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[[Page 887]]
FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996
[[Page 110 STAT. 888]]
Public Law 104-127
104th Congress
An Act
To modify the operation of certain agricultural programs. <<NOTE: Apr.
4, 1996 - [H.R. 2854]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Federal
Agriculture Improvement and Reform Act of 1996.>>
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 7 USC 7201 note.>> Short Title.--This Act may be cited
as the ``Federal Agriculture Improvement and Reform 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--AGRICULTURAL MARKET TRANSITION ACT
Subtitle A--Short Title, Purpose, and Definitions
Sec. 101. Short title and purpose.
Sec. 102. Definitions.
Subtitle B--Production Flexibility Contracts
Sec. 111. Authorization for use of production flexibility contracts.
Sec. 112. Elements of contracts.
Sec. 113. Amounts available for contract payments.
Sec. 114. Determination of contract payments under contracts.
Sec. 115. Payment limitations.
Sec. 116. Violations of contract.
Sec. 117. Transfer or change of interest in lands subject to contract.
Sec. 118. Planting flexibility.
Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency
Payments
Sec. 131. Availability of nonrecourse marketing assistance loans.
Sec. 132. Loan rates for marketing assistance loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Availability of recourse loans for high moisture feed grains
and seed cotton.
Subtitle D--Other Commodities
Chapter 1--Dairy
Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy
products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or
more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide
international market development and export services.
[[Page 110 STAT. 889]]
Sec. 151. Study and report regarding potential impact of Uruguay Round
on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international
markets through dairy promotion program.
Chapter 2--Peanuts and Sugar
Sec. 155. Peanut program.
Sec. 156. Sugar program.
Subtitle E--Administration
Sec. 161. Administration.
Sec. 162. Adjustments of loans.
Sec. 163. Commodity Credit Corporation interest rate.
Sec. 164. Personal liability of producers for deficiencies.
Sec. 165. Commodity Credit Corporation sales price restrictions.
Subtitle F--Permanent Price Support Authority
Sec. 171. Suspension and repeal of permanent price support authority.
Sec. 172. Effect of amendments.
Subtitle G--Commission on 21st Century Production Agriculture
Sec. 181. Establishment.
Sec. 182. Composition.
Sec. 183. Comprehensive review of past and future of production
agriculture.
Sec. 184. Reports.
Sec. 185. Powers.
Sec. 186. Commission procedures.
Sec. 187. Personnel matters.
Sec. 188. Termination of Commission.
Subtitle H--Miscellaneous Commodity Provisions
Sec. 191. Options pilot program.
Sec. 192. Risk management education.
Sec. 193. Crop insurance.
Sec. 194. Establishment of Office of Risk Management.
Sec. 195. Revenue insurance.
Sec. 196. Administration and operation of noninsured crop assistance
program.
TITLE II--AGRICULTURAL TRADE
Subtitle A--Amendments to Agricultural Trade Development and Assistance
Act of 1954 and Related Statutes
Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food Aid Consultative Group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of Commodity Credit Corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations.
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
[[Page 110 STAT. 890]]
Sec. 229. Stimulation of foreign production.
Subtitle B--Amendments to Agricultural Trade Act of 1978
Sec. 241. Agricultural export promotion strategy.
Sec. 242. Implementation of commitments under Uruguay Round Agreements.
Sec. 243. Export credits.
Sec. 244. Market access program.
Sec. 245. Export enhancement program.
Sec. 246. Arrival certification.
Sec. 247. Compliance.
Sec. 248. Regulations.
Sec. 249. Trade compensation and assistance programs.
Sec. 250. Foreign Agricultural Service.
Sec. 251. Reports.
Sec. 252. Foreign market development cooperator program.
Subtitle C--Miscellaneous Agricultural Trade Provisions
Sec. 261. Edward R. Madigan United States Agricultural Export Excellence
Award.
Sec. 262. Reporting requirements relating to tobacco.
Sec. 263. Triggered export enhancement.
Sec. 264. Disposition of commodities to prevent waste.
Sec. 265. Debt-for-health-and-protection swap.
Sec. 266. Policy on expansion of international markets.
Sec. 267. Policy on maintenance and development of export markets.
Sec. 268. Policy on trade liberalization.
Sec. 269. Agricultural trade negotiations.
Sec. 270. Policy on unfair trade practices.
Sec. 271. Agricultural aid and trade missions.
Sec. 272. Annual reports by agricultural attaches.
Sec. 273. World livestock market price information.
Sec. 274. Orderly liquidation of stocks.
Sec. 275. Sales of extra long staple cotton.
Sec. 276. Regulations.
Sec. 277. Emerging markets.
Sec. 278. Reimbursement for overhead expenses.
Sec. 279. Labeling of domestic and imported lamb and mutton.
Sec. 280. Import assistance for CBI beneficiary countries and the
Philippines.
Sec. 281. Studies, reports, and other provisions.
Sec. 282. Sense of Congress concerning multilateral disciplines on
credit guarantees.
Sec. 283. International Cotton Advisory Committee.
TITLE III--CONSERVATION
Subtitle A--Definitions
Sec. 301. Definitions applicable to highly erodible cropland
conservation.
Subtitle B--Highly Erodible Land Conservation
Sec. 311. Program ineligibility.
Sec. 312. Conservation reserve lands.
Sec. 313. Good faith exemption.
Sec. 314. Expedited procedures for granting variances from conservation
plans.
Sec. 315. Development and implementation of conservation plans and
conservation systems.
Sec. 316. Investigation of possible compliance deficiencies.
Sec. 317. Wind erosion estimation pilot project.
Subtitle C--Wetland Conservation
Sec. 321. Program ineligibility.
Sec. 322. Delineation of wetlands; exemptions to program ineligibility.
Sec. 323. Consultation and cooperation requirements.
Sec. 324. Application of program ineligibility to affiliated persons.
Sec. 325. Clarification of definition of agricultural lands in
memorandum of agreement.
Sec. 326. Effective date.
Subtitle D--Environmental Conservation Acreage Reserve Program
Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
[[Page 110 STAT. 891]]
Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.
Subtitle E--Conservation Funding and Administration
Sec. 341. Conservation funding and administration.
Sec. 342. State technical committees.
Sec. 343. Public notice and comment for revisions to certain State
technical guides.
Subtitle F--National Natural Resources Conservation Foundation
Sec. 351. Short title.
Sec. 352. Definitions.
Sec. 353. National Natural Resources Conservation Foundation.
Sec. 354. Composition and operation.
Sec. 355. Officers and employees.
Sec. 356. Corporate powers and obligations of the Foundation.
Sec. 357. Administrative services and support.
Sec. 358. Audits and petition of Attorney General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.
Subtitle G--Forestry
Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection, management, and improvement
of National Forest System.
Sec. 373. Forestry incentives program.
Sec. 374. Optional State grants for forest legacy program.
Subtitle H--Miscellaneous Conservation Provisions
Sec. 381. Conservation activities of Commodity Credit Corporation.
Sec. 382. Floodplain easements.
Sec. 383. Resource conservation and development program.
Sec. 384. Repeal of report requirement.
Sec. 385. Flood risk reduction.
Sec. 386. Conservation of private grazing land.
Sec. 387. Wildlife habitat incentives program.
Sec. 388. Farmland protection program.
Sec. 389. Interim moratorium on bypass flows.
Sec. 390. Everglades ecosystem restoration.
Sec. 391. Agricultural air quality research oversight.
TITLE IV--NUTRITION ASSISTANCE
Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food
program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchen and food bank program.
Sec. 405. National commodity processing.
TITLE V--AGRICULTURAL PROMOTION
Subtitle A--Commodity Promotion and Evaluation
Sec. 501. Commodity promotion and evaluation.
Subtitle B--Issuance of Orders for Promotion, Research, and Information
Activities Regarding Agricultural Commodities
Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
[[Page 110 STAT. 892]]
Sec. 526. Authorization of appropriations.
Subtitle C--Canola and Rapeseed
Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to subpoena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.
Subtitle D--Kiwifruit
Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to subpoena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.
Subtitle E--Popcorn
Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to subpoena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.
Subtitle F--Miscellaneous
Sec. 591. Maintenance of records for honey promotion program.
TITLE VI--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.
Subtitle B--Operating Loans
Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for
guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 621. Hazard insurance requirement.
[[Page 110 STAT. 893]]
Sec. 622. Narrowing of authority to waive application of the credit
elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to
natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.
Subtitle D--Administrative Provisions
Sec. 631. Temporary authority to enter into contracts.
Sec. 632. Use of collection agencies.
Sec. 633. Notice of loan service programs.
Sec. 634. Clarification of written statement required of borrowers.
Sec. 635. Annual review of the credit history, business operation, and
continued eligibility of a borrower.
Sec. 636. Extension of veterans preference.
Sec. 637. Verification of the credit elsewhere test.
Sec. 638. Sale of property.
Sec. 639. Easements on inventoried property.
Sec. 640. Definitions.
Sec. 641. Authorization for loans.
Sec. 642. Contracts on loan security properties.
Sec. 643. List of certified lenders and inventory property demonstration
project.
Sec. 644. Homestead property.
Sec. 645. Restructuring.
Sec. 646. Transfer of inventory land for conservation purposes.
Sec. 647. Implementation of target participation rates.
Sec. 648. Delinquent borrowers.
Sec. 649. Short form certification of farm program borrower compliance.
Sec. 650. Credit study.
Subtitle E--General Provisions
Sec. 661. Conforming amendments.
Sec. 662. Electronic filing of effective financing statements under the
clear title provisions of the Food Security Act of 1985.
Sec. 663. Effective date.
TITLE VII--RURAL DEVELOPMENT
Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade
Act of 1990
Chapter 1--General Provisions
Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural
technology grants.
Sec. 706. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer and agricultural
chemicals to farmers.
Chapter 2--Alternative Agricultural Research and Commercialization
Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization
Revolving Fund.
Sec. 729. Procurement preferences for products receiving Corporation
assistance.
Sec. 730. Business plan and feasibility study and report.
Subtitle B--Amendments to the Consolidated Farm and Rural Development
Act
Chapter 1--General Provisions
Sec. 741. Water and waste facility loans and grants.
[[Page 110 STAT. 894]]
Sec. 742. Emergency community water assistance grant program for small
communities.
Sec. 743. Emergency community water assistance grant program for
smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development
loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal
loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.
Chapter 2--Rural Community Advancement Program
Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance from all
Federal rural development programs.
Sec. 763. Community facilities grant program.
Subtitle C--Amendments to the Rural Electrification Act of 1936
Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by Executive
order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services
to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural Business Incubator Fund.
Subtitle D--Miscellaneous Rural Development Provisions
Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers,
and rural families.
Sec. 793. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural Economic and
Community Development renamed the Under Secretary of
Agriculture for Rural Development.
TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION
Subtitle A--Modification and Extension of Activities Under 1977 Act
Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State
cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension,
and education.
Sec. 805. Grants and fellowships for food and agricultural sciences
education.
Sec. 806. Grants for research on the production and marketing of
alcohols and industrial hydrocarbons from agricultural
commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research
program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease
research.
[[Page 110 STAT. 895]]
Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences
facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research
programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.
Subtitle B--Modification and Extension of Activities Under 1990 Act
Sec. 831. Water quality research, education, and coordination.
Sec. 832. National genetics resources program.
Sec. 833. National agricultural weather information system.
Sec. 834. Livestock product safety and inspection program.
Sec. 835. Plant genome mapping program.
Sec. 836. Certain specialized research programs.
Sec. 837. Agricultural telecommunications program.
Sec. 838. National centers for agricultural product quality research.
Sec. 839. Red meat safety research center.
Sec. 840. Indian reservation extension agent program.
Sec. 841. Assistive technology program for farmers with disabilities.
Sec. 842. National rural information center clearinghouse.
Sec. 843. Global climate change.
Subtitle C--Repeal of Certain Activities and Authorities
Sec. 851. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 852. Joint Council on Food and Agricultural Sciences.
Sec. 853. Agricultural Science and Technology Review Board.
Sec. 854. Animal Health Science Research Advisory Board.
Sec. 855. Resident instruction program at 1890 land-grant colleges.
Sec. 856. Grants to States for international trade development centers.
Sec. 857. Rangeland research.
Sec. 858. Composting research and extension program.
Sec. 859. Education program regarding handling of agricultural chemicals
and agricultural chemical containers.
Sec. 860. Program administration regarding sustainable agriculture
research and education.
Sec. 861. Research regarding production, preparation, processing,
handling, and storage of agricultural products.
Sec. 862. Plant and animal pest and disease control program.
Sec. 863. Certain specialized research programs.
Sec. 864. Commission on agricultural research facilities.
Sec. 865. Special grant to study constraints on agricultural trade.
Sec. 866. Pilot project to coordinate food and nutrition education
programs.
Sec. 867. Demonstration areas for rural economic development.
Sec. 868. Technical advisory committee regarding global climate change.
Sec. 869. Committee of nine under Hatch Act of 1887.
Sec. 870. Cotton crop reports.
Sec. 871. Rural economic and business development and additional
research grants under title V of Rural Development Act of
1972.
Sec. 872. Human nutrition research.
Sec. 873. Grants to upgrade 1890 land-grant college extension
facilities.
Sec. 874. Indian subsistence farming demonstration grant program.
Subtitle D--Miscellaneous Research Provisions
Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges,
including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown
citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.
[[Page 110 STAT. 896]]
Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate
potential food, feed, and fiber shortages or excesses and to
provide timely information to assist farmers with planting
decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research
and extension activities.
Subtitle E--Research Authority After Fiscal Year 1997
Sec. 897. Authorization of appropriations.
Sec. 898. Activities subject to availability of appropriations.
TITLE IX--MISCELLANEOUS
Subtitle A--Commercial Transportation of Equine for Slaughter
Sec. 901. Findings.
Sec. 902. Definitions.
Sec. 903. Regulation of commercial transportation of equine for
slaughter.
Sec. 904. Limitation of authority to equine for slaughter.
Sec. 905. Effective date.
Subtitle B--General Provisions
Sec. 911. Interstate quarantine.
Sec. 912. Cotton classification services.
Sec. 913. Plant variety protection for certain tuber propagated plant
varieties.
Sec. 914. Swine health protection.
Sec. 915. Designation of Mount Pleasant National Scenic Area.
Sec. 916. Pseudorabies eradication program.
Sec. 917. Collection and use of agricultural quarantine and inspection
fees.
Sec. 918. Meat and poultry inspection.
Sec. 919. Reimbursable agreements.
Sec. 920. Overseas tort claims.
Sec. 921. Operation of Graduate School of Department of Agriculture as
nonappropriated fund instrumentality.
Sec. 922. Student internship programs.
Sec. 923. Conveyance of excess Federal personal property.
Sec. 924. Conveyance of land to White Oak Cemetery.
Sec. 925. Sale of land by the University of Arkansas.
Sec. 926. Designation of Dale Bumpers Small Farms Research Center.
Sec. 927. Department of Agriculture Washington Area Strategic Space
Plan.
Sec. 928. Severability.
<<NOTE: Agricultural Market Transition Act. Contracts. Loans.>> TITLE
I--AGRICULTURAL MARKET TRANSITION ACT
Subtitle A--Short Title, Purpose, and Definitions
SEC. 101. <<NOTE: 7 USC 7201.>> SHORT TITLE AND PURPOSE.
(a) Short Title.--This title may be cited as the ``Agricultural
Market Transition Act''.
(b) Purpose.--It is the purpose of this title--
(1) to authorize the use of binding production flexibility
contracts between the United States and agricultural producers
to support farming certainty and flexibility while ensuring
continued compliance with farm conservation and wetland
protection requirements;
(2) to make nonrecourse marketing assistance loans and loan
deficiency payments available for certain crops;
(3) to improve the operation of farm programs for milk,
peanuts, and sugar; and
(4) to establish a commission to undertake a comprehensive
review of past and future production agriculture in the United
States.
[[Page 110 STAT. 897]]
SEC. 102. <<NOTE: 7 USC 7202.>> DEFINITIONS.
In this title:
(1) Agricultural act of 1949.--Except in section 171, the
term ``Agricultural Act of 1949'' means the Agricultural Act of
1949 (7 U.S.C. 1421 et seq.), as in effect prior to the
suspensions under section 171(b)(1).
(2) Considered planted.--The term ``considered planted''
means acreage that is considered planted under title V of the
Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) and such other
acreage as the Secretary considers fair and equitable.
(3) Contract.--The terms ``contract'' and ``production
flexibility contract'' mean a production flexibility contract
entered into under section 111.
(4) Contract acreage.--The term ``contract acreage'' means 1
or more crop acreage bases established for contract commodities
under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et
seq.) that would have been in effect for the 1996 crop (but for
suspension under section 171(b)(1)).
(5) Contract commodity.--The term ``contract commodity''
means wheat, corn, grain sorghum, barley, oats, upland cotton,
and rice.
(6) Contract payment.--The term ``contract payment'' means a
payment made under this subtitle pursuant to a contract.
(7) Department.--The term ``Department'' means the
Department of Agriculture.
(8) Extra long staple cotton.--The term ``extra long staple
cotton'' means cotton that--
(A) is produced from pure strain varieties of the
Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated by
the Secretary, having characteristics needed for various
end uses for which United States upland cotton is not
suitable and grown in irrigated cotton-growing regions
of the United States designated by the Secretary or
other areas designated by the Secretary as suitable for
the production of the varieties or types; and
(B) is ginned on a roller-type gin or, if authorized
by the Secretary, ginned on another type gin for
experimental purposes.
(9) Farm program payment yield.--The term ``farm program
payment yield'' means the farm program payment yield established
for the 1995 crop of a contract commodity under section 505 of
the Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary
shall adjust the farm program payment yield for the 1995 crop of
a contract commodity to account for any additional yield
payments made with respect to that crop under subsection (b)(2)
of the section.
(10) Loan commodity.--The term ``loan commodity'' means each
contract commodity, extra long staple cotton, and oilseed.
(11) Oilseed.--The term ``oilseed'' means a crop of
soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, other
oilseeds.
(12) Producer.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper who shares in the
risk of producing a crop and who is entitled to share in the
crop available for marketing from the farm, or would have
[[Page 110 STAT. 898]]
shared had the crop been produced. In determining whether a
grower of hybrid seed is a producer, the Secretary shall not
take into consideration the existence of a hybrid seed contract.
(13) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(14) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or
possession of the United States.
(15) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
Subtitle B--Production Flexibility Contracts
SEC. 111. <<NOTE: 7 USC 7211.>> AUTHORIZATION FOR USE OF PRODUCTION
FLEXIBILITY CONTRACTS.
(a) Offer and Terms.--The Secretary shall offer to enter into a
production flexibility contract with an eligible owner or producer
described in subsection (b) on a farm containing eligible cropland.
Under the terms of a contract, the owner or producer shall agree, in
exchange for annual contract payments, to--
(1) comply with applicable conservation requirements under
subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.);
(2) comply with applicable wetland protection requirements
under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.);
(3) comply with the planting flexibility requirements of
section 118; and
(4) use the land subject to the contract for an agricultural
or related activity, but not for a nonagricultural commercial or
industrial use, as determined by the Secretary.
(b) Eligible Owners and Producers Described.--The following
producers and owners shall be eligible to enter into a contract:
(1) An owner of eligible cropland who assumes all or a part
of the risk of producing a crop.
(2) A producer (other than an owner) on eligible cropland
with a share-rent lease of the eligible cropland, regardless of
the length of the lease, if the owner enters into the same
contract.
(3) A producer (other than an owner) on eligible cropland
who cash rents the eligible cropland under a lease expiring on
or after September 30, 2002, in which case the owner is not
required to enter into the contract.
(4) A producer (other than an owner) on eligible cropland
who cash rents the eligible cropland under a lease expiring
before September 30, 2002. The owner of the eligible cropland
may also enter into the same contract. If the producer elects to
enroll less than 100 percent of the eligible cropland in the
contract, the consent of the owner is required.
(5) An owner of eligible cropland who cash rents the
eligible cropland and the lease term expires before September
30, 2002, if the tenant declines to enter into a contract. In
the case of an owner covered by this paragraph, contract
payments
[[Page 110 STAT. 899]]
shall not begin under a contract until the lease held by the
tenant ends.
(6) An owner or producer described in any preceding
paragraph regardless of whether the owner or producer purchased
catastrophic risk protection for a 1996 crop under section
508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).
(c) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(d) Eligible Cropland Described.--Land shall be considered to be
cropland eligible for coverage under a contract only if the land has
contract acreage attributable to the land and--
(1) for at least 1 of the 1991 through 1995 crops, at least
a portion of the land was enrolled in the acreage reduction
program authorized for a crop of a contract commodity under
section 101B, 103B, 105B, or 107B of the Agricultural Act of
1949 or was considered planted;
(2) was subject to a conservation reserve contract under
section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
whose term expired, or was voluntarily terminated, on or after
January 1, 1995; or
(3) is released from coverage under a conservation reserve
contract by the Secretary during the period beginning on January
1, 1995, and ending on the date specified in section 112(a)(2).
(e) Quantity of Eligible Cropland Covered by Contract.--Subject to
subsection (b)(4), an owner or producer may enroll as contract acreage
all or a portion of the eligible cropland on the farm.
(f) Voluntary Reduction in Contract Acreage.--Subject to subsection
(b)(4), an owner or producer who enters into a contract may subsequently
reduce the quantity of contract acreage covered by the contract.
SEC. 112. <<NOTE: 7 USC 7212.>> ELEMENTS OF CONTRACTS.
(a) Time for Contracting.--
(1) Commencement.--To the extent practicable, the Secretary
shall commence entering into contracts not later than 45 days
after the date of enactment of this title.
(2) Deadline.--Except as provided in paragraph (3), the
Secretary may not enter into a contract after August 1, 1996.
(3) Conservation reserve lands.--
(A) In general.--At the beginning of each fiscal
year, the Secretary shall allow an eligible owner or
producer on a farm covered by a conservation reserve
contract entered into under section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) that terminates
after the date specified in paragraph (2) to enter into
or expand a production flexibility contract to cover the
contract acreage of the farm that was subject to the
former conservation reserve contract.
(B) Amount.--Contract payments made for contract
acreage under this paragraph shall be made at the rate
and amount applicable to the annual contract payment
level for the applicable crop. For the fiscal year in
which the conservation reserve contract is terminated,
the owner or producer subject to the production
flexibility contract
[[Page 110 STAT. 900]]
may elect to receive either contract payments or a
prorated payment under the conservation reserve
contract, but not both.
(b) Duration of Contract.--
(1) Beginning date.--The term of a contract shall begin
with--
(A) the 1996 crop of a contract commodity; or
(B) in the case of acreage that was subject to a
conservation reserve contract described in subsection
(a)(3), the date the production flexibility contract was
entered into or expanded to cover the acreage.
(2) Ending date.--The term of a contract shall extend
through the 2002 crop, unless earlier terminated by the owner or
producer.
(c) Estimation of Contract Payments.--At the time the Secretary
enters into a contract, the Secretary shall provide an estimate of the
minimum contract payments anticipated to be made during at least the
first fiscal year for which contract payments will be made.
(d) Time for Payment.--
(1) In general.--An annual contract payment shall be made
not later than September 30 of each of fiscal years 1996 through
2002.
(2) Advance payments.--
(A) Fiscal year 1996.--At the option of the owner or
producer, 50 percent of the contract payment for fiscal
year 1996 shall be made not later than 30 days after the
date on which the contract is entered into and approved
by the Secretary and the owner or producer.
(B) Subsequent fiscal years.--At the option of the
owner or producer for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual
contract payment shall be made on December 15 or January
15 of the fiscal year. The owner or producer may change
the date selected under this subparagraph for a
subsequent fiscal year by providing advance notice to
the Secretary.
SEC. 113. <<NOTE: 7 USC 7213.>> AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.
(a) Fiscal Year Amounts.--The Secretary shall, to the maximum extent
practicable, expend the following amounts to satisfy the obligations of
the Secretary under all contracts:
(1) For fiscal year 1996, $5,570,000,000.
(2) For fiscal year 1997, $5,385,000,000.
(3) For fiscal year 1998, $5,800,000,000.
(4) For fiscal year 1999, $5,603,000,000.
(5) For fiscal year 2000, $5,130,000,000.
(6) For fiscal year 2001, $4,130,000,000.
(7) For fiscal year 2002, $4,008,000,000.
(b) Allocation.--The amount made available for a fiscal year under
subsection (a) shall be allocated as follows:
(1) For wheat, 26.26 percent.
(2) For corn, 46.22 percent.
(3) For grain sorghum, 5.11 percent.
(4) For barley, 2.16 percent.
(5) For oats, 0.15 percent.
(6) For upland cotton, 11.63 percent.
(7) For rice, 8.47 percent.
[[Page 110 STAT. 901]]
(c) Adjustment.--The Secretary shall adjust the amounts allocated
for each contract commodity under subsection (b) for a particular fiscal
year by--
(1) adding an amount equal to the sum of all repayments of
deficiency payments required under section 114(a)(2) of the
Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the
commodity;
(2) adding an amount equal to the sum of all refunds of
contract payments received during the preceding fiscal year
under section 116 for the commodity; and
(3) subtracting an amount equal to the amount, if any,
necessary during that fiscal year to satisfy payment
requirements for the commodity under sections 103B, 105B, or
107B of the Agricultural Act of 1949 for the 1994 and 1995 crop
years.
(d) Additional Rice Allocation.--In addition to the adjustments
required under subsection (c), the amount allocated under subsection (b)
for rice contract payments shall be increased by $8,500,000 for each of
fiscal years 1997 through 2002.
(e) Exclusion of Certain Amounts From Contract Payments.--Any amount
added pursuant to paragraphs (1) and (2) of subsection (c) to the amount
available under subsection (a) for a fiscal year and paid to owners and
producers under a contract shall not be treated as a contract payment
for purposes of section 115(a) of this title or section 1001(1) of the
Food Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of a
payment covered by this subsection may not exceed $50,000 per person.
(f) Effect of Payment Limitation.--The amount available under
subsection (a) for a fiscal year shall be reduced by an amount equal to
the total amount of contract payments for the fiscal year that owners
and producers forgo as a result of operation of the payment limitation
under section 1001(1) of the Food Security Act of 1985 (7 U.S.C.
1308(1)).
SEC. 114. <<NOTE: 7 USC 7214.>> DETERMINATION OF CONTRACT PAYMENTS UNDER
CONTRACTS.
(a) Individual Payment Quantity of Contract Commodities.--For each
contract, the payment quantity of a contract commodity for each fiscal
year shall be equal to the product of--
(1) 85 percent of the contract acreage; and
(2) the farm program payment yield.
(b) Annual Payment Quantity of Contract Commodities.--The payment
quantity of each contract commodity covered by all contracts for each
fiscal year shall be equal to the sum of the amounts calculated under
subsection (a) for each individual contract.
(c) Annual Payment Rate.--The payment rate for a contract commodity
for each fiscal year shall be equal to--
(1) the amount made available under section 113 for the
contract commodity for the fiscal year; divided by
(2) the amount determined under subsection (b) for the
fiscal year.
(d) Annual Payment Amount.--The amount to be paid under a contract
in effect for each fiscal year with respect to all contract commodities
covered by the contract shall be equal to the sum of the products of--
[[Page 110 STAT. 902]]
(1) the payment quantity determined under subsection (a) for
each of the contract commodities covered by the contract; and
(2) the corresponding payment rate for the contract
commodity in effect under subsection (c).
(e) Reduction in Payment Amount.--The contract payment determined
under subsection (d) for an owner or producer for a fiscal year shall be
immediately reduced by the amount of any repayment of deficiency
payments that is required under section 114(a)(2) of the Agricultural
Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid as of the date the
contract payment is determined. The Secretary shall be required to
collect the required repayment, or any claim based on the required
repayment, as soon as the contract payment is determined.
(f) Assignment of Contract Payments.--The provisions of section 8(g)
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g))
(relating to assignment of payments) shall apply to contract payments
under this section. The owner or producer making the assignment, or the
assignee, shall provide the Secretary with notice, in such manner as the
Secretary may require in the contract, of any assignment made under this
subsection.
(g) Sharing of Contract Payments.--The Secretary shall provide for
the sharing of contract payments among the owners and producers subject
to the contract on a fair and equitable basis.
SEC. 115. <<NOTE: 7 USC 7215.>> PAYMENT LIMITATIONS.
(a) Applicability of Payment Limitations.--Sections 1001 through
1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3),
as amended by this section, shall be applicable to contract payments
made under this subtitle.
(b) Payment Limitations.--Section 1001 of the Food Security Act of
1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) through (4)
and inserting the following:
``(1) Limitation on payments under production flexibility
contracts.--The total amount of contract payments made under the
Agricultural Market Transition Act to a person under 1 or more
production flexibility contracts during any fiscal year may not
exceed $40,000.
``(2) Limitation on marketing loan gains and loan deficiency
payments.--The total amount of the payments specified in
paragraph (3) that a person shall be entitled to receive under
the Agricultural Market Transition Act for 1 or more contract
commodities and oilseeds during any crop year may not exceed
$75,000.
``(3) Description of payments subject to limitation.--The
payments referred to in paragraph (2) are the following:
``(A) Any gain realized by a producer from repaying
a marketing assistance loan under section 131 of the
Agricultural Market Transition Act for a crop of any
loan commodity at a lower level than the original loan
rate established for the loan commodity under section
132 of the Act.
``(B) Any loan deficiency payment received for a
loan commodity under section 135 of the Act.
``(4) Definitions.--In this title, the terms `contract
commodity', `contract payment', `loan commodity', `oilseed', and
`production flexibility contract' have the meaning given those
[[Page 110 STAT. 903]]
terms in section 102 of the Agricultural Market Transition
Act.''.
(c) Conforming Amendments.--
(1) Section 1001A of the Food Security Act of 1985 (7 U.S.C.
1308-1) is amended--
(A) in subsection (a)(1), by striking ``under the
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)''; and
(B) in subsection (b)(1), by striking ``under the
Agricultural Act of 1949''.
(2) Section 1001C(a) of the Act (7 U.S.C. 1308-3(a)) is
amended--
(A) by striking ``For each of the 1991 through 1997
crops, any'' and inserting ``Any'';
(B) by striking ``production adjustment payments,
price support program loans, payments, or benefits made
available under the Agricultural Act of 1949 (7 U.S.C.
1421 et seq.),'' and inserting ``loans or payments made
available under the Agricultural Market Transition
Act,''; and
(C) by striking ``during the 1989 through 1997 crop
years''.
SEC. 116. <<NOTE: 7 USC 7216.>> VIOLATIONS OF CONTRACT.
(a) Termination of Contract For Violation.--Except as provided in
subsection (b), if an owner or producer subject to a contract violates a
requirement of the contract specified in section 111(a), the Secretary
shall terminate the contract with respect to the owner or producer on
each farm in which the owner or producer has an interest. On the
termination, the owner or producer shall forfeit all rights to receive
future contract payments on each farm in which the owner or producer has
an interest and shall refund to the Secretary all contract payments
received by the owner or producer during the period of the violation,
together with interest on the contract payments as determined by the
Secretary.
(b) Refund or Adjustment.--If the Secretary determines that a
violation does not warrant termination of the contract under subsection
(a), the Secretary may require the owner or producer subject to the
contract--
(1) to refund to the Secretary that part of the contract
payments received by the owner or producer during the period of
the violation, together with interest on the contract payments
as determined by the Secretary; or
(2) to accept a reduction in the amount of future contract
payments that is proportionate to the severity of the violation,
as determined by the Secretary.
(c) Foreclosure.--
(1) Effect of foreclosure.--An owner or producer subject to
a contract may not be required to make repayments to the
Secretary of amounts received under the contract if the contract
acreage has been foreclosed on and the Secretary determines that
forgiving the repayments is appropriate to provide fair and
equitable treatment.
(2) Resumption of operation.--This subsection shall not void
the responsibilities of the owner or producer under the contract
if the owner or producer continues or resumes operation, or
control, of the contract acreage. On the resumption of operation
or control over the contract acreage by the owner
[[Page 110 STAT. 904]]
or producer, the provisions of the contract in effect on the
date of the foreclosure shall apply.
(d) Review.--A determination of the Secretary under this section
shall be considered to be an adverse decision for purposes of the
availability of administrative review of the determination.
SEC. 117. <<NOTE: 7 USC 7217.>> TRANSFER OR CHANGE OF INTEREST IN LANDS
SUBJECT TO CONTRACT.
(a) Termination.--Except as provided in subsection (c), a transfer
of (or change in) the interest of an owner or producer subject to a
contract in the contract acreage covered by the contract shall result in
the termination of the contract with respect to the acreage, unless the
transferee or owner of the acreage agrees to assume all obligations
under the contract. The termination shall be effective on the date of
the transfer or change.
(b) Modification.--At the request of the transferee or owner, the
Secretary may modify the contract if the modifications are consistent
with the objectives of this subtitle, as determined by the Secretary.
(c) Exception.--If an owner or producer who is entitled to a
contract payment dies, becomes incompetent, or is otherwise unable to
receive the contract payment, the Secretary shall make the payment, in
accordance with regulations prescribed by the Secretary.
SEC. 118. <<NOTE: 7 USC 7218.>> PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on contract acreage on a farm.
(b) Limitations and Exceptions Regarding Fruits and Vegetables.--
(1) Limitations.--The planting of fruits and vegetables
(other than lentils, mung beans, and dry peas) shall be
prohibited on contract acreage.
(2) Exceptions.--Paragraph (1) shall not limit the planting
of a fruit or vegetable--
(A) in any region in which there is a history of
double-cropping of contract commodities with fruits or
vegetables, as determined by the Secretary, in which
case the double-cropping shall be permitted;
(B) on a farm that the Secretary determines has a
history of planting fruits or vegetables on contract
acreage, except that a contract payment shall be reduced
by an acre for each acre planted to the fruit or
vegetable; or
(C) by a producer who the Secretary determines has
an established planting history of a specific fruit or
vegetable, except that--
(i) the quantity planted may not exceed the
producer's average annual planting history of the
fruit or vegetable in the 1991 through 1995 crop
years (excluding any crop year in which no
plantings were made), as determined by the
Secretary; and
(ii) a contract payment shall be reduced by an
acre for each acre planted to the fruit or
vegetable.
[[Page 110 STAT. 905]]
Subtitle C--Nonrecourse Marketing Assistance Loans and Loan Deficiency
Payments
SEC. 131. <<NOTE: 7 USC 7231.>> AVAILABILITY OF NONRECOURSE MARKETING
ASSISTANCE LOANS.
(a) Nonrecourse Loans Available.--For each of the 1996 through 2002
crops of each loan commodity, the Secretary shall make available to
producers on a farm nonrecourse marketing assistance loans for loan
commodities produced on the farm. The loans shall be made under terms
and conditions that are prescribed by the Secretary and at the loan rate
established under section 132 for the loan commodity.
(b) Eligible Production.--The following production shall be eligible
for a marketing assistance loan under subsection (a):
(1) In the case of a marketing assistance loan for a
contract commodity, any production by a producer on a farm
containing eligible cropland covered by a production flexibility
contract.
(2) In the case of a marketing assistance loan for extra
long staple cotton and oilseeds, any production.
(c) Compliance With Conservation and Wetlands Requirements.--As a
condition of the receipt of a marketing assistance loan under subsection
(a), the producer shall comply with applicable conservation requirements
under subtitle B of title XII of the Food Security Act of 1985 (16
U.S.C. 3811 et seq.) and applicable wetland protection requirements
under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during
the term of the loan.
(d) Additional Outlays Prohibited.--The Secretary shall carry out
this subtitle in such a manner that there are no additional outlays
under this subtitle as a result of the reconstitution of a farm that
occurs as a result of the combination of another farm that does not
contain eligible cropland covered by a production flexibility contract.
SEC. 132. <<NOTE: 7 USC 7232.>> LOAN RATES FOR MARKETING ASSISTANCE
LOANS.
(a) Wheat.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 131 for wheat shall
be--
(A) not less than 85 percent of the simple average
price received by producers of wheat, as determined by
the Secretary, during the marketing years for the
immediately preceding 5 crops of wheat, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not more than $2.58 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending stocks
of wheat to total use for the marketing year will be--
(A) equal to or greater than 30 percent, the
Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 10 percent
in any year;
(B) less than 30 percent but not less than 15
percent, the Secretary may reduce the loan rate for
wheat for the
[[Page 110 STAT. 906]]
corresponding crop by an amount not to exceed 5 percent
in any year; or
(C) less than 15 percent, the Secretary may not
reduce the loan rate for wheat for the corresponding
crop.
(b) Feed Grains.--
(1) Loan rate for corn.--Subject to paragraph (2), the loan
rate for a marketing assistance loan under section 131 for corn
shall be--
(A) not less than 85 percent of the simple average
price received by producers of corn, as determined by
the Secretary, during the marketing years for the
immediately preceding 5 crops of corn, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not more than $1.89 per bushel.
(2) Stocks to use ratio adjustment.--If the Secretary
estimates for any marketing year that the ratio of ending stocks
of corn to total use for the marketing year will be--
(A) equal to or greater than 25 percent, the
Secretary may reduce the loan rate for corn for the
corresponding crop by an amount not to exceed 10 percent
in any year;
(B) less than 25 percent but not less than 12.5
percent, the Secretary may reduce the loan rate for corn
for the corresponding crop by an amount not to exceed 5
percent in any year; or
(C) less than 12.5 percent, the Secretary may not
reduce the loan rate for corn for the corresponding
crop.
(3) Other feed grains.--The loan rate for a marketing
assistance loan under section 131 for grain sorghum, barley, and
oats, respectively, shall be established at such level as the
Secretary determines is fair and reasonable in relation to the
rate that loans are made available for corn, taking into
consideration the feeding value of the commodity in relation to
corn.
(c) Upland Cotton.--
(1) Loan rate.--Subject to paragraph (2), the loan rate for
a marketing assistance loan under section 131 for upland cotton
shall be established by the Secretary at such loan rate, per
pound, as will reflect for the base quality of upland cotton, as
determined by the Secretary, at average locations in the United
States a rate that is not less than the smaller of--
(A) 85 percent of the average price (weighted by
market and month) of the base quality of cotton as
quoted in the designated United States spot markets
during 3 years of the 5-year period ending July 31 of
the year preceding the year in which the crop is
planted, 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, for the 15-week
period beginning July 1 of the year preceding the year
in which the crop is planted, of the 5 lowest-priced
growths of the growths quoted for Middling 1\3/32\-inch
cotton C.I.F. Northern Europe (adjusted downward by the
average difference during the period April 15 through
October 15 of the year preceding the year in which the
crop is planted between the average Northern European
price quotation of such
[[Page 110 STAT. 907]]
quality of cotton and the market quotations in the
designated United States spot markets for the base
quality of upland cotton), as determined by the
Secretary.
(2) Limitations.--The loan rate for a marketing assistance
loan for upland cotton shall not be less than $0.50 per pound or
more than $0.5192 per pound.
(d) Extra Long Staple Cotton.--The loan rate for a marketing
assistance loan under section 131 for extra long staple cotton shall
be--
(1) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as determined
by the Secretary, during 3 years of the 5-year period ending
July 31 of the year preceding the year in which the crop is
planted, excluding the year in which the average price was the
highest and the year in which the average price was the lowest
in the period; but
(2) not more than $0.7965 per pound.
(e) Rice.--The loan rate for a marketing assistance loan under
section 131 for rice shall be $6.50 per hundredweight.
(f) Oilseeds.--
(1) Soybeans.--The loan rate for a marketing assistance loan
under section 131 for soybeans shall be--
(A) not less than 85 percent of the simple average
price received by producers of soybeans, as determined
by the Secretary, during the marketing years for the
immediately preceding 5 crops of soybeans, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; but
(B) not less than $4.92 or more than $5.26 per
bushel.
(2) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rate for a marketing assistance
loan under section 131 for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be--
(A) not less than 85 percent of the simple average
price received by producers of sunflower seed,
individually, as determined by the Secretary, during the
marketing years for the immediately preceding 5 crops of
sunflower seed, individually, excluding the year in
which the average price was the highest and the year in
which the average price was the lowest in the period;
but
(B) not less than $0.087 or more than $0.093 per
pound.
(3) Other oilseeds.--The loan rates for a marketing
assistance loan under section 131 for other oilseeds shall be
established at such level as the Secretary determines is fair
and reasonable in relation to the loan rate available for
soybeans, except in no event shall the rate for the oilseeds
(other than cottonseed) be less than the rate established for
soybeans on a per-pound basis for the same crop.
SEC. 133. <<NOTE: 7 USC 7233.>> TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity (other than
upland cotton or extra long staple cotton), a marketing assistance loan
under section 131 shall have a term of 9 months beginning
[[Page 110 STAT. 908]]
on the first day of the first month after the month in which the loan is
made.
(b) Special Rule for Cotton.--A marketing assistance loan for upland
cotton or extra long staple cotton shall have a term of 10 months
beginning on the first day of the month in which the loan is made.
(c) Extensions Prohibited.--The Secretary may not extend the term of
a marketing assistance loan for any loan commodity.
SEC. 134. <<NOTE: 7 USC 7234.>> REPAYMENT OF LOANS.
(a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--The
Secretary shall permit a producer to repay a marketing assistance loan
under section 131 for wheat, corn, grain sorghum, barley, oats, and
oilseeds at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 132, plus interest (as determined by the Secretary); or
(2) a rate that the Secretary determines will--
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the
commodity by the Federal Government;
(C) minimize the cost incurred by the Federal
Government in storing the commodity; and
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally.
(b) Repayment Rates for Upland Cotton and Rice.--The Secretary shall
permit producers to repay a marketing assistance loan under section 131
for upland cotton and rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 132, plus interest (as determined by the Secretary); or
(2) the prevailing world market price for the commodity
(adjusted to United States quality and location), as determined
by the Secretary.
(c) Repayment Rates for Extra Long Staple Cotton.--Repayment of a
marketing assistance loan for extra long staple cotton shall be at the
loan rate established for the commodity under section 132, plus interest
(as determined by the Secretary).
(d) <<NOTE: Regulations.>> Prevailing World Market Price.--For
purposes of this section and section 136, the Secretary shall prescribe
by regulation--
(1) a formula to determine the prevailing world market price
for each loan commodity, adjusted to United States quality and
location; and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for each loan
commodity.
(e) Adjustment of Prevailing World Market Price for Upland Cotton.--
(1) In general.--During the period ending July 31, 2003, the
prevailing world market price for upland cotton (adjusted to
United States quality and location) established under subsection
(d) shall be further adjusted if--
(A) the adjusted prevailing world market price is
less than 115 percent of the loan rate for upland cotton
established under section 132, as determined by the
Secretary; and
[[Page 110 STAT. 909]]
(B) the Friday through Thursday average price
quotation for the lowest-priced United States growth as
quoted for Middling (M) 1\3/32\-inch cotton delivered
C.I.F. Northern Europe is greater than the Friday
through Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for Middling (M)
1\3/32\-inch cotton, delivered C.I.F. Northern Europe
(referred to in this section as the ``Northern Europe
price'').
(2) Further adjustment.--Except as provided in paragraph
(3), the adjusted prevailing world market price for upland
cotton shall be further adjusted on the basis of some or all of
the following data, as available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and
cotton export shipments.
(C) Other data determined by the Secretary to be
relevant in establishing an accurate prevailing world
market price for upland cotton (adjusted to United
States quality and location).
(3) Limitation on further adjustment.--The adjustment under
paragraph (2) may not exceed the difference between--
(A) the Friday through Thursday average price for
the lowest-priced United States growth as quoted for
Middling 1\3/32\-inch cotton delivered C.I.F. Northern
Europe; and
(B) the Northern Europe price.
SEC. 135. <<NOTE: 7 USC 7235.>> LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--Except as provided in
subsection (d), the Secretary may make loan deficiency payments
available to producers who, although eligible to obtain a marketing
assistance loan under section 131 with respect to a loan commodity,
agree to forgo obtaining the loan for the commodity in return for
payments under this section.
(b) Computation.--A loan deficiency payment under this section shall
be computed by multiplying--
(1) the loan payment rate determined under subsection (c)
for the loan commodity; by
(2) the quantity of the loan commodity that the producers on
a farm are eligible to place under loan but for which the
producers forgo obtaining the loan in return for payments under
this section.
(c) Loan Payment Rate.--For purposes of this section, the loan
payment rate shall be the amount by which--
(1) the loan rate established under section 132 for the loan
commodity; exceeds
(2) the rate at which a loan for the commodity may be repaid
under section 134.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
SEC. 136. <<NOTE: 7 USC 7236.>> SPECIAL MARKETING LOAN PROVISIONS FOR
UPLAND COTTON.
(a) Cotton User Marketing Certificates.--
(1) Issuance.--Subject to paragraph (4), during the period
ending July 31, 2003, the Secretary shall issue marketing
certificates or cash payments to domestic users and exporters
for documented purchases by domestic users and sales for
[[Page 110 STAT. 910]]
export by exporters made in the week following a consecutive 4-
week period in which--
(A) the Friday through Thursday average price
quotation for the lowest-priced United States growth, as
quoted for Middling (M) 1\3/32\-inch cotton, delivered
C.I.F. Northern Europe exceeds the Northern Europe price
by more than 1.25 cents per pound; and
(B) the prevailing world market price for upland
cotton (adjusted to United States quality and location)
does not exceed 130 percent of the loan rate for upland
cotton established under section 132.
(2) Value of certificates or payments.--The value of the
marketing certificates or cash payments shall be based on the
amount of the difference (reduced by 1.25 cents per pound) in
the prices during the 4th week of the consecutive 4-week period
multiplied by the quantity of upland cotton included in the
documented sales.
(3) Administration of marketing certificates.--
(A) Redemption, marketing, or exchange.--The
Secretary shall establish procedures for redeeming
marketing certificates for cash or marketing or exchange
of the certificates for agricultural commodities owned
by the Commodity Credit Corporation in such manner, and
at such price levels, as the Secretary determines will
best effectuate the purposes of cotton user marketing
certificates. Any price restrictions that would
otherwise apply to the disposition of agricultural
commodities by the Commodity Credit Corporation shall
not apply to the redemption of certificates under this
subsection.
(B) Designation of commodities and products.--To the
extent practicable, the Secretary shall permit owners of
certificates to designate the commodities and products,
including storage sites, the owners would prefer to
receive in exchange for certificates. If any certificate
is not presented for redemption, marketing, or exchange
within a reasonable number of days after the issuance of
the certificate (as determined by the Secretary),
reasonable costs of storage and other carrying charges,
as determined by the Secretary, shall be deducted from
the value of the certificate for the period beginning
after the reasonable number of days and ending with the
date of the presentation of the certificate to the
Commodity Credit Corporation.
(C) Transfers.--Marketing certificates issued to
domestic users and exporters of upland cotton may be
transferred to other persons in accordance with
regulations issued by the Secretary.
(4) Exception.--The Secretary shall not issue marketing
certificates or cash payments under paragraph (1) if, for the
immediately preceding consecutive 10-week period, the Friday
through Thursday average price quotation for the lowest priced
United States growth, as quoted for Middling (M) 1\3/32\-inch
cotton, delivered C.I.F. Northern Europe, adjusted for the value
of any certificate issued under this subsection, exceeds the
Northern Europe price by more than 1.25 cents per pound.
[[Page 110 STAT. 911]]
(5) Limitation on expenditures.--Total expenditures under
this subsection shall not exceed $701,000,000 during fiscal
years 1996 through 2002.
(b) Special Import Quota.--
(1) <<NOTE: President.>> Establishment.--The President shall
carry out an import quota program that provides that, during the
period ending July 31, 2003, whenever the Secretary determines
and announces that for any consecutive 10-week period, the
Friday through Thursday average price quotation for the lowest-
priced United States growth, as quoted for Middling (M) 1\3/32\-
inch cotton, delivered C.I.F. Northern Europe, adjusted for the
value of any certificates issued under subsection (a), exceeds
the Northern Europe price by more than 1.25 cents per pound,
there shall immediately be in effect a special import quota.
(2) Quantity.--The quota shall be equal to 1 week's
consumption of upland cotton by domestic mills at the seasonally
adjusted average rate of the most recent 3 months for which data
are available.
(3) Application.--The quota shall apply to upland cotton
purchased not later than 90 days after the date of the
Secretary's announcement under paragraph (1) and entered into
the United States not later than 180 days after the date.
(4) Overlap.--A special quota period may be established that
overlaps any existing quota period if required by paragraph (1),
except that a special quota period may not be established under
this subsection if a quota period has been established under
subsection (c).
(5) Preferential tariff treatment.--The quantity under a
special import quota shall be considered to be an in-quota
quantity for purposes of--
(A) section 213(d) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean Trade Preference Act
(19 U.S.C. 3203);
(C) section 503(d) of the Trade Act of 1974 (19
U.S.C. 2463(d)); and
(D) General Note 3(a)(iv) to the Harmonized Tariff
Schedule.
(6) Definition.--In this subsection, the term ``special
import quota'' means a quantity of imports that is not subject
to the over-quota tariff rate of a tariff-rate quota.
(c) Limited Global Import Quota for Upland Cotton.--
(1) <<NOTE: President.>> In general.--The President shall
carry out an import quota program that provides that whenever
the Secretary determines and announces that the average price of
the base quality of upland cotton, as determined by the
Secretary, in the designated spot markets for a month exceeded
130 percent of the average price of such quality of cotton in
the markets for the preceding 36 months, notwithstanding any
other provision of law, there shall immediately be in effect a
limited global import quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12
[[Page 110 STAT. 912]]
months, the quantity of the quota next established under
this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph
(A) or the quantity required to increase the supply to
130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using
the latest official data of the Bureau of the
Census, the Department of Agriculture, and the
Department of the Treasury--
(I) the carry-over of upland cotton
at the beginning of the marketing year
(adjusted to 480-pound bales) in which
the quota is established;
(II) production of the current crop;
and
(III) imports to the latest date
available during the marketing year.
(ii) Demand.--The term ``demand'' means--
(I) the average seasonally adjusted
annual rate of domestic mill consumption
during the most recent 3 months for
which data are available; and
(II) the larger of--
(aa) average exports of
upland cotton during the
preceding 6 marketing years; or
(bb) cumulative exports of
upland cotton plus outstanding
export sales for the marketing
year in which the quota is
established.
(iii) Limited global import quota.--The term
``limited global import quota'' means a quantity
of imports that is not subject to the over-quota
tariff rate of a tariff-rate quota.
(E) Quota entry period.--When a quota is established
under this subsection, cotton may be entered under the
quota during the 90-day period beginning on the date the
quota is established by the Secretary.
(2) No overlap.--Notwithstanding paragraph (1), a quota
period may not be established that overlaps an existing quota
period or a special quota period established under subsection
(b).
SEC. 137. <<NOTE: 7 USC 7237.>> AVAILABILITY OF RECOURSE LOANS FOR HIGH
MOISTURE FEED GRAINS AND SEED COTTON.
(a) High Moisture Feed Grains.--
(1) Recourse loans available.--For each of the 1996 through
2002 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the
[[Page 110 STAT. 913]]
Secretary, to producers on a farm containing eligible cropland
covered by a production flexibility contract who--
(A) normally harvest all or a portion of their crop
of corn or grain sorghum in a high moisture state;
(B) present--
(i) certified scale tickets from an inspected,
certified commercial scale, including a licensed
warehouse, feedlot, feed mill, distillery, or
other similar entity approved by the Secretary,
pursuant to regulations issued by the Secretary;
or
(ii) field or other physical measurements of
the standing or stored crop in regions of the
United States, as determined by the Secretary,
that do not have certified commercial scales from
which certified scale tickets may be obtained
within reasonable proximity of harvest operation;
(C) certify that they were the owners of the feed
grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in
fact harvested on the farm and delivered to, a feedlot,
feed mill, or commercial or on-farm high-moisture
storage facility, or to a facility maintained by the
users of corn and grain sorghum in a high moisture
state; and
(D) comply with deadlines established by the
Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection
within deadlines established by the Secretary.
(2) Eligibility of acquired feed grains.--A loan under this
subsection shall be made on a quantity of corn or grain sorghum
of the same crop acquired by the producer equivalent to a
quantity determined by multiplying--
(A) the acreage of the corn or grain sorghum in a
high moisture state harvested on the producer's farm; by
(B) the lower of the farm program payment yield or
the actual yield on a field, as determined by the
Secretary, that is similar to the field from which the
corn or grain sorghum was obtained.
(3) High moisture state defined.--In this subsection, the
term ``high moisture state'' means corn or grain sorghum having
a moisture content in excess of Commodity Credit Corporation
standards for marketing assistance loans made by the Secretary
under section 131.
(b) Recourse Loans Available for Seed Cotton.--
(1) Upland cotton.--For each of the 1996 through 2002 crops
of upland cotton, the Secretary shall make available recourse
seed cotton loans, as determined by the Secretary, to producers
on a farm containing eligible cropland covered by a production
flexibility contract.
(2) Extra long staple cotton.--For each of the 1996 through
2002 crops of extra long staple cotton, the Secretary shall make
available recourse seed cotton loans, as determined by the
Secretary, on any production.
(c) Repayment Rates.--Repayment of a recourse loan made under this
section shall be at the loan rate established for the commodity by the
Secretary, plus interest (as determined by the Secretary).
[[Page 110 STAT. 914]]
Subtitle D--Other Commodities
CHAPTER 1--DAIRY
SEC. 141. <<NOTE: 7 USC 7251.>> MILK PRICE SUPPORT PROGRAM.
(a) Support Activities.--The Secretary of Agriculture shall support
the price of milk produced in the 48 contiguous States through the
purchase of cheese, butter, and nonfat dry milk produced from the milk.
(b) Rate.--The price of milk shall be supported at the following
rates per hundredweight for milk containing 3.67 percent butterfat:
(1) During calendar year 1996, $10.35.
(2) During calendar year 1997, $10.20.
(3) During calendar year 1998, $10.05.
(4) During calendar year 1999, $9.90.
(c) Purchase Prices.--The support purchase prices under this section
for each of the products of milk (butter, cheese, and nonfat dry milk)
announced by the Secretary shall be the same for all of that product
sold by persons offering to sell the product to the Secretary. The
purchase prices shall be sufficient to enable plants of average
efficiency to pay producers, on average, a price that is not less than
the rate of price support for milk in effect under subsection (b).
(d) Special Rule for Butter and Nonfat Dry Milk Purchase Prices.--
(1) Allocation of purchase prices.--The Secretary may
allocate the rate of price support between the purchase prices
for nonfat dry milk and butter in a manner that will result in
the lowest level of expenditures by the Commodity Credit
Corporation or achieve such other objectives as the Secretary
considers appropriate. Not later than 10 days after making or
changing an allocation, the Secretary shall notify the Committee
on Agriculture of the House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the Senate of the
allocation. Section 553 of title 5, United States Code, shall
not apply with respect to the implementation of this section.
(2) Timing of purchase price adjustments.--The Secretary may
make any such adjustments in the purchase prices for nonfat dry
milk and butter the Secretary considers to be necessary not more
than twice in each calendar year.
(e) Refunds of 1995 and 1996 Assessments.--
(1) Refund required.--The Secretary shall provide for a
refund of the entire reduction required under section 204(h)(2)
of the Agricultural Act of 1949 (7 U.S.C. 1446e(h)(2)), as in
effect on the day before the amendment made by subsection (g),
in the price of milk received by a producer during calendar year
1995 or 1996, if the producer provides evidence that the
producer did not increase marketings in calendar year 1995 or
1996 when compared to calendar year 1994 or 1995, respectively.
(2) Exception.--This subsection shall not apply with respect
to a producer for a particular calendar year if the producer has
already received a refund under section 204(h) of the
Agricultural Act of 1949 for the same fiscal year before the
effective date of this section.
[[Page 110 STAT. 915]]
(3) Treatment of refund.--A refund under this subsection
shall not be considered as any type of price support or payment
for purposes of sections 1211 and 1221 of the Food Security Act
of 1985 (16 U.S.C. 3811 and 3821).
(f) Commodity Credit Corporation.--The Secretary shall carry out the
program authorized by this section through the Commodity Credit
Corporation.
(g) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the
first day of the first month beginning after the date of enactment of
this title, section 204 of the Agricultural Act of 1949 (7 U.S.C. 1446e)
is repealed.
(h) Period of Effectiveness.--This section (other than subsection
(g)) shall be effective only during the period beginning on the first
day of the first month beginning after the date of enactment of this
title and ending on December 31, 1999. The program authorized by this
section shall terminate on December 31, 1999, and shall be considered to
have expired notwithstanding section 257 of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).
SEC. 142. <<NOTE: 7 USC 7252.>> RECOURSE LOAN PROGRAM FOR COMMERCIAL
PROCESSORS OF DAIRY PRODUCTS.
(a) Recourse Loans Available.--Under such reasonable terms and
conditions as the Secretary may prescribe, the Secretary shall make
recourse loans available to commercial processors of eligible dairy
products to assist the processors to manage inventories of eligible
dairy products and assure a greater degree of price stability for the
dairy industry during the year. The Secretary shall use the funds,
facilities, and authorities of the Commodity Credit Corporation to carry
out this section.
(b) Amount of Loan.--The Secretary shall establish the amount of a
loan for eligible dairy products, which shall reflect a milk equivalent
value of $9.90 per hundredweight of milk containing 3.67 percent
butterfat. The rate of interest charged participants under this section
shall not be less than the rate of interest charged the Commodity Credit
Corporation by the United States Treasury.
(c) Period of Loan.--The original term of a recourse loan made under
this section may not extend beyond the end of the fiscal year in which
the loan is made. At the end of the fiscal year, the Secretary may
extend the loan for an additional period not to exceed the end of the
next fiscal year.
(d) Definition of Eligible Dairy Products.--In this section, the
term ``eligible dairy products'' means cheddar cheese, butter, and
nonfat dry milk.
(e) Effective Date.--This section shall be effective beginning
January 1, 2000.
SEC. 143. <<NOTE: 7 USC 7253.>> CONSOLIDATION AND REFORM OF FEDERAL MILK
MARKETING ORDERS.
(a) Amendment of Orders.--
(1) Required consolidation.--The Secretary shall amend
Federal milk marketing orders issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937,
to limit the number of Federal milk marketing orders to not less
than 10 and not more than 14 orders.
(2) Inclusion of california as separate order.--Upon the
petition and approval of California dairy producers in the
[[Page 110 STAT. 916]]
manner provided in section 8c of the Agricultural Adjustment Act
(7 U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, the Secretary shall designate
the State of California as a separate Federal milk marketing
order. The order covering California shall have the right to
reblend and distribute order receipts to recognize quota value.
(3) Related issues addressed in consolidation.--Among the
issues the Secretary is authorized to implement as part of the
consolidation of Federal milk marketing orders are the
following:
(A) The use of utilization rates and multiple basing
points for the pricing of fluid milk.
(B) The use of uniform multiple component pricing
when developing 1 or more basic formula prices for
manufacturing milk.
(4) Effect of existing law.--In implementing the
consolidation of Federal milk marketing orders and related
reforms under this subsection, the Secretary may not consider,
or base any decision on, the table contained in section 8c(5)(A)
of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(A)),
reenacted with amendments by the Agricultural Marketing
Agreement Act of 1937, as added by section 131 of the Food
Security Act of 1985.
(b) Expedited Process.--
(1) Use of informal rulemaking.--To implement the
consolidation of Federal milk marketing orders and related
reforms under subsection (a), the Secretary shall use the notice
and comment procedures provided in section 553 of title 5,
United States Code.
(2) Time limitations.--
(A) Proposed amendments.--The Secretary shall
announce the proposed amendments to be made under
subsection (a) not later than 2 years after the date of
enactment of this title.
(B) Final amendments.--The Secretary shall implement
the amendments not later than 3 years after the date of
enactment of this title.
(3) Effect of court order.--The actions authorized by this
subsection are intended to ensure the timely publication and
implementation of new and amended Federal milk marketing orders.
In the event that the Secretary is enjoined or otherwise
restrained by a court order from publishing or implementing the
consolidation and related reforms under subsection (a), the
length of time for which that injunction or other restraining
order is effective shall be added to the time limitations
specified in paragraph (2) thereby extending those time
limitations by a period of time equal to the period of time for
which the injunction or other restraining order is effective.
(c) Failure To Timely Consolidate Orders.--If the Secretary fails to
implement the consolidation required under subsection (a)(1) within the
time period required under subsection (b)(2)(B) (plus any additional
period provided under subsection (b)(3)), the Secretary may not assess
or collect assessments from milk producers or handlers under such
section 8c for marketing order administration and services provided
under such section after the end of
[[Page 110 STAT. 917]]
that period until the consolidation is completed. The Secretary may not
reduce the level of services provided under the section on account of
the prohibition against assessments, but shall rather cover the cost of
marketing order administration and services through funds available for
the Agricultural Marketing Service of the Department.
(d) Report Regarding Further Reforms.--
(1) Report required.--Not later than April 1, 1997, the
Secretary shall submit to Congress a report--
(A) reviewing the Federal milk marketing order
system established pursuant to section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement
Act of 1937, in light of the reforms required by
subsection (a);
(B) describing the efforts underway and the progress
made in implementing the reforms required by subsection
(a); and
(C) containing such recommendations as the Secretary
considers appropriate for further improvements and
reforms to the Federal milk marketing order system.
(2) Effect of other laws.--Any limitation imposed by Act of
Congress on the conduct or completion of reports to Congress
shall not apply to the report required under this section,
unless the limitation specifically refers to this section.
SEC. 144. <<NOTE: 7 USC 7254.>> EFFECT ON FLUID MILK STANDARDS IN STATE
OF CALIFORNIA.
Nothing in this Act or any other provision of law shall be construed
to preempt, prohibit, or otherwise limit the authority of the State of
California, directly or indirectly, to establish or continue to effect
any law, regulation, or requirement regarding--
(1) the percentage of milk solids or solids not fat in fluid
milk products sold at retail or marketed in the State of
California; or
(2) the labeling of such fluid milk products with regard to
milk solids or solids not fat.
SEC. 145. <<NOTE: 7 USC 7255.>> MILK MANUFACTURING MARKETING ADJUSTMENT.
(a) Maximum Allowances Established.--No State shall provide for a
manufacturing allowance for the processing of milk in excess of--
(1) $1.65 per hundredweight of milk for milk manufactured
into butter and nonfat dry milk; and
(2) $1.80 per hundredweight of milk for milk manufactured
into cheese.
(b) Manufacturing Allowance Defined.--In this section, the term
``manufacturing allowance'' means--
(1) the amount by which the product price value of butter
and nonfat dry milk manufactured from a hundred pounds of milk
containing 3.5 pounds of butterfat and 8.7 pounds of milk solids
not fat resulting from a State's yield and product price
formulas exceeds the class price for the milk used to produce
those products; or
(2) the amount by which the product price value of cheese
manufactured from a hundred pounds of milk containing 3.5 pounds
of butterfat and 8.7 pounds of milk solids not fat resulting
from a State's yield and product price formulas exceeds the
class price for the milk used to produce cheese.
[[Page 110 STAT. 918]]
(c) Effect of Violation.--If the Secretary determines following a
hearing that a State has in effect a manufacturing allowance that
exceeds the manufacturing allowance authorized in subsection (a), the
Secretary shall suspend purchases of cheddar cheese, butter, and nonfat
dry milk produced in that State until such time as the State complies
with such subsection.
(d) Effective Date; Implementation.--This section (other than
subsection (e)) shall be effective during the period beginning on the
first day of the first month beginning after the date of enactment of
this title and ending on December 31, 1999. During that period, the
Secretary may exercise the authority provided to the Secretary under
this section without regard to the issuance of regulations intended to
carry out this section.
(e) <<NOTE: Effective date.>> Conforming Repeal.--Effective on the
first day of the first month beginning after the date of enactment of
this title, section 102 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 1446e-1) is repealed.
SEC. 146. PROMOTION.
(a) Congressional Purpose.--Section 1999B(a) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
(1) by redesignating paragraphs (6), (7) and (8) as
paragraphs (7), (8) and (9), respectively; and
(2) by inserting after paragraph (5) the following:
``(6) the congressional purpose underlying this subtitle is
to maintain and expand markets for fluid milk products, not to
maintain or expand any processor's share of those markets and
that the subtitle does not prohibit or restrict individual
advertising or promotion of fluid milk products since the
programs created and funded by this subtitle are not extended to
replace individual advertising and promotion efforts;''.
(b) Congressional Policy.--Section 1999B(b) of the Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to read as follows:
``(b) Policy.--It is declared to be the policy of Congress that it
is in the public interest to authorize the establishment, through the
exercise of powers provided in this subtitle, of an orderly procedure
for developing, financing, through adequate assessments on fluid milk
products produced in the United States and carrying out an effective,
continuous, and coordinated program of promotion, research, and consumer
information designed to strengthen the position of the dairy industry in
the marketplace and maintain and expand domestic and foreign markets and
uses for fluid milk products, the purpose of which is not to compete
with or replace individual advertising or promotion efforts designed to
promote individual brand name or trade name fluid milk products, but
rather to maintain and expand the markets for all fluid milk products,
with the goal and purpose of this subtitle being a national governmental
goal that authorizes and funds programs that result in government speech
promoting government objectives.''.
(c) Research.--Section 1999C(6) of the Fluid Milk Promotion Act of
1990 (7 U.S.C. 6402(6)) is amended to read as follows:
``(6) Research.--The term `research' means market research
to support advertising and promotion efforts, including
educational activities, research directed to product
characteristics, product development, including new products or
improved
[[Page 110 STAT. 919]]
technology in production, manufacturing or processing of milk
and the products of milk.''.
(d) Voting.--
(1) Initial referenda.--Section 1999N(b)(2) of the Fluid
Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) is amended by
striking ``all processors'' and inserting ``fluid milk
processors voting in the referendum''.
(2) Suspension or termination.--Section 1999O(c) of such Act
(7 U.S.C. 6414(c)) is amended--
(A) in paragraph (1), by striking ``all processors''
and inserting ``fluid milk processors voting in the
preceding referendum''; and
(B) in paragraph (2)(B), by striking ``all
processors'' and inserting ``fluid milk processors
voting in the referendum''.
(e) Duration.--Section 1999O(a) of the Fluid Milk Promotion Act of
1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' and inserting
``2002''.
SEC. 147. <<NOTE: Congress. State listing. 7 USC 7256.>> NORTHEAST
INTERSTATE DAIRY COMPACT.
Congress hereby consents to the Northeast Interstate Dairy Compact
entered into among the States of Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont as specified in section 1(b) Senate
Joint Resolution 28 of the 104th Congress, as placed on the calendar of
the Senate, subject to the following conditions:
(1) Finding of compelling public interest.--Based upon a
finding by the Secretary of a compelling public interest in the
Compact region, the Secretary may grant the States that have
ratified the Northeast Interstate Dairy Compact, as of the date
of enactment of this title, the authority to implement the
Northeast Interstate Dairy Compact.
(2) Limitation on manufacturing price.--The Northeast
Interstate Dairy Compact Commission shall not regulate Class II,
Class III, or Class III-A milk used for manufacturing purposes
or any other milk, other than Class I (fluid) milk, as defined
by a Federal milk marketing order issued under section 8c of the
Agricultural Adjustment Act (7 U.S.C. 608c) reenacted with
amendments by the Agricultural Marketing Agreement Act of 1937.
(3) Duration.--Consent for the Northeast Interstate Dairy
Compact shall terminate concurrent with the Secretary's
implementation of the dairy pricing and Federal milk marketing
order consolidation and reforms under section 143.
(4) Additional states.--Delaware, New Jersey, New York,
Pennsylvania, Maryland, and Virginia are the only additional
States that may join the Northeast Interstate Dairy Compact,
individually or otherwise, if upon entry the State is contiguous
to a participating State and if Congress consents to the entry
of the State into the Compact after the date of enactment of
this title.
(5) Compensation of commodity credit corporation.--Before
the end of each fiscal year that a Compact price regulation is
in effect, the Northeast Interstate Dairy Compact Commission
shall compensate the Commodity Credit Corporation for the cost
of any purchases of milk and milk products by the Corporation
that result from the projected rate of
[[Page 110 STAT. 920]]
increase in milk production for the fiscal year within the
Compact region in excess of the projected national average rate
of the increase in milk production, as determined by the
Secretary.
(6) Milk marketing order administrator.--At the request of
the Northeast Interstate Dairy Compact Commission, the
Administrator of the applicable Federal milk marketing order
issued under section 8(c)5 of the Agricultural Adjustment Act (7
U.S.C. 608c), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, shall provide technical
assistance to the Compact Commission and be compensated for that
assistance.
(7) Further conditions.--The Northeast Interstate Dairy
Compact Commission shall not prohibit or in any way limit the
marketing in the Compact region of any milk or milk product
produced in any other production area in the United States. The
Compact Commission shall respect and abide by the ongoing
procedures between Federal milk marketing orders with respect to
the sharing of proceeds from sales within the Compact region of
bulk milk, packaged milk, or producer milk originating from
outside of the Compact region. The Compact Commission shall not
use compensatory payments under section 10(6) of the Compact as
a barrier to the entry of milk into the Compact region or for
any other purpose. Establishment of a Compact over-order price,
in itself, shall not be considered a compensatory payment or a
limitation or prohibition on the marketing of milk.
SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.
(a) Duration.--Section 153(a) of the Food Security Act of 1985 (15
U.S.C. 713a-14(a)) is amended by striking ``2001'' and inserting
``2002''.
(b) Sole Discretion.--Section 153(b) of the Food Security Act of
1985 (15 U.S.C. 713a-14(b)) is amended by inserting ``sole'' before
``discretion''.
(c) Elements of Program.--Section 153(c) of the Food Security Act of
1985 (15 U.S.C. 713a-14(c)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting a semicolon; and
(3) by adding at the end the following:
``(3) the maximum volume of dairy product exports allowable
consistent with the obligations of the United States as a member
of the World Trade Organization is exported under the program
each year (minus the volume sold under section 1163 of the Food
Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1731 note)
during that year), except to the extent that the export of such
a volume under the program would, in the judgment of the
Secretary, exceed the limitations on the value set forth in
subsection (f); and
``(4) payments may be made under the program for exports to
any destination in the world for the purpose of market
development, except a destination in a country with respect to
which shipments from the United States are otherwise restricted
by law.''.
(d) Market Development.--Section 153(e)(1) of the Food Security Act
of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
[[Page 110 STAT. 921]]
(1) by striking ``and'' and inserting ``the''; and
(2) by inserting before the period the following: ``, and
any additional amount that may be required to assist in the
development of world markets for United States dairy products''.
(e) Maximum Allowable Amounts.--Section 153 of the Food Security Act
of 1985 (15 U.S.C. 713a-14) is amended by adding at the end the
following:
``(f) Required Funding.--
``(1) In general.--Except as provided in paragraph (2), the
Commodity Credit Corporation shall in each year use money and
commodities for the program under this section in the maximum
amount consistent with the obligations of the United States as a
member of the World Trade Organization, minus the amount
expended under section 1163 of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1731 note) during that year.
``(2) Volume limitations.--The Commodity Credit Corporation
may not exceed the limitations specified in subsection (c)(3) on
the volume of allowable dairy product exports.''.
SEC. 149. <<NOTE: 7 USC 7257.>> AUTHORITY TO ASSIST IN ESTABLISHMENT AND
MAINTENANCE OF ONE OR MORE EXPORT TRADING COMPANIES.
The Secretary of Agriculture shall, consistent with the obligations
of the United States as a member of the World Trade Organization,
provide such advice and assistance to the United States dairy industry
as may be necessary to enable that industry to establish and maintain
one or more export trading companies under the Export Trading Company
Act of 1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the
international market development for and exportation of dairy products
produced in the United States.
SEC. 150. <<NOTE: 7 USC 7258.>> STANDBY AUTHORITY TO INDICATE ENTITY
BEST SUITED TO PROVIDE INTERNATIONAL MARKET DEVELOPMENT AND
EXPORT SERVICES.
(a) Indication of Entity Best Suited To Assist International Market
Development for and Export of United States Dairy Products.--The
Secretary of Agriculture shall indicate which entity or entities
autonomous of the Government of the United States, which seeks such a
designation, is best suited to facilitate the international market
development for and exportation of United States dairy products, if the
Secretary determines that--
(1) the United States dairy industry has not established an
export trading company under the Export Trading Company Act of
1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating
the international market development for an exportation of dairy
products produced in the United States on or before June 30,
1997; or
(2) the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1998 does not
exceed the quantity of exports of United States dairy products
during the 12-month period preceding July 1, 1997 by 1.5 billion
pounds (milk equivalent, total solids basis).
(b) Funding of Export Activities.--The Secretary shall assist the
entity or entities identified under subsection (a) in identifying
[[Page 110 STAT. 922]]
sources of funding for the activities specified in subsection (a) from
within the dairy industry and elsewhere.
(c) Application of Section.--This section shall apply only during
the period beginning on July 1, 1997 and ending on September 30, 2000.
SEC. 151. <<NOTE: 7 USC 7259.>> STUDY AND REPORT REGARDING POTENTIAL
IMPACT OF URUGUAY ROUND ON PRICES, INCOME, AND GOVERNMENT
PURCHASES.
(a) Study.--The Secretary of Agriculture shall conduct a study, on a
variety by variety of cheese basis, to determine the potential impact on
milk prices in the United States, dairy producer income, and Federal
dairy program costs, of the allocation of additional cheese granted
access to the United States as a result of the obligations of the United
States as a member of the World Trade Organization.
(b) Report.--Not later than June 30, 1997, the Secretary shall
report to the Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Agriculture of the House of Representatives
the results of the study conducted under this section.
(c) Rule of Construction.--Any limitation imposed by Act of Congress
on the conduct or completion of studies or reports to Congress shall not
apply to the study and report required under this section, unless the
limitation specifically refers to this section.
SEC. 152. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL
MARKETS THROUGH DAIRY PROMOTION PROGRAM.
Section 113(e) of the Dairy Production Stabilization Act of 1983 (7
U.S.C. 4504(e)) is amended by adding at the end the following new
sentence: ``For each of fiscal years 1997 through 2001, the Board's
budget may provide for the expenditure of revenues available to the
Board to develop international markets for, and to promote within such
markets, the consumption of dairy products produced in the United States
from milk produced in the United States.''.
CHAPTER 2--PEANUTS AND SUGAR
SEC. 155. <<NOTE: 7 USC 7271.>> PEANUT PROGRAM.
(a) Quota Peanuts.--
(1) Availability of loans.--The Secretary shall make
nonrecourse loans available to producers of quota peanuts.
(2) Loan rate.--The national average quota loan rate for
quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage.--The loan amount may
not be reduced by the Secretary by any deductions for
inspection, handling, or storage.
(4) Location and other factors.--The Secretary may make
adjustments in the loan rate for quota peanuts for location of
peanuts and such other factors as are authorized by section 162.
(5) Offers from handlers.--If a producer markets a quota
peanut crop, meeting quality requirements for domestic edible
use, through the marketing association loan for two consecutive
marketing years and the Secretary determines that a handler
provided the producer with a written offer, upon delivery, for
[[Page 110 STAT. 923]]
the purchase of the quota peanut crops at a price equal to or in
excess of the quota support price, the producer shall be
ineligible for quota price support for the next marketing year.
The Secretary shall establish the method by which a producer may
appeal a determination under this paragraph regarding
ineligibility for quota price support.
(b) Additional Peanuts.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make nonrecourse loans available to producers of
additional peanuts at such rates as the Secretary finds
appropriate, taking into consideration the demand for peanut oil
and peanut meal, expected prices of other vegetable oils and
protein meals, and the demand for peanuts in foreign markets.
(2) Limitation.--The Secretary shall establish the support
rate on additional peanuts at a level estimated by the Secretary
to ensure that there are no losses to the Commodity Credit
Corporation on the sale or disposal of the peanuts.
(3) Announcement.--The Secretary shall announce the loan
rate for additional peanuts of each crop not later than February
15 preceding the marketing year for the crop for which the loan
rate is being determined.
(c) Area Marketing Associations.--
(1) Warehouse storage loans.--
(A) In general.--In carrying out subsections (a) and
(b), the Secretary shall make warehouse storage loans
available in each of the producing areas (described in
section 1446.95 of title 7 of the Code of Federal
Regulations (January 1, 1989)) to a designated area
marketing association of peanut producers that is
selected and approved by the Secretary and that is
operated primarily for the purpose of conducting the
loan activities. The Secretary may not make warehouse
storage loans available to any cooperative that is
engaged in operations or activities concerning peanuts
other than those operations and activities specified in
this section and section 358e of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1359a).
(B) Administrative and supervisory activities.--An
area marketing association shall be used in
administrative and supervisory activities relating to
loans and marketing activities under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) Association costs.--Loans made to the
association under this paragraph shall include such
costs as the area marketing association reasonably may
incur in carrying out the responsibilities, operations,
and activities of the association under this section and
section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(2) Pools for quota and additional peanuts.--
(A) <<NOTE: Records. New Mexico.>> In general.--The
Secretary shall require that each area marketing
association establish pools and maintain complete and
accurate records by area and segregation for quota
peanuts handled under loan and for additional peanuts
placed under loan, except that separate pools shall be
established for Valencia peanuts produced in New Mexico.
(B) Eligibility to participate in new mexico
pools.--
[[Page 110 STAT. 924]]
(i) In general.--Except as provided in clause
(ii), in the case of the 1996 and subsequent
crops, Valencia peanuts not physically produced in
the State of New Mexico shall not be eligible to
participate in the pools of the State.
(ii) Exception.--A producer of Valencia
peanuts may enter Valencia peanuts that are
produced in Texas into the pools of New Mexico in
a quantity not greater than the average annual
quantity of the peanuts that the producer entered
into the New Mexico pools for the 1990 through
1995 crops.
(C) Types of peanuts.--Bright hull and dark hull
Valencia peanuts shall be considered as separate types
for the purpose of establishing the pools.
(D) Net gains.--Net gains on peanuts in each pool,
unless otherwise approved by the Secretary, shall be
distributed only to producers who placed peanuts in the
pool and shall be distributed in proportion to the value
of the peanuts placed in the pool by each producer. Net
gains for peanuts in each pool shall consist of the
following:
(i) Quota peanuts.--For quota peanuts, the net
gains over and above the loan indebtedness and
other costs or losses incurred on peanuts placed
in the pool.
(ii) Additional peanuts.--For additional
peanuts, the net gains over and above the loan
indebtedness and other costs or losses incurred on
peanuts placed in the pool for additional peanuts.
(d) Losses.--Losses in quota area pools shall be covered using the
following sources in the following order of priority:
(1) Transfers from additional loan pools.--The proceeds due
any producer from any pool shall be reduced by the amount of any
loss that is incurred with respect to peanuts transferred from
an additional loan pool to a quota loan pool by the producer
under section 358-1(b)(8) of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1358-1(b)(8)).
(2) Producers in same pool.--Further losses in an area quota
pool shall be offset by reducing the gain of any producer in the
pool by the amount of pool gains attributed to the same producer
from the sale of additional peanuts for domestic and edible
export use.
(3) Offset within area.--Further losses in an area quota
pool shall be offset by any gains or profits from additional
peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) owned or controlled by the Commodity Credit Corporation
in that area and sold for domestic edible use, in accordance
with regulations issued by the Secretary. This paragraph shall
not apply to profits or gains from a farm with 1 acre or less of
peanut production.
(4) First use of marketing assessments.--The Secretary shall
use funds collected under subsection (g) (except funds
attributable to handlers) to offset further losses in area quota
pools. The Secretary shall transfer to the Treasury those funds
collected under subsection (g) and available for use under this
paragraph that the Secretary determines are not required to
cover losses in area quota pools.
[[Page 110 STAT. 925]]
(5) <<NOTE: Regulations.>> Cross compliance.--Further losses
in area quota pools, other than losses incurred as a result of
transfers from additional loan pools to quota loan pools under
section 358-1(b)(8) of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1358-1(b)(8)), shall be offset by any gains or profits
from quota pools in other production areas (other than separate
type pools established under subsection (c)(2)(A) for Valencia
peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe.
(6) Offset generally.--If losses in an area quota pool have
not been entirely offset under the preceding paragraphs, further
losses shall be offset by any gains or profits from additional
peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New
Mexico) owned or controlled by the Commodity Credit Corporation
and sold for domestic edible use, in accordance with regulati