use 3101 note. 
SEC. 1401. This title may be cited as the "National Agricultural 
Research, Extension, and Teaching Policy Act Amendments of 
1985". 
FINDINGS 
SEC. 1402. Section 1402 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is 
amended by— 
(1) in paragraph (8)— 
(A) striking out "and" at the end of subparagraph (N); 
(B) inserting "and" at the end of subparagraph (O); and 
(C) adding at the end thereof the following new 
subparagraph: 
"(P) research on new or improved food processing (such as 
food irradiation) or value-added food technologies;'; 
(2) in paragraph (10)— 
(A) striking out "The research" and all that follows 
through the colon in the matter preceding the subpara-
graphs and inserting in lieu thereof the following: 'The 
research, extension, and teaching programs must be main-
tained and constantly adjusted to meet ever-changing chal-
lenges. National support of cooperative research, extension, 
and teaching efforts must be reaffirmed and strengthened 
to meet major needs and challenges in the following 
areas:"; 
(B) redesignating subparagraphs (B), (C), (D), (E), (F), 
and (G) as subparagraphs (C), (D), (F), (G), (H), and (I), 
respectively; 
(C) inserting after subparagraph (A) the following new 
subparEigraph: 
"(B) AGRICULTURAL POUCY.—The effects of technological, 
economic, sociological, and environmental developments on 
the agricultural structure of the United States are strong 
and continuous. It is critical that emerging agricultural-
related technologies, economic changes, and sociological 
and environmental developments, both national and inter-
national, be analyzed on a continuing basis in an inter-
disciplinary fashion to determine the effect of those forces 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1543 
Forests and 
forest products. 
Conservation. 
on the structure of agriculture and to improve agricultural 
policy decisionmaking."; 
(D) inserting after subparagraph (D) (as redesignated by 
subparagraph (B)) the following new subparagraph: 
"(E) COORDINATION OF BIOTECHNOLOGY RESPONSIBILITIES OF Regulations. 
FEDERAL 
GTOVERNMENT.—Biotechnology 
guidelines 
and 
regulations must be made consistent throughout the 
F^eral Government so they may promote scientific de-
velopment and protect the public. The biotechnology risk 
assessment processes used by various Federal agencies 
must be standardized."; 
(E) striking out subparagraph (F) (as redesignated by 
subparagraph (B)) and inserting in lieu thereof the follow-
ing new subparagraph: 
(F) NATURAL RESOURCES.—Improved management of soil, 
water, forest, and range resources is vital to maintain the 
resource base for food, fiber, and wood production. An 
expanded research program in the areas of soil and water 
conservation and forest and range production practices is 
needed to develop more economical and effective manage-
ment svstems. Key objectives of this research are— 
(i) incorporating water and soil-saving technologies 
into current and evolving production practices; 
"(ii) developing more cost-effective and practical con-
servation technologies; 
"(iii) managing water in stressed environments; 
"(iv) protecting the quality of the surface water and 
groundwater resources of the United States; 
"(v) establishing integrated multidisciplinary organic 
farming research projects, including research on alter-
native farming systems, that will identify options from 
which individual farmers may select the production 
components that are most appropriate for their individ-
ual situations; 
"(vi) developing better targeted pest management 
systems; and 
"(vii) improving forest and range management tech-
nologies that meet demands more efficiently, better 
protect multiresource options, and enhance quality of 
output."; 
(F) in subparagraph (G) (as redesignated by subparagraph 
(B))-
(i) striking out "to" before "the economy"; and 
(ii) striking out "owner-operated" before "family 
farms"; and 
(G) striking out subparagraph (I) (as redesignated by 
subparagraph (B)) and inserting in lieu thereof the follow-
ing new subparagraph: 
(I) 
INTERNATIONAL FOOD AND AGRICULTURE.—United 
States agricultural production has proven its ability to 
produce abundant quantities of food for an expanding world 
population. Despite rising expectation for improved diets in 
the world today, there are instances of drought, civil unrest, 
economic crisis, or other conditions that preclude the local 
production or distribution of food. There are instances 
where localized problems impede the ability of farmers to 
produce needed food products. It is also recognized that 
Schools and 
colleges. 
99 STAT. 1544 
PUBLIC LAW 99-198—DEC. 23, 1985 
many nations have progressive and effective agricultural 
research programs that produce results of interest and 
applicability to United States agriculture. The exchange of 
knowledge £md information between nations is essential to 
the well-being of all nations. A dedicated effort involving 
the Federal Government, the State cooperative institutions, 
and other colleges and universities is needed to expand 
international food and agricultural research, extension, and 
teaching programs. Improved cooperation and communica-
tion by the Department of Agriculture and the cooperators 
with international agricultural research centers, counter-
part agencies, and universities in other nations are 
necessary to improve food and agricultural 
progress 
throughout the world."; 
(3) striking out the period at the end of paragraph (11) and 
inserting in lieu thereof "; and"; and 
(4) adding at the end thereof the following new paragraph: 
"(12) the agricultural system of the United States— 
Science and 
"(A) is increasingly dependent on science and technology 
technology. 
to maintain and improve productivity levels, manage the 
resource base, provide high quality products, and protect 
the environment; and 
"(B) requires a constant source of food and agricultural 
scientific expertise to maintain this dynamic system.". 
DEFINITIONS 
SEC. 1403. Section 1404(8) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(8)) is 
amended by— 
(1) striking out "and" at the end of subparagraph (H); 
(2) inserting "and" at the end of subparagraph (I); and 
(3) adding at the end thereof the following new subparagraph: 
"(J) international food and agricultural issues, such as 
agricultural development, development of institutions, 
germ plasm collection and preservation, information ex-
change and storage, and scientific exchanges;". 
RESPONSIBIUTIES OF THE SECRETARY OF AGRICULTURE 
SEC. 1404. Section 1405 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3121) is 
amended by— 
(1) striking out "and" at the end of paragraph (10); and 
(2) striking out paragraph (11) and inserting in lieu thereof 
the following new paragraphs: 
Science and 
"dD coordinate the efforts of States, State cooperative 
technology. 
institutions. State extension services, the Joint Council, the 
Advisory Board, and other appropriate institutions in assessing 
the current status of, and developing a plan for, the effective 
transfer of new technologies, including biotechnology, to the 
farming community, with particular emphasis on addressing 
the unique problems of small- and medium-sized farms in gain-
ing information about those technologies; and 
(12) establish appropriate controls with respect to the devel-
opment and use of the application of biotechnology to 
jB^iculture.". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1545 
JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES 
SEC. 1405. (a) Section 1407(a) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3122(a)) is amended by striking out "1985" and inserting in lieu 
thereof "1990". 
(b) Section 1407(b) of such Act is amended by inserting before the 
last sentence the following new sentence: "To ensure that the views 
of food technologists are considered by the Joint Council, one of the 
members of the Joint Council shall, as determined to be appropriate 
by the Secretary, be appointed by the Secretary from among distin-
gxiished persons who are food technologists from accredited or cer-
tified departments of food technology, as determined by the 
Secretary.". 
(c) Section 1407(dX2) of such Act is amended by— 
(1) striking out "and" at the end of subparagraph (F); 
(2) striking out the period at the end of subparagraph (G) and 
inserting in lieu thereof "; and"; and 
(3) adding at the end thereof the following new subparagraph: 
"(H) coordinate with the Secretary in assessing the current 
status of, and developing a plan for, the effective transfer of new 
technologies to the farming community.". 
NATIONAL AGRICULTURAL RESEARCH AND EXTENSION USERS ADVISORY 
BOARD 
SEC. 1406. (a) Section 1408(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(a)) 
is amended by striking out "1985" and inserting in lieu thereof 
"1990". 
(b) Section 1408(f)(2) of such Act (7 U.S.C. 3123(fK2)) is amended 
b y -
(1) striking out "and" at the end of subparagraph (E); 
(2) striking out the period at the end of subparagraph (F) and 
inserting in lieu thereof "; and"; and 
(3) adding at the end thereof the following new subparagraph: 
"(G) coordinating with the Secretary in assessing the current 
status of, and developing a plan for, the effective transfer of new 
technologies to the farming community.". 
FEDERAL-STATE PARTNERSHIP 
SEC. 1407. (a) The first sentence of section 1409A(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3124a(a)) is amended by— 
(1) striking out "and" at the end of paragraph (2); 
(2) striking out the period at the end of paragraph (3) and 
inserting in lieu thereof "; and"; and 
(3) adding at the end thereof the following new paragraph: 
"(4) international agricultural programs under title XII of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2220a et seq.).". 
(b) Section 1409A of such Act is amended by adding at the end 
thereof the following new subsections: 
r J i 
"(dXD To promote research for purposes of developing agricul-
tural policy alternatives, the Secretary is encouraged— 
"(A) to designate at least one State cooperative institution to 
conduct research in an interdisciplinary fashion; and 
99 STAT. 1546 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(B) to report on a regular basis with respect to the effect of 
emerging technological, economic, sociological, and environ-
mental developments on the structure of agriculture. 
"(2) Support for this effort should include grants to examine the 
role of various food production, processing, and distribution systems 
that may primarily benefit small- and medium-sized family farms, 
such as diversified farm plans, energy, water, and soil con-
servation technologies, direct and cooperative marketing, produc-
tion and processing cooperatives, and rural community resource 
management. 
"(e) To address more effectively the critical need for reducing 
farm input costs, improving soil, water, and energy conservation on 
farms and in rural areas, using sustainable agricultural methods, 
adopting alternative processing and marketing systems, and 
encouraging rural resources management, the Secretary is encour-
aged to designate at least one State agricultural experiment station 
and one Agricultural Research Service facility to examine these 
issues in an integrated and comprehensive manner, while conduct-
ing ongoing pilot projects contributing additional research through 
the Federal-State partnership.". 
REPORT OF THE SECRETARY OF AGRICULTURE 
SEC. 1408. Section 1410 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3125) is 
amended by— 
(1) inserting "and" at the end of paragraph (2); 
(2) striking out "; and" at the end of paragraph (3) and 
inserting in lieu thereof a period; and 
(3) striking out paragraph (4). 
Science and 
technology. 
Conservation. 
Prohibition. 
COMPETITIVE, SPECIAL, AND FACIUTIES RESEARCH GRANTS 
SEC. 1409. (aXD The third sentence of section 2(b) of the Act 
entitled "An Act to facilitate the work of the Department of Agri-
culture, and for other purposes", approved August 4, 1965 (7 U.S.C, 
450i(b)), is amended by— 
(A) inserting ", with emphasis on biotechnology," after "(2) 
research" in paragraph (2); 
(B) striking out "and" at the end of paragraph (5); 
(C) striking out the period at the end of paragraph (6) and 
inserting in lieu thereof a semicolon; and 
(D) adding at the end thereof the following new paragraphs: 
"(7) research to reduce farm input costs through the collection 
of national and international data and the transfer of appro-
priate technology relating to sustainable agricultural systems, 
soil, energy, and water conservation technologies, rural and 
farm resource management, and the diversification of farm 
product processing and marketing systems; and 
"(8) research to develop new and alternative industrial uses 
for agricultural crops.". 
(2) Section 2(b) of such Act is amended by inserting after the 
fourth sentence the following new sentence: "No grant may be made 
under this subsection for any purpose for which a grant may be 
made under subsection (d) or for the planning, repair, rehabilitation, 
acquisition, or construction of a building or a facility.". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1547 
Prohibition. 
Grants. 
(3) Effective October 1,1985, section 2(b) of such Act is amended by Effective date, 
striking out the last sentence and inserting in lieu thereof the '^ USC 450i. 
following new sentences: "There are authorized to be appropriated, 
for the purpose of carrying out this subsection, $70,000,000 for each 
of the fiscal years ending September 30, 1986, through September 
30, 1990. Four percent of the amount appropriated for each of such 
fiscal years to carry out this subsection may be retained by the 
Secretary to pay administrative costs incurred by the Secretary to 
carry out this subsection.". 
(bXD Section 2(c) of such Act is amended by inserting after the 7 use 450i. 
first sentence the following new sentence: 
"No grant may be made under this subsection for any purpose for 
which a grant may be made under subsection (d) or for the planning, 
repair, rehabilitation, acquisition, or construction of a building or 
facility.". 
(2) Effective October 1,1985, section 2(c) of such Act is amended by Effective date, 
adding at the end thereof the following new sentence: "Four percent 
of the amount appropriated for any fiscal year to carry out this 
subsection may be retained by the Secretary to pay administrative 
costs incurred by the Secretary to carry out this subsection.". 
(c) Section 2 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(i) The Federal Advisory Committee Act (5 U.S.C. App. 2) and 
title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et 
seq.) shall not apply to a panel or board created for the purpose of 
reviewing applications or proposals submitted under this section.". 
Prohibition. 
GRANTS FOR SCHOOLS OF VETERINARY MEDICINE 
SEC. 1410. Section 
1415(cXl) of the National 
Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3151(c)(1)) is amended by striking out "Four" and inserting in lieu 
thereof "Five". 
RESEARCH FACIUTIES 
SEC. 1411. (a) The first section of the Act entitled "An Act to assist 
the States to provide additional facilities for research at the State 
agricultural experiment stations", approved July 22, 1963 (7 U.S.C. 
390), is amended by— 
(1) inserting "on a matching funds basis" after "funds"; 
(2) inserting "and equipment" after "facilities"; and 
(3) striking out "an adequate research program" and insert-
ing in lieu thereof "agricultural research and related academic 
programs". 
(b) Section 2 of such Act (7 U.S.C. 390a) is amended by— 
(1) striking out "which are to become a part of such build-
ings"; and 
(2) inserting "matching" after "means of. 
(c) Section 3 of such Act (7 U.S.C. 390b) is amended by— 
(1) striking out paragraph (1) and inserting in lieu thereof the 
following new paragraph: 
"(1) the term 'State' means each of the 50 States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, Amer-
ican Samoa, the Commonwealth of the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and the Virgin 
Islands of the United States;"; and 
99 STAT. 1548 
PUBLIC LAW 99-198—DEC. 23, 1985 
7 u s e 390e. 
Prohibition. 
Grants. 
Ante, p. 1547. 
Repeal. 
Repeal. 
Research 
Facilities Act. 
7 u s e 390 note. 
(2) in paragraph (2), inserting ", forestry, or veterinary medi-
cine" after "to conduct sigricultural". 
(dXD Effective October 1, 1985, subsection (a) of section 4 of such 
Act (7 U.S.C. 390c(a)) is amended to read as follows: 
"(a) There are authorized to be appropriated, for grants to eligible 
institutions under this Act to be used for the purpose set out in 
section 2, $20,000,000 for each of the fiscal years ending September 
30,1986, through September 30,1990.". 
(2) Subsection (b) of section 4 of such Act is amended to read as 
follows: 
"Ot)) No grant may be made under section 2 for an amount 
exceeding a percentage determined by the Secretary of the cost of 
the project for which such grant is made. The remaining cost of such 
project shall be paid with funds from non-Federal sources.". 
(e) The first sentence of section 5 of such Act (7 U.S.C. 390d) is 
amended by— 
(1) striking out "apportioned"; and 
(2) striking out ", which are to become part of such buildings". 
if) Section 6 of such Act (7 U.S.C. 390e) is repealed. 
(g) Section 7 of such Act (7 U.S.C. 390f) is amended by— 
(1) inserting "equipment and" after "multiple-purpose"; and 
(2) inserting "and related programs, including forestry and 
veterinary medicine," after "research". 
(h) Section 8 of such Act (7 U.S.C. 390g) is repealed. 
(iXD The first sentence of section 9(a) of such Act (7 U.S.C. 
390h(a)) is amended by— 
(A) striking out "authorized to receive" and inserting in lieu 
thereof "that receives"; 
(B) striking out "section 4" and inserting in lieu thereof 
"section 2"; and 
(C) striking out "section 40))" and inserting in lieu thereof 
"section 3(2) 
(2) Section 9(b) of such Act (7 U.S.C. 390hOb)) is amended by— 
(A) striking out "allotted funds received" and inserting in lieu 
thereof "funds received under this Act"; and 
(B) striking out "allocated or". 
0) Clause (3) of section 10 of such Act (7 U.S.C. 390i) is amended to 
read as follows: "(3) those eligible institutions, if any, that were 
prevented, because of failure to repay funds as required by section 
70k)), from receiving any grant under this Act". 
(k) Sections 7, 9, 10, and 11 of such Act (7 U.S.C. 390f, 390h, 390i, 
390j) are redesignated as sections 6, 7, 8, and 9, respectively. 
(1) Such Act (7 U.S.C. 390 et seq.) is amended by adding at the end 
thereof the following new section: 
"SEC. 10. This Act may be cited as the 'Research Facilities Act'.". 
GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
EDUCATION 
SEC 1412. (a) Section 1417(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(a)) 
is amended by— 
(1) in the second sentence of paragraph (2), striking out "Such 
grants shall be made without regard to matching funds, but 
each" and inserting in lieu thereof "Each"; and 
(2) striking out the last sentence of paragraph (3) and insert-
ing in lieu thereof the following new sentence: 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1549 
"Each recipient institution shall have a significant ongoing commit-
ment to the food and agricultural sciences generally and to the 
specific subject area for which such grant is to be used.". 
(b) Subsection (d) of section 1417 of such Act is amended to read as 7 USC 3152. 
follows: 
"(d) There are authorized to be appropriated for purposes of 
carrying out this section $50,000,000 for each of the fiscal years 
ending September 30,1982, through September 30, 1990.". 
(c) Section 1417 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(e) The Federal Advisory Committee Act (5 U.S.C. App. 2) and Prohibition, 
title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et 
seq.) shall not apply to a panel or board created for the purpose of 
reviewing applications or proposals submitted under this section.". 
FOOD AND HUMAN NUTRITION RESEARCH AND EXTENSION PROGRAM 
SEC. 1413. Sections 1424 and 1427 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174 
and 3177) are repealed. 
Repeal. 
ANIMAL HEALTH AND DISEASE RESEARCH 
SEC. 1414. (a) The first sentence of section 1432(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3194(a)) is amended by striking out "1985" and inserting in 
lieu thereof "1990". 
Ot)) The first sentence of section 1433(a) of such Act (7 U.S.C. 
3195(a)) is amended by striking out "1985" and inserting in lieu 
thereof "1990". 
(c) Section 1434(a) of such Act (7 U.S.C. 3196(a)) is amended by 
striking out "1985" and inserting in lieu thereof "1990". 
EXTENSION AT 1890 LAND-GRANT COLLEGES 
SEC. 1415. The third sentence of section 1444(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3221(a)) is amended by— 
(1) striking out ", through the fiscal year ending September 
30,1985,"; and 
(2) inserting before the period at the end thereof the follow-
ing: ", and related acts pertaining to cooperative extension work 
at the land-grant institutions identified in the Act of May 8, 
1914 (38 Stat. 372, chapter 79; 7 U.S.C. 341 et seq.)". 
GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION FACILITIES 
SEC. 1416. (a) It is the intent of Congress to assist institutions 
eligible to receive funds under the Act of August 30, 1890 (26 Stat. 
417, chapter 841; 7 U.S.C. 321 et seq.), including Tuskegee Institute 
(hereafter in this section referred to as "eligible institutions"), in the 
acquisition and improvement of extension facilities and equipment 
so that eligible institutions may participate fully with the State 
cooperative extension services in a balanced way in meeting the 
extension needs of the people of their respective States. 
(b) There are authorized to be appropriated for the purpose of 
carrying out this section $10,000,00(5 for each of the fiscal years 
Tuskegee 
Institute. 
7 USC 3224. 
99 STAT. 1550 
PUBLIC LAW 99-198—DEC. 23, 1985 
ending September 30, 1986, through September 30, 1990, such sums 
to remain available until expended. 
(c) Four percent of the sums appropriated under this section shall 
be available to the Secretary of Agriculture for administration of 
the grants program under this section. The remaining funds shall be 
made available for grants to the eligible institutions for the purpose 
of assisting the institutions in the purchase of equipment and land, 
and the planning, construction, alteration, or renovation of build-
ings, to provide adequate facilities to conduct extension work in 
their respective States. 
(d) Grants awarded under this section shall be made in such 
amounts and under such terms and conditions as the Secretary of 
Agriculture shall determine necessary for carrying out this section. 
Prohibition. 
(e) Federal funds provided under this section may not be used for 
the payment of any overhead costs of the eligible institutions. 
Regulations. 
(f) The Secretary of Agriculture may promulgate such rules and 
regulations as the Secretary considers necessary to carry out this 
section. 
RESEARCH AT 1890 LAND-GRANT COLLEGES 
Prohibition. 
SEC. 1417. (a) Section 1445(a) of the National Agricultural Re-
search, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)) 
is amended by adding at the end thereof the following new sentence: 
"No more than 5 percent of the funds received by an institution in 
any fiscal year, under this section, may be carried forward to the 
succeeding fiscal year.". 
(b) Paragraph (2) of section 1445(g) is amended to read as follows: 
"(2) If it appears to the Secretary from the annual statement of 
receipts and expenditures of funds by any eligible institution that an 
amount in excess of 5 percent of the preceding annual appropriation 
allotted to that institution under this section remains unexpended, 
such amount in excess of 5 percent of the preceding annual appro-
priation allotted to that institution shall be deduct^ from the next 
succeeding annual allotment to the institution.". 
INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION 
SEC. 1418. Section 1458(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is 
amended by— 
(1) in paragraph (3), striking out "the training o f and insert-
ing in lieu thereof "providing technical assistance, training, and 
advice to"; and 
(2) in paragraph (4), inserting "through the development of 
highly qualified scientists with specialization in international 
development" after "countries". 
INTERNATIONAL 
TRADE 
DEVELOPMENT 
CENTERS 
Effective date. 
SEC. 1419. (a) Effective October 1, 1985, the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 
et seq.) is amended by inserting, after section 1458, the following: 
" G R A N T S TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT 
CENTERS 
7 use 3292. 
"SEC. 1458A. (a) The Secretary shall establish and carry out a 
program to make grants to States for the establishment and oper-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1551 
Schools and 
colleges. 
ation of international trade development centers, or the expansion 
of existing international trade development centers, in the United 
States to enhance the exportation of agricultural products and 
related products. Such grants shall be based on a matching formula 
of 50 per centum Federal and 50 per centum State funding (includ-
ing funds received by the State from private sources and from units 
of local government). 
"(b) In making grants under subsection (a), the Secretary shall 
give preference to States that intend to use, as sites for international 
trade development centers, land-grant colleges and universities (as 
defined in section 1404(10) of this Act) that— 
"(1) operate agricultural programs; 
"(2) have existing international trade programs that use an 
interdisciplinary approach and are operated jointly with State 
and Federal agencies to address international trade problems; 
and 
"(3) have an effective and progressive communications system 
that might be linked on an international basis to conduct 
conferences or trade negotiations. 
"(c) Such centers may— 
"(1) through research, establish a permanent data base to 
address the problems faced by potential exporters, including 
language barriers, interaction with representatives of foreign 
governments, transportation of goods and products, insurance 
and financing within foreign countries, and collecting inter-
national marketing data; 
"(2) be used to house permanent or temporary exhibits that 
will stimulate and educate trade delegations from foreign na-
tions with respect to agricultural products and related products 
produced in the United States and be made available for use by 
State and regional entities for exhibits, trade seminars, and 
negotiations involving such products; and 
"(3) carry out such other activities relating to the exportation 
of agricultural products and related products as the Secretary 
may approve. 
"(d) There are hereby authorized to be appropriated such sums as 
are necessary to carry out the provisions of this section.". 
O
o
) Effective October 1, 1985, the table of contents of the Food and Effective date. 
Agriculture Act of 1977 is amended by inserting a new item: 
"Sec. 1458A. Grants to States for international trade development centers." 
after the item 
"Sec. 1458. International £igricultural research and extension.". 
Transportation. 
Marketing. 
AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND 
SEC. 1420. (a) The Secretary of Agriculture shall undertake discus-
sions with representatives of the Government of Ireland that may 
lead to an agreement that will provide for the development of a 
program between the United States and Ireland whereby there will 
be— 
(1) a greater exchange of— 
(A) agricultural scientific and educational information, 
techniques, and data; 
(B) agricultural marketing information, techniques, and 
data; and 
Science and 
technology. 
Marketing. 
99 STAT. 1552 
PUBLIC LAW 99-198—DEC. 23, 1985 
Repeal. 
(C) agricultural producer, student, teacher, agribusiness 
(private and cooperative) personnel; and 
(2) the fostering of joint investment ventures, cooperative 
research, and the expansion of United States trade with 
Ireland. 
(b) The Secretary shall periodically report to the Chairman of the 
Committee on Agriculture of the House of Representatives and the 
Chairman of the Committee on Agriculture, Nutrition, and Forestry 
of the Senate to keep such Committees apprised of the progress and 
accomplishments, and such other information as the Secretary 
considers appropriate, with r^ard to the development of such 
program. 
STUDIES 
SEC. 1421. Sections 1459, 1460, 1461, and 1462 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3301,3302,3303, and 3304) are repealed. 
AUTHORIZATION FOR APPROPRIATIONS FOR CERTAIN AGRICULTURAL 
RESEARCH PROGRAMS 
Effective date. 
SEC. 1422. (a) Effective October 1, 1985, section 1463(a) of the 
National Agricultural Research, Extension, and Teaching Policy Act 
of 1977 (7 U.S.C. 3311(a)) is amended by striking out "$505,000,000" 
and all that follows through "subsequent fiscal year" and inserting 
in lieu thereof "$600,000,000 for the fiscal year ending September 30, 
1986, $610,000,000 for the fiscal year ending September 30, 1987, 
$620,000,000 for the fiscal year ending September 30, 1988, 
$630,000,000 for the fiscal year ending September 30, 1989, and 
$640,000,000 for the fiscal year ending September 30,1990". 
Effective date. 
(b) Effective October 1, 1985, section 1463(b) of such Act (7 U.S.C. 
3311(b)) is amended by striking out "$120,000,000" and all that 
follows through "subsequent fiscal year" and inserting in lieu 
thereof "$270,000,000 for the fiscal year ending September 30, 1986, 
$280,000,000 for the fiscal year ending September 30, 1987, 
$290,000,000 for the fiscal year ending September 30, 1988, 
$300,000,000 for the fiscal year ending September 30, 1989, and 
$310,000,000 for the fiscal year ending September 30,1990". 
AUTHORIZATION FOR APPROPRIATIONS FOR EXTENSION EDUCATION 
Effective date. 
SEC. 1423. Effective October 1, 1985, section 1464 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3312) is amended by striking out "$260,000,000" and aU 
that follows through "subsequent fiscal year" and inserting in lieu 
thereof "$370,000,000 for the fiscal year ending September 30, 1986, 
$380,000,000 for the fiscal year ending September 30, 1987, 
$390,000,000 for the fiscal year ending September 30, 1988, 
$400,000,000 for the fiscal year ending September 30, 1989, and 
$420,000,000 for the fiscal year ending September 30,1990". 
CONTRACTS, G R A N T S , A N D COOPERATIVE AGREEMENTS 
SEC. 1424. Section 1472 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3318) is 
amended by— 
(1) redesignating subsections (b), (c), and (d) as subsections (c), 
(d), and (e), respectively; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1553 
(2) inserting after subsection (a) the following new subsection: 
"(bXl) Notwithstanding chapter 63 of title 31, United States Code, 
the Secretary may use a cooperative agreement as the legal in-
strument reflecting a relationship between the Secretary and a 
State cooperative institution, State department of gigriculture, col-
lege, university, other research or educational institution or 
organization. Federal or private agency or organization, individual, 
or any other party, if the Secretary determines that— 
"(A) the objectives of the agreement will serve a mutual 
interest of the parties to the agreement in agricultural re-
search, extension, and teaching activities, including statistical 
reporting; and 
"(B) all parties will contribute resources to the accomplish-
ment of those objectives. 
"(2) Notwithstanding any other provision of law, any Federal 
agency may participate in any such cooperative agreement by 
contributing funds through the appropriate agency of the Depart-
ment of Agriculture or otherwise if it is mutugilly agreed that the 
objectives of the agreement will further the authorized programs of 
vhe contributing agency.". 
Schools and 
colleges. 
31 u s e 6301 
etseq. 
INDIRECT COSTS 
SEC. 1425. Section 1473 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319) is 
amended by adding at the end thereof the following new sentences: 
"The prohibition on the use of such funds for the reimbursement of 
indirect costs shall not apply to funds for international agricultural 
programs conducted by a State cooperative institution and adminis-
tered by the Secretary or to funds provided by a Federal agency for 
such cooperative program or project through a fund transfer, ad-
vance, or reimbursement. The Secretary shall limit the amount of 
such reimbursement to an amount necessary to carry out such 
program or agreement.". 
COST-REIMBURSABLE AGREEMENTS 
SEC. 1426. The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 is amended by inserting after section 
1473 (7 U.S.C. 3319) the following new section: 
Supra. 
COST-REIMBURSABLE AGREEMENTS 
"SEC. 1473A. Notwithstanding any other provision of law, the 
Secretary of Agriculture may enter into cost-reimbursable agree-
ments with State cooperative institutions without regard to any 
requirement for competition, for the acquisition of goods or services, 
including personal services, to carry out agricultural research, 
extension, or teaching activities of mutual interest. Reimbursable 
costs under such agreements shall include the actual direct costs of 
performance, as mutually agreed on by the parties, and the indirect 
costs of performance, not exceeding 10 percent of the direct cost.". 
7 u s e 3319a. 
TECHNOLOGY DEVELOPMENT 
SEC. 1427 The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (as amended by section 1425) is 
99 STAT. 1554 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1553. 
amended by inserting after section 1473A the following new 
sections: 
7 use 3319c. 
31 use 6301 
et seq. 
Prohibition. 
TECHNOLOGY DEVELOPMENT FOR SMALL- AND MEDIUM-SIZED FARMING 
OPERATIONS 
7 use 3319b. 
"SEC. 1473B. It is the sense of Congress that the agricultural 
research, extension, and teaching activities conducted by the Sec-
retary of Agriculture relating to the development, application, 
transfer, or delivery of agricultural technology, and, to the greatest 
extent practicable, any funding that is received by the Secretary of 
Agriculture for such activities, should be directed to technology that 
can be used effectively by small- and medium-sized farming 
operations. 
"SPECIAL TECHNOLOGY DEVELOPMENT RESEARCH PROGRAM 
"SEC. 1473C. (a) Notwithstanding chapter 63 of title 31, United 
States Code, the Secretary may enter into a cooperative agreement 
with a private agency, organization, or individual to share the cost 
of a research project, or to allow the use of a Federal facility or 
service on a cost-sharing or cost reimbursable basis, to develop new 
agricultural technology to further a research program of the 
Secretary. 
"(b) For each of the fiscal years ending September 30, 1986, 
through September 30, 1990, not more than $3,000,000 of the funds 
appropriated to the Agricultural Research Service for such fiscal 
year may be used to carry out this section. 
"(cXD To be eligible to receive a contribution under this section, 
matching funds in an amount equal to at least 50 percent of such 
contribution shall be provided from non-Federal sources by the 
recipient or recipients of such contribution. 
"(2) Funds received by the Secretary under this section shall be 
deposited in a separate account or accounts, to be available until 
expended. Such funds may be used to pay directly the costs of such 
research projects and to repay or make advances to appropriations 
or funds that do or will initially bear all or part of such costs. 
Prohibition. 
"(3) The amount of funds or in kind assistance that may be made 
available under this section by the Secretary for a particular re-
search project may not exceed— 
(A) an amount of $50,000 in any fiscal year; or 
"(B) a total amount of $150,000.^^. 
SUPPLEMENTAL AND ALTERNATIVE CROPS 
SEC. 1428. The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.) (as amended by 
Supra. 
section 1426) is amended by inserting after section 1473C the follow-
ing new section: 
"SUPPLEMENTAL AND ALTERNATIVE CROPS 
7USe33i9d. 
"SEC. 1473D. (a) Notwithstanding any other provision of law, 
during the period beginning October 1, 1986, and ending September 
30, 1990, the Secretary shall develop and implement a research and 
pilot project program for the development of supplemental and 
alternative crops, using such funds as are appropriated to the 
Secretary each nscal year under this title. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1555 
"(b) The development of supplemental and alternative crops is of 
critical importance to producers of agricultural commodities whose 
livelihood is threatened by the decline in demand experienced with 
respect to certain of their crops due to changes in consumption 
patterns or other related causes. 
"(cXD The Secretary shall use such research funding, special or 
Grants, 
competitive grants, or other means, as the Secretary determines, to 
further the purposes of this section in the implementation of a 
comprehensive and integrated program. 
"(2) The program developed and implemented by the Secretary 
shall include— 
"(A) an examination of the adaptation of supplemental and 
alternative crops; 
"(B) the establishment and extension of various methods of 
planting, cultivating, harvesting, and processing supplemental 
and alternative crops at pilot sites in areas adversely affected by 
declining demand for crops grown in the area; 
"(C) the transfer of such applied research from pilot sites to 
on-farm practice as soon as practicable; 
"(D) the establishment through grants, cooperative agree- Grants, 
ments, or other means of such processing, storage, and transpor-
tation facilities near such pilot sites for supplemental and 
alternative crops as the Secretary determines will facilitate the 
achievement of a successful pilot program; and 
"(E) the application of such other resources and expertise as 
the Secretary considers appropriate to support the program. 
"(3) The pilot program may include, but shall not be limited to, 
agreements, grants, and other arrangements— 
"(A) to conduct comprehensive resource and infrastructure 
assessments; 
"(B) to develop and introduce supplemental and alternative 
income-producing crops; 
"(C) to develop and expand domestic and export markets for 
such crops; and 
"(D) to provide technical assistance to farm owners and opera-
tors, marketing cooperatives, and others. 
"(d) The Secretary shall use the expertise and resources of the 
Schools and 
Agricultural Research Service, the Cooperative State Research Serv- colleges, 
ice, the Extension Service, and the land-grant colleges and univer-
sities for the purpose of carrying out this section.". 
Prohibition. 
Grants. 
AQUACULTURE 
SEC. 1429. (a) Section 1475 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3322) is 
amended by— 
(1) in the first sentence of subsection (b)— 
(A) striking out "and" at the end of paragraph (2); 
(B) inserting "and" after the semicolon at the end of 
paragraph (3); and 
(C) inserting after paragraph (3) the following new 
paragraph: 
"(4) nonprofit private research institutions;"; 
(2) in the last sentence of subsection (b), inserting "(of which 
Prohibition, 
amount an in-kind contribution may not exceed 50 percent)" 
after "matching grant"; 
99 STAT. 1556 
PUBLIC LAW 99-198—DEC. 23, 1985 
(3) in the first sentence of subsection (d), striking out "State 
agencies" and all that follows through "universities," and 
inserting in lieu thereof "any of the non-Federal entities speci-
fied in subsection (b)"; 
(4) adding at the end of subsection (d) the following new 
sentence: "To the extent practicable, the aquaculture research, 
development, and demonstration centers established under this 
subsection shall be geographically located so that they are 
representative of the regional aquaculture opportunities in the 
United States."; and 
(5) in the first sentence of subsection (e), inserting "the House 
Committee on Merchant Marine and Fisheries," after "House 
Committee on Agriculture,". 
Repeal. 
(b) Section 1476 of such Act (7 U.S.C. 3323) is repealed. 
(c) Section 1477 of such Act (7 U.S.C. 3324) is amended to read as 
follows: 
"AUTHORIZATION FOR APPROPRIATIONS 
"SEC. 1477. There is authorized to be appropriated $7,500,000 for 
each fiscal year beginning after the effective date of this subtitle, 
and ending with the fiscal year ending September 30,1990.". 
RANGELAND RESEARCH 
SEC. 1430. (a) The first sentence of section 1482(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 1977 
(7 U.S.C. 3335(a)) is amended by striking out "1985" and inserting in 
lieu thereof "1990". 
(b) Section 1483(a) of such Act (7 U.S.C. 3336(a)) is amended by 
striking out "1985" and all that follows through "subsequent fiscal 
year" and inserting in lieu thereof "1990". 
AUTHORIZATION FOR APPROPRIATIONS FOR FEDERAL AGRICULTURAL 
RESEARCH FACILITIES 
SEC. 1431. (a) There are authorized to be appropriated for each of 
the fiscal years ending September 30, 1988, through September 30, 
1990, such sums as may be necessary for the planning, construction, 
acquisition, alteration, and repair of buildings and other public 
improvements, including the cost of acquiring or obtaining rights to 
use land, of or used by the Agricultural Research Service, except 
that— 
Prohibition. 
(1) the cost of planning any one facility shall not exceed 
$500,000; and 
Prohibition. 
(2) the total cost of any one facility shall not exceed 
$5,000,000. 
(b) Not later than 60 days after the end of each of the fiscal years 
ending September 30, 1986, through September 30, 1990, the Sec-
retary of Agriculture shall submit to the Committee on Agriculture 
of the House of Representatives and to the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report specifying— 
(1) the location of each building, laboratory, research facility, 
and other public improvement of or to be used by the Agricul-
tural Research Service that is planned, constructed, acquired, 
repaired, or remodeled, with funds appropriated under subsec-
tion (a), in the fiscal year involved; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1557 
(2) with respect to each such building, laboratory, research 
facility, and improvement— 
(A) the amount of such funds obligated in the fiscal year; 
and 
(B) the amount of such funds expended in the fiscal year 
for such item. 
DAIRY GOAT RESEARCH 
SEC. 1432. Effective October 1, 1985, section 1432(bX5) of the Effective date. 
National Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1981 (7 U.S.C. 3222 note) is amended by striking out 
"September" the first place it appears and all that follows through 
"1985" and inserting in lieu thereof "September 30, 1986, through 
September 30,1990". 
GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE RESEARCH FACIUTIES 
SEC. 1433. (a) Section 1433(a) of the National Agricultural Re- Libraries. 
search, Extension, and Teaching Policy Act Amendments of 1981 (7 
U.S.C. 3223(a)) is amended by inserting ", including agricultural 
libraries," after "equipment", 
(b) Section 1433(b) of such Act (7 U.S.C. 3223(b)) is amended by— 
(1) striking out "and" after "1985,"; and 
(2) inserting "and September 30,1987," after "1986,". 
SOYBEAN RESEARCH ADVISORY INSTITUTE 
SEC. 1434. Section 1446 of the National Agricultural Research, Repeal. 
Extension, and Teaching Policy Act Amendments of 1981 (7 U.S.C. 
2281 note) is repealed. 
, 
SMITH-LEVER ACT 
SEC. 1435. (a) Section 2 of the Act of May 8, 1914 (38 Stat. 372, 
chapter 79; 7 U.S.C. 342) (hereafter in this section referred to as the 
Smith-Lever Act) (7 U.S.C. 342) is amended by— 
7 USC 341 note. 
(1) inserting "development of practical applications of re-
search knowledge and" after "consist of the"; and 
(2) inserting "of existing or improved practices or tech-
nologies" after "practical demonstrations". 
(b) Section 3 of the Smith-Lever Act (7 U.S.C. 343) is amended by 
adding at the end thereof the following: 
"(fKD The Secretary of Agriculture may conduct educational, 
Education, 
instructional, demonstration, and publication distribution programs 
through the Federal Extension Service and enter into cooperative 
Eigreements with private nonprofit and profit organizations and 
individuals to share the cost of such programs through contributions 
from private sources as provided in this subsection. 
"(2) The Secretary may receive contributions under this subsec- 
Prohibition. 
tion from private sources for the purposes described in paragraph (1) 
and provide matching funds in an amount not greater than 50 
percent of such contributions. 
(cXD The Secretary of Agriculture shall conduct a study to deter- 
Study. 
mine whether any funds that are— 
(A) appropriated after the date of the enactment of this Act to 
carry out the Smith-Lever Act (7 U.S.C. 341 et seq.), other than 
section 8 of such Act (7 U.S.C. 347a); and 
99 STAT. 1558 
PUBLIC LAW 99-198—DEC. 23, 1985 
7 u s e 347a. 
Report. 
Effective date. 
7 u s e 343 note. 
(B) in excess of the aggregate amount appropriated to carry 
out the Smith-Lever Act (other than section 8 of such Act) in the 
fiscal year ending September 30,1985, 
can be allocated more effectively among the States. 
(2) Not later than 1 year after the date of the enactment of this 
Act, the Secretary shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report summarizing the 
results of such study and containing the recommendations of the 
Secretary regarding the allocation of such funds. 
(d) This section and the amendments made by this section shall 
become effective on October 1,1985. 
Transportation. 
7 u s e 1632. 
Forests and 
forest products. 
Schools and 
colleges. 
Contracts. 
Prohibition. 
Prohibition. 
MARKET EXPANSION RESEARCH 
SEC. 1436. (a) The Secretary of Agriculture, using available funds, 
shall increase and intensify research programs conducted by or for 
the Department of Agriculture that are directed at developing 
technology to overcome barriers to expanded sales of United States 
agricultural commodities and the products thereof in domestic and 
foreign markets, including research programs for the development 
of procedures to meet plant quarantine requirements and improve-
ment in the transportation and handling of perishable agricultural 
commodities. 
(bXD The Secretary of Agriculture shall conduct a research and 
development program to formulate new uses for farm and forest 
products. Such program shall include, but not be limited to, research 
and development of industrial, new, and value-added products. 
(2) To the extent practicable, the Secretary of Agriculture shall 
carry out the program authorized in this subsection with colleges 
and universities, private industry, and Federal and State entities 
through a combination of grants, cooperative agreements, contracts, 
and interagency agreements. 
(3XA) There are authorized to be appropriated such sums as are 
necessary to carry out the program authorized under this 
subsection. 
(B) In addition, the Secretary may use funds appropriated or made 
available to the Secretary under provisions of law other than 
subparagraph (A) to carry out such program. 
(C) To the extent requests are made for matching funds under 
such program, the total amount of funds used by the Secretary to 
carry out the program under this subsection may not be less than 
$10,000,000 for each of the fiscal years ending September 30, 1986, 
through September 30,1990. 
(4) Funds appropriated under subparagraph (A) or made available 
under subparagraph (B) may be transferred among appropriation 
accounts to carry out the purposes of the program authorized under 
this subsection. 
(5) Notwithstanding any other provision of law, the Federal share 
of the cost of each research or development project funded imder 
this subsection may not exceed 50 percent of the cost of such project. 
Report. 
PESTICIDE RESISTANCE STUDY 
SEC. 1437. (a) The Secretary of Agriculture is encouraged to 
conduct a study on the detection and management of pesticide 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1559 
resistance and, within 1 year after the date of enactment of this Act, 
submit to the President and Congress a report on such study, 
(b) The study shall include— 
(1) a review of existing efforts to examine and identify the 
mechanisms, genetics, and ecological dynamics of target popu-
lations of insect and plant pests developing resistance to 
pesticides; 
(2) a review of existing efforts to monitor current and histori-
cal patterns of pesticide resistance; and 
(3) a strategy for the establishment of a national pesticide 
resistance monitoring program, involving Federal, State, and 
local agencies, as well as the private sector. 
EXPANSION OF EDUCATION STUDY 
SEC. 1438. (a) The Secretary of Agriculture and the Secretary of 
Education are authorized to take such joint action as may be 
necessary to expand the scope of the study, known £is the Study of 
Agriculture Education on the Secondary Level, currently being 
conducted by the National Academy of Sciences and sponsored 
jointly by the Departments of Agriculture and Education to 
include— 
(1) a study of the potential use of modern technology in the 
teaching of agriculture programs at the secondary school level; 
and 
(2) recommendations of the National Academy of Sciences on 
how modern technology can be most effectively utilized in the 
teaching of agricultural programs at the secondary school level. 
(b) Any increase in the cost of conducting such study as a result of 
expanding the scope of such study pursuant to subsection (a) shall be 
borne by the Secretary of Agriculture out of funds appropriated to 
the Department of Agriculture for research and education or from 
funds made available to the National Academy of Sciences from 
private sources to expand the scope of such study. 
Science and 
technology. 
Science and 
technology. 
CRITICAL AGRICULTURAL MATERIALS 
SEC. 1439. (a) Section 5(bX9) of the Critical Agricultural Materials 
Act (7 U.S.C. 178c(bX9)) is amended by inserting ", carrying out 
demonstration projects to promote the development or commer-
cialization of such crops (including projects designed to expand 
domestic or foreign markets for such crops)," after "purposes,", 
(b) Section 5 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(d) Notwithstanding any other provision of law, in carrying out a 
demonstration project referred to in subsection (bX9), the Secretary 
may— 
"(1) enter into a contract or cooperative agreement with, or 
provide a grant to, any person, or public or private agency or 
organization, to participate in, carry out, support, or stimulate 
such project; 
"(2) make available for purposes of clause (1) ^n*icultural 
commodities or the products thereof acquired by the Commodity 
Credit Corporation under price support operations conducted by 
the Corporation; or 
"(3) use any funds appropriated pursuant to section 16(a), or 
any funds provided by any person, or public or private agency or 
98 Stat. 182. 
Contracts. 
Grants. 
98 Stat. 184. 
7 u s e 178n. 
- 
15 
QL. 3 
Part 2 
99 STAT. 1560 
PUBLIC LAW 99-198—DEC. 23, 1985 
organization, to carry out such project or reimburse the 
Commodity Credit Corporation for agricultural commodities or 
products that are utilized in connection with such project.". 
SPECIAL GRANTS FOR FINANCIALLY STRESSED FARMERS AND DISLOCATED 
FARMERS 
SEC. 1440. (a) Section 502 of the Rural Development Act of 1972 (7 
U.S.C. 2662) is amended by inserting at the end thereof the following 
new subsection: 
"(f) SPECIAL GRANTS FOR FINANCIALLY STRESSED FARMERS AND 
DISLOCATED FARMERS.—(IXA) The Secretary shall provide special 
grants for programs to develop income alternatives for farmers who 
have been adversely affected by the current farm and rural eco-
nomic crisis and those displaced from farming. 
Education. 
"(B) Such programs shall consist of educational and counseling 
services to farmers to— 
"(i) assess human and nonhuman resources; 
"(ii) assess income earning alternatives; 
"(iii) identify resources and opportunities available to the 
farmer in the local community, county, and State; 
"(iv) implement financial planning and management strate-
gies; and 
"(v) provide linkages to specific resources and opportunities 
that are available to the farmer, such as reentering agriculture, 
new business opportunities, other off-farm jobs, job search pro-
grams, and retraining skills. 
"(C) The Secretary also may provide support to mental health 
officials in developing outreach programs in rural areas. 
"(2) Grants may be made under paragraph (1) during the period 
beginning on the date of enactment of the Food Security Act of 1985 
and ending 3 years after such date.". 
(b) Section 503(c) of such Act (7 U.S.C. 2663(c)) is amended by 
inserting "and section 502(f)" after "section 502(e)" both times it 
appears. 
ANNUAL REPORT ON FAMILY FARMS 
SEC. 1441. Section 102(b) of the Food and Agriculture Act of 1977 
(7 U.S.C. 22660t))) is amended by— 
(1) designating the first and second sentences as paragraphs 
(1) and (2), respectively; and 
(2) amending paragraph (2) (as so designated) to read as 
follows: 
"(2) The Secretary shall also include in each such report— 
"(A) information on how existing agricultural and agri-
culture-related programs are being administered to enhance 
and strengthen the family farm system of agriculture in the 
United States; 
"(B) an assessment of how tax, credit, and other current 
Federal income, excise, estate, and other ta^ laws, and proposed 
changes in such laws, may affect the structure and organization 
of, returns to, and investment opportunities by family and 
nonfamily farm owners and operators, both foreign and 
domestic; 
Science and 
"(C) identification and analysis of new food and agricultural 
technology. 
production and processing technological developments, espe-
g« 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1561 
cially in the area of biotechnology, and evaluation of the poten-
tial effect of such developments on— 
"(i) the economic structure of the family farm system; 
"(ii) the competitive status of domestically-produced agri-
cultural commodities and foods in foreign markets; and 
"(iii) the achievement of Federal agricultural program 
objectives; 
"(D) an assessment of the credit needs of family farms and the 
extent to which those needs are being met, and an analysis of 
the effects of the farm credit situation on the economic struc-
ture of the family farm system; 
"(E) an assessment of how economic policies and trade policies 
of the United States affect the financial operation of, and 
prospects for, family farm operations; 
"(F) an assessment of the effect of Federal farm programs and 
policies on family farms and non-family farms that— 
"(i) derive the mayority of their income from non-farm 
sources; and 
"(ii) derive the majority of their income from farming 
operations; and 
"(G) such other information as the Secretary considers appro- 
^ ; 
priate or determines would aid Congress in protecting, preserv-
ing, and strengthening the family farm system of agricidture in 
the United States.". 
CONFORMING AMENDMENTS TO TABLES OF CONTENTS 
SEC. 1442. (a) The table of contents of the Food and Agriculture 
Act of 1977 (Public Law 95-113; 91 Stat. 913) (as amended by sections 
1413,1420,1425,1426,1427, and 1428(b)) is amended by— 
(1) striking out the items relating to sections 1424,1427,1459, 
1460,1461,1462,1476; 
(2) inserting aiter the item relating to section 1473 the follow-
ing new items: 
"Sec. 1473A. G)st-reimbursable agreements. 
"Sec. 1473B. Technolc^y development for small and medium-sized farming oper-
ations. 
"Sec. 1473C. Special technology development research program. 
"Sec. 1473D. Supplemental and alternative crops."; and 
(3) striking out the item relating to section 1477 and inserting 
in lieu thereof the following new item: 
"Sec. 1477. Authorization for appropriations.". 
(b) The table of contents of the Agriculture and Food Act of 1981 
(Public Law 97-98; 95 Stat. 1213) (as amended by section 1433) is 
amended by striking out the item relating to section 1446. 
Subtitle B—Human Nutrition Research 
FINDINGS 
SEC. 1451. Congress finds that— 
7 use 3173 
(1) nutrition and health considerations are important to 
^°^-
United States agricultural policy; 
(2) section 1405 of the National Agricultural Research, Exten-
sion, and Teaching Policy Act of 1977 (7 U.S.C. 3121) designates 
Ante, p. 1544. 
the Department of Agriculture as the lead agency of the Federal 
Government for human nutrition research (except with respect 
99 STAT. 1562 
PUBLIC LAW 99-198—DEC. 23, 1985 
to the biomedical aspects of human nutrition concerned with 
diagnosis or treatment of disease); 
(3) section 1423 of such Act (7 U.S.C. 3173) requires the 
Secretary of Agriculture to establish research into food and 
human nutrition as a separate and distinct mission of the 
Department of Agriculture; 
(4) the Secretary has established a nutrition education pro-
gram; and 
(5) nutrition research continues to be of great importance to 
those involved in agricultural production. 
HUMAN NUTRITION RESEARCH 
7 use 3173 note. 
SEC. 1452. (a) Not later than 1 year after the date of enactment of 
this Act, the Secretary of Agriculture (hereafter in this subtitle 
referred to as the "Secretary") shall submit to the appropriate 
committees of Congress a comprehensive plan for implementing a 
national food and human nutrition research program, including 
recommendations relating to research directions, educational activi-
ties, and funding levels necessary to carry out such plan. 
Report. 
G)) Not later than 1 year after the date of the submission of the 
plan required under subsection (a), and each year thereafter, the 
Secretary shall submit to such committees an annual report on the 
human nutrition research activities conducted by the Secretary. 
DIETARY ASSESSMENT AND STUDIES 
7 use 3173 note. 
SEC. 1453. (a) The Secretary of Agriculture and the Secretary of 
Health and Human Services shall jointly conduct an assessment of 
existing scientific literature and research relating to— 
(1) the relationship between dietary cholesterol and blood 
cholesterol and human health and nutrition; and 
(2) dietary calcium and its importance in humeui health and 
nutrition. 
In conducting the assessments under this subsection, the Secretaries 
shall consult with agencies of the Federal (Jovemment involved in 
related research. On completion of such assessments, the Secretaries 
shall each recommend such further studies as the Secretaries con-
sider useful. 
Report. 
(b) Not later than 1 year after the date of enactment of this Act, 
the Secretary of Agriculture and the Secretary of Health and 
Human Services shsdl each submit to the House Committees on 
Agriculture and Energy and Commerce and the Senate Committees 
on Agriculture, Nutrition, and Forestry and Labor and Human 
Resources a report that shall include the results of the assessments 
conducted under subsection (a) and recommendations made under 
such subsection, for more complete studies of the issues examined 
under such subsection, including a protocol, feasibility assessment, 
budget estimates and a timetable for such research as each Sec-
retary shall consider appropriate. 
Subtitle C—Agricultural Productivity Research 
DEFINITIONS 
7 use 4701. 
SEC. 1461. For purposes of this subtitle: 
(1) The term extension" shall have the same meaning given 
to such term by section 1404(7) of the National Agricultural 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1563 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103(7)). 
(2) The term "Secretary" means the Secretary of Agriculture. 
(3) The term "State" means each of the 50 States, the District 
of Columbia, the Commonwealth of Puerto Rico, Guam, the 
Virgin Islands of the United States, American Samoa, the 
Commonwealth of the Northern Mariana Islands, or the Trust 
Territory of the Pacific Islands. 
(4) The term "State agricultural experiment stations" shall 
have the meaning given to such term by section 1404(13) of the 
National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3101(13)). 
7 use 3103. 
FINDINGS 
SEC. 1462. Congress finds that— 
(1) highly productive and efficient agricultural systems and Conservation, 
sound conservation practices are essential to ensure the long- '^ U
S
C 4702. 
term agricultural viability and profitability of farms and 
ranches in the United States; 
(2) agricultural research and technology transfer activities of Schools and 
the Secretary (including activities of the Extension Service, the colleges. 
Agricultural Research Service, and the Cooperative State Re-
search Service), State cooperative extension services, land-grant 
and other colleges and universities, and State agricultural 
experiment stations— 
(A) have contributed greatly to innovation in agriculture; 
and 
(B) have a continuing role to play in improving agricul-
tural productivity; 
(3) the annual irretrievable loss of billions of tons of precious 
topsoil through wind and water erosion reduces agricultural 
productivity; 
(4) many farmers and ranchers are highly dependent on 
machines and energy resources for agricultural production; 
(5) public funding of a properly planned and balanced agricul-
tural research program is essential to improving efficiency in 
agricultural production and conservation practices; and 
(6) expanded agricultural research and extension efforts are 
needed to assist farmers and ranchers to— 
(A) improve agricultural productivity; and 
(B) implement soil, water, and energy conservation Conservation. 
practices. 
PURPOSES 
SEC. 1463. It is the purpose of this subtitle to— 
7 use 4703. 
(1) facilitate and promote scientific investigation in order to— 
(A) enhance agricultural productivity; 
(B) maint£dn the productivity of land; 
(C) reduce soil erosion and loss of water and plant nutri-
ents; and 
(D) conserve energy and natural resources; and 
Conservation. 
(2) facilitate the conduct of research projects in order to study 
agricultural production systems that— 
(A) are located, to the extent practicable, in areas that 
possess various soil, climatic, and physical characteristics; 
99 STAT. 1564 
PUBLIC LAW 99-198—DEC. 23, 1985 
(B) have been, and will continue to be, managed using 
farm production practices that rely on— 
(i) items purchased for the production of an agricul-
tural commodity; and 
Conservation. 
(ii) a variety of conservation practices; and 
(C) are subjected to a change from the practices described 
in subparagraph (BXi) to the practices described in subpara-
graph (BXii). 
INFORMATION STUDY 
SEC. 1464. (a) Subject to section 1468, the Secretary shall inventory 
and classify by subject matter all studies, reports, and other mate-
rials developed by any person or governmental agency with the 
participation or financial assistance of the Secretary, that could be 
used to promote the purposes of this subtitle. 
(b) In carrying out subsection (a), the Secretary shall— 
(1) identify, assess, and classify existing information and re-
search reports that will further the purposes of this subtitle, 
including information and research relating to legume-crop 
rotation, the use of green manure, animal manures, and munici-
pal wastes in agricultural production, soil acidity, liming in 
relation to nutrient release, intercropping, the role of organic 
matter in soil productivity and erosion control, the effect of 
topsoil loss on soil productivity, and biological methods of weed, 
disease, and insect control; 
Reports. 
(2) identify which of such reports provide useful information 
and make such useful reports available to farmers and ranch-
ers; and 
(3) identify gaps in such information and carry out a research 
program to fill such gaps. 
Reports. 
7 u s e 4704. 
Post, p. 1565. 
Reports. 
RESEARCH PROJECTS 
7 use 4705. 
SEC. 1465. (a) Subject to section 1468, in cooperation with Federal 
and State research agencies and agriculture^ producers, the Sec-
retary shall conduct such research projects as are needed to obtain 
data, draw conclusions, and demonstrate technologies necessary to 
promote the purposes of this subtitle. 
Studies. 
(b) In canying out subsection (a), the Secretary shall conduct 
projects and studies in areas that are broadly representative of 
United States agricultural production, inclu(Ung production on 
small farms. 
(c) In carrying out subsection (a), the Secretary may conduct 
research projects involving crops, soils, production methods, and 
weed, insect, and disease pests on individual fields or other areas of 
land. 
(d) In the case of a research project conducted under this section 
that involves the planting of a sequence of crops, the Secretary shall 
conduct such project for a term of— 
(1) at least 5 years; and 
(2) to the extent practicable, 12 to 15 years. 
(eXD In coordination with the Extension Service and State co-
operative extension services, the Secretary shall take such steps as 
are necessary to ensure that farmers and ranchers are aware of 
projects conducted under this section. 
(2) The Secretary shall ensure that such projects are open for 
public observation at specified times. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1565 
(fXl) Subject to paragraph (2), the Secretary may indemnify an 
operator of a project conducted under this section for damage 
incurred or undue losses sustained as a result of a rigid requirement 
of research or demonstration under such project that is not experi-
enced in normal farming operations. 
(2) An indemnity pa5mient under paragraph (1) shall be subject to 
any agreement between a project grantee and operator entered into 
prior to the initiation of such project. 
COORDINATION 
SEC. 1466. The Secretary shall— 
(1) establish a panel of experts consisting of representatives of 
the Agricultural Research Service, Cooperative State Research 
Service, Soil Conservation Service, Extension Service, State 
cooperative extension services. State agricultural experiment 
stations, and other specialists in agricultural research and tech-
nology transfer; and 
(2) ensure that a research project under this subtitle is de-
signed after taking into consideration the views of such panel. 
REPORTS 
SEC. 1467. The Secretary shall submit to the Committee on Agri-
culture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate— 
(1) not later than 180 days after the effective date of this 
subtitle, a report describing the design of research projects 
established in accordance with sections 1465 and 1466; 
(2) not later than 15 months after the effective date of this 
subtitle, a report describing the results of the program carried 
out under section 1464; and 
(3) not later than April 1,1987, and each April 1 thereafter, a 
report describing the progress of projects conducted under this 
subtitle, including— 
(A) a summary and analysis of data collected under such 
projects; and 
(B) recommendations based on such data for new basic or 
applied research. 
7 u s e 4706. 
7 u s e 4707. 
Ante, p. 1564; 
supra. 
Ante, p. 1564. 
AGREEMENTS 
SEC. 1468. The Secretary may carry out sections 1464 and 1465 
through agreements with land-grant colleges or universities, other 
universities. State Eigricultural experiment stations, nonprofit 
organizations, or Federal or State governmental entities, that have 
demonstrated appropriate expertise in agricultural research and 
technology transfer. 
DISSEMINATION OF DATA 
SEC. 1469. The Secretary shall— 
(1) make available through the Extension Service and State 
cooperative extension services— 
(A) the information and research reports identified under 
section 1464; and 
(B) the information and conclusions resulting from any 
research project conducted under section 1465; and 
Schools and 
colleges. 
7 U ^ 4708. 
7 u s e 4709. 
Schools and 
colleges. 
99 STAT. 1566 
PUBLIC LAW 99-198—DEC. 23, 1985 
(2) otherwise take such steps as are necessary to ensure that 
such material is made available to the public. 
AUTHORIZATION FOR APPROPRIATIONS 
7 use 4710. 
SEC. 1470. There are authorized to be appropriated such sums as 
may be necessary to carry out this subtitle, to remain available until 
expended. 
EFFECTIVE DATE 
7 use 4701 note. 
SEC. 1471. This subtitle shall become effective on October 1, 1985. 
TITLE XV—FOOD STAMP AND RELATED PROVISIONS 
Subtitle A—Food Stamp Provisions 
PUBUCLY OPERATED COMMUNITY MENTAL HEALTH CENTERS 
SEC. 1501. (a) Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 
2012) is amended by— 
(1) in subsection (f), striking out "which" and all that follows 
through "providing" and inserting in lieu thereof ", or a pub-
licly operated community mental health center, under part B of 
title XIX of the Public Health Service Act (42 U.S.C. 300x et 
seq.) to provide"; and 
(2) inserting ", or a publicly operated community mental 
health center,' after "private nonprofit institution" in the last 
sentence of subsection (i). 
(b) Section 10 of such Act (7 U.S.C. 2019) is amended by inserting 
"publicly operated community mental health centers or" after "pur-
chased, and". 
DETERMINATION OF FOOD SALES VOLUME 
SEC. 1502. Section 3(k) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(k)) is amended by inserting after "food sales volume" in clause 
(1) the following: ", as determined by visual inspection, sales records, 
purchase records, or other inventory or accounting recordkeeping 
methods that are customary or reasonable in the retail food 
industry,". 
THRIFTY FOOD PLAN 
SEC. 1503. The first sentence of section 3(o) of the Food Stamp Act 
of 1977 (7 U.S.C. 2012(o)) is amended by strikmg out "fifty-four^' and 
inserting in lieu thereof "fifty". 
DEFINITIONS OF THE DISABLED 
SEC. 1504. Section 3(r) of the Food Stamp Act of 1977 (7 U.S.C. 
2012(r)) is amended b y -
C
D inserting before the semicolon at the end of paragraph (2) 
the following: ", federally or State administered supplemental 
benefits of the t3rpe described in section 1616(a) of the Social 
42 use I382e. 
Security Act if the Secretary determines that such benefits are 
conditioned on meeting the disability or blindness criteria used 
42 use 1381. 
under title XVI of the Social Security Act, or federally or State 
administered supplemental benefits of the type described in 
section 212(a) of Public Law 93-66 (42 U.S.C. 1382 note)"; 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1567 
(2) inserting before the semicolon at the end of paragraph (3) 
the following: "or receives disability retirement benefits from a 
governmental agency because of a disability considered perma-
nent under section 221(i) of the Social Security Act (42 U.S.C. 
421(i))"; 
(3) inserting "or non-service-connected" after "service-con-
nected" in paragraph (4XA); 
(4) striking out "or" at the end of paragraph (5); 
(5) striking out the period at the end of paragraph (6) and 
inserting in lieu thereof "; or"; and 
(6) adding at the end thereof the following: 
"(7) is an individual receiving an annuity under section 
2(a)(lXiv) or 2(a)(lXv) of the Railroad Retirement Act of 1974 (45 
U.S.C. 231a(aXlXiv) or 231a(a)(lXv)), if the individual's service as 
an employee under the Railroad Retirement Act of 1974, after 
December 31,1936, had been included in the term 'employment' 
as defined in the Social Security Act, and if an application for 42 use 1305. 
disability benefits had been filed.". 
STATE AND LOCAL SALES TAXES 
SEC. 1505. (a) Section 4(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2013(a)) is amended by inserting before the period at the end of the 
first sentence the following: ", except that a State may not partici-
pate in the food stamp program if the Secretary determines that 
State or local sales taxes are collected within that State on pur-
chases of food made with coupons issued under this Act". 
(bXD Except as provided in paragraph (2), the amendment made 
by subsection (a) shall take effect with respect to a State beginning 
on the first day of the fiscal year that commences in the calendar 
year during which the first regular session of the legislature of such 
State is convened following the date of enactment of this Act. 
(2) Upon a showing by a State, to the satisfaction of the Secretary, 
that the application of paragraph (1), without regard to this para-
graph, would have an adverse and disruptive effect on the adminis-
tration of the food stamp program in such State or would provide 
inadequate time for retail stores to implement changes in sales tax 
policy required as a result of the amendment made by subsection (a), 
the Secretary may delay the effective date of subsection (a) with 
respect to such State to a date not later than October 1, 1987. 
RELATION OF FOOD STAMP AND COMMODITY DISTRIBUTION PROGRAMS 
SEC. 1506. Section 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 
2013(b)) is amended by— 
(1) striking out the first sentence; and 
(2) striking out "also" in the second sentence. 
Effective date. 
7 u s e 2013 note. 
CATEGORICAL EUGIBIUTY 
SEC. 1507. (aXD Section 5(a) of the Food Stamp Act of 1977 (7 Blind persons. 
U.S.C. 2014) is amended by inserting after the first sentence the Disabled 
following: "Notwithstanding any other provisions of this Act except Persons. 
sections 6(b), 6(dX2), and 6(g) and the third sentence of section 3(i), Post, pp. 1572, 
and during the period beginning on the date of the enactment of the 1573; 
Food Security Act of 1985 and ending on September 30, 1989, an^, p. 1566. 
households in which each member receives benefits under a State 
plan approved under part A of title IV of the Social Security Act, 42 use 601. 
99 STAT. 1568 
PUBLIC LAW 99-198—DEC. 23, 1985 
42 u s e 1381. 
42 u s e 301, 
1201, 1351. 
Prohibition. 
7 u s e 2014 note. 
Prohibition. 
Ante, p. 1567. 
7 u s e 2014 note. 
Report. 
Post, p. 1569. 
State and local 
governments. 
Prohibition. 
Regulations. 
supplemental security income benefits under title XVI of the Social 
Security Act, or aid to the aged, blind, or disabled under title I, X, 
XIV, or XVI of the Social Security Act, shall be eligible to partici-
pate in the food stamp program.". 
(2) During the period beginning on the date of the enactment of 
this Act and ending on September 30, 1989, section 5(j) of the Food 
Stamp Act.of 1977 (7 U.S.C. 2014(j)) shall not apply. 
(b) Section ll(i) of the Food Stamp Act of 1977 (7 U.S.C. 2020(i)) is 
amended by adding at the end thereof the following: "No household 
shall have its application to participate in the food stamp program 
denied nor its benefits under the food stamp program terminated 
solely on the basis that its application to participate has been denied 
or its benefits have been terminated under any of the programs 
carried out under the statutes specified in the second sentence of 
section 5(a) and without a separate determination by the State 
agency that the household fails to satisfy the eligibility require-
ments for participation in the food stamp program.". 
(c) Not later than 2 years after the date of the enactment of this 
Act, the Secretary shall— 
(1) evaluate the implementation of the second sentence of 
section 5(a) of the Food Stamp Act of 1977, as amended by 
subsection (a) of this section; and 
(2) submit to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture of the 
House of Representatives a report summarizing the results of 
such evaluation. 
THIRD PARTY PAYMENTS 
SEC. 1508. Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
is amended by— 
(1) inserting "except as provided in subsection (k)," after 
"household," in subsection (dXD; and 
(2) adding at the end thereof the following new subsection: 
"(kXD For purposes of subsection (dXD, except as provided in 
paragraph (2), assistance provided to a third party on behalf of a 
household by a State or local government shall be considered money 
payable directly to the household if the assistance is provided in lieu 
of— 
"(A) a regular benefit payable to the household for living 
expenses under a State plan for aid to families with dependent 
children approved under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.); or 
"(B) a benefit payable to the household for living expenses 
under— 
"(i) a State or local general assistance program; or 
"(ii) another basic assistance program comparable to gen-
eral assistance (as determined by the Secretary). 
"(2) Paragraph (1) shall not apply to— 
"(A) medical assistance; 
"(B) child care assistance; 
"(C) energy assistance; 
"(D) assistance provided by a State or local housing authority; 
or 
"(E) emergency and special assistance, to the extent excluded 
in regulations prescribed by the Secretary.". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1569 
Prohibition. 
Loans. 
Grants. 
EXCLUDED INCOME 
SEC. 1509. (a) Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(d)), as amended by section 1508, is amended by— 
Ante, p. 1568; 
(1) inserting "and except as provided in subsection (k)," after *"^'^-
the comma at the end of clause (1); 
(2) in clause (3)— 
(A) striking out "higher education" and inserting in lieu 
thereof "post-secondary education"; and 
(B) adding at the end thereof "and to the extent loans Loans. 
include any origination fees and insurance premiums,"; 
(3) inserting "no portion of any non-Federal educational loan 
on which payment is deferred, grant, scholarship, fellowship, 
veterans' benefits, and the like that are provided for living 
expenses, and no portion of any Federal educational loan on 
which payment is deferred, grant, scholarship, fellowship, veter-
ans' benefits, and the like to the extent it provides income 
assistance beyond that used for tuition and mandatory school 
fees," in the proviso to clause (5) after "child care expenses,"; 
(4) inserting ", but household income that otherwise is in-
cluded under this subsection shall be reduced by the extent that 
the cost of producing self-emplo3niient income exceeds the 
income derived from self-employment as a farmer" before the 
comma in clause (9); 
(5) inserting "except as otherwise provided in subsection (k) of 
this section" after "food stamp program" in clause (10). 
(b) Section 5(k) of such Act, as added by section 1508, is amended 
by adding at the end thereof the following new paragraph: 
"(3) For purposes of subsection (dXD, educational loans on which Loans. 
pa3rment is deferred, grants, scholarships, fellowships, veterans' Grants. 
educational benefits, and the like that are provided to a third party 
on behalf of a household for living expenses shall be treated as 
money payable directly to the household. . 
(c) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), as 
amended by section 1508, is amended by adding at the end thereof 
the following new subsection: 
"(1) Notwithstanding section 142(b) of the Job Training Partner-
ship Act (29 U.S.C. 1552(b)), earnings to individuals participating in 
on-the-job training programs under section 204(5) of the Job Train-
ing Partnership Act shall be considered earned income for purposes 29 use 1604. 
of the food stamp program, except for dependents less than 19 years 
of age.". 
CHILD SUPPORT PAYMENTS 
SEC. 1510. Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014), 
as amended by sections 1508 and 1509— 
(1) in subsection (d) by— 
(A) striking out "and" at the end of clause (11); and 
(B) inserting before the period at the end thereof the 
following: ", and (13) at the option of a State £igency and 
subject to subsection (m), child support payments that are 
excluded under section 402(a)(8XA)(vi) of the Social Security 
Act (42 U.S.C. 602(a)(8)(A)(vi))"; and 
98 Stat. 1146. 
(2) adding at the end thereof the following new subsection: 
"(m) If a State agency excludes payments from income for pur-
poses of the food stamp program under subsection (dX13), such State 
agency shall pay to the Federal Government, in a manner pre-
99 STAT. 1670 
PUBLIC LAW 99-198—DEC. 23, 1985 
scribed by the Secretary, the cost of any additional benefits provided 
to households in such State that arise under such program as the 
result of such exclusion.". 
Effective date. 
Effective date. 
Prohibitions. 
District of 
Columbia. 
Alaska. 
Hawaii. 
Guam. 
Virgin Islands. 
DEDUCTIONS FROM INCOME 
SEC. 1511. Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)) is amended by— 
(1) in the second sentence, striking out "homeownership 
component" and inserting in lieu thereof "homeowners' costs 
and maintenance and repair component"; 
(2) effective May 1, 1986, in the third sentence, striking out 
"18" and inserting in lieu thereof "20"; 
(3) effective May 1, 1986, amending the fourth sentence by— 
(A) amending the proviso to clause (2) to read as follows: 
": Provided, That the amount of such excess shelter expense 
deduction shall not exceed $147 a month in the forty-eight 
contiguous States and the District of Columbia, and shall 
not exceed, in Alaska, Hawaii, Guam, and the Virgin Is-
lands of the United States, $256, $210, $179, and $109 a 
month, respectively, adjusted on October 1, 1986, and on 
each October 1 thereafter, to the nearest lower dollar incre-
ment to reflect changes in the shelter (exclusive of home-
owners' costs and maintenance and repair component of 
shelter costs), fuel, and utilities components of housing 
costs in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics, as appro-
priately adjusted by the Bureau of Labor Statistics after 
consultation with the Secretary, for the twelve months 
ending the preceding June 30,"; 
(B) in clause (1), striking out "the same as" and all that 
follows through "clause (2) of this subsection", and insert-
ing in lieu thereof "$160 a month"; 
(C) striking out ", or (2)" and inserting in lieu thereof 
"and (2)"; and 
(D) striking out ", or (3)" and all that follows down to the 
period at the end thereof; and 
(4) after the seventh sentence, inserting the following: "If a 
State agency elects to use a standard utility allowance that 
reflects heating or cooling costs, it shall be made available to 
households receiving a pa3anent, or on behalf of which a pay-
ment is made, under the Low-Income Home Energy Assistance 
Act of 1981 (42 U.S.C. 8621 et seq.) or other similar energy 
assistance program, provided that the household still incurs 
out-of-pocket heating or cooling expenses. A State agency may 
use a separate standard utility allowance for households on 
behalf of which such payment is made, but may not be required 
to do so. A State agency not electing to use a separate allow-
ance, and making a single standard utility allowance available 
to households incurring heating or cooling expenses (other than 
households described in the sixth sentence of this subsection) 
may not be required to reduce such allowance due to the 
provision (direct or indirect) of assistance under the Low-Income 
Home Energy Assistance Act of 1981. For purposes of the food 
stamp program, assistance provided under the Low-Income 
Home Energy Assistance Act of 1981 shall be considered to be 
prorated over the entire heating or cooling season for which it 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1571 
was provided. A State agency shall allow a household to switch 
between any standard utility allowance and a deduction based 
on its actual utility costs at the end of any certification period 
and up to one additional time during each twelve-month 
period. . 
INCOME FROM SELF-EMPLOYMENT 
SEC. 1512. Section 5(fXlXA) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(fXlXA)) is amended by adding at the end thereof the following: 
"Notwithstanding the preceding sentence, if the averaged amount 
does not accurately reflect the household's actual monthly cir-
cumstances because the household has experienced a substantial 
increase or decrease in business earnings, the State agency shall 
calculate 
the 
self-employment 
income based 
on 
anticipated 
earnings.". 
RETROSPECTIVE BUDGETING AND MONTHLY REPORTING SIMPUFICATION 
SEC. 1513. (a) Section 5(fK2) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(fK2)) is amended by— 
(1) amending subparagraph (A) to read as follows: 
"(A) Household income for— 
"(i) migrant farmworker households, and 
"(ii) households— 
"(I) that have no earned income, and 
"(ID in which all adult members are elderly or dis-
abled members, 
shall be calculated on a prospective basis, as provided in para-
graph (3XA)."; 
(2) in subparagraph (B)— 
(A) striking out "(i)"; 
(B) inserting "the first sentence o f after "under" the 
first place it appears; and 
(C) striking out "(ii)" and all that follows through "this 
Act,"; and 
(3) striking out subparagraph (C) and inserting in lieu thereof 
the following: 
"(C) Except as provided in subparagraphs (A) and (B), household 
income for households that have earned income and for households 
that include any member who has recent work history shall be 
calculated on a retrospective basis as provided in paragraph (3XB). 
"(D) Household income for all other households may be calculated, 
at the option of the State agency, on a prospective basis as provided 
in paragraph (3XA) or on a retrospective basis as provided in para-
graph (3XB).". 
(b) Section 6(cXl) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(cXl)) is amended by— 
(1) amending the first sentence to read as follows: "State 
agencies shall require households with respect to which house-
hold income is determined on a retrospective basis under sec-
tion 5(fK2XC) of this Act to file periodic reports of household Supra. 
circumstances in accordance with standards prescribed by the 
Secretary, except that a State agency may, with the prior 
approval of the Secretary, select categories of households 
(including all such households) that may report at specified less 
frequent intervals on a showing by the State agency, which is 
satisfactory to the Secretary, that to require households in such 
99 STAT. 1572 
PUBLIC LAW 99-198—DEC. 23, 1985 
categories to report monthly would result in unwarranted 
expenditures for administration of this subsection."; and 
(2) inserting after the second sentence the following: "State 
agencies may require households, other than households with 
respect to which household income is required by section 
Ante, p. 1571. 
5(fK2XA) to be calculated on a prospective basis, to file periodic 
reports of household circumstances in accordance with the 
standards prescribed by the Secretary under the preceding 
provisions of this paragraph.". 
RESOURCES UMITATION 
SEC. 1514. Section 5(g) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(g)) is amended by— 
Effective date. 
(1) effective May 1, 1986, in the first sentence, striking out 
"$1,500, or, in the case of a household consisting of two or more 
persons, one of whom is age 60 or over, if its resources exceed 
$3,000" and inserting in lieu thereof "$2,000, or, in the case of a 
household which consists of or includes a member who is 60 
years of age or older, if its resources exceed $3,000"; 
(2) in the second sentence— 
(A) inserting "and inaccessible resources" after "relating 
to licensed vehicles"; and 
Real property. 
(B) after "physically disabled household member" insert-
ing "guid any other property, real or personal, to the extent 
that it is directly related to the maintenance or use of such 
vehicle"; and 
(3) adding at the end thereof the following: "The Secretary 
shall exclude from financial resources the value of a burial plot 
for each member of a household.". 
DISASTER TASK FORCE 
SEC. 1515. Section 5(hX2) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(hX2)) is amended to read as follows: 
"(2) The Secretary shall— 
"(A) establish a Food Stamp Disaster Task Force to assist 
States in implementing and operating the disaster program and 
the regular food stamp program in the disaster area; and 
"(B) if the Secretary, in the Secretary's discretion, determines 
that it is cost-effective to send members of the Task Force to the 
disaster area, the Secretary shall send them to such area as 
soon as possible after the disaster occurs to provide direct 
assistance to State and local officials.". 
EUGIBIUTY DISQUAUFICATIONS 
Ante, p. 1571. 
SEC. 1516. Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) 
is amended by— 
(1) in the first sentence of subsection (dXD— 
Prohibition. 
(A) striking out "no household shall be eligible for assist-
ance under this Act if it includes a" and inserting in lieu 
thereof "(A) no person shall be eligible to participate in the 
food stamp program who is"; 
(B) by striking out "eighteen" in the matter preceding 
clause (i) of the first sentence and inserting in lieu thereof 
"sixteen"; 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1573 
(C) striking out all that follows "(iii)" through "days; or 
(iv)"; and 
(D) inserting before the period at the end thereof the Prohibition, 
following: "; and (B) no household shall be eligible to 
participate in the food stamp program (i) if the head of the 
household is a physically and mentally fit person between 
the ages of sixteen and sixty and such individual refuses to 
do any of those acts described in clause (A) of this sentence, 
or (ii) if the head of the household voluntarily quits any job 
without good cause, but, in such case, the period of ineli-
gibility shall be ninety days"; 
(2) adding at the end of subsection (dXD the following: "Any 
period of ineligibility for violations under this par£igraph shall 
end when the household member who committed the violation 
complies with the requirement that has been violated. If the 
household member who committed the violation leaves the 
household during the period of ineligibility, such household 
shall no longer be subject to sanction for such violation and, if it 
is otherwise eligible, may resume participation in the food 
stamp program, but any other household of which such person 
thereafter becomes the head of the household shall be ineligible 
for the balance of the period of ineligibility."; 
(3) in subsection (dX2) by— 
(A) striking out "or" at end of clause (D); 
(B) inserting before the period at the end thereof the 
following: "; or (F) a person between the ages of sixteen and 
eighteen who is not a head of a household or who is 
attending school, or enrolled in an employment training 
program, on at least a half-time basis"; and 
(4) inserting at the end of clause (2) of subsection (e) the 
following: "or is an individual who is not assigned to or placed 
in an institution of higher learning through a program under 
the Job Training Partnership Act,"; and 
29 use 1501 
(5) in clause (2) of subsection (f)— 
"^ote. 
(A) striking out "section 203(aX7)" and "(8 U.S.C. 
1153(aX7))" in subclause (D) and inserting in lieu thereof 
"sections 207 and 208" and "(8 U.S.C. 1157 and 1158)", 
respectively; 
(B) striking out "because of persecution" and all that 
follows through "natural calamity" in subclause (D); 
(C) striking out "because of the judgment of the Attorney 
General" and all that follows in subclause (F) through 
"political opinion". 
EMPLOYMENT AND TRAINING PROGRAM 
SEC. 1517. (a) Section 6(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(d)) is amended by— 
(1) amending clause (AXii) of parsigraph (1) to read as follows: 
"(ii) refuses without good cause to participate in an employ-
ment and training program under paragraph (4), to the extent 
required under paragraph (4), including any resisonable employ-
ment requirements as are prescribed by the State sigency in 
accordance with paragraph (4), and the period of ineligibility 
shall be two months;"; and 
(2) adding at the end thereof the following: 
99 STAT. 1574 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
42 use 602. 
Workfare. 
7 use 2029. 
Environmental 
protection. 
Safety. 
"(4XA) Not later than April 1, 1987, each State agency shall 
implement an employment and training program designed by the 
State agency and approved by the Secretary for the purpose of 
assisting members of households participating in the food stamp 
program in gaining skills, training, or experience that will increase 
their ability to obtain regular employment. 
"(B) For purposes of this Act, an 'employment and training pro-
gram' means a program that contains one or more of the following 
components: 
"(i) Job search programs with terms and conditions com-
parable to those prescribed in subparagraphs (A) and (B) of 
section 402(aX35) of part A of title IV of the Social Security Act, 
except that the State agency shall have no obligation to incur 
costs exceeding $25 per participant per month, as provided in 
subparagraph (BXvi), and the State agency shall retain the 
option to apply employment requirements prescribed under this 
clause to program applicants at the time of application. 
"(ii) Job search training programs that include, to the extent 
determined appropriate by the State agency, reasonable job 
search training and support activities that may consist of jobs 
skills assessments, job finding clubs, training in techniques for 
employability, job placement services, or other direct training 
or support activities, including educational programs, deter-
mined by the State agency to expand the job search abilities or 
employability of those subject to the program. 
(iii) Workfare programs operated under section 20. 
"(iv) Programs designed to improve the employability of 
household members through actual work experience or train-
ing, or both, and to enable individuals employed or trained 
under such programs to move promptly into regular public or 
private employment. An employment or training experience 
program established under this clause shall— 
"(I) limit employment experience assignments to projects 
that serve a useful public purpose in fields such as health, 
social services, environmental protection, urban and rural 
development and redevelopment, welfare, recreation, public 
facilities, public safety, and day care; 
"(II) to the extent possible, use the prior training, ex-
perience, and skills of the participating member in making 
appropriate 
employment 
or 
training 
experience 
assignments; 
"(III) not provide any work that has the effect of replac-
ing the emplo)rment of an individual not participating in 
the emplo3rment or training experience program; and 
"(IV) provide the same benefits and working conditions 
that are provided at the job site to employees performing 
comparable work for comparable hours, 
"(v) As approved by the Secretary, other programs, projects, 
and experiments, such as a supported work program, aimed an 
accomplishing the purpose of the employment and training 
program. 
"(C) The State agency may provide that participation in an 
employment and training program may supplement or supplant 
other employment-related requirements imposed on those subject to 
the projgram. 
"(DXi) Each State agency may exempt from any requirement for 
participation in any program under this paragraph categories of 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1575 
household members to which the appUcation of such participation 
requirement is impracticable as applied to such categories due to 
factors such as the availability of work opportunities and the cost-
effectiveness of the employment requirements. In making such a 
determination, the State agency may designate a category consisting 
of all such household members residing in a specific area of the 
State. Each State may exempt, with the approval of the Secretary, 
members of households that have participated in the food stamp 
program 30 days or less. 
"(ii) Each State agency may exempt from any requirement for 
participation individual household members not included in any 
category designated as exempt under clause (i) but with respect to 
whom such participation is impracticable because of personal cir-
cumstances such as lack of job readiness and employability, the 
remote location of work opportunities, and unavailability of child 
care. 
"(iii) Any exemption of a category or individual under this 
subparagraph shall be periodically evaluated to determine whether, 
on the basis of the factors used to make a determination under 
clauses (i) or (ii), the exemption continues to be valid. Such evalua-
tions shall occur no less often than at each certification or 
recertiflcation in the case of exemptions under clause (ii). 
"(E) Each State agency shall establish requirements for participa-
tion by individuals not exempt under subparagraph (D) in one or 
more emplo3nnent and training programs under this paragraph, 
including the extent to which any individual is required to partici-
pate. Such requirements may vary among participants. 
"(FXi) The total hours of work in an employment and training Prohibition, 
program carried out under this paragraph required of members of a 
household, together with the hours of work of such members in any 
program carried out under section 20, in any month collectively may 
not exceed a number of hours equal to the household's allotment for 
such month divided by the higher of the applicable State minimum 
wage or Federal minimum hourly rate under the Fair Labor Stand-
ards Act of 1938. 
"(ii) The total hours of participation in such program required of 
any member of a household, individually, in any month, together 
with any hours worked in another program carried out under 
section 20 and any hours worked for compensation (in cash or in 
kind) in any other capacity, shall not exceed one hundred and 
twenty hours per month. 
"(GXi) The State agency may operate any program component 
under this paragraph in which individuals elect to participate. 
"(ii) The State agency shall permit, to the extent it determines 
practicable, individuals not subject to requirements imposed under 
subparagraph (E) or who have complied, or are in the process of 
complying, with such requirements to participate in any program 
under this paragraph. 
"(H) The State agency shall reimburse participants in programs 
carried out under this paragraph, including those participating 
under subparagraph (G), for the actual costs of transportation, and 
other actual costs, that are reasonably necessary and directly re-
lated to participation in the program, except that the State agency 
may limit such reimbursement to each participant to $25 per month. 
"(I) The Secretary shall promulgate guidelines that (i) enable 
State, agencies, to the maximum extent practicable, to design and 
operate an employment and training program that is compatible 
7 use 2029. 
29 use 201. 
Prohibition. 
Transportation. 
Indians. 
99 STAT. 1576 
PUBLIC LAW 99-198—DEC. 23, 1985 
and consistent with similar programs operated within the State, and 
(ii) ensure, to the maximum extent practicable, that employment 
and training programs are provided for Indians on reservations. 
"(JXi) For any fiscal year, the Secretary shall establish perform-
ance standards for each State that, in the case of persons who are 
subject to emplojonent requirements under this section and who are 
not exempt under subparagraph (D), designate the minimum 
percentages (not to exceed 50 percent through September 30, 1989) 
of such persons that State agencies shall place in programs under 
this paragraph. Such standards need not be uniform for all the 
States, but may vary among the several States. The Secretary shall 
consider the cost to the States in setting performance standards and 
the degree of participation in progrsuns under this paragraph by 
exempt persons. 
"(ii) In making any determination as to whether a State agency 
has met a performance standard under clause (i), the Secretary 
shall— 
"(I) consider the extent to which persons have elected to 
participate in programs under this paragraph; 
"(II) consider such factors as placement in unsubsidized 
emplojonent, increases in earnings, and reduction in the 
number of persons participating in the food stamp program; and 
"(III) consider other factors determined by the Secretary to be 
related to emplojmient and training, 
"(iii) The Secretary shall vary the performance stamdards estab-
lished under clause (i) according to differences in the characteristics 
of persons required to participate and the type of progrgim to which 
the standard is applied. 
"(iv) The Secretary may delay establishing performance standards 
for up to 18 months after national implementation of the provisions 
of this paragraph, in order to baSe performance standards on State 
agency experience in implementing this paragraph. 
"(KXi) The Secretary shall ensure that State agencies comply with 
7 use 2020 note, the requirements of this paragraph and section ll(eX22). 
"(ii) I
f
^ the Secretary determines that a State agency has failed, 
without good cause, to comply with such a requirement, including 
any failure to meet a performance standard under subparagraph (J), 
the Secretary may withhold from such State, in accordance with 
7 use 2025. 
section 16 (a), (c), and (h), such funds as the Secretary determines to 
be appropriate, subject to administrative and judicial review under 
7 use 2023. 
section 14. 
"(L) The facilities of the State public employment offices and 
agencies operating programs under the Job Training Partnership 
29 use 1501 
Act may be used to find emplo3rment and training opportunities for 
note. 
household members under the programs under this paragraph.". 
0)) Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is 
amended by— 
(1) striking out "and" at the end of paragraph (20); 
(2) striking out the period at the end of paragraph (21) and 
inserting in lieu thereof "; and"; and 
(3) adding at the end thereof the following: 
"(22) the plans of the State agency for canying out employ-
Ante, pp. 1572, 
ment and training programs under section 6(dX4), including the 
1573. 
nature and extent of such prc^ams, the geographic areas and 
households to be covered under such program, and the basis, 
including any cost information, for exemptions of categories and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1577 
Ante, pp. 
1573. 
Transportation. 
Prohibition. 
individuals and for the choice of employment and training 
program components reflected in the plans.". 
(c) Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is 
amended by adding at the end thereof the following: 
"(hXD The Secretary shall allocate among the State agencies in 
each fiscal year, from funds appropriated for such fiscal year under 
section 18(aXl), the amount of $40,000,000 for the fiscal year ending 
September 30, 1986, $50,000,000 for the fiscal year ending Septem-
ber 30, 1987, $60,000,000 for the fiscal year ending September 30, 
1988, and $75,000,000 for each of the fiscal years ending September 
30, 1989 and September 30, 1990, to carry out the employment and 
training program under section 6(dX4), except as provided in para-
graph (3), during such fiscal year. 
"(2) If, in carrjdng out such program during such fiscal year, a 
State agency incurs costs that exceed the amount allocated to the 
State agency under paragraph (1), the Secretary shall pay such 
State agency an amount equal to 50 per centum of such additional 
costs, subject to the first limitation in paragraph (3). 
"(3) The Secretary shall also reimburse each State agency in an 
amount equal to 50 per centum of the total amount of payments 
made or costs incurred by the State agency in connection with 
transportation costs and other expenses reasonably necessary and 
directly related to participation in an emplo)anent and training 
program under section 6(dX4), except that such total amount shall 
not exceed an amount representing $25 per participant per month 
and such reimbursement shall not be made out of funds allocated 
under paragraph (1). 
"(4) Funds provided to a State agency under this subsection may Prohibition 
be used only for operating an emplo)mient and training program 
under section 6(dX4), and may not be used for carrying out other 
provisions of the Act. 
"(5XA) The Secretary shall monitor the employment and training 
programs carried out by State agencies under section 6(dX4) to 
measure their effectiveness in terms of the increase in the numbers 
of household members who obtain emplojmient and the numbers of 
such members who retain such employment as a result of their 
participation in such employment and training programs. 
"(B) The Secretary shall, not later than Jginuary 1, 1989, report to 
the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate on the effectiveness of such employment and training 
programs.". 
(d) Subsection (b) of section 20 of such Act (7 U.S.C. 2029(b)) is 
amended to read as follows: 
"Ot)Xl) A household member shall be exempt from workfare 
requirements imposed under this section if such member is— 
"(A) exempt from section 6(dXl) as the result of clause (B), (C), 
(D), (E), or (F) of section 6(dX2); 
"(B) at the option of the operating agency, subject to and 
currently actively and satisfactorily participating at least 20 
hours a week in a work training program required under title 
IV of the Social Security Act (42 U.S.C. 601 et seq.); 
"(C) mentally or physically unfit; 
"(D) under sixteen years of age; 
"(E) sixty years of age or older; or 
1572, 
Workfare. 
99 STAT. 1578 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(F) a parent or other caretaker of a child in a household in 
which another member is subject to the requirements of this 
section or is employed fuUtime. 
"(2XA) Subject to subparagraphs (B) and (C), in the case of a 
household that is exempt from work requirements imposed under 
this Act as the result of participation in a community work experi-
ence prc^am established under section 409 of the Social Security 
Act (42 U.S.C. 609), the maximum number of hours in a month for 
which all members of such household may be required to participate 
in such progrsun shall equal the residt obtained by dividing— 
"(i) the amount of assistance paid to such household for such 
42 use 601. 
month under title IV of such Act, together with the value of the 
food stamp allotment of such household for such month; by 
"(ii) the higher of the Federal or State minimum wage in 
effect for such month. 
Prohibition. 
"(B) In no event may any such member be required to participate 
in such prc^am more than 120 hours per month. 
"(C) For the purpose of subparagraph (AXi), the value of the food 
stamp allotment of a household for a month shall be determined in 
accordance with r^ulations governing the issuance of an allotment 
to a household that contains more members than the number of 
members in an assistance unit established under title IV of such 
Act.". 
STAGGERING OF COUPON ISSUANCE 
SEC. 1518. Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) 
is amended by adding at the end thereof the following: 
"(hXD The State agency may implement a procedure for stagger-
ing the issuance of coupons to eligible households throughout the 
entire month: Provided, That the procedure ensures that, in the 
transition period from other issuance procedures, no eligible house-
hold experiences an interval between coupon issuances of more than 
40 days, either through regular issuances by the State agency or 
through supplemental issuances. 
"(2) For any eligible household that applies for participation in 
the food stamp program during the last fifteen days of a month and 
is issued benefits within that period, coupons shall be issued for the 
first full month of participation by the the eighth day of the first full 
month of participation.". 
ALTERNATIVE MEANS OF COUPON ISSUANCE 
SEC. 1519. Section 7(gXl) of the Food Stamp Act of 1977 (7 U.S.C. 
2016(gXl)) is amended by striking out "may" in the matter preceding 
clause (A) and inserting in lieu thereof "shall". 
SIMPUFIED APPUCATIONS AND STANDARDIZED BENEFITS 
SEC. 1520. Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) 
is amended by adding at the end thereof the following new 
subsection: 
"(eXD The Secretary may permit not more than five statewide 
projects (upon the request of a State) and not more than five projects 
m political subdivisions of States (upon the request of a State or 
political subdivision) to operate a pn^am under which a household 
shall be considered to have satisfied the application requirements 
Ante, p. 1567. 
prescribed under section 5(a) and the income and resource require-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1579 
ments prescribed under subsections (d) through (g) of section 5 if 
such household— 
"(A) includes one or more members who are recipients of— 
"(i) aid to families with dependent children under part A 
of title IV of the Social Security Act (42 U.S.C. 601 et seq.); 
"(ii) supplemental security income under title XVI of 
such Act (42 U.S.C. 1381 et seq.); or 
"(iii) medical assistance under title XIX of such Act (42 
U.S.C. 1396 et seq.); and 
"(B) has an income that does not exceed the applicable income 
standard of eligibility described in section 5(c). 
"(2) Except as provided in paragraph (3), a State or political 
subdivision that elects to operate a program under this subsection 
shall base the value of an allotment provided to a household under 
subsection (a) on— 
"(AXi) the size of the household; and 
"(iiXI) benefits paid to such household under a State plan for 
aid to families with dependent children approved under part A 
of title IV of the Social Security Act; or 
"(II) the income standard of eligibility for medical assistance 
under title XIX of such Act; or 
"(B) at the option of the State or political subdivision, the 
standard of need for such size household under the programs 
referred to in clause (AXii). 
"(3) The Secretary shall adjust the value of allotments received by 
households under a program operated under this subsection to 
ensure that the average allotment by household size for households 
participating in such program and receiving such aid to families 
with dependent children, such supplemental security income, or 
such medical assistance, as the case may be, is not less than the 
average allotment that would have been provided under this Act but 
for the operation of this subsection, for each category of households, 
respectively, in a State or political subdivision, for any period during 
which such program is in operation. 
"(4) The Secretary shall evaluate the impact of programs operated 
under this subsection on recipient households, administrative costs, 
and error rates. 
"(5) The administrative costs of such programs shall be shared in 
accordance with section 16. 
"(6) In implementing this section, the Secretary shall consult with 
the Secretary of Health and Human Services to ensure that to the 
extent practicable, in the case of households participating in such 
programs, the processing of applications for, and determinations of 
eligibility to receive, food stamp benefits are simplified and are 
unified with the processing of applications for, and determinations 
of eligibility to receive, benefits under such titles of the Social 
Security Act (42 U.S.C. 601 et seq.).". 
Ante, pp. 1569-
1572. 
Ante, p. 1577. 
DISCLOSURE OF INFORMATION SUBMITTED BY RETAIL STORES 
SEC. 1521. Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 
2018(c)) is amended by inserting before the period at the end of the 
second sentence the following: ", except that such information may 
be disclosed to and used by State agencies that administer the 
special supplemental food program for women, infants and children, 
authorized under section 17 of the Child Nutrition Act of 1966, for 
Women. 
Children. 
Regulations. 
42 u s e 1786. 
99 STAT. 1580 
PUBLIC LAW 99-198—DEC. 23, 1985 
purposes of administering the provisions of that Act and the regula-
tions issued under that Act". 
CREDIT UNIONS 
SEC. 1522. Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 2019), 
Ante, p. 1566. 
as amended by section 1501, is amended by— 
(1) inserting ", or which are insured under the Federal Credit 
12 use 1751. 
Union Act and have retail food stores or wholesale food con-
cerns in their field of membership" after "Federal Savings and 
Loan Insurance Corporation" the first place it appears; and 
(2) inserting "or the Federal Credit Union Act" after "Federal 
Savings and Loan Insurance Corporation" the second place it 
appears. 
CHARGES FOR REDEMPTION OF COUPONS 
SEC. 1523, (a) Section 10 of the Food Stamp Act of 1977 (7 U.S.C. 
2019), as amended by sections 1501 and 1522, is amended by adding 
at the end thereof the following: "No financial institution may 
impose on or collect from a retail food store a fee or other charge for 
the redemption of coupons that are submitted to the financial 
institution in a manner consistent with the requirements, other 
than any requirements relating to cancellation of coupons, for the 
presentation of coupons by financial institutions to the Federal 
Reserve banks.". 
Regulations. 
Q3) The Secretary of Agriculture, in consultation with the Board of 
Governors of the Federal Reserve System, shall issue regulations 
implementing the amendment made by subsection (a). 
Prohibition. 
Ante, p. 1566; 
supra. 
HOURS OF OPERATION 
SEC. 1524. Section 16(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
Ante. p. 1577. 
2025(bXl)) is amended by inserting ", including standards for the 
periodic review of the hours that food stamp offices are open during 
the day, week, or month to ensure that employed individuals are 
adequately served by the food stamp program," after "States". 
CERTIFICATION OF INFORMATION 
SEC. 1525. Section ll(eX2) of the Food Stamp Act of 1977 (7 U.S.C. 
Ante, p. 1566; 
2020(eX2)) is further amended by adding at the end thereof the 
infra. 
following: "One adult member of a household that is applying for a 
coupon allotment shall be required to certify in writing, under 
penalty of perjury, the truth of the information contained in the 
application for the allotment;". 
Supra. 
FRAUD DETECTION 
SEC. 1526. Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(e)), as amended by sections 1517 and 1525, is further amended 
by adding at the end thereof the following new paragraph: 
"(23) in a project area in which 5,000 or more households 
participate in the food stamp program, for the establishment 
and operation of a unit for the detection of fraud in the food 
stamp program, including the investigation, and assistance in 
the prosecution, of such fraud; and". 
.,„.,,..,, .a«».4; .. .^ ...^ 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1581 
VERIFICATION 
SEC. 1527. Section ll(eX3) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(eX3)) is amended by— 
Ante, pp. 1566, 
(1) striking out "only" after "verification"; 
1580. 
(2) inserting ", household size (in any case such size is 
questionable)," after "Act)"; and 
(3) striking out "any factors" and all that follows through "by 
the Secretary" and inserting in lieu thereof "such other eligi-
bility factors as the State agency determines are necessary". 
PHOTOGRAPHIC IDENTIFICATION CARDS 
SEC. 1528. Section ll(eX16) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(eX16)) is amended b y -
C
D striking out "last sentence" and inserting in lieu thereof 
"fourth sentence"; 
(2) inserting "and would be cost effective" after "integrity"; 
(3) striking out the semicolon at the end thereof and inserting 
in lieu thereof a period; and 
(4) adding at the end thereof the following: "The State agency 
may permit a member of a household to comply with this 
paragraph by presenting a photographic identification card 
used to receive assistance under a welfare or public assistance 
program;". 
EUGIBILITY OF THE HOMELESS 
SEC. 1529. Section ll(eX2) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(eX2)), as amended by section 1525, is amended b y -
C
D striking out the semicolon at the end thereof and inserting 
in lieu thereof a period; and 
(2) adding at the end thereof the following: "The State agency 
shall provide a method of certif3dng and issuing coupons to 
eligible households that do not reside in permanent dwellings or 
who do not have fixed mailing addresses. In carrying out the 
preceding sentence, the State agency shall take such steps as 
are necessary to ensure that participation in the food stamp 
program is limited to eligible households.". 
EXPANDED FOOD AND NUTRITION EDUCATION PROGRAM 
SEC. 1530. Section 11(f) of the Food Stamp Act of 1977 (7 U.S.C. 
2020(f)) is amended by adding at the end thereof the following: 
"State agencies shall encourage food stamp progreun participants to 
participate in the expanded food and nutrition education program 
conducted under section 3(d) of the Act of May 8, 1914 (7 U.S.C. 
343(d)), commonly known as the Smith-Lever Act and any program Ante, p. 1557. 
established under sections 1584 through 1588 of the Food Security 
Act of 1985. At the request of personnel of such education program. Post, pp. 1596, 
State agencies, wherever practicable, shall allow personnel and 1^97. 
information materials of such education program to be placed in 
food stamp offices.". 
99 STAT. 1582 
PUBLIC LAW 99-198—DEC. 23, 1985 
FOOD STAMP PROGRAM INFORMATION AND SIMPUFIED APPLICATION AT 
SOCIAL SECURITY ADMINISTRATION OFFICES 
Effective date. 
SEC. 1531. (a) Effective October 1, 1986, clause (2) of the first 
sentence of section ll(i) of the Food Stamp Act of 1977 (7 U.S.C. 
Ante, p. 1568. 
2020(i)), as amended by section 1531, is amended by— 
(1) inserting "applicants for or" after "members are"; 
(2) striking out "permitted" and all that follows through 
"office", and inserting in lieu thereof "informed of the availabil-
ity of benefits under the food stamp program and be assisted in 
making a simple application to participate in such program at 
the social security office". 
Effective date. 
(b) Effective October 1,1986, section ll(j) of the Food Stamp Act of 
1977 (7 U.S.C. 20200')) is amended to read as follows: 
Regulations. 
"OXD Any individual who is an applicant for or recipient of social 
security benefits (under regulations prescribed by the Secretary in 
conjunction with the Secretary of Health and Human Services) shall 
be informed of the availability of benefits under the food stamp 
program and informed of the availability of a simple application to 
participate in such program at the social security office. 
"(2) The Secretary and the Secretary of Health and Human 
Services shall revise the memorandum of understanding in effect on 
the date of enactment of the Food Security Act of 1985, regarding 
services to be provided in social security offices under this subsec-
tion and subsection (i), in a manner to ensure that— 
"(A) applicants for and recipients of socisd security benefits 
are adequately notified in social security offices that assistance 
may be available to them under this Act; 
"(B) applications for assistance under this Act from house-
holds in which all members are applicants for or recipients of 
supplemental security income will be forwarded imme<hately to 
the State agency in an efficient and timely manner; and 
"(C) the Secretary of Health and Human Services receives 
from the Secretary reimbursement for costs incurred to provide 
such services.". 
Report. 
(c) Not later than April 1,1987, the Secretary of Agriculture shall 
submit a report, to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry of the Senate, describing the nature and extent of the costs 
being incurred by the Secretary of Health and Human Services to 
comply with subsections (i) and (j) of section 11 of the Food Stamp 
Act of 1977, as amended by subsections (a) and (b). 
RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS 
SEC. 1532. (a) Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 
2021) is amended by adding at the end thereof the following: 
Regulations. 
"(eXD In the event any retail food store or wholesale food concern 
that has been disqualified under subsection (a) is sold or the owner-
ship thereof is otherwise transferred to a purchaser or transferee, 
the person or persons who sell or otherwise transfer ownership of 
the retail food store or whol^ale food concern shall be subjected to a 
civil money penalty in an amount established by the Secretary 
through regulations to reflect that portion of the disqualiflcation 
period that has not yet expired. If the retail food store or wholesale 
food concern has been disqualified permanently, the civil money 
penalty shall be double the penalty for a ten-year disqualification 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1583 
Prohibition. 
Post, p. 1585. 
period, as calculated under regulations issued by the Secretary. The 
disqualification period imposed under subsection (b) shall continue 
in effect EIS to the person or persons who sell or otherwise transfer 
ownership of the retail food store or wholesale food concern not-
withstanding the imposition of a civil money penalty under this 
subsection. 
"(2) At any time after a civil money penalty imposed under 
parsigraph (1) has become final under the provisions of section 14(a), 
the Secretary may request the Attorney General to institute a civil 
action against the person or persons subject to the penalty in a 
district court of the United States for any district in which such 
person or persons are found, reside, or transact business to collect 
the penalty and such court shall have jurisdiction to hear and decide 
such action. In such action, the validity and amount of such penalty 
shall not be subject to review.". 
(b) Section 9(b) of the Food Stamp Act of 1977 (7 U.S.C. 2018(b)) is 
amended by— 
(1) inserting "(1)" after the subsection designation; and 
(2) adding at the end thereof the following new paragraph: 
"(2XA) A buyer or transferee (other than a bona fide buyer or Prohibition 
transferee) of a retail food store or wholesale food concern that has 
been disqualified under section 12(a) may not accept or redeem 
coupons until the Secretary receives full payment of any penalty 
imposed on such store or concern. 
' (B) A buyer or transferee may not, as a result of the sale or 
transfer of such store or concern, be required to furnish a bond 
under section 12(d).". 
Ante, p. 1582. 
UABILTTY FOR OVERISSUANCE OF COUPONS 
SEC. 1533. Section 13(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2022(a)) is amended by— 
(1) inserting "(1)" after the subsection designation; and 
(2) adding at the end thereof the following new paragraph: 
"(2) Each adult member of a household shall be jointly and 
severally liable for the value of any overissueince of coupons.". 
COLLECTION OF CLAIMS 
SEC. 1534. Section 13(bXlXB) of the Food Stamp Act of 1977 (7 
U.S.C. 2022(bXlXB)) is amended by— 
(1) striking out "may" and inserting in lieu thereof "shall"; 
and 
(2) inserting ", unless the State agency demonstrates to the 
satisfaction of the Secretary that such other means are not cost 
effective" before the period at the end thereof 
FOOD STAMP INTERCEPT OF UNEMPLOYMENT BENEFITS 
SEC. 1535. (a) Section 13 of the Food Stamp Act of 1977 (7 U.S.C. 
2022) is amended by adding at the end thereof the following new 
subsection: 
"(cXD As used in this subsection, the term 
'uncollected 
overissuance' means the amount of an overissuance of coupons, as 
determined under subsection (bXD, that has not been recovered 
pursuant to subsection (bXD. 
"(2) A State agency may determine on a periodic b£Lsis, from 
information supplied pursuant to section 3(b) of the Wagner-Peyser 
99 STAT. 1584 
PUBLIC LAW 99-198—DEC. 23, 1985 
Act (29 U.S.C. 49b(b)), whether an individual receiving compensation 
under the State's unemplo5mient compensation law (including 
amounts payable pursuant to an agreement under a Federal un-
emplo)mient compensation law) owes an uncollected overissuance. 
(3) A State agency may recover an uncollected overissuance— 
"(A)by-
"(i) entering into an agreement with an individual de-
scribed in paragraph (2) under which specified amounts will 
be withheld from unemployment compensation otherwise 
pavable to the individual; and 
'(ii) furnishing a copy of the agreement to the State 
agency administering the unemployment compensation 
law; or 
"(B) in the absence of an agreement, by obtaining a writ, 
order, summons, or other similar process in the nature of 
garnishment from a court of competent jurisdiction to re-
quire the withholding of amounts from the unemplo5mient 
compensation.". 
(bXD Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)), 
Ante, p. 1580. 
as amended by section 1526, is amended by adding at the end thereof 
the following new paragraph: 
"(24) at the option of the State, for procedures necessary to 
obtain payment of uncollected overissuance of coupons from 
Ante, p. 1583. 
unemployment compensation pursuant to section 13(c).". 
(2) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 49b(b)) is 
amended by— 
(A) striking out "or" the second place it appears and inserting 
in lieu thereof a comma; and 
(B) inserting after "such Act," the following: "or of a State 
agency charged with the administration of the food stamp 
program in a State under the Food Stamp Act of 1977 (7 U.S.C. 
2011etseq.),". 
(3) Section 303(d) of the Social Security Act (42 U.S.C. 503(d)) is 
amended by— 
(A) redesignating paragraphs (2) and (3) as paragraphs (3) and 
(4), respectively; and 
(B) inserting after paragraph (1) the following new paragraph: 
"(2)(A) For purposes of this paragraph, the term 'unemployment 
compensation 
means any unemployment compensation payable 
under the State law (including amounts payable pursuant to an 
agreement under a Federal unemployment compensation law). 
"(B) The State agency charged with the administration of the 
State law— 
"(i) may require each new applicant for unemployment com-
pensation to disclose whether the applicant owes an uncollected 
overissuance (as defined in section 13(cXl) of the Food Stamp 
Ante, p. 1583. 
Act of 1977) of food stamp coupons, 
"(ii) may notify the State food stamp agency to which the 
uncollected overissuance is owed that the applicant has been 
determined to be eligible for unemployment compensation if the 
applicant discloses under clause (i) that the applicant owes an 
uncollected overissuance and the applicant is determined to be 
so eligible, 
"(iii) may deduct and withhold from any unemployment com-
pensation otherwise payable to an individual— 
"(I) the amount specified by the individual to the State 
agency to be deducted and withheld under this clause, 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1585 
"(11) the amount (if any) determined pursuant to an 
agreement submitted to the State food stamp agency under 
section 13(cX3XA) of the Food Stamp Act of 1977, or 
Ante, p. 1583. 
"(Ill) any amount otherwise required to be deducted and 
withheld from the unemployment compensation pursuant 
to section 13(cX3XB) of such Act, and 
"(iv) shall pay any amount deducted and withheld under 
clause (iii) to the appropriate State food stamp agency. 
"(C) Any amount deducted and withheld under subparagraph 
(BXiii) shall for all purposes be treated as if it were paid to the 
individual as unemployment compensation and paid by the individ-
ual to the State food stamp ^ency to which the uncollected 
overissuance is owed as repayment of the individual's uncollected 
overissuance. 
"(D) A State food stamp agency to which an uncollected 
overissuance is owed shall reimburse the State agency charged with 
the administration of the State unemployment compensation law for 
the administrative costs incurred by the State agency under this 
paragraph that are attributable to repayment of uncollected 
overissuance to the State food stamp agency to which the uncol-
lected overissuance is owed.". 
(cXD The proviso of the first sentence of section 16(a) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(a)) is amended by striking out 
"section 13(bXl) of this Act" and inserting in lieu thereof "subsec-
tions (bXD and (c) of section 13". 
(2) The first sentence of section 18(e) of such Act (7 U.S.C. 2027(e)) Post, p. 1589. 
is amended by striking out "section 13(b) of this Act" and inserting 
in lieu thereof "subsections (b) and (c) of section 13". 
ADMINISTRATIVE AND JUDICIAL REVIEW 
SEC. 1536. The last sentence of section 14(a) of the Food Stamp Act 
of 1977 (7 U.S.C. 2023(a)) is amended bv— 
(1) striking out "an application ' and inserting in lieu thereof 
"on application"; and 
(2) striking out "showing of irreparable injury" and inserting 
in lieu thereof "consideration by the court of the applicant's 
likelihood of prevailing on the merits and of irreparable 
injury". 
STATE AGENCY UABIUTY, QUALITY CONTROL, AND AUTOMATIC DATA 
PROCESSING 
SEC. 1537. (a) Effective with respect to the fiscal year beginning Effective date. 
October 1, 1985, and each fiscal year thereafter, section 16(d) of the 
Food Stamp Act of 1977 (7 U.S.C. 2025) is amended by— 
(1) in paragraph (2XA), inserting before the period at the end 
thereof the following: 
"less any amount payable as a result of the use by the State 
agency of correctly processed information received from an 
automatic information exchange system made available by any 
Federal department or agency', and 
(2) adding at the end thereof the following: 
"(6) To facilitate the implementation of paragraphs (2) and (3), 
each State agency shall submit to the Secretary expeditiously data 
regarding its operations in each fiscal year sufficient for the Sec-
retary to establish the payment error rate for the State agency for 
99 STAT. 1586 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1585. 
5 u s e app. 
Federal 
Register, 
publication. 
Report. 
Report. 
such fiscal year and determine the amount for which the State 
agency will be liable for such fiscal year under paragraphs (2) and 
(3). The Secretary shall make a determination for a fiscal year, and 
notify the State agency of such determination, within nine months 
following the end of each fiscal year. The Secretary shall initiate 
efforts to collect the amount owed by the State agency as a claim 
established under paragraphs (2) and (3) for a fiscal year, subject to 
the conclusion of any formal or informal appeal procedure and 
administrative or judicial review under section 14 (as provided for in 
paragraph (5)), before the end of the fiscal year following such fiscal 
year.'. 
(b) Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is 
amended by adding at the end thereof the following new subsection: 
"(oXl) The Secretary shall develop, after consultation with, and 
with the assistance of, an advisory group of State agencies appointed 
by the Secretary without regard to the provisions of the Federal 
Advisory Committee Act, a model plan for the comprehensive auto-
mation of data processing and computerization of information sys-
tems under the food stamp program. The plan shall be developed 
and made available for public comment through publication of the 
proposed plan in the Federal Register not later than October 1,1986. 
The Secretary shall complete the plan, taking into consideration 
public comments received, not later than February 1, 1987. The 
elements of the plan may include intake procedures, eligibility 
determinations and calculation of benefits, verification procedures, 
coordination with related Federal and State programs, the issuance 
of benefits, reconciliation procedures, the generation of notices, and 
program reporting. In developing the plan, the Secretary shall take 
into account automated data processing and information systems 
already in existence in States and shall provide for consistency with 
such systems. 
"(2) Not later than October 1, 1987, each State agency shall 
develop and submit to the Secretary for approval a plan for the use 
of an automated data processing and information retrieval system to 
administer the food stamp program in such State. The State plan 
shall take into consideration the model plan developed by the 
Secretary under paragraph (1) and shall provide time frames for 
completion of various phases of the State plan. If a State agency 
already has a sufficient automated data processing and information 
retrieval system, the State plan may, subject to the Secretary's 
approval, reflect the existing State system. 
(3) Not later than April 1, 1988, the Secretary shall prepare and 
submit to Congress an evaluation of the degree and sufficiency of 
each State's automated data processing and computerized informa-
tion systems for the administration of the food stamp program, 
including State plans submitted under paragraph (2). Such report 
shall include an analysis of additional steps needed for States to 
achieve effective and cost-efficient data processing and information 
systems. The Secretary, thereafter, shall periodically update such 
report. 
(4) Based on the Secretary's findings in such report submitted 
under paragraph (3), the Secretary may require a State agency, as 
necessary to rectify identified shortcomings in the administration of 
the food stamp program in the State, except where such direction 
would displace State initiatives already under way, to take specified 
steps to automate data processing systems or computerize informa-
tion systems for the administration of the food stamp program in 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1587 
the State if the Secretary finds that, in the absence of such systems, 
there will be program accountability or integrity problems that will 
substantially affect the administration of the food stamp program in 
the State. 
"(5XA) Subject to subparagraph (B), in the case of a plan for an 
automated data processing and information retrieval system submit-
ted by a State agency to the Secretary under paragraph (2), such 
State agency shall— 
"(i) commence implementation of its plan not later than 
October 1,1988; and 
"(ii) meet the time frames set forth in the plan. 
"(B) The Secretary shall extend a deadline imposed under 
subparagraph (A) to the extent the Secretary deems appropriate 
based on the Secretary's finding of a good faith effort of a State 
agency to implement its plan in accordance with subparagraph 
(A).". 
(c) Section 11(g) of the Food Stamp Act of 1977 (7 U.S.C. 202(Xg)) is 
amended by— 
(1) inserting "the State plan for automated data processing 
submitted pursuant to subsection (oX2) of this section," after Ante, p. 1586. 
"pursuant to subsection (d) of this section,", and 
(2) striking out "16(a) and 16(c)" and inserting in lieu thereof 
"16(a), 16(c), and 16(g)". 
QUALITY CONTROL STUDIES AND PENALTY MORATORIUM 
7 u s e 2025 
note. 
SEC. 1538. (aXlXA) The Secretary of Agriculture (hereinafter re-
ferred to in this section as the "Secretary") shall conduct a study of 
the quality control system used for the food st£mip program estab-
lished under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.). 
(B) The study shall— 
(i) examine how best to operate such system in order to obtain 
information that will allow the State agencies to improve the 
quality of administration; and 
(ii) provide reasonable data on the basis of which Federal 
funding may be withheld for State agencies with excessive 
levels of erroneous pajmients. 
(2XA) The Secretary shall also contract with the National Acad- Contracts 
emy of Sciences to conduct a concurrent independent study for the 
purpose described in paragraph (1). 
(B) For purposes of such study, the Secretary shall provide to the 
National Academy of Sciences any relevant data available to the 
Secretary at the onset of the study and on an ongoing basis. 
(3) Not later than 1 year eifter the date of enactment of this Act, 
the Secretary and the National Academy of Sciences shall report the 
results of their respective studies to the Congress. 
(bXl) During the 6-month period beginning on the date of enact-
ment of this Act (hereinafter in this section referred to as the 
"moratorium period"), the Secretary shall not impose any reduc-
tions in pajnnents to State agencies pursuant to section 16 of the 
Food Stamp Act of 1977 (7 U.S.C. 2025). 
(2) During the moratorium period, the Secretary and the State 
agencies shall continue to— 
(A) operate the quality control systems in effect under the 
Food Stamp Act of 1977; and 
(B) calculate error rates under section 16 of such Act. 
Ante, pp. 1577, 
1580, 1585; post, 
p. 1588. 
99 STAT. 1588 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
7 u s e 2011 
note. 
Regulations. 
Ante, pp. 1577, 
1580, 1585. 
Report. 
(cXD Not later than 18 months after the date of enactment of this 
Act, the Secretary shall publish regulations that shall— 
(A) restructure the quality control system used under the 
Food Stamp Act of 1977 to the extent the Secretary determines 
to be appropriate, taking into account the studies conducted 
under subsection (a); and 
(B) establish, taking into account the studies conducted under 
subsection (a), criteria for adjusting the reductions that shall be 
made for quarters prior to the implementation of the restruc-
tured quality control system so as to eliminate reductions for 
those quarters that would not be required if the restructured 
quality control system had been in effect during those quarters. 
(2) Beginning 2 years after the date of the enactment of this Act 
the Secretary shall— 
(A) implement the restructured quality control system; and 
(B) reduce payments to State agencies— 
(i) for quarters after implementation of such system in 
accordance with the restructured quality control system; 
and 
(ii) for quarters before implementation of such system, as 
provided under the regulations described in paragraph 
dXB)." 
GEOGRAPHICAL ERROR-PRONE PROFILES 
SEC. 1539. Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) 
is amended by adding at the end thereof the following new 
subsection: 
"(iXD The Department of Agriculture may use quality control 
information made available under this section to determine which 
project areas have pa5mient error rates (as defined in subsection 
(dXD) that impair the integrity of the food stamp program. 
"(2) The Secretary may require a State agency to carry out new or 
modified procedures for the certification of households in areas 
identified under paragraph (1) if the Secretary determines such 
procedures would improve the integrity of the food stamp program 
and be cost effective. 
"(3) Not later than 12 months after the date of enactment of the 
Food Security Act of 1985, and each 12 months thereafter, the 
Secretary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that lists project areas 
identified under paragraph (1) and describes any procedures re-
quired to be carried out under paragraph (2).". 
Ante, p. 818. 
Repeal. 
7 u s e 2026. 
PILOT PROJECTS 
SEC. 1540. (a) Section 17(bXl) of the Food Stamp Act of 1977 (7 
U.S.C. 2026(bXl)) is amended by striking out "December 31, 1985" 
the last place it appears and inserting in lieu thereof "October 1, 
1990". 
(b) Section 17(d) of the Food Stamp Act of 1977 is repealed. 
(c) Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2226) is 
amended by redesignating subsections (e) £ind (f) as subsections (d) 
and (e). 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1589 
AUTHORIZATION CEILING; AUTHORTTY TO REDUCE BENEFITS 
SEC. 1541. Section 18 of the Food Stamp Act of 1977 (7 tJ.S.C. 2027) 
is amended by— 
(1) inserting, after the first sentence of subsection (aXD, the 
following: 
"To carry out the provisions of this Act, there are hereby authorized 
to te appropriated not in excess of $13,037,000,000 for the fiscal year 
ending September 30, 1986; not in excess of $13,936,000,000 for the 
fiscal year ending September 30, 1987; not in excess of 
$14,741,000,000 for the fiscal year ending September 30,1988; not in 
excess of $15,435,000,000 for the fiscal year ending September 30, 
1989; and not in excess of $15,970,000,000 for the fiscal year ending 
September 30,1990."; and 
(2) in the second sentence of subsection 0)), striking out "the 
limitation set herein," and inserting in lieu thereof "the appro-
priation amount authorized in subsection (aXD,". 
TRANSFER OF FUNDS 
SEC. 1542. (a) Section 18 of the Food Stamp Act of 1977 (7 U.S.C. 
2027) is amended by adding at the end thereof the following new 
subsection: 
"(f) No funds appropriated to carry out this Act may be trans- Prohibition. 
ferred to the Office of the Inspector (leneral, or the Office of the 
General Counsel, of the Department of Agriculture.". 
(b) The amendment made by this section shall become effective on Effective date. 
October 1,1986. 
7 U
S
C 2027 note. 
PUERTO RICO BLOCK GRANT 
SEC. 1543. Section 19 of the Food Stamp Act of 1977 (7 U.S.C. 2028) Ante, p. 818. 
is amended by— 
(1) striking out "for each fiscal year" in subsection (aXlXA) 
and inserting in lieu thereof "for the fiscal year ending Septem-
ber 30, 1986, $852,750,000 for the fiscal year ending September 
30, 1987, $879,750,000 for the fiscal year ending September 30, 
1988, $908,250,000 for the fiscal year ending September 30,1989, 
and $936,750,000 for the fiscal year ending September 30, 
1990,"; 
(2) striking out "noncash" in subsection (aXlXA); and 
(3) striking out "a single agency which shall be" in clause (i) 
of subsection Ot)XlXA) and inserting in lieu thereof "the agency 
or agencies directly." 
Subtitle B—Commodity Distribution Provisions 
TRANSFER OF SECTION 32 COMMODITIES 
SEC. 1561. Section 32 of the Act entitled "An Act to amend the 
Agricultural Adjustment Act, and for other purposes", approved 
August 24, 1935 (7 U.S.C. 612c), is amended by adding at the end 
thereof the following new sentence: "A public or private nonprofit 
organization that receives agricultural commodities or the products 
thereof under clause (2) of the second sentence may transfer such 
commodities or products to another public or private nonprofit 
organization that agrees to use such commodities or products to 
provide, without cost or waste, nutrition assistance to individuals in 
low-income groups.". 
99 STAT. 1590 
PUBLIC LAW 99-198—DEC. 23, 1985 
Aged persons. 
Women. 
Children and 
youth. 
Aged persons. 
Aged persons. 
7 u s e 612c note. 
Repeal. 
COMMODITY DISTRIBUTION PROGRAMS 
SEC. 1562. (a) Section 4 of the Agriculture and Consumer Protec-
tion Act of 1973 (7 U.S.C. 612c note) is amended b y -
C
D striking out "1982, 1983, 1984, and 1985" in the first 
sentence of subsection (a) and inserting in heu thereof "1986, 
1987,1988,1989, and 1990"; and 
(2) in subsection (b), striking out "under 18 years of age" and 
inserting in lieu thereof "18 years of age and under". 
(b) Section 5(a) of the Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note) is amended b y -
C
D striking out ", which projects shall operate no longer than 
two years, and" in clause (1) and inserting in lieu thereof a 
semicolon; 
(2) striking out "1982 through 1985" in clause (2) and insert-
ing in lieu thereof "1986 through 1990". 
(c) Section 5 of the Agriculture and Consumer Protection Act of 
1973 (7 U.S.C. 612c note) is amended by adding at the end thereof 
the following new subsections: 
"(f) The Secretary shall, in any fiscal year, approve applications of 
additional sites for the program in areas in which the program 
currently does not operate to the full extent that this can be done 
within the appropriations available for the program for the fiscal 
year and without reducing actual participation levels (including 
participation of elderly persons under subsection (g)) in areas in 
which the program is in effect. 
"(g) If a local agency that administers the commodity supple-
mental food program determines that the amount of funds made 
available to the agency to carry out this section exceeds the amount 
of funds necessary to provide assistance under such program to 
women, infants, and children, the agency, with the approval of the 
Secretary, may permit low-income elderly persons (as defined by the 
Secretary) to participate in and be served by such program.". 
(d) Notwithstanding any other provision of law, in implementing 
the commodity supplemented food program under section 4 of the 
Agriculture and Consumer Protection Act of 1973, the Secretary of 
Agriculture shall allow agencies distributing agricultural commod-
ities to low-income elderly people under such programs on the date 
of enactment of this Act to continue such distribution at levels no 
lower than existing caseloads. 
(eXD Section 209 of the Temporary Emergency Food Assistance 
Act of 1983 (7 U.S.C. 612c note) is repealed. 
(2) Clause (2) of section 5(a) of the Agriculture and Consumer 
Protection Act of 1973 (7 U.S.C. 612c note) is amended by striking 
out "amount appropriated for the provision of commodities to State 
agencies" and inserting in lieu thereof "sum of (A) the amount 
appropriated for the commodity supplemental food program and (B) 
the value of all additional commodities donated by the Secretary to 
State and local agencies that are provided without charge or credit 
for distribution to program participants". 
EMERGENCY FEEDING ORGANIZATIONS—DEFINITIONS 
SEC. 1563. Section 201A of the Temporary Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 612c note) is amended by inserting, before 
the semicolon at the end of paragraph (1), the following: "(including 
the activities and projects of charitable institutions, food banks. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1591 
hunger centers, soup kitchens, and similar pubUc or private non-
profit eligible recipient agencies) hereinafter in this title referred to 
as 'emergency feeding organizations' ". 
TEMPORARY EMERGENCY FOOD ASSISTANCE PROGRAM 
SEC. 1564. (a) Section 202 of the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note) is amended by adding at 
the end thereof the following new subsections: 
"(c) In addition to any commodities described in subsection (a), in 
carr3dng out this Act, the Secretary may use agricultural commod-
ities and the products thereof made available under clause (2) of the 
second sentence of section 32 of the Act entitled *An Act to amend 
the Agricultural Adjustment Act, and for other purposes', approved 
August 24,1935 (7 U.S.C. 612c). 
"(d) Commodities made available under this Act shall include, but 
not be limited to, dairy products, wheat or the products thereof, rice, 
honey, and cornmeal. 
"(e) Effective April 1,1986, the Secretary shall submit semiannu- Effective date. 
ally to the Committee on Agriculture of the House of Representa- Report, 
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report on the types and amounts of commodities made 
avEiilable for distribution ujider this Act.". 
(b) Section 212 of the Temporary Emergency Food Assistance Act 7 use 6i2c note. 
of 1973 is amended to read as follows: 
PROGRAM TERMINATION 
"SEC. 212. Except for section 207, this Act shall terminate on 
September 30,1987." 
7 u s e 612c note. 
REPEAL OF PROVISIONS RELATING TO THE FOOD SECURITY WHEAT 
RESERVE 
SEC. 1565. (a) Section 202 of the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note) is amended by— 
(1) striking out the subsection designation for subsection (a); 
and 
(2) striking out subsection (b). 
(b) The second sentence of section 203A of the Temporary Emer-
gency Food Assistance Act of 1983 (7 U.S.C. 612c note) is amended by 
striMng out ", except that wheat from the Food Security Wheat 
Reserve may not be used to pay such costs". 
Prohibitions. 
REPORT ON COMMODITY DISPLACEMENT 
SEC. 1566. Section 203C(a) of the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note) is amended by adding at 
the end thereof the following: "The Secretary shall submit to Con-
gress each year a report as to whether and to what extent such 
displacements or substitutions are occurring.". 
DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
PROJECTS; PROCESSING AGREEMENTS 
SEC. 1567. (a) Section 1114(a) of the Agriculture and Food Act of 
1981 (7 U.S.C. 1431e) is amended by adding at the end thereof the 
following new sentence: "Commodities made available under this 
99 STAT. 1592 
PUBLIC LAW 99-198—DEC. 23, 1985 
section shall include, but not be limited to, dairy products, wheat or 
the products thereof, rice, honey, and cornmeal. . 
(b) Section 1114(a) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e) is amended b y -
C
D inserting "(1)" after "(a)"; 
(2) adding, at the end thereof, the following: 
"(2XA) Effective through June 30, 1987, whenever a commodity is 
made available without charge or credit under any nutrition pro-
gram administered by the Secretary of Agriculture, the Secretary 
shall encourage consumption of such commodity through agree-
ments with private companies under which the commodity is 
reprocessed into end-food products for use by eligible recipient 
agencies. The expense of reprocessing shall be paid by such eligible 
recipient agencies. 
"(B) To maintain eligibility to enter into, and to continue, any 
agreement with the Secretary of Agriculture under subparagraph 
(A), a private company shall annually settle all accounts with the 
Secretary and any appropriate State agency r^arding commodities 
processed under such agreements.". 
Repeal. 
(c) Section 203 of the Temporary Emergency Food Assistance Act 
of 1983 (7 U.S.C. 612c note) is repealed. 
STATE COOPERATION 
Rural areas. 
SEC. 1568. (a) Section 203B(b) of the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note) is amended by adding at 
the end thereof the following new sentence: "Each State agency 
shall encourage distribution of such commodities in rural areas. . 
(b) Section 203B of the Temporary Emergency Food Assistance Act 
of 1983 (7 U.S.C. 612c note) is amended by addmg at the end thereof 
the following: 
"(d) Each State agency receiving commodities under this title 
may— 
"(1) enter into cooperative agreements with State agencies of 
other States for joint provision of such commodities to an 
emergency feeding organization that serves needy persons in a 
single geographical area part of which is situated in each of 
such States; or 
"(2) transfer such commodities to any such emergency feeding 
organization in the other State under such agreement.". 
AUTHORIZATION FOR FUNDING AND RELATED PROVISIONS 
SEC. 1569. (a) Section 204 of the Temporary Emergency Food 
Assistance Act of 1983 (7 U.S.C. 612c note) is amended by— 
(1) redesignating subsection (c) as subsection (d); and 
(2) after subsection (b), inserting the following: 
"(cXD There are authorized to be appropriated $50,000,000 for 
each of the fiscal years ending September 30, 1986, and September 
30, 1987, for the Secretary to make available to the States for State 
and local payments for costs associated with the distribution of 
commodities by emergency feeding organizations under this title. 
Funds appropriated under this paragraph for any fiscal year shall 
be allocated to the States on an advance basis, dividing such funds 
among the States in the same proportions as the commodities 
distributed under this title for such fiscal year are divided among 
the States. If a State agency is unable to use all of the funds so 
O r':V' 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1593 
Reports. 
Prohibition. 
allocated to it, the Secretary shall reallocate such unused funds 
among the other States. 
"(2) Each State shedl make available to emergency feeding 
organizations in the State not less than 20 per centum of the funds 
provided as authorized in paragraph (1) that it has been allocated 
for a fiscal year, as necessary to pay for, or provide advance pay-
ments to cover, the direct expenses of the emergency feeding 
organizations for distributing commodities to needy persons, but 
only to the extent such expenses are actually so incurred by such 
organizations. As used in this paragraph, the term 'direct expenses' 
includes costs of transporting, storing, handling, and distributing 
commodities incurred after they are received by the organization; 
costs associated with determinations of eligibility, verification, and 
documentation; costs involved in publishing announcements of 
times and locations of distribution; and costs of recordkeeping, 
auditing, and other administrative procedures required for partici-
pation in the program under this title. If a State makes a payment, 
using State funds, to cover direct expenses of emergency feeding 
organizations, the amount of such payment shall be counted toward 
the amount a State must make available for direct expenses of 
emergency feeding organizations under this paragraph. 
"(3) States to which funds are allocated for a fiscal year under this 
subsection shall submit financial reports to the Secretary, on a 
regular basis, as to the use of such funds. No such funds may be used 
by States or emergency feeding organizations for costs other than 
those involved in covering the expenses related to the distribution of 
commodities by emergency feeding organizations. 
"(4XA) Except as provided in subparagraph (B), effective January Effective date. 
1, 1987, to be eligible to receive funds under this subsection, a State 
shall provide in cash or in kind (according to procedures approved 
by the Secretary for certifying these in-kind contributions) from 
non-Federal sources a contribution 
equal to the 
difference 
between— 
"(i) the amount of such funds so received; and 
"(ii) any part of the amount allocated to the State and paid by 
the State— 
"(I) to emergency feeding organizations; or 
"(II) for the direct expenses of such organizations; 
for use in carrying out this title. 
"(BXi) Except as provided in clause (ii), subparagraph (A) shall 
apply to States beginning on January 1,1987. 
"(ii) If the legislature of a State does not convene in regular 
session before January 1, 1987, paragraph (1) shall apply to such 
State beginning on October 1,1987. 
"(C) Funds allocated to a State under this section may, upon State 
request, be allocated before States satisfy the matching requirement 
specified in subparsigraph (A), based on the estimated contribution 
required. The Secretary shall periodically reconcile estimated and 
actual contributions and adjust allocations to the State to correct for 
overpayments and underpayments. 
"(5) States may not charge for commodities made available to 
emergency feeding organizations, and may not pass on to such 
organizations the cost of any matching requirements, under this 
Act.". 
Prohibition. 
99 STAT. 1594 
PUBLIC LAW 99-198—DEC. 23, 1985 
REAUTHORIZATIONS 
SEC. 1570. Section 210 of the Temporary Emergency Food Assist-
ance Act of 1983 (7 U.S.C. 612c note) is amended by— 
(1) in subsection (c)— 
(A) striking out "the fiscal years ending September 30, 
1984, and September 30,1985" and inserting in lieu thereof 
"the period beginning October 1, 1983, and ending Septem-
ber 30,1987"; 
(B) striking out "prior to the beginning of the fiscal year 
ending September 30, 1985" and inserting in lieu thereof 
"as early as feasible but not later than the beginning of the 
fiscal year ending September 30,1987"; and 
(C) striking out "second twelve months" and inserting in 
lieu thereof "such fiscal year"; and 
(2) adding at the end thereof the following: 
Regulations. 
"(d) The regulations issued by the Secretary under this section 
shall include provisions that set standards with respect to liability 
for commodity losses under the program under this title in situa-
tions in which there is no evidence of negligence or fraud, and 
conditions for payment to cover such losses. Such provisions shall 
take into consideration the special needs and circumstances of 
emergency feeding organizations". 
REPORT 
7 use 612c note. 
SEC. 1571. Not later than April 1, 1987, the Secretary of Agri-
culture shall report to Congress on the activities of the program 
conducted under the Temporary Emergency Food Assistance Act of 
1983. Such report shall include information on— 
(1) the volume and types of commodities distributed under the 
program; 
(2) the types of State and local agencies receiving commodities 
for distribution under the program; 
(3) the populations served under the program and their 
characteristics; 
Transportation. 
(4) the Federal, State, and local costs of commodity distribu-
tion operations under the program (including transportation, 
storage, refrigeration, handling, distribution, and administra-
tive costs); and 
(5) the amount of Federal funds provided to cover State and 
local costs under the program. 
Subtitle C—Nutrition and Miscellaneous Provisions 
Effective date. 
SCHOOL LUNCH PILOT PROJECT 
SEC. 1581. (a) As used in this section, the term "eligible school 
district" means a school district that on the date of enactment of 
this Act, is participating in the pilot project study provided for 
under the last proviso of the paragraph under the heading "CHILD 
NUTRITION PROGRAMS" in title III of the Act entitled "An Act making 
appropriations for Agriculture, Rural Development, and Related 
Agencies programs for the fiscal year ending September 30, 1981, 
and for other purposes", approved December 15, 1980 (Public Law 
96-258; 94 Stat. 3113). 
(b) Effective through the school year ending June 30, 1987, the 
Secretary shall permit an eligible school district to receive assist-
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1595! 
ance to carry out the school lunch program operated in the district 
in the form of, in lieu of commodities, all cash assistance or all 
commodity letters of credit assistance. 
(c) If an eligible school district elects to receive assistance in the 
form of all cash assistance or all commodity letters of credit assist-
ance under subsection (a), the Secretary shall provide bonus 
commodities to the district only in the form of commodities, to the 
same extent as bonus commodities are provided to other school 
districts participating in the school lunch program. 
GLEANING OF FIELDS 
SEC. 1582. (a) Congress finds that— 
(1) food banks, soup kitchens, and other emergency food 
providers help needy persons seeking food assistance at no cost 
to the Government; 
(2) gleaning is a partnership between food producers and 
nonprofit organizations through which food producers permit 
members of such organizations to collect grain, vegetables, and 
fruit which have not been harvested and distribute such items 
to programs which provide food to needy individuals; 
(3) support of gleaning to supply food to the poor is part of the 
Judeo-Christian heritage as set out in the Book of Leviticus: 
"When you reap the harvests of your land, do not reap to the 
very edges of your field or gather the gleanings of your harvest. 
Do not go over your vineyard a second time or pick up the 
grapes that have fallen. Leave them for the poor and the 
alien."; 
(4) a 1977 General Accounting Office analysis estimated that 
during the 1974 harvest 60,000,000 tons of grain, vegetables, and 
fruit, valued at $5,000,000,000, were unharvested; 
(5) the diets of millions of people in the United States could 
have been supplemented with such lost grain, vegetables, and 
fruit; 
(6) a number of State and local governments have enacted 
"Good Samaritan" laws which limit the liability of food donors 
and provide an incentive for food contributions; and 
(7) numerous civil, religious, charitable, and other nonprofit 
organizations throughout the country have begun gleaning pro-
grams to harvest such food items and channel them to the 
needy in the United States. 
(b) It is the sense of Congress that— 
(1) food producers who permit gleaning of their fields and 
civic, religious, charitable, and other nonprofit organizations 
which glean fields and distribute the resulting harvest to help 
the needy should be commended for their efforts; and 
(2) State and local governments should be encouraged to enact 
tax and other incentives designed to increase the number of 
food producers who permit gleaning of their fields and the 
number of shippers who donate, or charge reduced rates for, 
trgmsportation of gleaned produce. 
State and local 
governments. 
State and local 
governments. 
Transportation. 
ISSUANCE OF RULES 
SEC. 1583. Not later than April 1, 1987, the Secretary shall issue 
rules to carry out the amendments made by this title. 
7 u s e 2011 note. 
99 STAT. 1596 
PUBLIC LAW 99-198—DEC. 23, 1985 
NUTRITION EDUCATION FINDINGS 
7 use 3175a. 
SEC. 1584. Congress finds that individuals in households eligible to 
7 use 2011 note, participate in programs under the Food Stamp Act of 1977 and other 
low-income individuals, including those residing in rural areas, 
should have greater access to nutrition and consumer education to 
enable them to use their food budgets, including food assistance, 
effectively and to select and prepare foods that satisfy their nutri-
tional needs and improve their diets. 
7 u s e 3175b. 
Supra; infra; 
post, p. 1597. 
PURPOSE 
SEC. 1585. The purpose of the program provided for under sections 
1584 through 1588 is to expand effective food, nutrition, and 
consumer education services to the greatest practicable number of 
low-income individuals, including those participating in or eligible 
to participate in the programs under the Food Stamp Act of 1977, to 
assist them to— 
(1) increase their ability to manage their food budgets, includ-
ing food stamps and other food assistance; 
(2) increase their ability to buy food that satisfies nutritional 
needs and promotes good health; and 
(3) improve their food preparation, storage, safety, preserva-
tion, and sanitation practices. 
PROGRAM 
7 use 3175c. 
SEC. 1586. The cooperative extension services of the States shall, 
with funds made available under this subtitle, carry out an ex-
panded program of food, nutrition, and consumer education for low-
income individuals in a manner designed to achieve the purpose set 
Supra. 
forth in section 1585. In operating the program, the cooperative 
extension services may use the expanded food and nutrition edu-
cation program, and other food, nutrition, and consumer education 
activities of the cooperative extension services or similar activities 
carried out by them in collaboration with other public or private 
nonprofit agencies or organizations. In carrying out their respon-
sibilities under the program, the cooperative extension services are 
encouraged to— 
(1) provide effective and meaningful food, nutrition, and 
consumer education services to as many low-income individuals 
as possible; 
(2) employ educational methodologies, including innovative 
approaches, that accomplish the purpose set forth in section 
1585; and 
(3) to the extent practicable, coordinate activities carried out 
under the program with the delivery to low-income individuals 
of benefits under food assistance programs. 
ADMINISTRATION 
7 use 3i75d. 
SEC. 1587. (a) The program provided for under section 1586 shall 
Supra. 
be administered by the Secretary of Agriculture through the Exten-
sion Service, in consultation with the Food and Nutrition Service 
and the Human Nutrition Information Service. The Secretary shall 
ensure that the Extension Service coordinates activities carried out 
under this subtitle with the ongoing food, nutrition, and consumer 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1597 
education activities of other agencies of the Department of 
Agriculture. 
(b) The Secretary of Agriculture, not later than April 1,1989, shall Report, 
submit to the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate a report evaluating the effectiveness of the program 
provided for under section 1586. 
Ante, p. 1596. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 1588. (a) There are hereby authorized to be appropriated to 7 use 3i75e. 
carry out sections 1584 through 1588 $5,000,000 for the fiscal year Ante, p. 1596. 
ending September 30, 1986; $6,000,000 for the fiscal year ending 
September 30, 1987; and $8,000,000 for each of the fiscal years 
ending September 30, 1988, September 30, 1989, and September 30, 
1990. 
(b) Any funds appropriated under this section for a fiscal year 
shall be allocated in the manner specified in subparagraphs (A) and 
(B) of section 1425(cX2) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977. 
^ USC 3175. 
(c) Any funds appropriated to carry out sections 1584 through 1588 
shall supplement any other funds appropriated to the Department 
of Agriculture for use by the Department and the cooperative 
extension services of the States for food, nutrition, and consumer 
education for low-income households. 
NUTRITION MONITORING 
SEC. 1589. The Secretary of Agriculture shall— 
(1) in conducting the Department of Agriculture's continuing 
survey of food intakes of individuals and any nationwide food 
consumption survey, include a sample that is representative of 
low-income individuals and, to the extent^racticable, the collec-
tion of information on food purchases and other household 
expenditures by such individuals; 
(2) to the extent practicable, continue to maintain the nutri-
ent data base established by the Department of Agriculture; and 
(3) encourage research by public and private entities relating 
to effective standards, methodologies, and technologies for ac-
curate assessment of the nutritional and dietary status of 
individuals. 
TITLE XVI—MARKETING 
Subtitle A—Beef Promotion and Research Act of 1985 
7 USC 3178a. 
Research and 
development. 
Research and 
development. 
AMENDMENT TO BEEF RESEARCH AND INFORMATION ACT 
SEC. 1601. (a) This section may be cited as the "Beef Promotion Beef Promotion 
and Research Act of 1985". 
(b) Sections 2 through 20 of the Beef Research and Information 
Act (7 U.S.C. 2901-2918) are amended to read as follows: 
"CONGRESSIONAL FINDINGS AND DECLARATION OF POLICY 
"SEC. 2. (a) Congress ^ d s that— 
"(1) beef and beef products are basic foods that are a valuable 
part of human diet; 
and Research 
Act 
of 1985. 
7 USC 2901 note. 
7 USC 2901. 
99 STAT. 1598 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(2) the production of beef and beef products plays a signifi-
cant role in the Nation's economy, beef and beef products are 
produced by thousands of beef producers and processed by 
numerous processing entities, and beef and beef products are 
consumed by millions of people throughout the United States 
and foreign countries; 
"(3) beef and beef products should be readily available and 
marketed efficiently to ensure that the people of the United 
States receive adequate nourishment; 
"(4) the maintenance and expansion of existing markets for 
beef and beef products are vital to the welfare of beef producers 
and those concerned with marketing, using, and producing beef 
products, as well as to the general economy of the Nation; 
"(5) there exist established State and national organizations 
conducting beef promotion, research, and consumer education 
programs that are invaluable to the efforts of promoting the 
consumption of beef and beef products; and 
"(6) beef and beef products move in interstate and foreign 
commerce, and beef and beef products that do not move in such 
channels of commerce directly burden or affect interstate com-
merce of beef and beef products. 
Prohibition. 
"(b) It, therefore, is declared to be the policy of Congress that it is 
in the public interest to authorize the establishment, through the 
exercise of the powers provided herein, of an orderly procedure for 
financing (through assessments on all cattle sold in the United 
States and on cattle, beef, and beef products imported into the 
United States) and canying out a coordinated program of promotion 
and research designed to strengthen the beef industry's position in 
the marketplace and to maintain and expand domestic and foreign 
markets and uses for beef and beef products. Nothing in this Act 
shall be construed to limit the right of individual producers to raise 
cattle. 
"DEFINITIONS^ 
7 use 2902. 
"SEC. 3. For purposes of this Act— 
"(1) the term 'beef means flesh of cattle; 
"(2) the term 'beef products' means edible products produced 
in whole or in part from beef, exclusive of milk and products 
made therefrom; 
"(3) the term 'Board' means the Cattlemen's Beef Promotion 
Post, p. 1599. 
and Research Board established under section 5(1); 
"(4) the term 'cattle' means live domesticated bovine animsds 
regardless of age; 
(5) the term 'Committee' means the Beef Promotion Operat-
ing Committee established under section 5(4); 
(6) the term 'consumer information' means nutritional data 
and other information that will assist consumers and other 
persons in making evaluations and decisions regarding the 
purchasing, preparing, and use of beef and beef products; 
"(7) the term 'Department' means the Department of 
Agriculture. 
"(8) the term 'importer' means any person who imports cattle, 
beef, or beef products from outside the United States; 
"(9) the term 'industry information' means information and 
programs that will lead to the development of new markets, 
marketing strategies, increased efficiency, and activities to en-
hance the image of the cattle industry; 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 15d9 
"(10) The term 'order' means a beef promotion and research 
order issued under section 4. 
Infra. 
"(11) the term 'person' means any individual, group of individ-
uals, partnership, corporation, association, cooperative, or any 
other entity; 
"(12) the term 'producer' means any person who owns or 
acquires ownership of cattle, except that a person shall not be 
considered to be a producer if the person's only share in the 
proceeds of a sale of cattle or beef is a sales commission, 
handling fee, or other service fee; 
"(13) the term 'promotion' means any action, including paid 
advertising, to advance the image and desirability of beef and 
beef products with the express intent of improving the competi-
tive position and stimulating sales of beef and beef products in 
the marketplace; 
"(14) the term 'qualified State beef council' means a beef 
promotion entity that is authorized by State statute or is orga-
nized and operating within a State, that receives voluntary 
contributions and conducts beef promotion, research, and 
consumer information programs, and that is recognized by the 
Board as the beef promotion entity within such State; 
"(15) the term research' means studies testing the effective-
ness of market development and promotion efforts, studies 
relating to the nutritional value of beef and beef products, other 
related food science research, and new product development; 
"(16) the term 'Secretary' means the Secretauy of Agriculture; 
"(17) The term 'State' means each of the 50 States; and 
"(18) the term 'United States' means the several Stat^ and 
the District of (Columbia. 
"ISSUANCE OP ORDERS 
"SEC. 4. (a) During the period beginning on the effective date of 7 use 2903. 
this section and enchng thirty days after receipt of a proposal for a 
beef promotion and research order, the Secretary shall publish such 
proposed order and give due notice and opportunity for public 
comment on such proposed order. Such proposal may be submitted 
by any organization meeting the requirements for certification 
under section 6 or any interested person, including the Secretary. Post, p. 1603. 
"(b) After notice and opportunity for public comment are given, as 
provided for in subsection (a), the Secretary shall issue a beef 
promotion and research order. The order shall become effective not Effective date, 
later than one hundred and twenty days following publication of the 
proposed order. 
"REQUIRED TERMS IN ORDERS 
"SEC. 5. An order issued under section 4(b) shall contain the 7 use 2904. 
following terms and conditions: 
Supra. 
"(1) The order shall provide for the establishment and selec-
tion of a Cattlemen's Beef Promotion and Research Board. 
Members of the Board shall be cattle producers and importers 
appointed by the Secretary from (A) nominations submitted by 
eligible State organizations certified under section 6 (or, if the 
Secretary determines that there is no eligible State organization 
in a State, the Secretary may provide for nominations from 
such State to be made in a different manner), and (B) nomina-
tions submitted by importers under such procedures as the 
99 STAT. 1600 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
Secretary determines appropriate. In determining geographic 
representation for cattle producers on the Board, whole States 
shall be considered as a unit. Each State that has a total cattle 
inventory greater than five hundred thousand head shall be 
entitled to at least one representative on the Board. A State 
that has a total inventory of fewer than 500,000 cattle shall be 
grouped, as far as practicable, with other States each of which 
has a combined total inventory of not less than 500,000 cattle, 
into geographically contiguous units in a manner prescribed in 
the order. A unit may be represented on the Board by more 
than one member. For each additional million head of cattle 
within a unit, such unit shall be entitled to an additional 
member on the Board. The Board may recommend a change in 
the level of inventory per unit necessary for representation on 
the Board and, on such recommendation, the Secretary may 
change the level necessary for representation on the Board. The 
number of members on the Board that represent importers 
shall be determined by the Secretary on a proportional basis, by 
converting the volume of imported beef and beef products into 
live animal equivalencies. 
"(2) The order shall define the powers and duties of the Board, 
which shall be exercised at an annual meeting, and shall in-
clude only the following powers: 
"(A) To administer the order in accordance with its terms 
and provisions. 
"(B) To make rules and regulations to effectuate the 
terms and provisions of the order. 
"(C) To elect members of the Board to serve on the 
Committee. 
"(D) To approve or disapprove budgets submitted by the 
Committee. 
"(E) To receive, investigate, and report to the Secretary 
complaints of violations of the order. 
"(F) To recommend to the Secretary amendments to the 
order. 
In addition, the order shall determine the circumstances under 
which special meetings of the Board may be held. 
"(3) The order shall provide that the term of appointment to 
the Board shall be three years with.no member serving more 
than two consecutive terms, except that initial appointments 
shall be proportionately for one-year, two-year, and three-year 
terms; and that Board members shall serve without compensa-
tion, but shall be reimbursed for their reasonable expenses 
incurred in performing their duties as members of the Board. 
"(4XA) The order shall provide that the Board shall elect from 
its membership ten members to serve on the Beef Promotion 
Operating Committee, which shall be composed of ten members 
of the Board and ten producers elected by a federation that 
includes as members the qualified State beef councils. The 
producers elected by the federation shall be certified by the 
Secretary as producers that are directors of a qualified State 
beef council. The Secretary also shall certify that such directors 
are duly elected by the federation as representatives to the 
Committee. 
"(B) The Committee shall develop plans or projects of pro-
motion and advertising, research, consumer information, and 
industry information, which shall be paid for with assessments 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1601 
collected by the Board. In developing plans or projects, the 
Committee shall— 
"(i) to the extent 
practicable, take into 
account 
similarities and differences between certain beef, beef prod-
ucts, and veal; and 
"(ii) ensure that segments of the beef industry that enjoy 
a unique consumer identity receive equitable and fair treat-
ment under this Act. 
"(C) The Committee shall be responsible for developing and 
submitting to the Board, for its approval, budgets on a fiscal 
year basis of its anticipated expenses and disbursements, includ-
ing probable costs of advertising and promotion, research, 
consumer information, and industry information projects. The 
Board shall approve or disapprove such budgets and, if ap-
proved, shall submit such budget to the Secretary for the Sec-
retary's approval. 
"(D) The total costs of collection of assessments and adminis- Prohibition, 
trative staff incurred by the Board during any fiscal year shall 
not exceed 5 per centum of the projected total assessments to be 
collected by the Board for such fiscal year. The Board shall use, 
to the extent possible, the resources, staffs, and facilities of 
existing organizations. 
"(5) The order shall provide that terms of appointment to the Prohibition. 
Committee shall be one year, and that no person may serve on 
the Committee for more than six consecutive terms. Committee 
members shall serve without compensation, but shall be re-
imbursed for their reasonable expenses incurred in performing 
their duties as members of the Committee. The Committee may 
utilize the resources, staffs, and facilities of the Board and 
industry organizations. An employee of an industry organiza-
tion may not receive compensation for work performed for the 
Committee, but shall be reimbursed from assessments collected 
by the Board for reasonable expenses incurred in performing 
such work. 
"(6) The order shall provide that, to ensure coordination and 
efficient use of funds, the Committee shall enter into contracts 
or agreements for implementing and carrying out the activities 
authorized by this Act with established national nonprofit in-
dustry-governed organizations, including the federation re-
ferred to in paragraph (4), to implement programs of promotion, 
research, consumer information, and industry information. Any 
such contract or agreement shall provide that— 
"(A) the person entering the contract or agreement shall Contracts, 
develop and submit to the Committee a plan or project 
together with a budget or budgets that shows estimated 
costs to be incurred for the plan or project; 
"(B) the plan or project shall become effective on the 
approval of the Secretary; and 
"(C) the person entering the contract or agreement shall 
Contracts. 
keep accurate records of all of ite transactions, account for 
funds received and expended, and make periodic reports to 
the Committee of activities conducted, and such other re-
ports as the Secretary, the Board, or the Committee may 
require. 
"(7) The order shall require the Board and the Committee Records. 
to— 
99 STAT. 1602 
PUBLIC LAW 99-198—DEC. 23, 1985 
Reports. 
Regulations. 
"(A) maintain such books and records, which shall be 
available to the Secretary for inspection and audit, as the 
Secretary may prescribe; 
"(B) prepare and submit to the Secretary, from time to 
time, such reports as the Secretary may prescribe; and 
"(C) account for the receipt and disbursement of all funds 
entrusted to them. 
"(SKA) The order shall provide that each person making 
pajmient to a producer for cattle purchased from the producer 
shall, in the manner prescribed by the order, collect an assess-
ment and remit the assessment to the Board. The Board shall 
use qualified State beef councils to collect such assessments. 
"(B) If an appropriate qualified State beef council does not 
exist to collect an assessment in accordance with paragraph (1), 
such assessment shall be collected by the Board. 
"(C) The order also shall provide that each importer of cattle, 
beef, or beef products shall pay an assessment, in the manner 
prescribed by the order, to the Board. The assessments shall be 
used for pa)nment of the costs of plans and projects, as provided 
for in paragraph (4), and expenses in administering the order, 
including more administrative costs incurred by the Secretary 
after the order has been promulgated under this Act, and to 
establish a reasonable reserve. The rate of assessment pre-
scribed by the order shall be one dollar per head of cattle, or the 
equivalent thereof in the case of imported beef and beef prod-
ucts. A producer who can establish that the producer is partici-
pating in a program of an established qualified State beef 
council shall receive credit, in determining the assessment due 
from such producer, for contributions to such program of up to 
50 cents per head of cattle or the equivalent thereof. There shall 
be only one qualified State beef council in each State. Any 
person marketing from beef from cattle of the person's own 
production shall remit the assessment to the Board in the 
manner prescribed by the order. 
"(9) The order shall provide that the Board, with the approval 
of the Secretary, may invest, pending disbursement, funds col-
lected through assessments only in obligations of the United 
States or any agency thereof, in general obligations of any State 
or any political subdivision thereof, in any interest-bearing 
account or certificate of deposit of a bank that is a member of 
the Federal Reserve System, or in obligations fully guaranteed 
as to principal and interest by the U n i t ^ States. 
"(10) The order shall prohibit any funds collected by the 
Board under the order from being used in any manner for the 
purpose of influencing governmental action or policy, with the 
exception of recommending amendments to the order. 
"(11) The order shall require that each person making pay-
ment to a producer, any person marketing beef from cattle of 
the person s own production directly to consumers, and any 
importer of cattle, beef, or beef products maintain and make 
available for inspection such books and records as may be 
required by the order and file reports at the time, in the 
manner, and having the content prescribed by the order. Such 
information shall be made available to the Secretary as is 
appropriate to the administration or enforcement of this Act, 
the order, or any regulation issued under this Act. In addition, 
the Secretary shall authorize the use of information regarding 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1603 
persons pajdng producers that is accumulated under a law or 
regulation other than this Act or regulations under this Act. 
AH information so obtained shall be kept confidential by all Prohibitions. 
officers and employees of the Department, and only such 
information so obtained as the Secretary deems relevant may be 
disclosed by them and then only in a suit or administrative 
hearing brought at the request of the Secretary, or to which the 
Secretary or any officer of the United States is a party, and 
involving the order. Nothing in this paragraph may be deemed 
to prohibit— 
"(A) the issuance of general statements, based on the 
reports, of the number of persons subject to the order or 
statistical data collected therefrom, which statements do 
not identify the information furnished by any person; or 
"(B) the publication, by direction of the Secretary, of the 
name of any person violating the order, together with a 
statement of the particular provisions of the order violated 
by the person. 
"No information obtained under the authority of this Act 
may be made available to any agency or officer of the United 
States for any purpose other than the implementation of this 
Act and any investigatory or enforcement act necessary for the 
implementation of this Act. Any person violating the provisions 
of this paragraph shall be subject to a fine of not more than 
$1,000, or to imprisonment for not more than one year, or both, 
and if an officer or employee of the Board or the Department, 
shall be removed from office. 
"(12) The order shall contain terms and conditions, not 
inconsistent with the provisions of this Act, as necessary to 
effectuate the provisions of the order. 
"CERTIFICATION OF ORGANIZATIONS TO NOMINATE 
"SEC. 6. (a) The eligibility of any State organization to represent 7 use 2905. 
producers and to participate in the making of nominations under 
section 5(1) shall be certified by the Secretary. The Secretary shall Ante, p. 1599. 
certify any State organization that the Secretary deter^nes meets 
the eligibility criteria established under subsection (b) and such 
determination as to eligibility shall be final. 
"(b) A State cattle association or State general farm organization 
may be certified as described in subsection (a) if such association or 
organization meets all of the following eligibility criteria: 
"(1) The association or organization's total paid membership 
is comprised of at least a majority of cattle producers or the 
association or organization's total paid membership represents 
at least a majority of the cattle producers in the State. 
"(2) The association or organization represents a substantial 
number of producers that produce a substantial number of 
cattle in the State. 
"(3) The association or organization has a history of stability 
and permanency. 
^ 
"(4) A primary or overriding purpose of the association or 
organization is to promote the economic welfare of cattle 
producers. 
"(c) Certification of State cattle associations and State general Report, 
farm organizations shall be based on a factual report submitted by 
the association or organization involved. 
99 STAT. 1604 
PUBLIC LAW 99-198—DEC. 23, 1985 
"(d) If more than one State organization is certified in a State (or 
Ante^ p. 1599. 
in a unit referred to in section 5(1)), such organizations may caucus 
to determine any of such State's (or such unit's) nominations under 
section 5(1). 
"REQUIREMENT OF REFERENDUM 
7 use 2906. 
"SEC. 7. (a) For the purpose of determining whether the initial 
order shall be continued, not later than 22 months after the issuance 
of the order (or any earlier date recommended by the Board), the 
Secretary shall conduct a referendum among persons who have been 
producers or importers during a representative period, as deter-
mined by the Secretary. The order shall be continued only if the 
Secretary determines that it has been approved by not less than a 
majority of the producers voting in the referendum who, during a 
representative period as determined by the Secretary, have been 
engaged in the production of cattle. If continuation of the order is 
not approved by a majority of those voting in the referendum, the 
Secretary shall terminate collection of assessments under the order 
within six months after the Secretary determines that continuation 
of the order is not favored by a majority voting in the referendum 
and shall terminate the order in an orderly manner as soon as 
practicable after such determination. 
"(b) After the initial referendum, the Secretary may conduct a 
referendum on the request of a representative group comprising 10 
per centum or more of the number of cattle producers to determine 
whether cattle producers favor the termination or suspension of the 
order. The Secretary shall suspend or terminate collection of assess-
ments under the order within six months after the Secretary deter-
mines that suspension or termination of the order is favored by a 
majority of the producers voting in the referendum who, during a 
representative period as determined by the Secretary, have beien 
engaged in the production of cattle and shall terminate or suspend 
the order in an orderly manner as soon as practicable after such 
determination. 
"(c) The Department shall be reimbursed from assessments col-
lected by the Board for any expenses incurred by the Department in 
connection with conducting any referendum under this section, 
except for the salaries of Government employees. Any referendum 
conducted under this section shall be conducted on a date estab-
lished by the Secretary, whereby producers shall certify that they 
were engaged in the production of cattle during the representative 
period and, on the same day, shall be provided an opportunity to 
vote in the referendum. Each referendum shall be conducted at 
county extension offices, and there shall be provision for an ab-
sentee mail ballot on request. 
"REFUNDS 
7 use 2907. 
"SEC. 8. (a) During the period prior to the approval of the continu-
ation of an order pursuant to the referendum required under section 
Supra. 
7(a), subject to subsection (f), the Board shall— 
"(1) establish an escrow account to be used for assessment 
refunds; 
"(2) place funds in such account in accordance with subsection 
(b); and 
"(3) refund assessments to persons in accordance with this 
section. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1605 
'•(b) Subject to subsection (f), the Board shall place in such ac-
count, from assessments collected under section 7 during the period Ante, p. 1604. 
referred to in subsection (a), an amount equal to the product ob-
tained by multiplying— 
"(1) the total amount of assessments collected under section 7 
during such period; by 
"(2) the greater of— 
"(A) the average rate of assessment refunds provided to 
producers under State beef promotion, research, and 
consumer information programs financed through producer 
assessments, as determined by the Board; or 
"(B) 15 percent. 
"(c) Subject to subsections (d), (e), and (f) and notwithstanding any 
other provision of this subtitle, any person shall have the right to 
demand and receive from the Board a one-time refund of all assess-
ments collected under section 7 from such person during the period 
referred to in subsection (a) if such person— 
"(1) is responsible for paying such assessment; and 
"(2) does not support the program established under this Act. 
"(d) Such demand shall be made in accordance with regulations. Regulations. 
on a form, and within a time period prescribed by the Board. 
"(e) Such refund shall be made on submission of proof satisfactory 
to the Board that the producer, person, or importer— 
"(1) paid the sissessment for which refund is sought; and 
"(2) did not collect such assessment from another producer, 
person, or importer. 
"(fKD If the amount in the escrow account required to be estab-
lished by subsection (a) is not sufficient to refund the total amount 
of assessments demanded by all eligible persons under this section 
and the continuation of an order is approved pursuant to the 
referendum required under section 10(a), the Board shall— 
Post, p. 1606. 
"(A) continue to place in such account, from assessments 
collected under section 5, the amount required under subsection Ante, p. 1599. 
(b), until such time as the Board is able to comply with subpara-
graph (B); and 
"(B) provide to all eligible persons the total amount of assess-
ments demanded by all eligible producers. 
"(2) If the amount in the escrow account required to be established 
by subsection (a) is not sufficient to refund the total amount of 
assessments demanded by all eligible persons under this section and 
the continuation of an order is not approved pursuant to the ref-
erendum required under section 7(a), the Board shall prorate the 
amount of such refunds among all eligible persons who demand such 
refund. 
"ENFORCEMENT 
"SEC. 9. (a) If the Secretary believes that the administration and 
7 use 2908. 
enforcement of this Act or an order would be adequately served by 
such procedure, following an opportunity for an administrative 
hearing on the record, the Secretary may— 
"(1) issue an order to restrain or prevent a person from 
violating an order; and 
"(2) assess a civil penalty of not more than $5,000 for violation 
of such order. 
"(b) The district courts of the United States are vested with 
Regulations. 
jurisdiction specifically to enforce, and to prevent and restrain a 
99 STAT. 1606 
PUBLIC LAW 99-198—DEC. 23, 1985 
person from violating, an order or regulation made or issued under 
this Act. 
"(c) A civil action authorized to be brought under this section shall 
be referred to the Attorney General for appropriate action. 
"INVESTIGATIONS; POWER TO SUBPOENA AND TAKE OATHS AND 
AFFIRMATIONS; AID OF COURTS 
Regulations. 
"SEC. 10. The Secretary may make such investigations as the 
7 use 2909. 
Secretary deems necessary for the effective administration of this 
Act or to determine whether any person subject to this Act has 
engaged or is about to engage in any act that constitutes or will 
constitute a violation of this Act, the order, or any rule or regulation 
issued under this Act. For the purpose of such investigation, the 
Secretary may administer oaths and affirmations, subpoena wit-
nesses, compel their attendance, take evidence, and require the 
production of any records that are relevant to the inquiry. The 
attendance of witnesses and the production of records may be 
required from any place in the United States. In case of contumacy 
by, or refusal to obey a subpoena to, any person, the Secretary may 
invoke the aid of any court of the United States within the jurisdic-
tion of which such investigation or proceeding is carried on, or 
where such person resides or carries on business, in requiring the 
attendance and testimony of the person and the production of 
records. The court may issue an order requiring such person to 
appear before the Secretary to produce records or to give testimony 
regarding the matter under investigation. Any failure to obey such 
order of the court may be punished by such court as a contempt 
thereof. Process in any such case may be served in the judicial 
district in which such person is an inhabitant or wherever such 
person may be found. 
Prohibition. 
7 u s e 2910. 
ADMINISTRATIVE PROVISIONS 
"SEC. 11. (a) Nothing in this Act may be construed to preempt or 
supersede any other program relating to beef promotion organized 
and operated under the laws of the United States or any State. 
"0)) The provisions of this Act applicable to the order shall be 
applicable to amendments to the order. 
7 u s e 2911. 
Ante, p. 1599. 
Effective date. 
7 u s e 2901 note. 
Pork Promotion, 
Research, and 
eonsumer 
Information Act 
of 1985. 
7 u s e 4801 note. 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 12. There are authorized to be appropriated such sums as 
may be necessary to carry out this Act. Sums appropriated to carry 
out this Act shall not be available for pa5mient of the expenses or 
expenditures of the Board or the Committee in administering any 
provisions of the order issued under section 40>) of this Act.". 
(c) The amendments made by this section shall take effect on 
January 1,1986. 
Subtitle B—Pork Promotion, Research, and Consumer Information 
SHORT TITLE 
SEC. 1611. This subtitle may be cited as the "Pork Promotion, 
Research, and Consumer Information Act of 1985". 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1607 
Commerce smd 
trade. 
FINDINGS AND DECLARATION OP PURPOSE 
SEC. 1612. (a) Congress finds that— 
7 use 4801. 
(1) pork and pork products are basic foods that are a valuable 
and healthy part of the human diet; 
(2) the production of pork and pork products plays a signifi-
cant role in the economy of the United States because pork and 
pork products are— 
(A) produced by thousands of producers, including many 
small- and medium-sized producers; and 
(B) consumed by millions of people throughout the United 
States on a daily basis; 
(3) pork and pork products must be available readily and 
marketed efficiently to ensure that the people of the United 
States receive adequate nourishment; 
(4) the maintenance and expansion of existing markets, and 
development of new markets, for pork and pork products are 
vital to— 
(A) the welfare of pork producers and persons concerned 
with producing and marketing pork and pork products; and 
(B) the general economy of the United States; 
(5) pork and pork products move in interstate and foreign 
commerce; 
(6) pork and pork products that do not move in such channels 
of commerce directly burden or affect interstate commerce in 
pork and pork products; and 
(7) in recent years, increasing quantities of low-cost, imported 
pork and pork products have been brought into the United 
States and replaced domestic pork and pork products in normal 
channels of trade. 
(bXD It is the purpose of this subtitle to authorize the establish-
ment of an orderly procedure for financing, through adequate 
assessments, and carrying out an effective and coordinated program 
of promotion, research, and consumer information designed to— 
(A) strengthen the position of the pork industry in the 
marketplace; and 
(B) maintain, develop, and expand markets for pork and pork 
products. 
(2) Such procedure shall be implemented, and such program shall 
be conducted, at no cost to the Federal Government. 
(3) Nothing in this subtitle may be construed to— 
Prohibition. 
(A) permit or require the imposition of quality standards for 
pork or pork products; 
(B) provide for control of the production of pork or pork 
products; or 
(C) otherwise limit the right of an individual pork producer to 
produce pork and pork products. 
DEFINITIONS 
SEC. 1613. For purposes of this subtitle: 
(1) The term Board" means the National Pork Board estab-
lished under section 1619. 
(2) The term "consumer information" means an activity in-
tended to broaden the understanding of sound nutritional at-
tributes of pork or pork products, including the role of pork or 
pork products in a balanced, healthy diet. 
7 u s e 4802. 
Post, p. 1612. 
99 STAT. 1608 
PUBLIC LAW 99-198—DEC. 23, 1985 
(3) The term "Delegate Body" means the National Pork 
Post, p. 1609. 
Producers Delegate Body established under section 1617. 
(4) The term "imported" means entered, or withdrawn from a 
warehouse for consumption, in the customs territory of the 
United States. 
Animals. 
(5) The term "importer" means a person who imports porcine 
animals, pork, or pork products into the United States. 
(6) The term "order" means a pork and pork products pro-
motion, research, and consumer information order issued under 
Post, p. 1609. 
section 1614. 
(7) The term "person" means an individual, group of individ-
uals, partnership, corporation, association, organization, co-
operative, or other entity. 
(8) The term "porcine animal" means a swine raised for— 
(A) feeder pigs; 
(B) seedstock; or 
(C) slaughter. 
(9) The term "pork" means the flesh of a porcine animal. 
(10) The term "pork product" means a product produced or 
processed in whole or in part from pork. 
(11) The term "producer" means a person who produces por-
cine animals in the United States for sale in commerce. 
(12) The term "promotion" means an action, including paid 
advertising, taken to present a favorable imeige for porcine 
animals, pork, or pork products to the public with the intent of 
improving the competitive position and stimulating sales of 
porcine animals, pork, or pork products. 
(13) The term "research" means— 
(A) research designed to advance, expand, or improve the 
image, desirability, nutritional value, usage, marketability, 
production, or quality of porcine animals, pork, or pork 
products; or 
(B) dissemination to a person of the results of such 
research. 
(14) The term "Secretary" means the Secretary of Agri-
culture. 
(15) The term "State" means each of the 50 States. 
(16) The term "State association" means— 
(A) the single organization of pork producers in a State 
that is— 
(i) organized under the laws of the State in which 
such association operates; and 
(ii) recognized by the chief executive officer of such 
State as representing the pork producers of such State; 
or 
(B) if such organization does not exist on the effective 
date of this subtitle, an organization that represents not 
fewer than 50 pork producers who market annually, in the 
aggregate, not less than 10 pfercent of the volume (measured 
in pounds) of porcine animals marketed in such State. 
(17) The term "to market" means to sell or to otherwise 
dispose of a porcine animal, pork, or pork product in commerce. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1609 
PORK 
AND 
PORK 
PRODUCT 
ORDERS 
SEC. 1614. (a) To carry out this subtitle, the Secretary shall, in 7 use 4803. 
accordance with this subtitle, issue and, from time to time, amend 
orders applicable to persons engaged in— 
(1) the production and sale of porcine animals, pork, and pork 
products in the United States; and 
(2) the importation of porcine animals, pork, or pork products 
into the United States. 
(b) The Secretary may issue such regulations as are necessary to Regulations. 
carry out this subtitle. 
NOTICE AND HEARING 
SEC. 1615. During the period beginning on the effective date of this 7 use 4804. 
subtitle and ending 30 days after receipt of a proposal for an initial 
order submitted by any person affected by this subtitle, the Sec-
retary shall— 
(1) publish such proposed order; and 
(2) give due notice of and opportunity for public comment on 
such proposed order. 
FINDINGS AND ISSUANCE OF ORDERS 
SEC. 1616. (a) After notice and opportunity for public comment 
have been provided in accordance with section 1615, the Secretary 
shall issue and publish an order if the Secretary finds, and sets fortn 
in such order, that the issuance of such order and all terms and 
conditions thereof will assist in carrjring out this subtitle. 
Ot)) Not more than one order may be in effect at a time. 
(c) An order shall become effective on a date that is not more than 
90 days following the publication of such order. 
(d) An order shall contain such terms and conditions as are 
required in sections 1617 through 1620 and, except as provided in 
section 1621, no others. 
NATIONAL PORK PRODUCERS DELEGATE BODY 
7 u s e 4805. 
Supra. 
Prohibition. 
Infra; post, 
pp. 1610-1614. 
Ante, p. 1617. 
SEC. 1617. (a) The order shall provide for the establishment and 7 use 4806. 
appointment by the Secretary, not later than 60 days after the 
effective date of such order, of a National Pork Producers Delegate 
Body. 
(bXD The Delegate Body shall consist of— 
(A) producers, as appointed by the Secretary in accordance 
with paragraph (2), from nominees submitted as follows: 
(i) in the case of the initial Delegate Body appointed by 
each State in accordance with section 1618. 
Post, p. I6ii. 
(ii) in the case of each succeeding Delegate Body, each 
State association shall submit nominations selected by such 
association pursuant to a selection process that— 
(I) is approved by the Secretary; 
(II) requires public notice of the process to be given at 
least one week in advance by publication in a news-
paper or newspaper of general circulation in such State 
and in pork production and agriculture trade publica-
tions; and 
(III) that provides complete and equal access to the 
nominating process to every producer who has paid all 
99 STAT. 1610 
PUBLIC LAW 99-198—DEC. 23, 1985 
P(xt, p. 1614. 
assessments due under section 1620 and not demanded 
Pogt, p. 1619. 
a refund under section 1624, 
or pursuant to an election of nominees conducted in accord-
Post, p. 1611. 
ance with section 1618. 
(iii) In the case of a State that has a State association that 
does not submit nominations or that does not have a State 
association, such State shall submit nominations in a 
manner prescribed by the Secretary; and 
(B) importers, as appointed by the Secretary in accordance 
with paragraph (3). 
(2) The number of producer members appointed to the Delegate 
Body from each State shall equal at least two members, and addi-
tional members, allocated as follows: 
(A) Shares shall be assigned to each State— 
(i) for the 1986 calendar year, on the basis of one share for 
each $400,000 of farm market value of porcine animals 
marketed from such State (as determined by the Secretary 
based on the annual average of farm market value in the 
most recent 3 calendar years preceding such year), rounded 
to the nearest $400,000; and 
(ii) for each calendar year thereafter, on the basis of one 
share for each $1,000 of the aggregate amount of assess-
ments collected (minus refunds under section 1624) in such 
State from persons described in section 1620(aXl) (A) and 
(B), rounded to the nearest $1,000. 
(B) If during a calendar year the number of such shares of a 
State is— 
(i) less than 301, the State shall receive a total of two 
producer members; 
(ii) more than 300 but less than 601, the State shall 
receive a total of three producer members; 
(iii) more than 600 but less than 1,001, the State shall 
receive a total of four producer members; and 
(iv) more than 1,000, the State shall receive four producer 
members, plus one additional member for each 300 addi-
tional shares in excess of 1,000 shares, rounded to the 
nearest 300. 
(3) The number of importer members appointed to the Delegate 
Body shall be determined as follows: 
(A) Shares shall be assigned to importers— 
Animals. 
(i) for the 1986 calendar year, on the basis of one share for 
each $575,000 of market value of marketed porcine animals, 
pork, or pork products (as determined by the Secretary 
based on the annual average of imports in the most recent 3 
calendar years preceding such year), rounded to the nearest 
$575,000; and 
(ii) for each calendar year thereafter, on the basis of one 
share for each $1,000 of the aggregate amount of assess-
ments collected (minus refunds under section 1624) from 
importers, rounded to the nearest $1,000. 
(B) The number of importer members appointed to the Dele-
gate Body shall equal a total of^ 
(i) three members for the first 1,000 such shares; and 
(ii) one additional member for each 300 additional shares 
in excess of 1,000 shares, rounded to the nearest 300. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1611 
(cXD A producer member of the Delegate Body may, in a vote 
conducted by the Delegate Body for which the member is present, 
cast a number of votes equal to— 
(A) the number of shares attributable to the State of the 
member; divided by 
(B) the number of producer members from such State. 
(2) An importer member of the Delegate Body may, in a vote 
conducted by the Delegate Body for which the member is present, 
cast a number of votes equal to— 
(A) the number of shares allocated to importers; divided by 
(B) the number of importer members. 
(3) Members entitled to cast a majority of the votes (including 
fractions thereof) on the Delegate Body shall constitute a quorum. 
(4) A majority of the votes (including fractions thereof) cast at a 
meeting at which a quorum is present shall be decisive of a motion 
or election presented to the Delegate Body for a vote. 
(d) A member of the Delegate Body shall serve for a term of 1 
year, except that the term of a member of the Delegate Body shall 
continue until the successor of such member, if any, is appointed in 
accordance with subsection (bXD. 
(eXD At the first annual meeting, the Delegate Body shall select a 
Chairman by a majority vote. 
(2) At each annual meeting thereafter, the President of the Board 
shall serve as the Chairman of the Delegate Body. 
(f) A member of the Delegate Body shall serve without compensa-
tion, but may be reimbursed by the Board from assessments col-
lected under section 1620 for transportation expenses incurred in Post, p. 1614. 
performing duties as a member of the Delegate Body. 
(gXl) The Delegate Body shall— 
(A) nominate— 
(i) not less than 23 persons for appointment to the Board, 
for the first year for which nominations are made; and 
(ii) not less than Wz persons (rounded up to the nearest 
person) for each vacancy in the Board that requires 
nominations thereafter; and 
(B) submit such nominations to the Secretary. 
(2) The Delegate Body shall meet annually to make such nomina-
tions. 
(3) A majority of the Delegate Body shall vote in person in order to 
nominate members to the Board. 
(h) The Delegate Body shall— 
(1) recommend the rate of assessment prescribed by the initial 
order and any increase in such rate pursuant to section 1620(5); 
and 
(2) determine the percentage of the aggregate amount of 
assessments collected in a State that each State association 
shall receive under section 1620(cXl). 
SELECTION OF DELEGATE BODY 
SEC. 1618. (aXD Not later than 30 days after the effective date of 7 use 4807. 
the order, the Secretary shall call for the nomination within each 
State of candidates for appointment as producer members of the 
initial Delegate Body. 
(2) Each State association may nominate producers who are resi-
dents of such State to serve as such candidates. 
99 STAT. 1612 
PUBLIC LAW 99-198—DEC. 23, 1985 
(3XA) Additional producers who are residents of a State may be 
nominated as candidates of such State by written petition signed by 
100 producers or 5 percent of the pork producers in such State, 
whichever is less. The Secretary shall establish and publicize the 
procedures governing the time and place for filing petitions. 
(bXD After the Secretary has received the nominations required 
under subsection (a) and not later than 45 days after the effective 
date of the order, the Secretary shall call for an election within each 
State of persons for appointment as producer members of the initial 
Delegate Body. 
(2) To be eligible to vote in an election held in a State, a person 
must be a producer who is a resident of such State. 
(3XA) Notice of each such election shall be given by the Sec-
retary— 
(i) by publication in a newspaper or newspapers of general 
circulation in each State, and in pork production and agri-
culture trade publications, at least 1 week prior to the election; 
and 
(ii) in any other reasonable manner determined by the Sec-
retary. 
(B) The notice shall set forth the period of time and places for 
voting and such other information as the Secretary considers 
necessary. 
Ante, p. 1609. 
(4) Each State shall nominate to the Delegate Body the number of 
producer members required under section 1617(bX2XB). 
(5) The producers who receive the highest number of votes in each 
State shall be nominated for appointment as members of the Dele-
gate Body from such State. 
(cXD Except as provided in paragraph (3), after the election of the 
producer members of the initial Delegate Body, the Board shall 
administer all subsequent nominations and elections of the producer 
members to be nominated for appointment as members of the 
Delegate Body, with the assistance of the Secretary and in accord-
ance with subsections (aX3) and (b). 
(2) The Board shall determine the timing of an election referred to 
in paragraph (1). 
(3) To be eligible to vote in such an election in a State, a person 
must— 
(A) be a producer who is a resident of such State; 
Post, p. 1614. 
(B) have paid all assessments due under section 1620; and 
(C) not demanded a refund of an assessment under section 
Post, p. 1619. 
1624. 
(dXD Prior to the expiration of the term of any producer member 
of the Delegate Body, the Board shall appoint a nominating commit-
tee of producers who are residents of the State represented by such 
member. 
(2) Such committee shall nominate producers of such State as 
candidates to fill the position for which an election is to be held. 
(3) Additional producers who are residents of a State may be 
nominated to fill such positions in accordance with subsection (aX3). 
NATIONAL PORK BOARD 
7 use 4808. 
SEC. 1619. (aXD The order shall provide for the establishment and 
appointment by the Secretary of a 15-member National Pork Board. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1613 
(2) The Board shall consist of producers representing at least 12 
States and importers appointed by the Secretary from nominations 
submitted under section 1617(g). 
Ante, p. 1609. 
(2) The Board shall consist of producers or importers appointed by 
the Secretary from nominations submitted under section 1617(g). 
(3) A member of the Board shall serve for a 3-year term, with no 
such member serving more than two consecutive 3-year terms, 
except that initial appointments to the Board shall be staggered 
with an equal number of members appointed, to the maximum 
extent possible, to 1-year, 2-year, and 3-year terms, except that the 
term of a member of the Board shall continue until the successor of 
such member, if any, is appointed in accordance with paragraph (2). 
(4) The Board shall select its President by a majority vote. 
(5XA) A majority of the members of the Board shall constitute a 
quorum at a meeting of the Board. 
(B) A majority of votes cast at a meeting at which a quorum is 
present shall determine a motion or election. 
(6) A member of the Board shall serve without compensation, but 
shall be reimbursed by the Board from assessments collected under 
section 1620 for reasonable expenses incurred in performing duties 
Post, p. 1614. 
as a member of the Board. 
(bXD The Board shall— 
(A) develop, at the initiative of the Board or other person, 
proposals for promotion, research, and consumer information 
plans and projects; 
(B) submit such plans and projects to the Secretary for 
approval; 
(C) administer the order, in accordance with the order and 
this subtitle; 
•*' 
(D) prescribe such rules as are necessary to carry out such 
order; 
(E) receive, investigate, and report to the Secretary com-
plaints of violations of such order; 
(F) make recommendations to the Secretary with respect to 
amendments to such order; and 
(G) employ a staff and conduct routine business. 
(2) The Board shall prepare and submit to the Secretary, for the 
approval of the Secretary, a budget for each fiscal year of antici-
pated expenses and disbursements of the Board in the administra-
tion of the order, including the projected cost of— 
(A) any promotion, research or consumer information plan or Contracts, 
project to be conducted by the Board directly or by way of 
contract or agreement; and 
(B) the budgets, plans, or projects for which State gissociations 
are to receive funds pursuant to section 1620(cXl). 
(3) No plan, project, or budget referred to in paragraph (1) or (2) Prohibition, 
may become effective unless approved by the Secretary. 
(4XA) The Board, with the approval of the Secretary, may enter Contracts, 
into contracts or agreements with a person for— 
(i) the development and conduct of activities authorized under 
an order; and 
(ii) the payment of the cost thereof with funds collected 
through assessments under such order. 
(B) Such contract or agreement shall require that— 
(i) the contracting party develop and submit to the Board a 
plan or project, together with a budget or budgets that include 
the estimated cost to be incurred under such plan or project; 
99 STAT. 1614 
PUBLIC LAW 99-198—DEC. 23, 1985 
(ii) such plan or project become effective on the approval of 
the Secretary; and 
(iii) the contracting party— 
(I) keep accurate records of all relevant transactions of 
the party; 
(II) make periodic reports to the Board o
f
— 
(aa) relevant activities the party has conducted; and 
(bb) an accounting for funds received and expended 
under such contract; and 
(III) make such other reports as the Secretary or Board 
may require. 
ASSESSMENTS 
7 use 4809. 
SEC. 1620. (aXD The order shall provide that, not later than 30 
Ante, p. 1609. 
days after the effective date of the order under section 1616(c) an 
assessment shall be paid, in the manner prescribed in the order. 
Upon the appointment of the Board, the assessments held in escrow 
shall be distributed to the Board. Except as provided in paragraph 
Animals. 
(3), Eissessments shall be payable by— 
(A) each producer for each porcine animal described in 
Ante, p. 1607. 
subparagraph (A) or (C) of section 1613(8) produced in the 
United States that is sold or slaughtered for sale; 
(B) each producer for each porcine animal described in subsec-
tion 1613(8XB) that is sold; and 
(C) each importer for each porcine animal, pork, or pork 
product that is imported into the United States. 
(2) Such assessment shall be collected and remitted to the Board 
Ante, p. 1612. 
once it is appointed pursuant to section 1619, but, until that time, to 
the Secretary, who shall promptly proceed to distribute the funds 
received by him in accordance with the provisions of subsection (c), 
except that the Secretary shall retain the funds to be received by the 
Board until such time as the Board is appointed pursuant to section 
1619, by— 
(A) in the case of subparagraph (A) of paragraph (1), the 
purchaser of the porcine animal referred to in such subpara-
graph; 
(B) in the C£ise of subparagraph (B) of paragraph (1), the 
producer of the porcine animal referred to in such subpara-
graph; and 
(C) in the case of subparagraph (C) of paragraph (1), the 
importer referred to in such subparagraph. 
Animals. 
(3) A person is not required to pay an assessment for a porcine 
animal, pork, or pork product under paragraph (1) if such person 
proves to the Board that an assessment was paid previously under 
such paragraph by a person for such porcine animal (of the same 
category described in subparagraph (A), (B), or (C) of section 1613(8)), 
pork, or pork product. 
(bXD Except as provided in paragraph (2), the rate of assessment 
prescribed by the initial order shall be the lesser of— 
(A) 0.25 percent of the market value of the porcine animal, 
pork, or pork product sold or imported; or 
(B) an amount established by the Secretary based on a rec-
ommendation of the Delegate Body. 
(2) Except as provided in paragraph (3), the rate of assessment in 
the initial order may be increased by not more than 0.1 percent per 
year on recommendation of the Delegate Body. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1615 
(3) The rate of assessment may not exceed 0.50 percent of such 
market value unless— 
(A) after the initial referendum required under section 
1622(a), the Delegate Body recommends an increase in such rate 
above 0.50 percent; and 
(B) such increase is approved in a referendum conducted 
under section 1622(b). 
(4)(A) Pork or pork products imported into the United States shall 
be assessed based on the equivalent value of the live porcine animal 
from which such pork or pork products were produced, as deter-
mined by the Secretary. 
(B) The Secretary may waive the collection of assessments on a 
type of such imported pork or pork products if the Secretary deter-
mines that such collection is not practicable. 
(c) Funds collected by the Board from assessments collected under 
this section shall be distributed and used in the following manner: 
(1)(A) Each State association, shall receive an amount of funds 
equal to the product obtained by multiplying— 
(i) the aggregate amount of assessments attributable to 
porcine animals produced in such State by persons de-
scribed in subsection (a)(1) (A) and (B) minus that State's 
share of refunds determined pursuant to paragraph (4) by 
such persons pursuant to section 1624; and 
(ii) a percentage applicable to such State association 
determined by the Delegate Body, but in no event less than 
sixteen and one-half percent, or 
(B) in the case of a State association that was conducting a 
pork promotion program in the period from July 1, 1984, to 
June 30, 1985, if greater than (A) an amount of funds equal to 
the amount of funds that would have been collected in such 
State pursuant to the pork promotion program in existence in 
such State from July 1, 1984, to June 30, 1985, had the porcine 
animals, subject to assessment and to which no refund WEIS 
received in such State in each year following the enactment of 
this Act, been produced from July 1,1984, to June 30,1985, and 
been subject to the rates of assessments then in effect and the 
rate of return then in effect from each State to the Council 
described in paragraph (2)(A), and other national entities in-
volved in pork promotion, research and consumer information. 
(C) A State association shall use such funds and any proceeds 
from the investment of such funds for financing— 
(i) promotion, research, and consumer information plans 
and projects, and 
(ii) administrative expenses incurred in connection with 
such plans and projects. 
(2XA) The National Pork Producers Council, a nonprofit cor-
poration of the type described in section 501(c)(3) of the Internal 
Revenue Code of 1954 and incorporated in the State of Iowa, 
shall receive an amount of funds equal to— 
(i) 37 y2 percent of the aggregate amount of assessments 
collected under this section throughout the United States 
from the date assessment commences pursuant to subsec-
tion (aXD until the first day of the month following the 
month in which the Board is appointed pursuant to section 
1619. 
(ii) 35 percent thereafter until the referendum is con-
ducted pursuant to section 1622, 
Post, p. 1618. 
Animals. 
Animals. 
Post, p. 1619. 
Corporation. 
Iowa. 
26 u s e 501. 
Ante, p. 1612. 
Post, p. 1618. 
99 STAT. 1616 
PUBLIC LAW 99-198—DEC. 23, 1985 
(iii) 25 percent until twelve months after the referendum 
is conducted, and 
(iv) no funds thereafter except in so far as it obtains such 
Ante, pp. 1612, 
funds from the Board pursuant to sections 1619 or 1620, 
1614. 
each of which amounts determined under (i), (ii), and (iii) 
shall be less the Council's share of refunds determined 
pursuant to paragraph (4). 
(B) The Council shall use such funds and proceeds from the 
investment of such funds for financing— 
(i) promotion, research, and consumer information plans 
and projects, and 
(ii) administrative expenses of the Council. 
(3)(A) The Board shall receive the amount of funds that 
remain after the distribution required under paragraphs (1) and 
(2). 
(B) The Board shall use such funds and any proceeds from the 
investment of such funds pursuant to subsection (g) for— 
(i) financing promotion, research, and consumer informa-
tion plans and projects in accordance with this title; 
(ii) such expenses for the administration, maintenance, 
and functioning of the Board as may be authorized by the 
Secretary; 
(iii) accumulation of a reasonable reserve to permit an 
effective promotion, research, and consumer information 
program to continue in years when the amount of assess-
ments may be reduced; and 
(iv) administrative costs incurred by the Secretary to 
carry out this title, including any expenses incurred for the 
conduct of a referendum under this title. 
(4)(A) Each State's share of refunds shall be determined by 
multiplying the aggregate amount of refunds received by 
producers in such State by the percentage applicable to such 
State pursuant to paragraph (l)(AXii). 
(B) The National Pork Producers Council's share of refunds 
shall be determined by multiplying its applicable percent of the 
aggregate amount of assessments by the product of— 
(i) subtracting from the aggregate amount of refunds 
received by all producers the aggregate amount of State 
share or refunds in every State determined pursuant to 
subparagraph (A), and 
(ii) adding to that sum the aggregate amount of refunds 
received by importers. 
Prohibition. 
(d) No promotion funded with assessments collected under this 
subtitle may make— 
(1) a false or misleading claim on behalf of pork or a pork 
product; or 
(2) a false or misleading statement with respect to an at-
tribute or use of a competing product. 
Prohibition. 
(e) No funds Collected through assessments authorized by this 
section may, in any manner, be used for the purpose of influencing 
legislation, as defined in section 4911 (d) and (e)(2) of the Internal 
26 use 4911. 
Revenue Code of 1954. 
if) The Board shall— 
Reports. 
(1) maintain such books and records, and prepare and submit 
to the Secretary such reports from time to time, as may be 
required by the Secretary for appropriate accounting of the 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1617 
receipt and disbursement of funds entrusted to the Board or a 
State association, as the case may be; and 
(2) cause a complete audit report to be submitted to the 
Secretary at the end of each fiscal year, 
(g) The Board, with the approval of the Secretary, may invest 
funds collected through assessments authorized under this section, 
pending disbursement for a plan or project, only in— 
(1) an obligation of the United States, or of a State or political 
subdivision thereof; 
(2) an interest-bearing account or certificate of deposit of a 
bank that is a member of the Federal Reserve System; or 
(3) an obligation fully guaranteed as to principal and interest 
by the United States. 
Report. 
Animals. 
Records. 
Reports. 
Animals. 
PERMISSIVE PROVISIONS 
SEC. 1621. (a) On the recommendation of the Board, and with the 7 use 4810. 
approval of the Secretary, an order may contain one or more of the 
following provisions: 
(1) Each person purchasing a porcine animal from a producer 
for commercial use, and each importer, shall— 
(A) maintain and make available for inspection such 
books and records as may be required by the order; and 
(B) file reports at the time, in the manner, and having the 
content prescribed by the order, 
including documentation of the State of origin of a purchased 
porcine animal or the place of origin of an imported porcine 
animal, pork, or pork product. 
(2) A term or condition— 
(A) incidental to, and not inconsistent with, the terms and 
conditions specified in this subtitle; and 
(B) necessary to effectuate the other provisions of such 
order. 
(bXD Information referred to in subsection (aXD shall be made 
available to the Secretary and the Board as is appropriate or 
necessary for the effectuation, administration, or enforcement of 
this subtitle or an order. 
(2XA) Except as provided in subparagraphs (B) and (C), informa-
tion obtained under subsection (aXD shall be kept confidential bv 
officers or employees of the Department of Agriculture or the Board. 
(B) Such information may be disclosed only— 
(i) in a suit or administrative hearing involving the order with 
respect to which the information was furnished or acquired— 
(I) brought at the direction or on the request of the 
Secretary; or 
(II) to which the Secretary or an officer of the United 
States is a party; and 
(ii) if the Secretary considers such information to be relevant 
to such suit or hearing. 
(C) Nothing in this section prohibits— 
(i) the issuance of a general statement based on the reports of 
a number of persons subject to an order, or statistical data 
collected therefrom, if such statement or data does not identify 
the information furnished by any person; or 
(ii) the publication, by direction of the Secretary, of the name 
of a person violating an order, together with a statement of the 
particular provisions of the order violated by such person. 
99 STAT. 1618 
PUBLIC LAW 99-198—DEC. 23, 1985 
(c) A person who willfully violates subsection (aXD or (b) shall, on 
conviction, be— 
(1) subject to a fine of not more than $1,000 or imprisoned for 
not more than 1 year, or both; and 
(2) if such person is an employee of the Department of Agri-
culture or the Board, removed from office. 
REFERENDUM 
7 use 4811. 
SEC. 1622. (a) For the purpose of determining whether an order 
then effect shall be continued during the period beginning not 
earlier than 24 months after the issuance of the order and ending 
not later than 30 months after the issuance of the order, the 
Secretary shall conduct a referendum among persons who have been 
pork producers and importers during a representative period, as 
determined by the Secretary. 
(b)(1) Such order shall be continued only if the Secretary deter-
mines that such order has been approved by not less than a majority 
of the producers and importers voting in the referendum, 
(2) If the continuation of such order is not approved by a majority 
of the producers and importers voting in the referendum, the Sec-
retary shall terminate— 
(A) collection of assessments under the order not later than 6 
months after the date of such determination; and 
(B) the order in an orderly manner as soon as practicable 
after the date of such determination. 
(c) The Secretary shall be reimbursed from assessments collected 
by the Board for any expenses incurred in connection with a ref-
Infra. 
erendum conducted under this section or section 1623. 
(d) A referendum shall be conducted in such manner as prescribed 
by the Secretary. 
(e) A referendum to amend the initial order shall be conducted 
pursuant to this section. 
SUSPENSION AND TERMINATION OF ORDERS 
7 use 4812. 
SEC. 1623. (a) If after the initial referendum provided for in section 
Supra. 
1622(a) the Secretary determines that an order, or a provision of the 
order, obstructs or does not tend to effectuate the declared policy of 
this subtitle, the Secretary shall terminate or suspend the operation 
of such order or provision. 
(bXlXA) Except as provided in paragraph (2), after the initial 
referendum provided for in section 1622(a), on the request of a 
number of persons equal to at least 15 percent of persons who have 
been producers and importers during a representative period, as 
determined by the Secretary, the Secretary shall conduct a referen-
dum to determine whether the producers and importers favor the 
termination or suspension of the order. 
(B) The Secretary shall— 
(i) suspend or terminate collection of assessments under the 
order not later than 6 months after the date the Secretary 
determines that suspension or termination of the order is fa-
vored by a majority of the producers and importers voting in the 
referendum; and 
(ii) terminate the order in an orderly manner as soon as 
practicable after the date of such determination. 
. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1619 
(2) Except with respect to a referendum required to be conducted 
under section 1622, the Secretary shall not be required by paragraph 
(1) to conduct more than one referendum under this subtitle in a 2-
year period. 
(c) The termination or suspension of an order, or a provision of an 
order, shall not be considered an order within the meaning of this 
subtitle. 
REFUNDS 
SEC. 1624. (a) Notwithstanding any other provision of this subtitle, 
prior to the approval of the continuation of an order pursuant to the 
referendum required under section 1622(a), any person shall have 
the right to demand and receive from the Board a refund of an 
assessment collected under section 1620 if such person— 
(1) is responsible for paying such assessment; and 
(2) does not support the program established under this sub-
title. 
(b) Such demand shall be made in accordance with regulations, on 
a form, and within a time period prescribed by the Board and 
approved by the Secretary, but not later than 30 days after the end 
of the month in which the assessment was paid. 
(c) Such refund shall be made not later than 30 days after demand 
is received therefore on submission of proof satisfactory to the Board 
that the producer, person, or importer— 
(1) paid the assessment for which refund is sought; and 
(2) did not collect such assessment from another producer, 
person, or importer. 
PETITION AND REVIEW 
SEC. 1625. (aXD A person subject to an order may file with the 
Secretary a petition— 
(A) stating that such order, a provision of such order, or an 
obligation imposed in connection with such order is not in 
accordance with law; and 
(B) requesting a modification of such order or an exemption 
from such order. 
(2) Such person shall be given an opportunity for a hearing on the 
petition, in accordance with regulations issued by the Secretary. 
(3) After such hearing, the Secretary shall make a determination 
granting or denying such petition. 
(bXD A district court of the United States in the district in which 
such person resides or does business shall have jurisdiction to review 
such determination if a complaint for such purpose is filed not later 
than 20 days after the date such person receives notice of such 
determination. 
(2) Service of process in such proceeding may be made on the 
Secretary by delivering a copy of the complaint to the Secretary. 
(3) If a court determines that such determination is not in accord-
ance with law, the court shall remand such proceedings to the 
Secretary with directions to— 
(A) make such ruling as the court shall determine to be in 
accordance with law; or 
(B) take such further proceedings as, in the opinion of the 
court, the law requires. 
Prohibition. 
Ante, p. 1618. 
Prohibition. 
7 u s e 4813. 
Ante, p. 1614. 
7 u s e 4814. 
Regulations. 
99 STAT. 1620 
PUBLIC LAW 99-198—DEC. 23, 1985 
Regulations. 
7 u s e 4815. 
Regulations. 
Regulations. 
Prohibition. 
ENFORCEMENT 
SEC. 1626. (aXD A district court of the United States shall have 
jurisdiction specifically to enforce, and to prevent and restrain a 
person from violating an order, rule, or regulation issued under this 
subtitle. 
(2) A civil action authorized to be brought under this subsection 
shall be referred to the Attorney General for appropriate action, 
except that the Secretary is not required to refer to the Attorney 
General a violation of this subtitle if the Secretary believes that the 
administration and enforcement of this subtitle would be adequately 
served by providing a suitable written notice or warning to a person 
who committed such violation or by administrative action under 
subsection (b). 
(bXlXA) A person who willfully violates an order, rule, or regula-
tion issued by the Secretary under this subtitle may be assessed— 
(i) a civil penalty by the Secretary of not more than $1,000 for 
each such violation; and 
(ii) in the case of a willful failure to pay, collect, or remit an 
assessment as required by an order, an additional penalty equal 
to the amount of such assessment. 
(B) Each such violation shall be a separate offense. 
(C) In addition to or in lieu of such civil penalty, the Secretary 
may issue an order requiring such person to cease and desist from 
violating such order, rule, or regulation. 
(D) No penalty may be assessed or cease-and-desist order issued 
unless the Secretary gives such person notice and opportunity for a 
hearing on the record with respect to such violation. 
(E) An order issued under this paragraph by the Secretary shall be 
final and conclusive unless such person files an appeal from such 
order with the appropriate United States court of appeals not later 
than 30 days after such person receives notice of such order. 
(2XA) A person against whom an order is issued under paragraph 
(1) may obtain review of such order in the court of appeals of the 
United States for the circuit in which such person resides or does 
business, or in the United States Court of Appeals for the District of 
Columbia Circuit, by— 
(i) filing a notice of appeal in such court not later than 30 days 
after the date of such order; and 
(ii) simultaneously sending a copy of such notice by certified 
mail to the Secretary. 
(B) The Secretary shall file promptly in such court a certified copy 
of the record on which such violation was found. 
(C) A finding of the Secretary shall be set aside only if the finding 
ia found to be unsupported by substantial evidence. 
(3XA) A person who fails to obey a valid cease-and-desist order 
issued under paragraph (1) by the Secretary, after an opportunity 
for a hearing, shall be subject to a civil penalty assessed by the 
Secretary of not more than $500 for each offense. 
(B) Each day during which such failure continues shall be consid-
ered a separate violation of such order. 
(4XA) If a person fails to pay a valid civil penalty imposed under 
this subsection by the Secretary, the Secretary shall refer the 
matter to the Attorney General for recovery of the amount assessed 
in an appropriate district court of the United States. 
(B) In such action, the validity and appropriateness of the order 
imposing such civil penalty shall not be subject to review. , ^,,., 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1621 
(c) The remedies provided in subsections (a) and (b) shall be in 
addition to, and not exclusive of, other remedies that may be 
available. 
INVESTIGATIONS 
SEC. 1627. (a) The Secretary may make such investigf dons as the 7 use 4816. 
Secretary considers necessary— 
(1) for the effective administration of this subtitle; or 
(2) to determine whether a person subject to this subtitle has Regulations. 
engaged, or is about to engage, in an act that constitutes, or will 
constitute, a violation of this subtitle or an order, rule, or 
regulation issued under this subtitle. 
(bXD For the purpose of such investigation, the Secretary may 
administer oaths and affirmations, subpoena witnesses, compel their 
attendance, take evidence, and require the production of any records 
that are relevant to the inquiry. 
(2) Such attendance of witnesses and the production of such 
records may be required from any place in the United States. 
(cXD In the case of contumacy, or refusal to obey a subpoena, by a 
person, the Secretary may invoke the aid of a court of the United 
States with jurisdiction over such investigation or proceeding, or 
where such person resides or does business, in requiring the attend-
ance and testimony of such person and the production of such 
records. 
(2) The court may issue an order requiring such person to appear 
before the Secretary to produce records or to give testimony touch-
ing the matter under investigation. 
(3) A failure to obey an order issued under this section by the 
court may be punished by the court as a contempt thereof. 
(4) Process in such case may be served in the judicial district in 
which such person is an inhabitant or wherever such person may be 
found. 
PREEMPTION 
SEC. 1628. (a) This subtitle is intended to occupy the field o
f
— 7 use 4817. 
(1) promotion and consumer education involving pork and 
pork products; and 
(2) obtaining funds therefor from pork producers. 
O
b
) The regulation of such activity (other than a regulation or Regulations. 
requirement relating to a matter of public health or the provision of Prohibition. 
State or local funds for such activity) that is in addition to or 
different from this subtitle may not be imposed by a State. 
(c) This section shall apply only during a period beginning on the 
date of the commencement of the collection of assessments under 
section 1620 and ending on the date of the termination of the Ante, p. 1614. 
collection of £issessments under section 1622(aX3) or 1622(bXlXB). Ante, p. 1618. 
ADMINISTRATIVE PROVISION 
SEC. 1629. The provisions of this subtitle applicable to orders shall 
be applicable to amendments to orders. 
7 u s e 4818. 
AUTHORIZATION FOR APPROPRIATIONS 
SEC. 1630. (a) There are authorized to be appropriated such sums 
as may be necessary for the Secretary to carry out this subtitle, 
7 u s e 4819. 
99 STAT. 1622 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1620. 
Effective date. 
7 u s e 4801 note. 
Watermelon 
Research and 
Promotion Act. 
7 u s e 4901 note. 
subject 
to 
reimbursement 
from 
the 
Board 
under 
section 
1620(cX3XBXiv). 
(b) Sums appropriated to carry out this subtitle shall not be 
available for pa3rment of an expense or expenditure incurred by the 
Board in administering an order. 
EFFECTIVE DATE 
SEC. 1631. This subtitle shall become effective on January 1, 1986. 
Subtitle C—Watermelon Research and Promotion Act 
SHORT TITLE 
SEC. 1641. This subtitle may be cited as the "Watermelon Re-
search and Promotion Act". 
FINDINGS AND DECLARATION OF POUCY 
7 use 4901 note. 
SEC. 1642. (a) Congress finds that— 
(1) the per capita consumption of watermelons in the United 
States has declined steadily in recent years; 
(2) watermelons are an important cash crop to many farmers 
in the United States and are an economical, enjoyable, and 
healthful food for consumers; 
(3) approximately 2,607,600,000 pounds of watermelons with a 
farm value of $158,923,000 were produced in 1981 in the United 
States; 
(4) watermelons move in the channels of interstate commerce, 
and watermelons that do not move in such channels directly 
affect interstate commerce; 
(5) the maintenance and expansion of existing markets and 
the establishment of new or improved markets and uses for 
watermelons are vital to the welfare of watermelon growers and 
those concerned with marketing, using, and handling water-
melons, as well as the general economic welfare of the Nation; 
and 
(6) the development and implementation of coordinated pro-
grams of research, development, advertising, and promotion are 
necessary to maintain and expand existing markets and estab-
lish new or improved markets and uses for watermelons. 
Prohibition. 
(b) It is declared to be the policy of Congress that it is essential in 
the public interest, through the exercise of the powers provided 
herein, to authorize the establishment of an orderly procedure for 
the development, financing (through adequate assessments on 
watermelons harvested in the United States for commercial use), 
and carr3dng out of an effective, continuous, and coordinated pro-
gram of research, development, advertising, and promotion designed 
to strengthen the watermelon's competitive position in the market-
place, and establish, maintain, and expand domestic and foreign 
markets for watermelons produced in the United States. The pur-
pose of this subtitle is to so authorize the establishment of such 
procedure and the development, financing, and carrjdng out of such 
program. Nothing in this subtitle may be construed to dictate 
quality standards nor provide for the control of production or other-
wise limit the right of individual watermelon producers to produce 
watermelons. 
,,;„,...,. „„... .,... -^.^..-^..^i^.:-.- .,... ....... ^-.. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1623 
DEFINITIONS 
SEC. 1643. As used in this subtitle— 
7 use 4902. 
(1) the term "Secretary" means the Secretary of Agriculture; 
(2) the term "person" means any individual, group of individ-
uals, partnership, corporation, association, cooperative, or other 
entity; 
(3) the term "watermelon" means all varieties of watermelon 
grown by producers in the forty-eight contiguous States of the 
United States; 
(4) the term "handler" means any person (except a common 
or contract carrier of watermelons owned by another person) 
who handles watermelons in a manner specified in a plan issued 
under this subtitle or in regulations promulgated thereunder; 
(5) the term "producer" means any person engaged in the 
growing of five or more acres of watermelons; 
(6) the term "promotion" means any action taken by the 
Board, under this subtitle, to present a favorable image for 
watermelons to the public with the express intent of improving 
the competitive position of watermelons in the marketplace and 
stimulating sales of watermelons, and shall include, but not be 
limited to, paid advertising; and 
(7) the term "Board" means the National Watermelon Pro-
motion Board provided for in section 1644. 
infm. 
ISSUANCE OF PLANS 
SEC. 1644. To effectuate the declared policy of this subtitle, the 7 use 4903. 
Secretary shall, under the provisions of this subtitle, issue, and from 
time to time may amend, orders (applicable to producers and han-
dlers of watermelons) authorizing the collection of gissessments on 
watermelons under this subtitle and the use of such funds to cover 
the costs of research, development, advertising, and promotion with 
respect to watermelons under this subtitle. Any order issued by the 
Secretary under this subtitle shall hereinafter in this subtitle be 
referred to as a "plan". Any plan shall be applicable to watermelons 
produced in the forty-eight contiguous States of the United States. 
NOTICE AND HEARINGS 
SEC. 1645. (a) When sufficient evidence, as determined by the 7 use 4904. 
Secretary, is presented to the Secretary by watermelon producers 
and handlers, or whenever the Secretary has reason to believe that 
a plan will tend to effectuate the declared policy of this subtitle, the 
Secretary shall give due notice and opportunity for a hearing on a 
proposed plan. Such hearing may be requested by watermelon 
producers or handlers or by any other interested person, including 
the Secretary, when the request for such hearing is accompanied by 
a proposal for a plan. 
(b) After notice and opportunity for hearing £is provided in Subsec-
tion (a) of this section, the Secretary shall issue a plan if the 
Secretary finds, and sets forth in such plan, on the evidence intro-
duced at the hearing that the issuance of the plan and all the terms 
£md conditions thereof will tend to effectuate the declared policy of 
this subtitle. 
51-194 O - 88 - 17 : QL. 3 
Part 2 
99 STAT. 1624 
PUBLIC LAW 99-198—DEC. 23, 1985 
REGULATIONS 
7 use 4905. 
SEC. 1646. The Secretary may issue such regulations as may be 
necessary to carry out the provisions of this subtitle and the powers 
vested in the Secretary under this subtitle. 
REQUIRED TERMS IN PLANS 
7 use 4906. 
SEC. 1647. (a) Any plan issued under this subtitle shall contain the 
terms and provisions described in this section. 
(b) The plan shall provide for the establishment by the Secretary 
of the National Watermelon Promotion Board and for defining its 
powers and duties, which shall include the powers to— 
(1) administer the plan in accordance with its terms and 
conditions; 
Regulations. 
(2) make rules and regulations to effectuate the terms and 
conditions of the plan; 
Report. 
(3) receive, investigate, and report to the Secretary complaints 
of violations of the plan; and 
(4) recommend to the Secretary amendments to the plan. 
(c) The plan shall provide that the Board shall be composed of 
representatives of producers and handlers, and one representative of 
the public, appointed by the Secretary from nominations submitted 
in accordance with this subsection. An equal number of representa-
tives of producers and handlers shall be nominated by producers 
and handlers, and the representative of the public shall be nomi-
nated by the producer and handler members of the Board, in such 
manner as may be prescribed by the Secretary. If producers and 
handlers fail to select nominees for appointment to the Board, the 
Secretary may appoint persons on the basis of representation as 
provided for in the plan. If the Board fails to nominate a public 
representative, the Secretary shall choose such representative for 
appointment. 
(d) The plan shall provide that all Board members shall serve 
without compensation, but shall be reimbursed for reasonable ex-
penses incurred in performing their duties as members of the Board. 
(e) The plan shall provide that the Board shall prepare and submit 
to the Secretary for the Secretary's approval a budget, on a fiscal 
period basis, of its anticipated expenses and disbursements in the 
administration of the plan, including probable costs of research, 
development, advertising, and promotion. 
(f) The plan shall provide for the fixing by the Secretary of 
assessments to cover costs incurred under the budgets provided for 
Post, p. 1625. 
in subsection (e), and under section 1648(f), based on the Board's 
recommendation as to the appropriate rate of assessment, and for 
the collection of the assessments by the Board. 
(g) The plan shall provide that— 
(1) funds collected by the Board shall be used for research, 
development, advertising, or promotion of watermelons and 
such other expenses for the administration, maintenance, and 
functioning of the Board as may be authorized by the Secretary, 
including any referendum and administrative costs incurred by 
the Department of Agriculture under this subtitle; 
Prohibition. 
(2) no advertising or sales promotion program under this 
subtitle shall make any reference to private brand names nor 
use false or unwarranted claims in behalf of watermelons or 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1625 
their products or false or unwarranted statements with respect 
to attributes or use of any competing products; 
(3) no funds collected by the Board shall in any manner be 
used for the purpose of influencing governmental policy or 
action, except as provided by subsections (bX4) and (f); and 
(4) assessments shall be made on watermelons produced by 
producers and watermelons handled by handlers, and the rate 
of such assessments shall be the same, on a per-unit basis, for 
producers and handlers. If a person performs both producing 
and handling functions, both assessments shall be paid by such 
person. 
(h) The plan shall provide that, notwithstanding any other provi-
sions of this subtitle, any watermelon producer or handler against 
whose watermelons an assessment is made and collected under this 
subtitle and who is not in favor of supporting the research, develop-
ment, advertising, and promotion program provided for under this 
subtitle shall have the right to demand a refund of the assessment 
from the Board, under regulations, and on a form and within a time 
period (not less than 90 days), prescribed by the Board and approved 
by the Secretary. A producer or handler who timely makes demand 
in accord with the regulations, on submission of proof satisfactory to 
the Board that the producer or handler paid the assessment for 
which the refund is sought, shall receive such refund within 60 days 
after demand therefor. 
(i) The plan shall provide that the Board, subject to the provisions 
of subsections (e), (f), and (g), shall develop and submit to the 
Secretary, for the Secretary's approval, any research, development, 
advertising, or promotion program or project, and that a program 
or project must be approved by the Secretary before becoming 
effective. 
(j) The plan shall provide the Board with authority to enter into 
contracts or agreements, with the approval of the Secretary, for the 
development and carrying out of research, development, advertising, 
or promotion programs or projects, and the pajmient of the cost 
thereof with funds collected under this subtitle. 
(k) The plan shall provide that the Board shall (1) maintain books 
and records, (2) prepare and submit to the Secretary such reports 
from time to time as may be prescribed for appropriate accounting 
with respect to the receipt and disbursement of funds entrusted to it, 
and (3) cause a complete audit report to be submitted to the 
Secretary at the end of each fiscal period. 
Prohibition. 
Regulations. 
Contracts. 
Report. 
PERMISSIVE TERMS IN PLANS 
SEC. 1648. (a) Any plan issued under this subtitle may contain one 7 use 4907. 
or more of the terms and provisions described in this section, but 
except as provided in section 1647 no others. 
Ante, p. 1624. 
(b) The plan may provide for the exemption, from the provisions of 
the plan, of watermelons used for nonfood uses, and authority for 
the Board to establish satisfactory safeguards against improper use 
of such exemption. 
(c) The plan may provide for the designation of different handler 
payment and reporting schedules with respect to assessments, as 
provided for in sections 1647 and 1649, to recognize differences in 
Post, p. 1626. 
marketing practices and procedures used in different production 
areas. 
99 STAT. 1626 
PUBLIC LAW 99-198—DEC. 23, 1985 
(d) The plan may provide for the establishment, issuance, effec-
tuation, and administration of appropriate programs or projects for 
the advertising and other sales promotion of watermelons and for 
the disbursement of necessary funds for such purposes. Any such 
program or project shall be directed toward increasing the general 
demand for watermelons, and promotional activities shall comply 
Ante, p. 1624. 
with the provisions of sectipn 1647(g). 
(e) The plan may provide for establishing and carrying out re-
search and development projects and studies to the end that the 
marketing and use of watermelons may be encouraged, expanded, 
improved, or made more efficient, and for the disbursement of 
necessary funds for such purposes. 
Prohibition. 
(f) The plsm may provide authority for the accumulation of reserve 
funds from assessments collected under this subtitle, to permit an 
effective and continuous coordinated program of research, develop-
ment, advertising, and promotion in years when watermelon produc-
tion and assessment income may be reduced, except that the total 
reserve fund may not exceed the amount budgeted for two years 
operation. 
(g) The plan may provide for the use of funds from assessments 
collected under this subtitle, with the approval of the Secretary, for 
the development and expansion of sales of watermelons in foreign 
markets. 
(h) The plan may contain terms and conditions incidental to and 
not inconsistent with the terms and conditions specified in this 
subtitle and necessary to effectuate the other provisions of the plan. 
Records. 
Prohibition. 
7 u s e 4908. 
Records. 
Regulation. 
ASSESSMENT PROCEDURES 
SEC. 1649. (a) Each handler required to pay assessments under a 
plan, as provided for under section 1647(f), shall be responsible for 
pa3mient to the Board, as it may direct, of the assessments. A 
handler also shall collect from any producer, or shall deduct from 
the proceeds paid to any producer, on whose watermelons a pro-
ducer assessment is made, the assessments required to be paid by 
the producer. The handler shall remit producer assessments to the 
Board as the Board directs. Such handler shall maintain a separate 
record with respect to each producer for whom watermelons were 
handled. Such records shall indicate the total quantity of water-
melons handled by the handler, including those handled for produc-
ers and for the handler, the total quantity of watermelons handled 
by the handler that are included under the terms of the plan, as well 
as those that are exempt under the plan, and such other information 
as may be prescribed by the Board. To facilitate the collection and 
payment of assessments, the Board may designate different han-
dlers or classes of handlers to recognize differences in marketing 
practices or procedures used in any State or area. The handler shall 
be assessed an equal amount as the producer. No more than one 
assessment on a producer nor more than one assessment on a 
handler shall be made on any watermelons. 
(b) Handlers responsible for pa5mient of gissessments under subsec-
tion (a) shall maintain and make available for inspection by the 
Secretary such books and records as required by the plan and file 
reports at the times, in the manner, and having the content pre-
scribed by the plan, to the end that information and data shall be 
made available to the Board and to the Secretary that is appropriate 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1627 
or necessary to the effectuation, administration, or enforcement of 
this subtitle or of any plan or regulation issued under this subtitle. 
(c) All information obtained under subsections (a) and (b) shall be Prohibition, 
kept confidential by all officers and employees of the Department of 
Agriculture and of the Board, and only such information so fur-
nished or acquired £is the Secretary deems relevant shall be dis-
closed by them, and then only in a suit or administrative hearing 
brought at the direction, or on the request, of the Secretary, or to 
which the Secretary or any officer of the United States is a party, 
and involving the plan with reference to which the information to 
be disclosed was furnished or acquired. Nothing in this subsection 
shall be deemed to prohibit— 
(1) the issuance of general statements based on the reports of 
a number of handlers subject to a plan if such statements do not 
identify the information furnished by any person; or 
(2) the publication by direction of the Secretary of the name of 
any person violating any plan together with a statement of the 
particular provisions of the plan violated by such person. 
Any such officer or employee violating the provisions of this subsec-
tion shall be subject to a fine of not more than $1,000 or imprison-
ment for not more than one year, or both, and shall be removed 
from office. 
PETITION AND REVIEW 
SEC. 1650. (a) Any person subject to a plan may file a written 
petition with the Secretary, stating that the plan or any provision of 
the plan, or any obligation imposed in connection therewith, is not 
in accordance with law and praying for a modification thereof or to 
be exempted therefrom. The person shall be given an opportunity 
for a hearing on the petition, in accordance with regulations pre-
scribed by the Secretary. After the hearing, the Secretary shall 
make a ruling on the petition, which shall be final if in accordance 
with the law. 
(b) The district courts of the United States in any district in which 
the person is an inhabitant, or in which the person's principal place 
of business is located, are hereby vested with jurisdiction to review 
such ruling, provided that a complaint for that purpose is filed 
within twenty days from the date of the entry of the ruling. Service 
of process in such proceedings may be had on the Secretary by 
delivering to the Secretary a copy of the complaint. If the court 
determines that the ruling is not in accordance with law, it shall 
remand the proceedings to the Secretary with directions either to (1) 
make such ruling as the court shall determine to be in accordance 
with law, or (2) take such further proceedings as, in its opinion, the 
law requires. The pendency of proceedings instituted under subsec-
tion (a) shall not impede or delay the United States or the Secretary 
from obtaining relief under section 1851(a). 
Regulations. 
7 u s e 4909. 
ENFORCEMENT 
SEC. 1651. (a) The several district courts of the United States are 
vested with jurisdiction specifically to enforce, and to prevent and 
restrain any person from violating, any plan or regulation made or 
issued under this subtitle. The facts relating to any civil action that 
may be brought under this subsection shall be referred to the 
Attorney General for appropriate action, except that nothing in this 
subtitle shall be construed as requiring the Secretary to refer to the 
Regulations. 
Prohibition. 
7 use 4910. 
99 STAT. 1628 
PUBLIC LAW 99-198—DEC. 23, 1985 
Attorney General violations of this subtitle whenever the Secretary 
believes that the administration and enforcement of the plan or 
regulation would be adequately served by administrative action 
under subsection (b) or suitable written notice or warning to any 
person committing the violations. 
Regulations. 
(bXD Any person who violates any provision of any plan or 
regulation issued by the Secretary under this subtitle, or who fails 
or refuses to pay, collect, or remit any assessment or fee required of 
the person thereunder, may be assessed a civil penalty by the 
Secretary of not less than $500 nor more than $5,000 for each 
violation. Each violation shall be a separate offense. In addition to 
or in lieu of such civil penalty, the Secretary may issue an order 
requiring the person to cease and desist from continuing the viola-
tion. No penalty shall be assessed nor cease and desist order issued 
unless the person is given notice and opportunity for a hearing 
before the Secretary with respect to the violation. The order of the 
Secretary assessing a penalty or imposing a cease and desist order 
shall be final and conclusive unless the person affected by the order 
files an appeal from the Secretary's order with the appropriate 
United States court of appeals. 
(2) Any person against whom a violation is found and a civil 
penalty assessed or cease and desist order issued under paragraph 
(1) may obtain review in the court of appeals of the United States for 
the circuit in which such person resides or carries on business or in 
the United States Court of Appeals for the District of Columbia 
Circuit by filing a notice of appeal in such court within thirty days 
after the date of the order and by simultaneously sending a copy of 
the notice by certified mail to the Secretary. The Secretary shall 
promptly file in such court a certified copy of the record on which 
the violation was found. The findings of the Secretary shall be set 
aside only if found to be unsupported by substantial evidence. 
(3) Any person who fails to obey a cease and desist order after it 
has become final and unappealable, or after the appropriate court of 
appeals has entered a final judgment in favor of the Secretary, shall 
be subject to a civil penalty assessed by the Secretary, after oppor-
tunity for a hearing and for judicial review under the procedures 
specified in paragraphs (1) and (2), of not more than $500 for each 
offense. Each day during which the failure continues shall be 
deemed a separate offense. 
(4) If any person fails to pay an assessment of a civil penalty after 
it has become a final and unappealable order, or after the appro-
priate court of appeals has entered final judgment in favor of the 
Secretary, the Secretary shall refer the matter to the Attorney 
General for recovery of the amount assessed in any appropriate 
district court of the United States. In such action, the validity and 
appropriateness of the final order imposing the civil penalty shall 
not be subject to review. 
Regulations. 
7 u s e 4911. 
INVESTIGATION AND POWER TO SUBPOENA 
SEC. 1652. (a) The Secretary may make such investigations as the 
Secretary deems necessary to carry out effectively the Secretary's 
responsibilities under this subtitle or to determine whether a han-
dler or any other person has engaged or is engaging in any acts or 
practices that constitute a violation of any provision of this subtitle, 
or of any plan or regulation issued under this subtitle. For the 
purpose of an investigation, the Secretary may administer oaths and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1629 
affirmations, subpoena witnesses, compel their attendance, take 
evidence, and require the production of any books, papers, and 
documents that are relevant to the inquiry. The attendance of 
witnesses and the production of records may be required from any 
place in the United States. In case of contumacy by, or refusal to 
obey a subpoena issued to, any person, including a handler, the 
Secretary may invoke the aid of any court of the United States 
within the jurisdiction of which such investigation or proceeding is 
carried on, or where such person resides or carries on business, in 
requiring the attendance and testimony of witnesses and the produc-
tion of books, papers, and documents; and such court may issue an 
order requiring the person to appear before the Secretary, there to 
produce records, if so ordered, or to give testimony touching the 
matter under investigation. Any failure to obey such order of the 
court may be punished by the court as contempt thereof. All process 
in any such case may be served in the judicial district in which the 
person is an inhabitant or wherever the person may be found. The 
site of any hearing held under this subsection shall be within the 
judicial district in which the handler or other person is an inhab-
itant or in which the person's principal place of business is located. 
(b) No person shall be excused from attending and testifying or 
from producing books, papers, and documents before the Secretary, 
or in obedience to the subpoena of the Secretary, or in any cause or 
proceeding, criminal or otherwise, based on, or growing out of, any 
alleged violation of this subtitle, or of any plan or regulation issued 
thereunder, on the grounds that the testimony or evidence, docu-
mentary or otherwise, required of the person may tend to incrimi-
nate the person or subject the person to a penalty or forfeiture. 
However, no person shall be prosecuted or subjected to any penalty 
or forfeiture on account of any transaction, matter, or thing 
concerning which the person is compelled, after having claimed the 
person's privilege against self-incrimination, to testify or produce 
evidence, documentary or otherwise, except that any individual so 
testifying shall not be exempt from prosecution and punishment for 
perjury committed in so testifying. 
Prohibition. 
Regulation. 
REQUIREMENT OF REFERENDUM 
SEC. 1653. The Secretary shall conduct a referendum among 
producers and handlers not exempt under sections 1643(5) and 
1648(b) who, during a representative period determined by the 
Secretary, have been engaged in the production or handling of 
watermelons, for the purpose of ascertaining whether the issuance 
of a plan is approved or favored by producers and handlers. The 
referendum shall be conducted at the county extension offices. No 
plan issued under this subtitle shall be effective unless the Sec-
retary determines that the issuance of the plan is approved or 
favored by not less than two-thirds of the producers and handlers 
voting in such referendum, or by the producers and handlers of not 
less than two-thirds of the watermelons produced and handled 
during the representative period by producers and handlers voting 
in such referendum, and by not less than a majority of the producers 
and a majority of the handlers voting in the referendum. The ballots 
and other information or reports that reveal or tend to reveal the 
vote of any producer or handler or the person's volume of water-
melons produced or handled shall be held strictly confidential and 
shall not be disclosed. Any officer or employee of the Department of 
Prohibition. 
7 u s e 4912. 
Ante, p. 1623. 
Ante, p. 1625. 
99 STAT. 1630 
PUBLIC LAW 99-198—DEC. 23, 1985 
Ante, p. 1626. 
Agriculture violating the provisions hereof shall be subject to the 
penalties provided in section 1649(c) of this subtitle. 
SUSPENSION OR TERMINATION OF PLANS 
7 use 4913. 
SEC. 1654. (a) Whenever the Secretary finds that a plan or any 
provision thereof obstructs or does not tend to effectuate the de-
clared policy of this subtitle, the Secretary shall terminate or sus-
pend the operation of the plan or provision. 
(b) The Secretary may conduct a referendum at any time, and 
shall hold a referendum on request of the Board or 10 per centum or 
more of the watermelon producers and handlers eligible to vote in a 
referendum, to determine if watermelon producers and handlers 
favor the termination or suspension of the plan. The Secretary shall 
terminate or suspend the plan at the end of the marketing year 
whenever the Secretary determines that the termination or suspen-
sion is favored by a majority of those voting in the referendum, and 
who produce or handle more thaiv 50 per centum of the volume of 
the watermelons produced by the producers or handled by the 
handlers voting in the referendum. Any such referendum shall be 
conducted at county extension offices. 
AMENDMENT PROCEDURE 
7 use 4914. 
SEC. 1655. The provisions of this subtitle applicable to plans shall 
be applicable to amendments to plans. 
Provisions held 
invalid. 
Prohibition. 
7 u s e 4915. 
Prohibition. 
7 u s e 4916. 
SEPARABIUTY 
SEC. 1656. If any provision of this subtitle or the application 
thereof to any person or circumstances is held invalid, the validity 
of the remainder of this subtitle and the application of such provi-
sion to other persons and circumstances shall not be affected 
thereby. 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 1657. There are authorized to be appropriated such sums as 
are necessary to carry out the provisions of this subtitle, except that 
the funds so appropriated shall not be available for the payment of 
any expenses or expenditures of the Board in administering any 
provision of any plan issued under authority of this subtitle. 
Subtitle D—Marketing Orders 
7 u s e 674. 
Prohibition. 
7 u s e 608c 
note. 
MAXIMUM PENALTY FOR ORDER VIOLATIONS 
SEC. 1661. (a) Section 8c(14) of the Agricultural Adjustment Act (7 
U.S.C. 608c(14)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended by striking out 
"$500" and inserting in lieu thereof "$5,000". 
(b) The amendment made by subsection (a) shall not apply with 
respect to any violation described in section 8c(14) of the Agricul-
tural Adjustment Act occurring before the date of the enactment of 
this Act. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1631 
UMITATION ON AUTHORITY TO TERMINATE MARKETING ORDERS 
SEC. 1662. (a) Section 8c(16) of the Agricultural Adjustment Act (7 
U.S.C. 608c(16)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended by— 
7 USC 674. 
(1) in subparagraph (A)— 
(A) striking out "The Secretary" and inserting in lieu 
thereof "(i) Except as provided in clause (ii), the Secretary"; 
and 
(B) adding at the end thereof the following: 
"(ii) The Secretary may not terminate any order issued under this 
section for a commodity for which there is no Federal program 
established to support the price of such commodity unless the 
Secretary gives notice of, and a statement of the reasons relied upon 
by the Secretary for, the proposed termination of such order to the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
and the Committee on Agriculture of the House of Representa-
tives not later than 60 days before the date such order will be 
terminated."; and 
(2) in subparagraph (C), striking out "The termination" and 
inserting in lieu thereof "Except as otherwise provided in this 
subsection with respect to the termination of an order issued 
under this section, the termination". 
(b) The Secretary of Agriculture may not terminate any market- Prohibition, 
ing order under section 8c(16) of the of the Agricultural Adjustment 
'^ USC 608c 
Act (7 U.S.C. 608c(16)), reenacted with amendments by the Agricul- 
"°^-
tural Marketing Agreement Act of 1937, if such termination 
becomes effective before January 16,1986. 
CONFIDENTIAUTY OF INFORMATION 
SEC. 1663. Section 8d(2) of the Agricultural Adjustment Act (7 
U.S.C. 608d(2)), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, is amended by— 
(1) inserting in the first sentence after "pursuant to this 
section" the following: ", as well as information for marketing 
order programs that is categorized as trade secrets and commer-
cial or financial information exempt under section 552(bX4) of 
title 5 of the United States Code from disclosure under section 
552 of such title,"; and 
(2) inserting after the first sentence the following: "Notwith- Milk, 
standing the preceding sentence, any such information relating 
to a marketing agreement or order applicable to milk may be 
released upon the authorization of any regulated milk handler 
to whom such information pertains. The Secretary shall notify 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Agriculture of the House of 
Representatives not later than 10 legislative days before the 
contemplated release under law, of the names and addresses of 
producers participating in such marketing agreements and 
orders, and shall include in such notice a statement of reasons 
relied upon by the Secretary in making the determination to 
release such names and addresses.". 
99 STAT. 1632 
PUBLIC LAW 99-198—DEC. 23, 1985 
Subtitle E—Grain Inspection 
7 u s e 76 note. 
Report. 
Wheat. 
R^ulation. 
Prohibition. 
GRAIN STANDARDS 
SEC. 1671. Section 4 of the United States Grain Standards Act (7 
U.S.C. 76) is amended by adding at the end thereof the following: 
"(c) If the Government of any country requests that moisture 
content remain a criterion in the official grade designations of grain, 
such criterion shall be included in determining the official grade 
designation of grain shipped to such country.". 
NEW GRAIN CLASSIFICATIONS 
SEC. 1672. (a) The Secretary of Agriculture shall direct the Federal 
Grain Inspection Service and the Agricultural Research Service to 
cooperate in developing new means of establishing grain classifica-
tions taking into account characteristics other than those visually 
evident. 
(b) The Secretary shall report to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate, semiannually, with the first 
report due not later than December 31, 1985, on the status of 
cooperative efforts required under subsection (a), as such efforts 
relate to more accurately classifying types of wheat and other grains 
currently in use. 
STUDY OF GRAIN STANDARDS 
SEC. 1673. (a)(1) The Office of Technology Assessment shall con-
duct a study of United States grain export quality standards and 
grain handling practices. 
(2) The Office of Technology Assessment shall conduct such 
study— 
(A) in consultation with the Secretary of Agriculture; and 
(B) in accordance with Section 3(d) of Technology Assessment 
. Act of 1972 (2 U.S.C. 472(d)). 
(b) In conducting such study, the Office of Technology Assessment 
shall— 
(1) evaluate the competitive problems the United States faces 
in international grain markets that may be attributed to grain 
quality standards and handling practices rather than price; 
(2) identify the extent to which United States grain export 
quality standards and handling practices have contributed 
toward the recent decline in United States grain exports; and 
(3) perform a comparative analysis between— 
(A) the grain quality standards and practices of the 
United States and the major grain export competitors of the 
United States; 
(B) the grain handling technology of the United States 
and the major grain export competitors of the United 
States; 
(4) evaluate the consequences on United States export grain 
sales, the cost of exporting grain, and the prices received by 
farmers should United States export grain elevators be subject, 
by law or regulation, to requirements that— 
(A) no dockage or foreign material (including but not 
limited to dust or particles of whatever origin) once re-
moved from grain shall be recombined with any grain if 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1633 
there is a possibility that the recombined product may be 
exported from the United States; 
(B) no dockage or foreign material of any origin may be Prohibition, 
added to any grain that may be exported if the result will 
be to reduce the grade or quality of the grain or to reduce 
the ability of the grain to resist spoilage; and 
(C) no blending of grain with a similar grain of different Prohibition, 
moisture content may be permitted if the difference be-
tween the moisture contents of the grains being blended is 
more than 1 percent; and 
(5) evaluate the current method of establishing grain classi- Exports, 
fication, the feasibility of utilizing new technology to correctly 
classify grains, and the impact of new seed varieties on exports 
and users of grain. 
(c) Not later than December 1, 1986, the Office of Technology Report. 
Assessment shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report containing the results of 
the study required under this section, together with such comments 
and recommendations for the improvement of United States grain 
export quality standards and handling practices as the Office of 
Technology Assessment considers appropriate. 
TITLE XVII—RELATED AND MISCELLANEOUS MATTERS 
Subtitle A—Processing, Inspection, and Labeling 
POULTRY INSPECTION 
SEC. 1701. (a) Section 17 of the Poultry Products Inspection Act (21 
U.S.C. 466) is amended by adding at the end thereof the following 
new subsection: 
"(dXD Notwithstanding any other provision of law, all poultry, or 
parts or products thereof, capable of use as human food offered for 
importation into the United States shall— 
"(A) be subject to the same inspection, sanitary, quality, 
species verification, and residue standards applied to products 
produced in the United States; and 
"(B) have been processed in facilities and under conditions 
that are the same as those under which similar products are 
processed in the United States. 
"(2) Any such imported poultry article that does not meet such 
standards shall not be permitted entry into the United States. 
"(3) The Secretary shall enforce this subsection through— 
"(A) random inspections for such species verification and for 
residues; and 
"(B) random sampling and testing of internal organs and fat 
of carcasses for residues at the point of slaughter by the export-
ing country, in accordance with methods approved by the 
Secretary.", 
(b) The amendment made by this section shall become effective 6 
months after the date of enactment of this Act. 
Prohibition. 
Effective date. 
21 u s e 466 note. 
99 STAT. 1634 
PUBLIC LAW 99-198—DEC. 23,1985 
Prohibition. 
Animals. 
Prohibition. 
Study. 
Regulations. 
Animals. 
Reports. 
INSPECTION AND OTHER STANDARDS FOR IMPORTED MEAT AND MEAT 
FOOD PRODUCTS 
SEC. 1702. (a) Section 20(f) of the Federal Meat Inspection Act (21 
U.S.C. 620(f)) is amended by striking out the last sentence and 
inserting in lieu thereof the following: "Each foreign country from 
which such meat articles are offered for importation into the United 
States shall obtain a certification issued by the Secretary stating 
that the country maintains a program using reliable analytical 
methods to ensure compliance with the United States standards for 
residues in such meat articles. No such meat article shall be per-
mitted entry into the United States from a country for which the 
Secretary has not issued such certification. The Secretary shall 
periodically review such certifications and shall revoke any certifi-
cation if the Secretary determines that the country involved is not 
maintaining a program that uses reliable analytical methods to 
ensure compliance with United States standards for residues in such 
meat articles. The consideration of any application for a certifi-
cation under this subsection and the review of any such certifi-
cation, by the Secretary, shall include the inspection of individual 
establishments to ensure that the inspection program of the foreign 
country involved is meeting such United States standards.". 
(b) Section 20 of the Federal Meat Inspection Act (21 U.S.C. 620) is 
amended by adding at the end thereof the following: 
"(g) The Secretary may prescribe terms and conditions under 
which cattle, sheep, swine, goats, horses, mules, and other equines 
that have been administered an animal drug or antibiotic banned 
for use in the United States may be imported for slaughter and 
human consumption. No person shall enter cattle, sheep, swine, 
goats, horses, mules, and other equines into the United States in 
violation of any order issued under this subsection by the 
Secretary.". 
EXAMINATION AND REPORT OF LABEUNG AND SANITATION STANDARDS 
FOR IMPORTATION OF AGRICULTURAL COMMODITIES 
SEC. 1703. (a)(1) The Comptroller General of the United States 
shall conduct a study of Department of Health and Human Services 
and Department of Agriculture product purity and inspection 
requirements and regulations currently in effect for imported food 
products and agricultural commodities. The study shall evaluate the 
effectiveness of Federal regulations and inspection procedures to 
detect prohibited chemical residues and foreign matter in or on food 
or raw agricultural commodities in processed or unprocessed form. 
(2) The study shall include a review of Federal regulations and 
inspection procedures currently in effect to detect in imported live 
animals chemicals and chemical residues the use of which is prohib-
ited in the production of domestic live animals. 
(3) The study shall include recommendations regarding the fea-
sibility of requiring that quality control reports relating to product 
purity and inspection procedures be submitted from processing 
plants certified by the Secretary of Agriculture as eligible to export 
meat and meat food products to the United States. 
(4) The study shall include recommendations on the adequacy of 
the Department of Health and Human Services and the Department 
of Agriculture to prescribe and enforce food sanitation requirements 
PUBLIC LAW 99-198—DEC. 23,1985 
99 STAT. 1635 
and chemical and chemical residue standards for imported agricul-
tural commodities and food products. 
(b) The study also shall evaluate the feasibility of requiring all 
imported meat and meat food products, agricultural commodities, 
and products of such commodities to bear a label stating the country 
of origin of such commodities and products. The study shall include 
an evaluation of the feasibility of requiring any person owning or 
operating an eating establishment that serves any meat or meat 
food product required to be marked or labeled under paragraph (1) 
or (2) of section 7(c) of the Federal Meat Inspection Act (21 U.S.C. 
607(c)) to inform individuals purchasing food from such establish-
ment that meat or meat food products served at the establishment 
may be imported articles— 
(1) by displaying a sign indicating that imported meat is 
served in such establishment; or 
(2) by providing the information specified in paragraph (1) of 
such section 7(c) on the menus offered to such individuals. 
(c) The Secretary shall submit the results of the study conducted 
under subsection (a) to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate not later than one year after the date of 
enactment of this Act. 
POTATO INSPECTION 
note. 
SEC. 1704. The Secretary of Agriculture shall perform random 
Report, 
spot checks of potatoes entering through ports of entry in the 
1^^^^^ 
northeastern United States. The Secretary of Agriculture shall 
report to the Comnjittee on Agriculture, Nutrition, and Forestry of 
the Senate and the Committee on Agriculture of the House of 
Representatives the results of such spot checks. 
Subtitle B—Agricultural Stabilization and Conservation 
Committees 
LOCAL COMMITTEES 
SEC. 1711. (a) The fifth paragraph of section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) is 
amended— 
(1) by striking out the third sentence and inserting in lieu 
thereof the following: 
"There shall be 3 local administrative areas in each county, except 
that, in counties with less than one hundred and fifty farmers, the 
county committee selected as hereinafter provided may reduce the 
number of local administrative areas to one, and except that the 
Secretary may include more than one county or parts of different 
counties in a local administrative area when the Secretary deter-
mines that there are insufficient farmers in an area to establish a 
slate of candidates for a community committee and hold an election. 
(2) by striking out "annually" in the fourth sentence (as it 
existed before the amendments made by this section); 
(3) by inserting after the fourth sentence (as it existed before 
the amendments made by this section) the following new sen-
tences: "Each member of a local committee shall be elected for a 
term of 3 years. Each local committee shall meet (A) once each 
year and shall receive compensation for such meeting by the 
Secretary at not less than the level in effect on December 31, 
99 STAT. 1636 
PUBLIC LAW 99-198—DEC. 23, 1985 
1985, and (B) at the direction of the county committee and with 
the approval of the State committee, such additional times 
during the year as may be necessary to carry out this section 
without compensation. The meetings of a local committee shall 
be held on different days of the year."; and 
(4) by inserting after the eighth sentence (as it existed before 
the amendments made by this section) the following new sen-
tences: "The local committees in each county shall (A) in a 
county in which there is more than one local committee, serve 
as advisors and consultants to the county committee; (B) periodi-
cally meet with the county committee and State committee to 
be informed on farm program issues; (C) communicate with 
producers within their communities on issues or concerns 
regarding farm programs; (D) report to the county committee, 
the State committee, and other interested persons on changes 
to, or modifications of, farm programs recommended by produc-
ers in their communities; and (E) perform such other functions 
as are required by law or as the Secretary may specify. The 
Secretary shall ensure that information concerning changes in 
Federal laws in effect with respect to agricultural programs and 
the administration of such laws are communicated in a timely 
manner to local committees in areas that contain agricultural 
producers who might be affected by such changes.". 
Effective date. 
(bXD The amendments made by this section shall become effective 
ffi'n^^^m 
°^ January 1,1986, except that the amendments made by clauses (2) 
note 
^^^ ^
^
^ °^ subsection (a) shall not apply with respect to the term of 
office of any member of a local committee elected before January 1, 
1986. 
(2) If the number of local administrative areas and local commit-
tees in a county increases as a result of a change in the number of 
local administrative areas in the county under section 8(b) of the 
l6USC590h. 
Soil O)nservation and Domestic Allotment Act (as amended by 
subsection (aXD), any member of a local committee in such county 
elected before January 1, 1986, shall serve the unexpired portion of 
any term commenced before the date of such increase as a member 
of the local committee for the administrative area in which such 
member resides. 
COUNTY COMMITTEES 
SEC. 1712. The first sentence of the fifth paragraph of section 8(b) 
of the Soil C!onservation and Domestic Allotment Act (16 U.S.C. 
590h(b)) is amended— 
(1) by inserting "and as otherwise directed by law with respect 
to other programs and functions," after "Alaska,"; and 
(2) by inserting a semicolon and "and the Secretary may use 
the services of such committees in carrying out other programs 
and functions of the Department of Agriculture" before the 
period at the end thereof. 
SALARY AND TRAVEL EXPENSES 
SEC. 1713. (a) Section 388(b) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1388(b)) is amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end thereof the following new paragraph: 
"(2XA) The Secretary shall provide compensation to members of 
such county committees (at not less than the level in effect on 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1637 
December 31, 1985 for county committees) for work actually per-
formed by such persons in cooperating in carrying out the Acts in 
connection with which such committees are used. 
"(B) The rate of compensation received by such persons for such 
work on the date of enactment of the Food Security Act of 1985 shall 
be increased at the discretion of the Secretary.". 
(b) Section 388 of such Act is amended by adding at the end 7 use 1388 
thereof the following new subsection: 
"(cXD The Secretary shall make payments to members of local, 
county, and State committees to cover expenses for travel incurred 
by such persons (including, in the case of a member of a local or 
county committee, travel between the home of such member and the 
local county office of the Agricultural Stabilization and Conserva-
tion Service) in cooperating in carrsdng out the Acts in connection 
with which such Committees are used. 
"(2) Such travel expenses shall be paid in the manner authorized 
under section 5703 of title 5, United States Code, for the payment of 
expenses and allowances for individuals employed intermittently in 
the Federal Government service.". 
(c) The amendments made by this section shall become effective 
on January 1,1986. 
Effective date. 
7 u s e 1388 note. 
Subtitle C—National Agricultural Policy Commission Act of 1985 
SHORT TITLE 
SEC. 1721. This subtitle may be cited as the "National Agricul-
tural Policy Commission Act of 1985". 
National 
Agricultural 
Policy 
eommission Act 
of 1985. 
7 u s e 5001 note 
DEFINITIONS 
SEC. 1722. As used in this subtitle— 
(1) the term "Commission" means the National Commission 
on Agricultural Policy established under section 1723; 
(2) the term "Governor" means the chief executive officer of a 
State; and 
(3) the term "State" means the fifty States, the District of 
Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin 
Islands, American Samoa, or the Trust Territory of the Pacific 
Islands. 
ESTABUSHMENT OF COMMISSION 
SEC. 1723. (a) There is established a National Commission on 
Agricultural Policy to conduct a study of— 
(A) the structure, procedures, and methods of formulating and 
administering agricultural policies, programs, and practices of 
the United States; and 
(B) conditions in rural areas of the United States and the 
manner in which such conditions relate to the provision of 
public services by Federal, State, and local governments. 
(b) In addition to the members specified in subsection (c), the 
Commission shall be composed of fifteen members appointed by the 
President and selected as follows: 
(1) The President shall request Governors of States to nomi-
nate members representing individuals and industries directly 
affected by agricultursil policies, including— 
7 u s e 5001. 
Infra. 
National 
eommission on 
Agricultural 
Policy. 
Study. 
7 u s e 5002. 
Rural areas. 
State and local 
governments. 
President of 
U.S. 
99 STAT. 1638 
PUBLIC LAW 99-198—DEC. 23, 1985 
(A) producers of mcgor agricultural commodities or the 
products thereof in the United States; 
(B) processors or refiners of United States agricultural 
commodities or the products thereof; 
(C) exporters, transporters, or shippers of United States 
agricultural commodities or the products thereof; 
(D) suppliers of agricultural equipment or materials to 
United States farmers; 
(E) providers of financing or credit for agricultural pur-
poses; and 
(F) consumers of United States agricultural commodities 
or the products thereof. 
(2) The Governor of a State may submit to the President a list 
of not less than two, nor more than four, nominees to serve on 
the Commission who represent individuals and industries re-
ferred to in paragraph (1). 
President of U.S. 
(3XA) Except as provided in subparagraphs (B) and (C), the 
President shall appoint 15 individuals from a total of, to the 
extent practicable, not less than sixty individuals nominated by 
States under paragraph (2) to serve on the Commission. 
(B) The President may appoint to the Commission not more 
than— 
(i) one individual nominated by a particular State; £uid 
(ii) seven individuals of the same political party. 
(C) If the President determines that the individuals nomi-
nated by States under paragraph (2) are not broadly representa-
tive of the individuals and industries referred to in paragraph 
Prohibition. 
(1), the President may substitute no more than three other 
individuals t5 serve on the Commission who represent such 
individuals and industries. 
(cXD The chairmen and ranking minority members of the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
shall— 
(A) serve as ex officio members of the Commission; and 
(B) have the same voting rights as the members of the 
Commission selected and appointed under subsection (b). 
(2) The chairmen and ranking minority members may designate 
other members of the respective committees to serve in their stead 
as members of the Commission. 
(d) A vacancy in the Commission shall be filled in the manner in 
which the original appointment was made. 
(e) The Commission shall elect a chairman from emiong the mem-
bers of the Commission who are selected and appointed under the 
provisions of subsection (b). 
(f) The Commission shall meet at the call of the chairman or a 
majority of the Commission. 
CONDUCT OF STUDY 
7 use 5003. 
SEC. 1724. The Commission shall study-
C
D the structure, procedures, and methods of formulating and 
administering agricultural policies, programs, and practices of 
the United States, including— 
(A) the effectiveness of existing agricultural programs in 
improving farm income; 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1639 
(B) the manner in which the programs may be improved 
to retain a family-farm system of agricultural production; 
(C) the effect of legislative and administrative changes in 
agricultural policy on planning and long-term profitability 
of farmers; 
(D) the effect on farmers of the existing system and 
structure of formulating and implementing agriculture 
policy; 
(E) the effect of national and international economic 
trends on United States agricultural production; 
(F) the means of adjusting the agricultural policies, pro-
grams, and practices of the United States to meet changing 
economic conditions; 
(G) potential areas of conflict and compatibility between 
the structure of making agricultural policy and long-term 
stability in policy and practices; 
(H) changing demographic trends and the manner in 
which such trends affect agriculture and agricultural policy 
consistency; and 
(I) the role of State and local governments in future 
agricultural policy; and 
(2) conditions in rural areas of the United States and the 
manner in which such conditions relate to the provision of 
public services by Federal, State, and local governments, includ-
ing an analysis of— 
(A) conditions that reflect the declining rural economy, 
including economic and demographic trendte, rural and agri-
cultural income and debt, and other appropriate social and 
economic indicators of such conditions; 
(B) trends and fiscal conditions of rural local govern-
ments; 
(C) trends and patterns in the delivery of rural public 
services; 
(D) the impact of the deregulation of transportation, tele-
communications, and banking on the rural economy and 
delivery of public services; and 
(E) trends and patterns of Federal, State, and local 
government financing, delivery, and regulation of public 
services in rural areas of the United Stat^. 
REPORTS 
SEC. 1725. Not later than twelve months after the date of the 
enactment of this Act, and each twelve months thereafter during 
the existence of the Commission, the Commission shall submit an 
annual report to the President and Congress containing the findings 
and recommendations of the Commission with respect to the mat-
ters referred to in section 1724. The Commission may not comment 
on legislation pending before Congress unless specifically requested 
to do so by the Chairman of an appropriate committee. 
State and local 
governments. 
State and local 
governments. 
Transportation. 
Communications 
and tele-
communications. 
Banks and 
banking. 
Regulations. 
Rural areas. 
7 u s e 5004. 
Ante, p. 1638. 
ADMINISTRATION 
SEC. 1726. (a) The heads of executive agencies, the General 
Accounting Office, the International Trade Commission, and the 
Congressional Budget Office, to the extent permitted by law, shall 
provide the Commission with such information as the Com-
7 u s e 5005. 
99 STAT. 1640 
PUBLIC LAW 99-198—DEC. 23, 1985 
5 u s e 5101 
et seq. 
5 u s e 5331 
et seq. 
Prohibition. 
Records. 
5 u s e app. 
5 u s e app. 
mission may require in carrjdng out the duties and functions of the 
Commission. 
(bXD Except as provided in paragraph (2), members of the 
Commission shall serve without any additional compensation for 
work performed on the Commission. 
(2) Such members who are private citizens of the United States 
may be allowed travel expenses, including a per diem in lieu of 
subsistence, as authorized by law for persons serving intermittently 
in the Government service under sections 5701 through 5707 of title 
5, United States Code. 
(c) Subject to the availability of funds appropriated in advance and 
such rules as may be adopted by the Commission and without regard 
to the provisions of title 5, United States Code, governing appoint-
ments in the competitive service or the provisions of chapter 51 and 
subchapter III of chapter 53 of such title relating to the classifica-
tion and General Schedule pay rates, the Chairman of the Commis-
sion may appoint and fix the compensation of a director and such 
additional 
stsiff 
personnel 
as the 
Commission 
determines 
are necessary to carry out duties and functions of the Commission. 
(dXD On the request of the Commission, the Secretary of Agri-
culture shall furnish the Commission with such personnel and 
support services as are necessary to assist the Commission in carry-
ing out duties and functions of the Commission. 
(2) On the request of the Commission, the heads of other executive 
agencies and the General Accounting Office may furnish the 
Commission with such personnel and support services as the head of 
the agency or Office and the Chairman of the Commission agree are 
necessary to assist the Commission in carrying out duties £uid 
functions of the Commission. 
(3) The Commission shall not be required to pay or reimburse an 
agency or the Office for personnel and support services provided 
under this section. 
(eXD In accordance with section 12 of the Federal Advisory 
Committee Act, the Secretary of Agriculture shall maintain recor<fe 
o
f
— 
(A) the disposition of any funds that may be at the disposal of 
the Commission; and 
(B) the nature and extent of activities of the Commission. 
(2) The Comptroller (Jeneral of the United States shall have access 
to such records for the purpose of audit and examination. 
(0 The Commission shall be exempt from sections 7(d), 10(e), 10(f), 
and 14 of the Federal Advisory Committees Act and sections 4301 
through 4308 of title 5 of the United States Code. 
AUTHORIZATION OF APPROPRIATIONS 
7 use 5006. 
SEC. 1727. (a) There are authorized to be appropriated such sums 
as are necessary to carry out this subtitle. 
(b) To the maximum extent practicable, this subtitle shall be 
carried out using funds otherwise available to the Secretary of 
Agriculture for the expenses of advisory committees. 
TERMINATION 
7 use 5007. 
SEC. 1728. This subtitle and the Commission shall terminate five 
years after the date of enactment of this Act. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1641 
Subtitle C—National Aquaculture Improvement Act of 1985 
National 
Aquaculture 
SHORT TITLE 
i T o n l s f 
SEC. 1731. This subtitle may be cited £is the "National Aqua- note. 
culture Improvement Act of 1985". 
FINDINGS, PURPOSE, AND POUCY 
SEC. 1732. Section 2 of the National Aquaculture Act of 1980 (16 
U.S.C. 2801) is amended— 
(1) by amending subsection (aX3)— 
(A) by striking out "10 per centum" and inserting in lieu 
thereof "13 percent", and 
(B) by striking out "3 per centum" and inserting in lieu 
thereof "6 percent"; 
(2) by amending subsection (aX7) by inserting "scientific," 
before "economic, , and by inserting "the lack of supportive 
Government 
policies," 
immediately 
after 
"management 
information,"; 
(3) by amending subsection (b)— 
(A) by striking out "and" at the end of pareigraph (2), 
(B) by redesignating pareigraph (3) as paragraph (4), and 
(C) by inserting after paragraph (2) the following new 
paragraph: 
"(3) establishing the Department of Agriculture as the lead 
Federal agency with respect to the coordination and dissemina-
tion of national aquaculture information by designating the 
Secretary of Agriculture as the permanent chairman of the 
coordinating group and by establishing a National Aquaculture 
Information Center within the Department of Agriculture; 
and"; and 
(4) by amending subsection (c) by inserting "for reducing the 
United States trade deficit in fisheries products," immediately 
after "potential" in the first sentence. 
DEFINITIONS 
SEC. 1733. Section 3 of the National Aquaculture Act of 1980 (16 
U.S.C. 2802) is amended— 
(1) by redesignating paragraph (8) as paragraph (9); and 
(2) by inserting after paragraph (7) the following new para-
graph: 
"(8) The term 'Secretary' means the Secretary of Agri-
culture.". 
NATIONAL AQUACULTURE DEVELOPMENT PLAN 
SEC. 1734. Section 4 of the National Aquaculture Act of 1980 (16 
U.S.C. 2803) is amended as follows: 
(1) Subsection (a) is amended— 
(A) by striking out "Secretaries" each place it appears in 
paragraph (2) and inserting in lieu thereof "Secretary"; 
(B) by amending the first sentence of pareigraph (2) by 
inserting "the Secretary of Commerce and the Secretary of 
the Interior," immediately after "shall consult with" 
(C) by striking out paragraph (3). 
(2) Subsection (b) is amended— 
99 STAT. 1642 
PUBLIC LAW 99-198—DEC. 23, 1985 
(A) by inserting "to" immediately after "determine" in 
paragraph (1); 
(B) by striking out "Secretaries deem" in paragraph (6) 
and inserting in heu thereof "Secretary deems"; and 
(C) by striking out "Secretaries" in the matter following 
pargigraph (6) and inserting in lieu thereof "Secretary". 
(3) Subsection (c) is amended— 
(A) by striking out "Secretaries determine" in paragraph 
(1) and inserting in lieu thereof "Secretary determines"; 
(B) by striking out "and" at the end of paragraph (2XA); 
(C) by striking out the period at the end of paragraph 
(2)(B) and inserting in lieu thereof "; and"; and 
(D) by inserting immediately after paragraph (2XB) the 
following new subparagraph: 
"(C) the concurrence of the Secretaries.". 
FUNCTIONS AND POWERS OF SECRETARIES 
SEC. 1735. Section 5 of the National Aquaculture Act of 1980 (16 
U.S.C. 2804) is amended as follows: 
(1) Subsection (c) is amended to read as follows: 
"(c) INFORMATION SERVICES.—(1) In addition to performing such 
other mandatory functions under this Act— 
"(A) the Secretaries shall collect and analyze scientific, tech-
nical, legal, and economic information relating to aquaculture, 
including acreages, water use, production, marketing, culture 
techniques, and other relevant matters; 
"(B) the Secretary shall— 
"(i) establish, within the Department of Agriculture, a 
National Aquaculture Information Center that shall serve 
as a repository for the information generated under 
subparagraph (A) and other provisions of this Act and shall, 
on a request basis, make that information available to the 
public, 
"(ii) arrange with foreign nations for the exchange of 
information relating to aquaculture and support a trans-
lation service, and 
Study. 
"(iii) conduct a study of the extent to which the United 
States aquaculture industry has access to relevant Federal 
programs which assist the agricultural sector and report to 
Congress on the findings of such study by December 31, 
1986; 
Study. 
"(C) the Secretary of Commerce shall conduct a study, and 
report to Congress thereon by December 31, 1987, to determine 
whether existing capture fisheries could be adversely affected 
by competition from products produced by commercial 
aquacultural enterprises and include in such study an assess-
ment of any adverse effect, by species and by geographical 
region, on such fisheries and recommend measures to amelio-
rate any such effect; and 
Study. 
"(D) the Secretary of the Interior, in consultation with the 
Secretary of Commercej shall undertake a study, and report to 
Congress thereon by December 31, 1987, to identify exotic spe-
cies introduced into the United States waters as a result of 
aquaculture activities, and to determine the potential benefits 
and impacts of the introduction of exotic species. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1643 
"(2) Any production information submitted to the Secretaries 
under paragraph (IXA) shall be confidential and may only be dis-
closed &
" required under court order. The Secretaries shall preserve 
such confidentiality. The Secretaries may release or make public 
any information in any aggregate or summary form that does not 
directly or indirectly disclose the identity, business transactions, or 
trade secrets of any person who submits such information.". 
(2) Subsection (d) is amended— 
(A) by striking out "Secretaries" each place it appears 
and inserting in lieu thereof "Secretary"; 
(B) by inserting "and in consultation with the Secretary 
of Commerce and the Secretary of the Interior," imme-
diately after "group" in the first sentence; 
(C) in the second sentence by— 
(i) striking out "EJach such" and inserting in lieu 
thereof "Such"; and 
(ii) striking out "under section 4(d)"; 
(D) by striking out "deem" in the second sentence and 
inserting in lieu thereof "deems"; and 
(E) by striking out the last sentence and inserting in lieu Report, 
thereof "The report required by this subsection shall be 
submitted to the Congress not later than February 1, 
1988.". 
COORDINATION OF NATIONAL ACnVITIES REGARDING AQUACULTURE 
SEC. 1736. Section 6 of the National Aquaculture Act of 1980 (16 
U.S.C. 2805) is amended as follows: 
(1) Subsection (a) is amended by inserting ", who shall be the 
permanent chairman of the coordinating group" immediately 
after "Agriculture" in paragraph (1). 
(2) Subjection (c) is repesded. 
(3) Subsections (d), (e), and (f) are redesignated as subsections 
(c), (d), and (e), respectively. 
(4) Subsection (e), as redesignated by paragraph (3), is amend-
ed by striking out "subsection (d)" in the second sentence and 
inserting in lieu thereof "subsection (c)". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 1737. Section 10 of the National Aquaculture Act of 1980 (16 98 Stat. 3407. 
U.S.C. 2809) is amended by striking out "1985" in each of para-
f
raphs (1), (2), and (3) and inserting in lieu thereof "1985, and 
1,000,000 for each of fiscal years 1986,1987, and 1988". 
Subtitle E—Special Study and Pilot Projects on Futures Trading 
FINDINGS AND DECLARATION OF POUCY 
SEC. 1741. (a) Congress finds that there is a need for investigation 
7 use 1421 note. 
and development of alternative price support programs carried out 
by the Department of Agriculture; that agricultural producers and 
others have insufficient knowledge concerning the nature and 
extent of price stabilization available in the private sector; and that 
more information is needed to accurately assess the Federal budg-
etary impact of producer participation in such private sector risk 
avoidance services. 
99 STAT. 1644 
PUBLIC LAW 99-198—DEC. 23, 1985 
Research and 
(b) It is declared to be the policy of the United States that the 
development. 
Department of Agriculture conduct economic research to develop 
more information concerning the manner in which producers might 
utilize agricultural commodity futures markets and options markets 
in connection with their marketing of the agricultural commodities 
of their own production; and to determine the nature and effect 
widespread utilization of such markets by producers would have on 
the prices they receive for their agricultural commodities, and to 
determine the feasibility of interfacing traditional Federal price 
support programs with private sector risk avoidance services. 
STUDY BY THE DEPARTMENT OF AGRICULTURE 
7 use 1421 note. 
SEC. 1742. The Secretary of Agriculture shall conduct a study 
utilizing the services of the various agencies of the United States, 
including, but not limited to, the United States Department of 
Agriculture and the Commodity Futures Trading Commission, to 
determine the manner in which agricultural commodity futures 
markets and agricultural commodity options markets might be used 
by producers of agricultural commodities traded on such markets to 
provide such producers with price stability and income protection; 
the extent of the price stability and income protection producers 
might reasonably expect to receive from such participation; and of 
the Federal budgetary impact of such participation compared with 
the cost of the applicable established price support programs for 
agricultural commodities. The Secretary shall report the results of 
such study to the Committee on Agriculture, Nutrition and Forestry 
of the Senate and to the Committee on Agriculture of the House of 
Representatives on or before December 31,1988. 
PILOT PROGRAM 
7 use 1421 note. 
SEC. 1743. In connection with the study to be undertaken by the 
Supra. 
Secretary as required by section 1742 of this subtitle, the Secretary 
shall conduct a pilot program with respect to the crops of wheat, 
feed grains, soybean, and cotton in at least 40 counties which 
actively produce reasonable quantities of such major agricultural 
commoidities traded on the commodity futures markets and the 
commodity options markets. The Secretary shall, in cooperation 
with the futures and options industry and the chairman of the 
commodity futures trading commission, conduct an extensive edu-
cational program for producers in the counties selected for the pilot 
program. The program shall, among other things, provide that a 
reasonable number of producers, as determined by the Secretary, 
may at their election and in accordance with pilot program require-
ments developed by the Secretary, participate in the trading of 
designated agricultural commodities on a futures market or options 
market in a manner designed to protect and maximize the return on 
agricultural commodities of their own production marketed by them 
in accordance with program requirements. Participating producers 
shall be assured by the Secretary under the terms of the program, 
using funds of the Commodity Credit Corporation^ that the net 
return received for the agricultural commodities that such pro-
ducers allocate to the program in the manner specified by the 
Secretary is no less than the price support loan level for such 
agricultural commodity in the county where it is produced. In the 
formulation of the pilot program the Secretary shall utilize the 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1645 
services of an advisory panel selected by the Secretary consisting of 
producers, processors, exporters, and futures and options traders on 
organized futures exchanges. 
Subtitle F—Animal Welfare 
FINDINGS 
SEC. 1751. For the purposes of this subtitle, the Congress finds 7 use 2i3i note, 
that— 
(1) the use of animals is instrumental in certain research and Research and 
education for advancing knowledge of cures and treatment for development, 
diseases and injuries which afflict both humans and animals; 
(2) methods of testing that do not use animals are being and 
continue to be developied which are faster, less expensive, and 
more accurate than traditional animal experiments for some 
purposes and further opportunities exist for the development of 
these methods of testing; 
(3) measures which eliminate or minimize the unnecessary 
duplication of experiments on animals can result in more 
productive use of Federal funds; and 
(4) measures which help meet the public concern for labora-
tory animal care and treatment are important in assuring that 
research will continue to progress. 
STANDARDS AND CERTIFICATION PROCESS 
SEC. 1752. (a) Section 13 of the Animal Welfare Act (7 U.S.C. 2143) 
is amended by— 
(1) redesignating subsections (b) through (d) as subsections (f) 
through (h) respectively; and 
(2) striking out the first two sentences of subsection (a) and 
inserting in lieu thereof the following new sentences: "(1) The 
Secretary shall promulgate standards to govern the humane 
handling, care, treatment, and transportation of animals by 
dealers, research facilities, and exhibitors. 
"(2) The standards described in paragraph (1) shall include mini-
mum requirements— 
"(A) for handling, housing, feeding, watering, sanitation, ven-
tilation, shelter from extremes of weather and temperatures, 
adequate veterinary care, and separation by species where the 
Secretary finds necessary for humane handling, care, or treat-
ment of animals; and 
"(B) for exercise of dogs, as determined by an attending 
veterinarian in accordance with general standards promulgated 
by the Secretary, and for a physical environment adequate to 
promote the psychological well-being of primates. 
"(3) In addition to the requirements under paragraph (2), the 
standards described in paragraph (1) shall, with respect to animals 
in research facilities, include requirements— 
"(A) for animal care, treatment, and practices in experi-
mental procedures to ensure that animal pain and distress are 
minimized, including adequate veterinary care with the ap-
propriate use of anesthetic, analgesic, tranquilizing drugs, or 
euthanasia; 
99 STAT. 1646 
PUBLIC LAW 99-198—DEC. 23, 1985 
Prohibition. 
7 use 2143. 
Prohibition. 
R^^ations. 
Research and 
development. 
Prohibition. 
Research and 
development. 
"(B) that the principal investigator considers alternatives to 
any procedure likely to produce pain to or distress in an experi-
mental animal; 
"(C) in any practice which could cause pain to animals— 
"(i) that a doctor of veterinary medicine is consulted in 
the planning of such procedures; 
"(ii) for the use of trsuiquilizers, analgesics, and an-
esthetics; 
"(iii) for pre-surgical and post-surgical care by laboratory 
workers, in accordance with established veterinary medical 
and nursing procedures; 
"(iv) against the use of paralytics without anesthesia; and 
"(v) that the withholding of tranquilizers, anesthesia, 
analgesia, or euthanasia when scientifically necessary shall 
continue for only the necessary period of time; 
"(D) that no animal is used in more than one major operative 
experiment from which it is allowed to recover except in cases 
of— 
"(i) scientific necessity; or 
"(ii) other special circumstances as determined by the 
Secretary; and 
"(E) that exceptions to such standards may be made only 
when specified by research protocol and that any such excep-
tion shall be detailed and explained in a report outlined under 
paragraph 
(7) and 
filed 
with the 
Institutional 
Animal 
Committee.", 
(b) Section 13(a) of such Act is further amended— 
(1) by designating the third and fourth sentences as para-
graph (4); 
(2) by designating the fifth sentence as paragraph (5); and 
(3) by striking out the last sentence and inserting in lieu 
thereof the following: 
"(6XA) Nothing in this Act— 
"(i) except as provided in paragraphs (7) of this subsection, 
shall be construed as authorizing the Secretary to promulgate 
rules, regulations, or orders with regard to the design, outlines, 
or guidelines of actual research or experimentation by a re-
search facility as determined by such research facility; 
"(ii) except £is provided subparagraphs (A) and (C) (ii) through 
(v) of paragraph (3) and paragraph (7) of this subsection, shall be 
construed as authorizing the Secretary to promulgate rules, 
regulations, or orders with regard to the performance of actual 
research or experimentation by a research facility as deter-
mined by such research facility; and 
"(iii) shall authorize the Secretary, during inspection, to inter-
rupt the conduct of actual research or experimentation. 
"(B) No rule, regulation, order, or part of this Act shall be 
construed to require a research facility to disclose publicly or to the 
Institutional Animal Committee during its inspection, trade secrets 
or commercial or financial information which is privileged or 
confidential. 
"(7XA) The Secretary shall require each research facility to show 
upon inspection, and to report at least annually, that the provisions 
of this Act are being followed and that professionally acceptable 
standards governing the care, treatment, and use of animals are 
being followed by the research facility during actual research or 
experimentation. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1647 
"(B) In complying with subparagraph (A), such research facilities 
shgdl provide— 
"(i) information on procedures likely to produce pain or dis-
tress in any animal and assurances demonstrating that the 
principal 
investigator 
considered 
alternatives 
to 
those 
procedures; 
"(ii) assurances satisfactory to the Secretary that such facility 
is adhering to the standards described in this section; and 
"(iii) an explanation for any deviation from the standards 
promulgated under this section. 
"(8) Paragraph (1) shall not prohibit any State (or a political 
subdivision of such State) from promulgating standards in addition 
to those standards promulgated by the Secretary under paragraph 
(1).". 
(c) Section 13 of such Act is further amended by inserting after 
sulssection (a) the following new subsections: 
"(bXD The Secretary shall require that each research facility 
establish at least one Committee. Each Committee shall be ap-
pointed by the chief executive officer of each such research facility 
and shall be composed of not fewer than three members. Such 
members shall possess sufficient ability to assess animal care, treat-
ment, and practices in experimental research as determined by the 
needs of the research facility and shall represent society's concerns 
regarding the welfare of animal subjects used at such facility. Of the 
members of the Committee— 
"(A) at least one member shall be a doctor of veterinary 
medicine; 
"(B) at least one member— 
"(i) shall not be affiliated in any way with such facility 
other than as a member of the Committee; 
"(ii) shall not be a member of the immediate family of a 
person who is affiliated with such facility; and 
"(iii) is intended to provide representation for general 
community interests in the proper care and treatment of 
animals; and 
"(C) in those cases where the Committee consists of more than 
three members, not more than three members shall be from the 
same administrative unit of such facility. 
"(2) A quorum shall be required for all formal actions of the 
Committee, including inspections under paragraph (3). 
"(3) The Committee shall inspect at least semiannually all animal 
study areeis and animal facilities of such research facility and review 
as part of the inspection— 
"(A) practices involving pain to animals, £uid 
"(B) the condition of animals, 
to ensure compliance with the provisions of this Act to minimize 
pain and distress to animals. Exceptions to the requirement of 
inspection of such study areas may be made by the Secretary if 
animals are studied in their natural environment and the study 
area is prohibitive to easy access. 
"(4XA) The Committee shall file an inspection certification report 
of each inspection at the research facility. Such report shall— 
"(i) be signed by a majority of the Committee members in-
volved in the inspection; 
"(ii) include reports of any violation of the standards promul-
gated, or assurances required, by the Secretary, including any 
deficient conditions of animal care or treatment, any deviations 
Prohibition. 
Ante, p. 1645. 
Prohibitions. 
Reports. 
Research and 
development. 
99 STAT. 1648 
PUBLIC LAW 99-198—DEC. 23, 1985 
of research practices from originally approved proposals that 
adversely affect animal welfare, any notification to the facility 
regarding such conditions, and any corrections made thereafter; 
'(iii) include any minority views of the Committee; and 
"(iv) include any other information pertinent to the activities 
of the Committee. 
Report. 
"(B) Such report shall remain on file for at least three years at the 
research facility and shall be available for inspection by the Animal 
and Plant Health Inspection Service and any funding Federal 
agency. 
"(C) In order to give the research facility an opportunity to correct 
any deficiencies or deviations discovered by reason of paragraph (3), 
the Committee shall notify the administrative representative of the 
research facility of any deHciencies or deviations from the provisions 
of this Act. If, after notification and an opportunity for correction, 
such deficiencies or deviations remain uncorrected, the Committee 
shall notify (in writing) the Animal and Plant Health Inspection 
Service and the funding Federal agency of such deficiencies or 
deviations. 
Records. 
"(5) The inspection results shall be available to Department of 
Reports. 
Agriculture inspectors for review during inspections. Department of 
Agriculture inspectors shall forward any Committee inspection 
records which include reports of uncorrected deficiencies or devi-
ations to the Animal and Plant Health Inspection Service and any 
funding Federal agency of the project with respect to which such 
uncorrected deficiencies and deviations occurred. 
"(c) In the case of Federal research facilities, a Federal C!ommittee 
shall be established and shall have the same composition and 
responsibilities provided in subsection (b), except that the Federal 
CJommittee shall report deficiencies or deviations to the head of the 
Federal agency conducting the research rather than to the Animal 
and Plant Health Inspection Service. The head of the Federal 
agency conducting the research shall be responsible for— 
"(1) all corrective action to be taken at the facility; and 
"(2) the granting of all exceptions to inspection protocol. 
"(d) Each research facility shall provide for the training of sci-
entists, animal technicians, and other personnel involved with 
animal care and treatment in such facility as required by the 
Secretary. Such training shall include instruction on— 
"(1) the humane practice of animal maintenance and 
experimentation; 
(2) research or testing methods that minimize or eliminate 
the use of animals or limit animal pain or distress; 
"(3) utilization of the information service at the National 
Agricultural Library, established under subsection (e); and 
"(4) methods whereby deficiencies in animal care and treat-
ment should be reported. 
"(e) The Secretary shall establish an information service at the 
National Agricultural Library. Such service shall, in cooperation 
with the National Library of Medicine, provide information— 
"(1) pertinent to employee training; 
"(2) which could prevent unintended duplication of animal 
experimentation as determined by the needs of the research 
facility; and 
"(3) on improved methods of animal experimentation, includ-
ing methods which could— 
"(A) reduce or replace animal use; and 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1649 
"(B) minimize pain and distress to animals, such as anes-
thetic and analgesic procedures. 
"(f) In any case in which a Federal agency funding a research 
project determines that conditions of animal care, treatment, or 
practice in a particular project have not been in compliance with 
standards promulgated under this Act, despite notification by the 
Secretary or such Federal agency to the research facility and an 
opportunity for correction, such agency shall suspend or revoke 
Federal support for the project. Any research facility losing Federal 
support as a result of actions taken under the preceding sentence 
shall have the right of appeal as provided in sections 701 through 
706 of title 5, United States Code.". 
INSPECTIONS 
SEC. 1753. Section 16(a) of the Animal Welfare Act (7 U.S.C. 
2146(a)) is amended by inserting after the first sentence the follow-
ing: "The Secretary shall inspect each research facility at least once 
each year and, in the case of deficiencies or deviations from the 
standards promulgated under this Act, shall conduct such follow-up 
inspections as may be necessary until all deficiencies or deviations 
from such standards are corrected.". 
Research and 
development. 
PENALTY 
FOR 
RELEASE 
OF 
TRADE 
SECRETS 
SEC. 1754. The Animal Welfare Act (7 U.S.C. 2131-2156) is 
7 use 2157. 
amended by adding at the end thereof the following section: 
"SEC. 27. (a) It shall be unlawful for any member of an Institu-
tional Animal C!ommittee to release any confidential information of 
the research facility including any information that concerns or 
relates to— 
"(1) the trade secrets, processes, operations, style of work, or 
apparatus; or 
"(2) the identity, confidential statistical data, amount or 
source of any income, profits, losses, or expenditures, 
of the research facility. 
"0)) It shall be unlawful for any member of such Committee— 
"(1) to use or attempt to use to his advantages; or 
"(2) to reveal to any other person, 
any information which is entitled to protection as confidential 
information under subsection (a). 
"(c) A violation of subsection (a) or (b) is punishable by— 
"(1) removal from such Committee; and 
"(2XA) a fine of not more than $1,000 and imprisonment of not 
more than one year; or 
"(B) if such violation is willful, a fine of not more than $10,000 
and imprisonment of not more than three years. 
"(d) Any person, including any research facility, injured in its 
business or property by reason of a violation of this section may 
recover all actual and consequential damages sustained by such 
person and the cost of the suit including a reasonable attorney's fee. 
"(e) Nothing in this section shall be construed to affect any other 
Prohibition, 
rights of a person injured in its business or property by reason of a 
violation of this section. Subsection (d) shall not be construed to 
limit the exercise of any such rights arising out of or relating to a 
violation of subsections (a) and (b).". 
99 STAT. 1650 
PUBLIC LAW 99-198—DEC. 23, 1985 
INCREASED PENALTIES FOR VIOLATION OF THE ACT 
SEC. 1755. (a) Subsection (b) of section 19 of the Animal Welfare 
Act (7 U.S.C. 2149(bj) is amended— 
(1) in the first sentence by striking out "$1,000 for each such 
violation" and inserting in lieu thereof "$2,500 for each such 
violation"; and 
(2) in the sixth sentence by striking out "$500 for each 
offense" and inserting in lieu thereof "$1,500 for each offense". 
OJ) Subsection (d) of such section is amended by striking out 
"$1,000" and inserting in lieu thereof "$2,500". 
Animals. 
Research and 
development. 
Grant. 
Loan. 
Contract. 
Ante, p. 1647. 
Research and 
development. 
7 US&^31 note. 
DEFINITIONS 
SEC. 1756. (a) Section 2 of the Animal Welfare Act (7 U.S.C. 2132) 
is amended by— 
(1) striking out "and" after the semicolon in subsection (i); 
(2) striking out the period at the end of subsection 0) £ind 
inserting in lieu thereof a semicolon; and 
(3) adding after subsection (j) the following new subsections: 
"(k) The term 'Federal agency' means an Executive agency as 
such term is defined in section 105 of title 5, United States Code, and 
with respect to any research facility means the agency from which 
the research facility receives a Federal award for the conduct of 
research, experimentation, or testing, involving the use of animals; 
"(1) The term 'Federal award for the conduct of research, 
experimentation, or testing, involving the use of animals' means any 
mechanism (including a grant, award, loan, contract, or cooperative 
agreement) under which Federal funds are provided to support the 
conduct of such research. 
"(m) The term 'quorum' means a majority of the Committee 
members; 
"(n) The term 'Committee* means the Institutional Animal 
Committee established under section 130b); and 
"(o) The term 'Federal research facility' means each department, 
agency, or instrumentality of the United States which uses live 
animals for research or experimentation.". 
db) For purposes of this Act, the term "animal" shall have the 
same meaning as defined in section 2(g) of the Animal Welfare Act 
(7 U.S.C. 2132(g)). 
CONSULTATION WITH THE SECRETARY OF HEALTH AND HUMAN 
SERVICES 
Regulations. 
SEC. 1757. Section 15(a) of the Animal Welfare Act (7 U.S.C. 
2145(a)) is amended by adding after the first sentence the following: 
"The Secretary shall consult with the Secretary of Health and 
Hiiman Services prior to issuance of regulations.". 
7 u s e 2131 note. 
TECHNICAL AMENDMENT 
SEC. 1758. Section 14 of the Animal Welfare Act (7 U.S.C. 2144) is 
amended by changing "section 13" to "sections 13 (a), (0, (g), and (h)" 
wherever it appears. 
EFFECTIVE DATE 
SEC. 1759. This subtitle shall take effect 1 year after the date of 
the enactment of this Act. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1651 
Subtitle G—Miscellaneous 
COMMODITY CREDIT CORPORATION STORAGE CONTRACTS 
SEC. 1761. Section 4(h) of the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714b(h)) is amended by inserting, after the 
colon at the end of the second proviso, the following: "Anid provided 
further. That any contract entered into by the Corporation for the 
use of a storage facility shall provide at least that (1) the rental rate 
charged for an extended term in excess of one year shall be at an 
annual rate less than that which is charged for a one-year contract, 
(2) any obligation of the Corporation to pay for the use of any space 
in a facility shall be relieved to the extent that the (Corporation does 
not use the space and pajmient is made by another person for the 
use of such space, and (3) if the Corporation determines that it no 
longer needs the space reserved in the facility, the (Dorporation may 
be relieved, for the remaining term of the contract, of its obligations 
to an extent and in a manner that will provide significant savings to 
the Corporation while permitting the owner of the facility reason-
able time to lease such space to another person:". 
Ante, p. 1503. 
WEATHER AND CUMATE INFORMATION IN AGRICULTURE 
SEC. 1762. (a) (I!ongress finds that— 
(1) agricultural and silvicultural operations are vulnerable to 
damage from atmospheric conditions that accurate and timely 
reporting of weather information can help prevent; 
(2) the maintenance of current weather and climate analysis 
and information dissemination systems, and Federal, Stete, and 
private efforts to improve these systems, is essential if agri-
culture and silviculture are to mitigate damage from at-
mospheric conditions; 
(3) agricultural and silvicultural weather services at the Fed-
eral level should be maintained with joint planning between the 
National Oceanic and Atmospheric Administration and the 
Department of Agriculture; and 
(4) efforts should be made, involving user groups, weather and 
climate information providers, and Federal and Stete govern-
ments, to expand the use of weather and climate information in 
agriculture and silviculture. 
(b) It, therefore, is declared to be the policy of Congress that it is in 
the public interest to maintain an active Federal involvement in 
providing agricultural and silvicultural weather and climate 
information and that efforts should be made, £unong users of this 
information and among private providers of this information, to 
improve use of this information. 
EMERGENCY FEED PROGRAM 
SEC. 1763. (a) Paragraph (2) of section 1105(b) of the Food and 
Agriculture Act of 1977 (7 U.S.C. 2267(b)) is amended by striking out 
"feed for such person's livestock" and inserting in lieu thereof feed 
that has adequate nutritive value and is suitable for each of such 
person's respective particular types of livestock". 
(b) Section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) is 
amended by inserting after the fifth sentence the following new 
sentence: "Notwithstending the foregoing provisions of this section 
relating to the authority of the Commodity Credit Corporation to 
15 u s e 313 note. 
Livestock. 
Transportation. 
Ante, pp. 1418, 
1452. 
99 STAT. 1652 
PUBLIC LAW 99-198—DEC. 23, 1985 
make available to certain persons in certain areas during emer-
gencies feed for livestock, the Commodity Credit Corporation (1) may 
make such feed available to such persons in areas in which feed 
grains are normally produced and normally available for feed pur-
poses, but in which they are unavailable because of a catastrophe 
described in the fourth sentence of this section, (2) may make such 
feed available to such persons through feed dealers in the areas, (3) 
shall make such feed available at a price not less than the price 
prescribed in the fourth sentence of this section, and (4) shall bear 
any expenses incurred in connection with making such feed avail-
able to such persons under this sentence, including transportation 
and handling costs.". 
CONTROLLED SUBSTANCES PRODUCTION CONTROL 
21 use 881a. 
SEC. 1764. (a) As used in this section: 
(1) The term "controlled substance" has the same meaning 
given such term in section 102(6) of the Controlled Substances 
21 use 802. 
Act (21 U.S.C. 801(6)). 
(2) The term "Secretary" means the Secretary of Agriculture. 
(3) The term "State" means each of the fifty States, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, 
the Virgin Islands of the United States, American Samoa, the 
Commonwealth of the Northern Mariana Islands, or the Trust 
Territory of the Pacific Islands. 
(b) Notwithstanding any other provision of law, following the date 
of enactment of this Act, any person who is convicted under Federal 
or State law of planting, cultivation, growing, producing, harvesting, 
or storing a controlled substance in any crop year shall be ineligible 
for— 
(1) as to any commodity produced during that crop year, and 
the four succeieding crop years, by such person— 
(A) £uiy price support or pa)rment made available under 
the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), the 
Commodity Credit Corporation Charter Act (15 U.S.C. 714 
et seq.), or any other Act; 
Loan. 
(B) a farm storage facility loan made under section 4(h) of 
the Commodity Credit Corporation Charter Act (15 U.S.C. 
Ante, pp. 1503, 
714b(h)); 
1651. 
(C) crop insurance under the Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.); 
Disaster 
(D) a disaster payment made under the Agricultural Act 
assistance. 
of 1949 (7 U.S.C. 1421 et seq.); or 
(E) a loan made, insured or guaranteed under the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 1921 et 
seq.) or any other provision of law administered by the 
Farmers Home Administration; or 
(2) a payment made under section 4 or 5 of the Commodity 
Credit Corporation Charter Act (15 U.S.C. 714b or 714c) for the 
storage of an agricultural commodity that is— 
(A) produced during that crop year, or any of the four 
succeeding crop years, by such person; and 
(B) acquired by the Commodity Credit Corporation. 
Regulations. 
(c) Not later than 180 days after the date of enactment of this Act, 
the Secretary shall issue such regulations as the Secretary deter-
mines are necessary to carry out this section, including regulations 
that— 
, 
^ 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1653 
(1) define the term "person"; 
(2) govern the determination of persons who shall be ineligible 
for program benefits under this section; and 
(3) protect the interests of tenants and sharecroppers. 
STUDY OF UNLEADED FUEL IN AGRICULTURAL MACHINERY 
42 u s e 7545 
note. 
SEC. 1765. (aXD The Administrator of the Environmental Protec-
tion Agency and the Secretary of Agriculture shall jointly conduct a 
study of the use of fuel containing lead additives, and alternative 
lubricating additives, in gasoline engines that are— 
(A) used in agricultural machinery; and 
(B) designed to combust fuel containing such additives. 
(2) The study shall analyze the potential for mechanical problems 
(including but not limited to valve recession) that may be associated 
with the use of other fuels in such engines. 
(bXD For purposes of the study required under this section, the Contracts 
Administrator of the Environmental Protection Agency and the 
Secretary of Agriculture are authorized to enter into such contracts 
and other arrangements as may be appropriate to obtain the nec-
essary technical information. 
(2) The Secretary of Agriculture shall specify the types and items 
of agricultural machinery to be included in the study required under 
this section. Such types and items shall be representative of the 
types and items of agricultural machinery used on farms in the 
United States. 
(3) All testing of engines carried out for purposes of such study 
shall reflect actual agricultural conditions to the extent practicable, 
including revolutions per minute and payloads. 
(c) Not later than January 1,1987— 
(1) the Administrator of the Environmental 
Protection 
Agency and the Secretary of Agriculture shall publish the 
results of the study required under this section; and 
(2) the Administrator shall publish in the Federal Register 
notice of the publication of such study and a summary thereof. 
(dXD After notice and opportunity for hearing, but not later than 
6 months after publication of the study, the Administrator shall— 
(A) make findings and recommendations on the need for lead 
additives in gasoline to be used on a farm for farming purposes, 
including a determination of whether a modification of the 
regulations limiting lead content of gasoline would be appro-
priate in the case of gasoline used on a farm for farming 
purposes; and 
(B) submit to the President and Congress a report con- Report 
taining— 
(i) the study; 
(ii) a summary of the comments received during the 
public hearing (including the comments of the Secretary); 
and 
(iii) the findings and recommendations of the Adminis-
trator made in accordance with clause (1). 
(2) The report shall be transmitted to— 
(A) the Committee on Energy and Commerce of the House of 
Representatives; 
(B) the Committee on Environment and Public Works of the 
Senate; 
Federal 
Register, 
publication. 
Report. 
99 STAT. 1654 
PUBLIC LAW 99-198—DEC. 23, 1985 
Federal 
Register, 
publication. 
Prohibition. 
Regulations. 
(C) the Committee on Agriculture of the House of Representa-
tives; and 
(D) the Committee on Agriculture, Nutrition, and Forestry of 
the Senate. 
(eXD Between January 1, 1986, and December 31, 1987, the 
Administrator shall monitor the actual ^ead content of leaded gaso-
line sold in the United States. 
(2) The Administrator shall determine the average lead content of 
such gasoline for each 3-month period between January 1,1986, and 
December 31,1987. 
(3) If the actual lead content falls below an average of 0.2 of a 
gram of lead per gallon in any such 3-month period, the Adminis-
trator shall— 
(A) report to Congress; and 
(B) publish a notice thereof in the Federal Register. 
(f) Until January 1, 1988, no regulation of the Administrator 
issued under section 211 of the Clean Air Act (42 U.S.C. 7545) 
regarding the control or prohibition of lead additives in gasoline 
may require an average lead content per gallon that is less than 0.1 
of a gram per gallon. 
(g) To carry out this section, there is authorized to be appropriated 
$1,000,000, to be available without fiscal year limitation. 
Business and 
industry. 
Commerce and 
trade. 
POTATO ADVISORY COMMISSION 
SEC. 1767. It is the sense of Congress that— 
(1) the Secretary of Agriculture should consider the rec-
ommendations of the potato advisory commission established by 
the Secretary on an ad hoc basis; 
(2) such commission should address industry concerns includ-
ing trade, quality inspections, and pesticide use, to the extent 
practicable; 
(3) such commission should meet periodically; and 
(4) the recommendations and actions of such committee 
should be reported to the Chairmen of the Committee on Agri-
culture, Nutrition, and Forestry of the Senate and the Commit-
tee on Agriculture of the House of Representatives, and to the 
public. 
21 u s e 154a. 
VIRUSES, SERUMS, TOXINS, AND ANALAGOUS PRODUCTS 
SEC. 1768. (a) The first sentence of the eighth paragraph of the 
matter under the heading "BUREAU OF ANIMAL INDUSTRY" of 
the Act entitled "An Act making appropriations for the Department 
of Agriculture for the fiscal year ending June thirtieth, nineteen 
hundred and fourteen", approved March 4, 1913 (21 U.S.C. 151), is 
amended by striking out "from one State or Territory or the District 
of Columbia to any other State or Territory or the District of 
Columbia" and inserting in lieu thereof "in or from the United 
States, the District of Columbia, any territory of the United States, 
or any place under the jurisdiction of the United States". 
(b) The fourth sentence of such paragraph (21 U.S.C. 154) is 
amended by inserting "or otherwise to carry out this paragraph," 
after "animals," the first place it appears. 
(c) Such paragraph is amended by inserting after the fourth 
sentence the following new sentences: "In order to meet an emer-
gency condition, limited market or local situation, or other special 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1655 
Regulation. 
Corporations. 
Animals. 
circumstance (including production solely for intrastate use under a 
State-operated program), the Secretary may issue a special license 
under an expedited procedure on such conditions as are necessary to 
assure purity, safety, and a reasonable expectation of efficacy. The 
Secretary shall exempt by regulation from the requirement of 
preparation pursuant to an unsuspended and unrevoked license any 
virus, serum, toxin, or analogous product prepared by any person, 
firm, or corporation— 
"(1) solely for administration to animals of such person, firm, 
or corporation; 
"(2) solely for administration to animals under a veterinarian-
client-patient relationship in the course of the State licensed 
professional practice of veterinary medicine by such person, 
firm, or corporation; or 
"(3) solely for distribution within the State of production 
pursuant to a license granted by such State under a program 
determined by the Secretary to meet criteria under which the 
State— 
"(A) may license virus, serum, toxin, and analogous prod-
ucts and establishments that produce such products; 
"(B) may review the purity, safety, potency, and efficacy 
of such products prior to licensure; 
"(C) may review product test results to assure compliance 
with applicable standards for purity, safety, and potency, 
prior to release to the market; 
"(D) may deal effectively with violations of State law 
regulating virus, serum, toxin, and analogous products; and 
*(E) exercises the authority referred to in subclauses (A) 
through (D) consistent with the intent of this paragraph of 
prohibiting the preparation, sale, barter, exchange, or ship-
ment of worthless, contaminated, dangerous, or harmful 
virus, serum, toxin, or analogous products.". 
(d) The seventh sentence of such paragraph (21 U.S.C. 157) (as it 
existed before the amendments made by this section) is amended by 
striking out "licensed under this Act". 
(e) Such paragraph is amended by inserting after the eighth 21 use 159 
sentence (21 U.S.C. 158) (as it existed before the amendments made 
by this section) the following new sentences: "The procedures of 
sections 402, 403, and 404 of the Federal Meat Inspection Act (21 
U.S.C. 672, 673, and 674) (relating to detentions, seizures and con-
demnations, and injunctions, respectively) shall apply to the 
enforcement of this paragraph with respect to any product prepared, 
sold, bartered, exchanged, or shipped in violation of this paragraph 
or a regulation promulgated under this paragraph. The provisions 
(including penalties) of section 405 of such Act (21 U.S.C. 675) shall 
apply to the performance of official duties under this paragraph. 
Congress finds that (i) the products and activities that are regulated 
under this paragraph are either in interstate or foreign commerce 
or substantially affect such commerce or the free flow thereof, and 
(ii) regulation of the products and activities as provided in this 
paragraph is necessary to prevent and eliminate burdens on such 
commerce and to effectively regulate such commerce.". 
(f)(1) Except as provided in paragraph (2), the amendments made 
by this section shall become effective on the date of enactment of 
this Act. 
(2)(A) Subject to subparagraphs (B) through (D), in the case of a 
person, firm, or corporation preparing, selling, bartering, exchang-
Effective date. 
21 u s e 151 note. 
Corporation, 
eommerce and 
trade. 
51-194 O 
QL. 3 
99 STAT. 1656 
PUBLIC LAW 99-198—DEC. 23, 1985 
ing, or shipping a virus, serum, toxin, or analogous product during 
the 12-month period ending on the date of enactment of this Act 
solely for intrastate commerce or for exportation, such product shall 
not after such date of enactment, as a result of its not having been 
licensed or produced in a licensed establishment, be considered in 
violation of the eighth paragraph of the matter under the heading 
"BUREAU OF ANIMAL INDUSTRY" of the Act entitled "An Act 
making appropriations for the Department of Agriculture for the 
fiscal year ending June thirtieth, nineteen hundred and fourteen". 
Ante, p. 1654. 
approved March 14,1913 (as amended by this section), until the first 
day of the 49th month following the date of enactment of this Act. 
Corporation. 
(B) The exemption granted by subparagraph (A) may be extended 
by the Secretary of Agriculture for a period up to 12 months in an 
individual case on a showing by a person, firm, or corporation of 
good cause and a good faith effort to comply with such eighth 
paragraph with due diligence. 
Ck)rporation. 
(C) The exemption granted by subparagraph (A) must be claimed 
by the person, firm, or corporation preparing such product by the 
first day of the 13th month following the date of enactment of this 
Act, in the form and manner prescribed by the Secretary, unless the 
Secretary grants an extension of the time to claim such exemption 
in an individual case for good cause shown. 
Corporation. 
(D) On the issuance by the Secretary of a license to such person, 
firm, or corporation for such product prior to the first day of the 
49th month following the date of enactment of this Act, or the end of 
an extension of the exemption granted by the Secretary, the exemp-
tion granted by subparagraph (A) shall terminate with respect to 
such product. 
AUTHORIZATION OF APPROPRIATIONS FOR FEDERAL INSECTICIDE, 
FUNGICIDE, AND RODENTICIDE ACT 
SEC. 1768. Section 31 of the Federal Insecticide, Fungicide, and 
Rodenticide Act (7 U.S.C. 136y) is amended to read as follows: 
"SEC. 31. AUTHORIZATION OF APPROPRIATIONS. 
"There is authorized to be appropriated to carry out this Act for 
the period beginning October 1, 1985, and ending September 30, 
1986, $68,604,200 of which not more than $11,993,100 shall be avail-
able for research under this Act.". 
USER FEES FOR REPORTS, PUBUCATIONS, AND SOFTWARE 
SEC. 1769. Section 1121 of the Agriculture and Food Act of 1981 (7 
U.S.C. 2242a) is amended to read as follows: 
USER FEES FOR REPORTS, PUBUCATIONS, AND SOFTWARE 
"SEC. 1121. (a) The Secretary of Agriculture may— 
Reports. 
"(1) furnish, on request, copies of software programs, pam-
phlets, reports, or other publications, regardless of their form, 
including electronic publications, prepared in the Department 
of Agriculture in carrying out any of its missions or programs; 
and 
"(2) charge such fees therefor as the Secretary determines are 
reasonable. 
"(b) The imposition of such charges shall be consistent with 
section 9701 of title 31, United States Code. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1657 
"(c) All moneys received in payment for work or services per-
formed, or for software programs, pamphlets, reports, or other 
publications provided, under this section— 
"(1) shall be available until expended to pay directly the costs 
of such work, services, software programs, pamphlets, reports, 
or publications; and 
"(2) may be credited to appropriations or funds that incur 
such costs.". 
Reports. 
CONFIDENTIAUTY OF INFORMATION 
SEC. 1770. (a) In the case of information furnished under a provi- 7 USC 2276. 
sion of law referred to in subsection (d), neither the Secretary of 
Agriculture, any other officer or employee of the Department of 
Agriculture or agency thereof, nor any other person may— 
(1) use such information for a purpose other than the develop-
ment or reporting of aggregate data in a manner such that the 
identity of the person who supplied such information is not 
discernible and is not material to the intended uses of such 
information; or 
(2) disclose such information to the public, unless such 
information has been transformed into a statistical or aggregate 
form that does not allow the identification of the person who 
supplied particular information. 
(bXD In carrying out a provision of law referred to in subsection 
(d), no department, agency, officer, or employee of the Federal 
Government, other than the Secretary of Agriculture, shall require 
a person to furnish a copy of statistical information provided to the 
Department of Agriculture. 
(2) A copy of such information— 
i 
(A) shall be immune from mandatory disclosure of any type, 
including legal process; and 
(B) shall not, without the consent of such person, be admitted 
Prohibition, 
as evidence or used for any purpose in any action, suit, or other 
judicial or administrative proceeding. 
(c) Any person who shall publish, cause to be published, or other-
wise publicly release information collected pursuant to a provision 
of law referred to in subsection (d), in any manner or for any 
purpose prohibited in section (a), shall be fined not more than 
$10,000 or imprisoned for not more than 1 year, or both. 
(d) For purposes of this section, a provision of law referred to in 
this subsection means— 
(1) the first section of the Act entitled "An Act authorizing 
the Secretary of Agriculture to collect and publish statistics of 
the grade and staple length of cotton", approved March 3, 1927 
(7 U.S.C. 471) (commonly referred to as the "Cotton Statistics 
and Estimates Act"); 
(2) the first section of the Act entitled "An Act to provide for 
the collection and publication of statistics of tobacco by the 
Department of Agriculture", approved January 14, 1929 (7 
U.S.C. 501); 
(3) the first section of the Act entitled "An Act to provide for 
the collection and publication of statistics of peanuts by the 
Department of Agriculture", approved June 24, 1936 (7 U.S.C. 
951); 
(4) section 203(g) of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1622(g)); 
99 STAT. 1658 
PUBLIC LAW 99-198—DEC. 23, 1985 
(5) section 526(a) of the Revised Statutes (7 U.S.C. 2204(a)); 
(6) the Act entitled "An Act providing for the publication of 
statistics relating to spirits of turpentine and resin", approved 
August 15,1935 (7 U.S.C. 2248); 
(7) section 42 of title 13, United States Code; 
(8) section 4 of the Act entitled "An Act to establish the 
Department of Commerce and Labor", approved February 14, 
1903(15U.S.C. 1516);or 
(9) section 2 of the joint resolution entitled "Joint resolution 
relating to the publication of economic and social statistics for 
Americans of Spanish origin or descent", approved June 16, 
1976 (15 U.S.C. 1516a). 
LAND CONVEYANCE TO IRWIN COUNTY, GEORGIA 
SEC. 1771. The Secretary of Agriculture is authorized and directed 
to execute and deliver to the Board of Education of Irwin County, 
Georgia, its successors and assigns, a quitclaim deed conveying and 
releasing unto the said Board of Education of Irwin County, Georgia, 
its successors and assigns, all right, title, and interest of the United 
States of America in and to a tract of land, situate in said Irwin 
County, Georgia, containing 0.303 acres together with improvements 
in Land Lot Number 39 in the 3rd Land District of Irwin County, 
Georgia, being more particularly described in a deed dated July 13, 
1946, from the United States conve5dng said land to Irwin County 
Board of Education, recorded in the land records of the office of the 
Clerk of Court for Irwin County, Georgia, in deed book 20, page 117. 
NATIONAL 
TREE 
SEED 
LABORATORY 
1
6 use 580q. 
SEC. 1772. Notwithstanding any other provision of law, fees re-
ceived by the National Tree Seed Laboratory, administered by the 
Forest Service, United States Department of Agriculture, for the 
provision of a tree seed testing service, shall be retained and depos-
ited as a reimbursement to current appropriations used to cover the 
costs of providing such service. 
CONTROL OF GRASSHOPPERS AND MORMON CRICKETS ON FEDERAL 
LANDS 
7 use I48f. 
SEC 1773. (a) The Secretary of Agriculture shall carry out a 
program to control grasshoppers and Mormon Crickets on all Fed-
eral lands. 
(bXl) Subject to paragraph (2), the Secretary of Agriculture shall 
expend or transfer, and upon request, the Secretary of the Interior 
shall transfer to the Secretary of Agriculture, from any no-year 
appropriations, funds for the prevention, suppression, and control of 
actual or potential grasshopper and Mormon Cricket outbreaks on 
lands under the jurisdiction of the Federal Government. 
(2XA) Appropriated funds made available to the Secretary of the 
Interior shall be available for the payment of obligations incurred 
on Federal lands subject to the jurisdiction of the Secretary of the 
Interior. 
(B) Funds transferred pursuant to this paragraph shall be re-
quested as promptly as possible by the Secretary of Agriculture. 
(C) Funds transferred pursuant to this section shall be replenished 
by supplemental or regular appropriations which shall be requested 
£is promptly as possible. 
PUBLIC LAW 99-198—DEC. 23, 1985 
99 STAT. 1659 
(cXD Except as provided in paragraph (2), from any funds made 
available to the Department of the Interior until expended, moneys 
shgdl be made available for the transfer by the Secretary of the 
Interior to the Secretary of Agriculture for the prevention, suppres-
sion, and control of grasshoppers and Mormon Cricket outbreaks on 
Federal lands under the jurisdiction of the Secretary of the Interior. 
(2) No funds shall be made available under this authority, until Prohibition, 
contingency funds specifically available to the Animal and Plant 
Health Inspection Service for grasshopper emergencies have been 
exhausted. 
(d) On request of the administering agency or the Department of 
Agriculture of an affected State, the Secretary of Agriculture shall 
immediately treat Federal, State, or private lands that are infested 
by grasshoppers or Mormon Crickets at levels of economic infesta-
tion, unless the Secretary determines that delaying treatment will 
optimize biological control and not cause greater economic damage 
to adjacent landowners. 
(e) The Secretary of Agriculture shall— 
(1) pay out of appropriated funds made available to the Sec-
retary or transferred to the Secretary by the Secretary of the 
Interior—100 percent of the cost of grasshopper or Mormon 
Cricket control on Federal lands; 
(2) pay out of appropriated funds made available to the 
Secretary— 
(A) 50 percent of the cost of such control on State lands; 
and 
(B) 33.3 percent of the cost of such control on private 
rangelands; and 
(3) participate in prevention, control, or suppression programs 
for grasshoppers and Mormon Crickets in conjunction with 
other Federal, State and private prevention, control or suppres-
sion efforts. 
(f) From appropriated funds made available or transferred by the 
Secretary of the Interior to the Secretary of Agriculture for such 
purposes, the Secretary of Agriculture shall provide adequate fund-
ing for a program to train personnel to effectively accomplish the 
objective of this section. 
STUDY OF A STRATEGIC ETHANOL RESERVE 
SEC. 1778. (a) The Secretary of Agriculture shall conduct a study of 
the cost effectiveness, the economic benefits, and the feasibility of 
establishing, maintaining, and utilizing a Strategic Ethanol Reserve 
relative to the existing Strategic Petroleum Reserve. 
(b) The study shall be completed within one year after the enact-
ment of this section and shgdl include, among other considerations— 
(1) the benefits and losses related to the U.S. economy, farm 
income, emplojmtient, government commodity programs, and 
the trade deficit of utilizing a Strategic Ethanol Reserve, as 
opposed to the Strategic Petroleum Reserve; and 
(2) the savings from storing ethanol as opposed to storing the 
amount of CCC-held grain necessary to produce the ethanol. 
(c) If the study shows that the Strategic Ethanol Reserve is cost 
effective, beneficial to the U.S. economy, and feasible in comparison 
with the Strategic Petroleum Reserve, the Secretary of Agriculture 
may establish, maintain, and utilize a Strategic Ethanol Reserve. 
42 u s e 6231 
note. 
Emplojrment 
find 
unemplojrment. 
Commerce and 
trade. 
99 STAT. 1660 
PUBLIC LAW 99-198—DEC. 23, 1985 
TITLE XVIII—GENERAL EFFECTIVE DATE 
EFFECTIVE DATE 
7 use 1281 note. 
SEC. 1801. Except as otherwise provided in this Act, this Act and 
the amendments made by this Act shall become effective on the date 
of the enactment of this Act. 
Approved December 23, 1985. 
LEGISLATIVE HISTORY—H.R. 2100 (S. 1714): 
HOUSE REPORTS: No. 99-271, Pt. I (Comm. on Agriculture), Pt. II (Comm. on 
Merchant Marine and Fisheries), and No. 99-447 (Comm. of 
SENATE REPORT No. 99-145 accompanying S. 1714 (Comm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
Sept. 20, 26, Oct. 1-3, 7, 8, considered and passed House. 
Oct 25, 28-31, Nov. 1, 18-22, S. 1714 considered in Senate. 
Nov. 23, H.R. 2100 considered and passed Senate, amended, in lieu of S. 1714. 
Dec. 18, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 21, No. 52 (1985): 
Dec. 23, Presidential statement. 
,„ ,, , 
,;^«,„^«, ,