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AMENDMENTS SUBMITTED
(Senate - January 31, 1996)

Text of this article available as: TXT PDF [Pages S589-S663] AMENDMENTS SUBMITTED ______ THE AGRICULTURAL MARKET TRANSITION ACT OF 1996 ______ GREGG (AND REID) AMENDMENTS NOS. 3123-3124 (Ordered to lie on the table.) [[Page S590]] Mr. GREGG (for himself and Mr. Reid) submitted two amendments intended to be proposed by them to the bill (S. 1541) to extend, reform, and improve agricultural commodity, trade, conservation, and other programs, and for other purposes; as follows: Amendment No. 3123 Strike section 17 relating to the sugar program. ____ Amendment No. 3124 On page 43, strike lines 10 through 19. Strike section 17 relating to the sugar program and insert the following: SEC. 17. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION ADJUSTMENT PROGRAMS. (a) Acreage Allotments and Marketing Quotas.--Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed. (b) Sugar Loan Forfeitures.--Section 902 of the Food Security Act of 1985 (7 U.S.C. 1446 note) is amended-- (1) by striking subsection (a); and (2) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively. (c) Commodity Credit Corporation.--Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting after ``agricultural commodities'' the following: ``(other than sugar)''. (d) Section 32.--The second sentence of the first paragraph of section 32 of the Act entitled ``An Act to amend the Agricultural Adjustment Act, and for other purposes'', approved August 24, 1935 (7 U.S.C. 612c), is amended-- (1) by inserting ``(other than sugar)'' after ``commodities'' each place it appears; and (2) by inserting ``(other than sugar)'' after ``commodities'' each place it appears. (e) Transition Provisions.--The amendments made by this section shall not affect the liability of any person under any provision of law as in effect before the application of the amendments in accordance with subsection (f). (f) Application of Section.--This section and the amendments made by this section shall apply beginning with the 1996 crop of sugar beets and sugarcane. ______ DORGAN AMENDMENT NO. 3125 (Ordered to lie on the table.) Mr. DORGAN submitted an amendment intended to be proposed by him to the bill S. 1541, supra; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Farm Security Act of 1996''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--COMMODITY PROGRAMS Sec. 101. Wheat, feed grain, and oilseed program. Sec. 102. Upland cotton program. Sec. 103. Rice program. Sec. 104. Peanut program. Sec. 105. Dairy program. Sec. 106. Sugar program. Sec. 107. Sheep industry transition program. Sec. 108. Suspension of permanent price support authority. Sec. 109. Extension of related price support provisions. Sec. 110. Crop insurance administrative fee. Sec. 111. Effective date. TITLE II--CONSERVATION Sec. 201. Conservation reserve program. Sec. 202. Environmental quality incentives program. TITLE III--NUTRITION ASSISTANCE Sec. 301. Food stamp program. Sec. 302. Commodity distribution program; commodity supplemental food program. Sec. 303. Emergency food assistance program. Sec. 304. Soup kitchens program. Sec. 305. National commodity processing. TITLE I--COMMODITY PROGRAMS SEC. 101. WHEAT, FEED GRAIN, AND OILSEED PROGRAM. (a) In General.--Title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended by adding the end the following: ``SEC. 116. MARKETING LOANS AND LOAN DEFICIENCY PAYMENTS FOR 1996 THROUGH 2002 CROPS OF WHEAT, FEED GRAINS, AND OILSEEDS. ``(a) Definitions.--In this section: ``(1) Covered commodities.--The term `covered commodities' means wheat, feed grains, and oilseeds. ``(2) Feed grains.--The term `feed grains' means corn, grain sorghum, barley, oats, millet, rye, or as designated by the Secretary, other feed grains. ``(3) Oilseeds.--The term `oilseeds' means soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or as designated by the Secretary, other oilseeds. ``(b) Adjustment Account.-- ``(1) Definition of payment bushel of production.--In this subsection, the term `payment bushel of production' means-- ``(A) in the case of wheat, \7/10\ of a bushel; ``(B) in the case of corn, a bushel; and ``(C) in the case of other feed grains, a quantity determined by the Secretary. ``(2) Establishment.--The Secretary shall establish an Adjustment Account (referred to in this subsection as the `Account') for making-- ``(A) payments to producers of the 1996 through 2002 crops of covered commodities who participate in the marketing loan program established under subsection (c); and ``(B) payments to producers of the 1994 and 1995 crops of covered commodities that are authorized, but not paid, under sections 105B and 107B prior to the date of enactment of this section. ``(3) Amount in account.--The Secretary shall transfer from funds of the Commodity Credit Corporation into the Account-- ``(A) $3,000,000,000 for fiscal year 1996; and ``(B) $3,900,000,000 for each of fiscal years 1997 through 2002; to remain available until expended. ``(4) Payments.--The Secretary shall use funds in the Account to make payments to producers of wheat and feed grains in accordance with this subsection. ``(5) Tier 1 support.-- ``(A) In general.--The producers on a farm referred to in paragraph (2) shall be entitled to a payment computed by multiplying-- ``(i) the payment quantity determined under subparagraph (B); by ``(ii) the payment factor determined under subparagraph (C). ``(B) Payment quantity.-- ``(i) In general.--Subject to clause (ii), the payment quantity for payments under subparagraph (A) shall be determined by the Secretary based on-- ``(I) 90 percent of the 5-year average of the quantity of wheat and feed grains produced on the farm; ``(II) an adjustment to reflect any disaster or other circumstance beyond the control of the producers that adversely affected production of wheat or feed grains, as determined by the Secretary; and ``(III) an adjustment for planting resource conservation crops on the crop acreage base for covered commodities, and adopting conserving uses, on the base not enrolled in the environmental reserve program provided in paragraph (6). ``(ii) Limitations.--The quantity determined under clause (i) for an individual, directly or indirectly, shall not exceed 30,000 payment bushels of wheat or feed grains and may be adjusted by the Secretary to reflect the availability of funds. ``(C) Payment factor.-- ``(i) Wheat.--The payment factor for wheat under subparagraph (A) shall be equal to the difference between a price established by the Secretary, of not to exceed $4.00 per bushel, and the greater of-- ``(I) the marketing loan rate for the crop of wheat; or ``(II) the average domestic price for wheat for the crop for the calendar year in which the crop is normally harvested. ``(ii) Corn.--The payment factor for corn under subparagraph (A) shall be equal to the difference between a price established by the Secretary, of not to exceed $2.75 per bushel, and the greater of-- ``(I) the marketing loan rate for the crop of corn; or ``(II) the average domestic price for corn for the crop for the calendar year in which the crop is normally harvested; ``(iii) Other feed grains.--The payment factor for other feed grains under subparagraph (A) shall be established by the Secretary at such level as the Secretary determines is fair and reasonable in relation to the payment factor for corn. ``(D) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable. ``(6) Environmental reserve program.-- ``(A) In general.--The Secretary may enter into 1 to 5 year contracts with producers on a farm referred to in paragraph (2) for the purposes of enrolling flexible acreage base for conserving use purposes. ``(B) Limitation.--Flexible acreage base enrolled in the environmental reserve program shall not be eligible for benefits provided in paragraph (5)(B). ``(c) Marketing Loans.-- ``(1) In general.--The Secretary shall make available to producers on a farm marketing loans for each of the 1996 through 2002 crops of covered commodities produced on the farm. ``(2) Eligibility.-- ``(A) In general.--To be eligible for a loan under this subsection, the producers on a farm may not plant covered commodities on the farm in excess of the flexible acreage base of the farm determined under section 502. [[Page S591]] ``(B) Amount.--The Secretary shall provide marketing loans for their normal production of covered commodities produced on a farm. ``(3) Loan rate.-- ``(A) In general.--Loans made under this subsection shall be made at the rate of 90 percent of the average price for the commodity for the previous 5 crop years, as determined by the Secretary. ``(B) Adjustments.--For each of the 1996 through 2002 crops of covered commodities, the Secretary may not adjust local loan rates by a factor greater than 3 percent of the national loan rate. ``(4) Repayment.-- ``(A) Calculation.--Producers on a farm may repay loans made under this subsection for a crop at a level that is the lesser of-- ``(i) the loan level determined for the crop; or ``(ii) the prevailing domestic market price for the commodity (adjusted to location and quality), as determined by the Secretary. ``(B) Prevailing domestic market price.--The Secretary shall prescribe by regulation-- ``(i) a formula to determine the prevailing domestic market price for each covered commodity; and ``(ii) a mechanism by which the Secretary shall announce periodically the prevailing domestic market prices established under this subsection. ``(d) Loan Deficiency Payments.-- ``(1) In general.--The Secretary may, for each of the 1996 through 2002 crops of covered commodities, make payments (referred to in this subsection as `loan deficiency payments') available to producers who, although eligible to obtain a marketing loan under subsection (c), agree to forgo obtaining the loan in return for payments under this subsection. ``(2) Computation.--A payment under this subsection shall be computed by multiplying-- ``(A) the loan payment rate; by ``(B) the quantity of a covered commodity the producer is eligible to place under loan but for which the producer forgoes obtaining the loan in return for payments under this subsection. ``(3) Loan payment rate.-- ``(A) In general.--For the purposes of this subsection, the loan payment rate shall be the amount by which-- ``(i) the marketing loan rate determined for the crop under subsection (c)(3); exceeds ``(ii) the level at which a loan may be repaid under subsection (c)(4). ``(B) Date.--The date on which the calculation required under subparagraph (A) for the producers on a farm shall be determined by the producers, except that the date may not be later than the earlier of-- ``(i) the date the producers lost beneficial interest in the crop; or ``(ii) the end of the marketing year for the crop. ``(4) Application.--Producers on a farm may apply for a payment for a covered commodity under this subsection at any time prior to the end of the marketing year for the commodity. ``(e) Equitable Relief.--If the failure of a producer to comply fully with the terms and conditions of programs conducted under this section precludes the making of loans and payments, the Secretary may, nevertheless, make the loans and payments in such amounts as the Secretary determines are equitable in relation to the seriousness of the failure. ``(f) Commodity Credit Corporation.--The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. ``(g) Assignment of 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 payments under this section. ``(h) Tenants and Sharecroppers.--In carrying out this section, the Secretary shall provide adequate safeguards to protect the interest of tenants and sharecroppers. ``(i) Crops.--This section shall be effective only for the 1996 through 2002 crops of a covered commodity.''. (b) Flexible Acreage Base.-- (1) Definitions.--Section 502 of the Agricultural Act of 1949 (7 U.S.C. 1462) is amended by striking paragraphs (2) and (3) and inserting the following: ``(2) Feed grains.--The term `feed grains' means corn, grain sorghum, barley, oats, millet, rye, or as designated by the Secretary, other feed grains. ``(3) Go crops.--The term `GO crops' means wheat, feed grains, and oilseeds. ``(4) Oilseeds.--The term `oilseed' means a crop of soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, other oilseeds. ``(5) Program crop.--The term `program crop' means a GO crop and a crop of upland cotton or rice.''. (2) Crop acreage bases.--Section 503(a) of the Act (7 U.S.C. 1463(a)) is amended by striking paragraph (1) and inserting the following: ``(1) In general.-- ``(A) Go crops.--The Secretary shall provide for the establishment and maintenance of a single crop acreage base for GO crops, including any GO crops produced under an established practice of double cropping. ``(B) Cotton and rice.--The Secretary shall provide for the establishment and maintenance of crop acreage bases for cotton and rice crops, including any program crop produced under an established practice of double cropping.''. SEC. 102. UPLAND COTTON PROGRAM. (a) Extension.--Section 103B of the Agricultural Act of 1949 (7 U.S.C. 1444-2) is amended-- (1) in the section heading, by striking ``1997'' and inserting ``2002''; (2) in subsections (a)(1), (b)(1), (c)(1), and (o), by striking ``1997'' each place it appears and inserting ``2002''; (3) in subsection (a)(5), by striking ``1998'' each place it appears and inserting ``2002''; (4) in the heading of subsection (c)(1)(D)(v)(II), by striking ``1997'' and inserting ``2002''; (5) in subsection (e)(1)(D), by striking ``the 1997 crop'' and inserting ``each of the 1997 through 2002 crops''; and (6) in subsections (e)(3)(A) and (f)(1), by striking ``1995'' each place it appears and inserting ``2002''. (b) Increase in Nonpayment Acres.--Section 103B(c)(1)(C) of the Act is amended by striking ``85 percent'' and inserting ``80 percent for each of the 1996 through 2002 crops''. (c) Advance Payment.--Section 103B(c)(1) of the Act is amended by adding at the end the following: ``(F) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable.''. SEC. 103. RICE PROGRAM. (a) Extension.--Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is amended-- (1) in the section heading, by striking ``1995'' and inserting ``2002''; (2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking ``1995'' each place it appears and inserting ``2002''; (3) in subsection (a)(5)(D)(i), by striking ``1996'' and inserting ``2003''; and (4) in subsection (c)(1)-- (A) in subparagraph (B)(ii)-- (i) by striking ``and 1995'' and inserting ``through 2002''; and (ii) by striking ``and 1995'' and inserting ``through 2002''; and (B) in subparagraph (D)-- (i) in clauses (i) and (v)(II), by striking ``1997'' each place it appears and inserting ``2002''; and (ii) in the heading of clause (v)(II), by striking ``1997'' and inserting ``2002''. (b) Increase in Nonpayment Acres.--Section 101B(c)(1)(C)(ii) of the Act is amended by striking ``85 percent'' and inserting ``80 percent for each of the 1998 through 2002 crops''. (c) Advance Payment.--Section 101B(c)(1) of the Act is amended by adding at the end the following: ``(F) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable.''. SEC. 104. PEANUT PROGRAM. (a) Extension.-- (1) Agricultural act of 1949.--Section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) is amended-- (A) in the section heading, by striking ``1997'' and inserting ``2002''; (B) in subsection (a)(1), (b)(1), and (h), by striking ``1997'' each place it appears and inserting ``2002''; and (C) in subsection (g)-- (i) by striking ``1997'' in paragraphs (1) and (2)(A)(ii)(II) and inserting ``2002''; and [[Page S592]] (ii) by striking ``the 1997 crop'' each place it appears and inserting ``each of the 1997 through 2002 crops''. (2) Agricultural adjustment act of 1938.--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 ``1997'' and inserting ``2002''; and (ii) in subsections (a)(1), (b), and (f), by striking ``1997'' each place it appears and inserting ``2002''; (B) in section 358b (7 U.S.C. 1358b)-- (i) in the section heading, by striking ``1995'' and inserting ``2002''; 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 ``1997'' and inserting ``2002''; and (ii) in subsection (i), by striking ``1997'' and inserting ``2002''. (b) Support Rates for Peanuts.--Section 108B(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445c-3(a)(2)) is amended-- (1) by striking ``(2) Support rates.--The'' and inserting the following: ``(2) Support rates.-- ``(A) 1991-1995 crops.--The''; and (2) by adding at the end the following: ``(B) 1996-2002 crops.--The national average quota support rate for each of the 1996 through 2002 crops of quota peanuts shall be $678 per ton.''. (c) Undermarketings.-- (1) In general.--Section 358-1(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) is amended-- (A) in paragraph (7), by adding at the end the following:: ``(C) Transfer of additional peanuts.--Additional peanuts on a farm from which the quota poundage was not harvested or marketed may be transferred to the quota loan pool for pricing purposes at the quota price on such basis as the Secretary shall be regulation provide, except that the poundage of the peanuts so transferred shall not exceed the difference in the total quantity of peanuts meeting quality requirements for domestic edible use, as determined by the Secretary, marketed from the farm and the total farm poundage quota.''; and (B) by striking paragraphs (8) and (9). (2) Conforming amendments.--Section 358b(a) of the Act (7 U.S.C. 1358b(a)) is amended-- (A) in paragraph (1)(A), by striking ``undermarketings and''; and (B) in paragraph (3), by striking ``(including any applicable undermarketings)''. SEC. 105. DAIRY PROGRAM. (a) Price Support.--Section 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e) is amended-- (1) in the section heading, by striking ``1996'' and inserting ``2002''; (2) in subsections (a), (b), (f), (g), and (k), by striking ``1996'' each place it appears and inserting ``2002''; (3) in subsection (h)(2)(C), by striking ``and 1997'' and inserting ``through 2002''. (b) Support Price for Butter and Powdered Milk.--Section 204(c)(3) of the Act is amended-- (1) in subparagraph (A), by striking ``Subject to subparagraph (B), the'' and inserting ``The''; (2) by striking subparagraph (B); and (3) by redesignating subparagraph (C) as subparagraph (B). (c) Support Rate.--Section 204(d) of the Act is amended-- (1) by striking paragraphs (1) through (3); (2) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2) respectively; and (3) in paragraph (1) (as so redesignated), by striking ``$10.10'' and inserting ``$10.35''. SEC. 106. SUGAR PROGRAM. (a) In General.--Section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended to read as follows: ``SEC. 206. SUGAR SUPPORT FOR 1996 THROUGH 2002 CROPS. ``(a) Definitions.--In this section: ``(1) Agreement on agriculture.--The term `Agreement on Agriculture' means the Agreement on Agriculture resulting from the Uruguay Round of Multilateral Trade Negotiations. ``(2) Major country.--The term `major country' includes-- ``(A) a country that is allocated a share of the tariff rate quota for imported sugars and syrups by the United States Trade Representative pursuant to additional U.S. note 5 to chapter 17 of the Harmonized Tariff Schedule; ``(B) a country of the European Union; and ``(C) the People's Republic of China. ``(3) Market.--The term `market' means to sell or otherwise dispose of in commerce in the United States (including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process) and delivery to a buyer. ``(4) Total estimated disappearance.--The term `total estimated disappearance' means the quantity of sugar, as estimated by the Secretary, that will be consumed in the United States during a fiscal year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in a sugar-containing product), plus the quantity of sugar that would provide for adequate carryover stocks. ``(b) Price Support.--The price of each of the 1996 through 2002 crops of sugar beets and sugarcane shall be supported in accordance with this section. ``(c) Sugarcane.--Subject to subsection (e), the Secretary shall support the price of domestically grown sugarcane through loans at a support level of 18 cents per pound for raw cane sugar. ``(d) Sugar Beets.--Subject to subsection (e), the Secretary shall support the price of each crop of domestically grown sugar beets through loans at the level provided for refined beet sugar produced from the 1995 crop of domestically grown sugar beets. ``(e) Adjustment in Support Level.-- ``(1) Downward adjustment in support level.-- ``(A) In general.--The Secretary shall decrease the support price of domestically grown sugarcane and sugar beets from the level determined for the preceding crop, as determined under this section, if the quantity of negotiated reductions in export and domestic subsidies of sugar that apply to the European Union and other major countries in the aggregate exceed the quantity of the reductions in the subsidies agreed to under the Agreement of Agriculture. ``(B) Extent of reduction.--The Secretary shall not reduce the level of price support under subparagraph (A) below a level that provides an equal measure of support to the level provided by the European Union or any other major country through domestic and export subsidies that are subject to reduction under the Agreement on Agriculture. ``(2) Increases in support level.--The Secretary may increase the support level for each crop of domestically grown sugarcane and sugar beets from the level determined for the preceding crop based on such factors as the Secretary determines appropriate, including changes (during the 2 crop years immediately preceding the crop year for which the determination is made) in the cost of sugar products, the cost of domestic sugar production, the amount of any applicable assessments, and other factors or circumstances that may adversely affect domestic sugar production. ``(f) Loan Type; Processor Assurances.-- ``(1) In general.--Subject to paragraph (2), the Secretary shall carry out this section by making recourse loans to sugar producers. ``(2) Modification.--During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level that exceeds the minimum level for the imports committed to by the United States under the Agreement on Agriculture, the Secretary shall carry out this section by making nonrecourse loans available to sugar producers. Any recourse loan previously made available by the Secretary and not repaid under this section during the fiscal year shall be converted into a nonrecourse loan. ``(3) Processor assurances.--To effectively support the prices of sugar beets and sugarcane received by a producer, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate that, if the Secretary is required under paragraph (2) to make nonrecourse loans available, or convert recourse loans into nonrecourse loans, each producer served by the processor will receive the appropriate minimum payment for sugar beets and sugarcane delivered by the producer, as determined by the Secretary. ``(g) Announcements.--The Secretary shall announce the type of loans available and the loan rates for beet and cane sugar for any fiscal year under this section as far in advance as is practicable. ``(h) Loan Term.-- ``(1) In general.--Except as provided in paragraph (2) and subsection (i), a loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the end of 3 months. ``(2) Extension.--The maturity of a loan under this section may be extended for up to 2 additional 3-month periods, at the option of the borrower, except that the maturity of a loan may not be extended under this paragraph beyond the end of the fiscal year. ``(i) Supplementary Loans.--Subject to subsection (e), the Secretary shall make available to eligible processors price support loans with respect to sugar processed from sugar beets and sugarcane harvested in the last 3 months of a fiscal year. The loans shall mature at the end of the fiscal year. The processor may repledge the sugar as collateral for a price support loan in the subsequent fiscal year, except that the second loan shall-- ``(1) be made at the loan rate in effect at the time the second loan is made; and ``(2) mature in not more than 9 months, less the quantity of time that the first loan was in effect. ``(j) Use of Commodity Credit Corporation.--The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section. ``(k) Marketing Assessments.-- ``(1) In general.--Assessments shall be collected in accordance with this subsection with respect to all sugar marketed within the United States during the 1996 through 2002 fiscal years. ``(2) Beet sugar.--The first seller of beet sugar produced from domestic sugar beets or domestic sugar beet molasses shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.1894 percent of the loan level established under subsection (d) per pound of sugar marketed. [[Page S593]] ``(3) Cane sugar.--The first seller of raw cane sugar produced from domestic sugarcane or domestic sugarcane molasses shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.11 percent of the loan level established under subsection (c) per pound of sugar marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing). ``(4) Collection.-- ``(A) Timing.--Marketing assessments required under this subsection shall be collected and remitted to the Commodity Credit Corporation not later than 30 days after the date that the sugar is marketed. ``(B) Manner.--Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable. ``(5) Penalties.--If any person fails to remit an assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise fails to comply with this subsection, the person shall be liable to the Secretary for a civil penalty of not more than an amount determined by multiplying-- ``(A) the quantity of sugar involved in the violation; by ``(B) the loan level for the applicable crop of sugarcane or sugar beets from which the sugar is produced. For the purposes of this paragraph, refined sugar shall be treated as produced from sugar beets. ``(6) Enforcement.--The Secretary may enforce this subsection in the courts of the United States. ``(l) Information Reporting.-- ``(1) Duty of processors and refiners to report.--A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar. ``(2) Duty of producers to report.--To efficiently and effectively carry out the program under this section, the Secretary may require a producer of sugarcane or sugar beets to report, in the manner prescribed by the Secretary, the producer's sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively. ``(3) Penalty.--Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, required under this subsection shall be subject to a civil penalty of not more than $10,000 for each such violation. ``(4) Monthly reports.--Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar. ``(m) Sugar Estimates.-- ``(1) Domestic requirement.--Before the beginning of each fiscal year, the Secretary shall estimate the domestic sugar requirement of the United States in an amount that is equal to the total estimated disappearance, minus the quantity of sugar that will be available from carry-in stocks. ``(2) Quarterly reestimates.--The Secretary shall make quarterly reestimates of sugar consumption, stocks, production, and imports for a fiscal year not later than the beginning of each of the second through fourth quarters of the fiscal year. ``(n) Crops.--This section shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.''. (b) Marketing Quotas.--Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed. SEC. 107. SHEEP INDUSTRY TRANSITION PROGRAM. Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is amended by adding at the end the following: ``SEC. 208. SHEEP INDUSTRY TRANSITION PROGRAM. ``(a) Loss.-- ``(1) In general.--The Secretary shall, on presentation of warehouse receipts or other acceptable evidence of title as determined by the Secretary, make available for each of the 1996 through 1999 marketing years recourse loans for wool at a loan level, per pound, that is not less than the smaller of-- ``(A) the average price (weighted by market and month) of the base quality of wool at average location in the United States as quoted during the 5-marketing year period preceding the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or ``(B) 90 percent of the average price for wool projected for the marketing year in which the loan level is announced, as determined by the Secretary. ``(2) Adjustments to loan level.-- ``(A) Limitation on decrease in loan level.--The loan level for any marketing year determined under paragraph (1) may not be reduced by more than 5 percent from the level determined for the preceding marketing year, and may not be reduced below 50 cents per pound. ``(B) Limitation on increase in loan level.--If for any marketing year the average projected price determined under paragraph (1)(B) is less than the average United States market price determined under paragraph (1)(A), the Secretary may increase the loan level to such level as the Secretary may consider appropriate, not in excess of the average United States market price determined under paragraph (1)(A). ``(C) Adjustment for quality.-- ``(i) In general.--Notwithstanding subparagraphs (A) and (B), the Secretary may adjust the loan level of a loan made under this section with respect to a quantity of wool to more accurately reflect the quality of the wool, as determined by the Secretary. ``(ii) Establishment of grading system.--To allow producers to establish the quality of wool produced on a farm, the Secretary shall establish a grading system for wool, based on micron diameter of the fibers in the wool. ``(iii) Fees.--The Secretary may charge each person that requests a grade for a quantity of wool a fee to offset the costs of testing and establishing a grade for the wool. ``(iv) Testing facilities.--To the extent practicable, the Secretary may certify State, local, or private facilities to carry out the grading of wool for the purpose of carrying out this subparagraph. ``(3) Announcement of loan level.--The loan level for any marketing year of wool shall be determined and announced by the Secretary not later than December 1 of the calendar year preceding the marketing year for which the loan is to be effective or, in the case of the 1996 marketing year, as soon as is practicable after December 1, 1995. ``(4) Term of loan.-- ``(A) In general.--Recourse loans provided for in this section may be made for an initial term of 9 months from the first day of the month in which the loan is made. ``(B) Extensions.--Except as provided in subparagraph (C), recourse loans provided for in this section shall, on request of the producer during the 9th month of the loan period for the wool, be made available for an additional term of 8 months. ``(C) Limitation.--A request to extend the loan period shall not be approved in any month in which the average price of the base quality of wool, as determined by the Secretary, in the designated markets for the preceding month exceeded 130 percent of the average price of the base quality of wool in the designated United States markets for the preceding 36- month period ``(5) Marketing loan provisions.--If the Secretary determines that the prevailing world market price for wool (adjusted to United States quality and location) is below the loan level determined under paragraphs (1) through (4), to make United States wool competitive, the Secretary shall permit a producer to repay a loan made for any marketing year at the lesser of-- ``(A) the loan level determined for the marketing year; or ``(B) the higher of-- ``(i) the loan level determined for the marketing year multiplied by 70 percent; or ``(ii) the prevailing world market price for wool (adjusted to United States quality and location), as determined by the Secretary. ``(6) Prevailing world market price.-- ``(A) In general.--The Secretary shall prescribe by regulation-- ``(i) a formula to define the prevailing world market price for wool (adjusted to United States quality and location); and ``(ii) a mechanism by which the Secretary shall announce periodically the prevailing world market price for wool (adjusted to United States quality and location). ``(B) Use.--The prevailing world market price for wool (adjusted to United States quality and location) established under this paragraph shall be used to carry out paragraph (5). ``(C) Adjustment of prevailing world market price.-- ``(i) In general.--The prevailing world market price for wool (adjusted to United States quality and location) established under this paragraph shall be further adjusted if the adjusted prevailing world market price is less than 115 percent of the current marketing year loan level for the base quality of wool, as determined by the Secretary. ``(ii) Further adjustment.--The adjusted prevailing world market price shall 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 wool export sales and wool export shipments. ``(III) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for wool (adjusted to United States quality and location). ``(D) Market price quotation.--The Secretary may establish a system to monitor and make available on a weekly basis information with respect to the most recent average domestic and world market prices for wool. ``(7) Participation.--The Secretary may make loans available under this subsection to producers, cooperatives, or marketing pools. ``(b) Loan Deficiency Payments.-- ``(1) In general.--The Secretary shall, for each of the 1996 through 1999 marketing years of wool, make payments available to producers who, although eligible to obtain a loan under subsection (a), agree to forgo obtaining the loan in return for payments under this subsection. [[Page S594]] ``(2) Computation.--A payment under this subsection shall be computed by multiplying-- ``(A) the loan payment rate; by ``(B) the quantity of wool the producer is eligible to place under loan but for which the producer forgoes 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 level determined for the marketing year under subsection (a); exceeds ``(B) the level at which a loan may be repaid under subsection (a). ``(c) Deficiency Payments.-- ``(1) In general.--The Secretary shall make available to producers deficiency payments for each of the 1996 through 1999 marketing years of wool in an amount computed by multiplying-- ``(A) the payment rate; by ``(B) the payment quantity of wool for the marketing year. ``(2) Payment rate.-- ``(A) In general.--The payment rate for wool shall be the amount by which the established price for the marketing year of wool exceeds the higher of-- ``(i) the national average market price received by producers during the marketing year, as determined by the Secretary; or ``(ii) the loan level determined for the marketing year. ``(B) Minimum established price.--The established price for wool shall not be less than $2.12 per pound on a grease wool basis for each of the 1996 through 1999 marketing years. ``(3) Payment quantity.--Payment quantity of wool for a marketing year shall be the number of pounds of wool produced during the marketing year. ``(d) Equitable Relief.-- ``(1) Loans and payments.--If the failure of a producer to comply fully with the terms and conditions of the program conducted under this section precludes the making of loans and payments, the Secretary may, nevertheless, make the loans and payments in such amounts as the Secretary determines are equitable in relation to the seriousness of the failure. The Secretary may consider whether the producer made a good faith effort to comply fully with the terms and conditions of the program in determining whether equitable relief is warranted under this paragraph. ``(2) Deadlines and program requirements.--The Secretary may authorize the county and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other program requirements in cases in which lateness or failure to meet such other requirements does not affect adversely the operation of the program. ``(e) Regulations.--The Secretary may issue such regulations as the Secretary determines necessary to carry out this section. ``(f) Commodity Credit Corporation.--The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. ``(g) Assignment of 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 payments under this section. ``(h) Sharing of Payments.--The Secretary shall provide for the sharing of payments made under this section for any farm among the producers on the farm on a fair and equitable basis. ``(i) Tenants and Sharecroppers.--The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. ``(j) Cross-Compliance.-- ``(1) In general.--Compliance on a farm with the terms and conditions of any other commodity program, or compliance with marketing year acreage base requirements for any other commodity, may not be required as a condition of eligibility for loans or payments under this section. ``(2) Compliance on other farms.--The Secretary may not require producers on a farm, as a condition of eligibility for loans or payments under this section for the farm, to comply with the terms and conditions of the wool program with respect to any other farm operated by the producers. ``(k) Limitation on Outlays.-- ``(1) In general.--The total amount of payments that may be made available to all producers under this section may not exceed-- ``(A) $75,000,000, during any single marketing year; or ``(B) $200,000,000 in the aggregate for marketing years 1996 through 1999. ``(2) Proration of benefits.--To the extent that the total amount of benefits for which producers are eligible under this section exceeds the limitations in paragraph (1), funds made available under this section shall be prorated among all eligible producers. ``(3) Person limitation.-- ``(A) Loans.--No person may realize gains or receive payments under subsection (a) or (b) that exceed $75,000 during any marketing year. ``(B) Deficiency payments.--No person may receive payments under subsection (c) that exceed $50,000 during any marketing year. ``(l) Marketing years.--Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 1999 marketing years for wool.''. SEC. 108. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY. (a) Wheat.-- (1) Nonapplicability of certificate requirements.--Sections 379d through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379d-1379j) shall not be applicable to wheat processors or exporters during the period June 1, 1995, through May 31, 2003. (2) Suspension of land use, wheat marketing allocation, and producer certificate provisions.--Sections 331 through 339, 379b, and 379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 1379c) shall not be applicable to the 1996 through 2002 crops of wheat. (3) Suspension of certain quota provisions.--The joint resolution entitled ``A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 1996 through 2002. (4) Nonapplicability of section 107 of the agricultural act of 1949.--Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to the 1996 through 2002 crops of wheat. (b) Feed Grains.-- (1) Nonapplicability of section 105 of the agricultural act of 1949.--Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be applicable to the 1996 through 2002 crops of feed grains. (2) Recourse loan program for silage.--Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-1) is amended by striking ``1996'' and inserting ``2002''. (c) Oilseeds.--Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ``oilseeds'' and all that follows through ``determine),''. (d) Upland Cotton.-- (1) Suspension of base acreage allotments, marketing quotas, and related provisions.--Sections 342, 343, 344, 345, 346, and 377 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not be applicable to any of the 1996 through 2002 crops of upland cotton. (2) Miscellaneous cotton provisions.--Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to the 1996 through 2002 crops. (e) Peanuts.-- (1) Suspension of marketing quotas and acreage allotments.--The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 1996 through 2002 crops of peanuts: (A) Subsections (a) through (j) of section 358 (7 U.S.C. 1358). (B) Subsections (a) through (h) of section 358a (7 U.S.C. 1358a). (C) Subsections (a), (b), (d), and (e) of section 358d (7 U.S.C. 1359). (D) Part I of subtitle C of title III (7 U.S.C. 1361 et seq.). (E) Section 371 (7 U.S.C. 1371). (2) Reports and records.--Effective only for the 1996 through 2002 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before ``all brokers and dealers in peanuts'' the following: ``all producers engaged in the production of peanuts,''. (3) Suspension of certain price support provisions.-- Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1996 through 2002 crops of peanuts. SEC. 109. EXTENSION OF RELATED PRICE SUPPORT PROVISIONS. (a) Deficiency and Land Diversion Payments.--Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is amended-- (1) in subsections (a)(1) and (c), by striking ``1997'' each place it appears and inserting ``2002''; and (2) in subsection (b), by striking ``1995'' and inserting ``2002''. (b) Adjustment of Established Prices.--Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b)) is amended by striking ``1995'' and inserting ``2002''. (c) Adjustment of Support Prices.--Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c)) is amended by striking ``1995'' and inserting ``2002''. (d) Application of Terms in the Agricultural Act of 1949.-- Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 1428(k)(3)) is amended by striking ``1995'' and inserting ``2002''. (e) Acreage Base and Yield System.--Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is amended-- (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 U.S.C. 1463), by striking ``1997'' each place it appears and inserting ``2002''; (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 1465(b)), by striking ``1997'' each place it appears and inserting ``2002''; and (3) in section 509 (7 U.S.C. 1469), by striking ``1997'' and inserting ``2002''. (f) Payment Limitations.--Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking ``1997'' each place it appears and inserting ``2002''. (g) Normally Planted Acreage.--Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1309) is amended by striking ``1995'' each place it appears in subsections (a), (b)(1), and (c) and inserting ``2002''. (h) Options Pilot Program.--The Options Pilot Program Act of 1990 (subtitle E of title XI of Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended-- [[Page S595]] (1) in subsections (a) and (b) of section 1153, by striking ``1995'' each place it appears and inserting ``2002''; and (2) in section 1154(b)(1)(A), by striking ``1995'' each place it appears and inserting ``2002''. (i) Food Security Wheat Reserve.--Section 302(i) of the Food Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by striking ``1995'' each place it appears and inserting ``2002''. SEC. 110. CROP INSURANCE ADMINISTRATIVE FEE. Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended-- (1) by striking paragraph (5); and (2) by redesignating paragraphs (6) through (10) as paragraphs (5) through (9), respectively. SEC. 111. EFFECTIVE DATE. (a) In General.--Except as otherwise specifically provided in this title, this title and the amendments made by this title shall apply beginning with the 1996 crop of an agricultural commodity. (b) Prior Crops.--Except as otherwise specifically provided and notwithstanding any other provision of law, this title and the amendments made by this title shall not affect the authority of the Secretary of Agriculture to carry out a price support, production adjustment, or payment program for-- (1) any of the 1991 through 1995 crops of an agricultural commodity established under a provision of law as in effect immediately before the enactment of this Act; or (2) the 1996 crop of an agricultural commodity established under section 406(b) of the Agricultural Act of 1949 (7 U.S.C. 1426(b)). TITLE II--CONSERVATION SEC. 201. CONSERVATION RESERVE PROGRAM. Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking ``1995'' each place it appears in subsections (a) and (d) and inserting ``2002''. SEC. 202. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. Chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as follows: ``CHAPTER 2--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM ``SEC. 1238. DEFINITIONS. ``In this chapter: ``(1) Land management practice.--The term `land management practice' means nutrient or manure management, integrated pest management, irrigation management, tillage or residue management, grazing management, or another land management practice the Secretary determines is needed to protect soil, water, or related resources in the most cost efficient manner. ``(2) Large confined livestock operation.--The term `large confined livestock operation' means a farm or ranch that-- ``(A) is a confined animal feeding operation; and ``(B) has more than-- ``(i) 700 mature dairy cattle; ``(ii) 1,000 beef cattle; ``(iii) 100,000 laying hens or broilers; ``(iv) 55,000 turkeys; ``(v) 2,500 swine; or ``(vi) 10,000 sheep or lambs. ``(3) Livestock.--The term `livestock' means mature dairy cows, beef cattle, laying hens, broilers, turkeys, swine, sheep, or lambs. ``(4) Operator.--The term `operator' means a person who is engaged in crop or livestock production (as defined by the Secretary). ``(5) Structural practice.--The term `structural practice' means the establishment of an animal waste management facility, terrace, grassed waterway, contour grass strip, filterstrip, permanent wildlife habitat, or another structural practice that the Secretary determines is needed to protect soil, water, or related resources in the most cost effective manner. ``SEC. 1238A. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. ``(a) Establishment.-- ``(1) In general.--During the 1996 through 2006 fiscal years, the Secretary shall enter into contracts with operators to provide technical assistance, cost-sharing payments, and incentive payments to operators, who enter into contracts with the Secretary, through an environmental quality incentives program in accordance with this chapter. ``(2) Consolidation of existing programs.--In establishing the environmental quality incentives program authorized under this chapter, the Secretary shall combine into a single program the functions of-- ``(A) the agricultural conservation program authorized by sections 7 and 8 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g and 590h); ``(B) the Great Plains conservation program established under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)); ``(C) the water quality incentives program established under this chapter; and ``(D) the Colorado River Basin salinity control program established under section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)). ``(b) Application and Term.-- ``(1) In general.--A contract between an operator and the Secretary under this chapter may-- ``(A) apply to 1 or more structural practices or 1 or more land management practices, or both; and ``(B) have a term of not less than 5, nor more than 10, years, as determined appropriate by the Secretary, depending on the practice or practices that are the basis of the contract. ``(2) Contract effective date.--A contract between an operator and the Secretary under this chapter shall become effective on October 1st following the date the contract is fully entered into. ``(c) Cost-Sharing and Incentive Payments.-- ``(1) Cost-sharing payments.-- ``(A) In general.--The Federal share of cost-sharing payments to an operator proposing to implement 1 or more structural practices shall not be more than 75 percent of the projected cost of the practice, as determined by the Secretary, taking into consideration any payment received by the operator from a State or local government. ``(B) Limitation.--An operator of a large confined livestock operation shall not be eligible for cost-sharing payments to construct an animal waste management facility. ``(C) Other payments.--An operator shall not be eligible for cost-sharing payments for structural practices on eligible land under this chapter if the operator receives cost-sharing payments or other benefits for the same land under chapter 1 or 3. ``(2) Incentive payments.--The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage an operator to perform 1 or more land management practices. ``(d) Technical Assistance.-- ``(1) Funding.--The Secretary shall allocate funding under this chapter for the provision of technical assistance according to the purpose and projected cost for which the technical assistance is provided in a fiscal year. The allocated amount may vary according to the type of expertise required quantity of time involved, and other factors as determined appropriate by the Secretary. Funding shall not

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AMENDMENTS SUBMITTED
(Senate - January 31, 1996)

Text of this article available as: TXT PDF [Pages S589-S663] AMENDMENTS SUBMITTED ______ THE AGRICULTURAL MARKET TRANSITION ACT OF 1996 ______ GREGG (AND REID) AMENDMENTS NOS. 3123-3124 (Ordered to lie on the table.) [[Page S590]] Mr. GREGG (for himself and Mr. Reid) submitted two amendments intended to be proposed by them to the bill (S. 1541) to extend, reform, and improve agricultural commodity, trade, conservation, and other programs, and for other purposes; as follows: Amendment No. 3123 Strike section 17 relating to the sugar program. ____ Amendment No. 3124 On page 43, strike lines 10 through 19. Strike section 17 relating to the sugar program and insert the following: SEC. 17. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION ADJUSTMENT PROGRAMS. (a) Acreage Allotments and Marketing Quotas.--Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed. (b) Sugar Loan Forfeitures.--Section 902 of the Food Security Act of 1985 (7 U.S.C. 1446 note) is amended-- (1) by striking subsection (a); and (2) by redesignating subsections (b) and (c) as subsections (a) and (b), respectively. (c) Commodity Credit Corporation.--Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting after ``agricultural commodities'' the following: ``(other than sugar)''. (d) Section 32.--The second sentence of the first paragraph of section 32 of the Act entitled ``An Act to amend the Agricultural Adjustment Act, and for other purposes'', approved August 24, 1935 (7 U.S.C. 612c), is amended-- (1) by inserting ``(other than sugar)'' after ``commodities'' each place it appears; and (2) by inserting ``(other than sugar)'' after ``commodities'' each place it appears. (e) Transition Provisions.--The amendments made by this section shall not affect the liability of any person under any provision of law as in effect before the application of the amendments in accordance with subsection (f). (f) Application of Section.--This section and the amendments made by this section shall apply beginning with the 1996 crop of sugar beets and sugarcane. ______ DORGAN AMENDMENT NO. 3125 (Ordered to lie on the table.) Mr. DORGAN submitted an amendment intended to be proposed by him to the bill S. 1541, supra; as follows: Strike all after the enacting clause and insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Farm Security Act of 1996''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--COMMODITY PROGRAMS Sec. 101. Wheat, feed grain, and oilseed program. Sec. 102. Upland cotton program. Sec. 103. Rice program. Sec. 104. Peanut program. Sec. 105. Dairy program. Sec. 106. Sugar program. Sec. 107. Sheep industry transition program. Sec. 108. Suspension of permanent price support authority. Sec. 109. Extension of related price support provisions. Sec. 110. Crop insurance administrative fee. Sec. 111. Effective date. TITLE II--CONSERVATION Sec. 201. Conservation reserve program. Sec. 202. Environmental quality incentives program. TITLE III--NUTRITION ASSISTANCE Sec. 301. Food stamp program. Sec. 302. Commodity distribution program; commodity supplemental food program. Sec. 303. Emergency food assistance program. Sec. 304. Soup kitchens program. Sec. 305. National commodity processing. TITLE I--COMMODITY PROGRAMS SEC. 101. WHEAT, FEED GRAIN, AND OILSEED PROGRAM. (a) In General.--Title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended by adding the end the following: ``SEC. 116. MARKETING LOANS AND LOAN DEFICIENCY PAYMENTS FOR 1996 THROUGH 2002 CROPS OF WHEAT, FEED GRAINS, AND OILSEEDS. ``(a) Definitions.--In this section: ``(1) Covered commodities.--The term `covered commodities' means wheat, feed grains, and oilseeds. ``(2) Feed grains.--The term `feed grains' means corn, grain sorghum, barley, oats, millet, rye, or as designated by the Secretary, other feed grains. ``(3) Oilseeds.--The term `oilseeds' means soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or as designated by the Secretary, other oilseeds. ``(b) Adjustment Account.-- ``(1) Definition of payment bushel of production.--In this subsection, the term `payment bushel of production' means-- ``(A) in the case of wheat, \7/10\ of a bushel; ``(B) in the case of corn, a bushel; and ``(C) in the case of other feed grains, a quantity determined by the Secretary. ``(2) Establishment.--The Secretary shall establish an Adjustment Account (referred to in this subsection as the `Account') for making-- ``(A) payments to producers of the 1996 through 2002 crops of covered commodities who participate in the marketing loan program established under subsection (c); and ``(B) payments to producers of the 1994 and 1995 crops of covered commodities that are authorized, but not paid, under sections 105B and 107B prior to the date of enactment of this section. ``(3) Amount in account.--The Secretary shall transfer from funds of the Commodity Credit Corporation into the Account-- ``(A) $3,000,000,000 for fiscal year 1996; and ``(B) $3,900,000,000 for each of fiscal years 1997 through 2002; to remain available until expended. ``(4) Payments.--The Secretary shall use funds in the Account to make payments to producers of wheat and feed grains in accordance with this subsection. ``(5) Tier 1 support.-- ``(A) In general.--The producers on a farm referred to in paragraph (2) shall be entitled to a payment computed by multiplying-- ``(i) the payment quantity determined under subparagraph (B); by ``(ii) the payment factor determined under subparagraph (C). ``(B) Payment quantity.-- ``(i) In general.--Subject to clause (ii), the payment quantity for payments under subparagraph (A) shall be determined by the Secretary based on-- ``(I) 90 percent of the 5-year average of the quantity of wheat and feed grains produced on the farm; ``(II) an adjustment to reflect any disaster or other circumstance beyond the control of the producers that adversely affected production of wheat or feed grains, as determined by the Secretary; and ``(III) an adjustment for planting resource conservation crops on the crop acreage base for covered commodities, and adopting conserving uses, on the base not enrolled in the environmental reserve program provided in paragraph (6). ``(ii) Limitations.--The quantity determined under clause (i) for an individual, directly or indirectly, shall not exceed 30,000 payment bushels of wheat or feed grains and may be adjusted by the Secretary to reflect the availability of funds. ``(C) Payment factor.-- ``(i) Wheat.--The payment factor for wheat under subparagraph (A) shall be equal to the difference between a price established by the Secretary, of not to exceed $4.00 per bushel, and the greater of-- ``(I) the marketing loan rate for the crop of wheat; or ``(II) the average domestic price for wheat for the crop for the calendar year in which the crop is normally harvested. ``(ii) Corn.--The payment factor for corn under subparagraph (A) shall be equal to the difference between a price established by the Secretary, of not to exceed $2.75 per bushel, and the greater of-- ``(I) the marketing loan rate for the crop of corn; or ``(II) the average domestic price for corn for the crop for the calendar year in which the crop is normally harvested; ``(iii) Other feed grains.--The payment factor for other feed grains under subparagraph (A) shall be established by the Secretary at such level as the Secretary determines is fair and reasonable in relation to the payment factor for corn. ``(D) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable. ``(6) Environmental reserve program.-- ``(A) In general.--The Secretary may enter into 1 to 5 year contracts with producers on a farm referred to in paragraph (2) for the purposes of enrolling flexible acreage base for conserving use purposes. ``(B) Limitation.--Flexible acreage base enrolled in the environmental reserve program shall not be eligible for benefits provided in paragraph (5)(B). ``(c) Marketing Loans.-- ``(1) In general.--The Secretary shall make available to producers on a farm marketing loans for each of the 1996 through 2002 crops of covered commodities produced on the farm. ``(2) Eligibility.-- ``(A) In general.--To be eligible for a loan under this subsection, the producers on a farm may not plant covered commodities on the farm in excess of the flexible acreage base of the farm determined under section 502. [[Page S591]] ``(B) Amount.--The Secretary shall provide marketing loans for their normal production of covered commodities produced on a farm. ``(3) Loan rate.-- ``(A) In general.--Loans made under this subsection shall be made at the rate of 90 percent of the average price for the commodity for the previous 5 crop years, as determined by the Secretary. ``(B) Adjustments.--For each of the 1996 through 2002 crops of covered commodities, the Secretary may not adjust local loan rates by a factor greater than 3 percent of the national loan rate. ``(4) Repayment.-- ``(A) Calculation.--Producers on a farm may repay loans made under this subsection for a crop at a level that is the lesser of-- ``(i) the loan level determined for the crop; or ``(ii) the prevailing domestic market price for the commodity (adjusted to location and quality), as determined by the Secretary. ``(B) Prevailing domestic market price.--The Secretary shall prescribe by regulation-- ``(i) a formula to determine the prevailing domestic market price for each covered commodity; and ``(ii) a mechanism by which the Secretary shall announce periodically the prevailing domestic market prices established under this subsection. ``(d) Loan Deficiency Payments.-- ``(1) In general.--The Secretary may, for each of the 1996 through 2002 crops of covered commodities, make payments (referred to in this subsection as `loan deficiency payments') available to producers who, although eligible to obtain a marketing loan under subsection (c), agree to forgo obtaining the loan in return for payments under this subsection. ``(2) Computation.--A payment under this subsection shall be computed by multiplying-- ``(A) the loan payment rate; by ``(B) the quantity of a covered commodity the producer is eligible to place under loan but for which the producer forgoes obtaining the loan in return for payments under this subsection. ``(3) Loan payment rate.-- ``(A) In general.--For the purposes of this subsection, the loan payment rate shall be the amount by which-- ``(i) the marketing loan rate determined for the crop under subsection (c)(3); exceeds ``(ii) the level at which a loan may be repaid under subsection (c)(4). ``(B) Date.--The date on which the calculation required under subparagraph (A) for the producers on a farm shall be determined by the producers, except that the date may not be later than the earlier of-- ``(i) the date the producers lost beneficial interest in the crop; or ``(ii) the end of the marketing year for the crop. ``(4) Application.--Producers on a farm may apply for a payment for a covered commodity under this subsection at any time prior to the end of the marketing year for the commodity. ``(e) Equitable Relief.--If the failure of a producer to comply fully with the terms and conditions of programs conducted under this section precludes the making of loans and payments, the Secretary may, nevertheless, make the loans and payments in such amounts as the Secretary determines are equitable in relation to the seriousness of the failure. ``(f) Commodity Credit Corporation.--The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. ``(g) Assignment of 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 payments under this section. ``(h) Tenants and Sharecroppers.--In carrying out this section, the Secretary shall provide adequate safeguards to protect the interest of tenants and sharecroppers. ``(i) Crops.--This section shall be effective only for the 1996 through 2002 crops of a covered commodity.''. (b) Flexible Acreage Base.-- (1) Definitions.--Section 502 of the Agricultural Act of 1949 (7 U.S.C. 1462) is amended by striking paragraphs (2) and (3) and inserting the following: ``(2) Feed grains.--The term `feed grains' means corn, grain sorghum, barley, oats, millet, rye, or as designated by the Secretary, other feed grains. ``(3) Go crops.--The term `GO crops' means wheat, feed grains, and oilseeds. ``(4) Oilseeds.--The term `oilseed' means a crop of soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, other oilseeds. ``(5) Program crop.--The term `program crop' means a GO crop and a crop of upland cotton or rice.''. (2) Crop acreage bases.--Section 503(a) of the Act (7 U.S.C. 1463(a)) is amended by striking paragraph (1) and inserting the following: ``(1) In general.-- ``(A) Go crops.--The Secretary shall provide for the establishment and maintenance of a single crop acreage base for GO crops, including any GO crops produced under an established practice of double cropping. ``(B) Cotton and rice.--The Secretary shall provide for the establishment and maintenance of crop acreage bases for cotton and rice crops, including any program crop produced under an established practice of double cropping.''. SEC. 102. UPLAND COTTON PROGRAM. (a) Extension.--Section 103B of the Agricultural Act of 1949 (7 U.S.C. 1444-2) is amended-- (1) in the section heading, by striking ``1997'' and inserting ``2002''; (2) in subsections (a)(1), (b)(1), (c)(1), and (o), by striking ``1997'' each place it appears and inserting ``2002''; (3) in subsection (a)(5), by striking ``1998'' each place it appears and inserting ``2002''; (4) in the heading of subsection (c)(1)(D)(v)(II), by striking ``1997'' and inserting ``2002''; (5) in subsection (e)(1)(D), by striking ``the 1997 crop'' and inserting ``each of the 1997 through 2002 crops''; and (6) in subsections (e)(3)(A) and (f)(1), by striking ``1995'' each place it appears and inserting ``2002''. (b) Increase in Nonpayment Acres.--Section 103B(c)(1)(C) of the Act is amended by striking ``85 percent'' and inserting ``80 percent for each of the 1996 through 2002 crops''. (c) Advance Payment.--Section 103B(c)(1) of the Act is amended by adding at the end the following: ``(F) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable.''. SEC. 103. RICE PROGRAM. (a) Extension.--Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is amended-- (1) in the section heading, by striking ``1995'' and inserting ``2002''; (2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking ``1995'' each place it appears and inserting ``2002''; (3) in subsection (a)(5)(D)(i), by striking ``1996'' and inserting ``2003''; and (4) in subsection (c)(1)-- (A) in subparagraph (B)(ii)-- (i) by striking ``and 1995'' and inserting ``through 2002''; and (ii) by striking ``and 1995'' and inserting ``through 2002''; and (B) in subparagraph (D)-- (i) in clauses (i) and (v)(II), by striking ``1997'' each place it appears and inserting ``2002''; and (ii) in the heading of clause (v)(II), by striking ``1997'' and inserting ``2002''. (b) Increase in Nonpayment Acres.--Section 101B(c)(1)(C)(ii) of the Act is amended by striking ``85 percent'' and inserting ``80 percent for each of the 1998 through 2002 crops''. (c) Advance Payment.--Section 101B(c)(1) of the Act is amended by adding at the end the following: ``(F) Advance payment.-- ``(i) In general.--Except as provided in clauses (ii) and (iii), the Secretary shall make available to producers on a farm 50 percent of the projected payment under this subsection at the time the producers agree to participate in the program. ``(ii) 1995 payments.--In the case of producers on a farm who were prevented from planting, or incurred a reduced yield of 20 percent or more of, the 1995 crop due to weather or related condition, the Secretary may settle claims for the repayment by the producers on terms determined by the Secretary to be fair and equitable, except that no claim shall be reduced by more than $3,500. ``(iii) 1996 payments.-- ``(I) In general.--In the case of 1996 crops, advanced payments shall be made in accordance with the formula under subclause (II). ``(II) Formula.--Payments authorized under this clause shall be based on a rate equal to 50 percent of the average deficiency payment rate for the 1990 through 1994 crops. ``(III) Nonrefundable.--Payments authorized under this clause shall not be refundable.''. SEC. 104. PEANUT PROGRAM. (a) Extension.-- (1) Agricultural act of 1949.--Section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) is amended-- (A) in the section heading, by striking ``1997'' and inserting ``2002''; (B) in subsection (a)(1), (b)(1), and (h), by striking ``1997'' each place it appears and inserting ``2002''; and (C) in subsection (g)-- (i) by striking ``1997'' in paragraphs (1) and (2)(A)(ii)(II) and inserting ``2002''; and [[Page S592]] (ii) by striking ``the 1997 crop'' each place it appears and inserting ``each of the 1997 through 2002 crops''. (2) Agricultural adjustment act of 1938.--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 ``1997'' and inserting ``2002''; and (ii) in subsections (a)(1), (b), and (f), by striking ``1997'' each place it appears and inserting ``2002''; (B) in section 358b (7 U.S.C. 1358b)-- (i) in the section heading, by striking ``1995'' and inserting ``2002''; 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 ``1997'' and inserting ``2002''; and (ii) in subsection (i), by striking ``1997'' and inserting ``2002''. (b) Support Rates for Peanuts.--Section 108B(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445c-3(a)(2)) is amended-- (1) by striking ``(2) Support rates.--The'' and inserting the following: ``(2) Support rates.-- ``(A) 1991-1995 crops.--The''; and (2) by adding at the end the following: ``(B) 1996-2002 crops.--The national average quota support rate for each of the 1996 through 2002 crops of quota peanuts shall be $678 per ton.''. (c) Undermarketings.-- (1) In general.--Section 358-1(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) is amended-- (A) in paragraph (7), by adding at the end the following:: ``(C) Transfer of additional peanuts.--Additional peanuts on a farm from which the quota poundage was not harvested or marketed may be transferred to the quota loan pool for pricing purposes at the quota price on such basis as the Secretary shall be regulation provide, except that the poundage of the peanuts so transferred shall not exceed the difference in the total quantity of peanuts meeting quality requirements for domestic edible use, as determined by the Secretary, marketed from the farm and the total farm poundage quota.''; and (B) by striking paragraphs (8) and (9). (2) Conforming amendments.--Section 358b(a) of the Act (7 U.S.C. 1358b(a)) is amended-- (A) in paragraph (1)(A), by striking ``undermarketings and''; and (B) in paragraph (3), by striking ``(including any applicable undermarketings)''. SEC. 105. DAIRY PROGRAM. (a) Price Support.--Section 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e) is amended-- (1) in the section heading, by striking ``1996'' and inserting ``2002''; (2) in subsections (a), (b), (f), (g), and (k), by striking ``1996'' each place it appears and inserting ``2002''; (3) in subsection (h)(2)(C), by striking ``and 1997'' and inserting ``through 2002''. (b) Support Price for Butter and Powdered Milk.--Section 204(c)(3) of the Act is amended-- (1) in subparagraph (A), by striking ``Subject to subparagraph (B), the'' and inserting ``The''; (2) by striking subparagraph (B); and (3) by redesignating subparagraph (C) as subparagraph (B). (c) Support Rate.--Section 204(d) of the Act is amended-- (1) by striking paragraphs (1) through (3); (2) by redesignating paragraphs (4) and (5) as paragraphs (1) and (2) respectively; and (3) in paragraph (1) (as so redesignated), by striking ``$10.10'' and inserting ``$10.35''. SEC. 106. SUGAR PROGRAM. (a) In General.--Section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended to read as follows: ``SEC. 206. SUGAR SUPPORT FOR 1996 THROUGH 2002 CROPS. ``(a) Definitions.--In this section: ``(1) Agreement on agriculture.--The term `Agreement on Agriculture' means the Agreement on Agriculture resulting from the Uruguay Round of Multilateral Trade Negotiations. ``(2) Major country.--The term `major country' includes-- ``(A) a country that is allocated a share of the tariff rate quota for imported sugars and syrups by the United States Trade Representative pursuant to additional U.S. note 5 to chapter 17 of the Harmonized Tariff Schedule; ``(B) a country of the European Union; and ``(C) the People's Republic of China. ``(3) Market.--The term `market' means to sell or otherwise dispose of in commerce in the United States (including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process) and delivery to a buyer. ``(4) Total estimated disappearance.--The term `total estimated disappearance' means the quantity of sugar, as estimated by the Secretary, that will be consumed in the United States during a fiscal year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in a sugar-containing product), plus the quantity of sugar that would provide for adequate carryover stocks. ``(b) Price Support.--The price of each of the 1996 through 2002 crops of sugar beets and sugarcane shall be supported in accordance with this section. ``(c) Sugarcane.--Subject to subsection (e), the Secretary shall support the price of domestically grown sugarcane through loans at a support level of 18 cents per pound for raw cane sugar. ``(d) Sugar Beets.--Subject to subsection (e), the Secretary shall support the price of each crop of domestically grown sugar beets through loans at the level provided for refined beet sugar produced from the 1995 crop of domestically grown sugar beets. ``(e) Adjustment in Support Level.-- ``(1) Downward adjustment in support level.-- ``(A) In general.--The Secretary shall decrease the support price of domestically grown sugarcane and sugar beets from the level determined for the preceding crop, as determined under this section, if the quantity of negotiated reductions in export and domestic subsidies of sugar that apply to the European Union and other major countries in the aggregate exceed the quantity of the reductions in the subsidies agreed to under the Agreement of Agriculture. ``(B) Extent of reduction.--The Secretary shall not reduce the level of price support under subparagraph (A) below a level that provides an equal measure of support to the level provided by the European Union or any other major country through domestic and export subsidies that are subject to reduction under the Agreement on Agriculture. ``(2) Increases in support level.--The Secretary may increase the support level for each crop of domestically grown sugarcane and sugar beets from the level determined for the preceding crop based on such factors as the Secretary determines appropriate, including changes (during the 2 crop years immediately preceding the crop year for which the determination is made) in the cost of sugar products, the cost of domestic sugar production, the amount of any applicable assessments, and other factors or circumstances that may adversely affect domestic sugar production. ``(f) Loan Type; Processor Assurances.-- ``(1) In general.--Subject to paragraph (2), the Secretary shall carry out this section by making recourse loans to sugar producers. ``(2) Modification.--During any fiscal year in which the tariff rate quota for imports of sugar into the United States is established at, or is increased to, a level that exceeds the minimum level for the imports committed to by the United States under the Agreement on Agriculture, the Secretary shall carry out this section by making nonrecourse loans available to sugar producers. Any recourse loan previously made available by the Secretary and not repaid under this section during the fiscal year shall be converted into a nonrecourse loan. ``(3) Processor assurances.--To effectively support the prices of sugar beets and sugarcane received by a producer, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate that, if the Secretary is required under paragraph (2) to make nonrecourse loans available, or convert recourse loans into nonrecourse loans, each producer served by the processor will receive the appropriate minimum payment for sugar beets and sugarcane delivered by the producer, as determined by the Secretary. ``(g) Announcements.--The Secretary shall announce the type of loans available and the loan rates for beet and cane sugar for any fiscal year under this section as far in advance as is practicable. ``(h) Loan Term.-- ``(1) In general.--Except as provided in paragraph (2) and subsection (i), a loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the end of 3 months. ``(2) Extension.--The maturity of a loan under this section may be extended for up to 2 additional 3-month periods, at the option of the borrower, except that the maturity of a loan may not be extended under this paragraph beyond the end of the fiscal year. ``(i) Supplementary Loans.--Subject to subsection (e), the Secretary shall make available to eligible processors price support loans with respect to sugar processed from sugar beets and sugarcane harvested in the last 3 months of a fiscal year. The loans shall mature at the end of the fiscal year. The processor may repledge the sugar as collateral for a price support loan in the subsequent fiscal year, except that the second loan shall-- ``(1) be made at the loan rate in effect at the time the second loan is made; and ``(2) mature in not more than 9 months, less the quantity of time that the first loan was in effect. ``(j) Use of Commodity Credit Corporation.--The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section. ``(k) Marketing Assessments.-- ``(1) In general.--Assessments shall be collected in accordance with this subsection with respect to all sugar marketed within the United States during the 1996 through 2002 fiscal years. ``(2) Beet sugar.--The first seller of beet sugar produced from domestic sugar beets or domestic sugar beet molasses shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.1894 percent of the loan level established under subsection (d) per pound of sugar marketed. [[Page S593]] ``(3) Cane sugar.--The first seller of raw cane sugar produced from domestic sugarcane or domestic sugarcane molasses shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.11 percent of the loan level established under subsection (c) per pound of sugar marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing). ``(4) Collection.-- ``(A) Timing.--Marketing assessments required under this subsection shall be collected and remitted to the Commodity Credit Corporation not later than 30 days after the date that the sugar is marketed. ``(B) Manner.--Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable. ``(5) Penalties.--If any person fails to remit an assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise fails to comply with this subsection, the person shall be liable to the Secretary for a civil penalty of not more than an amount determined by multiplying-- ``(A) the quantity of sugar involved in the violation; by ``(B) the loan level for the applicable crop of sugarcane or sugar beets from which the sugar is produced. For the purposes of this paragraph, refined sugar shall be treated as produced from sugar beets. ``(6) Enforcement.--The Secretary may enforce this subsection in the courts of the United States. ``(l) Information Reporting.-- ``(1) Duty of processors and refiners to report.--A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar. ``(2) Duty of producers to report.--To efficiently and effectively carry out the program under this section, the Secretary may require a producer of sugarcane or sugar beets to report, in the manner prescribed by the Secretary, the producer's sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively. ``(3) Penalty.--Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, required under this subsection shall be subject to a civil penalty of not more than $10,000 for each such violation. ``(4) Monthly reports.--Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar. ``(m) Sugar Estimates.-- ``(1) Domestic requirement.--Before the beginning of each fiscal year, the Secretary shall estimate the domestic sugar requirement of the United States in an amount that is equal to the total estimated disappearance, minus the quantity of sugar that will be available from carry-in stocks. ``(2) Quarterly reestimates.--The Secretary shall make quarterly reestimates of sugar consumption, stocks, production, and imports for a fiscal year not later than the beginning of each of the second through fourth quarters of the fiscal year. ``(n) Crops.--This section shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.''. (b) Marketing Quotas.--Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed. SEC. 107. SHEEP INDUSTRY TRANSITION PROGRAM. Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is amended by adding at the end the following: ``SEC. 208. SHEEP INDUSTRY TRANSITION PROGRAM. ``(a) Loss.-- ``(1) In general.--The Secretary shall, on presentation of warehouse receipts or other acceptable evidence of title as determined by the Secretary, make available for each of the 1996 through 1999 marketing years recourse loans for wool at a loan level, per pound, that is not less than the smaller of-- ``(A) the average price (weighted by market and month) of the base quality of wool at average location in the United States as quoted during the 5-marketing year period preceding the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or ``(B) 90 percent of the average price for wool projected for the marketing year in which the loan level is announced, as determined by the Secretary. ``(2) Adjustments to loan level.-- ``(A) Limitation on decrease in loan level.--The loan level for any marketing year determined under paragraph (1) may not be reduced by more than 5 percent from the level determined for the preceding marketing year, and may not be reduced below 50 cents per pound. ``(B) Limitation on increase in loan level.--If for any marketing year the average projected price determined under paragraph (1)(B) is less than the average United States market price determined under paragraph (1)(A), the Secretary may increase the loan level to such level as the Secretary may consider appropriate, not in excess of the average United States market price determined under paragraph (1)(A). ``(C) Adjustment for quality.-- ``(i) In general.--Notwithstanding subparagraphs (A) and (B), the Secretary may adjust the loan level of a loan made under this section with respect to a quantity of wool to more accurately reflect the quality of the wool, as determined by the Secretary. ``(ii) Establishment of grading system.--To allow producers to establish the quality of wool produced on a farm, the Secretary shall establish a grading system for wool, based on micron diameter of the fibers in the wool. ``(iii) Fees.--The Secretary may charge each person that requests a grade for a quantity of wool a fee to offset the costs of testing and establishing a grade for the wool. ``(iv) Testing facilities.--To the extent practicable, the Secretary may certify State, local, or private facilities to carry out the grading of wool for the purpose of carrying out this subparagraph. ``(3) Announcement of loan level.--The loan level for any marketing year of wool shall be determined and announced by the Secretary not later than December 1 of the calendar year preceding the marketing year for which the loan is to be effective or, in the case of the 1996 marketing year, as soon as is practicable after December 1, 1995. ``(4) Term of loan.-- ``(A) In general.--Recourse loans provided for in this section may be made for an initial term of 9 months from the first day of the month in which the loan is made. ``(B) Extensions.--Except as provided in subparagraph (C), recourse loans provided for in this section shall, on request of the producer during the 9th month of the loan period for the wool, be made available for an additional term of 8 months. ``(C) Limitation.--A request to extend the loan period shall not be approved in any month in which the average price of the base quality of wool, as determined by the Secretary, in the designated markets for the preceding month exceeded 130 percent of the average price of the base quality of wool in the designated United States markets for the preceding 36- month period ``(5) Marketing loan provisions.--If the Secretary determines that the prevailing world market price for wool (adjusted to United States quality and location) is below the loan level determined under paragraphs (1) through (4), to make United States wool competitive, the Secretary shall permit a producer to repay a loan made for any marketing year at the lesser of-- ``(A) the loan level determined for the marketing year; or ``(B) the higher of-- ``(i) the loan level determined for the marketing year multiplied by 70 percent; or ``(ii) the prevailing world market price for wool (adjusted to United States quality and location), as determined by the Secretary. ``(6) Prevailing world market price.-- ``(A) In general.--The Secretary shall prescribe by regulation-- ``(i) a formula to define the prevailing world market price for wool (adjusted to United States quality and location); and ``(ii) a mechanism by which the Secretary shall announce periodically the prevailing world market price for wool (adjusted to United States quality and location). ``(B) Use.--The prevailing world market price for wool (adjusted to United States quality and location) established under this paragraph shall be used to carry out paragraph (5). ``(C) Adjustment of prevailing world market price.-- ``(i) In general.--The prevailing world market price for wool (adjusted to United States quality and location) established under this paragraph shall be further adjusted if the adjusted prevailing world market price is less than 115 percent of the current marketing year loan level for the base quality of wool, as determined by the Secretary. ``(ii) Further adjustment.--The adjusted prevailing world market price shall 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 wool export sales and wool export shipments. ``(III) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for wool (adjusted to United States quality and location). ``(D) Market price quotation.--The Secretary may establish a system to monitor and make available on a weekly basis information with respect to the most recent average domestic and world market prices for wool. ``(7) Participation.--The Secretary may make loans available under this subsection to producers, cooperatives, or marketing pools. ``(b) Loan Deficiency Payments.-- ``(1) In general.--The Secretary shall, for each of the 1996 through 1999 marketing years of wool, make payments available to producers who, although eligible to obtain a loan under subsection (a), agree to forgo obtaining the loan in return for payments under this subsection. [[Page S594]] ``(2) Computation.--A payment under this subsection shall be computed by multiplying-- ``(A) the loan payment rate; by ``(B) the quantity of wool the producer is eligible to place under loan but for which the producer forgoes 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 level determined for the marketing year under subsection (a); exceeds ``(B) the level at which a loan may be repaid under subsection (a). ``(c) Deficiency Payments.-- ``(1) In general.--The Secretary shall make available to producers deficiency payments for each of the 1996 through 1999 marketing years of wool in an amount computed by multiplying-- ``(A) the payment rate; by ``(B) the payment quantity of wool for the marketing year. ``(2) Payment rate.-- ``(A) In general.--The payment rate for wool shall be the amount by which the established price for the marketing year of wool exceeds the higher of-- ``(i) the national average market price received by producers during the marketing year, as determined by the Secretary; or ``(ii) the loan level determined for the marketing year. ``(B) Minimum established price.--The established price for wool shall not be less than $2.12 per pound on a grease wool basis for each of the 1996 through 1999 marketing years. ``(3) Payment quantity.--Payment quantity of wool for a marketing year shall be the number of pounds of wool produced during the marketing year. ``(d) Equitable Relief.-- ``(1) Loans and payments.--If the failure of a producer to comply fully with the terms and conditions of the program conducted under this section precludes the making of loans and payments, the Secretary may, nevertheless, make the loans and payments in such amounts as the Secretary determines are equitable in relation to the seriousness of the failure. The Secretary may consider whether the producer made a good faith effort to comply fully with the terms and conditions of the program in determining whether equitable relief is warranted under this paragraph. ``(2) Deadlines and program requirements.--The Secretary may authorize the county and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other program requirements in cases in which lateness or failure to meet such other requirements does not affect adversely the operation of the program. ``(e) Regulations.--The Secretary may issue such regulations as the Secretary determines necessary to carry out this section. ``(f) Commodity Credit Corporation.--The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. ``(g) Assignment of 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 payments under this section. ``(h) Sharing of Payments.--The Secretary shall provide for the sharing of payments made under this section for any farm among the producers on the farm on a fair and equitable basis. ``(i) Tenants and Sharecroppers.--The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. ``(j) Cross-Compliance.-- ``(1) In general.--Compliance on a farm with the terms and conditions of any other commodity program, or compliance with marketing year acreage base requirements for any other commodity, may not be required as a condition of eligibility for loans or payments under this section. ``(2) Compliance on other farms.--The Secretary may not require producers on a farm, as a condition of eligibility for loans or payments under this section for the farm, to comply with the terms and conditions of the wool program with respect to any other farm operated by the producers. ``(k) Limitation on Outlays.-- ``(1) In general.--The total amount of payments that may be made available to all producers under this section may not exceed-- ``(A) $75,000,000, during any single marketing year; or ``(B) $200,000,000 in the aggregate for marketing years 1996 through 1999. ``(2) Proration of benefits.--To the extent that the total amount of benefits for which producers are eligible under this section exceeds the limitations in paragraph (1), funds made available under this section shall be prorated among all eligible producers. ``(3) Person limitation.-- ``(A) Loans.--No person may realize gains or receive payments under subsection (a) or (b) that exceed $75,000 during any marketing year. ``(B) Deficiency payments.--No person may receive payments under subsection (c) that exceed $50,000 during any marketing year. ``(l) Marketing years.--Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 1999 marketing years for wool.''. SEC. 108. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY. (a) Wheat.-- (1) Nonapplicability of certificate requirements.--Sections 379d through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379d-1379j) shall not be applicable to wheat processors or exporters during the period June 1, 1995, through May 31, 2003. (2) Suspension of land use, wheat marketing allocation, and producer certificate provisions.--Sections 331 through 339, 379b, and 379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 1379c) shall not be applicable to the 1996 through 2002 crops of wheat. (3) Suspension of certain quota provisions.--The joint resolution entitled ``A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 1996 through 2002. (4) Nonapplicability of section 107 of the agricultural act of 1949.--Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to the 1996 through 2002 crops of wheat. (b) Feed Grains.-- (1) Nonapplicability of section 105 of the agricultural act of 1949.--Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be applicable to the 1996 through 2002 crops of feed grains. (2) Recourse loan program for silage.--Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-1) is amended by striking ``1996'' and inserting ``2002''. (c) Oilseeds.--Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ``oilseeds'' and all that follows through ``determine),''. (d) Upland Cotton.-- (1) Suspension of base acreage allotments, marketing quotas, and related provisions.--Sections 342, 343, 344, 345, 346, and 377 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not be applicable to any of the 1996 through 2002 crops of upland cotton. (2) Miscellaneous cotton provisions.--Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to the 1996 through 2002 crops. (e) Peanuts.-- (1) Suspension of marketing quotas and acreage allotments.--The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 1996 through 2002 crops of peanuts: (A) Subsections (a) through (j) of section 358 (7 U.S.C. 1358). (B) Subsections (a) through (h) of section 358a (7 U.S.C. 1358a). (C) Subsections (a), (b), (d), and (e) of section 358d (7 U.S.C. 1359). (D) Part I of subtitle C of title III (7 U.S.C. 1361 et seq.). (E) Section 371 (7 U.S.C. 1371). (2) Reports and records.--Effective only for the 1996 through 2002 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before ``all brokers and dealers in peanuts'' the following: ``all producers engaged in the production of peanuts,''. (3) Suspension of certain price support provisions.-- Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1996 through 2002 crops of peanuts. SEC. 109. EXTENSION OF RELATED PRICE SUPPORT PROVISIONS. (a) Deficiency and Land Diversion Payments.--Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is amended-- (1) in subsections (a)(1) and (c), by striking ``1997'' each place it appears and inserting ``2002''; and (2) in subsection (b), by striking ``1995'' and inserting ``2002''. (b) Adjustment of Established Prices.--Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b)) is amended by striking ``1995'' and inserting ``2002''. (c) Adjustment of Support Prices.--Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c)) is amended by striking ``1995'' and inserting ``2002''. (d) Application of Terms in the Agricultural Act of 1949.-- Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 1428(k)(3)) is amended by striking ``1995'' and inserting ``2002''. (e) Acreage Base and Yield System.--Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is amended-- (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 U.S.C. 1463), by striking ``1997'' each place it appears and inserting ``2002''; (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 1465(b)), by striking ``1997'' each place it appears and inserting ``2002''; and (3) in section 509 (7 U.S.C. 1469), by striking ``1997'' and inserting ``2002''. (f) Payment Limitations.--Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking ``1997'' each place it appears and inserting ``2002''. (g) Normally Planted Acreage.--Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1309) is amended by striking ``1995'' each place it appears in subsections (a), (b)(1), and (c) and inserting ``2002''. (h) Options Pilot Program.--The Options Pilot Program Act of 1990 (subtitle E of title XI of Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended-- [[Page S595]] (1) in subsections (a) and (b) of section 1153, by striking ``1995'' each place it appears and inserting ``2002''; and (2) in section 1154(b)(1)(A), by striking ``1995'' each place it appears and inserting ``2002''. (i) Food Security Wheat Reserve.--Section 302(i) of the Food Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by striking ``1995'' each place it appears and inserting ``2002''. SEC. 110. CROP INSURANCE ADMINISTRATIVE FEE. Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended-- (1) by striking paragraph (5); and (2) by redesignating paragraphs (6) through (10) as paragraphs (5) through (9), respectively. SEC. 111. EFFECTIVE DATE. (a) In General.--Except as otherwise specifically provided in this title, this title and the amendments made by this title shall apply beginning with the 1996 crop of an agricultural commodity. (b) Prior Crops.--Except as otherwise specifically provided and notwithstanding any other provision of law, this title and the amendments made by this title shall not affect the authority of the Secretary of Agriculture to carry out a price support, production adjustment, or payment program for-- (1) any of the 1991 through 1995 crops of an agricultural commodity established under a provision of law as in effect immediately before the enactment of this Act; or (2) the 1996 crop of an agricultural commodity established under section 406(b) of the Agricultural Act of 1949 (7 U.S.C. 1426(b)). TITLE II--CONSERVATION SEC. 201. CONSERVATION RESERVE PROGRAM. Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended by striking ``1995'' each place it appears in subsections (a) and (d) and inserting ``2002''. SEC. 202. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. Chapter 2 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838 et seq.) is amended to read as follows: ``CHAPTER 2--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM ``SEC. 1238. DEFINITIONS. ``In this chapter: ``(1) Land management practice.--The term `land management practice' means nutrient or manure management, integrated pest management, irrigation management, tillage or residue management, grazing management, or another land management practice the Secretary determines is needed to protect soil, water, or related resources in the most cost efficient manner. ``(2) Large confined livestock operation.--The term `large confined livestock operation' means a farm or ranch that-- ``(A) is a confined animal feeding operation; and ``(B) has more than-- ``(i) 700 mature dairy cattle; ``(ii) 1,000 beef cattle; ``(iii) 100,000 laying hens or broilers; ``(iv) 55,000 turkeys; ``(v) 2,500 swine; or ``(vi) 10,000 sheep or lambs. ``(3) Livestock.--The term `livestock' means mature dairy cows, beef cattle, laying hens, broilers, turkeys, swine, sheep, or lambs. ``(4) Operator.--The term `operator' means a person who is engaged in crop or livestock production (as defined by the Secretary). ``(5) Structural practice.--The term `structural practice' means the establishment of an animal waste management facility, terrace, grassed waterway, contour grass strip, filterstrip, permanent wildlife habitat, or another structural practice that the Secretary determines is needed to protect soil, water, or related resources in the most cost effective manner. ``SEC. 1238A. ESTABLISHMENT AND ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM. ``(a) Establishment.-- ``(1) In general.--During the 1996 through 2006 fiscal years, the Secretary shall enter into contracts with operators to provide technical assistance, cost-sharing payments, and incentive payments to operators, who enter into contracts with the Secretary, through an environmental quality incentives program in accordance with this chapter. ``(2) Consolidation of existing programs.--In establishing the environmental quality incentives program authorized under this chapter, the Secretary shall combine into a single program the functions of-- ``(A) the agricultural conservation program authorized by sections 7 and 8 of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590g and 590h); ``(B) the Great Plains conservation program established under section 16(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)); ``(C) the water quality incentives program established under this chapter; and ``(D) the Colorado River Basin salinity control program established under section 202(c) of the Colorado River Basin Salinity Control Act (43 U.S.C. 1592(c)). ``(b) Application and Term.-- ``(1) In general.--A contract between an operator and the Secretary under this chapter may-- ``(A) apply to 1 or more structural practices or 1 or more land management practices, or both; and ``(B) have a term of not less than 5, nor more than 10, years, as determined appropriate by the Secretary, depending on the practice or practices that are the basis of the contract. ``(2) Contract effective date.--A contract between an operator and the Secretary under this chapter shall become effective on October 1st following the date the contract is fully entered into. ``(c) Cost-Sharing and Incentive Payments.-- ``(1) Cost-sharing payments.-- ``(A) In general.--The Federal share of cost-sharing payments to an operator proposing to implement 1 or more structural practices shall not be more than 75 percent of the projected cost of the practice, as determined by the Secretary, taking into consideration any payment received by the operator from a State or local government. ``(B) Limitation.--An operator of a large confined livestock operation shall not be eligible for cost-sharing payments to construct an animal waste management facility. ``(C) Other payments.--An operator shall not be eligible for cost-sharing payments for structural practices on eligible land under this chapter if the operator receives cost-sharing payments or other benefits for the same land under chapter 1 or 3. ``(2) Incentive payments.--The Secretary shall make incentive payments in an amount and at a rate determined by the Secretary to be necessary to encourage an operator to perform 1 or more land management practices. ``(d) Technical Assistance.-- ``(1) Funding.--The Secretary shall allocate funding under this chapter for the provision of technical assistance according to the purpose and projected cost for which the technical assistance is provided in a fiscal year. The allocated amount may vary according to the type of expertise required quantity of time involved, and other factors as determined appropriate by the Secretary. Funding shal

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AMENDMENTS SUBMITTED
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