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FARM SECURITY AND RURAL INVESTMENT ACT OF 2002
[[Page 116 STAT. 134]]
Public Law 107-171
107th Congress
An Act
To provide for the continuation of agricultural programs through fiscal
year 2007, and for other purposes. <<NOTE: May 13, 2002 - [H.R.
2646]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Farm Security and Rural
Investment Act of 2002.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) <<NOTE: 7 USC 7901 note.>> Short Title.--This Act may be cited
as the ``Farm Security and Rural Investment Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--COMMODITY PROGRAMS
Sec. 1001. Definitions.
Subtitle A--Direct Payments and Counter-Cyclical Payments
Sec. 1101. Establishment of base acres and payment acres for a farm.
Sec. 1102. Establishment of payment yield.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of
direct
payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Relation to remaining payment authority under production
flexibility contracts.
Sec. 1108. Period of effectiveness.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
Sec. 1201. Availability of nonrecourse marketing assistance loans for
loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed
acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains
and seed
cotton.
Subtitle C--Peanuts
Sec. 1301. Definitions.
Sec. 1302. Establishment of payment yield and base acres for peanuts for
a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of
direct
payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for
peanuts.
Sec. 1308. Miscellaneous provisions.
Sec. 1309. Termination of marketing quota programs for peanuts and
compensation to peanut quota holders for loss of quota asset
value.
[[Page 116 STAT. 135]]
Sec. 1310. Repeal of superseded price support authority and effect of
repeal.
Subtitle D--Sugar
Sec. 1401. Sugar program.
Sec. 1402. Storage facility loans.
Sec. 1403. Flexible marketing allotments for sugar.
Subtitle E--Dairy
Sec. 1501. Milk price support program.
Sec. 1502. National dairy market loss payments.
Sec. 1503. Dairy export incentive and dairy indemnity programs.
Sec. 1504. Dairy product mandatory reporting.
Sec. 1505. Funding of dairy promotion and research program.
Sec. 1506. Fluid milk promotion.
Sec. 1507. Study of national dairy policy.
Sec. 1508. Studies of effects of changes in approach to national dairy
policy and fluid milk identity standards.
Subtitle F--Administration
Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Commission on application of payment limitations.
Sec. 1606. Adjustments of loans.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Extension of existing administrative authority regarding
loans.
Sec. 1609. Commodity Credit Corporation Inventory.
Sec. 1610. Reserve stock level.
Sec. 1611. Farm reconstitutions.
Sec. 1612. Assignment of payments.
Sec. 1613. Equitable relief from ineligibility for loans, payments, or
other benefits.
Sec. 1614. Tracking of benefits.
Sec. 1615. Estimates of net farm income.
Sec. 1616. Availability of incentive payments for certain producers.
Sec. 1617. Renewed availability of market loss assistance and certain
emergency assistance to persons that failed to receive
assistance under earlier authorities.
Sec. 1618. Producer retention of erroneously paid loan deficiency
payments and marketing loan gains.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 2001. Conservation security program.
Sec. 2002. Conservation compliance.
Sec. 2003. Partnerships and cooperation.
Sec. 2004. Administrative requirements for conservation programs.
Sec. 2005. Reform and assessment of conservation programs.
Sec. 2006. Conforming amendments.
Subtitle B--Conservation Reserve
Sec. 2101. Conservation reserve program.
Subtitle C--Wetlands Reserve Program
Sec. 2201. Reauthorization.
Sec. 2202. Enrollment.
Sec. 2203. Easements and agreements.
Sec. 2204. Changes in ownership; agreement modification; termination.
Subtitle D--Environmental Quality Incentives
Sec. 2301. Environmental quality incentives program.
Subtitle E--Grassland Reserve
Sec. 2401. Grassland reserve program.
Subtitle F--Other Conservation Programs
Sec. 2501. Agricultural management assistance.
Sec. 2502. Grazing, wildlife habitat incentive, source water protection,
and Great Lakes basin programs.
[[Page 116 STAT. 136]]
Sec. 2503. Farmland protection program.
Sec. 2504. Resource conservation and development program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Use of symbols, slogans, and logos.
Sec. 2507. Desert terminal lakes.
Subtitle G--Conservation Corridor Demonstration Program
Sec. 2601. Definitions.
Sec. 2602. Conservation corridor demonstration program.
Sec. 2603. Implementation of conservation corridor plan.
Sec. 2604. Funding requirements.
Subtitle H--Funding and Administration
Sec. 2701. Funding and administration.
Sec. 2702. Regulations.
TITLE III--TRADE
Subtitle A--Agricultural Trade Development and Assistance Act of 1954
and Related Statutes
Sec. 3001. United States policy.
Sec. 3002. Provision of agricultural commodities.
Sec. 3003. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 3004. Levels of assistance.
Sec. 3005. Food Aid Consultative Group.
Sec. 3006. Maximum level of expenditures.
Sec. 3007. Administration.
Sec. 3008. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 3009. Sale procedure.
Sec. 3010. Prepositioning.
Sec. 3011. Transportation and related costs.
Sec. 3012. Expiration date.
Sec. 3013. Micronutrient fortification programs.
Sec. 3014. John Ogonowski Farmer-to-Farmer Program.
Subtitle B--Agricultural Trade Act of 1978
Sec. 3101. Exporter assistance initiative.
Sec. 3102. Export credit guarantee program.
Sec. 3103. Market access program.
Sec. 3104. Export enhancement program.
Sec. 3105. Foreign market development cooperator program.
Sec. 3106. Food for progress.
Sec. 3107. McGovern-Dole International Food for Education and Child
Nutrition Program.
Subtitle C--Miscellaneous
Sec. 3201. Surplus commodities for developing or friendly countries.
Sec. 3202. Bill Emerson Humanitarian Trust Act.
Sec. 3203. Emerging markets.
Sec. 3204. Biotechnology and agricultural trade program.
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global market strategy.
Sec. 3207. Report on use of perishable commodities and live animals.
Sec. 3208. Study on fee for services.
Sec. 3209. Sense of Congress concerning foreign assistance programs.
Sec. 3210. Sense of the Senate concerning agricultural trade.
TITLE IV--NUTRITION PROGRAMS
Sec. 4001. Short title.
Subtitle A--Food Stamp Program
Sec. 4101. Encouragement of payment of child support.
Sec. 4102. Simplified definition of income.
Sec. 4103. Standard deduction.
Sec. 4104. Simplified utility allowance.
Sec. 4105. Simplified determination of housing costs.
Sec. 4106. Simplified determination of deductions.
Sec. 4107. Simplified definition of resources.
[[Page 116 STAT. 137]]
Sec. 4108. Alternative issuance systems in disasters.
Sec. 4109. State option to reduce reporting requirements.
Sec. 4110. Cost neutrality for electronic benefit transfer systems.
Sec. 4111. Report on electronic benefit transfer systems.
Sec. 4112. Alternative procedures for residents of certain group
facilities.
Sec. 4113. Redemption of benefits through group living arrangements.
Sec. 4114. Availability of food stamp program applications on the
Internet.
Sec. 4115. Transitional food stamps for families moving from welfare.
Sec. 4116. Grants for simple application and eligibility determination
systems and improved access to benefits.
Sec. 4117. Delivery to retailers of notices of adverse action.
Sec. 4118. Reform of quality control system.
Sec. 4119. Improvement of calculation of State performance measures.
Sec. 4120. Bonuses for States that demonstrate high or most improved
performance.
Sec. 4121. Employment and training program.
Sec. 4122. Reauthorization of food stamp program and food distribution
program on Indian reservations.
Sec. 4123. Expanded grant authority.
Sec. 4124. Consolidated block grants for Puerto Rico and American Samoa.
Sec. 4125. Assistance for community food projects.
Sec. 4126. Availability of commodities for the emergency food assistance
program.
Subtitle B--Commodity Distribution
Sec. 4201. Commodity supplemental food program.
Sec. 4202. Commodity donations.
Sec. 4203. Distribution of surplus commodities to special nutrition
projects.
Sec. 4204. Emergency food assistance.
Subtitle C--Child Nutrition and Related Programs
Sec. 4301. Commodities for school lunch program.
Sec. 4302. Eligibility for free and reduced price meals.
Sec. 4303. Purchases of locally produced foods.
Sec. 4304. Applicability of Buy-American requirement to Puerto Rico.
Sec. 4305. Fruit and vegetable pilot program.
Sec. 4306. Eligibility for assistance under the special supplemental
nutrition program for women, infants, and children.
Sec. 4307. WIC farmers' market nutrition program.
Subtitle D--Miscellaneous
Sec. 4401. Partial restoration of benefits to legal immigrants.
Sec. 4402. Seniors farmers' market nutrition program.
Sec. 4403. Nutrition information and awareness pilot program.
Sec. 4404. Hunger fellowship program.
Sec. 4405. General effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 5001. Direct loans.
Sec. 5002. Financing of bridge loans.
Sec. 5003. Amount of guarantee of loans for farm operations on tribal
lands.
Sec. 5004. Guarantee of loans made under State beginning farmer or
rancher programs.
Sec. 5005. Down Payment Loan Program.
Sec. 5006. Beginning farmer and rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 5101. Direct loans.
Sec. 5102. Suspension of limitation on period for which borrowers are
eligible for guaranteed assistance.
Subtitle C--Emergency Loans
Sec. 5201. Emergency loans in response to an emergency resulting from
quarantines.
Subtitle D--Administrative Provisions
Sec. 5301. Evaluations of direct and guaranteed loan programs.
Sec. 5302. Eligibility of trusts and limited liability companies for
farm ownership loans, farm operating loans, and emergency
loans.
[[Page 116 STAT. 138]]
Sec. 5303. Debt settlement.
Sec. 5304. Temporary authority to enter into contracts; private
collection agencies.
Sec. 5305. Interest rate options for loans in servicing.
Sec. 5306. Elimination of requirement that Secretary require county
committees to certify in writing that certain loan reviews
have been conducted.
Sec. 5307. Simplified loan guarantee application available for loans of
greater amounts.
Sec. 5308. Inventory property.
Sec. 5309. Administration of certified lenders and preferred certified
lenders programs.
Sec. 5310. Definitions.
Sec. 5311. Loan authorization levels.
Sec. 5312. Reservation of funds for direct operating loans for beginning
farmers and ranchers.
Sec. 5313. Interest rate reduction program.
Sec. 5314. Reamortization of recapture payments.
Sec. 5315. Allocation of certain funds for socially disadvantaged
farmers and ranchers.
Sec. 5316. Waiver of borrower training certification requirement.
Sec. 5317. Timing of loan assessments.
Sec. 5318. Annual review of borrowers.
Sec. 5319. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 5320. Making and servicing of loans by personnel of State, county,
or area committees.
Sec. 5321. Eligibility of employees of State, county, or area committee
for loans and loan guarantees.
Subtitle E--Farm Credit
Sec. 5401. Repeal of burdensome approval requirements.
Sec. 5402. Banks for cooperatives.
Sec. 5403. Insurance corporation premiums.
Subtitle F--General Provisions
Sec. 5501. Technical amendments.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Consolidated Farm and Rural Development Act
Sec. 6001. Eligibility of rural empowerment zones and rural enterprise
communities for direct and guaranteed loans for essential
community facilities.
Sec. 6002. Water or waste disposal grants.
Sec. 6003. Rural business opportunity grants.
Sec. 6004. Child day care facilities.
Sec. 6005. Rural water and wastewater circuit rider program.
Sec. 6006. Multijurisdictional regional planning organizations.
Sec. 6007. Loan guarantees for certain rural development loans.
Sec. 6008. Tribal college and university essential community facilities.
Sec. 6009. Emergency and imminent community water assistance grant
program.
Sec. 6010. Water and waste facility grants for Native American tribes.
Sec. 6011. Grants for water systems for rural and native villages in
Alaska.
Sec. 6012. Grants to nonprofit organizations to finance the
construction, refurbishing, and servicing of individually-
owned household water well systems in rural areas for
individuals with low or moderate incomes.
Sec. 6013. Loans and loan guarantees for renewable energy systems.
Sec. 6014. Rural business enterprise grants.
Sec. 6015. Rural cooperative development grants.
Sec. 6016. Grants to broadcasting systems.
Sec. 6017. Business and industry loan modifications.
Sec. 6018. Use of rural development loans and grants for other purposes.
Sec. 6019. Simplified application forms for loan guarantees.
Sec. 6020. Definition of rural and rural area.
Sec. 6021. National Rural Development Partnership.
Sec. 6022. Rural telework.
Sec. 6023. Historic barn preservation.
Sec. 6024. Grants for NOAA weather radio transmitters.
Sec. 6025. Grants to train farm workers in new technologies and to train
farm workers in specialized skills necessary for higher value
crops.
Sec. 6026. Rural community advancement program.
Sec. 6027. Delta Regional Authority.
Sec. 6028. Northern Great Plains Regional Authority.
[[Page 116 STAT. 139]]
Sec. 6029. Rural business investment program.
Sec. 6030. Rural strategic investment program.
Sec. 6031. Funding of pending rural development loan and grant
applications.
Subtitle B--Rural Electrification Act of 1936
Sec. 6101. Guarantees for bonds and notes issued for electrification or
telephone purposes.
Sec. 6102. Expansion of 911 access.
Sec. 6103. Enhancement of access to broadband service in rural areas.
Subtitle C--Food, Agriculture, Conservation, and Trade Act of 1990
Sec. 6201. Alternative Agricultural Research and Commercialization
Corporation.
Sec. 6202. Rural electronic commerce extension program.
Sec. 6203. Telemedicine and distance learning services in rural areas.
Subtitle D--SEARCH Grants for Small Communities
Sec. 6301. Definitions.
Sec. 6302. SEARCH grant program.
Sec. 6303. Report.
Sec. 6304. Funding.
Subtitle E--Miscellaneous
Sec. 6401. Value-added agricultural product market development grants.
Sec. 6402. Agriculture innovation center demonstration program.
Sec. 6403. Fund for Rural America.
Sec. 6404. Rural local television broadcast signal loan guarantees.
Sec. 6405. Rural firefighters and emergency personnel grant program.
Sec. 6406. Sense of Congress on rural policy coordination.
TITLE VII--RESEARCH AND RELATED MATTERS
Subtitle A--Extensions
Sec. 7101. National rural information center clearinghouse.
Sec. 7102. Grants and fellowships for food and agricultural sciences
education.
Sec. 7103. Policy research centers.
Sec. 7104. Human nutrition intervention and health promotion research
program.
Sec. 7105. Pilot research program to combine medical and agricultural
research.
Sec. 7106. Nutrition education program.
Sec. 7107. Continuing animal health and disease research programs.
Sec. 7108. Appropriations for research on national or regional problems.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities
at 1890 land-grant colleges, including Tuskegee University.
Sec. 7110. National research and training virtual centers.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science and
education programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Aquaculture research facilities.
Sec. 7117. Rangeland research.
Sec. 7118. National genetics resources program.
Sec. 7119. High-priority research and extension initiatives.
Sec. 7120. Nutrient management research and extension initiative.
Sec. 7121. Agricultural telecommunications program.
Sec. 7122. Assistive technology program for farmers with disabilities.
Sec. 7123. Partnerships for high-value agricultural product quality
research.
Sec. 7124. Biobased products.
Sec. 7125. Integrated research, education, and extension competitive
grants program.
Sec. 7126. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7127. 1994 Institution research grants.
Sec. 7128. Endowment for 1994 Institutions.
Sec. 7129. Precision agriculture.
Sec. 7130. Thomas Jefferson Initiative for crop diversification.
Sec. 7131. Support for research regarding diseases of wheat, triticale,
and barley caused by fusarium graminearum or by tilletia
indica.
Sec. 7132. Office of Pest Management Policy.
Sec. 7133. National Agricultural Research, Extension, Education, and
Economics Advisory Board.
Sec. 7134. Grants for research on production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities and
forest products.
[[Page 116 STAT. 140]]
Sec. 7135. Agricultural experiment stations research facilities.
Sec. 7136. Competitive, special, and facilities research grants national
research initiative.
Sec. 7137. Federal agricultural research facilities authorization of
appropriations.
Sec. 7138. Critical agricultural materials research.
Sec. 7139. Aquaculture.
Subtitle B--Modifications
Sec. 7201. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7202. Carryover for experiment stations.
Sec. 7203. Authorization percentages for research and extension formula
funds.
Sec. 7204. Carryover for eligible institutions.
Sec. 7205. Initiative for future agriculture and food systems.
Sec. 7206. Eligibility for integrated grants program.
Sec. 7207. Agricultural Research, Extension, and Education Reform Act of
1998.
Sec. 7208. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 7209. National Agricultural Research, Extension, and Teaching
Policy Act of 1977.
Sec. 7210. Biotechnology risk assessment research.
Sec. 7211. Competitive, special, and facilities research grants.
Sec. 7212. Matching funds requirement for research and extension
activities of 1890 Institutions.
Sec. 7213. Matching requirements for research and extension formula
funds for insular area land-grant institutions.
Sec. 7214. Definition of food and agricultural sciences.
Sec. 7215. Federal Extension Service.
Sec. 7216. Policy research centers.
Sec. 7217. Availability of competitive grant funds.
Sec. 7218. Organic agriculture research and extension initiative.
Sec. 7219. Senior scientific research service.
Sec. 7220. Termination of certain schedule a appointments.
Sec. 7221. Biosecurity planning and response programs.
Sec. 7222. Indirect costs for small business innovation research grants.
Sec. 7223. Carbon cycle research.
Subtitle C--Repeal of Certain Activities and Authorities
Sec. 7301. Food Safety Research Information Office and National
Conference.
Sec. 7302. Reimbursement of expenses under Sheep Promotion, Research,
and Information Act of 1994.
Sec. 7303. Market expansion research.
Sec. 7304. National Advisory Board on Agricultural Weather.
Sec. 7305. Agricultural information exchange with Ireland.
Sec. 7306. Pesticide resistance study.
Sec. 7307. Expansion of education study.
Sec. 7308. Task force on 10-year strategic plan for agricultural
research facilities.
Subtitle D--New Authorities
Sec. 7401. Subtitle definitions.
Sec. 7402. Research equipment grants.
Sec. 7403. Joint requests for proposals.
Sec. 7404. Review of Agricultural Research Service.
Sec. 7405. Beginning farmer and rancher development program.
Sec. 7406. Sense of Congress regarding doubling of funding for
agricultural research.
Sec. 7407. Organic production and market data initiatives.
Sec. 7408. International organic research collaboration.
Sec. 7409. Report on producers and handlers of organic agricultural
products.
Sec. 7410. Report on genetically modified pest-protected plants.
Sec. 7411. Study of nutrient banking.
Sec. 7412. Grants for youth organizations.
Subtitle E--Miscellaneous
Sec. 7501. Resident instruction and distance education at institutions
of higher education in United States insular areas.
Sec. 7502. Definitions.
Sec. 7503. Resident instruction and distance education grants program
for insular area institutions of higher education.
Sec. 7504. Declaration of extraordinary emergency and resulting
authorities.
Sec. 7505. Agricultural biotechnology research and development for
developing countries.
Sec. 7506. Land acquisition authority, national peanut research
laboratory, Dawson, Georgia.
[[Page 116 STAT. 141]]
TITLE VIII--FORESTRY
Subtitle A--Cooperative Forestry Assistance Act of 1978
Sec. 8001. Repeal of forestry incentives program and stewardship
incentive program.
Sec. 8002. Establishment of forest land enhancement program.
Sec. 8003. Enhanced community fire protection.
Subtitle B--Amendments to Other Laws
Sec. 8101. Sustainable forestry outreach initiative; renewable resources
extension activities.
Sec. 8102. Office of International Forestry.
Subtitle C--Miscellaneous Provisions
Sec. 8201. McIntire-Stennis cooperative forestry research program.
TITLE IX--ENERGY
Sec. 9001. Definitions.
Sec. 9002. Federal procurement of biobased products.
Sec. 9003. Biorefinery development grants.
Sec. 9004. Biodiesel fuel education program.
Sec. 9005. Energy audit and renewable energy development program.
Sec. 9006. Renewable energy systems and energy efficiency improvements.
Sec. 9007. Hydrogen and fuel cell technologies.
Sec. 9008. Biomass research and development.
Sec. 9009. Cooperative research and extension projects.
Sec. 9010. Continuation of bioenergy program.
TITLE X--MISCELLANEOUS
Subtitle A--Crop Insurance
Sec. 10001. Equal crop insurance treatment of potatoes and sweet
potatoes.
Sec. 10002. Continuous coverage.
Sec. 10003. Quality loss adjustment procedures.
Sec. 10004. Adjusted gross revenue insurance pilot program.
Sec. 10005. Sense of Congress on expansion of crop insurance coverage.
Sec. 10006. Report on specialty crop insurance.
Subtitle B--Disaster Assistance
Sec. 10101. Reference to sea grass and sea oats as crops covered by
noninsured crop disaster assistance program.
Sec. 10102. Emergency grants to assist low-income migrant and seasonal
farmworkers.
Sec. 10103. Emergency loans for seed producers.
Sec. 10104. Assistance for livestock producers.
Sec. 10105. Market loss assistance for apple producers.
Sec. 10106. Market loss assistance for onion producers.
Sec. 10107. Commercial fisheries failure.
Sec. 10108. Study of feasibility of producer indemnification from
Government-caused disasters.
Subtitle C--Tree Assistance Program
Sec. 10201. Definitions.
Sec. 10202. Eligibility.
Sec. 10203. Assistance.
Sec. 10204. Limitations on assistance.
Sec. 10205. Authorization of appropriations.
Subtitle D--Animal Welfare
Sec. 10301. Definition of animal under the Animal Welfare Act.
Sec. 10302. Prohibition on interstate movement of animals for animal
fighting.
Sec. 10303. Penalties and foreign commerce provisions of the Animal
Welfare Act.
Sec. 10304. Report on rats, mice, and birds.
Sec. 10305. Enforcement of Humane Methods of Slaughter Act of 1958.
Subtitle E--Animal Health Protection
Sec. 10401. Short title.
Sec. 10402. Findings.
Sec. 10403. Definitions.
Sec. 10404. Restriction on importation or entry.
[[Page 116 STAT. 142]]
Sec. 10405. Exportation.
Sec. 10406. Interstate movement.
Sec. 10407. Seizure, quarantine, and disposal.
Sec. 10408. Inspections, seizures, and warrants.
Sec. 10409. Detection, control, and eradication of diseases and pests.
Sec. 10410. Veterinary accreditation program.
Sec. 10411. Cooperation.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10414. Penalties.
Sec. 10415. Enforcement.
Sec. 10416. Regulations and orders.
Sec. 10417. Authorization of appropriations.
Sec. 10418. Repeals and conforming amendments.
Subtitle F--Livestock
Sec. 10501. Transportation of poultry and other animals.
Sec. 10502. Swine contractors.
Sec. 10503. Right to discuss terms of contract.
Sec. 10504. Veterinary training.
Sec. 10505. Pseudorabies eradication program.
Subtitle G--Specialty Crops
Sec. 10601. Marketing orders for caneberries.
Sec. 10602. Availability of section 32 funds.
Sec. 10603. Purchase of specialty crops.
Sec. 10604. Protection for purchasers of farm products.
Sec. 10605. Farmers' market promotion program.
Sec. 10606. National organic certification cost-share program.
Sec. 10607. Exemption of certified organic products from assessments.
Sec. 10608. Cranberry acreage reserve program.
Subtitle H--Administration
Sec. 10701. Initial rate of basic pay for employees of county
committees.
Sec. 10702. Commodity Futures Trading Commission pay comparability.
Sec. 10703. Overtime and holiday pay.
Sec. 10704. Assistant Secretary of Agriculture for Civil Rights.
Sec. 10705. Operation of Graduate School of Department of Agriculture.
Sec. 10706. Implementation funding and information management.
Sec. 10707. Outreach and assistance for socially disadvantaged farmers
and ranchers.
Sec. 10708. Transparency and accountability for socially disadvantaged
farmers and ranchers; public disclosure requirements for
county committee elections.
Subtitle I--General Provisions
Sec. 10801. Cotton classification services.
Sec. 10802. Program of public education regarding use of biotechnology
in producing food for human consumption.
Sec. 10803. Chino Dairy Preserve Project.
Sec. 10804. Grazinglands Research Laboratory.
Sec. 10805. Food and Agricultural Policy Research Institute.
Sec. 10806. Market names for catfish and ginseng.
Sec. 10807. Food Safety Commission.
Sec. 10808. Pasteurization.
Sec. 10809. Rulemaking on labeling of irradiated food; certain
petitions.
Sec. 10810. Penalties for violations of Plant Protection Act.
Sec. 10811. Preclearance quarantine inspections.
Sec. 10812. Connecticut River Atlantic Salmon Commission.
Sec. 10813. Pine Point School.
Sec. 10814. 7-month extension of chapter 12 of title 11 of the United
States Code.
Sec. 10815. Practices involving nonambulatory livestock.
Sec. 10816. Country of origin labeling.
Subtitle J--Miscellaneous Studies and Reports
Sec. 10901. Report on specialty crop purchases.
Sec. 10902. Report on pouched and canned salmon.
Sec. 10903. Study on updating yields.
Sec. 10904. Report on effect of farm program payments.
Sec. 10905. Chiloquin Dam fish passage feasibility study.
[[Page 116 STAT. 143]]
Sec. 10906. Report on geographically disadvantaged farmers and ranchers.
Sec. 10907. Studies on agricultural research and technology.
Sec. 10908. Report on tobacco settlement agreement.
Sec. 10909. Report on sale and use of pesticides for agricultural uses.
Sec. 10910. Review of operation of agricultural and natural resource
programs on tribal trust land.
TITLE I--COMMODITY PROGRAMS
SEC. 1001. DEFINITIONS. <<NOTE: 7 USC 7901.>>
In this title (other than subtitle C):
(1) Agricultural act of 1949.--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
of the Federal Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7301).
(2) Base acres.--The term ``base acres'', with respect to a
covered commodity on a farm, means the number of acres
established under section 1101 with respect to the covered
commodity on the election made by the owner of the farm under
subsection (a) of such section.
(3) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made to producers on a farm under
section 1104.
(4) Covered commodity.--The term ``covered commodity'' means
wheat, corn, grain sorghum, barley, oats, upland cotton, rice,
soybeans, and other oilseeds.
(5) Direct payment.--The term ``direct payment'' means a
payment made to producers on a farm under section 1103.
(6) Effective price.--The term ``effective price'', with
respect to a covered commodity for a crop year, means the price
calculated by the Secretary under section 1104 to determine
whether counter-cyclical payments are required to be made for
that crop year.
(7) 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.
(8) Loan commodity.--The term `loan commodity' means wheat,
corn, grain sorghum, barley, oats, upland cotton, extra long
staple cotton, rice, soybeans, other oilseeds, wool, mohair,
honey, dry peas, lentils, and small chickpeas.
(9) Other oilseed.--The term ``other oilseed'' means a crop
of sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, another
oilseed.
(10) Payment acres.--The term ``payment acres'' means 85
percent of the base acres of a covered commodity on a
[[Page 116 STAT. 144]]
farm, as established under section 1101, on which direct
payments and counter-cyclical payments are made.
(11) Payment yield.--
(A) In general.--The term ``payment yield'' means
the yield established under section 1102 for a farm for
a covered commodity.
(B) Updated payment yield.--The term ``updated
payment yield'' means the payment yield elected by the
owner of a farm under section 1102(e) to be used in
calculating the counter-cyclical payments for the farm.
(12) Producer.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper that shares in the
risk of producing a crop and is entitled to share in the crop
available for marketing from the farm, or would have 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 and shall
ensure that program requirements do not adversely affect the
ability of the grower to receive a payment under this title.
(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) Target price.--The term ``target price'' means the
price per bushel (or other appropriate unit in the case of
upland cotton, rice, and other oilseeds) of a covered commodity
used to determine the payment rate for counter-cyclical
payments.
(16) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
Subtitle A--Direct Payments and Counter-Cyclical Payments
SEC. 1101. <<NOTE: 7 USC 7911.>> ESTABLISHMENT OF BASE ACRES AND
PAYMENT ACRES FOR A FARM.
(a) Election by Owner of Base Acres Calculation Method.--
(1) Alternative calculation methods.--For the purpose of
making direct payments and counter-cyclical payments with
respect to a farm, the Secretary shall give an owner of the farm
an opportunity to elect 1 of the following as the method by
which the base acres of all covered commodities on the farm are
to be determined:
(A) Subject to paragraphs (3) and (4), the 4-year
average of the following:
(i) Acreage planted on the farm to covered
commodities for harvest, grazing, haying, silage,
or other similar purposes for the 1998 through
2001 crop years.
(ii) Any acreage on the farm that the
producers were prevented from planting during the
1998 through 2001 crop years to covered
commodities because of
[[Page 116 STAT. 145]]
drought, flood, or other natural disaster, or
other condition beyond the control of the
producers, as determined by the Secretary.
(B) Subject to paragraph (3), the sum of the
following:
(i) The contract acreage (as defined in
section 102 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7202)) used by
the Secretary to calculate the fiscal year 2002
payment authorized under section 114 of such Act
(7 U.S.C. 7214) for the covered commodities on the
farm.
(ii) The 4-year average of eligible oilseed
acreage on the farm for the 1998 through 2001 crop
years, as determined by the Secretary under
paragraph (2).
(2) Eligible oilseed acreage.--
(A) Calculation.--For purposes of paragraph
(1)(B)(ii), the eligible acreage for each oilseed on a
farm during each of the 1998 through 2001 crop years
shall be determined in the manner provided in paragraph
(1)(A), except that the total acreage for all oilseeds
on the farm for a crop year may not exceed the
difference between--
(i) the total acreage determined under
paragraph (1)(A) for all covered commodities for
that crop year; and
(ii) the total contract acreage determined
under paragraph (1)(B)(i).
(B) Effect of negative number.--If the subtraction
performed under subparagraph (A) results in a negative
number, the eligible oilseed acreage on the farm for
that crop year shall be zero for purposes of determining
the 4-year average.
(C) Offset of contract acreage.--The owner of a farm
may increase the eligible acreage for an oilseed on the
farm by reducing the contract acreage determined under
paragraph (1)(B)(i) for 1 or more covered commodities on
an acre-for-acre basis, except that the total base
acreage for each oilseed on the farm may not exceed the
4-year average of each oilseed determined under
paragraph (1)(B)(ii).
(3) Inclusion of all 4 years in average.--For the purpose of
determining a 4-year acreage average under this subsection for a
farm, the Secretary shall not exclude any crop year in which a
covered commodity was not planted.
(4) Treatment of multiple planting or prevented planting.--
For the purpose of determining under paragraph (1)(A) the
acreage on a farm that producers planted or were prevented from
planting during the 1998 through 2001 crop years to covered
commodities, if the acreage that was planted or prevented from
being planted was devoted to another covered commodity in the
same crop year (other than a covered commodity produced under an
established practice of double cropping), the owner may elect
the commodity to be used for that crop year in determining the
4-year average, but may not include both the initial commodity
and the subsequent commodity.
(b) Single Election; Time for Election.--
(1) Notice of election opportunity.--As soon as practicable
after the date of enactment of this Act, the Secretary
[[Page 116 STAT. 146]]
shall provide notice to owners of farms regarding their
opportunity to make the election described in subsection (a).
The notice shall include the following:
(A) Notice that the opportunity of an owner to make
the election is being provided only once.
(B) Information regarding the manner in which the
election must be made and the time periods and manner in
which notice of the election must be submitted to the
Secretary.
(2) Election deadline.--Within the time period and in the
manner prescribed pursuant to paragraph (1), the owner of a farm
shall submit to the Secretary notice of the election made by the
owner under subsection (a).
(c) Effect of Failure To Make Election.--If the owner of a farm
fails to make the election under subsection (a) or fails to timely
notify the Secretary of the election made, as required by subsection
(b), the owner shall be deemed to have made the election described in
subsection (a)(1)(B) to determine base acres for all covered commodities
on the farm.
(d) Application of Election to All Covered Commodities.--The
election made under subparagraph (A) or (B) of subsection (a)(1), or
deemed to be made under subsection (c), with respect to a farm shall
apply to all of the covered commodities on the farm.
(e) Treatment of Conservation Reserve Contract Acreage.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for covered
commodities for a farm whenever either of the following
circumstances occurs:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(2) Special payment rules.--For the crop year in which a
base acres adjustment under paragraph (1) is first made, the
owner of the farm shall elect to receive either direct payments
and counter-cyclical payments with respect to the acreage added
to the farm under this subsection or a prorated payment under
the conservation reserve contract, but not both.
(f) Payment Acres.--The payment acres for a covered commodity on a
farm shall be equal to 85 percent of the base acres for the covered
commodity.
(g) Prevention of Excess Base Acres.--
(1) Required reduction.--If the sum of the base acres for a
farm, together with the acreage described in paragraph (2),
exceeds the actual cropland acreage of the farm, the Secretary
shall reduce the base acres for 1 or more covered commodities
for the farm or the base acres for peanuts for the farm under
subtitle C so that the sum of the base acres and acreage
described in paragraph (2) does not exceed the actual cropland
acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
[[Page 116 STAT. 147]]
(A) Any base acres for peanuts for the farm under
subtitle C.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres or the base
acres for peanuts for the farm under subtitle C against which
the reduction required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1302(f) when applying the
requirements of this subsection.
(h) Permanent Reduction in Base Acres.--The owner of a farm may
reduce, at any time, the base acres for any covered commodity for the
farm. The reduction shall be permanent and made in the manner prescribed
by the Secretary.
SEC. 1102. ESTABLISHMENT OF PAYMENT YIELD.
(a) Establishment and Purpose.--For the purpose of making direct
payments and counter-cyclical payments under this subtitle, the
Secretary shall provide for the establishment of a payment yield for
each farm for each covered commodity in accordance with this section.
(b) Use of Farm Program Payment Yield.--Except as otherwise provided
in this section, the payment yield for each of the 2002 through 2007
crops of a covered commodity for a farm shall be the farm program
payment yield established for the 1995 crop of the covered commodity
under section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465), as
adjusted by the Secretary to account for any additional yield payments
made with respect to that crop under section 505(b)(2) of that Act.
(c) Farms Without Farm Program Payment Yield.--In the case of a farm
for which a farm program payment yield is unavailable for a covered
commodity (other than soybeans or other oilseeds), the Secretary shall
establish an appropriate payment yield for the covered commodity on the
farm taking into consideration the farm program payment yields
applicable to the commodity under subsection (b) for similar farms, but
before the yields for the similar farms are updated as provided in
subsection (e).
(d) Payment Yields for Oilseeds.--
(1) Determination of average yield.--In the case of soybeans
and each other oilseed, the Secretary shall determine the
average yield per planted acre for the oilseed on a farm for the
1998 through 2001 crop years, excluding any crop year in which
the acreage planted to the oilseed was zero.
(2) Adjustment for payment yield.--The payment yield for a
farm for an oilseed shall be equal to the product of the
following:
[[Page 116 STAT. 148]]
(A) The average yield for the oilseed determined
under paragraph (1).
(B) The ratio resulting from dividing the national
average yield for the oilseed for the 1981 through 1985
crops by the national average yield for the oilseed for
the 1998 through 2001 crops.
(3) Use of partial county average yield.--If the yield per
planted acre for a crop of an oilseed for a farm for any of the
1998 through 2001 crop years was less than 75 percent of the
county yield for that oilseed, the Secretary shall assign a
yield for that crop year equal to 75 percent of the county yield
for the purpose of determining the average under paragraph (1).
(e) Opportunity to Partially Update Yields Used to Determine
Counter-Cyclical Payments.--
(1) Election to update.--If the owner of a farm elects to
use the base acres calculation method described in section
1101(a)(1)(A), the owner shall also have a 1-time opportunity to
elect to use 1 of the methods described in paragraph (3) to
partially update the payment yields that would otherwise be used
in calculating any counter-cyclical payments for covered
commodities on the farm.
(2) Time for election.--The election under paragraph (1)
shall be made at the same time and in the same manner as the
Secretary prescribes for the election required under section
1101.
(3) Methods of updating yields.--If the owner of a farm
elects to update yields under this subsection, the payment yield
for a covered commodity on the farm, for the purpose of
calculating counter-cyclical payments only, shall be equal to
the yield determined using either of the following:
(A) The sum of the following:
(i) The payment yield applicable for direct
payments for the covered commodity on the farm.
(ii) 70 percent of the difference between--
(I) the average yield per planted
acre for the crop of the covered
commodity on the farm for the 1998
through 2001 crop years, as determined
by the Secretary, excluding any crop
year in which the acreage planted to the
crop of the covered commodity was zero;
and
(II) the payment yield applicable
for direct payments for the covered
commodity on the farm.
(B) 93.5 percent of the average of the yield per
planted acre for the crop of the covered commodity on
the farm for the 1998 through 2001 crop years, as
determined by the Secretary, excluding any crop year in
which the acreage planted to the crop of the covered
commodity was zero.
(4) Use of partial county average yield.--If the yield per
planted acre for a crop of the covered commodity for a farm for
any of the 1998 through 2001 crop years was less than 75 percent
of the county yield for that commodity, the Secretary shall
assign a yield for that crop year equal to 75 percent of the
county yield for the purpose of determining the average yield
under paragraph (3).
(5) Application of election and method to all covered
commodities.--The owner of a farm may not elect the method
[[Page 116 STAT. 149]]
described in paragraph (3)(A) for 1 covered commodity on the
farm and the method described in paragraph (3)(B) for other
covered commodities on the farm.
SEC. 1103. <<NOTE: 7 USC 7913.>> AVAILABILITY OF DIRECT PAYMENTS.
(a) Payment Required.--For each of the 2002 through 2007 crop years
of each covered commodity, the Secretary shall make direct payments to
producers on farms for which payment yields and base acres are
established.
(b) Payment Rate.--The payment rates used to make direct payments
with respect to covered commodities for a crop year are as follows:
(1) Wheat, $0.52 per bushel.
(2) Corn, $0.28 per bushel.
(3) Grain sorghum, $0.35 per bushel.
(4) Barley, $0.24 per bushel.
(5) Oats, $0.024 per bushel.
(6) Upland cotton, $0.0667 per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.44 per bushel.
(9) Other oilseeds, $0.0080 per pound.
(c) Payment Amount.--The amount of the direct payment to be paid to
the producers on a farm for a covered commodity for a crop year shall be
equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield for the covered commodity for the
farm.
(d) Time for Payment.--
(1) In general.--The Secretary shall make direct payments--
(A) in the case of the 2002 crop year, as soon as
practicable after the date of enactment of this Act; and
(B) in the case of each of the 2003 through 2007
crop years, not before October 1 of the calendar year in
which the crop of the covered commodity is harvested.
(2) Advance payments.--At the option of the producers on a
farm, up to 50 percent of the direct payment for a covered
commodity for any of the 2003 through 2007 crop years shall be
paid to the producers in advance. The producers shall select the
month within which the advance payment for a crop year will be
made. The month selected may be any month during the period
beginning on December 1 of the calendar year before the calendar
year in which the crop of the covered commodity is harvested
through the month within which the direct payment would
otherwise be made. The producers may change the selected month
for a subsequent advance payment by providing advance notice to
the Secretary.
(3) Repayment of advance payments.--If a producer on a farm
that receives an advance direct payment for a crop year ceases
to be a producer on that farm, or the extent to which the
producer shares in the risk of producing a crop changes, before
the date the remainder of the direct payment is made, the
producer shall be responsible for repaying the Secretary the
applicable amount of the advance payment, as determined by the
Secretary.
[[Page 116 STAT. 150]]
SEC. 1104. <<NOTE: 7 USC 7914.>> AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS.
(a) Payment Required.--For each of the 2002 through 2007 crop years
for each covered commodity, the Secretary shall make counter-cyclical
payments to producers on farms for which payment yields and base acres
are established with respect to the covered commodity if the Secretary
determines that the effective price for the covered commodity is less
than the target price for the covered commodity.
(b) Effective Price.--For purposes of subsection (a), the effective
price for a covered commodity is equal to the sum of the following:
(1) The higher of the following:
(A) The national average market price received by
producers during the 12-month marketing year for the
covered commodity, as determined by the Secretary.
(B) The national average loan rate for a marketing
assistance loan for the covered commodity in effect for
the applicable period under subtitle B.
(2) The payment rate in effect for the covered commodity
under section 1103 for the purpose of making direct payments
with respect to the covered commodity.
(c) Target Price.--
(1) 2002 and 2003 crop years.--For purposes of the 2002 and
2003 crop years, the target prices for covered commodities shall
be as follows:
(A) Wheat, $3.86 per bushel.
(B) Corn, $2.60 per bushel.
(C) Grain sorghum, $2.54 per bushel.
(D) Barley, $2.21 per bushel.
(E) Oats, $1.40 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.0980 per pound.
(2) Subsequent crop years.--For purposes of each of the 2004
through 2007 crop years, the target prices for covered
commodities shall be as follows:
(A) Wheat, $3.92 per bushel.
(B) Corn, $2.63 per bushel.
(C) Grain sorghum, $2.57 per bushel.
(D) Barley, $2.24 per bushel.
(E) Oats, $1.44 per bushel.
(F) Upland cotton, $0.7240 per pound.
(G) Rice, $10.50 per hundredweight.
(H) Soybeans, $5.80 per bushel.
(I) Other oilseeds, $0.1010 per pound.
(d) Payment Rate.--The payment rate used to make counter-cyclical
payments with respect to a covered commodity for a crop year shall be
equal to the difference between--
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for
the covered commodity.
(e) Payment Amount.--If counter-cyclical payments are required to be
paid for any of the 2002 through 2007 crop years of a covered commodity,
the amount of the counter-cyclical payment to be paid to the producers
on a farm for that crop year shall be equal to the product of the
following:
[[Page 116 STAT. 151]]
(1) The payment rate specified in subsection (d).
(2) The payment acres of the covered commodity on the farm.
(3) The payment yield or updated payment yield for the farm,
depending on the election of the owner of the farm under section
1102.
(f) Time for Payments.--
(1) General rule.--If the Secretary determines under
subsection (a) that counter-cyclical payments are required to be
made under this section for the crop of a covered commodity, the
Secretary shall make the counter-cyclical payments for the crop
as soon as practicable after the end of the 12-month marketing
year for the covered commodity.
(2) Availability of partial payments.--If, before the end of
the 12-month marketing year for a covered commodity, the
Secretary estimates that counter-cyclical payments will be
required for the crop of the covered commodity, the Secretary
shall give producers on a farm the option to receive partial
payments of the counter-cyclical payment projected to be made
for that crop of the covered commodity.
(3) Time for partial payments.--
(A) 2002 through 2006 crop years.--When the
Secretary makes partial payments available under
paragraph (2) for a covered commodity for any of the
2002 through 2006 crop years--
(i) the first partial payment for the crop
year shall be made not earlier than October 1,
and, to the maximum extent practicable, not later
than October 31, of the calendar year in which the
crop of the covered commodity is harvested;
(ii) the second partial payment shall be made
not earlier than February 1 of the next calendar
year; and
(iii) the final partial payment shall be made
as soon as practicable after the end of the 12-
month marketing year for the covered commodity.
(B) 2007 crop year.--When the Secretary makes
partial payments available for a covered commodity for
the 2007 crop year--
(i) the first partial payment shall be made
after completion of the first 6 months of the
marketing year for the covered commodity; and
(ii) the final partial payment shall be made
as soon as practicable after the end of the 12-
month marketing year for the covered commodity.
(4) Amount of partial payments.--
(A) 2002 through 2006 crop years.--
(i) First partial payment.--For each of the
2002 through 2006 crop years of a covered
commodity, the first partial payment under
paragraph (3) to the producers on a farm may not
exceed 35 percent of the projected counter-
cyclical payment for the covered commodity for the
crop year, as determined by the Secretary.
(ii) Second partial payment.--The second
partial payment for a covered commodity for a crop
year may not exceed the difference between--
[[Page 116 STAT. 152]]
(I) 70 percent of the projected
counter-cyclical payment (including any
revision thereof) for the crop of the
covered commodity; and
(II) the amount of the payment made
under clause (i).
(iii) Final payment.--The final payment for a
covered commodity for a crop year shall be equal
to the difference between--
(I) the actual counter-cyclical
payment to be made to the producers for
the covered commodity for that crop
year; and
(II) the amount of the partial
payments made to the producers under
clauses (i) and (ii) for that crop year.
(B) 2007 crop year.--
(i) First partial payment.--For the 2007 crop
year, the first partial payment under paragraph
(3) to the producers on a farm may not exceed 40
percent of the projected counter-cyclical payment
for the covered commodity for the crop year, as
determined by the Secretary.
(ii) Final payment.--The final payment for the
2007 crop year shall be equal to the difference
between--
(I) the actual counter-cyclical
payment to be made to the producers for
the covered commodity for that crop
year; and
(II) the amount of the partial
payment made to the producers under
clause (i).
(5) Repayment.--The producers on a farm that receive a
partial payment under this subsection for a crop year shall
repay to the Secretary the amount, if any, by which the total of
the partial payments exceed the actual counter-cyclical payment
to be made for the covered commodity for that crop year.
SEC. 1105. <<NOTE: 7 USC 7915.>> PRODUCER AGREEMENT REQUIRED AS
CONDITION OF PROVISION OF DIRECT PAYMENTS AND COUNTER-
CYCLICAL PAYMENTS.
(a) Compliance With Certain Requirements.--
(1) Requirements.--Before the producers on a farm may
receive direct payments or counter-cyclical payments with
respect to the farm, the producers shall agree, during the crop
year for which the payments are made and in exchange for the
payments--
(A) to 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.);
(B) to comply with applicable wetland protection
requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting flexibility
requirements of section 1106;
(D) to use the land on the farm, in a quantity equal
to the attributable base acres for the farm and any base
acres for peanuts for the farm under subtitle C for an
[[Page 116 STAT. 153]]
agricultural or conserving use, and not for a
nonagricultural commercial or industrial use, as
determined by the Secretary; and
(E) to effectively control noxious weeds and
otherwise maintain the land in accordance with sound
agricultural practices, as determined by the Secretary,
if the agricultural or conserving use involves the
noncultivation of any portion of the land referred to in
subparagraph (D).
(2) Compliance.--The Secretary may issue such rules as the
Secretary considers necessary to ensure producer compliance with
the requirements of paragraph (1).
(3) Modification.--At the request of the transferee or
owner, the Secretary may modify the requirements of this
subsection if the modifications are consistent with the
objectives of this subsection, as determined by the Secretary.
(b) Transfer or Change of Interest in Farm.--
(1) Termination.--Except as provided in paragraph (2), a
transfer of (or change in) the interest of the producers on a
farm in base acres for which direct payments or counter-cyclical
payments are made shall result in the termination of the
payments with respect to the base acres, unless the transferee
or owner of the acreage agrees to assume all obligations under
subsection (a). The termination shall take effect on the date
determined by the Secretary.
(2) Exception.--If a producer entitled to a direct payment
or counter-cyclical payment dies, becomes incompetent, or is
otherwise unable to receive the payment, the Secretary shall
make the payment, in accordance with rules issued by the
Secretary.
(c) Acreage Reports.--As a condition on the receipt of any benefits
under this subtitle or subtitle B, the Secretary shall require producers
on a farm to submit to the Secretary annual acreage reports with respect
to all cropland on the farm.
(d) Tenants and Sharecroppers.--In carrying out this subtitle, the
Secretary shall provide adequate safeguards to protect the interests of
tenants and sharecroppers.
(e) Sharing of Payments.--The Secretary shall provide for the
sharing of direct payments and counter-cyclical payments among the
producers on a farm on a fair and equitable basis.
SEC. 1106. <<NOTE: 7 USC 7916.>> PLANTING FLEXIBILITY.
(a) Permitted Crops.--Subject to subsection (b), any commodity or
crop may be planted on base acres on a farm.
(b) Limitations Regarding Certain Commodities.--
(1) General limitation.--The planting of an agricultural
commodity specified in paragraph (3) shall be prohibited on base
acres unless the commodity, if planted, is destroyed before
harvest.
(2) Treatment of trees and other perennials.--The planting
of an agricultural commodity specified in paragraph (3) that is
produced on a tree or other perennial plant shall be prohibited
on base acres.
(3) Covered agricultural commodities.--Paragraphs (1) and
(2) apply to the following agricultural commodities:
(A) Fruits.
(B) Vegetables (other than lentils, mung beans, and
dry peas).
[[Page 116 STAT. 154]]
(C) Wild rice.
(c) Exceptions.--Paragraphs (1) and (2) of subsection (b) shall not
limit the planting of an agricultural commodity specified in paragraph
(3) of that subsection--
(1) in any region in which there is a history of double-
cropping of covered commodities with agricultural commodities
specified in subsection (b)(3), as determined by the Secretary,
in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history of
planting agricultural commodities specified in subsection (b)(3)
on base acres, except that direct payments and counter-cyclical
payments shall be reduced by an acre for each acre planted to
such an agricultural commodity; or
(3) by the producers on a farm that the Secretary determines
has an established planting history of a specific agricultural
commodity specified in subsection (b)(3), except that--
(A) the quantity planted may not exceed the average
annual planting history of such agricultural commodity
by the producers on the farm in the 1991 through 1995 or
1998 through 2001 crop years (excluding any crop year in
which no plantings were made), as determined by the
Secretary; and
(B) direct payments and counter-cyclical payments
shall be reduced by an acre for each acre planted to
such agricultural commodity.
(d) Special Rule for 2002 Crop Year.--For the 2002 crop year only,
if the calculation of base acres under section 1101(a) results in total
base acres for a farm in excess of the contract acreage (as defined in
section 102 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7202)) for the farm used to calculate the fiscal year
2002 payment authorized under section 114 of such Act (7 U.S.C. 7214),
paragraphs (1) and (2) of subsection (b) shall not limit the harvesting
of an agricultural commodity specified in paragraph (3) of that
subsection on the excess base acres, except that direct payments and
counter-cyclical payments for the 2002 crop year shall be reduced by an
acre for each acre of the excess base acres planted to such an
agricultural commodity.
SEC. 1107. <<NOTE: 7 USC 7917.>> RELATION TO REMAINING PAYMENT
AUTHORITY UNDER PRODUCTION FLEXIBILITY CONTRACTS.
(a) Termination of Superseded Payment Authority.--Notwithstanding
section 113(a)(7) of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7213(a)(7)) or any other provision of law, the
Secretary shall not make payments for fiscal year 2002 after the date of
enactment of this Act under a production flexibility contract entered
into under section 111 of that Act (7 U.S.C. 7211) unless requested by
the producer that is a party to the contract.
(b) Contract Payments Made Before Enactment.--If a producer receives
all or any portion of the payment authorized for fiscal year 2002 under
a production flexibility contract, the Secretary shall reduce the amount
of the direct payment otherwise due the producer for the 2002 crop year
under section 1103 by the amount of the fiscal year 2002 payment
received by the producer under the production flexibility contract.
[[Page 116 STAT. 155]]
SEC. 1108. <<NOTE: 7 USC 7918.>> PERIOD OF EFFECTIVENESS.
This subtitle shall be effective beginning with the 2002 crop year
of each covered commodity through the 2007 crop year.
Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments
SEC. 1201. <<NOTE: 7 USC 7931.>> AVAILABILITY OF NONRECOURSE MARKETING
ASSISTANCE LOANS FOR LOAN COMMODITIES.
(a) Nonrecourse Loans Available.--
(1) Availability.--For each of the 2002 through 2007 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.
(2) Terms and conditions.--The marketing assistance loans
shall be made under terms and conditions that are prescribed by
the Secretary and at the loan rate established under section
1202 for the loan commodity.
(b) Eligible Production.--The producers on a farm shall be eligible
for a marketing assistance loan under subsection (a) for any quantity of
a loan commodity produced on the farm.
(c) Treatment of Certain Commingled Commodities.--In carrying out
this subtitle, the Secretary shall make loans to producers on a farm
that would be eligible to obtain a marketing assistance loan, but for
the fact the loan commodity owned by the producers on the farm
commingled with loan commodities of other producers in facilities
unlicensed for the storage of agricultural commodities by the Secretary
or a State licensing authority, if the producers obtaining the loan
agree to immediately redeem the loan collateral in accordance with
section 166 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7286).
(d) 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.
(e) Termination of Superseded Loan Authority.--Notwithstanding
section 131 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7231), nonrecourse marketing assistance loans shall not
be made for the 2002 crop of loan commodities under subtitle C of title
I of such Act.
SEC. 1202. <<NOTE: 7 USC 7932.>> LOAN RATES FOR NONRECOURSE MARKETING
ASSISTANCE LOANS.
(a) 2002 and 2003 Crop Years.--For purposes of the 2002 and 2003
crop years, the loan rate for a marketing assistance loan under section
1201 for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.80 per bushel.
(2) In the case of corn, $1.98 per bushel.
(3) In the case of grain sorghum, $1.98 per bushel.
(4) In the case of barley, $1.88 per bushel.
(5) In the case of oats, $1.35 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
[[Page 116 STAT. 156]]
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $0.0960 per pound.
(11) In the case of graded wool, $1.00 per pound.
(12) In the case of nongraded wool, $0.40 per pound.
(13) In the case of mohair, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.33 per hundredweight.
(16) In the case of lentils, $11.94 per hundredweight.
(17) In the case of small chickpeas, $7.56 per
hundredweight.
(b) 2004 Through 2007 crop Years.--For purposes of the 2004 through
2007 crop years, the loan rate for a marketing assistance loan under
section 1201 for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per
pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $0.0930 per pound.
(11) In the case of graded wool, $1.00 per pound.
(12) In the case of nongraded wool, $0.40 per pound.
(13) In the case of mohair, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.22 per hundredweight.
(16) In the case of lentils, $11.72 per hundredweight.
(17) In the case of small chickpeas, $7.43 per
hundredweight.
SEC. 1203. <<NOTE: 7 USC 7933.>> TERM OF LOANS.
(a) Term of Loan.--In the case of each loan commodity, a marketing
assistance loan under section 1201 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.
(b) Extensions Prohibited.--The Secretary may not extend the term of
a marketing assistance loan for any loan commodity.
SEC. 1204. <<NOTE: 7 USC 7934.>> REPAYMENT OF LOANS.
(a) General Rule.--The Secretary shall permit the producers on a
farm to repay a marketing assistance loan under section 1201 for a loan
commodity (other than upland cotton, rice, and extra long staple cotton)
at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); 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;
[[Page 116 STAT. 157]]
(C) minimize the cost incurred by the Federal
Government in storing the commodity;
(D) allow the commodity produced in the United
States to be marketed freely and competitively, both
domestically and internationally; and
(E) minimize discrepancies in marketing loan
benefits across State boundaries and across county
boundaries.
(b) Repayment Rates for Upland Cotton and Rice.--The Secretary shall
permit producers to repay a marketing assistance loan under section 1201
for upland cotton and rice at a rate that is the lesser of--
(1) the loan rate established for the commodity under
section 1202, plus interest (determined in accordance with
section 163 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7283)); 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 1202, plus
interest (determined in accordance with section 163 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
(d) Prevailing World Market <<NOTE: Regulations.>> Price.--For
purposes of this section and section 1207, the Secretary shall prescribe
by regulation--
(1) a formula to determine the prevailing world market price
for upland cotton and rice, adjusted to United States quality
and location; and
(2) a mechanism by which the Secretary shall announce
periodically the prevailing world market price for upland cotton
and rice.
(e) Adjustment of Prevailing World Market Price for Upland Cotton.--
(1) In general.--During the period beginning on the date of
the enactment of this Act through July 31, 2008, 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 1202, as determined by the
Secretary; and
(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.
[[Page 116 STAT. 158]]
(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.
(f) Good Faith Exception to Beneficial Interest Requirement.--For
the 2001 crop year only, in the case of the producers on a farm that
marketed or otherwise lost beneficial interest in a loan commodity for
which a marketing assistance loan was made under section 131 of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231)
before repaying the loan, the Secretary shall permit the producers to
repay the loan at the appropriate repayment rate that was in effect for
the loan commodity under section 134 of that Act (7 U.S.C. 7234) on the
date that the producers lost beneficial interest, as determined by the
Secretary, if the Secretary determines the producers acted in good
faith.
SEC. 1205. <<NOTE: 7 USC 7935.>> LOAN DEFICIENCY PAYMENTS.
(a) Availability of Loan Deficiency Payments.--
(1) In general.--Except as provided in subsection (d), the
Secretary may make loan deficiency payments available to
producers on a farm that, although eligible to obtain a
marketing assistance loan under section 1201 with respect to a
loan commodity, agree to forgo obtaining the loan for the
commodity in return for loan deficiency payments under this
section.
(2) Unshorn pelts, hay, and silage.--Nongraded wool in the
form of unshorn pelts and hay and silage derived from a loan
commodity are not eligible for a marketing assistance loan under
section 1201. However, effective for the 2002 through 2007 crop
years, the Secretary may make loan deficiency payments available
under this section to producers on a farm that produce unshorn
pelts or hay and silage derived from a loan commodity.
(b) Computation.--A loan deficiency payment for a loan commodity or
commodity referred to in subsection (a)(2) shall be computed by
multiplying--
(1) the payment rate determined under subsection (c) for the
commodity; by
(2) the quantity of the commodity produced by the eligible
producers, excluding any quantity for which the producers obtain
a marketing assistance loan under section 1201.
(c) Payment Rate.--
(1) In general.--In the case of a loan commodity, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
the loan commodity; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
[[Page 116 STAT. 159]]
(2) Unshorn pelts.--In the case of unshorn pelts, the
payment rate shall be the amount by which--
(A) the loan rate established under section 1202 for
ungraded wool; exceeds
(B) the rate at which a marketing assistance loan
for ungraded wool may be repaid under section 1204.
(3) hay and silage.--In the case of hay or silage derived
from a loan commodity, the payment rate shall be the amount by
which--
(A) the loan rate established under section 1202 for
the loan commodity from which the hay or silage is
derived; exceeds
(B) the rate at which a marketing assistance loan
for the loan commodity may be repaid under section 1204.
(d) Exception for Extra Long Staple Cotton.--This section shall not
apply with respect to extra long staple cotton.
(e) Effective Date for Payment Rate Determination.--The Secretary
shall determine the amount of the loan deficiency payment to be made
under this section to the producers on a farm with respect to a quantity
of a loan commodity or commodity referred to in subsection (a)(2) using
the payment rate in effect under subsection (c) as of the date the
producers request the payment.
(f) Special Loan Deficiency Payment Rules.--
(1) First-time loan commodities.--For the 2002 crop of wool,
mohair, honey, dry peas, lentils and small chickpeas, in the
case of producers of such a crop that would be eligible for a
loan deficiency payment under this section except for the fact
that the producers lost beneficial interest in the crop prior to
the date of publication of the regulations implementing this
section, the producers shall be eligible for a loan deficiency
payment as of the date producers marketed or otherwise lost
beneficial interest in the crop, as determined by the Secretary.
(2) 2001 crop year.--Section 135 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7235) is amended--
(A) in subsection (a)(2), by striking ``2000 crop
year'' and inserting ``2000 and 2001 crop years''; and
(B) by adding at the end the following:
``(g) Effective Date for Payment Rate Determination.--For the 2001
crop year, the Secretary shall determine the amount of the loan
deficiency payment to be made under this section to the producers on a
farm with respect to a quantity of a loan commodity using the payment
rate in effect under subsection (c) as of the earlier of the following:
``(1) The date on which the producers marketed or otherwise
lost beneficial interest in the crop of the loan commodity, as
determined by the Secretary.
``(2) The date the producers requested the payment.''.
SEC. 1206. <<NOTE: 7 USC 7936.>> PAYMENTS IN LIEU OF LOAN DEFICIENCY
PAYMENTS FOR GRAZED ACREAGE.
(a) Eligible Producers.--
(1) In general.--Effective for the 2002 through 2007 crop
years, in the case of a producer that would be eligible for a
loan deficiency payment under section 1205 for wheat, barley, or
oats, but that elects to use acreage planted to the wheat,
[[Page 116 STAT. 160]]
barley, or oats for the grazing of livestock, the Secretary
shall make a payment to the producer under this section if the
producer enters into an agreement with the Secretary to forgo
any other harvesting of the wheat, barley, or oats on that
acreage.
(2) Grazing of triticale acreage.--Effective for the 2002
through 2007 crop years, with respect to a producer on a farm
that uses acreage planted to triticale for the grazing of
livestock, the Secretary shall make a payment to the producer
under this section if the producer enters into an agreement with
the Secretary to forgo any other harvesting of triticale on that
acreage.
(b) Payment Amount.--
(1) In general.--The amount of a payment made under this
section to a producer on a farm described in subsection (a)(1)
shall be equal to the amount determined by multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect, as of the date of the
agreement, for the county in which the farm is located;
by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of wheat, barley, or oats; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to that loan commodity on the farm
or, in the case of a farm without a payment yield
for that loan commodity, an appropriate yield
established by the Secretary in a manner
consistent with section 1102(c).
(2) Grazing of triticale acreage.--The amount of a payment
made under this section to a producer on a farm described in
subsection (a)(2) shall be equal to the amount determined by
multiplying--
(A) the loan deficiency payment rate determined
under section 1205(c) in effect for wheat, as of the
date of the agreement, for the county in which the farm
is located; by
(B) the payment quantity determined by multiplying--
(i) the quantity of the grazed acreage on the
farm with respect to which the producer elects to
forgo harvesting of triticale; and
(ii) the payment yield in effect for the
calculation of direct payments under subtitle A
with respect to wheat on the farm or, in the case
of a farm without a payment yield for wheat, an
appropriate yield established by the Secretary in
a manner consistent with section 1102(c).
(c) Time, Manner, and Availability of Payment.--
(1) Time and manner.--A payment under this section shall be
made at the same time and in the same manner as loan deficiency
payments are made under section 1205.
(2) Availability.--The Secretary shall establish an
availability period for the payments authorized by this section.
In the case of wheat, barley, and oats, the availability period
shall be consistent with the availability period for the
commodity established by the Secretary for marketing assistance
loans authorized by this subtitle.
[[Page 116 STAT. 161]]
(d) Prohibition on Crop Insurance Indemnity or Noninsured Crop
Assistance.--A 2002 through 2007 crop of wheat, barley, oats, or
triticale planted on acreage that a producer elects, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu
of any other harvesting of the crop shall not be eligible for an
indemnity under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
or noninsured crop assistance under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
SEC. 1207. <<NOTE: 7 USC 7937.>> SPECIAL MARKETING LOAN PROVISIONS FOR
UPLAND COTTON.
(a) Cotton User Marketing Certificates.--
(1) Issuance.--During the period beginning on the date of
the enactment of this Act through July 31, 2008, the Secretary
shall issue marketing certificates or cash payments, at the
option of the recipient, to domestic users and exporters for
documented purchases by domestic users and sales for export by
exporters made in the week following a consecutive 4-week period
in which--
(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 134 percent of the loan rate for upland
cotton established under section 1202.
(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 fourth 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 or pledged to the
Commodity Credit Corporation as collateral for a loan in
such manner, and at such price levels, as the Secretary
determines will best effectuate the purposes of cotton
user marketing certificates, including enhancing the
competitiveness and marketability of United States
cotton. 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
(C) Transfers.--Marketing certificates issued to
domestic users and exporters of upland cotton may be
[[Page 116 STAT. 162]]
transferred to other persons in accordance with
regulations issued by the Secretary.
(4) Delayed application of threshold.--Through July 31,
2006, the Secretary shall make the calculations under paragraphs
(1)(A) and (2) without regard to the 1.25 cent threshold
provided under those paragraphs.
(b) Special Import Quota.--
(1) Establishment.--
(A) In general.--The President shall carry out an
import quota program during the period beginning on the
date of the enactment of this Act through July 31, 2008,
as provided in this subsection.
(B) Program requirements.--Except as provided in
subparagraph (C), whenever the Secretary determines and
announces that for any consecutive 4-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 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.
(C) Tight domestic supply.--During any month for
which the Secretary estimates the season-ending United
States upland cotton stocks-to-use ratio, as determined
under subparagraph (D), to be below 16 percent, the
Secretary, in making the determination under
subparagraph (B), shall not adjust 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, for
the value of any certificates issued under subsection
(a).
(D) Season-ending united states stocks-to-use
ratio.--For the purposes of making estimates under
subparagraph (C), the Secretary shall, on a monthly
basis, estimate and report the season-ending United
States upland cotton stocks-to-use ratio, excluding
projected raw cotton imports but including the quantity
of raw cotton that has been imported into the United
States during the marketing year.
(E) Delayed application of threshold.--Through July
31, 2006, the Secretary shall make the calculation under
subparagraph (B) without regard to the 1.25 cent
threshold provided under that subparagraph.
(2) Quantity.--The quota shall be equal to one week's
consumption of upland cotton by domestic mills at the seasonally
adjusted average rate of the most recent three months for which
data are available.
(3) Application.--The <<NOTE: Deadlines.>> 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).
[[Page 116 STAT. 163]]
(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.
(7) Limitation.--The quantity of cotton entered into the
United States during any marketing year under the special import
quota established under this subsection may not exceed the
equivalent of 5 week's consumption of upland cotton by domestic
mills at the seasonally adjusted average rate of the 3 months
immediately preceding the first special import quota established
in any marketing year.
(c) Limited Global Import Quota for Upland Cotton.--
(1) In general.--The President shall carry out an import
quota program that provides that whenever the Secretary
determines and announces that the average price of the base
quality of upland cotton, as determined by the Secretary, in the
designated spot markets for a month exceeded 130 percent of the
average price of such quality of cotton in the markets for the
preceding 36 months, notwithstanding any other provision of law,
there shall immediately be in effect a limited global import
quota subject to the following conditions:
(A) Quantity.--The quantity of the quota shall be
equal to 21 days of domestic mill consumption of upland
cotton at the seasonally adjusted average rate of the
most recent 3 months for which data are available.
(B) Quantity if prior quota.--If a quota has been
established under this subsection during the preceding
12 months, the quantity of the quota next established
under this subsection shall be the smaller of 21 days of
domestic mill consumption calculated under subparagraph
(A) or the quantity required to increase the supply to
130 percent of the demand.
(C) Preferential tariff treatment.--The quantity
under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the Andean Trade
Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of the Trade Act of 1974
(19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Harmonized
Tariff Schedule.
(D) Definitions.--In this subsection:
(i) Supply.--The term ``supply'' means, using
the latest official data of the Bureau of the
Census, the
[[Page 116 STAT. 164]]
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. 1208. <<NOTE: 7 USC 7938.>> SPECIAL COMPETITIVE PROVISIONS FOR
EXTRA LONG STAPLE COTTON.
(a) Competitiveness Program.--Notwithstanding any other provision of
law, during the period beginning on the date of the enactment of this
Act through July 31, 2008, the Secretary shall carry out a program--
(1) to maintain and expand the domestic use of extra long
staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton produced
in the United States; and
(3) to ensure that extra long staple cotton produced in the
United States remains competitive in world markets.
(b) Payments Under Program; Trigger.--Under the program, the
Secretary shall make payments available under this section whenever--
(1) for a consecutive 4-week period, the world market price
for the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United
States price for a competing growth of extra long staple cotton;
and
(2) the lowest priced competing growth of extra long staple
cotton (adjusted to United States quality and location and for
other factors affecting the competitiveness of such cotton),
[[Page 116 STAT. 165]]
as determined by the Secretary, is less than 134 percent of the
loan rate for extra long staple cotton.
(c) Eligible Recipients.--The Secretary shall make payments
available under this section to domestic users of extra long staple
cotton produced in the United States and exporters of extra long staple
cotton produced in the United States that enter into an agreement with
the Commodity Credit Corporation to participate in the program under
this section.
(d) Payment Amount.--Payments under this section shall be based on
the amount of the difference in the prices referred to in subsection
(b)(1) during the fourth week of the consecutive 4-week period
multiplied by the amount of documented purchases by domestic users and
sales for export by exporters made in the week following such a
consecutive 4-week period.
(e) Form of Payment.--Payments under this section shall be made
through the issuance of cash or marketing certificates, at the option of
eligible recipients of the payments.
SEC. 1209. <<NOTE: 7 USC 7939.>> 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 2002 through
2007 crops of corn and grain sorghum, the Secretary shall make
available recourse loans, as determined by the Secretary, to
producers on a farm that--
(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
[[Page 116 STAT. 166]]
(B) the lower of the farm program payment yield used
to make counter-cyclical payments under subtitle A 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 1201.
(b) Recourse Loans Available for Seed Cotton.--For each of the 2002
through 2007 crops of upland cotton and 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 (determined in accordance with section 163 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
(d) Termination of Superseded Loan Authority.--Notwithstanding
section 137 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7237), recourse loans shall not be made for the 2002 crop
of corn, grain sorghum, and seed cotton under such section.
Subtitle C--Peanuts
SEC. 1301. <<NOTE: 7 USC 7951.>> DEFINITIONS.
In this subtitle:
(1) Base acres for peanuts.--The term ``base acres for
peanuts'' means the number of acres assigned to a farm by
historic peanut producers pursuant to section 1302(b).
(2) Counter-cyclical payment.--The term ``counter-cyclical
payment'' means a payment made under section 1304.
(3) Effective price.--The term ``effective price'' means the
price calculated by the Secretary under section 1304 for peanuts
to determine whether counter-cyclical payments are required to
be made under that section for a crop year.
(4) Direct payment.--The term ``direct payment'' means a
payment made under section 1303.
(5) Historic peanut producer.--The term ``historic peanut
producer'' means a producer on a farm in the United States that
produced or was prevented from planting peanuts during any or
all of the 1998 through 2001 crop years.
(6) Payment acres.--The term ``payment acres'' means--
(A) for the 2002 crop of peanuts, 85 percent of the
average acreage determined under section 1302(a)(2) for
an historic peanut producer; and
(B) for the 2003 through 2007 crops of peanuts, 85
percent of the base acres for peanuts assigned to a farm
under section 1302(b).
(7) Payment yield.--The term ``payment yield'' means the
yield assigned to a farm by historic peanut producers pursuant
to section 1302(b).
(8) Producer.--The term ``producer'' means an owner,
operator, landlord, tenant, or sharecropper that shares in the
[[Page 116 STAT. 167]]
risk of producing a crop on a farm and is entitled to share in
the crop available for marketing from the farm, or would have
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
and shall ensure that program requirements do not adversely
affect the ability of the grower to receive a payment under this
subtitle.
(9) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(10) 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.
(11) Target price.--The term ``target price'' means the
price per ton of peanuts used to determine the payment rate for
counter-cyclical payments.
(12) United states.--The term ``United States'', when used
in a geographical sense, means all of the States.
SEC. 1302. <<NOTE: 7 USC 7952.>> ESTABLISHMENT OF PAYMENT YIELD AND
BASE ACRES FOR PEANUTS FOR A FARM.
(a) Average Yield and Acreage Average for Historic Peanut
Producers.--
(1) Determination of average yield.--
(A) In general.--The Secretary shall determine, for
each historic peanut producer, the average yield for
peanuts on each farm on which the historic peanut
producer planted peanuts for harvest for the 1998
through 2001 crop years, excluding any crop year in
which the producer did not plant or was prevented from
planting peanuts.
(B) Assigned yields.--For the purposes of
determining the 4-year average yield for an historic
peanut producer under this paragraph, the historic
peanut producer may elect to substitute for a farm, for
not more than 3 of the 1998 through 2001 crop years in
which the producer planted peanuts on the farm, the
average yield for peanuts produced in the county in
which the farm is located for the 1990 through 1997 crop
years.
(2) Determination of acreage average.--
(A) In general.--The Secretary shall determine, for
each historic peanut producer, the 4-year average of the
following:
(i) Acreage planted to peanuts on each farm on
which the historic peanut producer planted peanuts
for harvest for the 1998 through 2001 crop years.
(ii) Any acreage on each farm that the
historic peanut producer was prevented from
planting to peanuts during the 1998 through 2001
crop years because of drought, flood, or other
natural disaster, or other condition beyond the
control of the historic peanut producer, as
determined by the Secretary.
(B) Inclusion of all 4 years in average.--For the
purposes of determining the 4-year acreage average for
an historic peanut producer under this paragraph, the
Secretary shall not exclude any crop year in which the
producer did not plant peanuts.
[[Page 116 STAT. 168]]
(C) Proportional shares.--If more than 1 historic
peanut producer shared in the risk of producing the crop
on a farm, the historic peanut producers shall receive
their proportional share of the number of acres planted
(or prevented from being planted) to peanuts for harvest
on the farm based on the sharing arrangement that was in
effect among the producers for the crop.
(3) Time for determinations.--The Secretary shall make the
determinations required by this subsection as soon as
practicable after the date of enactment of this Act.
(4) Special considerations.--In making the determinations
required by this subsection, the Secretary shall take into
account changes in the number, identity, or interest of
producers sharing in the risk of producing a peanut crop since
the 1998 crop year, including providing a method for the
assignment of average acres and average yield to a farm--
(A) when an historic peanut producer is no longer
living;
(B) when an entity composed of historic peanut
producers has been dissolved; or
(C) in other appropriate situations, as determined
by the Secretary.
(b) Assignment of Average Yields and Average Acreage to Farms.--
(1) Assignment by historic peanut producers.--The Secretary
shall give each historic peanut producer an opportunity to
assign the average peanut yield and average acreage determined
under subsection (a) for each farm of the historic peanut
producer to cropland on that farm or another farm in the same
State or a contiguous State.
(2) Limitation on acreage assignment.--Notwithstanding
paragraph (1), the average acreage determined under subsection
(a)(2) for a farm may not be assigned to a farm in a contiguous
State unless--
(A) the historic peanut producer making the
assignment produced peanuts in that State during at
least 1 of the 1998 through 2001 crop years; or
(B) as of March 31, 2003, the historic peanut
producer is a producer on a farm in that State.
(3) Notice of assignment opportunity.--The Secretary shall
provide notice to historic peanut producers regarding their
opportunity to assign average peanut yields and average acreages
to farms under paragraph (1). The notice shall include the
following:
(A) Notice that the opportunity to make the
assignments is being provided only once.
(B) A description of the limitation in paragraph (2)
on their ability to make the assignments.
(C) Information regarding the manner in which the
assignments must be made and the time periods and manner
in which notice of the assignments must be submitted to
the Secretary.
(4) Assignment deadlines.--Not later than March 31, 2003, an
historic peanut producer shall submit to the Secretary notice of
the assignments made by the producer under this subsection. If
an historic peanut producer fails to submit the
[[Page 116 STAT. 169]]
notice by that date, the notice shall be submitted in such other
manner as the Secretary may prescribe.
(c) Payment Yield.--The average of all of the yields assigned by
historic peanut producers under subsection (b) to a farm shall be
considered to be the payment yield for that farm for the purpose of
making direct payments and counter-cyclical payments under this
subtitle.
(d) Base Acres for Peanuts.--Subject to subsection (e), the total
number of acres assigned by historic peanut producers under subsection
(b) to a farm shall be considered to be the farm's base acres for
peanuts for the purpose of making direct payments and counter-cyclical
payments under this subtitle.
(e) Treatment of Conservation Reserve Contract Acreage.--
(1) In general.--The Secretary shall provide for an
adjustment, as appropriate, in the base acres for peanuts for a
farm whenever either of the following circumstances occur:
(A) A conservation reserve contract entered into
under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with respect to the farm expires or is
voluntarily terminated.
(B) Cropland is released from coverage under a
conservation reserve contract by the Secretary.
(2) Special payment rules.--For the crop year in which a
base acres for peanuts adjustment under paragraph (1) is first
made, the owner of the farm shall elect to receive either direct
payments and counter-cyclical payments with respect to the
acreage added to the farm under this subsection or a prorated
payment under the conservation reserve contract, but not both.
(f) Prevention of Excess Base Acres for Peanuts.--
(1) Required reduction.--If the sum of the base acres for
peanuts for a farm, together with the acreage described in
paragraph (2), exceeds the actual cropland acreage of the farm,
the Secretary shall reduce the base acres for peanuts for the
farm or the base acres for 1 or more covered commodities under
subtitle A for the farm so that the sum of the base acres for
peanuts and acreage described in paragraph (2) does not exceed
the actual cropland acreage of the farm.
(2) Other acreage.--For purposes of paragraph (1), the
Secretary shall include the following:
(A) Any base acres for the farm under subtitle A.
(B) Any acreage on the farm enrolled in the
conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3830 et seq.).
(C) Any other acreage on the farm enrolled in a
conservation program for which payments are made in
exchange for not producing an agricultural commodity on
the acreage.
(3) Selection of acres.--The Secretary shall give the owner
of the farm the opportunity to select the base acres for peanuts
or the subtitle A base acres against which the reduction
required by paragraph (1) will be made.
(4) Exception for double-cropped acreage.--In applying
paragraph (1), the Secretary shall make an exception in the case
of double cropping, as determined by the Secretary.
[[Page 116 STAT. 170]]
(5) Coordinated application of requirements.--The Secretary
shall take into account section 1101(g) when applying the
requirements of this subsection.
(g) Permanent Reduction in Base Acres for Peanuts.--The owner of a
farm may reduce, at any time, the base acres for peanuts assigned to the
farm. The reduction shall be permanent and made in the manner prescribed
by the Secretary.
SEC. 1303. <<NOTE: 7 USC 7953.>> AVAILABILITY OF DIRECT PAYMENTS FOR
PEANUTS.
(a) Payment Required.--
(1) 2002 crop year.--For the 2002 crop year, the Secretary
shall make direct payments under this section to historic peanut
producers.
(2) Subsequent crop years.--For each of the 2003 through
2007 crop years for peanuts, the Secretary shall make direct
payments to the producers on a farm to which a payment yield and
base acres for peanuts are assigned under section 1302.
(b) Payment Rate.--The payment rate used to make direct payments
with respect to peanuts for a crop year shall be equal to $36 per ton.
(c) Payment Amount for 2002 Crop Year.--The amount of the direct
payment to be paid to an historic peanut producer for the 2002 crop of
peanuts shall be equal to the product of the following:
(1) The payment rate specified in subsection (b).
(2) The payment acres of the historic peanut producer.
(3) The average peanut yield determined under