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That section 404 of the
Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-
624; 7 U.S.C. 1444f(q)) is amended by adding at the end thereof the
following new paragraph:
''(3) Reduced quality of high moisture recourse loan.--(A)
Notwithstanding any other provision of law, effective for the
1992 through 1995 crops of feed grains, the Secretary shall
make available recourse loans to producers on a farm who do not
normally harvest their crop of feed grains in a high moisture
state (or on that portion of the crop which is not normally
harvested in a high moisture state). Such recourse loans shall
be made available whenever the crop (or the portion of the crop
not normally harvested in a high moisture state) is harvested
with a moisture content in excess of Commodity Credit
Corporation standards for loans made under paragraphs (1) and
(6) of subsection (a) of this section, or whenever the crop has
a test weight below the minimum weight required for Commodity
Credit Corporation nonrecourse loans made under such
paragraphs.
''(B) Recourse loans under this paragraph shall be made to
producers on a farm who--
''(i) present certified scale tickets from an
inspected, certified commercial scale, including
licensed warehouses, feedlots, feed mills,
distilleries, or other similar entities approved by the
Secretary; or
''(ii) present field or other physical measurements
of the standing or stored feed grain crop in regions of
the country that do not have certified commercial
scales from which certified scale tickets may be
obtained within reasonable proximity of harvest
operation; and
''(iii) certify that the quantity of feed grain to
be placed under loan was in fact harvested on the farm;
and
''(iv) participate in an acreage limitation program
for the crop of feed grains established by the
Secretary.
''(C) A producer shall not be eligible for a loan under
this paragraph unless any prior loans made under the authority
of this paragraph have been fully repaid.
''(D) Loans made under this paragraph shall bear interest
at a rate determined by the Secretary, but in no event shall
the rate exceed the rate of interest charged for loans made
under paragraphs (1) and (6) of subsection (a) of this section.
''(E) Loans under this paragraph shall be made in an amount
as determined by the Secretary equal to at least eighty
percent, but not greater than ninety percent, of the lowest
county adjusted nondiscounted loan rate for the appropriate
crop year for loans made to producers of feed grains meeting
the Commodity Credit Corporation standards for nonrecourse
loans under paragraphs (1) and (6) of subsection (a) of this
section.
''(F) Loans made under this paragraph shall be repaid in
three equal annual installments, with the first such
installment being due and payable 365 days following the
advance of the loan funds to the producer and consisting of
one-third of the principal amount of the outstanding loan and
100 percent of the accrued interest thereon. The second
installment shall consist of one-half of the principal amount
of the outstanding loan balance and 100 percent of the accrued
interest thereon, and the third installment shall consist of
the remaining principal of the loan and 100 percent of the
accrued interest thereon. In the event any installment is not
made within 60 days following the date upon which it becomes
due and payable, the Secretary shall have the right without
further notice to offset the entire balance of the amount owed
on the loan, including interest thereon, against any other
payments the producer may be 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, rice, and oilseeds.
''(G) The Secretary may permit a producer who has obtained
a loan under this paragraph to repay a part or all of any
annual installment required under subparagraph (F) by tendering
to the Commodity Credit Corporation a quantity of feed grain
which is of acceptable quality to meet the standards for a
nonrecourse loan under paragraphs (1) and (6) of subsection (a)
of this section. Such tender shall be made by the producer at
any facility approved for storage of commodities owned by the
Corporation which facility is situated in the same county (or a
county adjacent to the county) in which the producer's farm is
located, and the producer's loan installment payment shall be
credited with an amount equal to the per bushel county adjusted
loan rate for the grade and quality of grain tendered times the
total number of bushels tendered in payment by the producer as
approved by the Secretary.
Output:
Amends the Food, Agriculture, Conservation, and Trade Act of 1990 to provide recourse loans for the 1992 through 1995 crops of high moisture feed grains.