CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
Sponsor:
Summary:
All articles in House section
CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
(House of Representatives - November 15, 1995)
Text of this article available as:
TXT
PDF
[Pages
H12509-H13034]
[[Page H 12509]]
CONFERENCE REPORT ON
H.R. 2491, BALANCED BUDGET ACT OF 1995
Mr. HOBSON submitted the following conference report and statement on
the bill (
H.R. 2491) to provide for reconciliation pursuant to section
105 of the concurrent resolution on the budget for fiscal year 1996:
Conference Report (H. Rept. No. 104-347)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (
H.R.
2491), to provide for reconciliation pursuant to section 105
of the concurrent resolution on the budget for fiscal year
1996, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as
follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Balanced Budget Act of
1995''.
SEC. 2. TABLE OF TITLES.
This Act is organized into titles as follows:
Title I--Agriculture and Related Provisions
Title II--Banking, Housing, and Related Provisions
Title III--Communication and Spectrum Allocation Provisions
Title IV--Education and Related Provisions
Title V--Energy and Natural Resources Provisions
Title VI--Federal Retirement and Related Provisions
Title VII--Medicaid
Title VIII--Medicare
Title IX--Transportation and Related Provisions
Title X--Veterans and Related Provisions
Title XI--Revenues
Title XII--Teaching hospitals and graduate medical education; asset
sales; welfare; and other provisions
TITLE I--AGRICULTURE AND RELATED PROVISIONS
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the
``Agricultural Reconciliation Act of 1995''.
(b) Table of Contents.--The table of contents of this title
is as follows:
Sec. 1001. Short title; table of contents.
Subtitle A--Agricultural Market Transition Program
Sec. 1101. Short title.
Sec. 1102. Definitions.
Sec. 1103. Production flexibility contracts.
Sec. 1104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 1105. Payment limitations.
Sec. 1106. Peanut program.
Sec. 1107. Sugar program.
Sec. 1108. Administration.
Sec. 1109. Elimination of permanent price support authority.
Sec. 1110. Effect of amendments.
Subtitle B--Conservation
Sec. 1201. Conservation.
Subtitle C--Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Subtitle D--Miscellaneous
Sec. 1401. Crop insurance.
Sec. 1402. Collection and use of agricultural quarantine and inspection
fees.
Sec. 1403. Commodity Credit Corporation interest rate.
Subtitle A--Agricultural Market Transition Program
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Agricultural Market
Transition Act''.
SEC. 1102. DEFINITIONS.
In this subtitle:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in
effect prior to the amendment made by section 1109(b)(2)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 1103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section 1109(b)(2)).
If a crop acreage base was not enrolled in an annual program
for the 1995 crop in order to increase crop acreage base, the
contract acreage for the 1996 crop shall reflect the
increased base acreage that would have been established under
title V of the Act (as so in effect).
(4) Contract commodity.--The term `contract commodity'
means wheat, corn, grain sorghum, barley, oats, upland
cotton, and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 1103 pursuant to a contract.
(6) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior
to the amendment made by section 1109(b)(2)).
(7) Loan commodity.--The term `loan commodity' means each
contract commodity, extra long staple cotton, and oilseeds.
(8) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(9) Program.--The term ``program'' means the agricultural
market transition program established under this subtitle.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 1103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this subtitle, the
Secretary shall offer to enter into a contract with an
eligible owner or operator described in paragraph (2) on a
farm containing eligible farmland. Under the terms of a
contract, the owner or operator shall agree, in exchange for
annual contract payments, to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act of 1985
(16 U.S.C. 3812);
(B) wetland protection requirements applicable to the farm
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.); and
(C) the planting flexibility requirements of subsection
(j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator
eligible to enter into a contract:
(A) An owner of eligible farmland who assumes all of the
risk of producing a crop.
(B) An owner of eligible farmland who shares in the risk of
producing a crop.
(C) An operator of eligible farmland with a share-rent
lease of the eligible farmland, regardless of the length of
the lease, if the owner enters into the same contract.
[[Page H 12510]]
(D) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring on or after
September 30, 2002, in which case the consent of the owner is
not required.
(E) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring before September 30,
2002, if the owner consents to the contract.
(F) An owner of eligible farmland who cash rents the
eligible farmland and the lease term expires before September
30, 2002, but only if the actual operator of the farm
declines to enter into a contract. In the case of an owner
covered by this subparagraph, contract payments shall not
begin under a contract until the fiscal year following the
fiscal year in which the lease held by the nonparticipating
operator expires.
(G) An owner or operator described in a preceding
subparagraph regardless of whether the owner or operator
purchased catastrophic risk protection for a fall-planted
1996 crop under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of operators who are tenants and
sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph (B), the
Secretary may not enter into a contract after April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each fiscal year, the
Secretary shall allow an eligible owner or operator on a farm
covered by a conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date specified in
subparagraph (A) to enter into or expand a production
flexibility contract to cover the contract acreage of the
farm that was subject to the former conservation reserve
contract.
(ii) Amount.--Contract payments made for contract acreage
under this subparagraph shall be made at the rate and amount
applicable to the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity; or
(ii) in the case of acreage that was subject to a
conservation reserve contract described in paragraph (1)(B),
the date the production flexibility contract was entered into
or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through the 2002
crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to
be made during at least the first fiscal year for which
contract payments will be made.
(c) Eligible Farmland Described.--Land shall be considered
to be farmland eligible for coverage under a contract only if
the land has contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
1109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) whose term expired, or was voluntarily terminated, on
or after January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in
subsection (b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal year
s 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
operator, 50 percent of the contract payment for fiscal year
1996 shall be made not later than 60 days after the date on
which the owner or operator enters into a contract.
(B) Subsequent fiscal years.--At the option of the owner or
operator for fiscal year 1997 and each subsequent fiscal
year, 50 percent of the annual contract payment shall be made
on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal
Year.--
(1) In general.--The Secretary shall expend on a fiscal
year basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for
a particular fiscal year by--
(A) subtracting an amount equal to the amount, if any,
necessary to satisfy payment requirements under sections
101B, 103B, 105B, and 107B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section
1109(b)(2)) for the 1994 and 1995 crops of the commodity;
(B) adding an amount equal to the sum of all producer
repayments of deficiency payments received under section
114(a)(2) of the Act (as so in effect) for the commodity;
(C) adding an amount equal to the sum of all contract
payments withheld by the Secretary, at the request of
producers, during the preceding fiscal year as an offset
against producer repayments of deficiency payments otherwise
required under section 114(a)(2) of the Act (as so in effect)
for the commodity; and
(D) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under subsection (h) for the commodity.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract
commodity for each fiscal year shall be equal to the product
of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e) for the
contract commodity for the fiscal year; divided by
(B) the amount determined under paragraph (2) for the
fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph (1)
with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--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 contract payments under this subsection. The
owner or operator making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as
the Secretary may require in the contract, of any assignment
made under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract
payments made to a person under a contract during any fiscal
year may not exceed the payment limitations established under
section 1105.
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates the conservation plan for the farm containing
eligible farmland under the contract, wetland protection
requirements applicable to the farm, or the planting
flexibility requirements of subsection (j), the Secretary
shall terminate the contract with respect to the owner or
operator. On the termination, the owner or operator shall
forfeit all rights to receive future contract payments and
shall refund to the Secretary all contract payments received
by the owner or operator during the period of the violation,
together with interest on the contract payments as determined
by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract
under paragraph (1), the Secretary may require the owner or
operator subject to the contract--
(A) to refund to the Secretary that part of the contract
payments received by the owner or operator during the period
of the violation, together with interest on the contract
payments as determined by the Secretary; or
(B) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the
violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator
continues or resumes operation, or control, of the contract
acreage. On the resumption of operation or control over the
contract acreage by the owner or operator, the provisions of
the contract in effect on the date of the foreclosure shall
apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a
contract of the right and interest of the owner or operator
in the contract acreage shall result in the termination of
the contract with respect to the acreage, effective on the
date of the transfer, unless the transferee of the acreage
agrees with the Secretary to assume all obligations of the
contract. At the request of
[[Page H 12511]]
the transferee, the Secretary may modify the contract if the
modifications are consistent with the objectives of this
section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed
by the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2)(A), any
commodity or crop may be planted on contract acreage.
(2) Limitations.--
(A) In general.--Except as provided in subparagraph (B),
the planting of any fruit or vegetable, and unlimited haying
and grazing, shall be permitted on not more than 15 percent
of the contract acreage.
(B) Exception.--Subparagraph (A) shall not apply to the
planting of contract commodities, lentils, mung beans, and
dry peas on contract acreage.
(3) Alfalfa.--The planting of alfalfa on contract acreage
is unlimited, except that the quantity of acreage on which
the contract payment of the owner or operator would otherwise
be based shall be reduced for each acre planted to alfalfa in
excess of the limitation in effect under paragraph (2)(A) for
the contract.
(4) Haying and grazing.--Subject to paragraphs (2) and (3),
haying and grazing of contract acreage shall be permitted,
except during any consecutive 5-month period that is
established by the State committee established under section
8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) for a State. The 5-month period shall be
established during the period beginning April 1, and ending
October 31, of a year. In the case of a natural disaster, the
Secretary may permit unlimited haying and grazing on the
contract acreage.
SEC. 1104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS.
(a) Availability of Nonrecourse Loans.--
(1) Availability.--For each of the 1996 through 2002 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm. The loans shall be
made under terms and conditions that are prescribed by the
Secretary and at the loan rate established under subsection
(b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under this section:
(A) In the case of a marketing assistance loan for a
contract commodity, any production by a producer who has
entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for wheat shall be--
(i) not less than 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of wheat to total use for the marketing year will be--
(i) equal to or greater than 30 percent, the Secretary may
reduce the loan rate for wheat for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than 15 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 15 percent, the Secretary may not reduce
the loan rate for wheat for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for wheat under subparagraph (B) shall not be considered
in determining the loan rate for wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for corn shall be--
(i) not less than 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of corn to total use for the marketing year will be--
(i) equal to or greater than 25 percent, the Secretary may
reduce the loan rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 25 percent but not less than 12.5 percent,
the Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 12.5 percent the Secretary may not reduce
the loan rate for corn for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for corn under subparagraph (B) shall not be considered
in determining the loan rate for corn for subsequent years.
(D) Other feed grains.--The loan rate for a marketing
assistance loan for grain sorghum, barley, and oats,
respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to
the rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation
to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for upland cotton shall be
established by the Secretary at such loan rate, per pound, as
will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the
United States a rate that is not less than the smaller of--
(i) 85 percent of the average price (weighted by market and
month) of the base quality of cotton as quoted in the
designated United States spot markets during 3 years of the
5-year period ending July 31 in the year in which the loan
rate 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 the period; or
(ii) 90 percent of the average, for the 15-week period
beginning July 1 of the year in which the loan rate is
announced, of the 5 lowest-priced growths of the growths
quoted for Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average difference during
the period April 15 through October 15 of the year in which
the loan is announced between the average Northern European
price quotation of such quality of cotton and the market
quotations in the designated United States spot markets for
the base quality of upland cotton), as determined by the
Secretary.
(B) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound
or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan for extra long staple cotton shall
be--
(A) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as
determined by the Secretary, during 3 years of the 5 previous
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 the period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
for rice shall be $6.50 per hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing assistance
loan for soybeans shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rates for a marketing
assistance loan for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be
$0.087 per pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan for other oilseeds shall be established at
such level as the Secretary determines is fair and reasonable
in relation to the loan rate available for soybeans, except
in no event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for soybeans on
a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity
(other than upland cotton or extra long staple cotton), a
marketing assistance loan under subsection (a) shall have a
term of 9 months beginning on the first day of the first
month after the month in which the loan is made. A marketing
assistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months. The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under
subsection (a) for a loan commodity (other than extra long
staple cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity under
subsection (b); or
(B) the prevailing world market price for the commodity
(adjusted to United States quality and location), as
determined by the Secretary.
(2) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under subsection (b).
(3) Prevailing world market price.--For purposes of
paragraph (1)(B) and subsection (f), the Secretary shall
prescribe by regulation--
(A) a formula to determine the prevailing world market
price for each loan commodity, adjusted to United States
quality and location; and
(B) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(4) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31, 2003,
the prevailing world market price for upland cotton (adjusted
to United States quality and location) established under
paragraph (3) shall be further adjusted if--
(i) the adjusted prevailing world market price is less than
115 percent of the loan rate for upland cotton established
under subsection (b), as determined by the Secretary; and
(ii) the Friday through Thursday average price quotation
for the lowest-priced United States growth as quoted for
Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through Thursday average
price of the 5 lowest-priced growths of upland cotton, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F.
Northern Europe (referred to in this subsection as the
``Northern Europe price'').
(B) Further adjustment.--Except as provided in subparagraph
(C), the adjusted prevailing world market price for upland
cotton shall
[[Page H 12512]]
be further adjusted on the basis of some or all of the following data,
as available:
(i) The United States share of world exports.
(ii) The current level of cotton export sales and cotton
export shipments.
(iii) Other data determined by the Secretary to be relevant
in establishing an accurate prevailing world market price for
upland cotton (adjusted to United States quality and
location).
(C) Limitation on further adjustment.--The adjustment under
subparagraph (B) may not exceed the difference between--
(i) the Friday through Thursday average price for the
lowest-priced United States growth as quoted for Middling
1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a) with respect to a loan
commodity, agree to forgo obtaining the loan for the
commodity in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under paragraph (3)
for the loan commodity; by
(B) the quantity of the loan commodity that the producers
on a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments
under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b) for the
loan commodity; exceeds
(B) the rate at which a loan for the commodity may be
repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) First handler marketing certificates.--
(A) In general.--During the period ending on July 31, 2003,
if the repayment rates provided in subsection (d) for upland
cotton or the availability of loan deficiency payments for
upland cotton under subsection (e) fails to make United
States upland cotton fully competitive in world markets and
the prevailing world market price of upland cotton (adjusted
to United States quality and location) is below the current
loan repayment rate for upland cotton, to make United States
upland 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 marketing certificates or cash payments
in accordance with this paragraph.
(B) Payments.--The Commodity Credit Corporation, under such
regulations as the Secretary may prescribe, shall make
payments, through the issuance of marketing certificates or
cash payments, to first handlers of upland cotton (persons
regularly engaged in buying or selling upland cotton) who
have entered into an agreement with the Commodity Credit
Corporation to participate in the program established under
this paragraph. The payments shall be made in such amounts
and subject to such terms and conditions as the Secretary
determines will make upland cotton produced in the United
States available at competitive prices, consistent with the
purposes of this paragraph.
(C) Value.--The value of each certificate or cash payment
issued under subparagraph (B) shall be based on the
difference between--
(i) the loan repayment rate for upland cotton; and
(ii) the prevailing world market price of upland cotton
(adjusted to United States quality and location), as
determined by the Secretary.
(D) Redemption, marketing, or exchange.--The Commodity
Credit Corporation, under regulations prescribed by the
Secretary, may assist any person receiving marketing
certificates under this paragraph in the redemption of
certificates for cash, or marketing or exchange of the
certificates for agricultural commodities or products owned
by the Commodity Credit Corporation, at such times, in such
manner, and at such price levels as the Secretary determines
will best effectuate the purposes of the program established
under this paragraph. Any price restrictions that may
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall not
apply to the redemption of certificates under this paragraph.
(E) Designation of commodities and products; charges.--
Insofar as practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the 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 the
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 the reasonable
number of days and ending with the date of the presentation
of the certificate to the Commodity Credit Corporation.
(F) Displacement.--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 subsection from adversely affecting the income of
producers of the commodities or products.
(G) Transfers.--Under regulations prescribed by the
Secretary, certificates issued to cotton handlers under this
paragraph may be transferred to other handlers and persons
approved by the Secretary.
(2) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during the
period ending July 31, 2003, the Secretary shall issue
marketing certificates or cash payments to domestic users and
exporters for documented purchases by domestic users and
sales for export by exporters made in the week following a
consecutive 4-week period in which--
(i) the Friday through Thursday average price quotation for
the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price for upland cotton
(adjusted to United States quality and location) does not
exceed 130 percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week
period multiplied by the quantity of upland cotton included
in the documented sales.
(C) Administration.--Subparagraphs (D) through (G) of
paragraph (1) shall apply to marketing certificates issued
under this paragraph. Any such certificates may be
transferred to other persons in accordance with regulations
issued by the Secretary.
(D) Exception.--The Secretary shall not issue marketing
certificates or cash payments under subparagraph (A) if, for
the immediately preceding consecutive 10-week period, the
Friday through Thursday average price quotation for the
lowest priced United States growth, as quoted for Middling
(M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe,
adjusted for the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more than
1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures under
this paragraph shall not exceed $701,000,000 during fiscal
year
s 1996 through 2002.
(3) Special import quota.--
(A) Establishment.--The President shall carry out an import
quota program that provides that, during the period ending
July 31, 2003, whenever the Secretary determines and
announces that for any consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern Europe, adjusted
for the value of any certificates issued under paragraph (2),
exceeds the Northern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a special import
quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(C) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under subparagraph (A) and entered
into the United States not later than 180 days after the
date.
(D) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
subparagraph (A), except that a special quota period may not
be established under this paragraph if a quota period has
been established under subsection (g).
(E) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(F) Definition.--In this paragraph, the term ``special
import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(g) Limited Global Import Quota For Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent
of the average price of such quality of cotton in the markets
for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a
limited global import quota subject to the following
conditions:
(A) Quantity.--The quantity of the quota shall be equal to
21 days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under this
subsection shall be the smaller of 21 days of domestic mill
consumption calculated under subparagraph (A) or the quantity
required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity under a
limited global import quota shall be considered to be an in-
quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
[[Page H 12513]]
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using the latest
official data of the Bureau of the Census, the Department of
Agriculture, and the Department of the Treasury--
(I) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the
quota is established;
(II) production of the current crop; and
(III) imports to the latest date available during the
marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted annual rate of domestic
mill consumption in the most recent 3 months for which data
are available; and
(II) the larger of--
(aa) average exports of upland cotton during the preceding
6 marketing years; or
(bb) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(iii) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(D) Quota entry period.--When a quota is established under
this subsection, cotton may be entered under the quota during
the 90-day period beginning on the date the quota is
established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(3).
SEC. 1105. PAYMENT LIMITATIONS.
(a) Limitation on Payments Under Production Flexibility
Contracts.--The total amount of contract payments made to a
person under 1 or more production flexibility contracts
during any fiscal year may not exceed $40,000.
(b) Limitation on Marketing Loan Gains and Loan Deficiency
Payments.--
(1) Limitation.--The total amount of payments specified in
paragraph (2) that a person shall be entitled to receive
under section 1104 for contract commodities and oilseeds
during any fiscal year may not exceed $75,000.
(2) Description of payments.--The payments referred to in
paragraph (1) are the following:
(A) Any gain realized by a producer from repaying a
marketing assistance loan for a crop of any loan commodity at
a lower level than the original loan rate established for the
commodity under section 1104(b).
(B) Any loan deficiency payment received for a loan
commodity under section 1104(e).
(c) Applicability of Other Provisions Regarding Payment
Limitations.--Paragraphs (5), (6), and (7) of section 1001
and section
s 1001A through 1001C of the Food Security Act of
1985 (7 U.S.C. 1308 et seq.) shall apply with respect to the
application of payment limitations under this section.
(d) Conforming Amendments.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking
``1997'' each place it appears in paragraphs (1)(A), (1)(B),
and (2)(A) and inserting ``1995''.
SEC. 1106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location
of peanuts and such other factors as are authorized by
section 411 of the Agricultural Adjustment Act of 1938.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration
the demand for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the demand for
peanuts in foreign markets.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for
which the loan rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and (b),
the Secretary shall make warehouse storage loans available in
each of the producing areas (described in section 1446.95 of
title 7 of the Code of Federal Regulations (January 1, 1989))
to a designated area marketing association of peanut
producers that is selected and approved by the Secretary and
that is operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse storage
loans 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 358e of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(B) Administrative and supervisory activities.--An area
marketing association shall be used in administrative and
supervisory activities relating to loans and marketing
activities under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(C) Association costs.--Loans made to the association under
this paragraph shall include such costs as the area marketing
association reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--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 the pools.
(B) Net gains.--Net gains on peanuts in each pool, unless
otherwise approved by the Secretary, shall be distributed
only to producers who placed peanuts in the pool and shall be
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) Quota peanuts.--For quota peanuts, the net gains over
and above the loan indebtedness and other costs or losses
incurred on peanuts placed in the pool.
(ii) Additional peanuts.--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.
(d) Losses.--Losses in quota area pools shall be covered
using the following sources in the following order of
priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed
to the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area
quota pools. The Secretary shall transfer to the Treasury
those funds collected under subsection (g) and available for
use under this subsection that the Secretary determines are
not required to cover losses in area quota pools.
(4) Cross compliance.--Further 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-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for
Valencia peanuts produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
(5) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to
cover losses in an area quota pool, the Secretary shall
increase the marketing assessment established under
subsection (g) by such an amount as the Secretary considers
necessary to cover the losses. The increased assessment shall
apply only to quota peanuts in the production area covered by
the pool. Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other
provision of law, no loan for quota peanuts may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved by
producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater risk of
deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must be
shown to have been officially inspected by licensed
Department of Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut program so
as to improve the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Administrative
Committee established under Marketing Agreement No. 146,
regulating the quality of domestically produced peanuts
(under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut program as a
result of this subsection requiring additional production or
handling at the farm level shall be reflected as an upward
adjustment in the Department of Agriculture loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement
No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent
for each of the 1994 and 1995 crops, 1.15 percent for the
1996 crop, and 1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional peanut
loan rate for the applicable crop.
(2) First purchasers.--
[[Page H 12514]]
(A) In general.--Except as provided under paragraphs (3)
and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing assessment equal
to the quantity of peanuts acquired multiplied by--
(I) in the case of each of the 1994 and 1995 crops, .55
percent of the applicable national average loan rate;
(II) in the case of the 1996 crop, .6 percent of the
applicable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops,
.65 percent of the applicable national average loan rate;
(ii) pay, in addition to the amount collected under clause
(i), a marketing assessment in an amount equal to the
quantity of peanuts acquired multiplied by .55 percent of the
applicable national average loan rate; and
(iii) remit the amounts required under clauses (i) and (ii)
to the Commodity Credit Corporation in a manner specified by
the Secretary.
(B) Definition of first purchaser.--In this subsection, the
term ``first purchaser'' means a person acquiring peanuts
from a producer except that in the case of peanuts forfeited
by a producer to the Commodity Credit Corporation, the term
means the person acquiring the peanuts from the Commodity
Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a
retail or wholesale outlet or in the case of a marketing by
the producer outside of the continental United States, the
producer shall be responsible for the full amount of the
assessment and shall remit the assessment by such time as is
specified by the Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, \1/2\ of
the assessment shall be deducted from the proceeds of the
loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty
up to an amount determined by multiplying--
(A) the quantity of peanuts involved in the violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective
only for the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991 through 1997
crops of'';
(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A),
(b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through
1997 marketing years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking ``1990'' and
inserting ``1990, for the 1991 through 1995 marketing years,
and 1995, for the 1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991 through 1997 marketing
years'' and inserting ``each marketing year''; and
(II) in clause (i), by inserting before the semicolon the
following: ``, in the case of the 1991 through 1995 marketing
years, and the 1995 marketing year, in the case of the 1996
through 2002 marketing years''; and
(v) in subsection (f), by striking ``1997'' and inserting
``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991 through 1995
crops of''; and
(ii) in subsection (c), by striking ``1995'' and inserting
``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking
``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for 1991 through
1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997'' and inserting
``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(3) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic edible,
seed,'' and inserting ``domestic edible use''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking ``subparagraph (B) and
subject to''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--Temporary
allocation of quota pounds for the marketing year only in
which the crop is planted shall be made to producers for each
of the 1996 through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota allocation shall be
equal to the pounds of seed peanuts planted on the farm, as
may be adjusted under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary allocation of
quota pounds under this paragraph shall be in addition to the
farm poundage quota otherwise established under this
subsection and shall be credited, for the applicable
marketing year only, in total to the producer of the peanuts
on the farm in a manner prescribed by the Secretary.
``(iv) Effect of other requirements.--Nothing in this
section alters or changes the requirements regarding the use
of quota and additional peanuts established by section
358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking ``including--'' and
clauses (i) and (ii) and inserting ``including any increases
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking ``include--'' and
clauses (i) and (ii) and inserting ``include any increase
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking ``(including any
applicable under marketings)'' both places it appears;
(ii) in paragraph (1)(A), by striking ``of undermarketings
and'';
(iii) in paragraph (2), by striking ``(including any
applicable under marketings)''; and
(iv) in paragraph (3), by striking ``(including any
applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(
Major Actions:
All articles in House section
CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
(House of Representatives - November 15, 1995)
Text of this article available as:
TXT
PDF
[Pages
H12509-H13034]
[[Page H 12509]]
CONFERENCE REPORT ON
H.R. 2491, BALANCED BUDGET ACT OF 1995
Mr. HOBSON submitted the following conference report and statement on
the bill (
H.R. 2491) to provide for reconciliation pursuant to section
105 of the concurrent resolution on the budget for fiscal year 1996:
Conference Report (H. Rept. No. 104-347)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (
H.R.
2491), to provide for reconciliation pursuant to section 105
of the concurrent resolution on the budget for fiscal year
1996, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as
follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Balanced Budget Act of
1995''.
SEC. 2. TABLE OF TITLES.
This Act is organized into titles as follows:
Title I--Agriculture and Related Provisions
Title II--Banking, Housing, and Related Provisions
Title III--Communication and Spectrum Allocation Provisions
Title IV--Education and Related Provisions
Title V--Energy and Natural Resources Provisions
Title VI--Federal Retirement and Related Provisions
Title VII--Medicaid
Title VIII--Medicare
Title IX--Transportation and Related Provisions
Title X--Veterans and Related Provisions
Title XI--Revenues
Title XII--Teaching hospitals and graduate medical education; asset
sales; welfare; and other provisions
TITLE I--AGRICULTURE AND RELATED PROVISIONS
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the
``Agricultural Reconciliation Act of 1995''.
(b) Table of Contents.--The table of contents of this title
is as follows:
Sec. 1001. Short title; table of contents.
Subtitle A--Agricultural Market Transition Program
Sec. 1101. Short title.
Sec. 1102. Definitions.
Sec. 1103. Production flexibility contracts.
Sec. 1104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 1105. Payment limitations.
Sec. 1106. Peanut program.
Sec. 1107. Sugar program.
Sec. 1108. Administration.
Sec. 1109. Elimination of permanent price support authority.
Sec. 1110. Effect of amendments.
Subtitle B--Conservation
Sec. 1201. Conservation.
Subtitle C--Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Subtitle D--Miscellaneous
Sec. 1401. Crop insurance.
Sec. 1402. Collection and use of agricultural quarantine and inspection
fees.
Sec. 1403. Commodity Credit Corporation interest rate.
Subtitle A--Agricultural Market Transition Program
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Agricultural Market
Transition Act''.
SEC. 1102. DEFINITIONS.
In this subtitle:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in
effect prior to the amendment made by section 1109(b)(2)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 1103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section 1109(b)(2)).
If a crop acreage base was not enrolled in an annual program
for the 1995 crop in order to increase crop acreage base, the
contract acreage for the 1996 crop shall reflect the
increased base acreage that would have been established under
title V of the Act (as so in effect).
(4) Contract commodity.--The term `contract commodity'
means wheat, corn, grain sorghum, barley, oats, upland
cotton, and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 1103 pursuant to a contract.
(6) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior
to the amendment made by section 1109(b)(2)).
(7) Loan commodity.--The term `loan commodity' means each
contract commodity, extra long staple cotton, and oilseeds.
(8) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(9) Program.--The term ``program'' means the agricultural
market transition program established under this subtitle.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 1103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this subtitle, the
Secretary shall offer to enter into a contract with an
eligible owner or operator described in paragraph (2) on a
farm containing eligible farmland. Under the terms of a
contract, the owner or operator shall agree, in exchange for
annual contract payments, to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act of 1985
(16 U.S.C. 3812);
(B) wetland protection requirements applicable to the farm
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.); and
(C) the planting flexibility requirements of subsection
(j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator
eligible to enter into a contract:
(A) An owner of eligible farmland who assumes all of the
risk of producing a crop.
(B) An owner of eligible farmland who shares in the risk of
producing a crop.
(C) An operator of eligible farmland with a share-rent
lease of the eligible farmland, regardless of the length of
the lease, if the owner enters into the same contract.
[[Page H 12510]]
(D) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring on or after
September 30, 2002, in which case the consent of the owner is
not required.
(E) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring before September 30,
2002, if the owner consents to the contract.
(F) An owner of eligible farmland who cash rents the
eligible farmland and the lease term expires before September
30, 2002, but only if the actual operator of the farm
declines to enter into a contract. In the case of an owner
covered by this subparagraph, contract payments shall not
begin under a contract until the fiscal year following the
fiscal year in which the lease held by the nonparticipating
operator expires.
(G) An owner or operator described in a preceding
subparagraph regardless of whether the owner or operator
purchased catastrophic risk protection for a fall-planted
1996 crop under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of operators who are tenants and
sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph (B), the
Secretary may not enter into a contract after April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each fiscal year, the
Secretary shall allow an eligible owner or operator on a farm
covered by a conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date specified in
subparagraph (A) to enter into or expand a production
flexibility contract to cover the contract acreage of the
farm that was subject to the former conservation reserve
contract.
(ii) Amount.--Contract payments made for contract acreage
under this subparagraph shall be made at the rate and amount
applicable to the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity; or
(ii) in the case of acreage that was subject to a
conservation reserve contract described in paragraph (1)(B),
the date the production flexibility contract was entered into
or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through the 2002
crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to
be made during at least the first fiscal year for which
contract payments will be made.
(c) Eligible Farmland Described.--Land shall be considered
to be farmland eligible for coverage under a contract only if
the land has contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
1109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) whose term expired, or was voluntarily terminated, on
or after January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in
subsection (b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal year
s 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
operator, 50 percent of the contract payment for fiscal year
1996 shall be made not later than 60 days after the date on
which the owner or operator enters into a contract.
(B) Subsequent fiscal years.--At the option of the owner or
operator for fiscal year 1997 and each subsequent fiscal
year, 50 percent of the annual contract payment shall be made
on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal
Year.--
(1) In general.--The Secretary shall expend on a fiscal
year basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for
a particular fiscal year by--
(A) subtracting an amount equal to the amount, if any,
necessary to satisfy payment requirements under sections
101B, 103B, 105B, and 107B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section
1109(b)(2)) for the 1994 and 1995 crops of the commodity;
(B) adding an amount equal to the sum of all producer
repayments of deficiency payments received under section
114(a)(2) of the Act (as so in effect) for the commodity;
(C) adding an amount equal to the sum of all contract
payments withheld by the Secretary, at the request of
producers, during the preceding fiscal year as an offset
against producer repayments of deficiency payments otherwise
required under section 114(a)(2) of the Act (as so in effect)
for the commodity; and
(D) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under subsection (h) for the commodity.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract
commodity for each fiscal year shall be equal to the product
of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e) for the
contract commodity for the fiscal year; divided by
(B) the amount determined under paragraph (2) for the
fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph (1)
with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--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 contract payments under this subsection. The
owner or operator making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as
the Secretary may require in the contract, of any assignment
made under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract
payments made to a person under a contract during any fiscal
year may not exceed the payment limitations established under
section 1105.
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates the conservation plan for the farm containing
eligible farmland under the contract, wetland protection
requirements applicable to the farm, or the planting
flexibility requirements of subsection (j), the Secretary
shall terminate the contract with respect to the owner or
operator. On the termination, the owner or operator shall
forfeit all rights to receive future contract payments and
shall refund to the Secretary all contract payments received
by the owner or operator during the period of the violation,
together with interest on the contract payments as determined
by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract
under paragraph (1), the Secretary may require the owner or
operator subject to the contract--
(A) to refund to the Secretary that part of the contract
payments received by the owner or operator during the period
of the violation, together with interest on the contract
payments as determined by the Secretary; or
(B) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the
violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator
continues or resumes operation, or control, of the contract
acreage. On the resumption of operation or control over the
contract acreage by the owner or operator, the provisions of
the contract in effect on the date of the foreclosure shall
apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a
contract of the right and interest of the owner or operator
in the contract acreage shall result in the termination of
the contract with respect to the acreage, effective on the
date of the transfer, unless the transferee of the acreage
agrees with the Secretary to assume all obligations of the
contract. At the request of
[[Page H 12511]]
the transferee, the Secretary may modify the contract if the
modifications are consistent with the objectives of this
section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed
by the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2)(A), any
commodity or crop may be planted on contract acreage.
(2) Limitations.--
(A) In general.--Except as provided in subparagraph (B),
the planting of any fruit or vegetable, and unlimited haying
and grazing, shall be permitted on not more than 15 percent
of the contract acreage.
(B) Exception.--Subparagraph (A) shall not apply to the
planting of contract commodities, lentils, mung beans, and
dry peas on contract acreage.
(3) Alfalfa.--The planting of alfalfa on contract acreage
is unlimited, except that the quantity of acreage on which
the contract payment of the owner or operator would otherwise
be based shall be reduced for each acre planted to alfalfa in
excess of the limitation in effect under paragraph (2)(A) for
the contract.
(4) Haying and grazing.--Subject to paragraphs (2) and (3),
haying and grazing of contract acreage shall be permitted,
except during any consecutive 5-month period that is
established by the State committee established under section
8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) for a State. The 5-month period shall be
established during the period beginning April 1, and ending
October 31, of a year. In the case of a natural disaster, the
Secretary may permit unlimited haying and grazing on the
contract acreage.
SEC. 1104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS.
(a) Availability of Nonrecourse Loans.--
(1) Availability.--For each of the 1996 through 2002 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm. The loans shall be
made under terms and conditions that are prescribed by the
Secretary and at the loan rate established under subsection
(b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under this section:
(A) In the case of a marketing assistance loan for a
contract commodity, any production by a producer who has
entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for wheat shall be--
(i) not less than 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of wheat to total use for the marketing year will be--
(i) equal to or greater than 30 percent, the Secretary may
reduce the loan rate for wheat for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than 15 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 15 percent, the Secretary may not reduce
the loan rate for wheat for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for wheat under subparagraph (B) shall not be considered
in determining the loan rate for wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for corn shall be--
(i) not less than 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of corn to total use for the marketing year will be--
(i) equal to or greater than 25 percent, the Secretary may
reduce the loan rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 25 percent but not less than 12.5 percent,
the Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 12.5 percent the Secretary may not reduce
the loan rate for corn for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for corn under subparagraph (B) shall not be considered
in determining the loan rate for corn for subsequent years.
(D) Other feed grains.--The loan rate for a marketing
assistance loan for grain sorghum, barley, and oats,
respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to
the rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation
to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for upland cotton shall be
established by the Secretary at such loan rate, per pound, as
will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the
United States a rate that is not less than the smaller of--
(i) 85 percent of the average price (weighted by market and
month) of the base quality of cotton as quoted in the
designated United States spot markets during 3 years of the
5-year period ending July 31 in the year in which the loan
rate 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 the period; or
(ii) 90 percent of the average, for the 15-week period
beginning July 1 of the year in which the loan rate is
announced, of the 5 lowest-priced growths of the growths
quoted for Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average difference during
the period April 15 through October 15 of the year in which
the loan is announced between the average Northern European
price quotation of such quality of cotton and the market
quotations in the designated United States spot markets for
the base quality of upland cotton), as determined by the
Secretary.
(B) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound
or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan for extra long staple cotton shall
be--
(A) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as
determined by the Secretary, during 3 years of the 5 previous
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 the period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
for rice shall be $6.50 per hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing assistance
loan for soybeans shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rates for a marketing
assistance loan for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be
$0.087 per pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan for other oilseeds shall be established at
such level as the Secretary determines is fair and reasonable
in relation to the loan rate available for soybeans, except
in no event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for soybeans on
a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity
(other than upland cotton or extra long staple cotton), a
marketing assistance loan under subsection (a) shall have a
term of 9 months beginning on the first day of the first
month after the month in which the loan is made. A marketing
assistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months. The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under
subsection (a) for a loan commodity (other than extra long
staple cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity under
subsection (b); or
(B) the prevailing world market price for the commodity
(adjusted to United States quality and location), as
determined by the Secretary.
(2) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under subsection (b).
(3) Prevailing world market price.--For purposes of
paragraph (1)(B) and subsection (f), the Secretary shall
prescribe by regulation--
(A) a formula to determine the prevailing world market
price for each loan commodity, adjusted to United States
quality and location; and
(B) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(4) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31, 2003,
the prevailing world market price for upland cotton (adjusted
to United States quality and location) established under
paragraph (3) shall be further adjusted if--
(i) the adjusted prevailing world market price is less than
115 percent of the loan rate for upland cotton established
under subsection (b), as determined by the Secretary; and
(ii) the Friday through Thursday average price quotation
for the lowest-priced United States growth as quoted for
Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through Thursday average
price of the 5 lowest-priced growths of upland cotton, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F.
Northern Europe (referred to in this subsection as the
``Northern Europe price'').
(B) Further adjustment.--Except as provided in subparagraph
(C), the adjusted prevailing world market price for upland
cotton shall
[[Page H 12512]]
be further adjusted on the basis of some or all of the following data,
as available:
(i) The United States share of world exports.
(ii) The current level of cotton export sales and cotton
export shipments.
(iii) Other data determined by the Secretary to be relevant
in establishing an accurate prevailing world market price for
upland cotton (adjusted to United States quality and
location).
(C) Limitation on further adjustment.--The adjustment under
subparagraph (B) may not exceed the difference between--
(i) the Friday through Thursday average price for the
lowest-priced United States growth as quoted for Middling
1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a) with respect to a loan
commodity, agree to forgo obtaining the loan for the
commodity in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under paragraph (3)
for the loan commodity; by
(B) the quantity of the loan commodity that the producers
on a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments
under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b) for the
loan commodity; exceeds
(B) the rate at which a loan for the commodity may be
repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) First handler marketing certificates.--
(A) In general.--During the period ending on July 31, 2003,
if the repayment rates provided in subsection (d) for upland
cotton or the availability of loan deficiency payments for
upland cotton under subsection (e) fails to make United
States upland cotton fully competitive in world markets and
the prevailing world market price of upland cotton (adjusted
to United States quality and location) is below the current
loan repayment rate for upland cotton, to make United States
upland 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 marketing certificates or cash payments
in accordance with this paragraph.
(B) Payments.--The Commodity Credit Corporation, under such
regulations as the Secretary may prescribe, shall make
payments, through the issuance of marketing certificates or
cash payments, to first handlers of upland cotton (persons
regularly engaged in buying or selling upland cotton) who
have entered into an agreement with the Commodity Credit
Corporation to participate in the program established under
this paragraph. The payments shall be made in such amounts
and subject to such terms and conditions as the Secretary
determines will make upland cotton produced in the United
States available at competitive prices, consistent with the
purposes of this paragraph.
(C) Value.--The value of each certificate or cash payment
issued under subparagraph (B) shall be based on the
difference between--
(i) the loan repayment rate for upland cotton; and
(ii) the prevailing world market price of upland cotton
(adjusted to United States quality and location), as
determined by the Secretary.
(D) Redemption, marketing, or exchange.--The Commodity
Credit Corporation, under regulations prescribed by the
Secretary, may assist any person receiving marketing
certificates under this paragraph in the redemption of
certificates for cash, or marketing or exchange of the
certificates for agricultural commodities or products owned
by the Commodity Credit Corporation, at such times, in such
manner, and at such price levels as the Secretary determines
will best effectuate the purposes of the program established
under this paragraph. Any price restrictions that may
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall not
apply to the redemption of certificates under this paragraph.
(E) Designation of commodities and products; charges.--
Insofar as practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the 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 the
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 the reasonable
number of days and ending with the date of the presentation
of the certificate to the Commodity Credit Corporation.
(F) Displacement.--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 subsection from adversely affecting the income of
producers of the commodities or products.
(G) Transfers.--Under regulations prescribed by the
Secretary, certificates issued to cotton handlers under this
paragraph may be transferred to other handlers and persons
approved by the Secretary.
(2) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during the
period ending July 31, 2003, the Secretary shall issue
marketing certificates or cash payments to domestic users and
exporters for documented purchases by domestic users and
sales for export by exporters made in the week following a
consecutive 4-week period in which--
(i) the Friday through Thursday average price quotation for
the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price for upland cotton
(adjusted to United States quality and location) does not
exceed 130 percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week
period multiplied by the quantity of upland cotton included
in the documented sales.
(C) Administration.--Subparagraphs (D) through (G) of
paragraph (1) shall apply to marketing certificates issued
under this paragraph. Any such certificates may be
transferred to other persons in accordance with regulations
issued by the Secretary.
(D) Exception.--The Secretary shall not issue marketing
certificates or cash payments under subparagraph (A) if, for
the immediately preceding consecutive 10-week period, the
Friday through Thursday average price quotation for the
lowest priced United States growth, as quoted for Middling
(M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe,
adjusted for the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more than
1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures under
this paragraph shall not exceed $701,000,000 during fiscal
year
s 1996 through 2002.
(3) Special import quota.--
(A) Establishment.--The President shall carry out an import
quota program that provides that, during the period ending
July 31, 2003, whenever the Secretary determines and
announces that for any consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern Europe, adjusted
for the value of any certificates issued under paragraph (2),
exceeds the Northern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a special import
quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(C) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under subparagraph (A) and entered
into the United States not later than 180 days after the
date.
(D) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
subparagraph (A), except that a special quota period may not
be established under this paragraph if a quota period has
been established under subsection (g).
(E) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(F) Definition.--In this paragraph, the term ``special
import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(g) Limited Global Import Quota For Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent
of the average price of such quality of cotton in the markets
for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a
limited global import quota subject to the following
conditions:
(A) Quantity.--The quantity of the quota shall be equal to
21 days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under this
subsection shall be the smaller of 21 days of domestic mill
consumption calculated under subparagraph (A) or the quantity
required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity under a
limited global import quota shall be considered to be an in-
quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
[[Page H 12513]]
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using the latest
official data of the Bureau of the Census, the Department of
Agriculture, and the Department of the Treasury--
(I) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the
quota is established;
(II) production of the current crop; and
(III) imports to the latest date available during the
marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted annual rate of domestic
mill consumption in the most recent 3 months for which data
are available; and
(II) the larger of--
(aa) average exports of upland cotton during the preceding
6 marketing years; or
(bb) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(iii) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(D) Quota entry period.--When a quota is established under
this subsection, cotton may be entered under the quota during
the 90-day period beginning on the date the quota is
established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(3).
SEC. 1105. PAYMENT LIMITATIONS.
(a) Limitation on Payments Under Production Flexibility
Contracts.--The total amount of contract payments made to a
person under 1 or more production flexibility contracts
during any fiscal year may not exceed $40,000.
(b) Limitation on Marketing Loan Gains and Loan Deficiency
Payments.--
(1) Limitation.--The total amount of payments specified in
paragraph (2) that a person shall be entitled to receive
under section 1104 for contract commodities and oilseeds
during any fiscal year may not exceed $75,000.
(2) Description of payments.--The payments referred to in
paragraph (1) are the following:
(A) Any gain realized by a producer from repaying a
marketing assistance loan for a crop of any loan commodity at
a lower level than the original loan rate established for the
commodity under section 1104(b).
(B) Any loan deficiency payment received for a loan
commodity under section 1104(e).
(c) Applicability of Other Provisions Regarding Payment
Limitations.--Paragraphs (5), (6), and (7) of section 1001
and section
s 1001A through 1001C of the Food Security Act of
1985 (7 U.S.C. 1308 et seq.) shall apply with respect to the
application of payment limitations under this section.
(d) Conforming Amendments.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking
``1997'' each place it appears in paragraphs (1)(A), (1)(B),
and (2)(A) and inserting ``1995''.
SEC. 1106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location
of peanuts and such other factors as are authorized by
section 411 of the Agricultural Adjustment Act of 1938.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration
the demand for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the demand for
peanuts in foreign markets.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for
which the loan rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and (b),
the Secretary shall make warehouse storage loans available in
each of the producing areas (described in section 1446.95 of
title 7 of the Code of Federal Regulations (January 1, 1989))
to a designated area marketing association of peanut
producers that is selected and approved by the Secretary and
that is operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse storage
loans 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 358e of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(B) Administrative and supervisory activities.--An area
marketing association shall be used in administrative and
supervisory activities relating to loans and marketing
activities under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(C) Association costs.--Loans made to the association under
this paragraph shall include such costs as the area marketing
association reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--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 the pools.
(B) Net gains.--Net gains on peanuts in each pool, unless
otherwise approved by the Secretary, shall be distributed
only to producers who placed peanuts in the pool and shall be
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) Quota peanuts.--For quota peanuts, the net gains over
and above the loan indebtedness and other costs or losses
incurred on peanuts placed in the pool.
(ii) Additional peanuts.--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.
(d) Losses.--Losses in quota area pools shall be covered
using the following sources in the following order of
priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed
to the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area
quota pools. The Secretary shall transfer to the Treasury
those funds collected under subsection (g) and available for
use under this subsection that the Secretary determines are
not required to cover losses in area quota pools.
(4) Cross compliance.--Further 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-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for
Valencia peanuts produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
(5) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to
cover losses in an area quota pool, the Secretary shall
increase the marketing assessment established under
subsection (g) by such an amount as the Secretary considers
necessary to cover the losses. The increased assessment shall
apply only to quota peanuts in the production area covered by
the pool. Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other
provision of law, no loan for quota peanuts may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved by
producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater risk of
deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must be
shown to have been officially inspected by licensed
Department of Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut program so
as to improve the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Administrative
Committee established under Marketing Agreement No. 146,
regulating the quality of domestically produced peanuts
(under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut program as a
result of this subsection requiring additional production or
handling at the farm level shall be reflected as an upward
adjustment in the Department of Agriculture loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement
No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent
for each of the 1994 and 1995 crops, 1.15 percent for the
1996 crop, and 1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional peanut
loan rate for the applicable crop.
(2) First purchasers.--
[[Page H 12514]]
(A) In general.--Except as provided under paragraphs (3)
and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing assessment equal
to the quantity of peanuts acquired multiplied by--
(I) in the case of each of the 1994 and 1995 crops, .55
percent of the applicable national average loan rate;
(II) in the case of the 1996 crop, .6 percent of the
applicable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops,
.65 percent of the applicable national average loan rate;
(ii) pay, in addition to the amount collected under clause
(i), a marketing assessment in an amount equal to the
quantity of peanuts acquired multiplied by .55 percent of the
applicable national average loan rate; and
(iii) remit the amounts required under clauses (i) and (ii)
to the Commodity Credit Corporation in a manner specified by
the Secretary.
(B) Definition of first purchaser.--In this subsection, the
term ``first purchaser'' means a person acquiring peanuts
from a producer except that in the case of peanuts forfeited
by a producer to the Commodity Credit Corporation, the term
means the person acquiring the peanuts from the Commodity
Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a
retail or wholesale outlet or in the case of a marketing by
the producer outside of the continental United States, the
producer shall be responsible for the full amount of the
assessment and shall remit the assessment by such time as is
specified by the Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, \1/2\ of
the assessment shall be deducted from the proceeds of the
loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty
up to an amount determined by multiplying--
(A) the quantity of peanuts involved in the violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective
only for the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991 through 1997
crops of'';
(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A),
(b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through
1997 marketing years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking ``1990'' and
inserting ``1990, for the 1991 through 1995 marketing years,
and 1995, for the 1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991 through 1997 marketing
years'' and inserting ``each marketing year''; and
(II) in clause (i), by inserting before the semicolon the
following: ``, in the case of the 1991 through 1995 marketing
years, and the 1995 marketing year, in the case of the 1996
through 2002 marketing years''; and
(v) in subsection (f), by striking ``1997'' and inserting
``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991 through 1995
crops of''; and
(ii) in subsection (c), by striking ``1995'' and inserting
``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking
``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for 1991 through
1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997'' and inserting
``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(3) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic edible,
seed,'' and inserting ``domestic edible use''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking ``subparagraph (B) and
subject to''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--Temporary
allocation of quota pounds for the marketing year only in
which the crop is planted shall be made to producers for each
of the 1996 through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota allocation shall be
equal to the pounds of seed peanuts planted on the farm, as
may be adjusted under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary allocation of
quota pounds under this paragraph shall be in addition to the
farm poundage quota otherwise established under this
subsection and shall be credited, for the applicable
marketing year only, in total to the producer of the peanuts
on the farm in a manner prescribed by the Secretary.
``(iv) Effect of other requirements.--Nothing in this
section alters or changes the requirements regarding the use
of quota and additional peanuts established by section
358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking ``including--'' and
clauses (i) and (ii) and inserting ``including any increases
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking ``include--'' and
clauses (i) and (ii) and inserting ``include any increase
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking ``(including any
applicable under marketings)'' both places it appears;
(ii) in paragraph (1)(A), by striking ``of undermarketings
and'';
(iii) in paragraph (2), by striking ``(including any
applicable under marketings)''; and
(iv) in paragraph (3), by striking ``(including any
applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragra
Amendments:
Cosponsors:
CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
Sponsor:
Summary:
All articles in House section
CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
(House of Representatives - November 15, 1995)
Text of this article available as:
TXT
PDF
[Pages
H12509-H13034]
[[Page H 12509]]
CONFERENCE REPORT ON
H.R. 2491, BALANCED BUDGET ACT OF 1995
Mr. HOBSON submitted the following conference report and statement on
the bill (
H.R. 2491) to provide for reconciliation pursuant to section
105 of the concurrent resolution on the budget for fiscal year 1996:
Conference Report (H. Rept. No. 104-347)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (
H.R.
2491), to provide for reconciliation pursuant to section 105
of the concurrent resolution on the budget for fiscal year
1996, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as
follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Balanced Budget Act of
1995''.
SEC. 2. TABLE OF TITLES.
This Act is organized into titles as follows:
Title I--Agriculture and Related Provisions
Title II--Banking, Housing, and Related Provisions
Title III--Communication and Spectrum Allocation Provisions
Title IV--Education and Related Provisions
Title V--Energy and Natural Resources Provisions
Title VI--Federal Retirement and Related Provisions
Title VII--Medicaid
Title VIII--Medicare
Title IX--Transportation and Related Provisions
Title X--Veterans and Related Provisions
Title XI--Revenues
Title XII--Teaching hospitals and graduate medical education; asset
sales; welfare; and other provisions
TITLE I--AGRICULTURE AND RELATED PROVISIONS
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the
``Agricultural Reconciliation Act of 1995''.
(b) Table of Contents.--The table of contents of this title
is as follows:
Sec. 1001. Short title; table of contents.
Subtitle A--Agricultural Market Transition Program
Sec. 1101. Short title.
Sec. 1102. Definitions.
Sec. 1103. Production flexibility contracts.
Sec. 1104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 1105. Payment limitations.
Sec. 1106. Peanut program.
Sec. 1107. Sugar program.
Sec. 1108. Administration.
Sec. 1109. Elimination of permanent price support authority.
Sec. 1110. Effect of amendments.
Subtitle B--Conservation
Sec. 1201. Conservation.
Subtitle C--Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Subtitle D--Miscellaneous
Sec. 1401. Crop insurance.
Sec. 1402. Collection and use of agricultural quarantine and inspection
fees.
Sec. 1403. Commodity Credit Corporation interest rate.
Subtitle A--Agricultural Market Transition Program
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Agricultural Market
Transition Act''.
SEC. 1102. DEFINITIONS.
In this subtitle:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in
effect prior to the amendment made by section 1109(b)(2)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 1103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section 1109(b)(2)).
If a crop acreage base was not enrolled in an annual program
for the 1995 crop in order to increase crop acreage base, the
contract acreage for the 1996 crop shall reflect the
increased base acreage that would have been established under
title V of the Act (as so in effect).
(4) Contract commodity.--The term `contract commodity'
means wheat, corn, grain sorghum, barley, oats, upland
cotton, and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 1103 pursuant to a contract.
(6) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior
to the amendment made by section 1109(b)(2)).
(7) Loan commodity.--The term `loan commodity' means each
contract commodity, extra long staple cotton, and oilseeds.
(8) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(9) Program.--The term ``program'' means the agricultural
market transition program established under this subtitle.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 1103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this subtitle, the
Secretary shall offer to enter into a contract with an
eligible owner or operator described in paragraph (2) on a
farm containing eligible farmland. Under the terms of a
contract, the owner or operator shall agree, in exchange for
annual contract payments, to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act of 1985
(16 U.S.C. 3812);
(B) wetland protection requirements applicable to the farm
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.); and
(C) the planting flexibility requirements of subsection
(j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator
eligible to enter into a contract:
(A) An owner of eligible farmland who assumes all of the
risk of producing a crop.
(B) An owner of eligible farmland who shares in the risk of
producing a crop.
(C) An operator of eligible farmland with a share-rent
lease of the eligible farmland, regardless of the length of
the lease, if the owner enters into the same contract.
[[Page H 12510]]
(D) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring on or after
September 30, 2002, in which case the consent of the owner is
not required.
(E) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring before September 30,
2002, if the owner consents to the contract.
(F) An owner of eligible farmland who cash rents the
eligible farmland and the lease term expires before September
30, 2002, but only if the actual operator of the farm
declines to enter into a contract. In the case of an owner
covered by this subparagraph, contract payments shall not
begin under a contract until the fiscal year following the
fiscal year in which the lease held by the nonparticipating
operator expires.
(G) An owner or operator described in a preceding
subparagraph regardless of whether the owner or operator
purchased catastrophic risk protection for a fall-planted
1996 crop under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of operators who are tenants and
sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph (B), the
Secretary may not enter into a contract after April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each fiscal year, the
Secretary shall allow an eligible owner or operator on a farm
covered by a conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date specified in
subparagraph (A) to enter into or expand a production
flexibility contract to cover the contract acreage of the
farm that was subject to the former conservation reserve
contract.
(ii) Amount.--Contract payments made for contract acreage
under this subparagraph shall be made at the rate and amount
applicable to the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity; or
(ii) in the case of acreage that was subject to a
conservation reserve contract described in paragraph (1)(B),
the date the production flexibility contract was entered into
or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through the 2002
crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to
be made during at least the first fiscal year for which
contract payments will be made.
(c) Eligible Farmland Described.--Land shall be considered
to be farmland eligible for coverage under a contract only if
the land has contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
1109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) whose term expired, or was voluntarily terminated, on
or after January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in
subsection (b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal year
s 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
operator, 50 percent of the contract payment for fiscal year
1996 shall be made not later than 60 days after the date on
which the owner or operator enters into a contract.
(B) Subsequent fiscal years.--At the option of the owner or
operator for fiscal year 1997 and each subsequent fiscal
year, 50 percent of the annual contract payment shall be made
on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal
Year.--
(1) In general.--The Secretary shall expend on a fiscal
year basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for
a particular fiscal year by--
(A) subtracting an amount equal to the amount, if any,
necessary to satisfy payment requirements under sections
101B, 103B, 105B, and 107B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section
1109(b)(2)) for the 1994 and 1995 crops of the commodity;
(B) adding an amount equal to the sum of all producer
repayments of deficiency payments received under section
114(a)(2) of the Act (as so in effect) for the commodity;
(C) adding an amount equal to the sum of all contract
payments withheld by the Secretary, at the request of
producers, during the preceding fiscal year as an offset
against producer repayments of deficiency payments otherwise
required under section 114(a)(2) of the Act (as so in effect)
for the commodity; and
(D) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under subsection (h) for the commodity.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract
commodity for each fiscal year shall be equal to the product
of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e) for the
contract commodity for the fiscal year; divided by
(B) the amount determined under paragraph (2) for the
fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph (1)
with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--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 contract payments under this subsection. The
owner or operator making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as
the Secretary may require in the contract, of any assignment
made under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract
payments made to a person under a contract during any fiscal
year may not exceed the payment limitations established under
section 1105.
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates the conservation plan for the farm containing
eligible farmland under the contract, wetland protection
requirements applicable to the farm, or the planting
flexibility requirements of subsection (j), the Secretary
shall terminate the contract with respect to the owner or
operator. On the termination, the owner or operator shall
forfeit all rights to receive future contract payments and
shall refund to the Secretary all contract payments received
by the owner or operator during the period of the violation,
together with interest on the contract payments as determined
by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract
under paragraph (1), the Secretary may require the owner or
operator subject to the contract--
(A) to refund to the Secretary that part of the contract
payments received by the owner or operator during the period
of the violation, together with interest on the contract
payments as determined by the Secretary; or
(B) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the
violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator
continues or resumes operation, or control, of the contract
acreage. On the resumption of operation or control over the
contract acreage by the owner or operator, the provisions of
the contract in effect on the date of the foreclosure shall
apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a
contract of the right and interest of the owner or operator
in the contract acreage shall result in the termination of
the contract with respect to the acreage, effective on the
date of the transfer, unless the transferee of the acreage
agrees with the Secretary to assume all obligations of the
contract. At the request of
[[Page H 12511]]
the transferee, the Secretary may modify the contract if the
modifications are consistent with the objectives of this
section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed
by the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2)(A), any
commodity or crop may be planted on contract acreage.
(2) Limitations.--
(A) In general.--Except as provided in subparagraph (B),
the planting of any fruit or vegetable, and unlimited haying
and grazing, shall be permitted on not more than 15 percent
of the contract acreage.
(B) Exception.--Subparagraph (A) shall not apply to the
planting of contract commodities, lentils, mung beans, and
dry peas on contract acreage.
(3) Alfalfa.--The planting of alfalfa on contract acreage
is unlimited, except that the quantity of acreage on which
the contract payment of the owner or operator would otherwise
be based shall be reduced for each acre planted to alfalfa in
excess of the limitation in effect under paragraph (2)(A) for
the contract.
(4) Haying and grazing.--Subject to paragraphs (2) and (3),
haying and grazing of contract acreage shall be permitted,
except during any consecutive 5-month period that is
established by the State committee established under section
8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) for a State. The 5-month period shall be
established during the period beginning April 1, and ending
October 31, of a year. In the case of a natural disaster, the
Secretary may permit unlimited haying and grazing on the
contract acreage.
SEC. 1104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS.
(a) Availability of Nonrecourse Loans.--
(1) Availability.--For each of the 1996 through 2002 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm. The loans shall be
made under terms and conditions that are prescribed by the
Secretary and at the loan rate established under subsection
(b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under this section:
(A) In the case of a marketing assistance loan for a
contract commodity, any production by a producer who has
entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for wheat shall be--
(i) not less than 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of wheat to total use for the marketing year will be--
(i) equal to or greater than 30 percent, the Secretary may
reduce the loan rate for wheat for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than 15 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 15 percent, the Secretary may not reduce
the loan rate for wheat for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for wheat under subparagraph (B) shall not be considered
in determining the loan rate for wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for corn shall be--
(i) not less than 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of corn to total use for the marketing year will be--
(i) equal to or greater than 25 percent, the Secretary may
reduce the loan rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 25 percent but not less than 12.5 percent,
the Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 12.5 percent the Secretary may not reduce
the loan rate for corn for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for corn under subparagraph (B) shall not be considered
in determining the loan rate for corn for subsequent years.
(D) Other feed grains.--The loan rate for a marketing
assistance loan for grain sorghum, barley, and oats,
respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to
the rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation
to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for upland cotton shall be
established by the Secretary at such loan rate, per pound, as
will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the
United States a rate that is not less than the smaller of--
(i) 85 percent of the average price (weighted by market and
month) of the base quality of cotton as quoted in the
designated United States spot markets during 3 years of the
5-year period ending July 31 in the year in which the loan
rate 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 the period; or
(ii) 90 percent of the average, for the 15-week period
beginning July 1 of the year in which the loan rate is
announced, of the 5 lowest-priced growths of the growths
quoted for Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average difference during
the period April 15 through October 15 of the year in which
the loan is announced between the average Northern European
price quotation of such quality of cotton and the market
quotations in the designated United States spot markets for
the base quality of upland cotton), as determined by the
Secretary.
(B) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound
or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan for extra long staple cotton shall
be--
(A) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as
determined by the Secretary, during 3 years of the 5 previous
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 the period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
for rice shall be $6.50 per hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing assistance
loan for soybeans shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rates for a marketing
assistance loan for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be
$0.087 per pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan for other oilseeds shall be established at
such level as the Secretary determines is fair and reasonable
in relation to the loan rate available for soybeans, except
in no event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for soybeans on
a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity
(other than upland cotton or extra long staple cotton), a
marketing assistance loan under subsection (a) shall have a
term of 9 months beginning on the first day of the first
month after the month in which the loan is made. A marketing
assistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months. The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under
subsection (a) for a loan commodity (other than extra long
staple cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity under
subsection (b); or
(B) the prevailing world market price for the commodity
(adjusted to United States quality and location), as
determined by the Secretary.
(2) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under subsection (b).
(3) Prevailing world market price.--For purposes of
paragraph (1)(B) and subsection (f), the Secretary shall
prescribe by regulation--
(A) a formula to determine the prevailing world market
price for each loan commodity, adjusted to United States
quality and location; and
(B) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(4) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31, 2003,
the prevailing world market price for upland cotton (adjusted
to United States quality and location) established under
paragraph (3) shall be further adjusted if--
(i) the adjusted prevailing world market price is less than
115 percent of the loan rate for upland cotton established
under subsection (b), as determined by the Secretary; and
(ii) the Friday through Thursday average price quotation
for the lowest-priced United States growth as quoted for
Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through Thursday average
price of the 5 lowest-priced growths of upland cotton, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F.
Northern Europe (referred to in this subsection as the
``Northern Europe price'').
(B) Further adjustment.--Except as provided in subparagraph
(C), the adjusted prevailing world market price for upland
cotton shall
[[Page H 12512]]
be further adjusted on the basis of some or all of the following data,
as available:
(i) The United States share of world exports.
(ii) The current level of cotton export sales and cotton
export shipments.
(iii) Other data determined by the Secretary to be relevant
in establishing an accurate prevailing world market price for
upland cotton (adjusted to United States quality and
location).
(C) Limitation on further adjustment.--The adjustment under
subparagraph (B) may not exceed the difference between--
(i) the Friday through Thursday average price for the
lowest-priced United States growth as quoted for Middling
1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a) with respect to a loan
commodity, agree to forgo obtaining the loan for the
commodity in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under paragraph (3)
for the loan commodity; by
(B) the quantity of the loan commodity that the producers
on a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments
under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b) for the
loan commodity; exceeds
(B) the rate at which a loan for the commodity may be
repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) First handler marketing certificates.--
(A) In general.--During the period ending on July 31, 2003,
if the repayment rates provided in subsection (d) for upland
cotton or the availability of loan deficiency payments for
upland cotton under subsection (e) fails to make United
States upland cotton fully competitive in world markets and
the prevailing world market price of upland cotton (adjusted
to United States quality and location) is below the current
loan repayment rate for upland cotton, to make United States
upland 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 marketing certificates or cash payments
in accordance with this paragraph.
(B) Payments.--The Commodity Credit Corporation, under such
regulations as the Secretary may prescribe, shall make
payments, through the issuance of marketing certificates or
cash payments, to first handlers of upland cotton (persons
regularly engaged in buying or selling upland cotton) who
have entered into an agreement with the Commodity Credit
Corporation to participate in the program established under
this paragraph. The payments shall be made in such amounts
and subject to such terms and conditions as the Secretary
determines will make upland cotton produced in the United
States available at competitive prices, consistent with the
purposes of this paragraph.
(C) Value.--The value of each certificate or cash payment
issued under subparagraph (B) shall be based on the
difference between--
(i) the loan repayment rate for upland cotton; and
(ii) the prevailing world market price of upland cotton
(adjusted to United States quality and location), as
determined by the Secretary.
(D) Redemption, marketing, or exchange.--The Commodity
Credit Corporation, under regulations prescribed by the
Secretary, may assist any person receiving marketing
certificates under this paragraph in the redemption of
certificates for cash, or marketing or exchange of the
certificates for agricultural commodities or products owned
by the Commodity Credit Corporation, at such times, in such
manner, and at such price levels as the Secretary determines
will best effectuate the purposes of the program established
under this paragraph. Any price restrictions that may
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall not
apply to the redemption of certificates under this paragraph.
(E) Designation of commodities and products; charges.--
Insofar as practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the 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 the
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 the reasonable
number of days and ending with the date of the presentation
of the certificate to the Commodity Credit Corporation.
(F) Displacement.--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 subsection from adversely affecting the income of
producers of the commodities or products.
(G) Transfers.--Under regulations prescribed by the
Secretary, certificates issued to cotton handlers under this
paragraph may be transferred to other handlers and persons
approved by the Secretary.
(2) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during the
period ending July 31, 2003, the Secretary shall issue
marketing certificates or cash payments to domestic users and
exporters for documented purchases by domestic users and
sales for export by exporters made in the week following a
consecutive 4-week period in which--
(i) the Friday through Thursday average price quotation for
the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price for upland cotton
(adjusted to United States quality and location) does not
exceed 130 percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week
period multiplied by the quantity of upland cotton included
in the documented sales.
(C) Administration.--Subparagraphs (D) through (G) of
paragraph (1) shall apply to marketing certificates issued
under this paragraph. Any such certificates may be
transferred to other persons in accordance with regulations
issued by the Secretary.
(D) Exception.--The Secretary shall not issue marketing
certificates or cash payments under subparagraph (A) if, for
the immediately preceding consecutive 10-week period, the
Friday through Thursday average price quotation for the
lowest priced United States growth, as quoted for Middling
(M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe,
adjusted for the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more than
1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures under
this paragraph shall not exceed $701,000,000 during fiscal
year
s 1996 through 2002.
(3) Special import quota.--
(A) Establishment.--The President shall carry out an import
quota program that provides that, during the period ending
July 31, 2003, whenever the Secretary determines and
announces that for any consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern Europe, adjusted
for the value of any certificates issued under paragraph (2),
exceeds the Northern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a special import
quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(C) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under subparagraph (A) and entered
into the United States not later than 180 days after the
date.
(D) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
subparagraph (A), except that a special quota period may not
be established under this paragraph if a quota period has
been established under subsection (g).
(E) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(F) Definition.--In this paragraph, the term ``special
import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(g) Limited Global Import Quota For Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent
of the average price of such quality of cotton in the markets
for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a
limited global import quota subject to the following
conditions:
(A) Quantity.--The quantity of the quota shall be equal to
21 days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under this
subsection shall be the smaller of 21 days of domestic mill
consumption calculated under subparagraph (A) or the quantity
required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity under a
limited global import quota shall be considered to be an in-
quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
[[Page H 12513]]
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using the latest
official data of the Bureau of the Census, the Department of
Agriculture, and the Department of the Treasury--
(I) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the
quota is established;
(II) production of the current crop; and
(III) imports to the latest date available during the
marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted annual rate of domestic
mill consumption in the most recent 3 months for which data
are available; and
(II) the larger of--
(aa) average exports of upland cotton during the preceding
6 marketing years; or
(bb) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(iii) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(D) Quota entry period.--When a quota is established under
this subsection, cotton may be entered under the quota during
the 90-day period beginning on the date the quota is
established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(3).
SEC. 1105. PAYMENT LIMITATIONS.
(a) Limitation on Payments Under Production Flexibility
Contracts.--The total amount of contract payments made to a
person under 1 or more production flexibility contracts
during any fiscal year may not exceed $40,000.
(b) Limitation on Marketing Loan Gains and Loan Deficiency
Payments.--
(1) Limitation.--The total amount of payments specified in
paragraph (2) that a person shall be entitled to receive
under section 1104 for contract commodities and oilseeds
during any fiscal year may not exceed $75,000.
(2) Description of payments.--The payments referred to in
paragraph (1) are the following:
(A) Any gain realized by a producer from repaying a
marketing assistance loan for a crop of any loan commodity at
a lower level than the original loan rate established for the
commodity under section 1104(b).
(B) Any loan deficiency payment received for a loan
commodity under section 1104(e).
(c) Applicability of Other Provisions Regarding Payment
Limitations.--Paragraphs (5), (6), and (7) of section 1001
and section
s 1001A through 1001C of the Food Security Act of
1985 (7 U.S.C. 1308 et seq.) shall apply with respect to the
application of payment limitations under this section.
(d) Conforming Amendments.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking
``1997'' each place it appears in paragraphs (1)(A), (1)(B),
and (2)(A) and inserting ``1995''.
SEC. 1106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location
of peanuts and such other factors as are authorized by
section 411 of the Agricultural Adjustment Act of 1938.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration
the demand for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the demand for
peanuts in foreign markets.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for
which the loan rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and (b),
the Secretary shall make warehouse storage loans available in
each of the producing areas (described in section 1446.95 of
title 7 of the Code of Federal Regulations (January 1, 1989))
to a designated area marketing association of peanut
producers that is selected and approved by the Secretary and
that is operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse storage
loans 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 358e of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(B) Administrative and supervisory activities.--An area
marketing association shall be used in administrative and
supervisory activities relating to loans and marketing
activities under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(C) Association costs.--Loans made to the association under
this paragraph shall include such costs as the area marketing
association reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--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 the pools.
(B) Net gains.--Net gains on peanuts in each pool, unless
otherwise approved by the Secretary, shall be distributed
only to producers who placed peanuts in the pool and shall be
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) Quota peanuts.--For quota peanuts, the net gains over
and above the loan indebtedness and other costs or losses
incurred on peanuts placed in the pool.
(ii) Additional peanuts.--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.
(d) Losses.--Losses in quota area pools shall be covered
using the following sources in the following order of
priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed
to the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area
quota pools. The Secretary shall transfer to the Treasury
those funds collected under subsection (g) and available for
use under this subsection that the Secretary determines are
not required to cover losses in area quota pools.
(4) Cross compliance.--Further 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-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for
Valencia peanuts produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
(5) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to
cover losses in an area quota pool, the Secretary shall
increase the marketing assessment established under
subsection (g) by such an amount as the Secretary considers
necessary to cover the losses. The increased assessment shall
apply only to quota peanuts in the production area covered by
the pool. Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other
provision of law, no loan for quota peanuts may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved by
producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater risk of
deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must be
shown to have been officially inspected by licensed
Department of Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut program so
as to improve the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Administrative
Committee established under Marketing Agreement No. 146,
regulating the quality of domestically produced peanuts
(under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut program as a
result of this subsection requiring additional production or
handling at the farm level shall be reflected as an upward
adjustment in the Department of Agriculture loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement
No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent
for each of the 1994 and 1995 crops, 1.15 percent for the
1996 crop, and 1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional peanut
loan rate for the applicable crop.
(2) First purchasers.--
[[Page H 12514]]
(A) In general.--Except as provided under paragraphs (3)
and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing assessment equal
to the quantity of peanuts acquired multiplied by--
(I) in the case of each of the 1994 and 1995 crops, .55
percent of the applicable national average loan rate;
(II) in the case of the 1996 crop, .6 percent of the
applicable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops,
.65 percent of the applicable national average loan rate;
(ii) pay, in addition to the amount collected under clause
(i), a marketing assessment in an amount equal to the
quantity of peanuts acquired multiplied by .55 percent of the
applicable national average loan rate; and
(iii) remit the amounts required under clauses (i) and (ii)
to the Commodity Credit Corporation in a manner specified by
the Secretary.
(B) Definition of first purchaser.--In this subsection, the
term ``first purchaser'' means a person acquiring peanuts
from a producer except that in the case of peanuts forfeited
by a producer to the Commodity Credit Corporation, the term
means the person acquiring the peanuts from the Commodity
Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a
retail or wholesale outlet or in the case of a marketing by
the producer outside of the continental United States, the
producer shall be responsible for the full amount of the
assessment and shall remit the assessment by such time as is
specified by the Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, \1/2\ of
the assessment shall be deducted from the proceeds of the
loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty
up to an amount determined by multiplying--
(A) the quantity of peanuts involved in the violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective
only for the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991 through 1997
crops of'';
(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A),
(b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through
1997 marketing years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking ``1990'' and
inserting ``1990, for the 1991 through 1995 marketing years,
and 1995, for the 1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991 through 1997 marketing
years'' and inserting ``each marketing year''; and
(II) in clause (i), by inserting before the semicolon the
following: ``, in the case of the 1991 through 1995 marketing
years, and the 1995 marketing year, in the case of the 1996
through 2002 marketing years''; and
(v) in subsection (f), by striking ``1997'' and inserting
``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991 through 1995
crops of''; and
(ii) in subsection (c), by striking ``1995'' and inserting
``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking
``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for 1991 through
1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997'' and inserting
``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(3) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic edible,
seed,'' and inserting ``domestic edible use''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking ``subparagraph (B) and
subject to''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--Temporary
allocation of quota pounds for the marketing year only in
which the crop is planted shall be made to producers for each
of the 1996 through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota allocation shall be
equal to the pounds of seed peanuts planted on the farm, as
may be adjusted under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary allocation of
quota pounds under this paragraph shall be in addition to the
farm poundage quota otherwise established under this
subsection and shall be credited, for the applicable
marketing year only, in total to the producer of the peanuts
on the farm in a manner prescribed by the Secretary.
``(iv) Effect of other requirements.--Nothing in this
section alters or changes the requirements regarding the use
of quota and additional peanuts established by section
358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking ``including--'' and
clauses (i) and (ii) and inserting ``including any increases
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking ``include--'' and
clauses (i) and (ii) and inserting ``include any increase
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking ``(including any
applicable under marketings)'' both places it appears;
(ii) in paragraph (1)(A), by striking ``of undermarketings
and'';
(iii) in paragraph (2), by striking ``(including any
applicable under marketings)''; and
(iv) in paragraph (3), by striking ``(including any
applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragraph (4)(A)(
Major Actions:
All articles in House section
CONFERENCE REPORT ON H.R. 2491, BALANCED BUDGET ACT OF 1995
(House of Representatives - November 15, 1995)
Text of this article available as:
TXT
PDF
[Pages
H12509-H13034]
[[Page H 12509]]
CONFERENCE REPORT ON
H.R. 2491, BALANCED BUDGET ACT OF 1995
Mr. HOBSON submitted the following conference report and statement on
the bill (
H.R. 2491) to provide for reconciliation pursuant to section
105 of the concurrent resolution on the budget for fiscal year 1996:
Conference Report (H. Rept. No. 104-347)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (
H.R.
2491), to provide for reconciliation pursuant to section 105
of the concurrent resolution on the budget for fiscal year
1996, having met, after full and free conference, have agreed
to recommend and do recommend to their respective Houses as
follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Balanced Budget Act of
1995''.
SEC. 2. TABLE OF TITLES.
This Act is organized into titles as follows:
Title I--Agriculture and Related Provisions
Title II--Banking, Housing, and Related Provisions
Title III--Communication and Spectrum Allocation Provisions
Title IV--Education and Related Provisions
Title V--Energy and Natural Resources Provisions
Title VI--Federal Retirement and Related Provisions
Title VII--Medicaid
Title VIII--Medicare
Title IX--Transportation and Related Provisions
Title X--Veterans and Related Provisions
Title XI--Revenues
Title XII--Teaching hospitals and graduate medical education; asset
sales; welfare; and other provisions
TITLE I--AGRICULTURE AND RELATED PROVISIONS
SEC. 1001. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the
``Agricultural Reconciliation Act of 1995''.
(b) Table of Contents.--The table of contents of this title
is as follows:
Sec. 1001. Short title; table of contents.
Subtitle A--Agricultural Market Transition Program
Sec. 1101. Short title.
Sec. 1102. Definitions.
Sec. 1103. Production flexibility contracts.
Sec. 1104. Nonrecourse marketing assistance loans and loan deficiency
payments.
Sec. 1105. Payment limitations.
Sec. 1106. Peanut program.
Sec. 1107. Sugar program.
Sec. 1108. Administration.
Sec. 1109. Elimination of permanent price support authority.
Sec. 1110. Effect of amendments.
Subtitle B--Conservation
Sec. 1201. Conservation.
Subtitle C--Agricultural Promotion and Export Programs
Sec. 1301. Market promotion program.
Sec. 1302. Export enhancement program.
Subtitle D--Miscellaneous
Sec. 1401. Crop insurance.
Sec. 1402. Collection and use of agricultural quarantine and inspection
fees.
Sec. 1403. Commodity Credit Corporation interest rate.
Subtitle A--Agricultural Market Transition Program
SEC. 1101. SHORT TITLE.
This subtitle may be cited as the ``Agricultural Market
Transition Act''.
SEC. 1102. DEFINITIONS.
In this subtitle:
(1) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) (as in
effect prior to the amendment made by section 1109(b)(2)).
(2) Contract.--The term ``contract'' means a production
flexibility contract entered into under section 1103.
(3) Contract acreage.--The term ``contract acreage'' means
1 or more crop acreage bases established for contract
commodities under title V of the Agricultural Act of 1949 (as
in effect prior to the amendment made by section 1109(b)(2)).
If a crop acreage base was not enrolled in an annual program
for the 1995 crop in order to increase crop acreage base, the
contract acreage for the 1996 crop shall reflect the
increased base acreage that would have been established under
title V of the Act (as so in effect).
(4) Contract commodity.--The term `contract commodity'
means wheat, corn, grain sorghum, barley, oats, upland
cotton, and rice.
(5) Contract payment.--The term ``contract payment'' means
a payment made under section 1103 pursuant to a contract.
(6) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield
established for the 1995 crop of a contract commodity under
title V of the Agricultural Act of 1949 (as in effect prior
to the amendment made by section 1109(b)(2)).
(7) Loan commodity.--The term `loan commodity' means each
contract commodity, extra long staple cotton, and oilseeds.
(8) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary,
other oilseeds.
(9) Program.--The term ``program'' means the agricultural
market transition program established under this subtitle.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 1103. PRODUCTION FLEXIBILITY CONTRACTS.
(a) Contracts Authorized.--
(1) Offer and terms.--Beginning as soon as practicable
after the date of the enactment of this subtitle, the
Secretary shall offer to enter into a contract with an
eligible owner or operator described in paragraph (2) on a
farm containing eligible farmland. Under the terms of a
contract, the owner or operator shall agree, in exchange for
annual contract payments, to comply with--
(A) the conservation plan for the farm prepared in
accordance with section 1212 of the Food Security Act of 1985
(16 U.S.C. 3812);
(B) wetland protection requirements applicable to the farm
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.); and
(C) the planting flexibility requirements of subsection
(j).
(2) Eligible owners and operators described.--The following
persons shall be considered to be an owner or operator
eligible to enter into a contract:
(A) An owner of eligible farmland who assumes all of the
risk of producing a crop.
(B) An owner of eligible farmland who shares in the risk of
producing a crop.
(C) An operator of eligible farmland with a share-rent
lease of the eligible farmland, regardless of the length of
the lease, if the owner enters into the same contract.
[[Page H 12510]]
(D) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring on or after
September 30, 2002, in which case the consent of the owner is
not required.
(E) An operator of eligible farmland who cash rents the
eligible farmland under a lease expiring before September 30,
2002, if the owner consents to the contract.
(F) An owner of eligible farmland who cash rents the
eligible farmland and the lease term expires before September
30, 2002, but only if the actual operator of the farm
declines to enter into a contract. In the case of an owner
covered by this subparagraph, contract payments shall not
begin under a contract until the fiscal year following the
fiscal year in which the lease held by the nonparticipating
operator expires.
(G) An owner or operator described in a preceding
subparagraph regardless of whether the owner or operator
purchased catastrophic risk protection for a fall-planted
1996 crop under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)).
(3) Tenants and sharecroppers.--In carrying out this
section, the Secretary shall provide adequate safeguards to
protect the interests of operators who are tenants and
sharecroppers.
(b) Elements.--
(1) Time for contracting.--
(A) Deadline.--Except as provided in subparagraph (B), the
Secretary may not enter into a contract after April 15, 1996.
(B) Conservation reserve lands.--
(i) In general.--At the beginning of each fiscal year, the
Secretary shall allow an eligible owner or operator on a farm
covered by a conservation reserve contract entered into under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) that terminates after the date specified in
subparagraph (A) to enter into or expand a production
flexibility contract to cover the contract acreage of the
farm that was subject to the former conservation reserve
contract.
(ii) Amount.--Contract payments made for contract acreage
under this subparagraph shall be made at the rate and amount
applicable to the annual contract payment level for the
applicable crop.
(2) Duration of contract.--
(A) Beginning date.--A contract shall begin with--
(i) the 1996 crop of a contract commodity; or
(ii) in the case of acreage that was subject to a
conservation reserve contract described in paragraph (1)(B),
the date the production flexibility contract was entered into
or expanded to cover the acreage.
(B) Ending date.--A contract shall extend through the 2002
crop.
(3) Estimation of contract payments.--At the time the
Secretary enters into a contract, the Secretary shall provide
an estimate of the minimum contract payments anticipated to
be made during at least the first fiscal year for which
contract payments will be made.
(c) Eligible Farmland Described.--Land shall be considered
to be farmland eligible for coverage under a contract only if
the land has contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 (as in effect prior to the amendment made by section
1109(b)(2)) or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C.
3831) whose term expired, or was voluntarily terminated, on
or after January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on
January 1, 1995, and ending on the date specified in
subsection (b)(1)(A).
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal year
s 1996
through 2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
operator, 50 percent of the contract payment for fiscal year
1996 shall be made not later than 60 days after the date on
which the owner or operator enters into a contract.
(B) Subsequent fiscal years.--At the option of the owner or
operator for fiscal year 1997 and each subsequent fiscal
year, 50 percent of the annual contract payment shall be made
on December 15.
(e) Amounts Available for Contract Payments for Each Fiscal
Year.--
(1) In general.--The Secretary shall expend on a fiscal
year basis the following amounts to satisfy the obligations
of the Secretary under all contracts:
(A) For fiscal year 1996, $5,570,000,000.
(B) For fiscal year 1997, $5,385,000,000.
(C) For fiscal year 1998, $5,800,000,000.
(D) For fiscal year 1999, $5,603,000,000.
(E) For fiscal year 2000, $5,130,000,000.
(F) For fiscal year 2001, $4,130,000,000.
(G) For fiscal year 2002, $4,008,000,000.
(2) Allocation.--The amount made available for a fiscal
year under paragraph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghum, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upland cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) Adjustment.--The Secretary shall adjust the amounts
allocated for each contract commodity under paragraph (2) for
a particular fiscal year by--
(A) subtracting an amount equal to the amount, if any,
necessary to satisfy payment requirements under sections
101B, 103B, 105B, and 107B of the Agricultural Act of 1949
(as in effect prior to the amendment made by section
1109(b)(2)) for the 1994 and 1995 crops of the commodity;
(B) adding an amount equal to the sum of all producer
repayments of deficiency payments received under section
114(a)(2) of the Act (as so in effect) for the commodity;
(C) adding an amount equal to the sum of all contract
payments withheld by the Secretary, at the request of
producers, during the preceding fiscal year as an offset
against producer repayments of deficiency payments otherwise
required under section 114(a)(2) of the Act (as so in effect)
for the commodity; and
(D) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under subsection (h) for the commodity.
(f) Determination of Contract Payments.--
(1) Individual payment quantity of contract commodities.--
For each contract, the payment quantity of a contract
commodity for each fiscal year shall be equal to the product
of--
(A) 85 percent of the contract acreage; and
(B) the farm program payment yield.
(2) Annual payment quantity of contract commodities.--The
payment quantity of each contract commodity covered by all
contracts for each fiscal year shall equal the sum of the
amounts calculated under paragraph (1) for each individual
contract.
(3) Annual payment rate.--The payment rate for a contract
commodity for each fiscal year shall be equal to--
(A) the amount made available under subsection (e) for the
contract commodity for the fiscal year; divided by
(B) the amount determined under paragraph (2) for the
fiscal year.
(4) Annual payment amount.--The amount to be paid under a
contract in effect for each fiscal year with respect to a
contract commodity shall be equal to the product of--
(A) the payment quantity determined under paragraph (1)
with respect to the contract; and
(B) the payment rate in effect under paragraph (3).
(5) Assignment of contract payments.--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 contract payments under this subsection. The
owner or operator making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as
the Secretary may require in the contract, of any assignment
made under this paragraph.
(6) Sharing of contract payments.--The Secretary shall
provide for the sharing of contract payments among the owners
and operators subject to the contract on a fair and equitable
basis.
(g) Payment Limitation.--The total amount of contract
payments made to a person under a contract during any fiscal
year may not exceed the payment limitations established under
section 1105.
(h) Effect of Violation.--
(1) Termination of contract.--Except as provided in
paragraph (2), if an owner or operator subject to a contract
violates the conservation plan for the farm containing
eligible farmland under the contract, wetland protection
requirements applicable to the farm, or the planting
flexibility requirements of subsection (j), the Secretary
shall terminate the contract with respect to the owner or
operator. On the termination, the owner or operator shall
forfeit all rights to receive future contract payments and
shall refund to the Secretary all contract payments received
by the owner or operator during the period of the violation,
together with interest on the contract payments as determined
by the Secretary.
(2) Refund or adjustment.--If the Secretary determines that
a violation does not warrant termination of the contract
under paragraph (1), the Secretary may require the owner or
operator subject to the contract--
(A) to refund to the Secretary that part of the contract
payments received by the owner or operator during the period
of the violation, together with interest on the contract
payments as determined by the Secretary; or
(B) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the
violation, as determined by the Secretary.
(3) Foreclosure.--An owner or operator subject to a
contract may not be required to make repayments to the
Secretary of amounts received under the contract if the
contract acreage has been foreclosed on and the Secretary
determines that forgiving the repayments is appropriate in
order to provide fair and equitable treatment. This paragraph
shall not void the responsibilities of such an owner or
operator under the contract if the owner or operator
continues or resumes operation, or control, of the contract
acreage. On the resumption of operation or control over the
contract acreage by the owner or operator, the provisions of
the contract in effect on the date of the foreclosure shall
apply.
(4) Review.--A determination of the Secretary under this
subsection shall be considered to be an adverse decision for
purposes of the availability of administrative review of the
determination.
(i) Transfer of Interest in Lands Subject to Contract.--
(1) Effect of transfer.--Except as provided in paragraph
(2), the transfer by an owner or operator subject to a
contract of the right and interest of the owner or operator
in the contract acreage shall result in the termination of
the contract with respect to the acreage, effective on the
date of the transfer, unless the transferee of the acreage
agrees with the Secretary to assume all obligations of the
contract. At the request of
[[Page H 12511]]
the transferee, the Secretary may modify the contract if the
modifications are consistent with the objectives of this
section as determined by the Secretary.
(2) Exception.--If an owner or operator who is entitled to
a contract payment dies, becomes incompetent, or is otherwise
unable to receive the contract payment, the Secretary shall
make the payment, in accordance with regulations prescribed
by the Secretary.
(j) Planting Flexibility.--
(1) Permitted crops.--Subject to paragraph (2)(A), any
commodity or crop may be planted on contract acreage.
(2) Limitations.--
(A) In general.--Except as provided in subparagraph (B),
the planting of any fruit or vegetable, and unlimited haying
and grazing, shall be permitted on not more than 15 percent
of the contract acreage.
(B) Exception.--Subparagraph (A) shall not apply to the
planting of contract commodities, lentils, mung beans, and
dry peas on contract acreage.
(3) Alfalfa.--The planting of alfalfa on contract acreage
is unlimited, except that the quantity of acreage on which
the contract payment of the owner or operator would otherwise
be based shall be reduced for each acre planted to alfalfa in
excess of the limitation in effect under paragraph (2)(A) for
the contract.
(4) Haying and grazing.--Subject to paragraphs (2) and (3),
haying and grazing of contract acreage shall be permitted,
except during any consecutive 5-month period that is
established by the State committee established under section
8(b) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(b)) for a State. The 5-month period shall be
established during the period beginning April 1, and ending
October 31, of a year. In the case of a natural disaster, the
Secretary may permit unlimited haying and grazing on the
contract acreage.
SEC. 1104. NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS.
(a) Availability of Nonrecourse Loans.--
(1) Availability.--For each of the 1996 through 2002 crops
of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans
for loan commodities produced on the farm. The loans shall be
made under terms and conditions that are prescribed by the
Secretary and at the loan rate established under subsection
(b) for the loan commodity.
(2) Eligible production.--The following production shall be
eligible for a marketing assistance loan under this section:
(A) In the case of a marketing assistance loan for a
contract commodity, any production by a producer who has
entered into a production flexibility contract.
(B) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(b) Loan Rates.--
(1) Wheat.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for wheat shall be--
(i) not less than 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $2.58 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of wheat to total use for the marketing year will be--
(i) equal to or greater than 30 percent, the Secretary may
reduce the loan rate for wheat for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than 15 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 15 percent, the Secretary may not reduce
the loan rate for wheat for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for wheat under subparagraph (B) shall not be considered
in determining the loan rate for wheat for subsequent years.
(2) Feed grains.--
(A) Loan rate for corn.--Subject to subparagraph (B), the
loan rate for a marketing assistance loan for corn shall be--
(i) not less than 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the 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 the period; but
(ii) not more than $1.89 per bushel.
(B) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending
stocks of corn to total use for the marketing year will be--
(i) equal to or greater than 25 percent, the Secretary may
reduce the loan rate for corn for the corresponding crop by
an amount not to exceed 10 percent in any year;
(ii) less than 25 percent but not less than 12.5 percent,
the Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 5 percent in
any year; or
(iii) less than 12.5 percent the Secretary may not reduce
the loan rate for corn for the corresponding crop.
(C) No effect on future years.--Any reduction in the loan
rate for corn under subparagraph (B) shall not be considered
in determining the loan rate for corn for subsequent years.
(D) Other feed grains.--The loan rate for a marketing
assistance loan for grain sorghum, barley, and oats,
respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to
the rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation
to corn.
(3) Upland cotton.--
(A) Loan rate.--Subject to subparagraph (B), the loan rate
for a marketing assistance loan for upland cotton shall be
established by the Secretary at such loan rate, per pound, as
will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the
United States a rate that is not less than the smaller of--
(i) 85 percent of the average price (weighted by market and
month) of the base quality of cotton as quoted in the
designated United States spot markets during 3 years of the
5-year period ending July 31 in the year in which the loan
rate 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 the period; or
(ii) 90 percent of the average, for the 15-week period
beginning July 1 of the year in which the loan rate is
announced, of the 5 lowest-priced growths of the growths
quoted for Middling 1\3/32\-inch cotton C.I.F. Northern
Europe (adjusted downward by the average difference during
the period April 15 through October 15 of the year in which
the loan is announced between the average Northern European
price quotation of such quality of cotton and the market
quotations in the designated United States spot markets for
the base quality of upland cotton), as determined by the
Secretary.
(B) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound
or more than $0.5192 per pound.
(4) Extra long staple cotton.--The loan rate for a
marketing assistance loan for extra long staple cotton shall
be--
(A) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as
determined by the Secretary, during 3 years of the 5 previous
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 the period; but
(B) not more than $0.7965 per pound.
(5) Rice.--The loan rate for a marketing assistance loan
for rice shall be $6.50 per hundredweight.
(6) Oilseeds.--
(A) Soybeans.--The loan rate for a marketing assistance
loan for soybeans shall be $4.92 per bushel.
(B) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rates for a marketing
assistance loan for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be
$0.087 per pound.
(C) Other oilseeds.--The loan rates for a marketing
assistance loan for other oilseeds shall be established at
such level as the Secretary determines is fair and reasonable
in relation to the loan rate available for soybeans, except
in no event shall the rate for the oilseeds (other than
cottonseed) be less than the rate established for soybeans on
a per-pound basis for the same crop.
(c) Term of Loan.--In the case of each loan commodity
(other than upland cotton or extra long staple cotton), a
marketing assistance loan under subsection (a) shall have a
term of 9 months beginning on the first day of the first
month after the month in which the loan is made. A marketing
assistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months. The Secretary may not extend
the term of a marketing assistance loan for any loan
commodity.
(d) Repayment.--
(1) Repayment rates generally.--The Secretary shall permit
producers to repay a marketing assistance loan under
subsection (a) for a loan commodity (other than extra long
staple cotton) at a level that is the lesser of--
(A) the loan rate established for the commodity under
subsection (b); or
(B) the prevailing world market price for the commodity
(adjusted to United States quality and location), as
determined by the Secretary.
(2) Repayment rates for extra long staple cotton.--
Repayment of a marketing assistance loan for extra long
staple cotton shall be at the loan rate established for the
commodity under subsection (b).
(3) Prevailing world market price.--For purposes of
paragraph (1)(B) and subsection (f), the Secretary shall
prescribe by regulation--
(A) a formula to determine the prevailing world market
price for each loan commodity, adjusted to United States
quality and location; and
(B) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(4) Adjustment of prevailing world market price for upland
cotton.--
(A) In general.--During the period ending July 31, 2003,
the prevailing world market price for upland cotton (adjusted
to United States quality and location) established under
paragraph (3) shall be further adjusted if--
(i) the adjusted prevailing world market price is less than
115 percent of the loan rate for upland cotton established
under subsection (b), as determined by the Secretary; and
(ii) the Friday through Thursday average price quotation
for the lowest-priced United States growth as quoted for
Middling (M) 1\3/32\-inch cotton delivered C.I.F. Northern
Europe is greater than the Friday through Thursday average
price of the 5 lowest-priced growths of upland cotton, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered C.I.F.
Northern Europe (referred to in this subsection as the
``Northern Europe price'').
(B) Further adjustment.--Except as provided in subparagraph
(C), the adjusted prevailing world market price for upland
cotton shall
[[Page H 12512]]
be further adjusted on the basis of some or all of the following data,
as available:
(i) The United States share of world exports.
(ii) The current level of cotton export sales and cotton
export shipments.
(iii) Other data determined by the Secretary to be relevant
in establishing an accurate prevailing world market price for
upland cotton (adjusted to United States quality and
location).
(C) Limitation on further adjustment.--The adjustment under
subparagraph (B) may not exceed the difference between--
(i) the Friday through Thursday average price for the
lowest-priced United States growth as quoted for Middling
1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) Loan Deficiency Payments.--
(1) Availability.--Except as provided in paragraph (4), the
Secretary may make loan deficiency payments available to
producers who, although eligible to obtain a marketing
assistance loan under subsection (a) with respect to a loan
commodity, agree to forgo obtaining the loan for the
commodity in return for payments under this subsection.
(2) Computation.--A loan deficiency payment under this
subsection shall be computed by multiplying--
(A) the loan payment rate determined under paragraph (3)
for the loan commodity; by
(B) the quantity of the loan commodity that the producers
on a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments
under this subsection.
(3) Loan payment rate.--For purposes of this subsection,
the loan payment rate shall be the amount by which--
(A) the loan rate established under subsection (b) for the
loan commodity; exceeds
(B) the rate at which a loan for the commodity may be
repaid under subsection (d).
(4) Exception for extra long staple cotton.--This
subsection shall not apply with respect to extra long staple
cotton.
(f) Special Marketing Loan Provisions for Upland Cotton.--
(1) First handler marketing certificates.--
(A) In general.--During the period ending on July 31, 2003,
if the repayment rates provided in subsection (d) for upland
cotton or the availability of loan deficiency payments for
upland cotton under subsection (e) fails to make United
States upland cotton fully competitive in world markets and
the prevailing world market price of upland cotton (adjusted
to United States quality and location) is below the current
loan repayment rate for upland cotton, to make United States
upland 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 marketing certificates or cash payments
in accordance with this paragraph.
(B) Payments.--The Commodity Credit Corporation, under such
regulations as the Secretary may prescribe, shall make
payments, through the issuance of marketing certificates or
cash payments, to first handlers of upland cotton (persons
regularly engaged in buying or selling upland cotton) who
have entered into an agreement with the Commodity Credit
Corporation to participate in the program established under
this paragraph. The payments shall be made in such amounts
and subject to such terms and conditions as the Secretary
determines will make upland cotton produced in the United
States available at competitive prices, consistent with the
purposes of this paragraph.
(C) Value.--The value of each certificate or cash payment
issued under subparagraph (B) shall be based on the
difference between--
(i) the loan repayment rate for upland cotton; and
(ii) the prevailing world market price of upland cotton
(adjusted to United States quality and location), as
determined by the Secretary.
(D) Redemption, marketing, or exchange.--The Commodity
Credit Corporation, under regulations prescribed by the
Secretary, may assist any person receiving marketing
certificates under this paragraph in the redemption of
certificates for cash, or marketing or exchange of the
certificates for agricultural commodities or products owned
by the Commodity Credit Corporation, at such times, in such
manner, and at such price levels as the Secretary determines
will best effectuate the purposes of the program established
under this paragraph. Any price restrictions that may
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall not
apply to the redemption of certificates under this paragraph.
(E) Designation of commodities and products; charges.--
Insofar as practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the 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 the
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 the reasonable
number of days and ending with the date of the presentation
of the certificate to the Commodity Credit Corporation.
(F) Displacement.--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 subsection from adversely affecting the income of
producers of the commodities or products.
(G) Transfers.--Under regulations prescribed by the
Secretary, certificates issued to cotton handlers under this
paragraph may be transferred to other handlers and persons
approved by the Secretary.
(2) Cotton user marketing certificates.--
(A) Issuance.--Subject to subparagraph (D), during the
period ending July 31, 2003, the Secretary shall issue
marketing certificates or cash payments to domestic users and
exporters for documented purchases by domestic users and
sales for export by exporters made in the week following a
consecutive 4-week period in which--
(i) the Friday through Thursday average price quotation for
the lowest-priced United States growth, as quoted for
Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by more than 1.25
cents per pound; and
(ii) the prevailing world market price for upland cotton
(adjusted to United States quality and location) does not
exceed 130 percent of the loan rate for upland cotton
established under subsection (b).
(B) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week
period multiplied by the quantity of upland cotton included
in the documented sales.
(C) Administration.--Subparagraphs (D) through (G) of
paragraph (1) shall apply to marketing certificates issued
under this paragraph. Any such certificates may be
transferred to other persons in accordance with regulations
issued by the Secretary.
(D) Exception.--The Secretary shall not issue marketing
certificates or cash payments under subparagraph (A) if, for
the immediately preceding consecutive 10-week period, the
Friday through Thursday average price quotation for the
lowest priced United States growth, as quoted for Middling
(M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe,
adjusted for the value of any certificate issued under this
paragraph, exceeds the Northern Europe price by more than
1.25 cents per pound.
(E) Limitation on expenditures.--Total expenditures under
this paragraph shall not exceed $701,000,000 during fiscal
year
s 1996 through 2002.
(3) Special import quota.--
(A) Establishment.--The President shall carry out an import
quota program that provides that, during the period ending
July 31, 2003, whenever the Secretary determines and
announces that for any consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/
32\-inch cotton, delivered C.I.F. Northern Europe, adjusted
for the value of any certificates issued under paragraph (2),
exceeds the Northern Europe price by more than 1.25 cents per
pound, there shall immediately be in effect a special import
quota.
(B) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(C) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under subparagraph (A) and entered
into the United States not later than 180 days after the
date.
(D) Overlap.--A special quota period may be established
that overlaps any existing quota period if required by
subparagraph (A), except that a special quota period may not
be established under this paragraph if a quota period has
been established under subsection (g).
(E) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(F) Definition.--In this paragraph, the term ``special
import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(g) Limited Global Import Quota For Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in
the designated spot markets for a month exceeded 130 percent
of the average price of such quality of cotton in the markets
for the preceding 36 months, notwithstanding any other
provision of law, there shall immediately be in effect a
limited global import quota subject to the following
conditions:
(A) Quantity.--The quantity of the quota shall be equal to
21 days of domestic mill consumption of upland cotton at the
seasonally adjusted average rate of the most recent 3 months
for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding 12
months, the quantity of the quota next established under this
subsection shall be the smaller of 21 days of domestic mill
consumption calculated under subparagraph (A) or the quantity
required to increase the supply to 130 percent of the demand.
(C) Preferential tariff treatment.--The quantity under a
limited global import quota shall be considered to be an in-
quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade Preference Act (19
U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974 (19 U.S.C.
2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
[[Page H 12513]]
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using the latest
official data of the Bureau of the Census, the Department of
Agriculture, and the Department of the Treasury--
(I) the carry-over of upland cotton at the beginning of the
marketing year (adjusted to 480-pound bales) in which the
quota is established;
(II) production of the current crop; and
(III) imports to the latest date available during the
marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted annual rate of domestic
mill consumption in the most recent 3 months for which data
are available; and
(II) the larger of--
(aa) average exports of upland cotton during the preceding
6 marketing years; or
(bb) cumulative exports of upland cotton plus outstanding
export sales for the marketing year in which the quota is
established.
(iii) Limited global import quota.--The term ``limited
global import quota'' means a quantity of imports that is not
subject to the over-quota tariff rate of a tariff-rate quota.
(D) Quota entry period.--When a quota is established under
this subsection, cotton may be entered under the quota during
the 90-day period beginning on the date the quota is
established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(f)(3).
SEC. 1105. PAYMENT LIMITATIONS.
(a) Limitation on Payments Under Production Flexibility
Contracts.--The total amount of contract payments made to a
person under 1 or more production flexibility contracts
during any fiscal year may not exceed $40,000.
(b) Limitation on Marketing Loan Gains and Loan Deficiency
Payments.--
(1) Limitation.--The total amount of payments specified in
paragraph (2) that a person shall be entitled to receive
under section 1104 for contract commodities and oilseeds
during any fiscal year may not exceed $75,000.
(2) Description of payments.--The payments referred to in
paragraph (1) are the following:
(A) Any gain realized by a producer from repaying a
marketing assistance loan for a crop of any loan commodity at
a lower level than the original loan rate established for the
commodity under section 1104(b).
(B) Any loan deficiency payment received for a loan
commodity under section 1104(e).
(c) Applicability of Other Provisions Regarding Payment
Limitations.--Paragraphs (5), (6), and (7) of section 1001
and section
s 1001A through 1001C of the Food Security Act of
1985 (7 U.S.C. 1308 et seq.) shall apply with respect to the
application of payment limitations under this section.
(d) Conforming Amendments.--Section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308) is amended by striking
``1997'' each place it appears in paragraphs (1)(A), (1)(B),
and (2)(A) and inserting ``1995''.
SEC. 1106. PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location
of peanuts and such other factors as are authorized by
section 411 of the Agricultural Adjustment Act of 1938.
(b) Additional Peanuts.--
(1) In general.--The Secretary shall make nonrecourse loans
available to producers of additional peanuts at such rates as
the Secretary finds appropriate, taking into consideration
the demand for peanut oil and peanut meal, expected prices of
other vegetable oils and protein meals, and the demand for
peanuts in foreign markets.
(2) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than
February 15 preceding the marketing year for the crop for
which the loan rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and (b),
the Secretary shall make warehouse storage loans available in
each of the producing areas (described in section 1446.95 of
title 7 of the Code of Federal Regulations (January 1, 1989))
to a designated area marketing association of peanut
producers that is selected and approved by the Secretary and
that is operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse storage
loans 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 358e of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(B) Administrative and supervisory activities.--An area
marketing association shall be used in administrative and
supervisory activities relating to loans and marketing
activities under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(C) Association costs.--Loans made to the association under
this paragraph shall include such costs as the area marketing
association reasonably may incur in carrying out the
responsibilities, operations, and activities of the
association under this section and section 358e of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) In general.--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 the pools.
(B) Net gains.--Net gains on peanuts in each pool, unless
otherwise approved by the Secretary, shall be distributed
only to producers who placed peanuts in the pool and shall be
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) Quota peanuts.--For quota peanuts, the net gains over
and above the loan indebtedness and other costs or losses
incurred on peanuts placed in the pool.
(ii) Additional peanuts.--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.
(d) Losses.--Losses in quota area pools shall be covered
using the following sources in the following order of
priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of
any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the
producer under section 358-1(b)(8) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)).
(2) Other producers in same pool.--Further losses in an
area quota pool shall be offset by reducing the gain of any
producer in the pool by the amount of pool gains attributed
to the same producer from the sale of additional peanuts for
domestic and export edible use.
(3) Use of marketing assessments.--The Secretary shall use
funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area
quota pools. The Secretary shall transfer to the Treasury
those funds collected under subsection (g) and available for
use under this subsection that the Secretary determines are
not required to cover losses in area quota pools.
(4) Cross compliance.--Further 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-
1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)), shall be offset by any gains or profits from
quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for
Valencia peanuts produced in New Mexico) in such manner as
the Secretary shall by regulation prescribe.
(5) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to
cover losses in an area quota pool, the Secretary shall
increase the marketing assessment established under
subsection (g) by such an amount as the Secretary considers
necessary to cover the losses. The increased assessment shall
apply only to quota peanuts in the production area covered by
the pool. Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the
Secretary to cover losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other
provision of law, no loan for quota peanuts may be made
available by the Secretary for any crop of peanuts with
respect to which poundage quotas have been disapproved by
producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater risk of
deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must be
shown to have been officially inspected by licensed
Department of Agriculture inspectors both as farmer stock and
shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut program so
as to improve the quality of domestic peanuts and ensure the
coordination of activities under the Peanut Administrative
Committee established under Marketing Agreement No. 146,
regulating the quality of domestically produced peanuts
(under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut program as a
result of this subsection requiring additional production or
handling at the farm level shall be reflected as an upward
adjustment in the Department of Agriculture loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully
comply with all quality standards under Marketing Agreement
No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be
made on a per pound basis in an amount equal to 1.1 percent
for each of the 1994 and 1995 crops, 1.15 percent for the
1996 crop, and 1.2 percent for each of the 1997 through 2002
crops, of the national average quota or additional peanut
loan rate for the applicable crop.
(2) First purchasers.--
[[Page H 12514]]
(A) In general.--Except as provided under paragraphs (3)
and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing assessment equal
to the quantity of peanuts acquired multiplied by--
(I) in the case of each of the 1994 and 1995 crops, .55
percent of the applicable national average loan rate;
(II) in the case of the 1996 crop, .6 percent of the
applicable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops,
.65 percent of the applicable national average loan rate;
(ii) pay, in addition to the amount collected under clause
(i), a marketing assessment in an amount equal to the
quantity of peanuts acquired multiplied by .55 percent of the
applicable national average loan rate; and
(iii) remit the amounts required under clauses (i) and (ii)
to the Commodity Credit Corporation in a manner specified by
the Secretary.
(B) Definition of first purchaser.--In this subsection, the
term ``first purchaser'' means a person acquiring peanuts
from a producer except that in the case of peanuts forfeited
by a producer to the Commodity Credit Corporation, the term
means the person acquiring the peanuts from the Commodity
Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a
retail or wholesale outlet or in the case of a marketing by
the producer outside of the continental United States, the
producer shall be responsible for the full amount of the
assessment and shall remit the assessment by such time as is
specified by the Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, \1/2\ of
the assessment shall be deducted from the proceeds of the
loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the
producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are
required by the Secretary to carry out this subsection, the
person shall be liable to the Secretary for a civil penalty
up to an amount determined by multiplying--
(A) the quantity of peanuts involved in the violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) Crops.--Subsections (a) through (f) shall be effective
only for the 1996 through 2002 crops of peanuts.
(i) Marketing Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991 through 1997
crops of'';
(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A),
(b)(2)(C), and (b)(3)(A), by striking ``of the 1991 through
1997 marketing years'' each place it appears and inserting
``marketing year'';
(iii) in subsection (a)(3), by striking ``1990'' and
inserting ``1990, for the 1991 through 1995 marketing years,
and 1995, for the 1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991 through 1997 marketing
years'' and inserting ``each marketing year''; and
(II) in clause (i), by inserting before the semicolon the
following: ``, in the case of the 1991 through 1995 marketing
years, and the 1995 marketing year, in the case of the 1996
through 2002 marketing years''; and
(v) in subsection (f), by striking ``1997'' and inserting
``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991 through 1995
crops of''; and
(ii) in subsection (c), by striking ``1995'' and inserting
``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by striking
``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for 1991 through
1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997'' and inserting
``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Act (7 U.S.C. 1358-1(a)(1)) is amended by striking the second
sentence.
(3) Temporary quota allocation.--Section 358-1 of the Act
(7 U.S.C. 1358-1) is amended--
(A) in subsection (a)(1), by striking ``domestic edible,
seed,'' and inserting ``domestic edible use''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking ``subparagraph (B) and
subject to''; and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--Temporary
allocation of quota pounds for the marketing year only in
which the crop is planted shall be made to producers for each
of the 1996 through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota allocation shall be
equal to the pounds of seed peanuts planted on the farm, as
may be adjusted under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary allocation of
quota pounds under this paragraph shall be in addition to the
farm poundage quota otherwise established under this
subsection and shall be credited, for the applicable
marketing year only, in total to the producer of the peanuts
on the farm in a manner prescribed by the Secretary.
``(iv) Effect of other requirements.--Nothing in this
section alters or changes the requirements regarding the use
of quota and additional peanuts established by section
358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Act is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
(i) in paragraph (1)(B), by striking ``including--'' and
clauses (i) and (ii) and inserting ``including any increases
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking ``include--'' and
clauses (i) and (ii) and inserting ``include any increase
resulting from the allocation of quotas voluntarily released
for 1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (1), by striking ``(including any
applicable under marketings)'' both places it appears;
(ii) in paragraph (1)(A), by striking ``of undermarketings
and'';
(iii) in paragraph (2), by striking ``(including any
applicable under marketings)''; and
(iv) in paragraph (3), by striking ``(including any
applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the Act (7
U.S.C. 1358-1(b)), as amended by paragra
Amendments:
Cosponsors:
