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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 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.
(7) Second use of marketing assessments.--The Secretary
shall use funds collected under subsection (g) and 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.
(8) Increased assessments.--If use of the authorities
provided in the preceding paragraphs is not sufficient to cover
losses in an area quota pool, the Secretary shall increase the
marketing assessment for producers established under subsection
(g) by such an amount as the Secretary considers necessary to
cover the losses. The increased assessment shall apply only to
quota peanuts in the production area covered by the pool.
Amounts collected under subsection (g) as a result of the
increased assessment shall be retained by the Secretary to cover
losses in that pool.
(e) Disapproval of Quotas.--Notwithstanding any other provision of
law, no loan for quota peanuts may be made available by the Secretary
for any crop of peanuts with respect to which poundage quotas have been
disapproved by producers, as provided for in section 358-1(d) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(d)).
(f) Quality Improvement.--
(1) In general.--With respect to peanuts under loan, the
Secretary shall--
(A) promote the crushing of peanuts at a greater
risk of deterioration before peanuts of a lesser risk of
deterioration;
(B) ensure that all Commodity Credit Corporation
inventories of peanuts sold for domestic edible use must
be shown to have been officially inspected by licensed
Department inspectors both as farmer stock and shelled
or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut
program so as to improve the quality of domestic peanuts
and ensure the coordination of activities under the
Peanut Administrative Committee established under
Marketing Agreement
[[Page 110 STAT. 926]]
No. 146, regulating the quality of domestically produced
peanuts (under the Agricultural Adjustment Act (7 U.S.C.
601 et seq.), reenacted with amendments by the
Agricultural Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut
program as a result of this subsection requiring
additional production or handling at the farm level
shall be reflected as an upward adjustment in the
Department loan schedule.
(2) Exports and other peanuts.--The Secretary shall require
that all peanuts in the domestic and export markets fully comply
with all quality standards under Marketing Agreement No. 146.
(g) Marketing Assessment.--
(1) In general.--The Secretary shall provide for a
nonrefundable marketing assessment. The assessment shall be made
on a per pound basis in an amount equal to 1.1 percent for each
of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and
1.2 percent for each of the 1997 through 2002 crops, of the
national average quota or additional peanut loan rate for the
applicable crop.
(2) First purchasers.--
(A) In general.--Except as provided under paragraphs
(3) and (4), the first purchaser of peanuts shall--
(i) collect from the producer a marketing
assessment equal to the quantity of peanuts
acquired multiplied by--
(I) in the case of each of the 1994
and 1995 crops, .55 percent of the
applicable national average loan rate;
(II) in the case of the 1996 crop,
.6 percent of the applicable national
average loan rate; and
(III) in the case of each of the
1997 through 2002 crops, .65 percent of
the applicable national average loan
rate;
(ii) pay, in addition to the amount collected
under clause (i), a marketing assessment in an
amount equal to the quantity of peanuts acquired
multiplied by .55 percent of the applicable
national average loan rate; and
(iii) remit the amounts required under clauses
(i) and (ii) to the Commodity Credit Corporation
in a manner specified by the Secretary.
(B) Definition of first purchaser.--In this
subsection, the term ``first purchaser'' means a person
acquiring peanuts from a producer except that in the
case of peanuts forfeited by a producer to the Commodity
Credit Corporation, the term means the person acquiring
the peanuts from the Commodity Credit Corporation.
(3) Other private marketings.--In the case of a private
marketing by a producer directly to a consumer through a retail
or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer
shall be responsible for the full amount of the assessment and
shall remit the assessment by such time as is specified by the
Secretary.
(4) Loan peanuts.--In the case of peanuts that are pledged
as collateral for a loan made under this section, the producer
[[Page 110 STAT. 927]]
portion of the assessment shall be deducted from the proceeds of
the loan. The remainder of the assessment shall be paid by the
first purchaser of the peanuts. For purposes of computing net
gains on peanuts under this section, the reduction in loan
proceeds shall be treated as having been paid to the producer.
(5) Penalties.--If any person fails to collect or remit the
reduction required by this subsection or fails to comply with
the requirements for recordkeeping or otherwise as are required
by the Secretary to carry out this subsection, the person shall
be liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of peanuts involved in the
violation; by
(B) the national average quota peanut rate for the
applicable crop year.
(6) Enforcement.--The Secretary may enforce this subsection
in the courts of the United States.
(h) <<NOTE: Effective date.>> Crops.--Subsections (a) through (g)
shall be effective only for the 1996 through 2002 crops of peanuts.
(i) Poundage Quotas.--
(1) In general.--Part VI of subtitle B of title III of the
Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1 (7 U.S.C. 1358-1)--
(i) in the section heading, by striking ``1991
through 1997 crops of'';
(ii) in subsections (a)(1), (b)(1)(B),
(b)(2)(A), (b)(2)(C), and (b)(3)(A), by striking
``of the 1991 through 1997 marketing years'' each
place it appears and inserting ``marketing year'';
(iii) in subsection (a)(3), by striking
``1990'' and inserting ``1990, for the 1991
through 1995 marketing years, and 1995, for the
1996 through 2002 marketing years'';
(iv) in subsection (b)(1)(A)--
(I) by striking ``each of the 1991
through 1997 marketing years'' and
inserting ``each marketing year''; and
(II) in clause (i), by inserting
before the semicolon the following: ``,
in the case of the 1991 through 1995
marketing years, and the 1995 marketing
year, in the case of the 1996 through
2002 marketing years'';
(v) in subsection (b)(1), by adding at the end
the following:
``(D) <<NOTE: Effective date.>> Certain farms
ineligible for quota.--Effective beginning with the 1998
crop, the Secretary shall not establish a farm poundage
quota under subparagraph (A) for a farm owned or
controlled by--
``(i) a municipality, airport authority,
school, college, refuge, or other public entity
(other than a university used for research
purposes); or
``(ii) a person who is not a producer and
resides in another State.'';
(vi) in subsection (b)(2), by adding at the
end the following:
``(E) Transfer of quota from ineligible farms.--Any
farm poundage quota held at the end of the 1996
[[Page 110 STAT. 928]]
marketing year by a farm described in paragraph (1)(D)
shall be allocated to other farms in the same State on
such basis as the Secretary may by regulation
prescribe.''; and
(vii) in subsection (f), by striking ``1997''
and inserting ``2002'';
(B) in section 358b (7 U.S.C. 1358b)--
(i) in the section heading, by striking ``1991
through 1995 crops of''; and
(ii) in subsection (c), by striking ``1995''
and inserting ``2002'';
(C) in section 358c(d) (7 U.S.C. 1358c(d)), by
striking ``1995'' and inserting ``2002''; and
(D) in section 358e (7 U.S.C. 1359a)--
(i) in the section heading, by striking ``for
1991 through 1997 crops of peanuts''; and
(ii) in subsection (i), by striking ``1997''
and inserting ``2002''.
(2) Elimination of quota floor.--Section 358-1(a)(1) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(a)(1)) is
amended by striking the second sentence.
(3) Temporary quota allocation.--Section 358-1 of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is
amended--
(A) in subsection (a)(1), by striking ``domestic
edible, seed,'' and inserting ``domestic edible use
(except seed)''; and
(B) in subsection (b)(2)--
(i) in subparagraph (A), by striking
``subparagraph (B) and subject to''; and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Temporary quota allocation.--
``(i) Allocation related to seed peanuts.--
Temporary allocation of quota pounds for the
marketing year only in which the crop is planted
shall be made to producers for each of the 1996
through 2002 marketing years as provided in this
subparagraph.
``(ii) Quantity.--The temporary quota
allocation shall be equal to the pounds of seed
peanuts planted on the farm, as may be adjusted
and determined under regulations prescribed by the
Secretary.
``(iii) Additional quota.--The temporary
allocation of quota pounds under this paragraph
shall be in addition to the farm poundage quota
otherwise established under this subsection and
shall be credited, for the applicable marketing
year only, in total, to the producer of the
peanuts on the farm in a manner prescribed by the
Secretary.
``(iv) Effect of other requirements.--Nothing
in this section alters or changes the requirements
regarding the use of quota and additional peanuts
established by section 358e(b).''.
(4) Undermarketings.--Part VI of subtitle B of title III of
the Agricultural Adjustment Act of 1938 is amended--
(A) in section 358-1(b) (7 U.S.C. 1358-1(b))--
[[Page 110 STAT. 929]]
(i) in paragraph (1)(B), by striking ``includ-
ing--'' and clauses (i) and (ii) and inserting
``including any increases resulting from the
allocation of quotas voluntarily released for 1
year under paragraph (7).'';
(ii) in paragraph (3)(B), by striking
``include--'' and clauses (i) and (ii) and
inserting ``include any increase resulting from
the allocation of quotas voluntarily released for
1 year under paragraph (7).''; and
(iii) by striking paragraphs (8) and (9); and
(B) in section 358b(a) (7 U.S.C. 1358b(a))--
(i) in paragraph (2), by striking ``(including
any applicable under marketings)''; and
(ii) in paragraph (3), by striking
``(including any applicable undermarketings)''.
(5) Disaster transfers.--Section 358-1(b) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)), as
amended by paragraph (4)(A)(iii), is amended by adding at the
end the following:
``(8) Disaster transfers.--
``(A) <<NOTE: Regulations.>> In general.--Except as
provided in subparagraph (B), additional peanuts
produced on a farm from which the quota poundage was not
harvested and marketed because of drought, flood, or any
other natural disaster, or any other condition beyond
the control of the producer, may be transferred to the
quota loan pool for pricing purposes on such basis as
the Secretary shall by regulation provide.
``(B) Limitation.--The poundage of peanuts
transferred under subparagraph (A) shall not exceed the
difference between--
``(i) the total quantity of peanuts meeting
quality requirements for domestic edible use, as
determined by the Secretary, marketed from the
farm; and
``(ii) the total farm poundage quota,
excluding quota pounds transferred to the farm in
the fall.
``(C) Support rate.--Peanuts transferred under this
paragraph shall be supported at 70 percent of the quota
support rate for the marketing years in which the
transfers occur. The transfers for a farm shall not
exceed 25 percent of the total farm quota pounds,
excluding pounds transferred in the fall.''.
(6) Sale or lease.--Section 358b(a) of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 1358b(a)) is amended--
(A) by striking paragraph (1) and inserting the
following:
``(1) Sale and lease authority.--
``(A) Sale or lease within same state.--Subject to
subparagraph (B) and such terms and conditions as the
Secretary may prescribe, the owner, or operator with the
permission of the owner, of a farm in a State for which
a farm poundage quota has been established may sell or
lease all or any part of the poundage quota to any other
owner or operator of a farm within the same State for
transfer to the farm. However, any such lease of
poundage quota may be entered into in the fall or after
the normal planting season--
[[Page 110 STAT. 930]]
``(i) if not less than 90 percent of the basic
quota (the farm quota and temporary quota
transfers), plus any poundage quota transferred to
the farm under this subsection, has been planted
or considered planted on the farm from which the
quota is to be leased; and
``(ii) under such terms and conditions as the
Secretary may by regulation prescribe.
``In the case of a fall transfer or a transfer after the
normal planting season by a cash lessee, the landowner
shall not be required to sign the transfer
authorization. A fall transfer or a transfer after the
normal planting season may be made not later than 72
hours after the peanuts that are the subject of the
transfer are inspected and graded.
``(B) Percentage limitations on spring transfers.--
Spring transfers under subparagraph (A) by sale or lease
of a quota for farms in a county to any owner or
operator of a farm outside the county within the same
State shall not exceed the applicable percentage
specified in this subparagraph of the quotas of all
farms in the originating county (as of January 1, 1996)
for the crop year in which the transfer is made, plus
the total amount of quotas eligible for transfer from
the originating county in the preceding crop year that
were not transferred in that year or that were
transferred through an expired lease. However, not more
than an aggregate of 40 percent of the total poundage
quota within a county (as of January 1, 1996) may be
transferred outside of the county. Cumulative unexpired
transfers outside of a county may not exceed for a crop
year the following:
``(i) For the 1996 crop, 15 percent.
``(ii) For the 1997 crop, 25 percent.
``(iii) For the 1998 crop, 30 percent.
``(iv) For the 1999 crop, 35 percent.
``(v) For the 2000 and subsequent crops, not
more than an aggregate of 40 percent of the total
poundage quota within the county as of January 1,
1996.
``(C) Clarification regarding fall transfers.--The
limitation in subparagraph (B) does not apply to 1-year
fall transfers, which in all cases may be made to any
farm in the same State.
``(D) Effect of transfer.--Any farm poundage quota
transferred under this paragraph shall not result in any
reduction in the farm poundage quota for the
transferring farm if the transferred quota is produced
or considered produced on the receiving farm.''; and
(B) by adding at the end the following:
``(4) Transfers in counties with small quotas.--
Notwithstanding paragraphs (1) and (2), in the case of any
county in a State for which the poundage quota allocated to the
county was less than 100,000 pounds for the preceding year's
crop, all or any part of a farm poundage quota may be
transferred by sale or lease or otherwise from a farm in the
county to a farm in another county in the same State.''.
[[Page 110 STAT. 931]]
SEC. 156. <<NOTE: 7 USC 7272.>> SUGAR PROGRAM.
(a) Sugarcane.--The Secretary shall make loans available to
processors of domestically grown sugarcane at a rate equal to 18 cents
per pound for raw cane sugar.
(b) Sugar Beets.--The Secretary shall make loans available to
processors of domestically grown sugar beets at a rate equal to 22.9
cents per pound for refined beet sugar.
(c) Reduction in Loan Rates.--
(1) Reduction required.--The Secretary shall reduce the loan
rate specified in subsection (a) for domestically grown
sugarcane and subsection (b) for domestically grown sugar beets
if the Secretary determines that negotiated reductions in export
subsidies and domestic subsidies provided for sugar of other
major sugar growing, producing, and exporting countries in the
aggregate exceed the commitments made as part of the Agreement
on Agriculture.
(2) Extent of reduction.--The Secretary shall not reduce the
loan rate under subsection (a) or (b) below a rate that provides
an equal measure of support to that provided by other major
sugar growing, producing, and exporting countries, based on an
examination of both domestic and export subsidies subject to
reduction in the Agreement on Agriculture.
(3) Announcement of reduction.--The Secretary shall announce
any loan rate reduction to be made under this subsection as far
in advance as is practicable.
(4) Definitions.--In this subsection:
(A) Agreement on agriculture.--The term ``Agreement
on Agriculture'' means the Agreement on Agriculture
referred to in section 101(d)(2) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(2)).
(B) Major sugar countries.--The term ``major sugar
growing, producing, and exporting countries'' means--
(i) the countries of the European Union; and
(ii) the 10 foreign countries not covered by
subparagraph (A) that the Secretary determines
produce the greatest quantity of sugar.
(d) Term of Loans.--
(1) In general.--A loan under this section during any fiscal
year shall be made available not earlier than the beginning of
the fiscal year and shall mature at the earlier of--
(A) the end of the 9-month period beginning on the
first day of the first month after the month in which
the loan is made; or
(B) the end of the fiscal year in which the loan is
made.
(2) Supplemental loans.--In the case of a loan made under
this section in the last 3 months of a fiscal year, the
processor may repledge the sugar as collateral for a second loan
in the subsequent fiscal year, except that the second loan
shall--
(A) be made at the loan rate in effect at the time
the second loan is made; and
(B) mature in 9 months less the quantity of time
that the first loan was in effect.
(e) Loan Type; Processor Assurances.--
[[Page 110 STAT. 932]]
(1) Recourse loans.--Subject to paragraph (2), the Secretary
shall carry out this section through the use of recourse loans.
(2) Nonrecourse loans.--During any fiscal year in which the
tariff rate quota for imports of sugar into the United States is
established at, or is increased to, a level in excess of
1,500,000 short tons raw value, the Secretary shall carry out
this section by making available nonrecourse loans. Any recourse
loan previously made available by the Secretary under this
section during the fiscal year shall be changed by the Secretary
into a nonrecourse loan.
(3) Processor assurances.--If the Secretary is required
under paragraph (2) to make nonrecourse loans available during a
fiscal year or to change recourse loans into nonrecourse loans,
the Secretary shall obtain from each processor that receives a
loan under this section such assurances as the Secretary
considers adequate to ensure that the processor will provide
payments to producers that are proportional to the value of the
loan received by the processor for sugar beets and sugarcane
delivered by producers served by the processor. The Secretary
may establish appropriate minimum payments for purposes of this
paragraph.
(f) Marketing Assessment.--
(1) <<NOTE: Effective date.>> Sugarcane.--Effective for
marketings of raw cane sugar during the 1996 through 2003 fiscal
years, the first processor of sugarcane shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1 percent of the loan rate established under
subsection (a) per pound of raw cane sugar, processed by
the processor from domestically produced sugarcane or
sugarcane molasses, that has been marketed (including
the transfer or delivery of the sugar to a refinery for
further processing or marketing); and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.375 percent of the loan rate
established under subsection (a) per pound of raw cane
sugar, processed by the processor from domestically
produced sugarcane or sugarcane molasses, that has been
marketed (including the transfer or delivery of the
sugar to a refinery for further processing or
marketing).
(2) <<NOTE: Effective date.>> Sugar beets.--Effective for
marketings of beet sugar during the 1996 through 2003 fiscal
years, the first processor of sugar beets shall remit to the
Commodity Credit Corporation a nonrefundable marketing
assessment in an amount equal to--
(A) in the case of marketings during fiscal year
1996, 1.1794 percent of the loan rate established under
subsection (a) per pound of beet sugar, processed by the
processor from domestically produced sugar beets or
sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal
years 1997 through 2003, 1.47425 percent of the loan
rate established under subsection (a) per pound of beet
sugar, processed by the processor from domestically
produced
[[Page 110 STAT. 933]]
sugar beets or sugar beet molasses, that has been
marketed.
(3) Collection.--
(A) Timing.--A marketing assessment required under
this subsection shall be collected on a monthly basis
and shall be remitted to the Commodity Credit
Corporation not later than 30 days after the end of each
month. Any cane sugar or beet sugar processed during a
fiscal year that has not been marketed by September 30
of the year shall be subject to assessment on that date.
The sugar shall not be subject to a second assessment at
the time that it is marketed.
(B) Manner.--Subject to subparagraph (A), marketing
assessments shall be collected under this subsection in
the manner prescribed by the Secretary and shall be
nonrefundable.
(4) Penalties.--If any person fails to remit the assessment
required by this subsection or fails to comply with such
requirements for recordkeeping or otherwise as are required by
the Secretary to carry out this subsection, the person shall be
liable to the Secretary for a civil penalty up to an amount
determined by multiplying--
(A) the quantity of cane sugar or beet sugar
involved in the violation; by
(B) the loan rate for the applicable crop of
sugarcane or sugar beets.
(5) Enforcement.--The Secretary may enforce this subsection
in a court of the United States.
(g) Forfeiture Penalty.--
(1) In general.--A penalty shall be assessed on the
forfeiture of any sugar pledged as collateral for a nonrecourse
loan under this section.
(2) Cane sugar.--The penalty for cane sugar shall be 1 cent
per pound.
(3) Beet sugar.--The penalty for beet sugar shall bear the
same relation to the penalty for cane sugar as the marketing
assessment for sugar beets bears to the marketing assessment for
sugarcane.
(4) Effect of forfeiture.--Any payments owed producers by a
processor that forfeits any sugar pledged as collateral for a
nonrecourse loan shall be reduced in proportion to the loan
forfeiture penalty incurred by the processor.
(h) Information Reporting.--
(1) Duty of processors and refiners to report.--A sugarcane
processor, cane sugar refiner, and sugar beet processor shall
furnish the Secretary, on a monthly basis, such information as
the Secretary may require to administer sugar programs,
including the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution, and stock
levels of sugar.
(2) Penalty.--Any person willfully failing or refusing to
furnish the information, or furnishing willfully any false
information, shall be subject to a civil penalty of not more
than $10,000 for each such violation.
(3) Monthly reports.--Taking into consideration the
information received under paragraph (1), the Secretary shall
[[Page 110 STAT. 934]]
publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
(i) Crops.--This section (other than subsection (f)) shall be
effective only for the 1996 through 2002 crops of sugar beets and
sugarcane.
Subtitle E--Administration
SEC. 161. <<NOTE: 7 USC 7281.>> ADMINISTRATION.
(a) Use of Commodity Credit Corporation.--The Secretary shall carry
out this title through the Commodity Credit Corporation.
(b) Limitation on Expenditure of Commodity Credit Corporation
Funds.--
(1) General powers and responsibilities.--Section 4 of the
Commodity Credit Corporation Charter Act (15 U.S.C. 714b) is
amended--
(A) in the first sentence of subsection (g), by
inserting before the period the following: ``, except
that obligations under all such contracts or agreements
(other than reimbursable agreements under section 11)
for equipment or services relating to automated data
processing, information technologies, or related items
(including telecommunications equipment and computer
hardware and software) may not exceed $170,000,000 in
fiscal year 1996 and not more than $275,000,000 in the
6-fiscal year period beginning on October 1, 1996,
unless additional amounts for such contracts and
agreements are provided in advance in appropriation
Acts''; and
(B) in subsection (h), by striking ``shall have
power to acquire personal property necessary to the
conduct of its business but''.
(2) Reimbursable agreements.--Section 11 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714i) is amended by
adding at the end the following: ``After September 30, 1996, the
total amount of all allotments and fund transfers from the
Corporation under this section (including allotments and
transfers for automated data processing or information resource
management activities) for a fiscal year may not exceed the
total amount of the allotments and transfers made under this
section in fiscal year 1995.''.
(3) Reporting requirements.--Section 13 of the Commodity
Credit Corporation Charter Act (15 U.S.C. 714k) is amended by
adding at the end the following: ``In addition to the annual
report, the Corporation shall submit to Congress on a quarterly
basis an itemized report of all expenditures over $10,000 made
under section 5 or 11 during the period covered by the report,
including expenditures in the form of allotments or fund
transfers to other agencies and departments of the Federal
Government.''.
(c) Determinations by Secretary.--A determination made by the
Secretary under this title shall be final and conclusive.
(d) Regulations.--Not later than 90 days after the date of enactment
of this title, the Secretary and the Commodity Credit Corporation, as
appropriate, shall issue such regulations as are necessary to implement
this title. The issuance of the regulations shall be made without regard
to--
[[Page 110 STAT. 935]]
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices
of proposed rulemaking and public participation in rulemaking;
and
(3) chapter 35 of title 44, United States Code (commonly
know as the ``Paperwork Reduction Act'').
SEC. 162. <<NOTE: 7 USC 7282.>> ADJUSTMENTS OF LOANS.
(a) Adjustment Authority.--The Secretary may make appropriate
adjustments in the loan rates for any commodity for differences in
grade, type, quality, location, and other factors.
(b) Manner of Adjustment.--The adjustments under the authority of
this section shall, to the maximum extent practicable, be made in such
manner that the average loan level for the commodity will, on the basis
of the anticipated incidence of the factors, be equal to the level of
support determined as provided in this title.
(c) Adjustment on County Basis.--The Secretary may establish loan
rates for a crop for producers in individual counties in a manner that
results in the lowest such rate being 95 percent of the national average
loan rate, except that such action shall not result in an increase in
outlays. Adjustments under this subsection shall not result in an
increase in the national average loan rate for any year.
SEC. 163. <<NOTE: 7 USC 7283.>> COMMODITY CREDIT CORPORATION INTEREST
RATE.
Notwithstanding any other provision of law, the monthly Commodity
Credit Corporation interest rate applicable to loans provided for
agricultural commodities by the Corporation shall be 100 basis points
greater than the rate determined under the applicable interest rate
formula in effect on October 1, 1995.
SEC. 164. <<NOTE: 7 USC 7284.>> PERSONAL LIABILITY OF PRODUCERS FOR
DEFICIENCIES.
(a) In General.--Except as provided in subsection (b), no producer
shall be personally liable for any deficiency arising from the sale of
the collateral securing any nonrecourse loan made under this title
unless the loan was obtained through a fraudulent representation by the
producer.
(b) Limitations.--Subsection (a) shall not prevent the Commodity
Credit Corporation or the Secretary from requiring a producer to assume
liability for--
(1) a deficiency in the grade, quality, or quantity of a
commodity stored on a farm or delivered by the producer;
(2) a failure to properly care for and preserve a commodity;
or
(3) a failure or refusal to deliver a commodity in
accordance with a program established under this title.
(c) Acquisition of Collateral.--In the case of a nonrecourse loan
made under this title or the Commodity Credit Corporation Charter Act
(15 U.S.C. 714 et seq.), if the Commodity Credit Corporation acquires
title to the unredeemed collateral, the Corporation shall be under no
obligation to pay for any market value that the collateral may have in
excess of the loan indebtedness.
(d) Sugarcane and Sugar Beets.--A security interest obtained by the
Commodity Credit Corporation as a result of the execution of a security
agreement by the processor of sugarcane or sugar
[[Page 110 STAT. 936]]
beets shall be superior to all statutory and common law liens on raw
cane sugar and refined beet sugar in favor of the producers of sugarcane
and sugar beets and all prior recorded and unrecorded liens on the crops
of sugarcane and sugar beets from which the sugar was derived.
SEC. 165. <<NOTE: 7 USC 7285.>> COMMODITY CREDIT CORPORATION SALES PRICE
RESTRICTIONS.
(a) General Sales Authority.--The Commodity Credit Corporation may
sell any commodity owned or controlled by the Corporation at any price
that the Secretary determines will maximize returns to the Corporation.
(b) Nonapplication of Sales Price Restrictions.--Subsection (a)
shall not apply to--
(1) a sale for a new or byproduct use;
(2) a sale of peanuts or oilseeds for the extraction of oil;
(3) a sale for seed or feed if the sale will not
substantially impair any loan program;
(4) a sale of a commodity that has substantially
deteriorated in quality or as to which there is a danger of loss
or waste through deterioration or spoilage;
(5) a sale for the purpose of establishing a claim arising
out of a contract or against a person who has committed fraud,
misrepresentation, or other wrongful act with respect to the
commodity;
(6) a sale for export, as determined by the Corporation; and
(7) a sale for other than a primary use.
(c) Presidential Disaster Areas.--
(1) In general.--Notwithstanding subsection (a), on such
terms and conditions as the Secretary may consider in the public
interest, the Corporation may make available any commodity or
product owned or controlled by the Corporation for use in
relieving distress--
(A) in any area in the United States (including the
Virgin Islands) declared by the President to be an acute
distress area because of unemployment or other economic
cause, if the President finds that the use will not
displace or interfere with normal marketing of
agricultural commodities; and
(B) in connection with any major disaster determined
by the President to warrant assistance by the Federal
Government under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
(2) Costs.--Except on a reimbursable basis, the Corporation
shall not bear any costs in connection with making a commodity
available under paragraph (1) beyond the cost of the commodity
to the Corporation incurred in--
(A) the storage of the commodity; and
(B) the handling and transportation costs in making
delivery of the commodity to designated agencies at 1 or
more central locations in each State or other area.
(d) Efficient Operations.--Subsection (a) shall not apply to the
sale of a commodity the disposition of which is desirable in the
interest of the effective and efficient conduct of the operations of the
Corporation because of the small quantity of the commodity
[[Page 110 STAT. 937]]
involved, or because of the age, location, or questionable continued
storability of the commodity.
Subtitle F--Permanent Price Support Authority
SEC. 171. <<NOTE: 7 USC 7301.>> SUSPENSION AND REPEAL OF PERMANENT PRICE
SUPPORT AUTHORITY.
(a) Agricultural Adjustment Act of 1938.--
(1) Suspensions.--The following provisions of the
Agricultural Adjustment Act of 1938 shall not be applicable to
the 1996 through 2002 crops of loan commodities, peanuts, and
sugar and shall not be applicable to milk during the period
beginning on the date of enactment of this title and ending on
December 31, 2002:
(A) Parts II through V of subtitle B of title III (7
U.S.C. 1326-1351).
(B) Subsections (a) through (j) of section 358 (7
U.S.C. 1358).
(C) Subsections (a) through (h) of section 358a (7
U.S.C. 1358a).
(D) Subsections (a), (b), (d), and (e) of section
358d (7 U.S.C. 1359).
(E) Part VII of subtitle B of title III (7 U.S.C.
1359aa-1359jj).
(F) In the case of peanuts, part I of subtitle C of
title III (7 U.S.C. 1361-1368).
(G) In the case of upland cotton, section 377 (7
U.S.C. 1377).
(H) Subtitle D of title III (7 U.S.C. 1379a-1379j).
(I) Title IV (7 U.S.C. 1401-1407).
(2) <<NOTE: Effective date.>> Reports and records.--
Effective only for the 1996 through 2002 crops of peanuts, the
first sentence of section 373(a) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before
``all brokers and dealers in peanuts'' the following: ``all
producers engaged in the production of peanuts,''.
(b) Agricultural Act of 1949.--
(1) Suspensions.--The following provisions of the
Agricultural Act of 1949 shall not be applicable to the 1996
through 2002 crops of loan commodities, peanuts, and sugar and
shall not be applicable to milk during the period beginning on
the date of enactment of this title and ending on December 31,
2002:
(A) Section 101 (7 U.S.C. 1441).
(B) Section 103(a) (7 U.S.C. 1444(a)).
(C) Section 105 (7 U.S.C. 1444b).
(D) Section 107 (7 U.S.C. 1445a).
(E) Section 110 (7 U.S.C. 1445e).
(F) Section 112 (7 U.S.C. 1445g).
(G) Section 115 (7 U.S.C. 1445k).
(H) Section 201 (7 U.S.C. 1446).
(I) Title III (7 U.S.C. 1447-1449).
(J) Title IV (7 U.S.C. 1421-1433d), other than
sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and
1431).
(K) Title V (7 U.S.C. 1461-1469).
[[Page 110 STAT. 938]]
(L) Title VI (7 U.S.C. 1471-1471j).
(2) Repeals.--The following provisions of the Agricultural
Act of 1949 are repealed:
(A) Section 101B (7 U.S.C. 1441-2).
(B) Section 103B (7 U.S.C. 1444-2).
(C) Section 105B (7 U.S.C. 1444f).
(D) Section <<NOTE: 7 USC 1445b-3a.>> 107B (7 U.S.C.
1445-3a).
(E) Section 108B (7 U.S.C. 1445c-3).
(F) Section 113 (7 U.S.C. 1445h).
(G) Subsections (b) and (c) of section 114 (7 U.S.C.
1445j).
(H) Sections 205, 206, and 207 (7 U.S.C. 1446f,
1446g, and 1446h).
(I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).
(3) Potential price support for rice.--Section 101 of the
Agricultural Act of 1949 (7 U.S.C. 1441), as suspended by
paragraph (1), is amended by adding after subsection (d) the
following:
``(e) Rice.--The Secretary shall make available to producers of each
crop of rice on a farm price support at a level that is not less than 50
percent, or more than 90 percent of the parity price for rice as the
Secretary determines will not result in increasing stocks of rice to the
Commodity Credit Corporation.''.
(c) Suspension of Certain Quota Provisions.--The joint resolution
entitled ``A joint resolution relating to corn and wheat marketing
quotas under the Agricultural Adjustment Act of 1938, as amended'',
approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable
to the crops of wheat planted for harvest in the calendar years 1996
through 2002.
SEC. 172. <<NOTE: 7 USC 7302.>> EFFECT OF AMENDMENTS.
(a) Effect on Prior Crops.--Except as otherwise specifically
provided in this title and notwithstanding any other provision of law,
this title and the amendments made by this title shall not affect the
authority of the Secretary to carry out a price support or production
adjustment program for any of the 1991 through 1995 crops of an
agricultural commodity established under a provision of law in effect
immediately before the date of enactment of this title.
(b) Liability.--A provision of this title or an amendment made by
this title shall not affect the liability of any person under any
provision of law as in effect before the date of enactment of this
title.
Subtitle G--Commission on 21st Century Production Agriculture
SEC. 181. <<NOTE: 7 USC 7311.>> ESTABLISHMENT.
There is established a commission to be known as the ``Commission on
21st Century Production Agriculture'' (in this subtitle referred to as
the ``Commission'').
SEC. 182. <<NOTE: 7 USC 7312.>> COMPOSITION.
(a) Membership and Appointment.--The Commission shall be composed of
11 members, appointed as follows:
(1) <<NOTE: President.>> Three members shall be appointed by
the President.
[[Page 110 STAT. 939]]
(2) Four members shall be appointed by the Chairman of the
Committee on Agriculture of the House of Representatives in
consultation with the ranking minority member of the Committee.
(3) Four members shall be appointed by the Chairman of the
Committee on Agriculture, Nutrition, and Forestry of the Senate
in consultation with the ranking minority member of the
Committee.
(b) Qualifications.--At least 1 of the members appointed under each
of paragraphs (1), (2), and (3) of subsection (a) shall be an individual
who is primarily involved in production agriculture. All other members
of the Commission shall be appointed from among individuals having
knowledge and experience in agricultural production, marketing, finance,
or trade.
(c) Term of Members; Vacancies.--A member of the Commission shall be
appointed for the life of the Commission. A vacancy on the Commission
shall not affect its powers, but shall be filled in the same manner as
the original appointment was made.
(d) Time for Appointment; First Meeting.--The members of the
Commission shall be appointed not later than October 1, 1997. The
Commission shall convene its first meeting to carry out its duties under
this subtitle 30 days after 6 members of the Commission have been
appointed.
(e) Chairperson.--The chairperson of the Commission shall be
designated jointly by the Chairman of the Committee on Agriculture of
the House of Representatives and the Chairman of the Committee on
Agriculture, Nutrition, and Forestry of the Senate from among the
members of the Commission.
SEC. 183. <<NOTE: 7 USC 7313.>> COMPREHENSIVE REVIEW OF PAST AND FUTURE
OF PRODUCTION AGRICULTURE.
(a) Initial Review.--The Commission shall conduct a comprehensive
review of changes in the condition of production agriculture in the
United States since the date of enactment of this title and the extent
to which the changes are the result of this title and the amendments
made by this title. The review shall include the following:
(1) An assessment of the initial success of production
flexibility contracts in supporting the economic viability of
farming in the United States.
(2) An assessment of economic risks to farms delineated by
size of farm operation (such as small, medium, or large farms)
and region of production.
(3) An assessment of the food security situation in the
United States in the areas of trade, consumer prices,
international competitiveness of United States production
agriculture, food supplies, and humanitarian relief.
(4) An assessment of the changes in farmland values and
agricultural producer incomes since the date of enactment of
this title.
(5) An assessment of the extent to which regulatory relief
for agricultural producers has been enacted and implemented,
including the application of cost/benefit principles in the
issuance of agricultural regulations.
(6) An assessment of the extent to which tax relief for
agricultural producers has been enacted in the form of capital
[[Page 110 STAT. 940]]
gains tax reductions, estate tax exemptions, and mechanisms to
average tax loads over high- and low-income years.
(7) An assessment of the effect of any Federal Government
interference in agricultural export markets, such as the
imposition of trade embargoes, and the degree of implementation
and success of international trade agreements and United States
export programs.
(8) An assessment of the likely effect of the sale, lease,
or transfer of farm poundage quota for peanuts across State
lines.
(b) Subsequent Review.--The Commission shall conduct a comprehensive
review of the future of production agriculture in the United States and
the appropriate role of the Federal Government in support of production
agriculture. The review shall include the following:
(1) An assessment of changes in the condition of production
agriculture in the United States since the initial review
conducted under subsection (a).
(2) Identification of the appropriate future relationship of
the Federal Government with production agriculture after 2002.
(3) An assessment of the personnel and infrastructure
requirements of the Department of Agriculture necessary to
support the future relationship of the Federal Government with
production agriculture.
(4) An assessment of economic risks to farms delineated by
size of farm operation (such as small, medium, or large farms)
and region of production.
(c) Recommendations.--In carrying out the subsequent review under
subsection (b), the Commission shall develop specific recommendations
for legislation to achieve the appropriate future relationship of the
Federal Government with production agriculture identified under
subsection (a)(2).
SEC. 184. <<NOTE: 7 USC 7314.>> REPORTS.
(a) Report on Initial Review.--Not later than June 1, 1998, the
Commission shall submit to the President, the Committee on Agriculture
of the House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report containing the results of
the initial review conducted under section 183(a).
(b) Report on Subsequent Review.--Not later than January 1, 2001,
the Commission shall submit to the President and the congressional
committees specified in subsection (a) a report containing the results
of the subsequent review conducted under section 183(b).
SEC. 185. <<NOTE: 7 USC 7315.>> POWERS.
(a) Hearings.--The Commission may, for the purpose of carrying out
this subtitle, conduct such hearings, sit and act at such times, take
such testimony, and receive such evidence, as the Commission considers
appropriate.
(b) Assistance From Other Agencies.--The Commission may secure
directly from any department or agency of the Federal Government such
information as may be necessary for the Commission to carry out its
duties under this subtitle. On the request of the chairperson of the
Commission, the head of the department or agency shall, to the extent
permitted by law, furnish such information to the Commission.
[[Page 110 STAT. 941]]
(c) Mail.--The Commission may use the United States mails in the
same manner and under the same conditions as the departments and
agencies of the Federal Government.
(d) Assistance From Secretary.--The Secretary shall provide to the
Commission appropriate office space and such reasonable administrative
and support services as the Commission may request.
SEC. 186. <<NOTE: 7 USC 7316.>> COMMISSION PROCEDURES.
(a) Meetings.--The Commission shall meet on a regular basis (as
determined by the chairperson) and at the call of the chairperson or a
majority of its members.
(b) Quorum.--A majority of the members of the Commission shall
constitute a quorum for the transaction of business.
SEC. 187. <<NOTE: 7 USC 7317.>> PERSONNEL MATTERS.
(a) Compensation.--Each member of the Commission shall serve without
compensation, but shall be allowed travel expenses including per diem in
lieu of subsistence, as authorized by section 5703 of title 5, United
States Code, when engaged in the performance of Commission duties.
(b) Staff.--
(1) Appointment.--The Commission shall appoint a staff
director, who shall be paid at a rate not to exceed the maximum
rate of basic pay under section 5376 of title 5, United States
Code, and such professional and clerical personnel as may be
reasonable and necessary to enable the Commission to carry out
its duties under this subtitle without regard to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such title, or
any other provision of law, relating to the number,
classification, and General Schedule rates.
(2) Limitation on compensation.--No employee appointed under
this subsection (other than the staff director) may be
compensated at a rate to exceed the maximum rate applicable to
level GS-15 of the General Schedule.
(c) Detailed Personnel.--On the request of the chairperson of the
Commission, the head of any department or agency of the Federal
Government is authorized to detail, without reimbursement, any personnel
of the department or agency to the Commission to assist the Commission
in carrying out its duties under this section. The detail of any
individual may not result in the interruption or loss of civil service
status or other privilege of the individual.
SEC. 188. <<NOTE: 7 USC 7318.>> TERMINATION OF COMMISSION.
The Commission shall terminate on submission of the final report
required by section 184.
Subtitle H--Miscellaneous Commodity Provisions
SEC. 191. <<NOTE: 7 USC 7331.>> OPTIONS PILOT PROGRAM.
(a) Pilot Programs Authorized.--Until December 31, 2002, the
Secretary of Agriculture may conduct a pilot program for 1 or more
agricultural commodities supported under this title to
[[Page 110 STAT. 942]]
ascertain whether futures and options contracts can provide producers
with reasonable protection from the financial risks of fluctuations in
price, yield, and income inherent in the production and marketing of the
commodities. The pilot program shall be an alternative to other related
programs of the Department of Agriculture.
(b) Distribution of Pilot Program.--For each agricultural commodity
included in the pilot program, the Secretary may operate the pilot
program in not more than 100 counties, except that not more than 6 of
the counties may be located in any 1 State. The pilot program for a
commodity shall not be operated in any county for more than 3 of the
1996 through 2002 calendar years.
(c) Eligible Participants.--In operating the pilot program, the
Secretary may enter into contract with a producer who--
(1) is eligible for a production flexibility contract, a
marketing assistance loan, or other assistance under this title;
(2) volunteers to participate in the pilot program;
(3) operates a farm located in a county selected for the
pilot program; and
(4) meets such other eligibility requirements as the
Secretary may establish.
(d) Notice to Producers.--The Secretary shall provide notice to each
producer participating in the pilot program that--
(1) the participation of the producer is voluntary; and
(2) neither the United States, the Commodity Credit
Corporation, the Federal Crop Insurance Corporation, the
Department of Agriculture, nor any other Federal agency is
authorized to guarantee that participants in the pilot program
will be better or worse off financially as a result of
participation in the pilot program than the producer would have
been if the producer had not participated in the pilot program.
(e) Contracts.--The Secretary shall set forth in each contract under
the pilot program the terms and conditions for participation in the
pilot program and the notice required by subsection (d).
(f) Eligible Markets.--Trades for futures and options contracts
under the pilot program shall be carried out on commodity futures and
options markets designated as contract markets under the Commodity
Exchange Act (7 U.S.C. 1 et seq.).
(g) Recordkeeping.--A producer participating in the pilot program
shall compile, maintain, and submit (or authorize the compilation,
maintenance, and submission) of such documentation as the regulations
governing the pilot program require.
(h) Use of Commodity Credit Corporation.--The Secretary shall fund
and operate the pilot program through the Commodity Credit Corporation.
To the maximum extent practicable, the Secretary shall operate the pilot
program in a budget neutral manner.
(i) Conforming Repeal.--The Options Pilot Program Act of 1990
(subtitle E of title XI of Public Law 101-624; 7 U.S.C. 1421 note) is
repealed.
SEC. 192. <<NOTE: 7 USC 7332.>> RISK MANAGEMENT EDUCATION.
In consultation with the Commodity Futures Trading Commission, the
Secretary shall provide such education in management of the financial
risks inherent in the production and marketing of agricultural
commodities as the Secretary considers appropriate. As part of such
educational activities, the Secretary may develop and implement programs
to facilitate the participation of agricultural producers in commodity
futures trading programs, forward
[[Page 110 STAT. 943]]
contracting options, and insurance protection programs by assisting and
training producers in the usage of such programs. In implementing this
authority, the Secretary may use existing research and extension
authorities and resources of the Department of Agriculture.
SEC. 193. CROP INSURANCE.
(a) Catastrophic Risk Protection.--
(1) Single delivery.--Section 508(b)(4) of the Federal Crop
Insurance Act (7 U.S.C. 1508(b)(4)) is amended by adding at the
end the following:
``(C) Delivery of coverage.--
``(i) In general.--In full consultation with
approved insurance providers, the Secretary may
continue to offer catastrophic risk protection in
a State (or a portion of a State) through local
offices of the Department if the Secretary
determines that there is an insufficient number of
approved insurance providers operating in the
State or portion of the State to adequately
provide catastrophic risk protection coverage to
producers.
``(ii) Coverage by approved insurance
providers.--To the extent that catastrophic risk
protection coverage by approved insurance
providers is sufficiently available in a State (or
a portion of a State) as determined by the
Secretary, only approved insurance providers may
provide the coverage in the State or portion of
the State.
``(iii) <<NOTE: Announcement.>> Timing of
determinations.--Not later than 90 days after the
date of enactment of this subparagraph, the
Secretary shall announce the results of the
determinations under clause (i) for policies for
the 1997 crop year. For subsequent crop years, the
Secretary shall make the announcement not later
than April 30 of the year preceding the year in
which the crop will be produced, or at such other
times during the year as the Secretary finds
practicable in consultation with affected crop
insurance providers for those States (or portions
of States) in which catastrophic coverage remains
available through local offices of the Department.
``(iv) <<NOTE: Effective date.>> Current
policies.--This clause shall take effect beginning
with the 1997 crop year. Subject to clause (ii)
all catastrophic risk protection policies written
by local offices of the Department shall be
transferred to the approved insurance provider for
performance of all sales, service, and loss
adjustment functions. Any fees in connection with
such policies that are not yet collected at the
time of the transfer shall be payable to the
approved insurance providers assuming the
policies. The transfer process for policies for
the 1997 crop year with sales closing dates before
January 1, 1997, shall begin at the time of the
Secretary's announcement under clause (iii) and be
completed by the sales closing date for the crop
and county. The transfer process for all
subsequent policies (including policies for the
1998 and subsequent crop years) shall
[[Page 110 STAT. 944]]
begin at a date that permits the process to be
completed not later than 45 days before the sales
closing date.''.
(2) Waiver of mandatory linkage.--Section 508(b)(7) of the
Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended by
striking subparagraph (A) and inserting the following:
``(A) <<NOTE: Effective date.>> In general.--
Effective for the spring-planted 1996 and subsequent
crops (and fall-planted 1996 crops at the option of the
Secretary), to be eligible for any payment or loan under
the Agricultural Market Transition Act, for the
conservation reserve program, or for any benefit
described in section 371 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 2008f), a person shall--
``(i) obtain at least the catastrophic level
of insurance for each crop of economic
significance in which the person has an interest;
or
``(ii) provide a written waiver to the
Secretary that waives any eligibility for
emergency crop loss assistance in connection with
the crop.''.
(3) <<NOTE: 7 USC 1508 note.>> Special rule for 1996.--
(A) Effective period.--This paragraph shall apply
only to the 1996 crop year.
(B) Availability.--During a period of not less than
2 weeks, but not more than 4 weeks, beginning on the
date of enactment of this title, the Secretary shall
provide producers with an opportunity to obtain
catastrophic risk protection insurance under section
508(b) of the Federal Crop Insurance Act (7 U.S.C.
1508(b)) for a spring-planted crop, and limited
additional coverage for malting barley under the Malting
Barley Price and Quality Endorsement. The Federal Crop
Insurance Corporation may attach such limitations and
restrictions on obtaining insurance during this period
as the Corporation considers necessary to maintain the
actuarial soundness of the crop insurance program.
(C) Attachment.--Insurance coverage under any policy
obtained under this paragraph during the extended sales
period shall not attach until 10 days after the
application.
(D) Cancellation.--During the extended period, a
producer may cancel a catastrophic risk protection
policy if--
(i) the policy is a continuation of a policy
that was obtained for a previous crop year; and
(ii) the cancellation request is made before
the acreage reporting date for the policy for the
1996 crop year.
(b) <<NOTE: 7 USC 1508 note.>> Crop Insurance Pilot Project.--
(1) Coverage.--The Secretary of Agriculture shall develop
and administer a pilot project for crop insurance coverage that
indemnifies crop losses due to a natural disaster such as insect
infestation or disease.
(2) Actuarial soundness.--A pilot project under this
paragraph shall be actuarially sound, as determined by the
Secretary and administered at no net cost.
(3) Duration.--A pilot project under this paragraph shall be
of two years' duration.
[[Page 110 STAT. 945]]
(c) Crop Insurance for Nursery Crops.--Section 508(a)(6) of the
Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended by adding at
the end the following:
``(D) Addition of nursery crops.--Not later than 2
years after the date of enactment of this subparagraph,
the Corporation shall conduct a study and limited pilot
program on the feasibility of insuring nursery crops.''.
(d) Marketing Windows.--Section 508(j) of the Federal Crop Insurance
Act (7 U.S.C. 1508(j)) is amended by adding at the end the following:
``(4) Marketing windows.--The Corporation shall consider
marketing windows in determining whether it is feasible to
require planting during a crop year.''.
(e) Funding.--
(1) Mandatory expenses.--Section 516(a)(2) of the Federal
Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended--
(A) by inserting ``and'' at the end of subparagraph
(A);
(B) by striking ``; and'' at the end of subparagraph
(B) and inserting a period; and
(C) by striking subparagraph (C).
(2) Funding of sales commissions.--Section 516(b) of the
Federal Crop Insurance Act (7 U.S.C. 1516(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``(A) In general'' and all
that follows through ``subparagraph (B), in'' and
inserting ``In''; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)(B), by striking ``subject to
paragraph (1)(B),''.
(3) Other expenses.--Section 516(b)(2)(A) of the Federal
Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is amended by
striking ``, noninsured assistance benefits,''.
(f) Limitation on Multiple Benefits for Same Loss.--Section 508 of
the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at
the end the following:
``(n) Limitation on Multiple Benefits for Same Loss.--If a producer
who is eligible to receive benefits under catastrophic risk protection
under subsection (b) is also eligible to receive assistance for the same
loss under any other program administered by the Secretary, the producer
shall be required to elect whether to receive benefits under this title
or under the other program, but not both. A producer who purchases
additional coverage under subsection (c) may also receive assistance for
the same loss under other programs administered by the Secretary, except
that the amount received for the loss under the additional coverage
together with the amount received under the other programs may not
exceed the amount of the actual loss of the producer.''.
SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.
(a) Establishment.--The Department of Agriculture Reorganization Act
of 1994 is amended by inserting after section 226 (7 U.S.C. 6932) the
following new section:
``SEC. 226A. <<NOTE: 7 USC 6933.>> OFFICE OF RISK MANAGEMENT.
``(a) Establishment.--Subject to subsection (e), the Secretary shall
establish and maintain in the Department an independent Office of Risk
Management.
[[Page 110 STAT. 946]]
``(b) Functions of the Office of Risk Management.--The Office of
Risk Management shall have jurisdiction over the following functions:
``(1) Supervision of the Federal Crop Insurance Corporation.
``(2) Administration and oversight of all aspects, including
delivery through local offices of the Department, of all
programs authorized under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.).
``(3) Any pilot or other programs involving revenue
insurance, risk management savings accounts, or the use of the
futures market to manage risk and support farm income that may
be established under the Federal Crop Insurance Act or other
law.
``(4) Such other functions as the Secretary considers
appropriate.
``(c) Administrator.--
``(1) Appointment.--The Office of Risk Management shall be
headed by an Administrator who shall be appointed by the
Secretary.
``(2) Manager.--The Administrator of the Office of Risk
Management shall also serve as Manager of the Federal Crop
Insurance Corporation.
``(d) Resources.--
``(1) Functional coordination.--Certain functions of the
Office of Risk Management, such as human resources, public
affairs, and legislative affairs, may be provided by a
consolidation of such functions under the Under Secretary of
Agriculture for Farm and Foreign Agricultural Services.
``(2) Minimum provisions.--Notwithstanding paragraph (1) or
any other provision of law or order of the Secretary, the
Secretary shall provide the Office of Risk Management with human
and capital resources sufficient for the Office to carry out its
functions in a timely and efficient manner.''.
(b) Fiscal Year 1996 Funding.--From funds appropriated for the
salaries and expenses of the Consolidated Farm Service Agency in the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 1996 (Public Law 104-37), the
Secretary of Agriculture may use such sums as necessary for the salaries
and expenses of the Office of Risk Management established under
subsection (a).
(c) Conforming Amendment.--Section 226(b) of the Act (7 U.S.C.
6932(b)) is amended by striking paragraph (2).
SEC. 195. REVENUE INSURANCE.
Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h))
is amended by adding at the end the following:
``(9) Revenue insurance pilot program.--
``(A) In general.--Not later than December 31, 1996,
the Secretary shall carry out a pilot program in a
limited number of counties, as determined by the
Secretary, for crop years 1997, 1998, 1999, and 2000,
under which a producer of wheat, feed grains, soybeans,
or such other commodity as the Secretary considers
appropriate may elect to receive insurance against loss
of revenue, as determined by the Secretary.
``(B) Administration.--Revenue insurance under this
paragraph shall--
[[Page 110 STAT. 947]]
``(i) be offered through reinsurance
arrangements with private insurance companies;
``(ii) offer at least a minimum level of
coverage that is an alternative to catastrophic
crop insurance;
``(iii) be actuarially sound; and
``(iv) require the payment of premiums and
administrative fees by an insured producer.''.
SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE
PROGRAM.
(a) Operation and Administration of Program.--
(1) In general.--In the case of an eligible crop described
in paragraph (2), the Secretary of Agriculture shall operate a
noninsured crop disaster assistance program to provide coverage
equivalent to the catastrophic risk protection otherwise
available under section 508(b) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)). The Secretary shall carry out this section
through the Consolidated Farm Service Agency (in this section
referred to as the ``Agency'').
(2) Eligible crops.--
(A) In general.--In this section, the term
``eligible crop'' means each commercial crop or other
agricultural commodity (except livestock)--
(i) for which catastrophic risk protection
under section 508(b) of the Federal Crop Insurance
Act (7 U.S.C. 1508(b)) is not available; and
(ii) that is produced for food or fiber.
(B) Crops specifically included.--The term
``eligible crop'' shall include floricultural,
ornamental nursery, and Christmas tree crops, turfgrass
sod, seed crops, aquaculture (including ornamental
fish), and industrial crops.
(3) Cause of loss.--To qualify for assistance under this
section, the losses of the noninsured commodity shall be due to
drought, flood, or other natural disaster, as determined by the
Secretary.
(b) Application for Noninsured Crop Disaster Assistance.--
(1) Timely application.--To be eligible for assistance under
this section, a producer shall submit an application for
noninsured crop disaster assistance at a local office of the
Department. The application shall be in such form, contain such
information, and be submitted at such time as the Secretary may
require.
(2) Records.--A producer shall provide records, as required
by the Secretary, of crop acreage, acreage yields, and
production.
(3) Acreage reports.--A producer shall provide reports on
acreage planted or prevented from being planted, as required by
the Secretary, by the designated acreage reporting date for the
crop and location as established by the Secretary.
(c) Loss Requirements.--
(1) Required area loss.--A producer of an eligible crop
shall not receive noninsured crop disaster assistance unless the
average yield for that crop, or an equivalent measure in the
event yield data are not available, in an area falls below 65
percent of the expected area yield, as established by the
Secretary.
[[Page 110 STAT. 948]]
(2) Prevented planting.--Subject to paragraph (1), the
Secretary shall make a prevented planting noninsured crop
disaster assistance payment if the producer is prevented from
planting more than 35 percent of the acreage intended for the
eligible crop because of drought, flood, or other natural
disaster, as determined by the Secretary.
(3) Reduced yields.--Subject to paragraph (1), the Secretary
shall make a reduced yield noninsured crop disaster assistance
payment to a producer if the total quantity of the eligible crop
that the producer is able to harvest on any farm is, because of
drought, flood, or other natural disaster as determined by the
Secretary, less than 50 percent of the expected individual yield
for the crop, as determined by the Secretary, factored for the
interest of the producer for the crop.
(d) Payment.--The Secretary shall make available to a producer
eligible for noninsured assistance under this section a payment computed
by multiplying--
(1) the quantity that is less than 50 percent of the
established yield for the crop; by
(2)(A) in the case of each of the 1996 through 1998 crop
years, 60 percent of the average market price for the crop (or
any comparable coverage determined by the Secretary); or
(B) in the case of each of the 1999 and subsequent crop
years, 55 percent of the average market price for the crop (or
any comparable coverage determined by the Secretary); by
(3) a payment rate for the type of crop (as determined by
the Secretary) that--
(A) in the case of a crop that is produced with a
significant and variable harvesting expense, reflects
the decreasing cost incurred in the production cycle for
the crop that is--
(i) harvested;
(ii) planted but not harvested; and
(iii) prevented from being planted because of
drought, flood, or other natural disaster (as
determined by the Secretary); and
(B) in the case of a crop that is not produced with
a significant and variable harvesting expense, as
determined by the Secretary.
(e) Yield Determinations.--
(1) Establishment.--The Secretary shall establish farm
yields for purposes of providing noninsured crop disaster
assistance under this section.
(2) Actual production history.--The Secretary shall
determine yield coverage using the actual production history of
the producer over a period of not less than the 4 previous
consecutive crop years and not more than 10 consecutive crop
years. Subject to paragraph (3), the yield for the year in which
noninsured crop disaster assistance is sought shall be equal to
the average of the actual production history of the producer
during the period considered.
(3) Assignment of yield.--If a producer does not submit
adequate documentation of production history to determine a crop
yield under paragraph (2), the Secretary shall assign to the
producer a yield equal to not less than 65 percent of
[[Page 110 STAT. 949]]
the transitional yield of the producer (adjusted to reflect
actual production reflected in the records acceptable to the
Secretary for continuous years), as specified in regulations
issued by the Secretary based on production history
requirements.
(4) Prohibition on assigned yields in certain counties.--
(A) In general.--
(i) Documentation.--If sufficient data are
available to demonstrate that the acreage of a
crop in a county for the crop year has increased
by more than 100 percent over any year in the
preceding 7 crop years or, if data are not
available, if the acreage of the crop in the
county has increased significantly from the
previous crop years, a producer must provide such
detailed documentation of production costs, acres
planted, and yield for the crop year for which
benefits are being claimed as is required by the
Secretary. If the Secretary determines that the
documentation provided is not sufficient, the
Secretary may require documenting proof that the
crop, had the crop been harvested, could have been
marketed at a reasonable price.
(ii) Prohibition.--Except as provided in
subparagraph (B), a producer who produces a crop
on a farm located in a county described in clause
(i) may not obtain an assigned yield.
(B) Exception.--A crop or a producer shall not be
subject to this subsection if--
(i) the planted acreage of the producer for
the crop has been inspected by a third party
acceptable to the Secretary; or
(ii)(I) the County Executive Director and the
State Executive Director recommend an exemption
from the requirement to the Administrator of the
Agency; and
(II) the Administrator approves the
recommendation.
(5) Limitation on receipt of subsequent assigned yield.--A
producer who receives an assigned yield for the current year of
a natural disaster because required production records were not
submitted to the local office of the Department shall not be
eligible for an assigned yield for the year of the next natural
disaster unless the required production records of the previous
1 or more years (as applicable) are provided to the local
office.
(6) Yield variations due to different farming practices.--
The Secretary shall ensure that noninsured crop disaster
assistance accurately reflects significant yield variations due
to different farming practices, such as between irrigated and
nonirrigated acreage.
(f) Contract Payments.--A producer who has received a guaranteed
payment for production, as opposed to delivery, of a crop pursuant to a
contract shall have the production of the producer adjusted upward by
the amount of the production equal to the amount of the contract payment
received.
(g) Use of Commodity Credit Corporation.--The Secretary may use the
funds of the Commodity Credit Corporation to carry out this section.
[[Page 110 STAT. 950]]
(h) Exclusions.--Noninsured crop disaster assistance under this
section shall not cover losses due to--
(1) the neglect or malfeasance of the producer;
(2) the failure of the producer to reseed to the same crop
in those areas and under such circumstances where it is
customary to reseed; or
(3) the failure of the producer to follow good farming
practices, as determined by the Secretary.
(i) Payment and Income Limitations.--
(1) Definitions.--In this subsection:
(A) Person.--The term ``person'' has the meaning
provided the term in regulations issued by the
Secretary. The regulations shall conform, to the extent
practicable, to the regulations defining the term
``person'' issued under section 1001 of the Food
Security Act of 1985 (7 U.S.C. 1308).
(B) Qualifying gross revenues.--The term
``qualifying gross revenues'' means--
(i) if a majority of the gross revenue of the
person is received from farming, ranching, and
forestry operations, the gross revenue from the
farming, ranching, and forestry operations of the
person; and
(ii) if less than a majority of the gross
revenue of the person is received from farming,
ranching, and forestry operations, the gross
revenue of the person from all sources.
(2) Payment limitation.--The total amount of payments that a
person shall be entitled to receive annually under this section
may not exceed $100,000.
(3) Limitation on multiple benefits for same loss.--If a
producer who is eligible to receive benefits under this section
is also eligible to receive assistance for the same loss under
any other program administered by the Secretary, the producer
shall be required to elect whether to receive benefits under
this section or under the other program, but not both.
(4) Income limitation.--A person who has qualifying gross
revenues in excess of the amount specified in section 2266(a) of
the Food, Agriculture, Conservation, and Trade Act of 1990 (7
U.S.C. 1421 note) (as in effect on November 28, 1990) during the
taxable year (as determined by the Secretary) shall not be
eligible to receive any noninsured assistance payment under this
section.
(5) Regulations.--The Secretary shall issue regulations
prescribing such rules as the Secretary determines necessary to
ensure a fair and equitable application of section 1001 of the
Food Security Act of 1985 (7 U.S.C. 1308), the general payment
limitation regulations of the Secretary, and the limitations
established under this subsection.
(j) Conforming Repeal.--Section 519 of the Federal Crop Insurance
Act (7 U.S.C. 1519) is repealed.
[[Page 110 STAT. 951]]
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.
(a) In General.--Section 3 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691a) is amended to read as follows:
``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.
``(a) Policy.--In light of the Uruguay Round Agreement on
Agriculture and the Ministerial Decision on Measures Concerning the
Possible Negative Effects of the Reform Program on Least-Developed and
Net-Food Importing Developing Countries, the United States reaffirms the
commitment of the United States to providing food aid to developing
countries.
``(b) Sense of Congress.--It is the sense of Congress that--
``(1) the President should initiate consultations with other
donor nations to consider appropriate levels of food aid
commitments to meet the legitimate needs of developing
countries; and
``(2) the United States should increase its contribution of
bona fide food assistance to developing countries consistent
with the Agreement on Agriculture.''.
(b) Conforming Amendment.--Section 411 of the Uruguay Round
Agreements Act is amended by striking subsection (e) (19 U.S.C. 3611).
SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.
Section 101 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1701) is amended--
(1) by striking ``developing countries'' each place it
appears and inserting ``developing countries and private
entities''; and
(2) in subsection (b), by inserting ``and entities'' before
the period at the end.
SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.
Section 102 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1702) is amended to read as follows:
``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE
ENTITIES.
``(a) Priority.--In selecting agreements to be entered into under
this title, the Secretary shall give priority to agreements providing
for the export of agricultural commodities to developing countries
that--
``(1) have the demonstrated potential to become commercial
markets for competitively priced United States agricultural
commodities;
``(2) are undertaking measures for economic development
purposes to improve food security and agricultural development,
alleviate poverty, and promote broad-based equitable and
sustainable development; and
[[Page 110 STAT. 952]]
``(3) demonstrate the greatest need for food.
``(b) Private Entities.--An agreement entered into under this title
with a private entity shall require such security, or such other
provisions as the Secretary determines necessary, to provide reasonable
and adequate assurance of repayment of the financing extended to the
private entity.
``(c) Agricultural Market Development Plan.--
``(1) Definition of agricultural trade organization.--In
this subsection, the term `agricultural trade organization'
means a United States agricultural trade organization that
promotes the export and sale of a United States agricultural
commodity and that does not stand to profit directly from the
specific sale of the commodity.
``(2) Plan.--The Secretary shall consider a developing
country for which an agricultural market development plan has
been approved under this subsection to have the demonstrated
potential to become a commercial market for competitively priced
United States agricultural commodities for the purpose of
granting a priority under subsection (a).
``(3) Requirements.--
``(A) In general.--To be approved by the Secretary,
an agricultural market development plan shall--
``(i) be submitted by a developing country or
private entity, in conjunction with an
agricultural trade organization;
``(ii) describe a project or program for the
development and expansion of a commercial market
for a United States agricultural commodity in a
developing country, and the economic development
of the country, using funds derived from the sale
of agricultural commodities received under an
agreement described in section 101;
``(iii) provide for any matching funds that
are required by the Secretary for the project or
program;
``(iv) provide for a results-oriented means of
measuring the success of the project or program;
and
``(v) provide for graduation to the use of
non-Federal funds to carry out the project or
program, consistent with requirements established
by the Secretary.
``(B) Agricultural trade organization.--The project
or program shall be designed and carried out by the
agricultural trade organization.
``(C) Additional requirements.--An agricultural
market development plan shall contain such additional
requirements as are determined necessary by the
Secretary.
``(4) Administrative costs.--
``(A) In general.--The Secretary may make funds made
available to carry out this title available for the
reimbursement of administrative expenses incurred by
agricultural trade organizations in developing,
implementing, and administering agricultural market
development plans, subject to such requirements and in
such amounts as the Secretary considers appropriate.
``(B) Duration.--The funds may be made available to
agricultural trade organizations for the duration of the
applicable agricultural market development plan.
[[Page 110 STAT. 953]]
``(C) Termination.--The Secretary may terminate
assistance made available under this subsection if the
agricultural trade organization is not carrying out the
approved agricultural market development plan.''.
SEC. 204. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1703) is amended--
(1) in subsection (a)(2)(A)--
(A) by striking ``a recipient country to make''; and
(B) by striking ``such country'' and inserting ``the
appropriate country'';
(2) in subsection (c), by striking ``less than 10 nor''; and
(3) in subsection (d)--
(A) by striking ``recipient country'' and inserting
``developing country or private entity''; and
(B) by striking ``7'' and inserting ``5''.
SEC. 205. USE OF LOCAL CURRENCY PAYMENT.
Section 104 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1704) is amended--
(1) in subsection (a), by striking ``recipient country'' and
inserting ``developing country or private entity''; and
(2) in subsection (c)--
(A) by striking ``recipient country'' each place it
appears and inserting ``appropriate developing
country''; and
(B) in paragraph (3), by striking ``recipient
countries'' and inserting ``appropriate developing
countries''.
SEC. 206. VALUE-ADDED FOODS.
Section 105 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1705) is repealed.
SEC. 207. ELIGIBLE ORGANIZATIONS.
(a) In General.--Section 202 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Nonemergency Assistance.--
``(1) In general.--The Administrator may provide
agricultural commodities for nonemergency assistance under this
title through eligible organizations (as described in subsection
(d)) that have entered into an agreement with the Administrator
to use the commodities in accordance with this title.
``(2) Limitation.--The Administrator may not deny a request
for funds submitted under this subsection because the program
for which the funds are requested--
``(A) would be carried out by the eligible
organization in a foreign country in which the Agency
for International Development does not have a mission,
office, or other presence; or
``(B) is not part of a development plan for the
country prepared by the Agency.''; and
(2) in subsection (e)--
(A) in the subsection heading, by striking ``Private
Voluntary Organizations and Cooperatives'' and inserting
``Eligible Organizations'';
(B) in paragraph (1)--
[[Page 110 STAT. 954]]
(i) by striking ``$13,500,000'' and inserting
``$28,000,000''; and
(ii) by striking ``private voluntary
organizations and cooperatives to assist such
organizations and cooperatives'' and inserting
``eligible organizations described in subsection
(d), to assist the organizations'';
(C) by striking paragraph (2) and inserting the
following:
``(2) Request for funds.--To receive funds made available
under paragraph (1), an eligible organization described in
subsection (d) shall submit a request for the funds that is
subject to approval by the Administrator.''; and
(D) in paragraph (3), by striking ``a private
voluntary organization or cooperative, the Administrator
may provide assistance to that organization or
cooperative'' and inserting ``an eligible organization,
the Administrator may provide assistance to the eligible
organization''.
(b) Conforming Amendments.--Section 207 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
(1) in subsection (a)(1), by striking ``a private voluntary
organization or cooperative'' each place it appears and
inserting ``an eligible organization''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``private
voluntary organizations and cooperatives'' and inserting
``eligible organizations''; and
(B) in paragraph (2), by striking ``organizations,
cooperatives,'' and inserting ``eligible
organizations''.
SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.
Section 203 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1723) is amended--
(1) in subsection (a), by inserting ``, or in a country in
the same region,'' after ``in the recipient country'';
(2) in subsection (b)--
(A) by inserting ``or in countries in the same
region,'' after ``in recipient countries,''; and
(B) by striking ``10 percent'' and inserting ``15
percent'';
(3) in subsection (c), by inserting ``or in a country in the
same region,'' after ``in the recipient country,''; and
(4) in subsection (d)(2), by inserting ``or within a country
in the same region'' after ``within the recipient country''.
SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.
Section 204 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``amount that''
and all that follows through the period at the end and
inserting ``amount that for each of fiscal years 1996
through 2002 is not less than 2,025,000 metric tons.'';
(B) in paragraph (2), by striking ``amount that''
and all that follows through the period at the end and
inserting ``amount that for each of fiscal years 1996
through 2002 is not less than 1,550,000 metric tons.'';
and
[[Page 110 STAT. 955]]
(C) in paragraph (3), by adding at the end the
following: ``No waiver shall be made before the
beginning of the applicable fiscal year.''; and
(2) in subsection (b)(1), by inserting before the period at
the end the following: ``and that not less than 50 percent of
the quantity of the bagged commodities that are whole grain
commodities be bagged in the United States''.
SEC. 210. FOOD AID CONSULTATIVE GROUP.
Section 205 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by striking ``private voluntary
organizations, cooperatives and indigenous non-governmental
organizations'' and inserting ``eligible organizations described
in section 202(d)(1)'';
(2) in subsection (b)--
(A) in paragraph (2), by striking ``for
International Affairs and Commodity Programs'' and
inserting ``of Agriculture for Farm and Foreign
Agricultural Services'';
(B) in paragraph (4), by striking ``and'' at the
end;
(C) in paragraph (5), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following:
``(6) representatives from agricultural producer groups in
the United States.'';
(3) in the second sentence of subsection (d), by inserting
``(but at least twice per year)'' after ``when appropriate'';
and
(4) in subsection (f), by striking ``1995'' and inserting
``2002''.
SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.
(a) In General.--Section 306(b) of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is amended--
(1) in the subsection heading, by striking ``Indigenous Non-
Governmental'' and inserting ``Nongovernmental''; and
(2) by striking ``utilization of indigenous'' and inserting
``utilization of''.
(b) Conforming Amendment.--Section 402 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1732) is amended by
striking paragraph (6) and inserting the following:
``(6) Nongovernmental organization.--The term
`nongovernmental organization' means an organization that works
at the local level to solve development problems in a foreign
country in which the organization is located, except that the
term does not include an organization that is primarily an
agency or instrumentality of the government of the foreign
country.''.
SEC. 212. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1731) is amended--
(1) by striking subsections (a) through (d) and inserting
the following:
``(a) Availability of Commodities.--No agricultural commodity shall
be available for disposition under this Act if the Secretary determines
that the disposition would reduce the domestic supply of the commodity
below the supply needed to meet domestic requirements and provide
adequate carryover (as determined by the Sec
[[Page 110 STAT. 956]]
retary), unless the Secretary determines that some part of the supply
should be used to carry out urgent humanitarian purposes under this
Act.'';
(2) by redesignating subsections (e) and (f) as subsections
(b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by striking
``(e)(1)'' and inserting ``(b)(1)''.
SEC. 213. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1733) is amended--
(1) in subsection (b)--
(A) in the subsection heading, by striking
``Consultations'' and inserting ``Impact on Local
Farmers and Economy''; and
(B) by striking ``consult with'' and all that
follows through ``other donor organizations to'';
(2) in subsection (c)--
(A) by striking ``from countries''; and
(B) by striking ``for use'' and inserting ``or
use'';
(3) in subsection (f)--
(A) by inserting ``or private entities, as
appropriate,'' after ``from countries''; and
(B) by inserting ``or private entities'' after
``such countries''; and
(4) in subsection (i)(2), by striking subparagraph (C).
SEC. 214. AGREEMENTS.
Section 404 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1734) is amended--
(1) in subsection (a), by inserting ``with foreign
countries'' after ``Before entering into agreements'';
(2) in subsection (b)(2)--
(A) by inserting ``with foreign countries'' after
``with respect to agreements entered into''; and
(B) by inserting before the semicolon at the end the
following: ``and broad-based economic growth''; and
(3) in subsection (c), by striking paragraph (1) and
inserting the following:
``(1) In general.--Agreements to provide assistance on a
multi-year basis to recipient countries or to eligible
organizations--
``(A) may be made available under titles I and III;
and
``(B) shall be made available under title II.''.
SEC. 215. USE OF COMMODITY CREDIT CORPORATION.
Section 406 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736) is amended--
(1) in subsection (a), by striking ``shall'' and inserting
``may''; and
(2) in subsection (b)--
(A) by striking ``this Act'' and inserting ``titles
II and III''; and
(B) by striking paragraph (4) and inserting the
following:
[[Page 110 STAT. 957]]
``(4) the vessel freight charges from United States ports or
designated Canadian transshipment ports, as determined by the
Secretary, to designated ports of entry abroad;''.
SEC. 216. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736a) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``or private
entity that enters into an agreement under title I''
after ``importing country''; and
(B) in paragraph (2), by adding at the end the
following: ``Resulting contracts may contain such terms
and conditions as the Secretary determines are necessary
and appropriate.'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by inserting ``importer
or'' before ``importing country''; and
(B) in paragraph (2)(A), by inserting ``importer
or'' before ``importing country'';
(3) in subsection (d)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Freight procurement.--Notwithstanding the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 471
et seq.) or other similar provisions of law relating to the
making or performance of Federal Government contracts, ocean
transportation under titles II and III may be procured on the
basis of full and open competitive procedures. Resulting
contracts may contain such terms and conditions as the
Administrator determines are necessary and appropriate.''; and
(B) by striking paragraph (4);
(4) in subsection (g)(2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) an assessment of the progress towards
achieving food security in each country receiving food
assistance from the United States Government, with
special emphasis on the nutritional status of the
poorest populations in each country.''; and
(5) by striking subsection (h).
SEC. 217. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736b) is amended by striking ``1995'' and inserting
``2002''.
SEC. 218. REGULATIONS.
Section 409 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736c) is repealed.
SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.
Section 410 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736d) is repealed.
[[Page 110 STAT. 958]]
SEC. 220. AUTHORIZATION OF APPROPRIATIONS.
Section 412 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736f) is amended--
(1) by striking subsections (b) and (c) and inserting the
following:
``(b) Transfer of Funds.--
``(1) In general.--Except as provided in paragraph (2) and
notwithstanding any other provision of law, the President may
direct that up to 15 percent of the funds available for any
fiscal year for carrying out any title of this Act be used to
carry out any other title of this Act.
``(2) Title iii funds.--The President may direct that up to
50 percent of the funds available for any fiscal year for
carrying out title III be used to carry out title II.''; and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d), respectively.
SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.
Section 413 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736g) is amended by striking ``this Act'' each place
it appears and inserting ``title III''.
SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
Title IV of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1731 et seq.) is amended by adding at the end the
following:
``SEC. 415. <<NOTE: Establishment. Developing countries. 7 USC 1736g-
2.>> MICRONUTRIENT FORTIFICATION PILOT PROGRAM.
``(a) In General.--Subject to the availability of practical
technology and to cost effectiveness, not later than September 30, 1997,
the Secretary, in consultation with the Administrator, shall establish a
micronutrient fortification pilot program under this Act. The purpose of
the program shall be to--
``(1) assist developing countries in correcting
micronutrient dietary deficiencies among segments of the
populations of the countries; and
``(2) encourage the development of technologies for the
fortification of whole grains and other commodities that are
readily transferable to developing countries.
``(b) Selection of Participating Countries.--From among the
countries eligible for assistance under this Act, the Secretary may
select not more than 5 developing countries to participate in the pilot
program.
``(c) Fortification.--Under the pilot program, whole grains and
other commodities made available to a developing country selected to
participate in the pilot program may be fortified with 1 or more
micronutrients (including vitamin A, iron, and iodine) with respect to
which a substantial portion of the population in the country is
deficient. The commodity may be fortified in the United States or in the
developing country.
``(d) Termination of Authority.--The authority to carry out the
pilot program established under this section shall terminate on
September 30, 2002.''.
SEC. 223. USE OF CERTAIN LOCAL CURRENCY.
Title IV of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1731 et seq.) (as amended by section 222) is amended by
adding at the end the following:
[[Page 110 STAT. 959]]
``SEC. 416. <<NOTE: 7 USC 1736g-3.>> USE OF CERTAIN LOCAL CURRENCY.
``Local currency payments received by the United States pursuant to
agreements entered into under title I (as in effect on November 27,
1990) may be utilized by the Secretary in accordance with section 108
(as in effect on November 27, 1990).''.
SEC. 224. FARMER-TO-FARMER PROGRAM.
Section 501 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1737) is amended--
(1) in subsection (a), by striking paragraph (6) and
inserting the following:
``(6) to the extent that local currencies can be used to
meet the costs of a program established under this section,
augment funds of the United States that are available for such a
program through the use of foreign currencies that accrue from
the sale of agricultural commodities under this Act, and local
currencies generated from other types of foreign assistance
activities, within the country where the program is being
conducted.''; and
(2) in subsection (c)--
(A) by striking ``0.2'' and inserting ``0.4'';
(B) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(C) by striking ``0.1'' and inserting ``0.2''.
SEC. 225. FOOD SECURITY COMMODITY RESERVE.
(a) In General.--Title III of the Agricultural Act of 1980 (7 U.S.C.
1736f-1 et seq.) is amended to read as follows:
``TITLE III <<NOTE: Food Security Commodity Reserve Act of 1996.>> --
FOOD SECURITY COMMODITY RESERVE
``SEC. 301. <<NOTE: 7 USC 1736f-1 note.>> SHORT TITLE.
``This title may be cited as the `Food Security Commodity Reserve
Act of 1996'.
``SEC. 302. <<NOTE: 7 USC 1736f-1.>> ESTABLISHMENT OF COMMODITY RESERVE.
``(a) In General.--To provide for a reserve solely to meet emergency
humanitarian food needs in developing countries, the Secretary of
Agriculture (referred to in this title as the `Secretary') shall
establish a reserve stock of wheat, rice, corn, or sorghum, or any
combination of the commodities, totaling not more than 4,000,000 metric
tons for use as described in subsection (c).
``(b) Commodities in Reserve.--
``(1) In general.--The reserve established under this
section shall consist of--
``(A) wheat in the reserve established under the
Food Security Wheat Reserve Act of 1980 as of the date
of enactment of the Federal Agriculture Improvement and
Reform Act of 1996;
``(B) wheat, rice, corn, and sorghum (referred to in
this section as `eligible commodities') acquired in
accordance with paragraph (2) to replenish eligible
commodities released from the reserve, including wheat
to replenish wheat released from the reserve established
under the Food Security Wheat Reserve Act of 1980 but
not replen
[[Page 110 STAT. 960]]
ished as of the date of enactment of the Federal
Agriculture Improvement and Reform Act of 1996; and
``(C) such rice, corn, and sorghum as the Secretary
may, at such time and in such manner as the Secretary
determines appropriate, acquire as a result of
exchanging an equivalent value of wheat in the reserve
established under this section.
``(2) Replenishment of reserve.--
``(A) In general.--Subject to subsection (h),
commodities of equivalent value to eligible commodities
in the reserve established under this section may be
acquired--
``(i) through purchases--
``(I) from producers; or
``(II) in the market, if the
Secretary determines that the purchases
will not unduly disrupt the market; or
``(ii) by designation by the Secretary of
stocks of eligible commodities of the Commodity
Credit Corporation.
``(B) Funds.--Any use of funds to acquire eligible
commodities through purchases from producers or in the
market to replenish the reserve must be authorized in an
appropriations Act.
``(c) Release of Eligible Commodities.--
``(1) Emergency assistance.--
``(A) In general.--Notwithstanding paragraph (2), to
meet unanticipated need, the Secretary may release
eligible commodities in any fiscal year, without regard
to the availability of domestic supply of the
commodities, to provide emergency assistance to
developing countries under title II of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1721 et seq.).
``(B) Release for emergency assistance.--If the
eligible commodities needed to meet unanticipated need
cannot be made available in a timely manner under normal
means for obtaining eligible commodities for food
assistance because of unanticipated need for emergency
assistance as provided under section 202(a) of the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1722(a)), the Secretary may in any fiscal
year release from the reserve--
``(i) up to 500,000 metric tons of wheat or
the equivalent value of eligible commodities other
than wheat; and
``(ii) up to 500,000 metric tons of any
eligible commodities under this paragraph that
could have been released but were not released in
prior fiscal years.
``(C) Waiver of minimum tonnage requirements.--
Nothing in this paragraph shall require a waiver under
section 204(a)(3) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a
prerequisite for the release of eligible commodities
under this paragraph.
``(2) Emergency food assistance.--Notwithstanding any other
provision of law, eligible commodities designated or acquired
for the reserve established under this section may
[[Page 110 STAT. 961]]
be released by the Secretary to provide, on a donation or sale
basis, emergency food assistance to developing countries at such
time as the domestic supply of the eligible commodities is so
limited that quantities of the eligible commodities cannot be
made available for disposition under the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.)
(other than disposition for urgent humanitarian purposes under
section 401 of the Act (7 U.S.C. 1731)).
``(3) Processing of eligible commodities.--Eligible
commodities that are released from the reserve established under
this section may be processed in the United States and shipped
to a developing country when conditions in the recipient country
require processing.
``(4) Exchange.--The Secretary may exchange an eligible
commodity for another United States commodity of equal value,
including powdered milk, pulses, and vegetable oil.
``(5) Use of normal commercial practices.--To the maximum
extent practicable consistent with the fulfillment of the
purposes of this section and the effective and efficient
administration of this section, the Secretary shall use the
usual and customary channels, facilities, arrangements, and
practices of trade and commerce to carry out this subsection.
``(d) Management of Eligible Commodities.--The Secretary shall
provide--
``(1) for the management of eligible commodities in the
reserve established under this section as to location and
quality of eligible commodities needed to meet emergency
situations; and
``(2) for the periodic rotation or replacement of stocks of
eligible commodities in the reserve to avoid spoilage and
deterioration of the commodities.
``(e) Treatment of Reserve Under Other Law.--Eligible commodities in
the reserve established under this section shall not be--
``(1) considered a part of the total domestic supply
(including carryover) for the purpose of subsection (c) or for
the purpose of administering the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
``(2) subject to any quantitative limitation on exports that
may be imposed under section 7 of the Export Administration Act
of 1979 (50 U.S.C. App. 2406).
``(f) Use of Commodity Credit Corporation.--
``(1) In general.--Subject to the limitations provided in
this section, the funds, facilities, and authorities of the
Commodity Credit Corporation shall be used by the Secretary in
carrying out this section, except that any restriction
applicable to the acquisition, storage, or disposition of
eligible commodities owned or controlled by the Commodity Credit
Corporation shall not apply.
``(2) Reimbursement.--
``(A) In general.--The Commodity Credit Corporation
shall be reimbursed for the release of eligible
commodities from funds made available to carry out the
Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691 et seq.).
``(B) Basis for reimbursement.--The reimbursement
shall be made on the basis of the lesser of--
[[Page 110 STAT. 962]]
``(i) the actual costs incurred by the
Commodity Credit Corporation with respect to the
eligible commodity; or
``(ii) the export market price of the eligible
commodity (as determined by the Secretary) as of
the time the eligible commodity is released from
the reserve.
``(C) Source of funds.--The reimbursement may be
made from funds appropriated for subsequent fiscal
years.
``(g) Finality of Determination.--Any determination by the Secretary
under this section shall be final.
``(h) Termination of Authority.--
``(1) In general.--The authority to replenish stocks of
eligible commodities to maintain the reserve established under
this section shall terminate on September 30, 2002.
``(2) Disposal of eligible commodities.--Eligible
commodities remaining in the reserve after September 30, 2002,
shall be disposed of by release for use in providing for
emergency humanitarian food needs in developing countries as
provided in this section.''.
(b) Conforming Amendment.--Section 208(d) of the Agricultural Trade
Suspension Adjustment Act of 1980 (7 U.S.C. 4001(d)) is amended by
striking paragraph (2) and inserting the following:
``(2) Applicability of certain provisions.--Subsections (c),
(d), (e), and (f)(2) of section 302 of the Food Security
Commodity Reserve Act of 1996 shall apply to commodities in any
reserve established under paragraph (1), except that the
references to `eligible commodities' in the subsections shall be
deemed to be references to `agricultural commodities'.''.
SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.
Section 1208 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736n) is repealed.
SEC. 227. FOOD FOR PROGRESS PROGRAM.
The Food for Progress Act of 1985 (7 U.S.C. 1736o) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``(b)(1)'' and inserting
``(b)''; and
(ii) in the first sentence, by inserting
``intergovernmental organizations,'' after
``cooperatives,''; and
(B) by striking paragraph (2);
(2) in subsection (e)(4), by striking ``203'' and inserting
``406'';
(3) in subsection (f)--
(A) in paragraph (1)(B), by striking ``in the case
of the independent states of the former Soviet Union,'';
(B) by striking paragraph (2);
(C) in paragraph (4), by inserting ``for each of
fiscal years 1996 through 2002'' after ``may be used'';
and
(D) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
(4) in subsection (g), by striking ``1995'' and inserting
``2002'';
(5) in subsection (j), by striking ``shall'' and inserting
``may'';
(6) in subsection (k), by striking ``1995'' and inserting
``2002'';
[[Page 110 STAT. 963]]
(7) in subsection (l)(1)--
(A) by striking ``1991 through 1995'' and inserting
``1996 through 2002''; and
(B) by inserting ``, and to provide technical
assistance for monetization programs,'' after
``monitoring of food assistance programs''; and
(8) in subsection (m)--
(A) by striking ``with respect to the independent
states of the former Soviet Union'';
(B) by striking ``private voluntary organizations
and cooperatives'' each place it appears and inserting
``agricultural trade organizations, intergovernmental
organizations, private voluntary organizations, and
cooperatives''; and
(C) in paragraph (2), by striking ``in the
independent states''.
SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.
Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 1922) is
repealed.
SEC. 229. STIMULATION OF FOREIGN PRODUCTION.
Section 7 of the Act of December 30, 1947 (61 Stat. 947, chapter
526; 50 U.S.C. App. 1917), is repealed.
Subtitle B--Amendments to Agricultural Trade Act of 1978
SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.
(a) In General.--Section 103 of the Agricultural Trade Act of 1978
(7 U.S.C. 5603) is amended to read as follows:
``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.
``(a) In General.--The Secretary shall develop a strategy for
implementing Federal agricultural export promotion programs that takes
into account the new market opportunities for agricultural products,
including opportunities that result from--
``(1) the North American Free Trade Agreement and the
Uruguay Round Agreements;
``(2) any accession to membership in the World Trade
Organization;
``(3) the continued economic growth in the Pacific Rim; and
``(4) other developments.
``(b) Purpose of Strategy.--The strategy developed under subsection
(a) shall encourage the maintenance, development, and expansion of
export markets for United States agricultural commodities and related
products, including high-value and value-added products.
``(c) Goals of Strategy.--The strategy developed under subsection
(a) shall have the following goals:
``(1) Increase the value of United States agricultural
exports each year.
``(2) Increase the value of United States agricultural
exports each year at a faster rate than the rate of increase in
the value of overall world export trade in agricultural
products.
[[Page 110 STAT. 964]]
``(3) Increase the value of United States high-value and
value-added agricultural exports each year.
``(4) Increase the value of United States high-value and
value-added agricultural exports each year at a faster rate than
the rate of increase in the value of overall world export trade
in high-value and value-added agricultural products.
``(5) Ensure that to the extent practicable--
``(A) all obligations undertaken in the Uruguay
Round Agreement on Agriculture that significantly
increase access for United States agricultural
commodities are implemented to the extent required by
the Uruguay Round Agreements; or
``(B) applicable United States laws are used to
secure United States rights under the Uruguay Round
Agreement on Agriculture.
``(d) Priority Markets.--
``(1) Identification of markets.--In developing the strategy
required under subsection (a), the Secretary shall annually
identify as priority markets--
``(A) those markets in which imports of agricultural
products show the greatest potential for increase; and
``(B) those markets in which, with the assistance of
Federal export promotion programs, exports of United
States agricultural products show the greatest potential
for increase.
``(2) <<NOTE: President.>> Identification of supporting
offices.--The President shall identify annually in the budget of
the United States Government submitted under section 1105 of
title 31, United States Code, each overseas office of the
Foreign Agricultural Service that provides assistance to United
States exporters in each of the priority markets identified
under paragraph (1).''.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate should conduct a thorough review of
agricultural export and food aid programs not later than
December 31, 1998; and
(2) the review should examine what changes, if any, need to
be made in the programs as a result of the effects of the
Agricultural Market Transition Act, the Uruguay Round
Agreements, changing world market conditions, and such other
factors as the committees consider appropriate.
(c) Elimination of Report.--
(1) In general.--Section 601 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5711) is repealed.
(2) Conforming amendment.--The last sentence of section 603
of the Agricultural Trade Act of 1978 (7 U.S.C. 5713) is amended
by striking ``, in a consolidated report,'' and all that follows
through ``section 601'' and inserting ``or in a consolidated
report''.
SEC. 242. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
(a) In General.--Title I of the Agricultural Trade Act of 1978 (7
U.S.C. 5601 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 965]]
``SEC. 106. <<NOTE: Evaluation. 7 USC 5606.>> IMPLEMENTATION OF
COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.
``Not later than September 30 of each year, the Secretary shall
evaluate whether the obligations undertaken by foreign countries under
the Uruguay Round Agreement on Agriculture are being fully implemented.
If the Secretary has reason to believe (based on the evaluation) that
any foreign country, by not implementing the obligations of the country,
may be significantly constraining an opportunity for United States
agricultural exports, the Secretary shall--
``(1) submit the evaluation to the United States Trade
Representative; and
``(2) transmit a copy of the evaluation to the Committee on
Agriculture, and the Committee on Ways and Means, of the House
of Representatives and the Committee on Agriculture, Nutrition,
and Forestry, and the Committee on Finance, of the Senate.''.
(b) Monitoring Compliance With Sanitary and Phytosanitary
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 U.S.C.
5674) is amended by adding at the end the following:
``(c) Monitoring Compliance With Sanitary and Phytosanitary
Measures.--The Secretary shall monitor the compliance of World Trade
Organization member countries with the sanitary and phytosanitary
measures of the Agreement on Agriculture of the Uruguay Round of
Multilateral Trade Negotiations of the General Agreement on Tariffs and
Trade. If the Secretary has reason to believe that any country may have
failed to meet the commitment on sanitary and phytosanitary measures
under the Agreement in a manner that adversely impacts the exports of a
United States agricultural commodity, the Secretary shall--
``(1) provide such information to the United States Trade
Representative of the circumstances surrounding the matter
arising under this subsection; and
``(2) <<NOTE: Reports.>> with respect to any such
circumstances that the Secretary considers to have a continuing
adverse effect on United States agricultural exports, report to
the Committee on Agriculture, and the Committee on Ways and
Means, of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry, and the Committee on
Finance, of the Senate--
``(A) that a country may have failed to meet the
sanitary and phytosanitary commitments; and
``(B) any notice given by the Secretary to the
United States Trade Representative.''.
SEC. 243. EXPORT CREDITS.
(a) Export Credit Guarantee Program.--Section 202 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
(1) in subsection (a)--
(A) by striking ``Guarantees.--The'' and inserting
the following: ``Guarantees.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Supplier credits.--In carrying out this section, the
Commodity Credit Corporation may issue guarantees for the
[[Page 110 STAT. 966]]
repayment of credit made available for a period of not more than
180 days by a United States exporter to a buyer in a foreign
country.'';
(2) in subsection (f)--
(A) by striking ``(f) Restrictions.--The'' and
inserting the following:
``(f) Restrictions.--
``(1) In general.--The''; and
(B) by adding at the end the following:
``(2) Criteria for determination.--In making the
determination required under paragraph (1) with respect to
credit guarantees under subsection (b) for a country, the
Secretary may consider, in addition to financial, macroeconomic,
and monetary indicators--
``(A) whether an International Monetary Fund standby
agreement, Paris Club rescheduling plan, or other
economic restructuring plan is in place with respect to
the country;
``(B) whether the country is addressing issues such
as--
``(i) the convertibility of the currency of
the country;
``(ii) adequate legal protection for foreign
investments;
``(iii) the viability of the financial markets
of the country; and
``(iv) adequate legal protection for the
private property rights of citizens of the
country; or
``(C) any other factors that are relevant to the
ability of the country to service the debt of the
country.'';
(3) by striking subsection (h) and inserting the following:
``(h) United States Agricultural Commodities.--The Commodity Credit
Corporation shall finance or guarantee under this section only United
States agricultural commodities.'';
(4) in subsection (i)--
(A) by striking paragraph (1);
(B) by striking ``Institutions.--A financial'' and
inserting the following: ``Institutions.--
``(1) In general.--A financial'';
(C) by striking ``(2) is'' and inserting the
following:
``(A) is'';
(D) by striking ``(3) is'' and inserting the
following:
``(B) is''; and
(E) by adding at the end the following:
``(2) Third country banks.--The Commodity Credit Corporation
may guarantee under subsections (a) and (b) the repayment of
credit made available to finance an export sale irrespective of
whether the obligor is located in the country to which the
export sale is destined.''; and
(5) by striking subsection (k) and inserting the following:
``(k) Processed and High-Value Products.--
``(1) In general.--In issuing export credit guarantees under
this section, the Commodity Credit Corporation shall, subject to
paragraph (2), ensure that not less than 25 percent for each of
fiscal years 1996 and 1997, 30 percent for each of fiscal years
1998 and 1999, and 35 percent for each of fiscal years 2000,
2001, and 2002, of the total amount of credit guarantees issued
for a fiscal year is issued to promote the export of processed
or high-value agricultural products and
[[Page 110 STAT. 967]]
that the balance is issued to promote the export of bulk or raw
agricultural commodities.
``(2) Limitation.--The percentage requirement of paragraph
(1) shall apply for a fiscal year to the extent that a reduction
in the total amount of credit guarantees issued for the fiscal
year is not required to meet the percentage requirement.''.
(b) Funding Levels.--Section 211 of the Agricultural Trade Act of
1978 (7 U.S.C. 5641) is amended by striking subsection (b) and inserting
the following:
``(b) Export Credit Guarantee Programs.--
``(1) Export credit guarantees.--The Commodity Credit
Corporation shall make available for each of fiscal years 1996
through 2002 not less than $5,500,000,000 in credit guarantees
under subsections (a) and (b) of section 202.
``(2) Limitation on origination fee.--Notwithstanding any
other provision of law, the Secretary may not charge an
origination fee with respect to any credit guarantee transaction
under section 202(a) in excess of an amount equal to 1 percent
of the amount of credit to be guaranteed under the transaction,
except with respect to an export credit guarantee transaction
pursuant to section 1542(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7
U.S.C. 5622 note).''.
(c) Definition of United States Agricultural Commodity.--Section
102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(7)) is
amended by striking subparagraphs (A) and (B) and inserting the
following:
``(A) an agricultural commodity or product entirely
produced in the United States; or
``(B) a product of an agricultural commodity--
``(i) 90 percent or more of the agricultural
components of which by weight, excluding packaging
and added water, is entirely produced in the
United States; and
``(ii) that the Secretary determines to be a
high value agricultural product.''.
(d) <<NOTE: 7 USC 5622 note.>> Regulations.--Not later than 180 days
after the date of enactment of this Act, the Secretary of Agriculture
shall issue regulations to carry out the amendments made by this
section.
SEC. 244. MARKET ACCESS PROGRAM.
(a) Change of Name.--
(1) In general.--Section 203 of the Agricultural Trade Act
of 1978 (7 U.S.C. 5623) is amended--
(A) in the section heading, by striking ``market
promotion program'' and inserting ``market access
program''; and
(B) by striking ``marketing promotion program'' each
place it appears and inserting ``market access
program''.
(2) Conforming amendments.--
(A) Section 1302 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 7 U.S.C.
5623) is
amended--
(i) in the section heading, by striking
``market promotion program'' and inserting
``market access program''; and
[[Page 110 STAT. 968]]
(ii) in subsection (b), <<NOTE: 7 USC 5623
note.>> by striking ``market promotion program''
each place it appears and inserting ``market
access program''.
(B) Section 211(c) of the Agricultural Trade Act of
1978 (7 U.S.C. 5641(c)) is amended--
(i) in the subsection heading, by striking
``Marketing Promotion Programs'' and inserting
``Market Access Programs'';
(ii) by striking ``market promotion
activities'' and inserting ``market access
activities'';
(iii) in paragraph (1), by striking ``market
development program'' and inserting ``market
access program''; and
(iv) in paragraph (2), by striking ``marketing
promotion program'' and inserting ``market access
program''.
(b) Use of Funds.--Section 203(f) of the Agricultural Trade Act of
1978 (7 U.S.C. 5623(f)) is amended by adding at the end the following:
``(4) Use of funds.--Funds made available to carry out this
section--
``(A) shall not be used to provide direct assistance
to any foreign for-profit corporation for the
corporation's use in promoting foreign-produced
products;
``(B) shall not be used to provide direct assistance
to any for-profit corporation that is not recognized as
a small-business concern described in section 3(a) of
the Small Business Act (15 U.S.C. 632(a)), excluding--
``(i) a cooperative;
``(ii) an association described in the first
section of the Act entitled `An Act To authorize
association of producers of agricultural
products', approved February 18, 1922 (7 U.S.C.
291); and
``(iii) a nonprofit trade association; and
``(C) may be used by a United States trade
association, cooperative, or small business for
individual branded promotional activity related to a
United States branded product, if the beneficiaries of
the activity have provided funds for the activity in an
amount that is at least equivalent to the amount of
assistance provided under this section.''.
(c) Funding.-- <<NOTE: Effective date.>> Effective October 1, 1995,
section 211(c)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5641(c)(1)) is
amended--
(1) by striking ``and'' after ``1991 through 1993,''; and
(2) by striking ``through 1997,'' and inserting ``through
1995, and not more than $90,000,000 for each of fiscal years
1996 through 2002,''.
SEC. 245. EXPORT ENHANCEMENT PROGRAM.
(a) In General.-- <<NOTE: Effective date.>> Effective October 1,
1995, section 301(e) of the Agricultural Trade Act of 1978 (7 U.S.C.
5651(e)) is amended by striking paragraph (1) and inserting the
following:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than--
``(A) $350,000,000 for fiscal year 1996;
``(B) $250,000,000 for fiscal year 1997;
[[Page 110 STAT. 969]]
``(C) $500,000,000 for fiscal year 1998;
``(D) $550,000,000 for fiscal year 1999;
``(E) $579,000,000 for fiscal year 2000;
``(F) $478,000,000 for fiscal year 2001; and
``(G) $478,000,000 for fiscal year 2002.''.
(b) Priority Funding for Intermediate Products.--Section 301 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5651) is amended by adding at
the end the following:
``(h) Priority Funding for Intermediate Products.--
``(1) <<NOTE: Effective date.>> In general.--Effective
beginning in fiscal year 1996, and consistent, as determined by
the Secretary, with the obligations and reduction commitments
undertaken by the United States under the Uruguay Round
Agreements, the Secretary may make available not more than
$100,000,000 for each fiscal year under this section for the
sale of intermediate agricultural products in sufficient
quantities to attain the volume of export sales consistent with
the volume of intermediate agricultural products exported by the
United States during the Uruguay Round base period years of 1986
through 1990.
``(2) Additional assistance.--Notwithstanding paragraph (1),
if the export sale of any intermediate agricultural product
attains the volume of export sales consistent with the volume of
the intermediate agricultural product exported by the United
States during the Uruguay Round base period years of 1986
through 1990, the Secretary may make available additional
amounts under this section for the encouragement of export sales
of the intermediate agricultural product.''.
SEC. 246. ARRIVAL CERTIFICATION.
Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 5661) is
amended by striking subsection (a) and inserting the following:
``(a) <<NOTE: Records.>> Arrival Certification.--With respect to a
commodity provided, or for which financing or a credit guarantee or
other assistance is made available, under a program authorized in
section 201, 202, or 301, the Commodity Credit Corporation shall require
the exporter of the commodity to maintain records of an official or
customary commercial nature or other documents as the Secretary may
require, and shall allow representatives of the Commodity Credit
Corporation access to the records or documents as needed, to verify the
arrival of the commodity in the country that is the intended destination
of the commodity.''.
SEC. 247. COMPLIANCE.
Section 402(a) of the Agricultural Trade Act of 1978 (7 U.S.C.
5662(a)) is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
SEC. 248. REGULATIONS.
Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 5664) is
repealed.
SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.
Subtitle B of title IV of the Agricultural Trade Act of 1978 (7
U.S.C. 5671 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 970]]
``SEC. 417. <<NOTE: 7 USC 5677.>> TRADE COMPENSATION AND ASSISTANCE
PROGRAMS.
``(a) In General.--Except as provided in subsection (f),
notwithstanding any other provision of law, if, after the date of
enactment of this section, the President or any other member of the
executive branch causes exports from the United States to any country to
be unilaterally suspended for reasons of national security or foreign
policy, and if within 90 days after the date on which the suspension is
imposed on United States exports no other country with an agricultural
economic interest agrees to participate in the suspension, the Secretary
shall carry out a trade compensation assistance program in accordance
with this section (referred to in this section as a `program').
``(b) Compensation or Provision of Funds.--Under a program, the
Secretary shall, based on an evaluation by the Secretary of the method
most likely to produce the greatest compensatory benefit for producers
of the commodity involved in the suspension--
``(1) compensate producers of the commodity by making
payments available to producers, as provided by subsection
(c)(1); or
``(2) make available an amount of funds calculated under
subsection (c)(2), to promote agricultural exports or provide
agricultural commodities to developing countries under any
authorities available to the Secretary.
``(c) Determination of Amount of Compensation or Funds.--
``(1) Compensation.--If the Secretary makes payments
available to producers under subsection (b)(1), the amount of
the payment shall be determined by the Secretary based on the
Secretary's estimate of the loss suffered by producers of the
commodity involved due to any decrease in the price of the
commodity as a result of the suspension.
``(2) Determination of amount of funds.--For each fiscal
year of a program, the amount of funds made available under
subsection (b)(2) shall be equal to 90 percent of the average
annual value of United States agricultural exports to the
country with respect to which exports are suspended during the
most recent 3 years prior to the suspension for which data are
available.
``(d) Duration of Program.--For each suspension of exports for which
a program is implemented under this section, funds shall be made
available under subsection (b) for each fiscal year or part of a fiscal
year for which the suspension is in effect, but not to exceed 3 fiscal
years.
``(e) Commodity Credit Corporation.--The Secretary shall use funds
of the Commodity Credit Corporation to carry out this section.
``(f) Exception to Carrying Out a Program.--This section shall not
apply to any suspension of trade due to a war or armed hostility.
``(g) Partial Year Embargoes.--If the Secretary makes funds
available under subsection (b)(2), regardless of whether an embargo is
in effect for only part of a fiscal year, the full amount of funds as
calculated under subsection (c)(2) shall be made available under a
program for the fiscal year. If the Secretary determines that making the
required amount of funds available in a partial fiscal year is
impracticable, the Secretary may make all or part of the funds required
to be made available in the following fiscal year
[[Page 110 STAT. 971]]
(in addition to any funds otherwise required under a program to be made
available in the following fiscal year).
``(h) Short Supply Embargoes.--If the President or any other member
of the executive branch causes exports to be suspended based on a
determination of short supply, the Secretary shall carry out section
1002 of the Food and Agriculture Act of 1977 (7 U.S.C. 1310).''.
SEC. 250. FOREIGN AGRICULTURAL SERVICE.
Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 5693) is
amended to read as follows:
``SEC. 503. DUTIES OF FOREIGN AGRICULTURAL SERVICE.
``The Service shall assist the Secretary in carrying out the
agricultural trade policy and international cooperation policy of the
United States by--
``(1) acquiring information pertaining to agricultural
trade;
``(2) carrying out market promotion and development
activities;
``(3) providing agricultural technical assistance and
training; and
``(4) carrying out the programs authorized under this Act,
the Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1691 et seq.), and other Acts.''.
SEC. 251. REPORTS.
The first sentence of section 603 of the Agricultural Trade Act of
1978 (7 U.S.C. 5713) is amended by striking ``The'' and inserting
``Subject to section 217 of the Department of Agriculture Reorganization
Act of 1994 (7 U.S.C. 6917), the''.
SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
The Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is
amended by adding at the end the following:
``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM
``SEC. 701. <<NOTE: 7 USC 5721.>> DEFINITION OF ELIGIBLE TRADE
ORGANIZATION.
``In this title, the term `eligible trade organization' means a
United States trade organization that--
``(1) promotes the export of 1 or more United States
agricultural commodities or products; and
``(2) does not have a business interest in or receive
remuneration from specific sales of agricultural commodities or
products.
``SEC. 702. <<NOTE: Establishment. 7 USC 5722.>> FOREIGN MARKET
DEVELOPMENT COOPERATOR PROGRAM.
``(a) In General.--The Secretary shall establish and, in cooperation
with eligible trade organizations, carry out a foreign market
development cooperator program to maintain and develop foreign markets
for United States agricultural commodities and products.
``(b) Administration.--Funds made available to carry out this title
shall be used only to provide--
``(1) cost-share assistance to an eligible trade
organization under a contract or agreement with the
organization; and
[[Page 110 STAT. 972]]
``(2) assistance for other costs that are necessary or
appropriate to carry out the foreign market development
cooperator program, including contingent liabilities that are
not otherwise funded.
``SEC. 703. <<NOTE: 7 USC 5723.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
such sums as may be necessary for each of fiscal years 1996 through
2002.''.
Subtitle C--Miscellaneous Agricultural Trade Provisions
SEC. 261. <<NOTE: 7 USC 5678.>> EDWARD R. MADIGAN UNITED STATES
AGRICULTURAL EXPORT EXCELLENCE AWARD.
(a) Findings.--Congress finds that--
(1) United States producers of agricultural products are
some of the most productive and efficient producers of
agricultural products in the world;
(2) continued growth and expansion of markets for United
States agricultural exports is crucial to the continued
development and economic well-being of rural areas of the United
States and the agricultural sector of the United States economy;
(3) in recent years, United States agricultural exports have
steadily increased, surpassing $54,000,000,000 in value in 1995;
(4) as United States agricultural producers move toward a
market-oriented system in which planting and other decisions by
producers are driven by national and international market
signals, developing new and expanding agricultural export
markets is vital to maintaining a vibrant and healthy
agricultural sector and rural economy; and
(5) a United States agricultural export excellence award
will increase United States agricultural exports by--
(A) identifying efforts of United States entities to
develop and expand markets for United States
agricultural exports through the development of new
products and services and through the use of innovative
marketing techniques;
(B) recognizing achievements of those who have
exhibited or supported entrepreneurial efforts to expand
and create new markets for United States agricultural
exports or increase the volume or value of United States
agricultural exports; and
(C) disseminating information on successful methods
used to develop and expand markets for United States
agricultural exports.
(b) Establishment.--There is established the Edward R. Madigan
United States Agricultural Export Excellence Award, which shall be
evidenced by a medal bearing the inscription ``Edward R. Madigan United
States Agricultural Export Excellence Award''. The medal shall be of
such design and materials and bear such additional inscriptions as the
Secretary of Agriculture (referred to in this section as the
``Secretary'') may prescribe.
(c) <<NOTE: President.>> Selection of Recipient.--The President or
the Secretary (on the basis of recommendations received from the board
established under subsection (h)) shall periodically provide the award
[[Page 110 STAT. 973]]
to companies and other entities that in the judgment of the President or
the Secretary substantially encourage entrepreneurial efforts in the
food and agriculture sector for advancing United States agricultural
exports.
(d) <<NOTE: President.>> Presentation of Award.--The presentation of
the award shall be made by the President or the Secretary with such
ceremonies as the President or the Secretary considers proper.
(e) Publication of Award.--An entity to which an award is made under
this section may publicize the receipt of the award by the entity and
use the award in advertising of the entity.
(f) Categories for Which Award May Be Given.--Separate awards shall
be made to qualifying entities in each of the following categories:
(1) Development of new products or services for agricultural
export markets.
(2) Development of new agricultural export markets.
(3) Creative marketing of products or services in
agricultural export markets.
(g) Criteria for Qualification.--An entity may qualify for an award
under this section only if the entity--
(1)(A) applies to the board established under subsection (h)
in writing for the award; or
(B) is recommended for the award by a Governor of a State;
(2)(A) has exhibited significant entrepreneurial effort to
create new markets for United States agricultural exports or
increase United States agricultural exports; or
(B) has provided significant assistance to others in an
effort to create new markets for United States agricultural
exports or increase United States agricultural exports;
(3) has not received another award in the same category
under subsection (f) during the preceding 5-year period; and
(4) meets such other requirements and specifications as the
Secretary determines are appropriate to achieve the objectives
of this section.
(h) Board.--
(1) Selection.--The Secretary shall appoint a board of
evaluators, consisting of at least 5 individuals from the
private sector selected for their knowledge and experience in
exporting United States agricultural products.
(2) Meetings.--The board shall meet at least once annually
to review and evaluate all applicants and entities recommended
by States under subsection (g)(1).
(3) <<NOTE: Reports.>> Recommendations of board.--The board
shall report its recommendations concerning the making of the
award to the Secretary.
(4) Term.--Each member of the board may serve a term of not
to exceed 3 years.
(i) Funding.--The Secretary may seek and accept gifts from public
and private sources to carry out this section.
SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.
Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 509) is
repealed.
[[Page 110 STAT. 974]]
SEC. 263. TRIGGERED EXPORT ENHANCEMENT.
(a) Readjustment of Support Levels.--Section 1302 of the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101-508; 7 U.S.C. 1421
note) is repealed.
(b) Triggered Marketing Loans and Export Enhancement.--Section 4301
of the Omnibus Trade and Competitiveness Act of 1988 (Public Law 100-
418; 7 U.S.C. 1446 note) is repealed.
(c) <<NOTE: 7 USC 1421 note.>> Effective Date.--The amendments made
by this section shall be effective beginning with the 1996 crops of
wheat, feed grains, upland cotton, and rice.
SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.
Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) is
amended--
(1) in subsection (b)--
(A) in paragraph (7)--
(i) in subparagraph (D)(iv), by striking ``one
year of acquisition'' and all that follows through
the period at the end and inserting the following:
``a reasonable length of time, as determined by
the Secretary, except that the Secretary may
permit the use of proceeds in a country other than
the country of origin--
``(I) as necessary to expedite the transportation of
commodities and products furnished under this
subsection; or
``(II) if the proceeds are generated in a currency
generally accepted in the other country.''; and
(ii) by striking the sentence following
subparagraph (F) and inserting the following:
``The Secretary may approve the use of proceeds or
services realized from the sale or barter of a
commodity furnished under this subsection by a
nonprofit voluntary agency, cooperative, or
intergovernmental agency or organization to meet
administrative expenses incurred in connection
with activities undertaken under this
subsection.'';
(B) in paragraph (8), by striking subparagraph (C);
and
(C) by striking paragraphs (10), (11), and (12); and
(2) by striking subsection (c).
SEC. 265. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.
(a) In General.--Section 1517 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is repealed.
(b) Technical Amendment.--Subsection (e)(3) of the Food for Progress
Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by striking ``section
106'' and inserting ``section 103''.
SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.
Section 1207 of the Agriculture and Food Act of 1981 (7 U.S.C.
1736m) is repealed.
SEC. 267. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.
Section 1121 of the Food Security Act of 1985 (7 U.S.C. 1736p) is
amended--
(1) by striking subsection (a); and
(2) in subsection (b)--
[[Page 110 STAT. 975]]
(A) by striking ``(b)''; and
(B) by striking paragraphs (1) through (4) and
inserting the following:
``(1) be the premier supplier of agricultural and food
products to world markets and expand exports of high value
products;
``(2) support the principle of free trade and the promotion
of fair trade in agricultural commodities and products;
``(3) cooperate fully in all efforts to negotiate with
foreign countries further reductions in tariff and nontariff
barriers to trade, including sanitary and phytosanitary measures
and trade-distorting subsidies;
``(4) aggressively counter unfair foreign trade practices as
a means of encouraging fairer trade;''.
SEC. 268. POLICY ON TRADE LIBERALIZATION.
Section 1122 of the Food Security Act of 1985 (7 U.S.C. 1736q) is
repealed.
SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.
Section 1123 of the Food Security Act of 1985 (7 U.S.C. 1736r) is
amended to read as follows:
``SEC. 1123. TRADE NEGOTIATIONS POLICY.
``(a) Findings.--Congress finds that--
``(1) on a level playing field, United States producers are
the most competitive suppliers of agricultural products in the
world;
``(2) exports of United States agricultural products
accounted for $54,000,000,000 in 1995, contributing a net
$24,000,000,000 to the merchandise trade balance of the United
States and supporting approximately 1,000,000 jobs;
``(3) increased agricultural exports are critical to the
future of the farm, rural, and overall United States economy,
but the opportunities for increased agricultural exports are
limited by the unfair subsidies of the competitors of the United
States, and a variety of tariff and nontariff barriers to highly
competitive United States agricultural products;
``(4) international negotiations can play a key role in
breaking down barriers to United States agricultural exports;
``(5) the Uruguay Round Agreement on Agriculture made
significant progress in the attainment of increased market
access opportunities for United States exports of agricultural
products, for the first time--
``(A) restraining foreign trade-distorting domestic
support and export subsidy programs; and
``(B) developing common rules for the application of
sanitary and phytosanitary restrictions;
that should result in increased exports of United States
agricultural products, jobs, and income growth in the United
States;
``(6) the Uruguay Round Agreement on Agriculture did not
succeed in completely eliminating trade distorting domestic
support and export subsidies by--
``(A) allowing the European Union to continue
unreasonable levels of spending on export subsidies; and
``(B) failing to discipline monopolistic state
trading entities, such as the Canadian Wheat Board, that
use
[[Page 110 STAT. 976]]
nontransparent and discriminatory pricing as a hidden de
facto export subsidy;
``(7) during the period 1996 through 2002, there will be
several opportunities for the United States to negotiate fairer
trade in agricultural products, including further negotiations
under the World Trade Organization, and steps toward possible
free trade agreements of the Americas and Asian-Pacific Economic
Cooperation (APEC); and
``(8) the United States should aggressively use these
opportunities to achieve more open and fair opportunities for
trade in agricultural products.
``(b) Goals of the United States in Agricultural Trade
Negotiations.--The objectives of the United States with respect to
future negotiations on agricultural trade include--
``(1) increasing opportunities for United States exports of
agricultural products by eliminating tariff and nontariff
barriers to trade;
``(2) leveling the playing field for United States producers
of agricultural products by limiting per unit domestic
production supports to levels that are no greater than those
available in the United States;
``(3) ending the practice of export dumping by eliminating
all trade distorting export subsidies and disciplining state
trading entities so that they do not (except in cases of bona
fide food aid) sell in foreign markets at prices below domestic
market prices or prices below their full costs of acquiring and
delivering agricultural products to the foreign markets; and
``(4) encouraging government policies that avoid price-
depressing surpluses.''.
SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.
Section 1164 of the Food Security Act of 1985 (Public Law 99-198; 99
Stat. 1499) is repealed.
SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.
(a) In General.--The Agricultural Aid and Trade Missions Act (7
U.S.C. 1736bb et seq.) is repealed.
(b) Conforming Amendment.--Section 7 of Public Law 100-277 (7 U.S.C.
1736bb note) is repealed.
SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.
Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 U.S.C.
1748(b)(1)(B)) is amended by striking ``including fruits, vegetables,
legumes, popcorn and ducks''.
SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.
Section 1545 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is repealed.
SEC. 274. ORDERLY LIQUIDATION OF STOCKS.
Sections 201 and 207 of the Agricultural Act of 1956 (7 U.S.C. 1851
and 1857) are repealed.
SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.
Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) is
repealed.
[[Page 110 STAT. 977]]
SEC. 276. REGULATIONS.
Section 707 of the Freedom for Russia and Emerging Eurasian
Democracies and Open Markets Support Act of 1992 (Public Law 102-511; 7
U.S.C. 5621 note) is amended by striking subsection (d).
SEC. 277. EMERGING MARKETS.
(a) Promotion of Agricultural Exports to Emerging Markets.--
(1) Emerging markets.--Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public Law
101-624; 7 U.S.C. 5622 note) is amended--
(A) in the section heading, by striking ``emerging
democracies'' and inserting ``emerging markets'';
(B) by striking ``emerging democracies'' each place
it appears in subsections (b), (d), and (e) and
inserting ``emerging markets'';
(C) in subsection (c), by striking ``emerging
democracy'' each place it appears and inserting
``emerging market''; and
(D) by striking subsection (f) and inserting the
following:
``(f) Emerging Market.--In this section and section 1543, the term
`emerging market' means any country that the Secretary determines--
``(1) is taking steps toward a market-oriented economy
through the food, agriculture, or rural business sectors of the
economy of the country; and
``(2) has the potential to provide a viable and significant
market for United States agricultural commodities or products of
United States agricultural commodities.''.
(2) Funding.--Section 1542 of the Food, Agriculture,
Conservation, and Trade Act of 1990 is amended by striking
subsection (a) and inserting the following:
``(a) Funding.--The Commodity Credit Corporation shall make
available for fiscal years 1996 through 2002 not less than
$1,000,000,000 of direct credits or export credit guarantees for exports
to emerging markets under section 201 or 202 of the Agricultural Trade
Act of 1978 (7 U.S.C. 5621 and 5622), in addition to the amounts
acquired or authorized under section 211 of the Act (7 U.S.C. 5641) for
the program.''.
(3) Agricultural fellowship program.--Section 1542 of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended--
(A) in subsection (b), by striking the last sentence
and inserting the following: ``The Commodity Credit
Corporation shall give priority under this subsection
to--
``(A) projects that encourage the privatization of the
agricultural sector or that benefit private farms or
cooperatives in emerging markets; and
``(B) projects for which nongovernmental persons agree to
assume a relatively larger share of the costs.''; and
(B) in subsection (d)--
(i) in the matter preceding paragraph (1), by
striking ``the Soviet Union'' and inserting
``emerging markets'';
(ii) in paragraph (1)--
[[Page 110 STAT. 978]]
(I) in subparagraph (A)(i)--
(aa) by striking ``1995''
and inserting ``2002''; and
(bb) by striking ``those
systems, and identify'' and
inserting ``the systems,
including potential reductions
in trade barriers, and identify
and carry out'';
(II) in subparagraph (B), by
striking ``shall'' and inserting
``may'';
(III) in subparagraph (D), by
inserting ``(including the establishment
of extension services)'' after
``technical assistance'';
(IV) by striking subparagraph (F);
and
(V) by redesignating subparagraphs
(G), (H), and (I) as subparagraphs (F),
(G), and (H), respectively;
(iii) in paragraph (2)--
(I) by striking ``the Soviet Union''
each place it appears and inserting
``emerging markets'';
(II) in subparagraph (A), by
striking ``a free market food production
and distribution system'' and inserting
``free market food production and
distribution systems'';
(III) in subparagraph (B)--
(aa) in clause (i), by
striking ``Government'' and
inserting ``governments'';
(bb) in clause (iii)(II), by
striking ``and'' at the end;
(cc) in clause (iii)(III),
by striking the period at the
end and inserting ``; and''; and
(dd) by adding at the end of
clause (iii) the following:
``(IV) to provide for the exchange
of administrators and faculty members
from agricultural and other institutions
to strengthen and revise educational
programs in agricultural economics,
agribusiness, and agrarian law, to
support change towards a free market
economy in emerging markets.'';
(IV) by striking subparagraph (D);
and
(V) by redesignating subparagraph
(E) as subparagraph (D); and
(iv) by striking paragraph (3).
(4) United states agricultural commodity.--Subsections (b)
and (c) of section 1542 of the Food, Agriculture, Conservation,
and Trade Act of 1990 <<NOTE: 7 USC 5622 note.>> are amended by
striking ``section 101(6)'' each place it appears and inserting
``section 102(7)''.
(5) Report.--The first sentence of section 1542(e)(2) of the
Food, Agriculture, Conservation, and Trade Act of 1990 is
amended by striking ``Not'' and inserting ``Subject to section
217 of the Department of Agriculture Reorganization Act of 1994
(7 U.S.C. 6917), not''.
(b) Agricultural Fellowship Program for Middle Income Countries,
Emerging Democracies, and Emerging Markets.--Section 1543 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 3293) is
amended--
[[Page 110 STAT. 979]]
(1) in the section heading, by striking ``middle income
countries and emerging democracies'' and inserting ``middle
income countries, emerging democracies, and emerging markets'';
(2) in subsection (b), by adding at the end the following:
``(5) Emerging market.--Any emerging market, as defined in
section 1542(f).''; and
(3) in subsection (c)(1), by striking ``food needs'' and
inserting ``food and fiber needs''.
(c) Conforming Amendments.--
(1) Section 501 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1737) is amended--
(A) in subsection (a), by striking ``emerging
democracies'' and inserting ``emerging markets''; and
(B) in subsection (b), by striking paragraph (1) and
inserting the following:
``(1) Emerging market.--The term `emerging market' means any
country that the Secretary determines--
``(A) is taking steps toward a market-oriented
economy through the food, agriculture, or rural business
sectors of the economy of the country; and
``(B) has the potential to provide a viable and
significant market for United States agricultural
commodities or products of United States agricultural
commodities.''.
(2) Section 201(d)(1)(C)(ii) of the Agricultural Trade Act
of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is amended by striking
``emerging democracies'' and inserting ``emerging markets''.
(3) Section 202(d)(3)(B) of the Agricultural Trade Act of
1978 (7 U.S.C. 5622(d)(3)(B)) is amended by striking ``emerging
democracies'' and inserting ``emerging markets''.
SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.
Section 1542(d)(1)(D) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is amended by
adding at the end the following: ``Notwithstanding any other provision
of law, the assistance shall include assistance for administrative and
overhead expenses of the International Cooperation and Development
Program Area of the Foreign Agriculture Service, to the extent that the
expenses were incurred pursuant to reimbursable agreements entered into
prior to September 30, 1993, the expenses do not exceed $2,000,000 per
year, and the expenses are not incurred for information technology
systems.''.
SEC. 279. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.
Section 7 of the Federal Meat Inspection Act (21 U.S.C. 607) is
amended by adding at the end the following:
``(f) <<NOTE: Standards.>> Lamb and Mutton.--The Secretary,
consistent with United States international obligations, shall establish
standards for the labeling of sheep carcasses, parts of sheep carcasses,
sheepmeat, and sheepmeat food products.''.
SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE
PHILIPPINES.
Section 583 of Public Law 100-202 (101 Stat. 1329-182) is repealed.
[[Page 110 STAT. 980]]
SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.
(a) <<NOTE: 7 USC 624 note.>> In General.--Sections 1551 through
1555, section 1558, and section 1559 of subtitle E of title XV of the
Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-
624; 104 Stat. 3696) (as redesignated by section 1011(d) of the Federal
Reports Elimination and Sunset Act of 1995 (Public Law 104-66; 109 Stat.
709)) are repealed.
(b) Language Proficiency.--Section 1556 of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5694
note) is amended by striking subsection (c).
SEC. 282. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON
CREDIT GUARANTEES.
It is the sense of Congress that--
(1) in negotiations to establish multilateral disciplines on
agricultural export credits and credit guarantees, the United
States should not agree to any arrangement that is incompatible
with the provisions of United States law that authorize
agricultural export credits and credit guarantees;
(2) in the negotiations (which are held under the auspices
of the Organization for Economic Cooperation and Development),
the United States should not reach any agreement that fails to
impose disciplines on the practices of foreign government
trading entities such as the Australian Wheat Board, the
Canadian Wheat Board, the New Zealand Dairy Board, and the
Australian Dairy Board; and
(3) the disciplines should include greater openness in the
operations of the entities as long as the entities are
subsidized by the foreign government or have monopolies for
exports of a commodity that are sanctioned by the foreign
government.
SEC. 283. <<NOTE: 22 USC 288 note.>> INTERNATIONAL COTTON ADVISORY
COMMITTEE.
(a) <<NOTE: President.>> In General.--The President shall ensure
that the Government of the United States participates as a full member
of the International Cotton Advisory Committee.
(b) Representation by the Secretary.--The Secretary of Agriculture
shall represent the Government of the United States as a member of the
International Cotton Advisory Committee and shall delegate the primary
responsibility to represent the Government of the United States to
appropriately qualified individuals.
TITLE III--CONSERVATION
Subtitle A--Definitions
SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND
CONSERVATION.
(a) Conservation Plan and Conservation System.--Section 1201(a) of
the Food Security Act of 1985 (16 U.S.C. 3801(a)) is amended--
(1) by redesignating paragraphs (2) through (16) as
paragraphs (4) through (18), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Conservation plan.--The term `conservation plan' means
the document that--
``(A) applies to highly erodible cropland;
[[Page 110 STAT. 981]]
``(B) describes the conservation system applicable
to the highly erodible cropland and describes the
decisions of the person with respect to location, land
use, tillage systems, and conservation treatment
measures and schedule; and
``(C) is approved by the local soil conservation
district, in consultation with the local committees
established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b)(5)) and the Secretary, or by the Secretary.
``(3) Conservation system.--The term `conservation system'
means a combination of 1 or more conservation measures or
management practices that--
``(A) are based on local resource conditions,
available conservation technology, and the standards and
guidelines contained in the Natural Resources
Conservation Service field office technical guides; and
``(B) are designed to achieve, in a cost effective
and technically practicable manner, a substantial
reduction in soil erosion or a substantial improvement
in soil conditions on a field or group of fields
containing highly erodible cropland when compared to the
level of erosion or soil conditions that existed before
the application of the conservation measures and
management practices.''.
(b) Field.--Section 1201(a) of the Food Security Act of <<NOTE: 16
USC 3801.>> 1985 is amended by striking paragraph (7) (as redesignated
by subsection (a)(1)) and inserting the following:
``(7) Field.--The term `field' means a part of a farm that
is separated from the balance of the farm by permanent
boundaries such as fences, roads, permanent waterways, or other
similar features. At the option of the owner or operator of the
farm, croplines may also be used to delineate a field if farming
practices make it probable that the croplines are not subject to
change. Any highly erodible land on which an agricultural
commodity is produced after December 23, 1985, and that is not
exempt under section 1212, shall be considered as part of the
field in which the land was included on December 23, 1985,
unless the owner and Secretary agree to modification of the
boundaries of the field to carry out this title.''.
(c) Highly Erodible Land.--Section 1201(a)(9) of the Food Security
Act of 1985 (as redesignated by subsection (a)(1)) is amended by adding
at the end the following:
``(C) <<NOTE: Federal Register,
publication.>> Equations.--Not later than 60 days after
the date of enactment of this subparagraph, the
Secretary shall publish in the Federal Register the
universal soil loss equation and wind erosion equation
used by the Department of Agriculture as of that date.
The Secretary may not change the equations after that
date except following notice and comment in a manner
consistent with section 553 of title 5, United States
Code.''.
(d) Conforming Amendments.--Section 1212 of the Food Security Act of
1985 (16 U.S.C. 3812) is amended--
(1) in the first sentence of subsection (a)(2), by striking
``that documents'' and all that follows through ``by the
Secretary'';
[[Page 110 STAT. 982]]
(2) in subsection (c)(3), by striking ``based on'' and all
that follows through ``and the Secretary,'' and inserting ``, in
which case,'';
(3) in subsection (e)(1)(A), by striking ``conservation
compliance plan'' and inserting ``conservation plan''; and
(4) in subsection (f)--
(A) in paragraph (1), by striking ``that documents''
and all that follows through ``under subsection (a)'';
(B) in paragraph (3), by striking ``prepared under
subsection (a)''; and
(C) in paragraph (4), by striking ``that documents''
and all that follows through ``subsection (a)''.
Subtitle B--Highly Erodible Land Conservation
SEC. 311. PROGRAM INELIGIBILITY.
<<NOTE: Effective date.>> Effective 90 days after the date of
enactment of this Act, section 1211 of the Food Security Act of 1985 (16
U.S.C. 3811) is amended--
(1) in the matter preceding paragraph (1), by striking
``following the date of enactment of this Act,'';
(2) in paragraph (1)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) contract payments under a production
flexibility contract, marketing assistance loans, and
any type of price support or payment made available
under the Agricultural Market Transition Act, the
Commodity Credit Corporation Charter Act (15 U.S.C. 714
et seq.), or any other Act;'';
(B) by striking subparagraph (C);
(C) in subparagraph (D), by striking ``made under''
and all that follows through ``August 14, 1989'';
(D) in subparagraph (E), by striking ``Farmers Home
Administration'' and inserting ``Consolidated Farm
Service Agency''; and
(E) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(3) by striking paragraph (3) and inserting the following:
``(3) during the crop year--
``(A) a payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D;
``(B) a payment under any other provision of
subtitle D;
``(C) a payment under section 401 or 402 of the
Agricultural Credit Act of 1978 (16 U.S.C. 2201 and
2202); or
``(D) a payment, loan, or other assistance under
section 3 or 8 of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003 and 1006a).''.
SEC. 312. CONSERVATION RESERVE LANDS.
Section 1212(a)(3) of the Food Security Act of 1985 (16 U.S.C.
3812(a)(3)) is amended by striking ``shall, if the conservation plan
established under this subtitle for such land requires structures to be
constructed,'' and inserting ``shall only be required to apply
[[Page 110 STAT. 983]]
a conservation plan established under this subtitle. The person shall
not be required to meet a higher conservation standard than the standard
applied to other highly erodible cropland located within the same area.
If the person's conservation plan requires structures to be constructed,
the person shall''.
SEC. 313. GOOD FAITH EXEMPTION.
(a) Grace Period To Resume Conservation Compliance.--Section
1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 3812(f)(1)) is
amended--
(1) by striking ``Except to the extent provided in paragraph
(2), no'' and inserting ``No''; and
(2) by striking ``such person has--'' and all that follows
through the period at the end of subparagraph (B) and inserting
the following: ``the person has acted in good faith and without
an intent to violate this subtitle. A person who meets the
requirements of this paragraph shall be allowed a reasonable
period of time, as determined by the Secretary, but not to
exceed 1 year, during which to implement the measures and
practices necessary to be considered to be actively applying the
person's conservation plan.''.
(b) Special Penalties Regarding Certain Highly Erodible Cropland.--
Section 1212(f)(2) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(2)) is amended by striking ``meets the requirements of paragraph
(1)'' and inserting ``with respect to highly erodible cropland that was
not in production prior to December 23, 1985, and has acted in good
faith and without an intent to violate the provisions''.
(c) Conforming Amendment.--Section 1212(f)(4) of the Food Security
Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by striking the last
sentence.
SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM CONSERVATION
PLANS.
Section 1212(f) of the Food Security Act of 1985 (16 U.S.C.
3812(f)(4)) is amended--
(1) in paragraph (4)(C), by striking ``problem'' and
inserting ``problem, including weather, pest, and disease
problems''; and
(2) by adding at the end the following:
``(5) Expedited procedures for temporary variances.--After
consultation with local conservation districts, the Secretary
shall establish expedited procedures for the consideration and
granting of temporary variances under paragraph (4)(C). If the
request for a temporary variance under paragraph (4)(C) involves
the use of practices or measures to address weather, pest, or
disease problems, the Secretary shall make a decision on whether
to grant the variance during the 30-day period beginning on the
date of receipt of the request. If the Secretary fails to render
a decision during the period, the temporary variance shall be
considered granted.''.
SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND
CONSERVATION SYSTEMS.
(a) Development and Implementation.--The Food Security Act of 1985
is amended--
(1) by redesignating section 1213 (16 U.S.C. 3813) as
section 1214; and
[[Page 110 STAT. 984]]
(2) by inserting after section 1212 (16 U.S.C. 3812) the
following:
``SEC. 1213. <<NOTE: 16 USC 3812a.>> DEVELOPMENT AND IMPLEMENTATION OF
CONSERVATION PLANS AND CONSERVATION SYSTEMS.
``(a) Technical Requirements.--In connection with the standards and
guidelines contained in Natural Resources Conservation Service field
office technical guides applicable to the development and use of
conservation measures and management practices as part of a conservation
system, the Secretary shall ensure that the standards and guidelines
permit a person to use a conservation system that--
``(1) is technically and economically feasible;
``(2) is based on local resource conditions and available
conservation technology;
``(3) is cost-effective; and
``(4) does not cause undue economic hardship on the person
applying the conservation system under the person's conservation
plan.
``(b) Measurement of Erosion Reduction.--For the purpose of
determining whether there is a substantial reduction in soil erosion on
a field containing highly erodible cropland, the measurement of erosion
reduction achieved by the application of a conservation system under a
person's conservation plan shall be based on the estimated annual level
of erosion at the time of the measurement compared to the estimated
annual level of erosion that existed before the implementation of the
conservation measures and management practices provided for in the
conservation system.
``(c) Residue Measurement.--
``(1) Responsibilities of the secretary.--For the purpose of
measuring the level of residue on a field, the Secretary shall--
``(A) take into account any residue incorporated
into the top 2 inches of soil, as well as the growing
crop, in the measurement;
``(B) provide technical guidelines for acceptable
residue measurement methods;
``(C) provide a certification system for third
parties to perform residue measurements; and
``(D) provide for the acceptance and use of
information and data voluntarily provided by the
producer regarding the field.
``(2) Acceptance of producer measurements.--Annual residue
measurements supplied by a producer (including measurements
performed by a certified third party) shall be used by the
Secretary if the Secretary determines that the measurements
indicate that the residue level for the field meets the level
required under the conservation plan.
``(d) Certification of Compliance.--
``(1) In general.--For the purpose of determining the
eligibility of a person for program benefits specified in
section 1211 at the time application is made for the benefits,
the Secretary shall permit the person to certify that the person
is complying with the person's conservation plan.
``(2) Status reviews.--If a person makes a certification
under paragraph (1), the Secretary shall not be required to
carry out a review of the status of compliance of the person
[[Page 110 STAT. 985]]
with the conservation plan under which the conservation system
is being applied.
``(3) Revisions and modifications.--The Secretary shall
permit a person who makes a certification under paragraph (1)
with respect to a conservation plan to revise the conservation
plan in any manner, if the same level of conservation treatment
provided for by the conservation system under the person's
conservation plan is maintained. The Secretary may not revise
the person's conservation plan without the concurrence of the
person.
``(e) Technical Assistance.--The Secretary shall, using available
resources and consistent with the Secretary's other conservation
responsibilities and objectives, provide technical assistance to a
person throughout the development, revision, and application of the
conservation plan and any conservation system of the person. At the
request of the person, the Secretary may provide technical assistance
regarding conservation measures and management practices for other lands
of the person that do not contain highly erodible cropland.
``(f) Encouragement of On-Farm Research.--To encourage on-farm
conservation research, the Secretary may allow a person to include in
the person's conservation plan or a conservation system under the plan,
on a field trial basis, practices that are not currently approved but
that the Secretary considers have a reasonable likelihood of success.''.
(b) Treatment of Technical Determinations.--Section 226(d)(2) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6932(d)(2)) is amended--
(1) by striking ``determination.--With'' and inserting
``determination.--
``(A) In general.--With''; and
(2) by adding at the end the following:
``(B) Economic hardship.--After a technical
determination has been made, on a producer's request, if
a county or area committee determines that the
application of the producer's conservation system would
impose an undue economic hardship on the producer, the
committee shall provide the producer with relief to
avoid the hardship.''.
SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.
Subtitle B of title XII of the Food Security Act of 1985 (as amended
by section 315(a)(1)) is amended by adding at the end the following:
``SEC. 1215. <<NOTE: 16 USC 3814.>> NOTICE AND INVESTIGATION OF POSSIBLE
COMPLIANCE DEFICIENCIES.
``(a) In General.--An employee of the Department of Agriculture who
observes a possible compliance deficiency or other potential violation
of a conservation plan or this subtitle while providing on-site
technical assistance shall provide to the responsible persons, not later
than 45 days after observing the possible violation, information
regarding actions needed to comply with the plan and this subtitle. The
employee shall provide the information in lieu of reporting the
observation as a compliance violation.
``(b) Corrective Action.--The responsible persons shall attempt to
correct the deficiencies as soon as practicable after receiving the
information.
[[Page 110 STAT. 986]]
``(c) Review.--If the corrective action is not fully implemented not
later than 1 year after the responsible persons receive the information,
the Secretary may conduct a review of the status of compliance of the
persons with the conservation plan and this subtitle.''.
SEC. 317. <<NOTE: 16 USC 3811 note.>> WIND EROSION ESTIMATION PILOT
PROJECT.
(a) In General.--The Secretary of Agriculture shall conduct a pilot
project to review, and modify as appropriate, the use of wind erosion
factors under the highly erodible conservation requirements of subtitle
B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et
seq.).
(b) Selection of Counties and Producers.--The pilot project shall be
conducted for producers in those counties that--
(1) have approximately 100 percent of their cropland
determined to be highly erodible under title XII of the Act;
(2) have a reasonable likelihood that the use of wind
erosion factors under title XII of the Act have resulted in an
inequitable application of the highly erodible land requirements
of title XII of the Act; and
(3) if the use of the land classification system under
section 1201(a)(9)(A) of the Act (as redesignated by section
301(a)(1)) may result in a more accurate delineation of the
cropland.
(c) Errors in Delineation.--If the Secretary determines that a
significant error has occurred in delineating cropland under the pilot
project, the Secretary shall, at the request of the owners or operators
of the cropland, conduct a new delineation of the cropland using the
most accurate available delineation process, as determined by the
Secretary.
Subtitle C--Wetland Conservation
SEC. 321. PROGRAM INELIGIBILITY.
(a) Program Ineligibility.--Section 1221 of the Food Security Act of
1985 (16 U.S.C. 3821) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by striking the section heading and all that follows
through the end of subsection (a) and inserting the following:
``SEC. 1221. PROGRAM INELIGIBILITY.
``(a) Production on Converted Wetland.--Except as provided in this
subtitle and notwithstanding any other provision of law, any person who
in any crop year produces an agricultural commodity on converted
wetland, as determined by the Secretary, shall be--
``(1) in violation of this section; and
``(2) ineligible for loans or payments in an amount
determined by the Secretary to be proportionate to the severity
of the violation.
``(b) Ineligibility for Certain Loans and Payments.--If a person is
determined to have committed a violation under subsection (a) during a
crop year, the Secretary shall determine which of, and the amount of,
the following loans and payments for which the person shall be
ineligible:
``(1) Contract payments under a production flexibility
contract, marketing assistance loans, and any type of price
support or payment made available under the Agricultural Market
[[Page 110 STAT. 987]]
Transition Act, the Commodity Credit Corporation Charter Act (15
U.S.C. 714 et seq.), or any other Act.
``(2) A loan made or guaranteed under the Consolidated Farm
and Rural Development Act (7 U.S.C. 1921 et seq.) or any other
provision of law administered by the Consolidated Farm Service
Agency, if the Secretary determines that the proceeds of the
loan will be used for a purpose that will contribute to
conversion of a wetland (other than as provided in this
subtitle) to produce an agricultural commodity.
``(3) During the crop year:
``(A) A payment made pursuant to a contract entered
into under the environmental quality incentives program
under chapter 4 of subtitle D.
``(B) A payment under any other provision of
subtitle D.
``(C) A payment under section 401 or 402 of the
Agricultural Credit Act of 1978 (16 U.S.C. 2201 and
2202).
``(D) A payment, loan, or other assistance under
section 3 or 8 of the Watershed Protection and Flood
Prevention Act (16 U.S.C. 1003 and 1006a).''.
(b) Conforming Amendments.--
(1) Section 1221(c) of the Food Security Act of 1985 (as
redesignated by subsection (a)(1)) is amended-- <<NOTE: 16 USC
3821.>>
(A) by striking ``Except'' and inserting ``Wetland
Conversion.--Except'';
(B) by striking ``subsequent to the date of
enactment of the Food, Agriculture, Conservation, and
Trade Act of 1990'' and inserting ``beginning after
November 28, 1990,''; and
(C) by striking ``subsections (a) (1) through (3)''
and inserting ``subsection (b)''.
(2) Section 1221 of the Food Security Act of 1985 (as
amended by subsection (a)) is amended by adding at the end the
following:
``(d) Prior Loans.--This section shall not apply to a loan described
in subsection (b) made before December 23, 1985.''.
SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.
(a) Delineation of Wetlands.--Section 1222 of the Food Security Act
of 1985 (16 U.S.C. 3822) is amended by striking subsection (a) and
inserting the following:
``(a) Delineation by the Secretary.--
``(1) In general.--Subject to subsection (b) and paragraph
(6), the Secretary shall delineate, determine, and certify all
wetlands located on subject land on a farm.
``(2) Wetland delineation maps.--The Secretary shall
delineate wetlands on wetland delineation maps. On the request
of a person, the Secretary shall make a reasonable effort to
make an on-site wetland determination prior to delineation.
``(3) Certification.--On providing notice to affected
persons, the Secretary shall--
``(A) certify whether a map is sufficient for the
purpose of making a determination of ineligibility for
program benefits under section 1221; and
``(B) provide an opportunity to appeal the
certification prior to the certification becoming final.
[[Page 110 STAT. 988]]
``(4) Duration of certification.--A final certification made
under paragraph (3) shall remain valid and in effect as long as
the area is devoted to an agricultural use or until such time as
the person affected by the certification requests review of the
certification by the Secretary.
``(5) Review of mapping on appeal.--In the case of an appeal
of the Secretary's certification, the Secretary shall review and
certify the accuracy of the mapping of all land subject to the
appeal to ensure that the subject land has been accurately
delineated. Prior to rendering a decision on the appeal, the
Secretary shall conduct an on-site inspection of the subject
land on a farm.
``(6) Reliance on prior certified delineation.--No person
shall be adversely affected because of having taken an action
based on a previous certified wetland delineation by the
Secretary. The delineation shall not be subject to a subsequent
wetland certification or delineation by the Secretary, unless
requested by the person under paragraph (4).''.
(b) Exemptions.--Section 1222 of the Food Security Act of 1985 (16
U.S.C. 3822) is amended by striking subsection (b) and inserting the
following:
``(b) Exemptions.--No person shall become ineligible under section
1221 for program loans or payments under the following circumstances:
``(1) As the result of the production of an agricultural
commodity on the following lands:
``(A) A converted wetland if the conversion of the
wetland was commenced before December 23, 1985.
``(B) Land that is a nontidal drainage or irrigation
ditch excavated in upland.
``(C) A wet area created by a water delivery system,
irrigation, irrigation system, or application of water
for irrigation.
``(D) A wetland on which the owner or operator of a
farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that is
consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a
natural wetland characteristic.
``(E) Land that is an artificial lake or pond
created by excavating or diking land (that is not a
wetland) to collect and retain water and that is used
primarily for livestock watering, fish production,
irrigation, wildlife, fire control, flood control,
cranberry growing, or rice production, or as a settling
pond.
``(F) A wetland that is temporarily or incidentally
created as a result of adjacent development activity.
``(G) A converted wetland if the original conversion
of the wetland was commenced before December 23, 1985,
and the Secretary determines the wetland characteristics
returned after that date as a result of--
``(i) the lack of maintenance of drainage,
dikes, levees, or similar structures;
``(ii) a lack of management of the lands
containing the wetland; or
[[Page 110 STAT. 989]]
``(iii) circumstances beyond the control of
the person.
``(H) A converted wetland, if--
``(i) the converted wetland was determined by
the Natural Resources Conservation Service to have
been manipulated for the production of an
agricultural commodity or forage prior to December
23, 1985, and was returned to wetland conditions
through a voluntary restoration, enhancement, or
creation action subsequent to that determination;
``(ii) technical determinations regarding the
prior site conditions and the restoration,
enhancement, or creation action have been
adequately documented by the Natural Resources
Conservation Service;
``(iii) the proposed conversion action is
approved by the Natural Resources Conservation
Service prior to implementation; and
``(iv) the extent of the proposed conversion
is limited so that the conditions will be at least
equivalent to the wetland functions and values
that existed prior to implementation of the
voluntary wetland restoration, enhancement, or
creation action.
``(2) For the conversion of the following:
``(A) An artificial lake or pond created by
excavating or diking land that is not a wetland to
collect and retain water and that is used primarily for
livestock watering, fish production, irrigation,
wildlife, fire control, flood control, cranberry
growing, rice production, or as a settling pond.
``(B) A wetland that is temporarily or incidentally
created as a result of adjacent development activity.
``(C) A wetland on which the owner or operator of a
farm or ranch uses normal cropping or ranching practices
to produce an agricultural commodity in a manner that is
consistent for the area where the production is possible
as a result of a natural condition, such as drought, and
is without action by the producer that destroys a
natural wetland characteristic.
``(D) A wetland previously identified as a converted
wetland (if the original conversion of the wetland was
commenced before December 23, 1985), but that the
Secretary determines returned to wetland status after
that date as a result of--
``(i) the lack of maintenance of drainage,
dikes, levees, or similar structures;
``(ii) a lack of management of the lands
containing the wetland; or
``(iii) circumstances beyond the control of
the person.
``(E) A wetland, if--
``(i) the wetland was determined by the
Natural Resources Conservation Service to have
been manipulated for the production of an
agricultural commodity or forage prior to December
23, 1985, and was returned to wetland conditions
through a voluntary restoration, enhancement, or
creation action subsequent to that determination;
[[Page 110 STAT. 990]]
``(ii) technical determinations regarding the
prior site conditions and the restoration,
enhancement, or creation action have been
adequately documented by the Natural Resources
Conservation Service;
``(iii) the proposed conversion action is
approved by the Natural Resources Conservation
Service prior to implementation; and
``(iv) the extent of the proposed conversion
is limited so that the conditions will be at least
equivalent to the wetland functions and values
that existed prior to implementation of the
voluntary wetland restoration, enhancement, or
creation action.''.
(c) Identification of Minimal Effect Exemptions.--Section 1222 of
the Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking
subsection (d) and inserting the following:
``(d) Identification of Minimal Effect Exemptions.--For purposes of
applying the minimal effect exemption under subsection (f)(1), the
Secretary shall identify by regulation categorical minimal effect
exemptions on a regional basis to assist persons in avoiding a violation
of the ineligibility provisions of section 1221. The Secretary shall
ensure that employees of the Department of Agriculture who administer
this subtitle receive appropriate training to properly apply the minimal
effect exemptions determined by the Secretary.''.
(d) Minimal Effect and Mitigation Exemptions.--Section 1222 of the
Food Security Act of 1985 (16 U.S.C. 3822) is amended by striking
subsection (f) and inserting the following:
``(f) Minimal Effect; Mitigation.--The Secretary shall exempt a
person from the ineligibility provisions of section 1221 for any action
associated with the production of an agricultural commodity on a
converted wetland, or the conversion of a wetland, if 1 or more of the
following conditions apply, as determined by the Secretary:
``(1) The action, individually and in connection with all
other similar actions authorized by the Secretary in the area,
will have a minimal effect on the functional hydrological and
biological value of the wetlands in the area, including the
value to waterfowl and wildlife.
``(2) The wetland and the wetland values, acreage, and
functions are mitigated by the person through the restoration of
a converted wetland, the enhancement of an existing wetland, or
the creation of a new wetland, and the restoration, enhancement,
or creation is--
``(A) in accordance with a wetland conservation
plan;
``(B) in advance of, or concurrent with, the action;
``(C) not at the expense of the Federal Government;
``(D) in the case of enhancement or restoration of
wetlands, on not greater than a 1-for-1 acreage basis
unless more acreage is needed to provide equivalent
functions and values that will be lost as a result of
the wetland conversion to be mitigated;
``(E) in the case of creation of wetlands, on
greater than a 1-for-1 acreage basis if more acreage is
needed to provide equivalent functions and values that
will be lost as a result of the wetland conversion that
is mitigated;
``(F) on lands in the same general area of the local
watershed as the converted wetland; and
[[Page 110 STAT. 991]]
``(G) with respect to the restored, enhanced, or
created wetland, made subject to an easement that--
``(i) is recorded on public land records;
``(ii) remains in force for as long as the
converted wetland for which the restoration,
enhancement, or creation to be mitigated remains
in agricultural use or is not returned to its
original wetland classification with equivalent
functions and values; and
``(iii) prohibits making alterations to the
restored, enhanced, or created wetland that lower
the wetland's functions and values.
``(3) The wetland was converted after December 23, 1985, but
before November 28, 1990, and the wetland values, acreage, and
functions are mitigated by the producer through the requirements
of subparagraphs (A), (B), (C), (D), (F), and (G) of paragraph
(2).
``(4) The action was authorized by a permit issued under
section 404 of the Federal Water Pollution Control Act (33
U.S.C. 1344) and the wetland values, acreage, and functions of
the converted wetland were adequately mitigated for the purposes
of this subtitle.''.
(e) References to Producer.--Section 1222(g) of the Food Security
Act of 1985 (16 U.S.C. 3822(g)) is amended by striking ``producer'' and
inserting ``person''.
(f) Good Faith Exemption.--Section 1222 of the Food Security Act of
1985 (16 U.S.C. 3822) is amended by striking subsection (h) and
inserting the following:
``(h) Good Faith Exemption.--
``(1) Exemption described.--The Secretary may waive a
person's ineligibility under section 1221 for program loans,
payments, and benefits as the result of the conversion of a
wetland subsequent to November 28, 1990, or the production of an
agricultural commodity on a converted wetland, if the Secretary
determines that the person has acted in good faith and without
intent to violate this subtitle.
``(2) Period for compliance.--The Secretary shall provide a
person who the Secretary determines has acted in good faith and
without intent to violate this subtitle with a reasonable
period, but not to exceed 1 year, during which to implement the
measures and practices necessary to be considered to actively
restoring the subject wetland.''.
(g) Restoration.--Section 1222(i) of the Food Security Act of 1985
(16 U.S.C. 3822(i)) is amended by inserting before the period at the end
the following: ``or has otherwise mitigated for the loss of wetland
values, as determined by the Secretary, through the restoration,
enhancement, or creation of wetland values in the same general area of
the local watershed as the converted wetland''.
(h) Determinations.--Section 1222 of the Food Security Act of 1985
(16 U.S.C. 3822) is amended by striking subsection (j) and inserting the
following:
``(j) Determinations; Restoration and Mitigation Plans; Monitoring
Activities.--Technical determinations, the development of restoration
and mitigation plans, and monitoring activities under this section shall
be made by the National Resources Conservation Service.''.
[[Page 110 STAT. 992]]
(i) Mitigation Banking.--Section 1222 of the Food Security Act of
1985 (16 U.S.C. 3822) is amended by adding at the end the following:
``(k) Mitigation Banking Program.--Using authorities available to
the Secretary, the Secretary may operate a pilot program for mitigation
banking of wetlands to assist persons to increase the efficiency of
agricultural operations while protecting wetland functions and values.
Subsection (f)(2)(C) shall not apply to this subsection.''.
SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.
Section 1223 of the Food Security Act of 1985 (16 U.S.C. 3823) is
repealed.
SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.
The Food Security Act of 1985 (as amended by section 323) is amended
by inserting after section 1222 (16 U.S.C. 3822) the following:
``SEC. 1223. <<NOTE: 16 USC 3823.>> AFFILIATED PERSONS.
``If a person is affected by a reduction in benefits under section
1221 and the affected person is affiliated with other persons for the
purpose of receiving the benefits, the benefits of each affiliated
person shall be reduced under section 1221 in proportion to the interest
held by the affiliated person.''.
SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS IN
MEMORANDUM OF AGREEMENT.
(a) Agricultural Lands.--For purposes of implementing the memorandum
of agreement entered into between the Department of Agriculture, the
Environmental Protection Agency, the Department of the Interior, and the
Department of the Army on January 6, 1994, relating to the delineation
of wetlands, the term ``agricultural lands'' shall include--
(1) native pasture, rangelands, and other lands used to
produce or support the production of livestock; and
(2) tree farms.
(b) Wetland Conservation.--Subsection (a) shall not apply with
respect to the delineation of wetlands under subtitle C of title XII of
the Food Security Act of 1985 (16 U.S.C. 3821 et seq.) or to the
enforcement of the subtitle.
(c) Successor Memorandum.--Subsection (a) shall apply to any
amendment to or successor of the memorandum of agreement described in
subsection (a).
SEC. 326. <<NOTE: 16 USC 3821 note.>> EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall become
effective 90 days after the date of enactment of this Act.
Subtitle D--Environmental Conservation Acreage Reserve Program
SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
Section 1230 of the Food Security Act of 1985 (16 U.S.C. 3830) is
amended to read as follows:
[[Page 110 STAT. 993]]
``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 calendar
years, the Secretary shall establish an environmental
conservation acreage reserve program (referred to in this
section as `ECARP') to be implemented through contracts and the
acquisition of easements to assist owners and operators of farms
and ranches to conserve and enhance soil, water, and related
natural resources, including grazing land, wetland, and wildlife
habitat.
``(2) Means.--The Secretary shall carry out the ECARP by--
``(A) providing for the long-term protection of
environmentally sensitive land; and
``(B) providing technical and financial assistance
to farmers and ranchers to--
``(i) improve the management and operation of
the farms and ranches; and
``(ii) reconcile productivity and
profitability with protection and enhancement of
the environment.
``(3) Programs.--The ECARP shall consist of--
``(A) the conservation reserve program established
under subchapter B;
``(B) the wetlands reserve program established under
subchapter C; and
``(C) the environmental quality incentives program
established under chapter 4.
``(b) Administration.--
``(1) <<NOTE: Contracts.>> In general.--In carrying out the
ECARP, the Secretary shall enter into contracts with owners and
operators and acquire interests in land through easements from
owners, as provided in this chapter and chapter 4.
``(2) Prior enrollments.--Acreage enrolled in the
conservation reserve or wetlands reserve program prior to the
date of enactment of this paragraph shall be considered to be
placed into the ECARP.
``(c) Conservation Priority Areas.--
``(1) Designation.--The Secretary may designate watersheds,
multistate areas, or regions of special environmental
sensitivity as conservation priority areas that are eligible for
enhanced assistance under this chapter and chapter 4.
``(2) Assistance.--The Secretary may designate areas as
conservation priority areas to assist, to the maximum extent
practicable, agricultural producers within the conservation
priority areas to comply with nonpoint source pollution
requirements under the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.) and other Federal and State environmental
laws and to meet other conservation needs.
``(3) Producers.--The Secretary may provide technical
assistance, cost-share payments, and incentive payments to
producers in a conservation priority area under this chapter and
chapter 4 based on--
``(A) the significance of the soil, water, wildlife
habitat, and related natural resource problems in a
watershed, multistate area, or region; and
[[Page 110 STAT. 994]]
``(B) the structural practices or land management
practices that best address the problems, and that
maximize environmental benefits for each dollar
expended, as determined by the Secretary.''.
SEC. 332. CONSERVATION RESERVE PROGRAM.
(a) Program Extensions.--
(1) Conservation reserve program.--Section 1231 of the Food
Security Act of 1985 (16 U.S.C. 3831) is amended by striking
``1995'' each place it appears and inserting ``2002''.
(2) Duties of owners and operators.--Section 1232(c) of the
Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by
striking ``1995'' and inserting ``2002''.
(b) Maximum Enrollment.--Section 1231 of the Food Security Act of
1985 (16 U.S.C. 3831) is amended by striking subsection (d) and
inserting the following:
``(d) Maximum Enrollment.--The Secretary may maintain up to
36,400,000 acres in the conservation reserve at any one time during the
1986 through 2002 calendar years (including contracts extended by the
Secretary pursuant to section 1437(c) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 3831
note)).''.
(c) Optional Contract Termination by Producers.--Section 1235 of the
Food Security Act of 1985 (16 U.S.C. 3835) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``3-year'' and
inserting ``1-year''; and
(B) in paragraph (2)(B)(i), by striking ``3 years''
and inserting ``1 year''; and
(2) by adding at the end the following:
``(e) Termination by Owner or Operator.--
``(1) Early termination authorized.--Subject to the other
provisions of this subsection, the Secretary shall allow a
participant who entered into a contract before January 1, 1995,
to terminate the contract at any time if the contract has been
in effect for at least 5 years. The termination shall not
relieve the participant of liability for a contract violation
occurring before the date of the termination. The participant
shall provide the Secretary with reasonable notice of the
participant's desire to terminate the contract.
``(2) Certain lands excepted.--The following lands shall not
be subject to an early termination of contract under this
subsection:
``(A) Filterstrips, waterways, strips adjacent to
riparian areas, windbreaks, and shelterbelts.
``(B) Land with an erodibility index of more than
15.
``(C) Other lands of high environmental value
(including wetlands), as determined by the Secretary.
``(3) Effective date.--The contract termination shall become
effective 60 days after the date on which the owner or operator
submits the notice required under paragraph (1).
``(4) Prorated rental payment.--If a contract entered into
under this subchapter is terminated under this subsection before
the end of the fiscal year for which a rental payment is due,
the Secretary shall provide a prorated rental payment covering
the portion of the fiscal year during which the contract was in
effect.
[[Page 110 STAT. 995]]
``(5) Renewed enrollment.--The termination of a contract
entered into under this subchapter shall not affect the ability
of the owner or operator who requested the termination to submit
a subsequent bid to enroll the land that was subject to the
contract into the conservation reserve.
``(6) Conservation requirements.--If land that was subject
to a contract is returned to production of an agricultural
commodity, the conservation requirements under subtitles B and C
shall apply to the use of the land to the extent that the
requirements are similar to those requirements imposed on other
similar lands in the area, except that the requirements may not
be more onerous than the requirements imposed on other lands.''.
(d) Enrollments in 1997.--Section 725 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 332), is amended
by striking ``: Provided,'' and all that follows through ``1997''.
SEC. 333. WETLANDS RESERVE PROGRAM.
(a) Enrollment.--Section 1237 of the Food Security Act of 1985 (16
U.S.C. 3837) is amended by striking subsection (b) and inserting the
following:
``(b) Enrollment Conditions.--
``(1) Maximum enrollment.--The total number of acres
enrolled in the wetlands reserve program shall not exceed
975,000 acres.
``(2) Methods of enrollment.--
``(A) In general.--Subject to subparagraph (B),
effective beginning October 1, 1996, to the maximum
extent practicable, the Secretary shall enroll into the
wetlands reserve program--
``(i) \1/3\ of the acres through the use of
permanent easements;
``(ii) \1/3\ of the acres through the use of
30-year easements; and
``(iii) \1/3\ of the acres through the use of
restoration cost-share agreements.
``(B) Temporary easements.--Effective beginning
October 1, 1996, the Secretary shall not enroll acres in
the wetlands reserve program through the use of new
permanent easements until the Secretary has enrolled at
least 75,000 acres in the program through the use of
temporary easements.''.
(b) Eligibility.--Section 1237(c) of the Food Security Act of 1985
(16 U.S.C. 3837(c)) is amended--
(1) by striking ``2000'' and inserting ``2002'';
(2) by redesignating paragraphs (1) and (2) as paragraphs
(2) and (3), respectively; and
(3) by inserting after ``determines that--'' the following:
``(1) such land maximizes wildlife benefits and wetland
values and functions;''.
(c) Other Eligible Lands.--Section 1237(d) of the Food Security Act
of 1985 (16 U.S.C. 3837(d)) is amended--
(1) by inserting after ``subsection (c)'' the following ``,
land that maximizes wildlife benefits and that is''; and
[[Page 110 STAT. 996]]
(2) in paragraph (2), by striking ``and'' at the end and
inserting ``or''.
(d) Easements.--Section 1237A of the Food Security Act of 1985 (16
U.S.C. 3837a) is amended--
(1) in the section heading, by inserting before the period
at the end the following: ``and agreements'';
(2) by striking subsection (c) and inserting the following:
``(c) Restoration Plans.--The development of a restoration plan,
including any compatible use, under this section shall be made through
the local Natural Resources Conservation Service representative, in
consultation with the State technical committee.'';
(3) in subsection (f), by striking the third sentence and
inserting the following: ``Compensation may be provided in not
less than 5, nor more than 30, annual payments of equal or
unequal size, as agreed to by the owner and the Secretary.'';
and
(4) by adding at the end the following:
``(h) Restoration Cost-Share Agreements.--The Secretary may enroll
land into the wetlands reserve program through an agreement that
requires the landowner to restore wetlands on the land, if the agreement
does not provide the Secretary with an easement.''.
(e) Cost-Share and Technical Assistance.--Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking subsection
(b) and inserting the following:
``(b) Cost-Share and Technical Assistance.--
``(1) <<NOTE: Effective date.>> Easements.--Effective
beginning October 1, 1996, in making cost-share payments under
subsection (a)(1), the Secretary shall--
``(A) in the case of a permanent easement, pay the
owner an amount that is not less than 75 percent, but
not more than 100 percent, of the eligible costs; and
``(B) in the case of a 30-year easement, pay the
owner an amount that is not less than 50 percent, but
not more than 75 percent, of the eligible costs.
``(2) Restoration cost-share agreements.--In making cost-
share payments in connection with a restoration cost-share
agreement entered into under section 1237A(h), the Secretary
shall pay the owner an amount that is not less than 50 percent,
but not more than 75 percent, of the eligible costs.
``(3) Technical assistance.--The Secretary shall provide
owners with technical assistance to assist owners in complying
with the terms of easements and restoration cost-share
agreements.''.
(f) <<NOTE: 16 USC 3837 note.>> Effect on Existing Agreements.--The
amendments made by this section shall not affect the validity or terms
of any agreements entered into by the Secretary of Agriculture under
subchapter C of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3837 et seq.) before the date of
enactment of this Act or any payments required to be made in connection
with the agreements.
SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by adding at the end the following:
[[Page 110 STAT. 997]]
``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM
``SEC. 1240. <<NOTE: 16 USC 3839aa.>> PURPOSES.
``The purposes of the environmental quality incentives program
established by this chapter are to--
``(1) combine into a single program the functions of--
``(A) the agricultural conservation program
authorized by sections 7 and 8 of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590g and 590h) (as
in effect before the amendments made by section
336(a)(1) of the Federal Agriculture Improvement and
Reform Act of 1996);
``(B) the Great Plains conservation program
established under section 16(b) of the Soil Conservation
and Domestic Allotment Act (16 U.S.C. 590p(b)) (as in
effect before the amendment made by section 336(b)(1) of
the Federal Agriculture Improvement and Reform Act of
1996);
``(C) the water quality incentives program
established under chapter 2 (as in effect before the
amendment made by section 336(h) of the Federal
Agriculture Improvement and Reform Act of 1996); and
``(D) the Colorado River Basin salinity control
program established under section 202(c) of the Colorado
River Basin Salinity Control Act (43 U.S.C. 1592(c)) (as
in effect before the amendment made by section 336(c)(1)
of the Federal Agriculture Improvement and Reform Act of
1996); and
``(2) carry out the single program in a manner that
maximizes environmental benefits per dollar expended, and that
provides--
``(A) flexible technical and financial assistance to
farmers and ranchers that face the most serious threats
to soil, water, and related natural resources, including
grazing lands, wetlands, and wildlife habitat;
``(B) assistance to farmers and ranchers in
complying with this title and Federal and State
environmental laws, and encourages environmental
enhancement;
``(C) assistance to farmers and ranchers in making
beneficial, cost-effective changes to cropping systems,
grazing management, manure, nutrient, pest, or
irrigation management, land uses, or other measures
needed to conserve and improve soil, water, and related
natural resources; and
``(D) for the consolidation and simplification of
the conservation planning process to reduce
administrative burdens on producers.
``SEC. 1240A. <<NOTE: 16 USC 3839aa-1.>> DEFINITIONS.
``In this chapter:
``(1) Eligible land.--The term `eligible land' means
agricultural land (including cropland, rangeland, pasture, and
other land on which crops or livestock are produced), including
agricultural land that the Secretary determines poses a serious
threat to soil, water, or related resources by reason of the
soil types, terrain, climatic, soil, topographic, flood, or
saline characteristics, or other factors or natural hazards.
``(2) Land management practice.--The term `land management
practice' means a site-specific nutrient or manure
[[Page 110 STAT. 998]]
management, integrated pest management, irrigation management,
tillage or residue management, grazing management, or other land
management practice carried out on eligible land that the
Secretary determines is needed to protect, in the most cost-
effective manner, water, soil, or related resources from
degradation.
``(3) Livestock.--The term `livestock' means dairy cattle,
beef cattle, laying hens, broilers, turkeys, swine, sheep, and
such other animals as determined by the Secretary.
``(4) Producer.--The term `producer' means a person who is
engaged in livestock or agricultural production (as defined by
the Secretary).
``(5) Structural practice.--The term `structural practice'
means--
``(A) the establishment on eligible land of a site-
specific animal waste management facility, terrace,
grassed waterway, contour grass strip, filterstrip,
tailwater pit, permanent wildlife habitat, or other
structural practice that the Secretary determines is
needed to protect, in the most cost-effective manner,
water, soil, or related resources from degradation; and
``(B) the capping of abandoned wells on eligible
land.
``SEC. 1240B. <<NOTE: 16 USC 3839aa-2.>> ESTABLISHMENT AND
ADMINISTRATION OF ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
``(a) Establishment.--
``(1) In general.--During the 1996 through 2002 fiscal
years, the Secretary shall provide technical assistance, cost-
share payments, incentive payments, and education to producers,
who enter into contracts with the Secretary, through an
environmental quality incentives program in accordance with this
chapter.
``(2) Eligible practices.--
``(A) Structural practices.--A producer who
implements a structural practice shall be eligible for
any combination of technical assistance, cost-share
payments, and education.
``(B) Land management practices.--A producer who
performs a land management practice shall be eligible
for any combination of technical assistance, incentive
payments, and education.
``(b) Application and Term.--A contract between a producer and the
Secretary under this chapter may--
``(1) apply to 1 or more structural practices or 1 or more
land management practices, or both; and
``(2) have a term of not less than 5, nor more than 10,
years, as determined appropriate by the Secretary, depending on
the practice or practices that are the basis of the contract.
``(c) Structural Practices.--
``(1) Offer selection process.--The Secretary shall, to the
maximum extent practicable, establish a process for selecting
applications for financial assistance if there are numerous
applications for assistance for structural practices that would
provide substantially the same level of environmental benefits.
The process shall be based on--
``(A) a reasonable estimate of the projected cost of
the proposals and other factors identified by the
Secretary
[[Page 110 STAT. 999]]
for determining which applications will result in the
least cost to the program authorized by this chapter;
and
``(B) the priorities established under this subtitle
and such other factors determined by the Secretary that
maximize environmental benefits per dollar expended.
``(2) Concurrence of owner.--If the producer making an offer
to implement a structural practice is a tenant of the land
involved in agricultural production, for the offer to be
acceptable, the producer shall obtain the concurrence of the
owner of the land with respect to the offer.
``(d) Land Management Practices.--The Secretary shall establish an
application and evaluation process for awarding technical assistance or
incentive payments, or both, to a producer in exchange for the
performance of 1 or more land management practices by the producer.
``(e) Cost-Share Payments, Incentive Payments, and Technical
Assistance.--
``(1) Cost-share payments.--
``(A) In general.--The Federal share of cost-share
payments to a producer proposing to implement 1 or more
structural practices shall be not more than 75 percent
of the projected cost of the practice, as determined by
the Secretary, taking into consideration any payment
received by the producer from a State or local
government.
``(B) Limitation.--A producer who owns or operates a
large confined livestock operation (as defined by the
Secretary) shall not be eligible for cost-share payments
to construct an animal waste management facility.
``(C) Other payments.--A producer shall not be
eligible for cost-share payments for structural
practices on eligible land under this chapter if the
producer receives cost-share payments or other benefits
for the same land under chapter 1 or 3.
``(2) Incentive payments.--The Secretary shall make
incentive payments in an amount and at a rate determined by the
Secretary to be necessary to encourage a producer to perform 1
or more land management practices.
``(3) Technical assistance.--
``(A) Funding.--The Secretary shall allocate funding
under this chapter for the provision of technical
assistance according to the purpose and projected cost
for which the technical assistance is provided for a
fiscal year. The allocated amount may vary according to
the type of expertise required, quantity of time
involved, and other factors as determined appropriate by
the Secretary. Funding shall not exceed the projected
cost to the Secretary of the technical assistance
provided for a fiscal year.
``(B) Other authorities.--The receipt of technical
assistance under this chapter shall not affect the
eligibility of the producer to receive technical
assistance under other authorities of law available to
the Secretary.
``(C) Private sources.--The Secretary shall ensure
that the processes of writing and developing proposals
and plans for contracts under this chapter, and of
assisting in the implementation of structural practices
and land management practices covered by the contracts,
are open to individuals in agribusiness, including
agricultural
[[Page 110 STAT. 1000]]
producers, representatives from agricultural
cooperatives, agricultural input retail dealers, and
certified crop advisers. The requirements of this
subparagraph shall also apply to any other conservation
program of the Department of Agriculture that provides
incentive payments, technical assistance, or cost-share
payments.
``(f) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The Secretary
may modify or terminate a contract entered into with a producer
under this chapter if--
``(A) the producer agrees to the modification or
termination; and
``(B) the Secretary determines that the modification
or termination is in the public interest.
``(2) Involuntary termination.--The Secretary may terminate
a contract under this chapter if the Secretary determines that
the producer violated the contract.
``(g) Non-Federal Assistance.--The Secretary may request the
services of a State water quality agency, State fish and wildlife
agency, State forestry agency, or any other governmental or private
resource considered appropriate to assist in providing the technical
assistance necessary for the development and implementation of a
structural practice or land management practice.
``SEC. 1240C. <<NOTE: 16 USC 3839aa-3.>> EVALUATION OF OFFERS AND
PAYMENTS.
``In providing technical assistance, cost-share payments, and
incentive payments to producers, the Secretary shall accord a higher
priority to assistance and payments that--
``(1) are provided in conservation priority areas
established under section 1230(c);
``(2) maximize environmental benefits per dollar expended;
or
``(3) are provided in watersheds, regions, or conservation
priority areas in which State or local governments have
provided, or will provide, financial or technical assistance to
producers for the same conservation or environmental purposes.
``SEC. 1240D. <<NOTE: 16 USC 3839aa-4.>> DUTIES OF PRODUCERS.
``To receive technical assistance, cost-share payments, or incentive
payments under this chapter, a producer shall agree--
``(1) to implement an environmental quality incentives
program plan that describes conservation and environmental goals
to be achieved through a structural practice or land management
practice, or both, that is approved by the Secretary;
``(2) not to conduct any practices on the farm or ranch that
would tend to defeat the purposes of this chapter;
``(3) on the violation of a term or condition of the
contract at any time the producer has control of the land, to
refund any cost-share or incentive payment received with
interest, and forfeit any future payments under this chapter, as
determined by the Secretary;
``(4) on the transfer of the right and interest of the
producer in land subject to the contract, unless the transferee
of the right and interest agrees with the Secretary to assume
all obligations of the contract, to refund all cost-share
payments and incentive payments received under this chapter, as
determined by the Secretary;
[[Page 110 STAT. 1001]]
``(5) to supply information as required by the Secretary to
determine compliance with the environmental quality incentives
program plan and requirements of the program; and
``(6) to comply with such additional provisions as the
Secretary determines are necessary to carry out the
environmental quality incentives program plan.
``SEC. 1240E. <<NOTE: 16 USC 3839aa-5.>> ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM PLAN.
``(a) In General.--To be eligible to enter into a contract under the
environmental quality incentives program, an owner or producer of a
livestock or agricultural operation must submit to the Secretary for
approval a plan of operations that incorporates such conservation
practices, and is based on such principles, as the Secretary considers
necessary to carry out the program, including a description of
structural practices and land management practices to be implemented and
the objectives to be met by the plan's implementation.
``(b) Avoidance of Duplication.--The Secretary shall, to the maximum
extent practicable, eliminate duplication of planning activities under
the environmental quality incentives program and comparable conservation
programs.
``SEC. 1240F. <<NOTE: 16 USC 3839aa-6.>> DUTIES OF THE SECRETARY.
``To the extent appropriate, the Secretary shall assist a producer
in achieving the conservation and environmental goals of an
environmental quality incentives program plan by--
``(1) providing an eligibility assessment of the farming or
ranching operation of the producer as a basis for developing the
plan;
``(2) providing technical assistance in developing and
implementing the plan;
``(3) providing technical assistance, cost-share payments,
or incentive payments for developing and implementing 1 or more
structural practices or 1 or more land management practices, as
appropriate;
``(4) providing the producer with information, education,
and training to aid in implementation of the plan; and
``(5) encouraging the producer to obtain technical
assistance, cost-share payments, or grants from other Federal,
State, local, or private sources.
``SEC. 1240G. <<NOTE: 16 USC 3839aa-7.>> LIMITATION ON PAYMENTS.
``(a) In General.--The total amount of cost-share and incentive
payments paid to a producer under this chapter may not exceed--
``(1) $10,000 for any fiscal year; or
``(2) $50,000 for any multiyear contract.
``(b) Exception to Annual Limit.--The Secretary may exceed the
limitation on the annual amount of a payment under subsection (a)(1) on
a case-by-case basis if the Secretary determines that a larger payment
is--
``(1) essential to accomplish the land management practice
or structural practice for which the payment is made; and
``(2) consistent with the maximization of environmental
benefits per dollar expended and the purposes of this chapter
specified in section 1240.
``(c) Timing of Expenditures.--Expenditures under a contract entered
into under this chapter during a fiscal year may not be made by the
Secretary until the subsequent fiscal year.
[[Page 110 STAT. 1002]]
``SEC. 1240H. <<NOTE: 16 USC 3839aa-8.>> TEMPORARY ADMINISTRATION OF
ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
``(a) Interim Administration.--
``(1) In general.--During the period beginning on the date
of enactment of this section and ending on the termination date
provided under paragraph (2), to ensure that technical
assistance, cost-share payments, and incentive payments continue
to be administered in an orderly manner until such time as
assistance can be provided through final regulations issued to
implement the environmental quality incentives program
established under this chapter, the Secretary shall continue
to--
``(A) provide technical assistance, cost-share
payments, and incentive payments under the terms and
conditions of the agricultural conservation program, the
Great Plains conservation program, the water quality
incentives program, and the Colorado River Basin
salinity control program, to the extent the terms and
conditions of the program are consistent with the
environmental quality incentives program; and
``(B) use for those purposes--
``(i) any funds remaining available for the
agricultural conservation program, the Great
Plains conservation program, the water quality
incentives program, and the Colorado River Basin
salinity control program; and
``(ii) as the Secretary determines to be
necessary, any funds authorized to be used to
carry out the environmental quality incentives
program.
``(2) Termination of authority.--The authority of the
Secretary to carry out paragraph (1) shall terminate on the date
that is 180 days after the date of enactment of this section.
``(b) <<NOTE: Effective date.>> Permanent Administration.--Effective
beginning on the termination date provided under subsection (a)(2), the
Secretary shall provide technical assistance, cost-share payments, and
incentive payments for structural practices and land management
practices related to crop and livestock production in accordance with
final regulations issued to carry out the environmental quality
incentives program.''.
SEC. 335. CONSERVATION FARM OPTION.
Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) (as amended by section 334) is amended by adding at the
end the following:
``CHAPTER 5--CONSERVATION FARM OPTION
``SEC. 1240M. <<NOTE: 16 USC 3839bb.>> CONSERVATION FARM OPTION.
``(a) In General.--The Secretary shall establish conservation farm
option pilot programs for producers of wheat, feed grains, cotton, and
rice.
``(b) Eligible Owners and Producers.--An owner or producer with a
farm that has contract acreage enrolled in the agricultural market
transition program established under the Agricultural Market Transition
Act shall be eligible to participate in the conservation farm option
offered under a pilot program under subsection (a)
[[Page 110 STAT. 1003]]
if the owner or producer meets the conditions established under section
(e).
``(c) Purposes.--The purposes of the conservation farm option pilot
programs shall include--
``(1) conservation of soil, water, and related resources;
``(2) water quality protection or improvement;
``(3) wetland restoration, protection, and creation;
``(4) wildlife habitat development and protection; or
``(5) other similar conservation purposes.
``(d) Conservation Farm Plan.--
``(1) In general.--To be eligible to enter into a
conservation farm option contract, an owner or producer must
prepare and submit to the Secretary, for approval, a
conservation farm plan that shall become a part of the
conservation farm option contract.
``(2) Requirements.--A conservation farm plan shall--
``(A) describe the resource-conserving crop
rotations, and all other conservation practices, to be
implemented and maintained on the acreage that is
subject to contract during the contract period;
``(B) contain a schedule for the implementation and
maintenance of the practices described in the
conservation farm plan;
``(C) comply with highly erodible land and wetland
conservation requirements of this title; and
``(D) contain such other terms as the Secretary may
require.
``(e) Contracts.--
``(1) In general.--On approval of a conservation farm plan,
the Secretary may enter into a contract with the owner or
producer that specifies the acres being enrolled and the
practices being adopted.
``(2) Duration of contract.--The contract shall be for a
period of 10 years. The contract may be renewed for a period of
not to exceed 5 years on mutual agreement of the Secretary and
the owner or producer.
``(3) Consideration.--In exchange for payments under this
subsection, the owner or producer shall not participate in and
shall forgo payments under--
``(A) the conservation reserve program established
under subchapter B of chapter 1;
``(B) the wetlands reserve program established under
subchapter C of chapter 1; and
``(C) the environmental quality incentives program
established under chapter 4.
``(4) Owner or producer responsibilities under the
agreement.--Under the terms of the contract entered into under
this section, an owner or producer shall agree to--
``(A) actively comply with the terms and conditions
of the approved conservation farm plan;
``(B) <<NOTE: Records.>> keep such records as the
Secretary may reasonably require for purposes of
evaluation of the implementation of the conservation
farm plan; and
``(C) not engage in any activity that would defeat
the purposes of the conservation farm option pilot
program.
``(5) Payments.--The Secretary shall offer an owner or
producer annual payments under the contract that are equiva
[[Page 110 STAT. 1004]]
lent to the payments the owner or producer would have received
under the conservation reserve program, the wetlands reserve
program, and the environmental quality incentives program.
``(6) Balance of benefits.--The Secretary shall not permit
an owner or producer to terminate a conservation reserve program
contract and enter a conservation farm option contract if the
Secretary determines that such action will reduce net
environmental benefits.
``(f) Secretarial Determinations.--
``(1) Acreage estimates.--Prior to each year during which
the Secretary intends to offer conservation reserve program
contracts, the Secretary shall estimate the number of acres
that--
``(A) will be retired under the conservation farm
option under the terms and conditions the Secretary
intends to offer for that program; and
``(B) would be retired under the conservation
reserve program if the conservation farm option were not
available.
``(2) Total land retirement.--The Secretary shall announce a
number of acres to be enrolled in the conservation reserve
program that will result in a total number of acres retired
under the conservation reserve program and the conservation farm
option that does not exceed the amount estimated under paragraph
(1)(B) for the current or future years.
``(3) Limitation.--The Secretary shall not enroll additional
conservation reserve program contracts to offset the land
retired under the conservation farm option.
``(g) Commodity Credit Corporation.--The Secretary shall use the
funds, authorities, and facilities of the Commodity Credit Corporation
to carry out this subsection.
``(h) Funding.--Of the funds of the Commodity Credit Corporation,
the Corporation shall make available to carry out this section--
``(1) $7,500,000 for fiscal year 1997;
``(2) $15,000,000 for fiscal year 1998;
``(3) $25,000,000 for fiscal year 1999;
``(4) $37,500,000 for fiscal year 2000;
``(5) $50,000,000 for fiscal year 2001; and
``(6) $62,500,000 for fiscal year 2002.''.
SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.
(a) Agricultural Conservation Program.--
(1) Elimination.--
(A) Section 8 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h) is amended--
(i) in subsection (b)--
(I) by striking paragraphs (1)
through (4) and inserting the following:
``(1) Environmental quality incentives program.--The
Secretary shall provide technical assistance, cost-share
payments, and incentive payments to operators through the
environmental quality incentives program in accordance with
chapter 4 of subtitle D of title XII of the Food Security Act of
1985.''; and
(II) by striking paragraphs (6)
through (8); and
(ii) by striking subsections (d), (e), and
(f).
[[Page 110 STAT. 1005]]
(B) The first sentence of section 11 of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590k)
is amended by striking ``performance: Provided
further,'' and all that follows through ``or other law''
and inserting ``performance''.
(C) Section 14 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590n) is amended--
(i) in the first sentence, by striking ``or
8''; and
(ii) by striking the second sentence.
(D) Section 15 of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590o) is amended--
(i) in the first undesignated paragraph--
(I) in the first sentence, by
striking ``sections 7 and 8'' and
inserting ``section 7''; and
(II) by striking the third sentence;
and
(ii) by striking the second undesignated
paragraph.
(2) Conforming amendments.--
(A) Paragraph (1) of the last proviso of the matter
under the heading ``conservation reserve program'' under
the heading ``Soil Bank Programs'' of title I of the
Department of Agriculture and Farm Credit Administration
Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 1831a),
is amended by striking ``Agricultural Conservation
Program'' and inserting ``environmental quality
incentives program established under chapter 4 of
subtitle D of title XII of the Food Security Act of
1985''.
(B) Section 4 of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2103) is amended by striking ``as
added by the Agriculture and Consumer Protection Act of
1973'' each place it appears in subsections (d) and (i)
and inserting ``as in effect before the amendment made
by section 336(d)(1) of the Federal Agriculture
Improvement and Reform Act of 1996''.
(C) Section 226(b)(4) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6932(b)(4)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(D) Section 246(b)(8) of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(8)) is amended by striking ``and the
agricultural conservation program under the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590g
et seq.)''.
(E) Section 1271(c)(3)(C) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (16 U.S.C.
2106a(c)(3)(C)) is amended by striking ``Agricultural
Conservation Program established under section 16(b) of
the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h, 590l, or 590p)'' and inserting
``environmental quality incentives program established
under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985''.
(F) Section 304(a) of the Lake Champlain Special
Designation Act of 1990 (Public Law 101-596; 33 U.S.C.
1270 note) is amended--
(i) in the subsection heading, by striking
``Special Project Area Under the Agricultural
Conservation Program'' and inserting ``Priority
Area Under
[[Page 110 STAT. 1006]]
the Environmental Quality Incentives Program'';
and
(ii) in paragraph (1), by striking ``special
project area under the Agricultural Conservation
Program established under section 8(b) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C.
590h(b))'' and inserting ``priority area under the
environmental quality incentives program
established under chapter 4 of subtitle D of title
XII of the Food Security Act of 1985''.
(G) Section 6 of the Department of Agriculture
Organic Act of 1956 (70 Stat. 1033) <<NOTE: 16 USC 590h-
4.>> is amended by striking subsection (b).
(b) Great Plains Conservation Program.--
(1) Elimination.--Section 16 of the Soil Conservation and
Domestic Allotment Act (16 U.S.C. 590p) is repealed.
(2) Conforming amendments.--
(A) The Agricultural Adjustment Act of 1938 is
amended by striking ``Great Plains program'' each place
it appears in sections 344(f)(8) and 377 (7 U.S.C.
1344(f)(8) and 1377) and inserting ``environmental
quality incentives program established under chapter 4
of subtitle D of title XII of the Food Security Act of
1985''.
(B) Section 246(b) of the Department of Agriculture
Reorganization Act of 1994 (7 U.S.C. 6962(b)) is amended
by striking paragraph (2).
(c) Colorado River Basin Salinity Control Program.--
(1) In general.--Section 202 of the Colorado River Basin
Salinity Control Act (43 U.S.C. 1592) is amended by striking
subsection (c) and inserting the following:
``(c) Salinity Control Measures.--The Secretary of Agriculture shall
carry out salinity control measures (including watershed enhancement and
cost-share measures with livestock and crop producers) in the Colorado
River Basin as part of the environmental quality incentives program
established under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985.''.
(2) Funds.--Section 205 of the Colorado River Basin Salinity
Control Act (43 U.S.C. 1595) is amended--
(A) in subsection (a), by striking ``pursuant to
section 202(c)(2)(C)''; and
(B) by adding at the end the following:
``(f) Funds.--The Secretary may expend funds available in the Basin
Funds referred to in this section to carry out cost-share salinity
measures in a manner that is consistent with the cost allocations
required under this section.''.
(3) Conforming amendment.--Section 246(b)(6) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
6962(b)(6)) is amended by striking ``program'' and inserting
``measures''.
(d) Rural Environmental Conservation Program.--
(1) Elimination.--Title X of the Agricultural Act of 1970
(16 U.S.C. 1501 et seq.) is repealed.
(2) Conforming amendments.--Section 246 of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C. 6962) (as
amended by subsection (b)(2)(B)) is amended--
(A) in subsection (b)--
(i) by striking paragraph (1); and
[[Page 110 STAT. 1007]]
(ii) by redesignating paragraphs (3) through
(8) as paragraphs (1) through (6), respectively;
and
(B) in subsection (c), by striking ``(2), (3), (4),
and (6)'' and inserting ``(1), (2), and (4)''.
(e) Other Conservation Provisions.--Subtitle F of title XII of the
Food Security Act of 1985 (16 U.S.C. 2005a and 2101 note) is repealed.
(f) Resource Conservation.--
(1) Elimination.--Subtitles A, B, D, E, and F of title XV of
the Agriculture and Food Act of 1981 (95 Stat. 1328; 16 U.S.C.
3401 et seq.) are repealed.
(2) Conforming amendment.--Section 739 of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 1992 (7 U.S.C. 2272a), is repealed.
(g) Technical Amendment.--The first sentence of the matter under the
heading ``Commodity Credit Corporation'' of Public Law 99-263 (100 Stat.
59; 16 U.S.C. 3841 note) is amended by striking ``prices: Provided
further,'' and all that follows through ``Acts.'' and inserting
``prices.''.
(h) Agricultural Water Quality Incentives Program.--Chapter 2 of
subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3838
et seq.) is repealed.
Subtitle E--Conservation Funding and Administration
SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.
Subtitle E of title XII of the Food Security Act of 1985 (16 U.S.C.
3841 et seq.) is amended to read as follows:
``Subtitle E--Funding and Administration
``SEC. 1241. <<NOTE: 16 USC 3841.>> FUNDING.
``(a) Mandatory Expenses.--For each of fiscal years 1996 through
2002, the Secretary shall use the funds of the Commodity Credit
Corporation to carry out the programs authorized by--
``(1) subchapter B of chapter 1 of subtitle D (including
contracts extended by the Secretary pursuant to section 1437 of
the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 16 U.S.C. 3831 note));
``(2) subchapter C of chapter 1 of subtitle D; and
``(3) chapter 4 of subtitle D.
``(b) Environmental Quality Incentives Program.--
``(1) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall make available $130,000,000 for
fiscal year 1996, and $200,000,000 for each of fiscal years 1997
through 2002, for providing technical assistance, cost-share
payments, incentive payments, and education under the
environmental quality incentives program under chapter 4 of
subtitle D.
``(2) Livestock production.--For each of fiscal years 1996
through 2002, 50 percent of the funding available for technical
assistance, cost-share payments, incentive payments, and edu
[[Page 110 STAT. 1008]]
cation under the environmental quality incentives program shall
be targeted at practices relating to livestock production.
``SEC. 1242. <<NOTE: 16 USC 3842.>> USE OF OTHER AGENCIES.
``(a) Committees.--In carrying out subtitles B, C, and D, the
Secretary shall use the services of local, county, and State committees
established under section 8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h(b)).
``(b) Other Agencies.--
``(1) Use.--In carrying out subtitles C and D, the Secretary
may utilize the services of the Natural Resources Conservation
Service and the Forest Service, the Fish and Wildlife Service,
State forestry agencies, State fish and game agencies, land-
grant colleges, local, county, and State committees established
under section 8(b) of the Soil Conservation and Domestic
Allotment Act (16 U.S.C. 590h), soil and water conservation
districts, and other appropriate agencies.
``(2) Consultation.--In carrying out subtitle D at the State
and county levels, the Secretary shall consult with, to the
extent practicable, the Fish and Wildlife Service, State
forestry agencies, State fish and game agencies, land-grant
colleges, soil-conservation districts, and other appropriate
agencies.
``SEC. 1243. <<NOTE: 16 USC 3843.>> ADMINISTRATION.
``(a) Plans.--The Secretary shall, to the extent practicable, avoid
duplication in--
``(1) the conservation plans required for--
``(A) highly erodible land conservation under
subtitle B;
``(B) the conservation reserve program established
under subchapter B of chapter 1 of subtitle D; and
``(C) the wetlands reserve program established under
subchapter C of chapter 1 of subtitle D; and
``(2) the environmental quality incentives program
established under chapter 4 of subtitle D.
``(b) Acreage Limitation.--
``(1) In general.--The Secretary shall not enroll more than
25 percent of the cropland in any county in the programs
administered under the conservation reserve and wetlands reserve
programs established under subchapters B and C, respectively, of
chapter 1 of subtitle D. Not more than 10 percent of the
cropland in a county may be subject to an easement acquired
under the subchapters.
``(2) Exception.--The Secretary may exceed the limitations
in paragraph (1) if the Secretary determines that--
``(A) the action would not adversely affect the
local economy of a county; and
``(B) operators in the county are having
difficulties complying with conservation plans
implemented under section 1212.
``(3) Shelterbelts and windbreaks.--The limitations
established under this subsection shall not apply to cropland
that is subject to an easement under chapter 1 or 3 of subtitle
D that is used for the establishment of shelterbelts and
windbreaks.
``(c) Tenant Protection.--Except for a person who is a tenant on
land that is subject to a conservation reserve contract that has been
extended by the Secretary, the Secretary shall provide
[[Page 110 STAT. 1009]]
adequate safeguards to protect the interests of tenants and
sharecroppers, including provision for sharing, on a fair and equitable
basis, in payments under the programs established under subtitles B
through D.
``(d) Provision of Technical Assistance by Other Sources.--In the
preparation and application of a conservation compliance plan under
subtitle B or similar plan required as a condition for assistance from
the Department of Agriculture, the Secretary shall permit persons to
secure technical assistance from approved sources, as determined by the
Secretary, other than the Natural Resources Conservation Service. If the
Secretary rejects a technical determination made by such a source, the
basis of the Secretary's determination must be supported by documented
evidence.
``(e) Regulations.--Not later than 90 days after the date of
enactment of the Federal Agriculture Improvement and Reform Act of 1996,
the Secretary shall issue regulations to implement the conservation
reserve and wetlands reserve programs established under chapter 1 of
subtitle D.''.
SEC. 342. STATE TECHNICAL COMMITTEES.
(a) Composition.--Section 1261(c) of the Food Security Act of 1985
(16 U.S.C. 3861(c))--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(9) agricultural producers with demonstrable conservation
expertise;
``(10) nonprofit organizations with demonstrable
conservation expertise;
``(11) persons knowledgeable about conservation techniques;
and
``(12) agribusiness.''.
(b) Responsibilities.--Section 1262 of the Food Security Act of 1985
(16 U.S.C. 3862) is amended--
(1) in subsection (a), by adding at the end the following:
``Each State technical committee shall provide public notice of,
and permit public attendance at meetings considering, issues of
concern related to carrying out this title.'';
(2) in subsection (b)(1), by adding at the end the
following: ``Each State technical committee shall establish
criteria and guidelines for evaluating petitions by agricultural
producers regarding new conservation practices and systems not
already described in field office technical guides.''; and
(3) in subsection (c)--
(A) in paragraph (7), by striking ``and'' at the
end;
(B) by redesignating paragraph (8) as paragraph (9);
and
(C) by inserting after paragraph (7) the following:
``(8) establishing criteria and priorities for State
initiatives under the environmental quality incentives program
under chapter 4 of subtitle D; and''.
SEC. 343. <<NOTE: 16 USC 3862 note.>> PUBLIC NOTICE AND COMMENT FOR
REVISIONS TO CERTAIN STATE TECHNICAL GUIDES.
After the date of enactment of this Act, the Secretary of
Agriculture shall provide for public notice and comment under section
[[Page 110 STAT. 1010]]
553 of title 5, United States Code, with regard to any future revisions
to those provisions of the Natural Resources Conservation Service State
technical guides that are used to carry out subtitles A, B, and C of
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.).
Subtitle F <<NOTE: National Natural Resources Conservation Foundation
Act.>> --National Natural Resources Conservation Foundation
SEC. 351. <<NOTE: 16 USC 5801 note.>> SHORT TITLE.
This subtitle may be cited as the ``National Natural Resources
Conservation Foundation Act''.
SEC. 352. <<NOTE: 16 USC 5801.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Board.--The term ``Board'' means the Board of Trustees
established under section 354.
(2) Department.--The term ``Department'' means the
Department of Agriculture.
(3) Foundation.--The term ``Foundation'' means the National
Natural Resources Conservation Foundation established by section
353(a).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
SEC. 353. <<NOTE: 16 USC 5802.>> NATIONAL NATURAL RESOURCES CONSERVATION
FOUNDATION.
(a) Establishment.--A National Natural Resources Conservation
Foundation is established as a charitable and nonprofit corporation for
charitable, scientific, and educational purposes specified in subsection
(b). The Foundation is not an agency or instrumentality of the United
States.
(b) Duties.--The Foundation shall--
(1) promote innovative solutions to the problems associated
with the conservation of natural resources on private lands,
particularly with respect to agriculture and soil and water
conservation;
(2) promote voluntary partnerships between government and
private interests in the conservation of natural resources;
(3) conduct research and undertake educational activities,
conduct and support demonstration projects, and make grants to
State and local agencies and nonprofit organizations;
(4) provide such other leadership and support as may be
necessary to address conservation challenges, such as the
prevention of excessive soil erosion, the enhancement of soil
and water quality, and the protection of wetlands, wildlife
habitat, and strategically important farmland subject to urban
conversion and fragmentation;
(5) encourage, accept, and administer private gifts of money
and real and personal property for the benefit of, or in
connection with, the conservation and related activities and
services of the Department, particularly the Natural Resources
Conservation Service;
(6) undertake, conduct, and encourage educational,
technical, and other assistance, and other activities, that
support the conservation and related programs administered by
the
[[Page 110 STAT. 1011]]
Department (other than activities carried out on National Forest
System lands), particularly the Natural Resources Conservation
Service, except that the Foundation may not enforce or
administer a regulation of the Department; and
(7) raise private funds to promote the purposes of the
Foundation.
(c) Limitations and Conflicts of Interest.--
(1) Political activities.--The Foundation shall not
participate or intervene in a political campaign on behalf of
any candidate for public office.
(2) Conflicts of interest.--No director, officer, or
employee of the Foundation shall participate, directly or
indirectly, in the consideration or determination of any
question before the Foundation affecting--
(A) the financial interests of the director,
officer, or employee; or
(B) the interests of any corporation, partnership,
entity, organization, or other person in which the
director, officer, or employee--
(i) is an officer, director, or trustee; or
(ii) has any direct or indirect financial
interest.
(3) Legislation or government action or policy.--No funds of
the Foundation may be used in any manner for the purpose of
influencing legislation or government action or policy.
(4) Litigation.--No funds of the Foundation may be used to
bring or join an action against the United States.
SEC. 354. <<NOTE: 16 USC 5803.>> COMPOSITION AND OPERATION.
(a) Composition.--The Foundation shall be administered by a Board of
Trustees that shall consist of 9 voting members, each of whom shall be a
United States citizen and not a Federal officer. The Board shall be
composed of--
(1) individuals with expertise in agricultural conservation
policy matters;
(2) a representative of private sector organizations with a
demonstrable interest in natural resources conservation;
(3) a representative of statewide conservation
organizations;
(4) a representative of soil and water conservation
districts;
(5) a representative of organizations outside the Federal
Government that are dedicated to natural resources conservation
education; and
(6) a farmer or rancher.
(b) Nongovernmental Employees.--Service as a member of the Board
shall not constitute employment by, or the holding of, an office of the
United States for the purposes of any Federal law.
(c) Membership.--
(1) Initial members.--The Secretary shall appoint 9 persons
who meet the criteria established under subsection (a) as the
initial members of the Board and designate 1 of the members as
the initial chairperson for a 2-year term.
(2) Terms of office.--
(A) In general.--A member of the Board shall serve
for a term of 3 years, except that the members appointed
[[Page 110 STAT. 1012]]
to the initial Board shall serve, proportionately, for
terms of 1, 2, and 3 years, as determined by the
Secretary.
(B) Limitation on terms.--No individual may serve
more than 2 consecutive 3-year terms as a member of the
Board.
(3) Subsequent members.--The initial members of the Board
shall adopt procedures in the constitution of the Foundation for
the nomination and selection of subsequent members of the Board.
The procedures shall require that each member, at a minimum,
meets the criteria established under subsection (a) and shall
provide for the selection of an individual, who is not a Federal
officer or a member of the Board.
(d) Chairperson.--After the appointment of an initial chairperson
under subsection (c)(1), each succeeding chairperson of the Board shall
be elected by the members of the Board for a 2-year term.
(e) Vacancies.--A vacancy on the Board shall be filled by the Board
not later than 60 days after the occurrence of the vacancy.
(f) Compensation.--A member of the Board shall receive no
compensation from the Foundation for the service of the member on the
Board.
(g) Travel Expenses.--While away from the home or regular place of
business of a member of the Board in the performance of services for the
Board, the member shall be allowed travel expenses paid by the
Foundation, including per diem in lieu of subsistence, at the same rate
as a person employed intermittently in the Government service is allowed
under section 5703 of title 5, United States Code.
SEC. 355. <<NOTE: 16 USC 5804.>> OFFICERS AND EMPLOYEES.
(a) In General.--The Board may--
(1) appoint, hire, and discharge the officers and employees
of the Foundation, other than appoint the initial Executive
Director of the Foundation;
(2) adopt a constitution and bylaws for the Foundation that
are consistent with the purposes of this subtitle; and
(3) undertake any other activities that may be necessary to
carry out this subtitle.
(b) Officers and Employees.--
(1) Appointment and hiring.--An officer or employee of the
Foundation--
(A) shall not, by virtue of the appointment or
employment of the officer or employee, be considered a
Federal employee for any purpose, including the
provisions of title 5, United States Code, governing
appointments in the competitive service, except that
such an individual may participate in the Federal
employee retirement system as if the individual were a
Federal employee; and
(B) may not be paid by the Foundation a salary in
excess of $125,000 per year.
(2) Executive director.--
(A) Initial director.--The Secretary shall appoint
an individual to serve as the initial Executive Director
of the Foundation who shall serve, at the direction of
the Board, as the chief operating officer of the
Foundation.
(B) Subsequent directors.--The Board shall appoint
each subsequent Executive Director of the Foundation who
[[Page 110 STAT. 1013]]
shall serve, at the direction of the Board, as the chief
operating officer of the Foundation.
(C) Qualifications.--The Executive Director shall be
knowledgeable and experienced in matters relating to
natural resources conservation.
SEC. 356. <<NOTE: 16 USC 5805.>> CORPORATE POWERS AND OBLIGATIONS OF THE
FOUNDATION.
(a) In General.--The Foundation--
(1) may conduct business throughout the United States and
the territories and possessions of the United States; and
(2) shall at all times maintain a designated agent who is
authorized to accept service of process for the Foundation, so
that the serving of notice to, or service of process on, the
agent, or mailed to the business address of the agent, shall be
considered as service on or notice to the Foundation.
(b) Seal.--The Foundation shall have an official seal selected by
the Board that shall be judicially noticed.
(c) Powers.--To carry out the purposes of the Foundation under
section 353(b), the Foundation shall have, in addition to the powers
otherwise provided under this subtitle, the usual powers of a
corporation, including the power--
(1) to accept, receive, solicit, hold, administer, and use
any gift, devise, or bequest, either absolutely or in trust, of
real or personal property or any income from, or other interest
in, the gift, devise, or bequest;
(2) to acquire by purchase or exchange any real or personal
property or interest in property, except that funds provided
under section 360 may not be used to purchase an interest in
real property;
(3) unless otherwise required by instrument of transfer, to
sell, donate, lease, invest, reinvest, retain, or otherwise
dispose of any property or income from property;
(4) to borrow money from private sources and issue bonds,
debentures, or other debt instruments, subject to section 359,
except that the aggregate amount of the borrowing and debt
instruments outstanding at any time may not exceed $1,000,000;
(5) to sue and be sued, and complain and defend itself, in
any court of competent jurisdiction, except that a member of the
Board shall not be personally liable for an action in the
performance of services for the Board, except for gross
negligence;
(6) to enter into a contract or other agreement with an
agency of State or local government, educational institution, or
other private organization or person and to make such payments
as may be necessary to carry out the functions of the
Foundation; and
(7) to do any and all acts that are necessary to carry out
the purposes of the Foundation.
(d) Interests in Property.--
(1) Interests in real property.--The Foundation may acquire,
hold, and dispose of lands, waters, or other interests in real
property by donation, gift, devise, purchase, or exchange. An
interest in real property shall be treated, among other things,
as including an easement or other right for the preservation,
conservation, protection, or enhancement of agricultural,
[[Page 110 STAT. 1014]]
natural, scenic, historic, scientific, educational,
inspirational, or recreational resources.
(2) Gifts.--A gift, devise, or bequest may be accepted by
the Foundation even though the gift, devise, or bequest is
encumbered, restricted, or subject to a beneficial interest of a
private person if any current or future interest in the gift,
devise, or bequest is for the benefit of the Foundation.
SEC. 357. <<NOTE: 16 USC 5806.>> ADMINISTRATIVE SERVICES AND SUPPORT.
For each of fiscal years 1996 through 1998, the Secretary may
provide, without reimbursement, personnel, facilities, and other
administrative services of the Department to the Foundation.
SEC. 358. <<NOTE: 16 USC 5807.>> AUDITS AND PETITION OF ATTORNEY GENERAL
FOR EQUITABLE RELIEF.
(a) Audits.--
(1) In general.--The accounts of the Foundation shall be
audited in accordance with Public Law 88-504 (36 U.S.C. 1101 et
seq.), including an audit of lobbying and litigation activities
carried out by the Foundation.
(2) Conforming amendment.--The first section of Public Law
88-504 (36 U.S.C. 1101) is amended by adding at the end the
following:
``(77) The National Natural Resources Conservation
Foundation.''.
(b) Relief With Respect to Certain Foundation Acts or Failure To
Act.--The Attorney General may petition in the United States District
Court for the District of Columbia for such equitable relief as may be
necessary or appropriate, if the Foundation--
(1) engages in, or threatens to engage in, any act,
practice, or policy that is inconsistent with this subtitle; or
(2) refuses, fails, neglects, or threatens to refuse, fail,
or neglect, to discharge the obligations of the Foundation under
this subtitle.
SEC. 359. <<NOTE: 16 USC 5808.>> RELEASE FROM LIABILITY.
(a) In General.--The United States shall not be liable for any debt,
default, act, or omission of the Foundation. The full faith and credit
of the United States shall not extend to the Foundation.
(b) Statement.--An obligation issued by the Foundation, and a
document offering an obligation, shall include a prominent statement
that the obligation is not directly or indirectly guaranteed, in whole
or in part, by the United States (or an agency or instrumentality of the
United States).
SEC. 360. <<NOTE: 16 USC 5809.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Department to be made
available to the Foundation $1,000,000 for each of fiscal years 1997
through 1999 to initially establish and carry out activities of the
Foundation.
[[Page 110 STAT. 1015]]
Subtitle G--Forestry
SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.
Section 2405 of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 6704) is amended by adding at the end the following:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 1996 through 2002 such sums as are
necessary to carry out this section.''.
SEC. 372. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT
OF NATIONAL FOREST SYSTEM.
The penultimate paragraph of the matter under the heading ``FOREST
SERVICE.'' of the first section of the Act of June 30, 1914 (38 Stat.
430, chapter 131; 16 U.S.C. 498), is amended--
(1) by inserting ``, management,'' after ``the protection'';
(2) by striking ``national forests,'' and inserting
``National Forest System,'';
(3) by inserting ``management,'' after ``protection,'' both
places it appears; and
(4) by adding at the end the following: ``Payment for work
undertaken pursuant to this paragraph may be made from any
appropriation of the Forest Service that is available for
similar work if a written agreement so provides and
reimbursement will be provided by a cooperator in the same
fiscal year as the expenditure by the Forest Service. A
reimbursement received from a cooperator that covers the
proportionate share of the cooperator of the cost of the work
shall be deposited to the credit of the appropriation of the
Forest Service from which the payment was initially made or, if
the appropriation is no longer available, to the credit of an
appropriation of the Forest Service that is available for
similar work. <<NOTE: Rules.>> The Secretary of Agriculture
shall establish written rules that establish criteria to be used
to determine whether the acceptance of contributions of money
under this paragraph would adversely affect the ability of an
officer or employee of the Department of Agriculture to carry
out a duty or program of the officer or employee in a fair and
objective manner or would compromise, or appear to compromise,
the integrity of the program, officer, or
employee. <<NOTE: Rules.>> The Secretary of Agriculture shall
establish written rules that protect the interests of the Forest
Service in cooperative work agreements.''.
SEC. 373. FORESTRY INCENTIVES PROGRAM.
Section 4 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103) is amended--
(1) in subsection (j), by striking ``annually'' and
inserting ``for each of fiscal years 1996 through 2002''; and
(2) by striking subsection (k).
SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.
Section 7 of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2103c) is amended--
(1) by redesignating subsection (l) as subsection (m); and
(2) by inserting after subsection (k) the following:
``(l) Optional State Grants.--
[[Page 110 STAT. 1016]]
``(1) In general.--The Secretary shall, at the request of a
participating State, provide a grant to the State to carry out
the Forest Legacy Program in the State.
``(2) Administration.--If a State elects to receive a grant
under this subsection--
``(A) the Secretary shall use a portion of the funds
made available under subsection (m), as determined by
the Secretary, to provide a grant to the State; and
``(B) the State shall use the grant to carry out the
Forest Legacy Program in the State, including the
acquisition by the State of lands and interests in
lands.''.
Subtitle H--Miscellaneous Conservation Provisions
SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.
(a) In General.--Section 5 of the Commodity Credit Corporation
Charter Act (15 U.S.C. 714c) is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following:
``(g) Carry out conservation or environmental programs authorized by
law.''.
(b) <<NOTE: 15 USC 714c note.>> Effective Date.--The amendments made
by subsection (a) shall become effective on January 1, 1997.
SEC. 382. FLOODPLAIN EASEMENTS.
Section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
is amended by inserting ``, including the purchase of floodplain
easements,'' after ``emergency measures''.
SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.
Section 1538 of the Agriculture and Food Act of 1981 (16 U.S.C.
3461) is amended by striking ``1991 through 1995'' and inserting ``1996
through 2002''.
SEC. 384. REPEAL OF REPORT REQUIREMENT.
Section 1342 of title 44, United States Code, is repealed.
SEC. 385. <<NOTE: 7 USC 7334.>> FLOOD RISK REDUCTION.
(a) In General.--During fiscal years 1996 through 2002, the
Secretary of Agriculture (referred to in this section as the
``Secretary'') may enter into a contract with a producer on a farm who
has contract acreage under the Agricultural Market Transition Act that
is frequently flooded.
(b) Duties of Producers.--Under the terms of the contract, with
respect to acres that are subject to the contract, the producer must
agree to--
(1) the termination of any contract acreage and production
flexibility contract under the Agricultural Market Transition
Act;
(2) forgo loans for contract commodities, oilseeds, and
extra long staple cotton;
(3) not apply for crop insurance issued or reinsured by the
Secretary;
(4) comply with applicable highly erodible land and wetlands
conservation compliance requirements established under
[[Page 110 STAT. 1017]]
title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et
seq.);
(5) not apply for any conservation program payments from the
Secretary;
(6) not apply for disaster program benefits provided by the
Secretary; and
(7) refund the payments, with interest, issued under the
flood risk reduction contract to the Secretary, if the producer
violates the terms of the contract or if the producer transfers
the property to another person who violates the contract.
(c) Duties of the Secretary.--In return for a contract entered into
by a producer under this section, the Secretary shall pay the producer
an amount that is not more than 95 percent of projected contract
payments under the Agricultural Market Transition Act that the Secretary
estimates the producer would otherwise have received during the period
beginning at the time the contract is entered into under this section
and ending September 30, 2002.
(d) Commodity Credit Corporation.--The Secretary shall carry out the
program authorized by this section (other than subsection (e)) through
the Commodity Credit Corporation.
(e) Additional Payments.--
(1) In general.--Subject to the availability of advanced
appropriations, the Secretary may make payments to a producer
described in subsection (a), in addition to the payments
provided under subsection (c), to offset other estimated Federal
Government outlays on frequently flooded land.
(2) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
paragraph (1).
(f) Limitation on Payments.--Amounts made available for production
flexibility contracts under section 113 shall be reduced by an amount
that is equal to the contract payments that producers forgo under
subsection (b)(1) of this section.
SEC. 386. <<NOTE: 16 USC 2005b.>> CONSERVATION OF PRIVATE GRAZING LAND.
(a) Findings.--Congress finds that--
(1) private grazing land constitutes nearly \1/2\ of the
non-Federal land of the United States and is basic to the
environmental, social, and economic stability of rural
communities;
(2) private grazing land contains a complex set of
interactions among soil, water, air, plants, and animals;
(3) grazing land constitutes the single largest watershed
cover type in the United States and contributes significantly to
the quality and quantity of water available for all of the many
uses of the land;
(4) private grazing land constitutes the most extensive
wildlife habitat in the United States;
(5) private grazing land can provide opportunities for
improved nutrient management from land application of animal
manures and other by-product nutrient resources;
(6) owners and managers of private grazing land need to
continue to recognize conservation problems when the problems
arise and receive sound technical assistance to improve or
conserve grazing land resources to meet ecological and economic
demands;
(7) new science and technology must continually be made
available in a practical manner so owners and managers of
[[Page 110 STAT. 1018]]
private grazing land may make informed decisions concerning
vital grazing land resources;
(8) agencies of the Department with private grazing land
responsibilities are the agencies that have the expertise and
experience to provide technical assistance, education, and
research to owners and managers of private grazing land for the
long-term productivity and ecological health of grazing land;
(9) although competing demands on private grazing land
resources are greater than ever before, assistance to private
owners and managers of private grazing land is currently limited
and does not meet the demand and basic need for adequately
sustaining or enhancing the private grazing land resources; and
(10) private grazing land can be enhanced to provide many
benefits to all citizens of the United States through voluntary
cooperation among owners and managers of the land, local
conservation districts, and the agencies of the Department
responsible for providing assistance to owners and managers of
land and to conservation districts.
(b) Purpose.--It is the purpose of this section to authorize the
Secretary to provide a coordinated technical, educational, and related
assistance program to conserve and enhance private grazing land
resources and provide related benefits to all citizens of the United
States by--
(1) establishing a coordinated and cooperative Federal,
State, and local grazing conservation program for management of
private grazing land;
(2) strengthening technical, educational, and related
assistance programs that provide assistance to owners and
managers of private grazing land;
(3) conserving and improving wildlife habitat on private
grazing land;
(4) conserving and improving fish habitat and aquatic
systems through grazing land conservation treatment;
(5) protecting and improving water quality;
(6) improving the dependability and consistency of water
supplies;
(7) identifying and managing weed, noxious weed, and brush
encroachment problems on private grazing land; and
(8) integrating conservation planning and management
decisions by owners and managers of private grazing land, on a
voluntary basis.
(c) Definitions.--In this section:
(1) Department.--The term ``Department'' means the
Department of Agriculture.
(2) Private grazing land.--The term ``private grazing land''
means private, State-owned, tribally-owned, and any other non-
federally owned rangeland, pastureland, grazed forest land, and
hay land.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(d) Private Grazing Land Conservation Assistance.--
(1) Assistance to grazing landowners and others.--Subject to
the availability of appropriations for this section, the
Secretary shall establish a voluntary program to provide
technical, educational, and related assistance to owners and
managers of private grazing land and public agencies, through
[[Page 110 STAT. 1019]]
local conservation districts, to enable the landowners,
managers, and public agencies to voluntarily carry out
activities that are consistent with this section, including--
(A) maintaining and improving private grazing land
and the multiple values and uses that depend on private
grazing land;
(B) implementing grazing land management
technologies;
(C) managing resources on private grazing land,
including--
(i) planning, managing, and treating private
grazing land resources;
(ii) ensuring the long-term sustainability of
private grazing land resources;
(iii) harvesting, processing, and marketing
private grazing land resources; and
(iv) identifying and managing weed, noxious
weed, and brush encroachment problems;
(D) protecting and improving the quality and
quantity of water yields from private grazing land;
(E) maintaining and improving wildlife and fish
habitat on private grazing land;
(F) enhancing recreational opportunities on private
grazing land;
(G) maintaining and improving the aesthetic
character of private grazing lands; and
(H) identifying the opportunities and encouraging
the diversification of private grazing land enterprises.
(2) Program elements.--
(A) Funding.--If funding is provided to carry out
this section, it shall be provided through a specific
line-item in the annual appropriations for the Natural
Resources Conservation Service.
(B) Technical assistance and education.--Personnel
of the Department trained in pasture and range
management shall be made available under the program to
deliver and coordinate technical assistance and
education to owners and managers of private grazing
land, at the request of the owners and managers.
(e) Grazing Technical Assistance Self-Help.--
(1) Findings.--Congress finds that--
(A) there is a severe lack of technical assistance
for farmers and ranchers who graze livestock;
(B) Federal budgetary constraints preclude any
significant expansion, and may force a reduction of,
current levels of technical support; and
(C) farmers and ranchers have a history of
cooperatively working together to address common needs
in the promotion of their products and in the drainage
of wet areas through drainage districts.
(2) Establishment of grazing demonstration.--In accordance
with paragraph (3), the Secretary may establish 2 grazing
management demonstration districts at the recommendation of the
grazing lands conservation initiative steering committee.
(3) Procedure.--
[[Page 110 STAT. 1020]]
(A) Proposal.--Within a reasonable time after the
submission of a request of an organization of farmers or
ranchers engaged in grazing, the Secretary shall propose
that a grazing management district be established.
(B) Funding.--The terms and conditions of the
funding and operation of the grazing management district
shall be proposed by the producers.
(C) Approval.--The Secretary shall approve the
proposal if the Secretary determines that the proposal--
(i) is reasonable;
(ii) will promote sound grazing practices; and
(iii) contains provisions similar to the
provisions contained in the beef promotion and
research order issued under section 4 of the Beef
Research and Information Act (7 U.S.C. 2903) in
effect on the date of enactment of this Act.
(D) Area included.--The area proposed to be included
in a grazing management district shall be determined by
the Secretary on the basis of a petition by farmers or
ranchers.
(E) Authorization.--The Secretary may use authority
under the Agricultural Adjustment Act (7 U.S.C. 601 et
seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937, to operate, on a
demonstration basis, a grazing management district.
(F) Activities.--The activities of a grazing
management district shall be scientifically sound
activities, as determined by the Secretary in
consultation with a technical advisory committee
composed of ranchers, farmers, and technical experts.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $20,000,000 for fiscal year 1996;
(2) $40,000,000 for fiscal year 1997; and
(3) $60,000,000 for fiscal year 1998 and each subsequent
fiscal year.
SEC. 387. <<NOTE: Establishment. 16 USC 3836a.>> WILDLIFE HABITAT
INCENTIVES PROGRAM.
(a) In General.--The Secretary of Agriculture, in consultation with
the State technical committees established under section 1261 of the
Food Security Act of 1985 (16 U.S.C. 3861), shall establish a program
under the Natural Resources Conservation Service to be known as the
``Wildlife Habitat Incentive Program''.
(b) Cost-Share Payments.--Under the program, the Secretary shall
make cost-share payments to landowners to develop upland wildlife,
wetland wildlife, threatened and endangered species, fish, and other
types of wildlife habitat approved by the Secretary.
(c) Funding.--To carry out this section, a total of $50,000,000
shall be made available for fiscal years 1996 through 2002 from funds
made available to carry out subchapter B of chapter 1 of subtitle D of
title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
SEC. 388. <<NOTE: Establishment. 16 USC 3830 note.>> FARMLAND PROTECTION
PROGRAM.
(a) In General.--The Secretary of Agriculture shall establish and
carry out a farmland protection program under which the Secretary shall
purchase conservation easements or other interests in not less than
170,000, nor more than 340,000, acres of land
[[Page 110 STAT. 1021]]
with prime, unique, or other productive soil that is subject to a
pending offer from a State or local government for the purpose of
protecting topsoil by limiting nonagricultural uses of the land.
(b) Conservation Plan.--Any highly erodible cropland for which a
conservation easement or other interest is purchased under this section
shall be subject to the requirements of a conservation plan that
requires, at the option of the Secretary, the conversion of the cropland
to less intensive uses.
(c) Funding.--The Secretary shall use not more than $35,000,000 of
the funds of the Commodity Credit Corporation to carry out this section.
SEC. 389. <<NOTE: National Forest Service.>> INTERIM MORATORIUM ON
BYPASS FLOWS.
(a) Moratorium.--There shall be an 18-month <<NOTE: Water. 16 USC
526 note.>> moratorium on any Forest Service decision to require bypass
flows or any other relinquishment of the unimpaired use of a decreed
water right as a condition of renewal or reissuance of a land use
authorization permit.
(b) Limitations.--Subsection (a) shall not affect--
(1) obligations or authority of the Secretary of Agriculture
to protect public health and safety; and
(2) obligations or authority under the Endangered Species
Act of 1973 (16 U.S.C. 1531 et seq.), or applicable State law.
(c) Rules of Construction.--
(1) Existing non-federal water rights.--Nothing in this
section prevents or inhibits the exercise of the use and
operation of existing non-Federal water rights on or above the
National Forest land that require land use authorization permits
from the Forest Service to access water supply facilities.
(2) Renewal or reissuance of expiring land use authorization
for decreed water rights.--Nothing in this section prevents or
inhibits the renewal or reissuance of expiring land use
authorizations for decreed water rights. The Forest Service may
extend, as needed, any expiring land use authorization for such
time as is necessary to incorporate the results of the study
authorized by subsection (d).
(d) Study of Water Rights Across Federal Lands.--
(1) Establishment.--Not later than 60 days after the date of
enactment of this Act, there shall be established a Water Rights
Task Force to study the subjects described in paragraph (3).
(2) Membership.--The Task Force shall be composed of 7
members appointed as follows:
(A) 1 member shall be appointed by the Secretary of
Agriculture.
(B) 2 members shall be appointed by the Speaker of
the House of Representatives and 1 member shall be
appointed by the Minority Leader of the House of
Representatives.
(C) 2 members shall be appointed by the Majority
Leader of the Senate and 1 member shall be appointed by
the Minority Leader of the Senate.
(3) Subjects to be studied.--The Task Force shall study and
make recommendations on--
(A) whether Federal water rights should be acquired
for environmental protection on National Forest land;
[[Page 110 STAT. 1022]]
(B) measures necessary to protect the free exercise
of non-Federal water rights requiring easements and
permits from the Forest Service;
(C) the protection of minimum instream flows for
environmental and watershed management purposes on
National Forest land through purchases or exchanges from
willing sellers in accordance with State law;
(D) the effects of any of the recommendations made
under this paragraph on existing State laws,
regulations, and customs of water usage; and
(E) measures that would be useful in avoiding or
resolving conflicts between the Forest Service's
responsibilities for natural resource and environmental
protection, the public interest, and the property rights
and interests of water holders with special use permits
for water facilities, including the study of the Federal
acquisition of water rights, dispute resolution,
mitigation, and compensation.
(4) Final report.--As soon as practicable, but not later
than 1 year, after the date of enactment of this Act, the Task
Force shall provide the final report of the Task Force to--
(A) the Secretary of Agriculture;
(B) the Speaker of the House of Representatives;
(C) the President pro tempore of the Senate;
(D) the Chairman of the Committee on Agriculture of
the House of Representatives;
(E) the Chairman of the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
(F) the Chairman of the Committee on Resources of
the House of Representatives; and
(G) the Chairman of the Committee on Energy and
Natural Resources of the Senate.
(5) Authorization of funds.--The Secretary of Agriculture
shall use funds made available for salaries and administrative
expenses of the Department of Agriculture to carry out this
subsection.
SEC. 390. <<NOTE: Florida.>> EVERGLADES ECOSYSTEM RESTORATION.
(a) In General.--On July 1, 1996, out of any funds in the Treasury
not otherwise appropriated, the Secretary of the Treasury shall provide
$200,000,000 to the Secretary of the Interior to carry out this section.
(b) Entitlement.--The Secretary of the Interior (referred to in this
section as the ``Secretary'')--
(1) shall be entitled to receive the funds made available
under subsection (a);
(2) shall accept the funds; and
(3) shall use the funds to--
(A) conduct restoration activities in the Everglades
ecosystem in South Florida, which shall include the
acquisition of real property and interests in real
property located within the Everglades ecosystem; and
(B) fund resource protection and resource
maintenance activities in the Everglades ecosystem.
(c) Savings Provision.--Nothing in this subsection precludes the
Secretary from transferring funds to the Army Corps of Engineers, the
State of Florida, or the South Florida Water Management District to
carry out subsection (b)(3).
[[Page 110 STAT. 1023]]
(d) Deadline.--The Secretary shall use the funds made available
under subsection (a) for restoration activities referred to in
subsection (b)(3) not later than December 31, 1999.
(e) Report to Congress.--For each of calendar years 1996 through
1999, the Secretary shall submit an annual report to Congress describing
all activities carried out under subsection (b)(3).
(f) Separate and Additional Everglades Restoration Account.--
(1) Establishment.--There is established in the Treasury a
special account (to be known as the ``Everglades Restoration
Account''), which shall consist of such funds as may be
deposited in the account under paragraph (2). The account shall
be separate, and in addition to, funds deposited in the Treasury
under subsection (a).
(2) Source of funds for account.--
(A) Proceeds from surplus property.--
(i) In general.--Subject to subparagraph (B),
the Administrator shall deposit in the special
account all funds received by the Administrator,
on or after the date of enactment of this Act,
from the disposal pursuant to the Federal Property
and Administrative Services Act of 1949 (40 U.S.C.
471 et seq.) of surplus real property located in
the State of Florida.
(ii) Availability and disposition of federal
land.--
(I) Identification.--Any Federal
real property located in the State of
Florida (excluding lands under the
administrative jurisdiction of the
Secretary that are set aside for
conservation purposes) shall be
identified for disposal or exchange
under this subsection and shall be
presumed available for purposes of this
subsection unless the head of the agency
controlling the property determines that
there is a compelling program need for
any property identified by the
Secretary.
(II) Availability.--Property
identified by the Secretary for which
there is no demonstrated compelling
program need shall, not later than 90
days after a request by the Secretary,
be reported to the Administrator and
shall be made available to the
Administrator who shall consider the
property to be surplus property for
purposes of the Federal Property and
Administrative Services Act of 1949 (40
U.S.C. 471 et seq.).
(III) Prioritization of
disposition.--The Administrator may
prioritize the disposition of property
made available under this subparagraph
to permit the property to be sold as
quickly as practicable in a manner that
is consistent with the best interests of
the Federal Government.
(B) Limit on total amount of deposits.--The total
amount of funds deposited in the special account under
subparagraph (A) shall not exceed $100,000,000.
(C) Effect on closure of military installations.--
Nothing in this section alters the disposition of any
proceeds arising from the disposal of real property
pursuant to a base closure law.
[[Page 110 STAT. 1024]]
(3) Use of special account.--Funds in the special account
shall be available to the Secretary until expended under this
paragraph. The Secretary shall use funds in the special account
to assist in the restoration of the Everglades ecosystem in
South Florida through--
(A) subject to paragraph (4), the acquisition of
real property and interests in real property located
within the Everglades ecosystem; and
(B) the funding of resource protection and resource
maintenance activities in the Everglades ecosystem.
(4) State contribution.--The Secretary may not expend any
funds from the special account to acquire a parcel of real
property, or an interest in a parcel of real property, under
paragraph (3)(A) unless the Secretary obtains, or has previously
obtained, a contribution from the State of Florida in an amount
equal to not less than 50 percent of the appraised value of the
parcel or interest to be acquired, as determined by the
Secretary.
(5) Definitions.--In this subsection:
(A) Administrator.--The term ``Administrator'' means
the Administrator of General Services.
(B) Base closure law.--The term ``base closure law''
means each of the following:
(i) The Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note).
(ii) Title II of the Defense Authorization
Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note).
(iii) Section 2687 of title 10, United States
Code.
(iv) Any other similar law enacted after the
date of enactment of this Act.
(C) Everglades ecosystem.--The term ``Everglades
ecosystem'' means the Florida Everglades Restoration
area that extends from the Kissimmee River basin to
Florida Bay.
(D) Excess property.--The term ``excess property''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(E) Executive agency.--The term ``executive agency''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(F) Special account.--The term ``special account''
means the Everglades Restoration Account established
under paragraph (1).
(G) Surplus property.--The term ``surplus property''
has the meaning provided in section 3 of the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 472).
(g) Report To Determine the Feasibility of Additional Land
Acquisition and Restoration Activities.--
(1) In general.--The Secretary shall conduct an
investigation to determine what, if any, unreserved and
unappropriated Federal lands (or mineral interests in any such
lands) under the administrative jurisdiction of the Secretary
are suitable
[[Page 110 STAT. 1025]]
for disposal or exchange for the purpose of conducting
restoration activities in the Everglades region.
(2) Conservation lands.--No lands under the administrative
jurisdiction of the Secretary that are set aside for
conservation purposes shall be identified for disposal or
exchange under this subsection.
(3) Florida.--In carrying out this subsection, the Secretary
shall, to the maximum extent practicable, determine which lands
and mineral interests located within the State of Florida are
suitable for disposal or exchange before making the
determination for eligible lands or interests in other States.
(4) Public access.--In carrying out this subsection, the
Secretary shall consider that in disposing of lands, the
Secretary shall retain such interest in the lands as may be
necessary to ensure that the general public is not precluded
from reasonable access to the lands for purposes of fishing,
hunting, or other recreational uses.
(5) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit a report to
the Committee on Resources of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate
describing the results of the investigation conducted under this
subsection. The report shall describe the specific parcels
identified under this subsection, establish the priorities for
disposal or exchange among the parcels, and estimate the values
of the parcels.
SEC. 391. <<NOTE: 7 USC 5405.>> AGRICULTURAL AIR QUALITY RESEARCH
OVERSIGHT.
(a) Findings.--Congress finds that--
(1) various studies have alleged that agriculture is a
source of PM-10 emissions;
(2) many of these studies have often been based on erroneous
data;
(3) Federal research activities are currently being
conducted by the Department of Agriculture to determine the true
extent to which agricultural activities contribute to air
pollution and to determine cost-effective ways in which the
agricultural industry can reduce any pollution that exists; and
(4) any Federal policy recommendations that may be issued by
any Federal agency to address air pollution problems related to
agriculture or any other industrial activity should be based on
sound scientific findings that are subject to adequate peer
review and should take into account economic feasibility.
(b) Purpose.--The purpose of this section is to encourage the
Secretary of Agriculture to continue to strengthen vital research
efforts related to agricultural air quality.
(c) Oversight Coordination.--
(1) Intergovernmental cooperation.--The Secretary shall, to
the maximum extent practicable with respect to the Department of
Agriculture and other Federal departments and agencies, ensure
intergovernmental cooperation in research activities related to
agricultural air quality and avoid duplication of the
activities.
(2) Correct data.--The Secretary shall, to the maximum
extent practicable, ensure that the results of any research
related to agricultural air quality conducted by Federal
agencies
[[Page 110 STAT. 1026]]
not report erroneous data with respect to agricultural air
quality.
(d) Task Force.--
(1) Establishment.--The Chief of the National Resources
Conservation Service shall establish a task force to address
agricultural air quality issues.
(2) Composition.--The task force shall be comprised of
employees of the Department of Agriculture, industry
representatives, and other experts in the fields of agriculture
and air quality.
(3) Duties.--The task force shall advise the Secretary with
respect to the role of the Secretary for providing oversight and
coordination related to agricultural air quality.
TITLE IV--NUTRITION ASSISTANCE
SEC. 401. FOOD STAMP PROGRAM.
(a) Disqualification of a Store or Concern.--Section 12(b)(3)(B) of
the Food Stamp Act of 1977 (7 U.S.C. 2021(b)(3)(B)) is amended--
(1) by striking the second parenthetical; and
(2) by striking ``; or'' and inserting the following: ``,
including evidence that--
``(i) the ownership of the store or food
concern was not aware of, did not approve of, did
not benefit from, and was not involved in the
conduct of the violation; and
``(ii)(I) the management of the store or food
concern was not aware of, did not approve of, did
not benefit from, and was not involved in the
conduct of the violation; or
``(II) the management was aware of, approved
of, benefited from, or was involved in the conduct
of no more than 1 previous violation by the store
or food concern; or''.
(b) Employment and Training.--Section 16(h)(1) of the Food Stamp Act
of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking ``1995'' each place
it appears and inserting ``2002''.
(c) Authorization of Pilot Projects.--The last sentence of section
17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(d) Outreach Demonstration Projects.--The first sentence of section
17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(j)(1)(A)) is
amended by striking ``1995'' and inserting ``2002''.
(e) Authorization for Appropriations.--The first sentence of section
18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended
by striking ``1995'' and inserting ``1997''.
(f) Reauthorization of Puerto Rico Nutrition Assistance Program.--
The first sentence of section 19(a)(1)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2028(a)(1)(A)) is amended by striking ``$974,000,000'' and all
that follows through ``fiscal year 1995'' and inserting ``$1,143,000,000
for fiscal year 1996, $1,174,000,000 for fiscal year 1997,
$1,204,000,000 for fiscal year 1998, $1,236,000,000 for fiscal year
1999, $1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal
year 2001, and $1,335,000,000 for fiscal year 2002''.
[[Page 110 STAT. 1027]]
(g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 2011 et
seq.) is amended by adding at the end the following:
``SEC. 24. <<NOTE: 7 USC 2033. Effective date.>> TERRITORY OF AMERICAN
SAMOA.
``Effective October 1, 1995, from amounts made available to carry
out this Act, the Secretary shall pay to the Territory of American Samoa
not more than $5,300,000 for each of fiscal years 1996 through 2002 to
finance 100 percent of the expenditures for the fiscal year for a
nutrition assistance program extended under section 601(c) of Public Law
96-597 (48 U.S.C. 1469d(c)).''.
(h) Assistance for Community Food Projects.--The Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.) (as amended by subsection (g)) is amended
by adding at the end the following:
``SEC. 25. <<NOTE: 7 USC 2034.>> ASSISTANCE FOR COMMUNITY FOOD PROJECTS.
``(a) Definition of Community Food Projects.--In this section, the
term `community food project' means a community-based project that
requires a 1-time infusion of Federal assistance to become self-
sustaining and that is designed to--
``(1) meet the food needs of low-income people;
``(2) increase the self-reliance of communities in providing
for their own food needs; and
``(3) promote comprehensive responses to local food, farm,
and nutrition issues.
``(b) Authority To Provide Assistance.--
``(1) In general.--From amounts made available to carry out
this Act, the Secretary may make grants to assist eligible
private nonprofit entities to establish and carry out community
food projects.
``(2) Limitation on grants.--The total amount of funds
provided as grants under this section may not exceed--
``(A) $1,000,000 for fiscal year 1996; and
``(B) $2,500,000 for each of fiscal years 1997
through 2002.
``(c) Eligible Entities.--To be eligible for a grant under
subsection (b), a private nonprofit entity must--
``(1) have experience in the area of--
``(A) community food work, particularly concerning
small and medium-sized farms, including the provision of
food to people in low-income communities and the
development of new markets in low-income communities for
agricultural producers; or
``(B) job training and business development
activities for food-related activities in low-income
communities;
``(2) demonstrate competency to implement a project, provide
fiscal accountability, collect data, and prepare reports and
other necessary documentation; and
``(3) demonstrate a willingness to share information with
researchers, practitioners, and other interested parties.
``(d) Preference for Certain Projects.--In selecting community food
projects to receive assistance under subsection (b), the Secretary shall
give a preference to projects designed to--
``(1) develop linkages between 2 or more sectors of the food
system;
``(2) support the development of entrepreneurial projects;
``(3) develop innovative linkages between the for-profit and
nonprofit food sectors; or
[[Page 110 STAT. 1028]]
``(4) encourage long-term planning activities and multi-
system, interagency approaches.
``(e) Matching Funds Requirements.--
``(1) Requirements.--The Federal share of the cost of
establishing or carrying out a community food project that
receives assistance under subsection (b) may not exceed 50
percent of the cost of the project during the term of the grant.
``(2) Calculation.--In providing for the non-Federal share
of the cost of carrying out a community food project, the entity
receiving the grant shall provide for the share through a
payment in cash or in kind, fairly evaluated, including
facilities, equipment, or services.
``(3) Sources.--An entity may provide for the non-Federal
share through State government, local government, or private
sources.
``(f) Term of Grant.--
``(1) Single grant.--A community food project may be
supported by only a single grant under subsection (b).
``(2) Term.--The term of a grant under subsection (b) may
not exceed 3 years.
``(g) Technical Assistance and Related Information.--
``(1) Technical assistance.--In carrying out this section,
the Secretary may provide technical assistance regarding
community food projects, processes, and development to an entity
seeking the assistance.
``(2) Sharing Information.--
``(A) In general.--The Secretary may provide for the
sharing of information concerning community food
projects and issues among and between government,
private for-profit and nonprofit groups, and the public
through publications, conferences, and other appropriate
forums.
``(B) Other interested parties.--The Secretary may
share information concerning community food projects
with researchers, practitioners, and other interested
parties.
``(h) Evaluation.--
``(1) In general.--The Secretary shall provide for the
evaluation of the success of community food projects supported
using funds under this section.
``(2) Report.--Not later than January 30, 2002, the
Secretary shall submit a report to Congress regarding the
results of the evaluation.''.
SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD
PROGRAM.
(a) Reauthorization.--The first sentence of section 4(a) of the
Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7
U.S.C. 612c note) is amended by striking ``1995'' and inserting
``2002''.
(b) Funding.--Section 5 of the Agriculture and Consumer Protection
Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) is amended--
(1) in subsection (a)(2), by striking ``1995'' and inserting
``2002'';
(2) in subsection (d)(2), by striking ``1995'' and inserting
``2002''; and
(3) by adding at the end the following:
[[Page 110 STAT. 1029]]
``(l) Carried-Over Funds.--Not more than 20 percent of any commodity
supplemental food program food funds carried over under this section
shall be available for administrative expenses of the program.''.
SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Reauthorization.--The first sentence of section 204(a)(1) of the
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c
note) is amended by striking ``1995'' and inserting ``2002''.
(b) Program Termination.--Section 212 of the Emergency Food
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is amended
by striking ``1995'' and inserting ``2002''.
(c) Required Purchases of Commodities.--Section 214 of the Emergency
Food Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is
amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (e), by striking ``1995'' each place it
appears and inserting ``2002''.
SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.
Section 110 of the Hunger Prevention Act of 1988 (Public Law 100-
435; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2002''; and
(2) in subsection (c)(2)--
(A) in the paragraph heading, by striking ``1992
through 1995'' and inserting ``Subsequent''; and
(B) by striking ``1995'' each place it appears and
inserting ``2002''.
SEC. 405. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1114(a)(2)(A) of the Agriculture and
Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by striking ``1995''
and inserting ``2002''.
TITLE V--AGRICULTURAL PROMOTION
Subtitle A--Commodity Promotion and Evaluation
SEC. 501. <<NOTE: 7 USC 7401.>> COMMODITY PROMOTION AND EVALUATION.
(a) Commodity Promotion Law Defined.--In this section, the term
``commodity promotion law'' means a Federal law that provides for the
establishment and operation of a promotion program regarding an
agricultural commodity that includes a combination of promotion,
research, industry information, or consumer information activities, is
funded by mandatory assessments on producers or processors, and is
designed to maintain or expand markets and uses for the commodity (as
determined by the Secretary). The term includes--
(1) the marketing promotion provisions under section
8c(6)(I) of the Agricultural Adjustment Act (7 U.S.C.
608c(6)(I)), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937;
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(2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
(3) title III of Public Law 91-670 (7 U.S.C. 2611 et seq.);
(4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
(5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
(6) subtitle B of title I of Public Law 98-180 (7 U.S.C.
4501 et seq.);
(7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
(8) subtitle B of title XVI of Public Law 99-198 (7 U.S.C.
4801 et seq.);
(9) subtitle C of title XVI of Public Law 99-198 (7 U.S.C.
4901 et seq.);
(10) subtitle B of title XIX of Public Law 101-624 (7 U.S.C.
6101 et seq.);
(11) subtitle E of title XIX of Public Law 101-624 (7 U.S.C.
6301 et seq.);
(12) subtitle H of title XIX of Public Law 101-624 (7 U.S.C.
6401 et seq.);
(13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
(14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
(15) subtitle B;
(16) subtitle C;
(17) subtitle D; or
(18) subtitle E.
(b) Findings.--Congress finds the following:
(1) It is in the national public interest and vital to the
welfare of the agricultural economy of the United States to
maintain and expand existing markets and develop new markets and
uses for agricultural commodities through industry-funded,
Government-supervised, generic commodity promotion programs
established under commodity promotion laws.
(2) These generic commodity promotion programs, funded by
the agricultural producers or processors who most directly reap
the benefits of the programs and supervised by the Secretary of
Agriculture, provide a unique opportunity for producers and
processors to inform consumers about their products.
(3) The central congressional purpose underlying each
commodity promotion law has always been to maintain and expand
markets for the agricultural commodity covered by the law,
rather than to maintain or expand the share of those markets
held by any individual producer or processor.
(4) The commodity promotion laws were neither designed nor
intended to prohibit or restrict, and the promotion programs
established and funded pursuant to these laws do not prohibit or
restrict, individual advertising or promotion of the covered
commodities by any producer, processor, or group of producers or
processors.
(5) It has never been the intent of Congress for the generic
commodity promotion programs established and funded by the
commodity promotion laws to replace the individual advertising
and promotion efforts of producers or processors.
(6) An individual producer's or processor's own advertising
initiatives are typically designed to increase the share of the
market held by that producer or processor rather than to
increase or expand the overall size of the market.
(7) In contrast, a generic commodity promotion program is
intended and designed to maintain or increase the overall demand
for the agricultural commodity covered by the program
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and increase the size of the market for that commodity, often by
utilizing promotion methods and techniques that individual
producers and processors typically are unable, or have no
incentive, to employ.
(8) The commodity promotion laws establish promotion
programs that operate as ``self-help'' mechanisms for producers
and processors to fund generic promotions for covered
commodities which, under the required supervision and oversight
of the Secretary of Agriculture--
(A) further specific national governmental goals, as
established by Congress; and
(B) produce nonideological and commercial
communication the purpose of which is to further the
governmental policy and objective of maintaining and
expanding the markets for the covered commodities.
(9) While some commodity promotion laws grant a producer or
processor the option of crediting individual advertising
conducted by the producer or processor for all or a portion of
the producer's or processor's marketing promotion assessments,
all promotion programs established under the commodity promotion
laws, both those programs that permit credit for individual
advertising and those programs that do not contain such
provisions, are very narrowly tailored to fulfill the
congressional purposes of the commodity promotion laws without
impairing or infringing the legal or constitutional rights of
any individual producer or processor.
(10) These generic commodity promotion programs are of
particular benefit to small producers who often lack the
resources or market power to advertise on their own and who are
otherwise often unable to benefit from the economies of scale
available in promotion and advertising.
(11) Periodic independent evaluation of the effectiveness of
these generic commodity promotion programs will assist Congress
and the Secretary of Agriculture in ensuring that the objectives
of the programs are met.
(c) Independent Evaluation of Promotion Program Effectiveness.--
Except as otherwise provided by law, each commodity board established
under the supervision and oversight of the Secretary of Agriculture
pursuant to a commodity promotion law shall, not less often than every 5
years, authorize and fund, from funds otherwise available to the board,
an independent evaluation of the effectiveness of the generic commodity
promotion programs and other programs conducted by the board pursuant to
a commodity promotion law. <<NOTE: Public information.>> The board shall
submit to the Secretary, and make available to the public, the results
of each periodic independent evaluation conducted under this subsection.
(d) Administrative Costs.--The Secretary shall annually provide to
the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
information on administrative expenses on programs established under
commodity promotion laws.
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Subtitle B <<NOTE: Commodity Promotion, Research, and Information Act of
1996.>> --Issuance of Orders for Promotion, Research, and Information
Activities Regarding Agricultural Commodities
SEC. 511. <<NOTE: 7 USC 7401 note.>> SHORT TITLE.
This subtitle may be cited as the ``Commodity Promotion, Research,
and Information Act of 1996''.
SEC. 512. <<NOTE: 7 USC 7411.>> FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) The production of agricultural commodities plays a
significant role in the economy of the United States. Thousands
of producers in the United States are involved in the production
of agricultural commodities, and such commodities are consumed
by millions of people throughout the United States and foreign
countries.
(2) Agricultural commodities must be of high quality,
readily available, handled properly, and marketed efficiently to
ensure that consumers have an adequate supply.
(3) The maintenance and expansion of existing markets and
the development of new markets for agricultural commodities
through generic commodity promotion, research, and information
programs are vital to the welfare of persons engaged in the
production, marketing, and consumption of such commodities, as
well as to the general economy of the United States.
(4) Generic promotion, research, and information activities
for agricultural commodities play a unique role in advancing the
demand for such commodities, since such activities increase the
total market for a product to the benefit of consumers and all
producers. These generic activities complement branded
advertising initiatives, which are aimed at increasing the
market share of individual competitors, and are of particular
benefit to small producers who lack the resources or market
power to advertise on their own. These generic activities do not
impede the branded advertising efforts of individual firms, but
instead increase general market demand for an agricultural
commodity using methods that individual companies do not have
the incentive to employ.
(5) Generic promotion, research, and information activities
for agricultural commodities, paid by the producers and others
in the industry who reap the benefits of such activities,
provide a unique opportunity for producers to inform consumers
about a particular agricultural commodity.
(6) It is important to ensure that generic promotion,
research, and information activities for agricultural
commodities be carried out in an effective and coordinated
manner designed to strengthen the position of the commodities in
the marketplace and to maintain and expand their markets and
uses. Independent evaluation of the effectiveness of the generic
promotion activities of these programs will assist the Secretary
of Agriculture and Congress in ensuring that these objectives
are met.
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(7) The cooperative development, financing, and
implementation of a coordinated national program of research,
promotion, and information regarding agricultural commodities
are necessary to maintain and expand existing markets and to
develop new markets for these commodities.
(8) Agricultural commodities move in interstate and foreign
commerce, and agricultural commodities and their products that
do not move in such channels of commerce directly burden or
affect interstate commerce in agricultural commodities and their
products.
(9) Commodity promotion programs have the ability to provide
significant conservation benefits to producers and the public.
(b) Purpose.--The purpose of this subtitle is to authorize the
establishment, through the exercise by the Secretary of Agriculture of
the authority provided in this subtitle, of an orderly program for
developing, financing, and carrying out an effective, continuous, and
coordinated program of generic promotion, research, and information
regarding agricultural commodities designed to--
(1) strengthen the position of agricultural commodity
industries in the marketplace;
(2) maintain and expand existing domestic and foreign
markets and uses for agricultural commodities;
(3) develop new markets and uses for agricultural
commodities; or
(4) assist producers in meeting their conservation
objectives.
(c) Rule of Construction.--Nothing in this subtitle provides for the
control of production or otherwise limits the right of any person to
produce, handle, or import an agricultural commodity.
SEC. 513. <<NOTE: 7 USC 7412.>> DEFINITIONS.
In this subtitle (unless the context otherwise requires):
(1) Agricultural commodity.--The term ``agricultural
commodity'' means--
(A) agricultural, horticultural, viticultural, and
dairy products;
(B) livestock and the products of livestock;
(C) the products of poultry and bee raising;
(D) the products of forestry;
(E) other commodities raised or produced on farms,
as determined appropriate by the Secretary; and
(F) products processed or manufactured from products
specified in the preceding subparagraphs, as determined
appropriate by the Secretary.
(2) Board.--The term ``board'' means a board established
under an order issued under section 514.
(3) Conflict of interest.--The term ``conflict of interest''
means a situation in which a member or employee of a board has a
direct or indirect financial interest in a person that performs
a service for, or enters into a contract with, a board for
anything of economic value.
(4) Department.--The term ``Department'' means the
Department of Agriculture.
(5) First handler.--The term ``first handler'' means the
first person who buys or takes possession of an agricultural
commodity from a producer for marketing. If a producer mar
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kets the agricultural commodity directly to consumers, the
producer shall be considered to be the first handler with
respect to the agricultural commodity produced by the producer.
(6) Importer.--The term ``importer'' means any person who
imports an agricultural commodity from outside the United States
for sale in the United States as a principal or as an agent,
broker, or consignee of any person.
(7) Information.--The term ``information'' means information
and programs that are designed to increase--
(A) efficiency in processing; and
(B) the development of new markets, marketing
strategies, increased marketing efficiency, and
activities to enhance the image of agricultural
commodities on a national or international basis.
(8) Market.--The term ``market'' means to sell or to
otherwise dispose of an agricultural commodity in interstate,
foreign, or intrastate commerce.
(9) Order.--The term ``order'' means an order issued by the
Secretary under section 514 that provides for a program of
generic promotion, research, and information regarding
agricultural commodities designed to--
(A) strengthen the position of agricultural
commodity industries in the marketplace;
(B) maintain and expand existing domestic and
foreign markets and uses for agricultural commodities;
(C) develop new markets and uses for agricultural
commodities; or
(D) assist producers in meeting their conservation
objectives.
(10) Person.--The term ``person'' means any individual,
group of individuals, partnership, corporation, association,
cooperative, or any other legal entity.
(11) Producer.--The term ``producer'' means any person who
is engaged in the production and sale of an agricultural
commodity in the United States and who owns, or shares the
ownership and risk of loss of, the agricultural commodity.
(12) Promotion.--The term ``promotion'' means any action
taken by a board under an order, including paid advertising, to
present a favorable image of an agricultural commodity to the
public to improve the competitive position of the agricultural
commodity in the marketplace and to stimulate sales of the
agricultural commodity.
(13) Research.--The term ``research'' means any type of
test, study, or analysis designed to advance the image,
desirability, use, marketability, production, product
development, or quality of an agricultural commodity.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(15) State.--The term ``State'' means any of the States, the
District of Columbia, the Commonwealth of Puerto Rico, or any
territory or possession of the United States.
(16) Suspend.--The term ``suspend'' means to issue a rule
under section 553 of title 5, United States Code, to temporarily
prevent the operation of an order during a particular period of
time specified in the rule.
(17) Terminate.--The term ``terminate'' means to issue a
rule under section 553 of title 5, United States Code, to
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cancel permanently the operation of an order beginning on a date
certain specified in the rule.
(18) United states.--The term ``United States'' means
collectively the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico and the territories and possessions
of the United States.
SEC. 514. <<NOTE: 7 USC 7413.>> ISSUANCE OF ORDERS.
(a) Issuance Authorized.--
(1) In general.--To effectuate the purpose of this subtitle,
the Secretary may issue, and amend from time to time, orders
applicable to--
(A) the producers of an agricultural commodity;
(B) the first handlers of the agricultural commodity
and other persons in the marketing chain as appropriate;
and
(C) the importers of the agricultural commodity, if
imports of the agricultural commodity are subject to
assessment under section 516(f).
(2) National scope.--Each order issued under this section
shall be national in scope.
(b) Procedure for Issuance.--
(1) Development or receipt of proposed order.--A proposed
order with respect to an agricultural commodity may be--
(A) prepared by the Secretary at any time; or
(B) submitted to the Secretary by--
(i) an association of producers of the
agricultural commodity; or
(ii) any other person that may be affected by
the issuance of an order with respect to the
agricultural commodity.
(2) <<NOTE: Federal Register, publication.>> Consideration
of proposed order.--If the Secretary determines that a proposed
order is consistent with and will effectuate the purpose of this
subtitle, the Secretary shall publish the proposed order in the
Federal Register and give due notice and opportunity for public
comment on the proposed order.
(3) Existence of other orders.--In deciding whether a
proposal for an order is consistent with and will effectuate the
purpose of this subtitle, the Secretary may consider the
existence of other Federal promotion, research, and information
programs or orders issued or developed pursuant to any other
law.
(4) Preparation of final order.--After notice and
opportunity for public comment under paragraph (2) regarding a
proposed order, the Secretary shall take into consideration the
comments received in preparing a final order. The Secretary
shall ensure that the final order is in conformity with the
terms, conditions, and requirements of this subtitle.
(c) Issuance and Effective Date.--If the Secretary determines that
the final order developed with respect to an agricultural commodity is
consistent with and will effectuate the purpose of this subtitle, the
Secretary shall issue the final order. Except in the case of an order
for which an initial referendum is conducted under section 518(a), the
final order shall be issued and become
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effective not later than 270 days after the date of publication of the
proposed order that was the basis for the final order.
(d) Amendments.--From time to time the Secretary may amend any
order, consistent with the requirements of section 523.
SEC. 515. <<NOTE: 7 USC 7414.>> REQUIRED TERMS IN ORDERS.
(a) In General.--Each order shall contain the terms and conditions
specified in this section.
(b) Board.--
(1) Establishment.--Each order shall establish a board to
carry out a program of generic promotion, research, and
information regarding the agricultural commodity covered by the
order and intended to effectuate the purpose of this subtitle.
(2) Board membership.--
(A) Number of members.--Each board shall consist of
the number of members considered by the Secretary, in
consultation with the agricultural commodity industry
involved, to be appropriate to administer the order. In
addition to members, the Secretary may also provide for
alternates on the board.
(B) Appointment.--The Secretary shall appoint the
members and any alternates of a board from among
producers of the agricultural commodity and first
handlers and others in the marketing chain as
appropriate. If imports of the agricultural commodity
covered by an order are subject to assessment under
section 516(f), the Secretary shall also appoint
importers as members of the board and as alternates if
alternates are included on the board. The Secretary may
appoint 1 or more members of the general public to each
board.
(C) Nominations.--The Secretary may make
appointments from nominations made pursuant to the
method set forth in the order.
(D) Geographical representation.--To ensure fair and
equitable representation of the agricultural commodity
industry covered by an order, the composition of each
board shall reflect the geographical distribution of the
production of the agricultural commodity involved in the
United States and the quantity or value of the
agricultural commodity imported into the United States.
(3) Reapportionment of board membership.--In accordance with
rules issued by the Secretary, at least once in each 5-year
period, but not more frequently than once in each 3-year period,
each board shall--
(A) review the geographical distribution in the
United States of the production of the agricultural
commodity covered by the order involved and the quantity
or value of the agricultural commodity imported into the
United States; and
(B) if warranted, recommend to the Secretary the
reapportionment of the board membership to reflect
changes in the geographical distribution of the
production of the agricultural commodity and the
quantity or value of the imported agricultural
commodity.
(4) Notice.--
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(A) Vacancies.--Each order shall provide for notice
of board vacancies to the agricultural commodity
industry involved.
(B) Meetings.--Each board shall provide the
Secretary with prior notice of meetings of the board to
permit the Secretary, or a designated representative of
the Secretary, to attend the meetings.
(5) Term of office.--
(A) In general.--The members and any alternates of a
board shall each serve for a term of 3 years, except
that the members and any alternates initially appointed
to a board shall serve for terms of not more than 2, 3,
and 4 years, as specified by the order.
(B) Limitation on consecutive terms.--A member or
alternate may serve not more than 2 consecutive terms.
(C) Continuation of term.--Notwithstanding
subparagraph (B), each member or alternate shall
continue to serve until a successor is appointed by the
Secretary.
(D) Vacancies.--A vacancy arising before the
expiration of a term of office of an incumbent member or
alternate of a board shall be filled in a manner
provided for in the order.
(6) Compensation.--
(A) In general.--Members and any alternates of a
board shall serve without compensation.
(B) Travel expenses.--If approved by a board,
members or alternates shall be reimbursed for reasonable
travel expenses, which may include a per diem allowance
or actual subsistence incurred while away from their
homes or regular places of business in the performance
of services for the board.
(c) Powers and Duties of a Board.--Each order shall specify the
powers and duties of the board established under the order, which shall
include the power and duty--
(1) to administer the order in accordance with its t