( BALANCED BUDGET ACT OF 1995 CONFE RENCE REP ORT TO ACCOM PANY H.R. 2491 N OVEMBER 16 (legi slat ive day of N OVEMBER 15), 1995 .—Ordered to be print ed )
( 104 TH C ONGRESS 1st Session ) ( R EP ORT 104–350 ) ( HOUSE OF REP RESENTATIVES ) ( " ) ( ! )
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( 104 TH C ONGRESS 1st Session " HOUSE OF REP RESENTATIVES ! R EP ORT 104–350 BALANCED BUDGET ACT OF 1995 CONFE RENCE REP ORT TO ACCOM PANY H.R. 2491 N OVEMBER 16 (legi slat ive day of N OVEMBER 15), 1995 .—Ordered to be print ed 20–873 U . S . GOVERNMENT PRINTING OFF ICE WASHINGTON : 1995 )
BALANCED BUDGET ACT OF 1995
NOVEMBER 16 (legi slat ive day, NOVEMBER 15), 1995 .—Ordered to be print ed
Mr. KASIC H, from th e comm itt ee of conference, submitt ed th e followi ng
CONFE RENCE REP ORT
[To accompan y H.R. 2491 ]
The comm itt ee of conference on th e disagreeing votes of th e two Houses on th e am endment of th e Senat e to th e bill (H.R. 2491 ), to provide for reconciliat ion pur suant to section 105 of th e concurr ent resolut ion on th e budget for fiscal year 1996 , ha ving met, after full an d free conference, ha ve agreed to recomm end an d do recomm end to th eir respe ctive Houses as follows:
That th e House recede from its disagreement to th e am end- ment of th e Senat e an d agree to th e sam e with an am endment as follows:
In lie u of th e matt er proposed to be insert ed by th e Senat e am endment , insert th e followi ng:
SEC TION 1. SHO RT TITLE.
This Act may be cited as the ‘‘B ala nced Bud get Act of 1995’’.
SEC. 2. TABLE OF TITLES.
This Act is organized into titl es as follows:
Title I—Agriculture and Related Provisions
Title II—B anking, Housing, and Related Provisions
Title III —Comm unication and Spectrum Allocation Provisions Title IV —Edu cation and Related Provisions
Title V—En ergy and Natural Resources Provisions
Title VI— Federal Retirement and Related Provisions Title VII—M edicaid
Title VIII—M edicare
Title IX —T ransportati on and Related Provisions Title X—V eterans and Related Provisions
Title XI— Revenues
Title XII— Teaching hospitals and gradu ate medical education; asset sales; welfare; and other provisions
( 104 TH C ONGRESS 1st Session ) ( R EP ORT 104–350 ) ( HOUSE OF REP RESENTATIVES ) ( " ) ( ! )
TITLE I—AG RICULTU RE AND RELA TED PRO VISIONS
SEC. 1001 . SHO RT TITLE; TABLE OF CO NT ENTS .
(a) SHORT TITLE .—Th is titl e may be cited as the ‘‘Agri cultural Reconciliati on Act of 1995’’.
(b) TABLE OF CONT ENTS .—Th e table of contents of this titl e is as follows:
Sec. 1001 . Short titl e; table of contents.
Subtitl e A—A gricultural Market Transition Program
Sec.
1101 .
Nonrecourse marketing assista nce loans and loan deficiency pay ments.
Sec.
1105 .
Sec.
1106 .
Sec.
1110 .
Sec.
1301 .
Sec. 1401 . Crop insurance.
Sec. 1402 . Collection and use of agricultural quara ntine and inspection fees. Sec. 1403 . Comm odity Credit Corporati on interest rate.
Subtitl e A—Agricultur a l Ma rk et Tr a nsi ti on Pr ogr am
SEC. 1101 . SHO RT TITLE.
This subtitl e may be cited as the ‘‘Agri cultural Market Transi- tion Act’’.
SEC. 1102 . DEFINITIONS .
In this subtitl e:
(1) CONS IDERE D PLA NT ED.—Th e term ‘‘consi dered pla nted’’ means acreage that is considered pla nted und er titl e V of the Agricultural Act of 1949 (7 U. S.C. 1461 et seq.) (as in effect prior to the amend ment made by section 1109 (b)(2)).
(2) CONTR ACT.—Th e term ‘‘con tract’’ means a production flexibility contract entered into und er section 1103 .
(3) CONTR ACT ACRE AGE.—Th e term ‘‘con tract acreage’’ means 1 or more crop acreage bases establis hed for contract comm odities und er titl e V of the Agricultural Act of 1949 (as in effect prior to the amend ment made by section 1109 (b)(2)). If a crop acreage base was not enrolled in an annu al program for the 1995 crop in order to increase crop acreage base, the con- tract acreage for the 1996 crop shall reflect the increased base
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acreage that would have been establis hed und er titl e V of the Act (as so in effect).
(4) CONTR ACT COMMODI TY .—Th e term ‘contract comm odity’ means wheat, corn, grain sorghu m, barley, oats, upla nd cotton, and rice.
(5) CONTR ACT PAYMENT .—Th e term ‘‘con tract pay ment’’ means a pay ment made und er section 1103 pursuant to a con- tract.
(6) FARM PROGRAM PAYMENT YIELD.—Th e term ‘‘far m pro- gram pay ment yield’’ means the far m program pay ment yield establis hed for the 1995 crop of a contract comm odity und er titl e V of the Agricultural Act of 1949 (as in effect prior to the amend ment made by section 1109 (b)(2)).
(7) LOAN COMMODI TY .—Th e term ‘loan comm odity’ means each contract comm odity, extra long stapl e cotton, and oilseeds.
(8) OILSEED.—Th e term ‘‘oilseed’’ means a crop of soybeans, sun flower seed, rapeseed, canola, saffl ower, flaxs eed, mustar d seed, or, if designated by the Secretary, other oilseeds.
(9) PROGRAM.—Th e term ‘‘progr am’’ means the agricultural market tra nsiti on program establis hed und er this subtitl e.
(10) SECRET ARY .—Th e term ‘‘Secretary’’ means the Sec- retary of Agriculture.
SEC. 1103 . PRODU CTION FLEXIBILITY CO NTR AC TS .
(a) CONTR ACT S AUTHORIZED.—
(1) OFFER AND TERM S.—Beginning as soon as practicable after the date of the enactment of this subtitl e, the Secretary shall offer to enter into a contract with an eligibl e owner or op- erator described in para graph (2) on a far m contai ning eligibl e far mland. Und er the terms of a contract, the owner or operator shall agree, in exchange for annu al contract pay ments, to com- ply with—
(A) the conservation pla n for the far m prepared in ac- cordance with section 1212 of the Food Security Act of 1985 (16 U. S.C. 3812 );
(B) wetla nd protection requirements appli cable to the far m und er subtitl e C of titl e XII of the Act (16 U. S.C. 3821 et seq.); and
(C) the pla nting flexibility requirements of subsection
(j).
(2) ELIGI BLE OWNER S AND OPERAT OR S DESCRIBED.—Th e fol- lowing persons shall be considered to be an owner or operator eligibl e to enter into a contract:
(A) An owner of eligibl e far mland who assumes all of the ris k of producing a crop.
(B) An owner of eligibl e far mland who shares in the ris k of producing a crop.
(C) An operator of eligibl e far mland with a share-rent lease of the eligibl e far mland, regardless of the length of the lease, if the owner enters into the sa me contract.
(D) An operator of eligibl e far mland who cash rents the eligibl e far mland und er a lease expiri ng on or after Sep- tember 30, 2002 , in which case the consent of the owner is not required.
(E) An operator of eligibl e far mland who cash rents the eligibl e far mland und er a lease expiri ng before September 30, 2002 , if the owner consents to the contract.
(F) An owner of eligibl e far mland who cash rents the eligibl e far mland and the lease term expires before Septem- ber 30, 2002 , but only if the actual operator of the far m de- clines to enter into a contract. In the case of an owner cov- ered by this subparagrap h, contract pay ments shall not begin und er a contract un til the fiscal year following the fiscal year in which the lease held by the nonparti cipati ng operator expires.
(G) An owner or operator described in a preceding sub- para graph regardless of whether the owner or operator pur- chased catastr ophic ris k protection for a fall -pla nted 1996 crop und er section 508(b) of the Federal Crop Insurance Act (7 U. S.C. 1508 (b)).
(3) TENANTS AND SHARE CROPPER S.— In carryi ng out this section, the Secretary shall provide adequate safeguards to pro- tect the interests of operators who are tenants and share- croppers.
(b) ELEME NTS .—
(1) TIME FOR CONTR ACTING.—
(A) DEADLINE.—Except as provided in subparagrap h (B), the Secretary may not enter into a contract after April 15, 1996 .
(B) CONS ERVAT ION RE SERVE LA NDS.—
(i) IN GENERAL .—At the beginning of each fiscal year, the Secretary shall allow an eligibl e owner or op- erator on a far m covered by a conservation reserve con- tract entered into und er section 1231 of the Food Secu- rity Act of 1985 (16 U. S.C. 3831 ) that terminates after the date specified in subparagrap h (A) to enter into or expa nd a production flexibility contract to cover the contract acreage of the far m that was subject to the former conservation reserve contract.
(ii) AMOUNT .—Contract pay ments made for con- tract acreage und er this subparagrap h shall be made at the rate and amoun t appli cable to the annu al con- tract pay ment level for the appli cable crop.
(2) DURATION OF CONTR ACT.—
(A) BEGI NN ING DATE.—A contract shall begin with—
(i) the 1996 crop of a contract comm odity; or
(ii) in the case of acreage that was subject to a con- servation reserve contract described in para graph (1)(B), the date the production flexibility contract was entered into or expa nded to cover the acreage.
(B) ENDI NG DATE.—A contract shall extend through the 2002 crop.
(3) ES TIMAT ION OF CONTR ACT PAYMENT S.—At the time the Secretary enters into a contract, the Secretary shall provide an esti mate of the minimum contract pay ments anticipat ed to be made during at least the first fiscal year for which contract pay ments will be made.
(c) ELIGI BLE FARML AND DESCRIBED.—L and shall be considered to be far mland eligibl e for coverage und er a contract only if the land has contract acreage attrib utable to the land and—
(1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was enrolled in the acreage reduction pro- gram authorized for a crop of a contract comm odity und er sec- tion 101 B, 103 B, 105 B, or 107 B of the Agricultural Act of 1949 (as in effect prior to the amend ment made by section 1109 (b)(2)) or was considered pla nted;
(2) was subject to a conservation reserve contract und er sec- tion 1231 of the Food Security Act of 1985 (16 U. S.C. 3831 ) whose term expired, or was volun tarily terminated, on or after Janu ary 1, 1995; or
(3) is released from coverage und er a conservation reserve contract by the Secretary during the period beginning on Janu- ary 1, 1995 , and ending on the date specified in subsection (b)(1)(A).
(d) TIME FOR PAYMENT .—
(1) IN GENERAL .—An annu al contract pay ment shall be made not later than September 30 of each of fiscal years 1996 through 2002 .
(2) ADVA NCE PAYMENT S.—
(A) FISCAL YE AR 1996 .—At the option of the owner or operator, 50 percent of the contract pay ment for fiscal year 1996 shall be made not later than 60 days after the date on which the owner or operator enters into a contract.
(B) SUB SEQUE NT FI SCAL YE AR S.—At the option of the owner or operator for fiscal year 1997 and each subsequent fiscal year, 50 percent of the annu al contract pay ment shall be made on December 15.
(e) AMOUNTS AVAILABLE FOR CONTR ACT PAYMENT S FOR EACH
FISCAL YEAR .—
(1) IN GENERAL .—Th e Secretary shall expend on a fiscal year basis the following amoun ts to satisfy the obligati ons of the Secretary und er all contracts:
(A) For fiscal year 1996 , $5,570 ,000 ,000 . (B) For fiscal year 1997 , $5,385 ,000 ,000 . (C) For fiscal year 1998 , $5,800 ,000 ,000 . (D) For fiscal year 1999 , $5,603 ,000 ,000 . (E) For fiscal year 2000 , $5,130 ,000 ,000 . (F) For fiscal year 2001 , $4,130 ,000 ,000 . (G) For fiscal year 2002 , $4,008 ,000 ,000 .
(2) ALLOCATION.—Th e amoun t made availabl e for a fiscal year und er para graph (1) shall be allocated as follows:
(A) For wheat, 26.26 percent.
(B) For corn, 46.22 percent.
(C) For grain sorghu m, 5.11 percent.
(D) For barley, 2.16 percent.
(E) For oats, 0.15 percent.
(F) For upla nd cotton, 11.63 percent.
(G) For rice, 8.47 percent.
(3) ADJUS TMENT .—Th e Secretary shall adjust the amoun ts allocated for each contract comm odity und er para graph (2) for a parti cular fiscal year by—
(A) subtra cting an amoun t equal to the amoun t, if any, necessary to satisfy pay ment requirements und er sections 101 B, 103 B, 105 B, and 107 B of the Agricultural Act of 1949 (as in effect prior to the amend ment made by section 1109 (b)(2)) for the 1994 and 1995 crops of the comm odity;
(B) adding an amoun t equal to the sum of all producer repay ments of deficiency pay ments received und er section 114(a)(2) of the Act (as so in effect) for the comm odity;
(C) adding an amoun t equal to the sum of all contract pay ments withheld by the Secretary, at the request of pro- ducers, during the preceding fiscal year as an offset against producer repay ments of deficiency pay ments otherwise re- quired und er section 114(a)(2) of the Act (as so in effect) for the comm odity; and
(D) adding an amoun t equal to the sum of all refund s of contract pay ments received during the preceding fiscal year und er subsection (h) for the comm odity.
(f) DETERM INATION OF CONTR ACT PAYMENT S.—
(1) INDIVIDUAL PAYMENT QUA NT ITY OF CONTR ACT COMMOD- ITIES.—For each contract, the pay ment quantity of a contract comm odity for each fiscal year shall be equal to the product of—
(A) 85 percent of the contract acreage; and
(B) the far m program pay ment yield.
(2) ANN UAL PAYMENT QUA NT ITY OF CONTR ACT COMMOD- ITIES.—Th e pay ment quantity of each contract comm odity cov- ered by all contracts for each fiscal year shall equal the sum of the amoun ts calculated und er para graph (1) for each ind ivi d- ual contract.
(3) ANN UAL PAYMENT RATE.—Th e pay ment rate for a con- tract comm odity for each fiscal year shall be equal to—
(A) the amoun t made availabl e und er subsection (e) for the contract comm odity for the fiscal year; divi ded by
(B) the amoun t determined und er para graph (2) for the fiscal year.
(4) ANN UAL PAYMENT AMOUNT .—Th e amoun t to be pai d und er a contract in effect for each fiscal year with respect to a contract comm odity shall be equal to the product of—
(A) the pay ment quantity determined und er para graph
(1) with respect to the contract; and
(B) the pay ment rate in effect und er para graph (3).
(5) ASS IGNME NT OF CONTR ACT PAYMENT S.—Th e provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U. S.C. 590 h(g)) (relati ng to assignment of pay ments) shall apply to contract pay ments und er this subsection. The owner or operator making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Sec- retary may require in the contract, of any assignment made und er this para graph.
(6) SHAR ING OF CONTR ACT PAYMENT S.—Th e Secretary shall provide for the sharing of contract pay ments among the owners and operators subject to the contract on a fair and equitabl e basis .
(g) PAYMENT LIMITATION.—Th e total amoun t of contract pay- ments made to a person und er a contract during any fiscal year may not exceed the pay ment li mitati ons establis hed und er section 1105 .
(h) EFFECT OF VIOLAT ION.—
(1) TERM INATION OF CONTR ACT.—Except as provided in para graph (2), if an owner or operator subject to a contract vio- lates the conservation pla n for the far m contai ning eligibl e far mland und er the contract, wetla nd protection requirements appli cable to the far m, or the pla nting flexibility requirements of subsection (j), the Secretary shall terminate the contract with respect to the owner or operator. On the termination, the owner or operator shall forfeit all rights to receive future contract pay- ments and shall refund to the Secretary all contract pay ments received by the owner or operator during the period of the viola- tion, together with interest on the contract pay ments as deter- mined by the Secretary.
(2) REFUND OR ADJUS TMENT .— If the Secretary determines that a violati on does not warra nt termination of the contract und er para graph (1), the Secretary may require the owner or operator subject to the contract—
(A) to refund to the Secretary that part of the contract pay ments received by the owner or operator during the pe- riod of the violati on, together with interest on the contract pay ments as determined by the Secretary; or
(B) to accept a reduction in the amoun t of future con- tract pay ments that is proportionate to the severity of the violati on, as determined by the Secretary.
(3) FORECLOSURE.—An owner or operator subject to a con- tract may not be required to make repay ments to the Secretary of amoun ts received und er the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiv- ing the repay ments is appropriat e in order to provide fair and equitabl e treat ment. This para graph shall not void the respon- sibiliti es of such an owner or operator und er the contract if the owner or operator continues or resumes operati on, or control, of the contract acreage. On the resumption of operati on or control over the contract acreage by the owner or operator, the provi- sions of the contract in effect on the date of the foreclosure shall apply .
(4) REVIEW.—A determination of the Secretary und er this subsection shall be considered to be an adverse decision for pur- poses of the availability of administrativ e review of the deter- mination.
(i) TRANS FER OF INT ERE S T IN LANDS SUB JECT TO CONTR ACT.—
(1) EFFECT OF TR ANS FER .—Except as provided in para- graph (2), the tra nsfer by an owner or operator subject to a con- tract of the right and interest of the owner or operator in the contract acreage shall result in the termination of the contract with respect to the acreage, effective on the date of the tra nsfer, unless the tra nsferee of the acreage agrees with the Secretary to assume all obligati ons of the contract. At the request of the tra nsferee, the Secretary may modify the contract if the modi-
fications are consistent with the objectives of this section as de- termined by the Secretary.
(2) EXCEPTION.— If an owner or operator who is entitled to a contract pay ment dies, becomes incompetent, or is otherwise un able to receive the contract pay ment, the Secretary shall make the pay ment, in accordance with regulati ons prescribed by the Secretary.
(j) PLA NT ING FLEX IBILITY .—
(1) PERM ITTE D CROPS.— Subject to para graph (2)(A), any comm odity or crop may be pla nted on contract acreage.
(2) LIMITATIONS .—
(A) IN GENERAL .—Except as provided in subparagrap h (B), the pla nting of any fruit or vegetable, and un li mited haying and grazi ng, shall be permitted on not more than 15 percent of the contract acreage.
(B) EXCEPTION.— Subparagrap h (A) shall not apply to the pla nting of contract comm odities, lentils, mung beans, and dry peas on contract acreage.
(3) ALFALFA.—Th e pla nting of alfalfa on contract acreage is un li mited, except that the quantity of acreage on which the con- tract pay ment of the owner or operator would otherwise be based shall be reduced for each acre pla nted to alfalfa in excess of the li mitati on in effect und er para graph (2)(A) for the con- tract.
(4) HAYING AND GRAZI NG.— Subject to para graphs (2) and (3), haying and grazi ng of contract acreage shall be permitted, except during any consecutive 5-month period that is estab - lis hed by the State comm itt ee establis hed und er section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U. S.C. 590 h(b)) for a State. The 5-month period shall be establis hed during the period beginning April 1, and ending October 31, of a year. In the case of a natural disast er, the Secretary may per- mit un li mited haying and grazi ng on the contract acreage.
SEC. 1104 . NONR EC OURS E MARK ETING ASS IST ANCE LOA NS AND LOA N DEFICIENCY PAYME NTS .
(a) AVAILABILI TY OF NONR ECOUR SE LOANS .—
(1) AVAILABILI TY .—For each of the 1996 through 2002 crops of each loan comm odity, the Secretary shall make availabl e to producers on a far m nonrecourse marketing assista nce loans for loan comm odities produced on the far m. The loans shall be made und er terms and cond itions that are prescribed by the Secretary and at the loan rate establis hed und er subsection (b) for the loan comm odity.
(2) ELIGI BLE PRODUCTION.—Th e following production shall be eligibl e for a marketing assista nce loan und er this section:
(A) In the case of a marketing assista nce loan for a contract comm odity, any production by a producer who has entered into a production flexibility contract.
(B) In the case of a marketing assista nce loan for extra long stapl e cotton and oilseeds, any production.
(b) LOAN RATE S.—
(1) WHEAT .—
(A) LOAN RATE.— Subject to subparagrap h (B), the loan rate for a marketing assista nce loan for wheat shall be—
(i) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the im- mediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but
(ii) not more than $2.58 per bushel.
(B) STOCK S TO USE RATIO ADJUS TMENT .— If the Sec- retary esti mates for any marketing year that the rati o of ending stocks of wheat to total use for the marketing year will be—
(i) equal to or greater than 30 percent, the Sec- retary may reduce the loan rate for wheat for the cor- responding crop by an amoun t not to exceed 10 percent in any year;
(ii) less than 30 percent but not less than 15 per- cent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amoun t not to exceed 5 percent in any year; or
(iii) less than 15 percent, the Secretary may not re- duce the loan rate for wheat for the corresponding crop.
(C) NO EFFECT ON FUTURE YE AR S.—An y reduction in the loan rate for wheat und er subparagrap h (B) shall not be considered in determining the loan rate for wheat for subsequent years.
(2) FEED GRAI NS .—
(A) LOAN RATE FOR CORN .— Subject to subparagrap h (B), the loan rate for a marketing assista nce loan for corn shall be—
(i) not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the im- mediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but
(ii) not more than $1.89 per bushel.
(B) STOCK S TO USE RATIO ADJUS TMENT .— If the Sec- retary esti mates for any marketing year that the rati o of ending stocks of corn to total use for the marketing year will be—
(i) equal to or greater than 25 percent, the Sec- retary may reduce the loan rate for corn for the cor- responding crop by an amoun t not to exceed 10 percent in any year;
(ii) less than 25 percent but not less than 12.5 per- cent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amoun t not to exceed 5 percent in any year; or
(iii) less than 12.5 percent the Secretary may not reduce the loan rate for corn for the corresponding crop.
(C) NO EFFECT ON FUTURE YE AR S.—An y reduction in the loan rate for corn und er subparagrap h (B) shall not be considered in determining the loan rate for corn for subse- quent years.
(D) OTHER FEED GRAI NS .—Th e loan rate for a market- ing assista nce loan for grain sorghu m, barley, and oats, re- spectively, shall be establis hed at such level as the Sec- retary determines is fair and reasonable in relati on to the rate that loans are made availabl e for corn, taking into considerati on the feeding val ue of the comm odity in rela- tion to corn.
(3) UPLA ND COTT ON.—
(A) LOAN RATE.— Subject to subparagrap h (B), the loan rate for a marketing assista nce loan for upla nd cotton shall be establis hed by the Secretary at such loan rate, per pound , as will reflect for the base quality of upla nd cotton, as determined by the Secretary, at average locations in the United States a rate that is not less than the smaller of—
(i) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5-year period ending July 31 in the year in which the loan rate is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or
(ii) 90 percent of the average, for the 15-week pe- riod beginning July 1 of the year in which the loan rate is announced, of the 5 lowest-priced growths of the growths quoted for Middling 13⁄32-inch cotton C.I.F. Northern Europe (adjusted downw ard by the average difference during the period April 15 through October 15 of the year in which the loan is announced between the average Northern European price quotation of such quality of cotton and the market quotations in the des- ignated United States spot markets for the base quality of upla nd cotton), as determined by the Secretary.
(B) LIMITATIONS .—Th e loan rate for a marketing as- sista nce loan for upla nd cotton shall not be less than $0.50 per pound or more than $0.5192 per pound .
(4) EXTR A LONG S TAPLE COTT ON.—Th e loan rate for a mar- keting assista nce loan for extra long stapl e cotton shall be—
(A) not less than 85 percent of the simple average price received by producers of extra long stapl e cotton, as deter- mined by the Secretary, during 3 years of the 5 previous marketing years, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but
(B) not more than $0.7965 per pound .
(5) RICE.—Th e loan rate for a marketing assista nce loan for rice shall be $6.50 per hund redweight.
(6) OILSEEDS.—
(A) SOYBE ANS .—Th e loan rate for a marketing assist - ance loan for soybeans shall be $4.92 per bushel.
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(B) SUNFLOWE R SEED, CANOLA, RAPESEED, SAFFLOWE R, MU S TARD SEED, AND FLAX SEED.—Th e loan rates for a mar- keting assista nce loan for sun flower seed, canola, rapeseed, saffl ower, mustar d seed, and flaxs eed, ind ivi du ally, shall be $0.087 per pound .
(C) OTHER OILSEEDS.—Th e loan rates for a marketing assista nce loan for other oilseeds shall be establis hed at such level as the Secretary determines is fair and reason- able in relati on to the loan rate availabl e for soybeans, ex- cept in no event shall the rate for the oilseeds (ot her than cottonseed) be less than the rate establis hed for soybeans on a per-pound basis for the sa me crop.
(c) TERM OF LOAN.— In the case of each loan comm odity (ot her than upla nd cotton or extra long stapl e cotton), a marketing assist - ance loan und er subsection (a) shall have a term of 9 months begin- ning on the first day of the first month after the month in which the loan is made. A marketing assista nce loan for upla nd cotton or extra long stapl e cotton shall have a term of 10 months. The Sec- retary may not extend the term of a marketing assista nce loan for any loan comm odity.
(d) REPAYMENT .—
(1) REPAYMENT RATE S GENERALLY .—Th e Secretary shall permit producers to repay a marketing assista nce loan und er subsection (a) for a loan comm odity (ot her than extra long sta- ple cotton) at a level that is the lesser of—
(A) the loan rate establis hed for the comm odity und er subsection (b); or
(B) the prevaili ng world market price for the comm od- ity (adjusted to United States quality and location), as de- termined by the Secretary.
(2) REPAYMENT RATE S FOR EXTRA LONG S TAPLE COTT ON.— Repay ment of a marketing assista nce loan for extra long stapl e cotton shall be at the loan rate establis hed for the comm odity und er subsection (b).
(3) PRE VAILI NG WORLD MAR KET PRICE.—For purposes of para graph (1)(B) and subsection (f), the Secretary shall pre- scribe by regulati on—
(A) a formula to determine the prevaili ng world market price for each loan comm odity, adjusted to United States quality and location; and
(B) a mechanism by which the Secretary shall an- nounce periodically the prevaili ng world market price for each loan comm odity.
(4) ADJUS TMENT OF PRE VAILI NG WORLD MAR KET PRICE FOR UPLA ND COTT ON.—
(A) IN GENERAL .—During the period ending July 31, 2003 , the prevaili ng world market price for upla nd cotton (adjusted to United States quality and location) establis hed und er para graph (3) shall be further adjusted if—
(i) the adjusted prevaili ng world market price is less than 115 percent of the loan rate for upla nd cotton establis hed und er subsection (b), as determined by the Secretary; and
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(ii) the Friday through Thu rsday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 13⁄32-inch cotton delivered
C.I.F. Northern Europe is greater than the Friday through Thu rsday average price of the 5 lowest-priced growths of upla nd cotton, as quoted for Middling (M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe (re- ferred to in this subsection as the ‘‘Nort hern Europe price’’).
(B) FURTHER ADJUS TMENT .—Except as provided in subparagrap h (C), the adjusted prevaili ng world market price for upla nd cotton shall be further adjusted on the basis of some or all of the following data, as availabl e:
(i) The United States share of world exports.
(ii) The current level of cotton export sales and cot- ton export ship ments.
(iii) Other data determined by the Secretary to be relevant in establis hing an accurate prevaili ng world market price for upla nd cotton (adjusted to United States quality and location).
(C) LIMITATION ON FURTHER ADJUS TMENT .—Th e ad- just ment und er subparagrap h (B) may not exceed the dif- ference between—
(i) the Friday through Thu rsday average price for the lowest-priced United States growth as quoted for Middling 13⁄32-inch cotton delivered C.I.F. Northern Europe; and
(ii) the Northern Europe price.
(e) LOAN DEFICI ENCY PAYMENT S.—
(1) AVAILABILI TY .—Except as provided in para graph (4), the Secretary may make loan deficiency pay ments availabl e to pro- ducers who, alt hough eligibl e to obtai n a marketing assista nce loan und er subsection (a) with respect to a loan comm odity, agree to forgo obtai ning the loan for the comm odity in return for pay ments und er this subsection.
(2) COMPUTATION.—A loan deficiency pay ment und er this subsection shall be computed by multiplyi ng—
(A) the loan pay ment rate determined und er para graph
(3) for the loan comm odity; by
(B) the quantity of the loan comm odity that the produc- ers on a far m are eligibl e to place und er loan but for which the producers forgo obtai ning the loan in return for pay- ments und er this subsection.
(3) LOAN PAYMENT RATE.—For purposes of this subsection, the loan pay ment rate shall be the amoun t by which—
(A) the loan rate establis hed und er subsection (b) for the loan comm odity; exceeds
(B) the rate at which a loan for the comm odity may be repai d und er subsection (d).
(4) EXCEPTION FOR EXTRA LONG S TAPLE COTT ON.—Th is subsection shall not apply with respect to extra long stapl e cot- ton.
(f) SPECIAL MARKET ING LOAN PROVI SIONS FOR UPLA ND COT- TON.—
(1) FIR S T HA NDLER MAR KET ING CERT IFICA TE S.—
(A) IN GENERAL .—During the period ending on July 31, 2003 , if the repay ment rates provided in subsection (d) for upla nd cotton or the availability of loan deficiency pay- ments for upla nd cotton und er subsection (e) fails to make United States upla nd cotton fully competitiv e in world markets and the prevaili ng world market price of upla nd cotton (adjusted to United States quality and location) is below the current loan repay ment rate for upla nd cotton, to make United States upla nd cotton competitiv e in world markets and to maintai n and expa nd domestic consump- tion and exports of upla nd cotton produced in the United States, the Secretary shall provide for the iss uance of mar- keting certifi cates or cash pay ments in accordance with this para graph.
(B) PAYMENT S.—Th e Comm odity Credit Corporati on, und er such regulati ons as the Secretary may prescribe, shall make pay ments, through the iss uance of marketing certifi cates or cash pay ments, to first handlers of upla nd cotton (persons regularly engaged in buying or selli ng up- land cotton) who have entered into an agreement with the Comm odity Credit Corporati on to parti cipat e in the pro- gram establis hed und er this para graph. The pay ments shall be made in such amoun ts and subject to such terms and cond itions as the Secretary determines will make up- land cotton produced in the United States availabl e at com- petitiv e prices, consistent with the purposes of this para- graph.
(C) VALUE .—Th e val ue of each certifi cate or cash pay- ment iss ued und er subparagrap h (B) shall be based on the difference between—
(i) the loan repay ment rate for upla nd cotton; and
(ii) the prevaili ng world market price of upla nd cotton (adjusted to United States quality and location), as determined by the Secretary.
(D) REDEMPTION, MAR KET ING, OR EXCHA NGE.—Th e Comm odity Credit Corporati on, und er regulati ons pre- scribed by the Secretary, may assist any person receivi ng marketing certifi cates und er this para graph in the redemp- tion of certifi cates for cash, or marketing or exchange of the certifi cates for agricultural comm odities or products owned by the Comm odity Credit Corporati on, at such times, in such manner, and at such price levels as the Secretary de- termines will best effectuate the purposes of the program es- tablis hed und er this para graph. Any price restri ctions that may otherwise apply to the disposition of agricultural com- modities by the Comm odity Credit Corporati on shall not apply to the redemption of certifi cates und er this para- graph.
(E) DESIGNATION OF COMMODI TIES AND PRODUCT S; CHAR GES.— Insofar as practicable, the Secretary shall per- mit owners of certifi cates to designate the comm odities and products, including storage sites, the owners would prefer to receive in exchange for certifi cates. If any certifi cate is
not presented for redemption, marketing, or exchange with- in a reasonable nu mber of days after the iss uance of the certifi cate (as determined by the Secretary), reasonable costs of storage and other carryi ng charges, as determined by the Secretary, shall be deducted from the val ue of the certifi cate for the period beginning after the reasonable nu mber of days and ending with the date of the presen- tati on of the certifi cate to the Comm odity Credit Corpora- tion.
(F) DISPLACEME NT .—Th e Secretary shall take such measures as may be necessary to prevent the marketing or exchange of agricultural comm odities and products for cer- tificates und er this subsection from adversely affecting the income of producers of the comm odities or products.
(G) TRANS FER S.—Und er regulati ons prescribed by the Secretary, certifi cates iss ued to cotton handlers und er this para graph may be tra nsferred to other handlers and per- sons approved by the Secretary.
(2) COTT ON USER MAR KET ING CERT IFICA TE S.—
(A) ISS UA NCE.— Subject to subparagrap h (D), during the period ending July 31, 2003 , the Secretary shall iss ue marketing certifi cates or cash pay ments to domestic users and exporters for documented purchases by domestic users and sales for export by exporters made in the week follow- ing a consecutive 4-week period in which—
(i) the Friday through Thu rsday average price quotation for the lowest-priced United States growth, as quoted for Middling (M) 13⁄32-inch cotton, delivered
C.I.F. Northern Europe exceeds the Northern Europe price by more than 1.25 cents per pound; and
(ii) the prevaili ng world market price for upla nd cotton (adjusted to United States quality and location) does not exceed 130 percent of the loan rate for upla nd cotton establis hed und er subsection (b).
(B) VALUE OF CERT IFICA TE S OR PAYMENT S.—Th e val ue of the marketing certifi cates or cash pay ments shall be based on the amoun t of the difference (reduced by 1.25 cents per pound ) in the prices during the 4th week of the consecutive 4-week period multipli ed by the quantity of up- land cotton included in the documented sales.
(C) ADMINIS TR ATION.— Subparagrap hs (D) through (G) of para graph (1) shall apply to marketing certifi cates is- sued und er this para graph. Any such certifi cates may be tra nsferred to other persons in accordance with regulati ons iss ued by the Secretary.
(D) EXCEPTION.—Th e Secretary shall not iss ue market- ing certifi cates or cash pay ments und er subparagrap h (A) if, for the imm ediately preceding consecutive 10-week pe- riod, the Friday through Thu rsday average price quotation for the lowest priced United States growth, as quoted for Middling (M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe, adjusted for the val ue of any certifi cate iss ued und er this para graph, exceeds the Northern Europe price by more than 1.25 cents per pound .
(E) LIMITATION ON EXPENDITURE S.—Total expenditures und er this para graph shall not exceed $701 ,000 ,000 during fiscal years 1996 through 2002 .
(3) SPECIAL IMPORT QUOTA.—
(A) ES TABLI SHME NT .—Th e President shall carry out an import quota program that provides that, during the period ending July 31, 2003 , whenever the Secretary determines and announces that for any consecutive 10-week period, the Friday through Thu rsday average price quotation for the lowest-priced United States growth, as quoted for Middling
(M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe, ad- justed for the val ue of any certifi cates iss ued und er para- graph (2), exceeds the Northern Europe price by more than
1.25 cents per pound , there shall imm ediately be in effect a special import quota.
(B) QUA NT ITY .—Th e quota shall be equal to 1 week’s consumption of upla nd cotton by domestic mills at the sea- sonally adjusted average rate of the most recent 3 months for which data are availabl e.
(C) APPLICA TION.—Th e quota shall apply to upla nd cotton purchased not later than 90 days after the date of the Secretary’s announcement und er subparagrap h (A) and entered into the United States not later than 180 days after the date.
(D) OVE RL AP.—A special quota period may be estab - lis hed that overlaps any existi ng quota period if required by subparagrap h (A), except that a special quota period may not be establis hed und er this para graph if a quota pe- riod has been establis hed und er subsection (g).
(E) PREFERE NT IA L TARIFF TRE ATMENT .—Th e quantity und er a special import quota shall be considered to be an in-quota quantity for purposes of—
(i) section 213(d) of the Caribb ean Basin Economic Recovery Act (19 U. S.C. 2703 (d));
(ii) section 204 of the And ean Trade Preference Act (19 U. S.C. 3203 );
(iii) section 503(d) of the Trade Act of 1974 (19 U. S.C. 2463 (d)); and
(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(F) DEFI NITION.— In this para graph, the term ‘‘special import quota’’ means a quantity of imports that is not sub- ject to the over-quota tariff rate of a tariff -rate quota.
(g) LIMITED GLOBAL IMPORT QUOTA FOR UPLA ND COTT ON.—
(1) IN GENERAL .—Th e President shall carry out an import quota program that provides that whenever the Secretary deter- mines and announces that the average price of the base quality of upla nd cotton, as determined by the Secretary, in the des- ignated 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, notwithsta nding any other provision of law, there shall imm ediately be in effect a li mited global import quota subject to the following cond itions:
(A) QUA NT ITY .—Th e quantity of the quota shall be equal to 21 days of domestic mill consumption of upla nd cotton at the seasonally adjusted average rate of the most recent 3 months for which data are availabl e.
(B) QUA NT ITY IF PRIOR QUOTA.— If a quota has been es- tablis hed und er this subsection during the preceding 12 months, the quantity of the quota next establis hed und er this subsection shall be the smaller of 21 days of domestic mill consumption calculated und er subparagrap h (A) or the quantity required to increase the supply to 130 percent of the demand.
(C) PREFERE NT IA L TARIFF TRE ATMENT .—Th e quantity und er a li mited global import quota shall be considered to be an in-quota quantity for purposes of—
(i) section 213(d) of the Caribb ean Basin Economic Recovery Act (19 U. S.C. 2703 (d));
(ii) section 204 of the And ean 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) DEFI NITIONS .— In this subsection:
(i) SUPPLY .—Th e term ‘‘su pply’’ means, using the latest official data of the Bureau of the Census, the De- part ment of Agriculture, and the Depart ment of the Treasury—
(I) the carry -over of upla nd cotton at the be- ginning of the marketing year (adjusted to 480- pound bales) in which the quota is establis hed;
(II) production of the current crop; and
(III) imports to the latest date availabl e dur- ing the marketing year.
(ii) DEMA ND.—Th e term ‘‘dem and’’ means—
(I) the average seasonally adjusted annu al rate of domestic mill consumption in the most re- cent 3 months for which data are availabl e; and
(II) the larger of—
(aa) average exports of upla nd cotton dur- ing the preceding 6 marketing years; or
(bb) cumulativ e exports of upla nd cotton plus outsta nding export sales for the market- ing year in which the quota is establis hed.
(iii) LIMITED GLOBAL IMPORT QUOTA.—Th e term ‘‘li mited global import quota’’ means a quantity of im- ports that is not subject to the over-quota tariff rate of a tariff -rate quota.
(D) QUOTA ENTRY PER IOD.—Wh en a quota is estab - lis hed und er this subsection, cotton may be entered und er the quota during the 90-day period beginning on the date the quota is establis hed by the Secretary.
(2) NO OVE RL AP.— Notwithsta nding para graph (1), a quota period may not be establis hed that overlaps an existi ng quota
period or a special quota period establis hed und er subsection (f)(3).
SEC. 1105 . PAYME NT LIMITATIONS .
(a) LIMITATION ON PAYMENT S UNDER PRODUCTION FLEX IBILITY CONTR ACT S.—Th e total amoun t of contract pay ments made to a per- son und er 1 or more production flexibility contracts during any fis- cal year may not exceed $40 ,000 .
(b) LIMITATION ON MARKET ING LOAN GAI NS AND LOAN DEFI- CIENCY PAYMENT S.—
(1) LIMITATION.—Th e total amoun t of pay ments specified in para graph (2) that a person shall be entitled to receive und er section 1104 for contract comm odities and oilseeds during any fiscal year may not exceed $75 ,000 .
(2) DESCRIPTION OF PAYMENT S.—Th e pay ments referred to in para graph (1) are the following:
(A) Any gain realized by a producer from repayi ng a marketing assista nce loan for a crop of any loan comm odity at a lower level than the origi nal loan rate establis hed for the comm odity und er section 1104 (b).
(B) Any loan deficiency pay ment received for a loan comm odity und er section 1104 (e).
(c) APPLICA BILITY OF OTHER PROVI SIONS REGARDI NG PAYMENT LIMITATIONS .—Paragrap hs (5), (6), and (7) of section 1001 and sec- tions 1001 A through 1001C of the Food Security Act of 1985 (7
U. S.C. 1308 et seq.) shall apply with respect to the appli cation of pay ment li mitati ons und er this section.
(d) CONFORM ING AME NDME NTS .— Section 1001 of the Food Se- curity Act of 1985 (7 U. S.C. 1308 ) is amended by stri king ‘‘1997’’ each place it appears in para graphs (1)(A), (1)(B), and (2)(A) and inserti ng ‘‘1995’’.
SEC. 1106 . PEANUT PRO GRAM.
(a) QUOTA PEA NUT S.—
(1) AVAILABILI TY OF LOANS .—Th e Secretary shall make nonrecourse loans availabl e to producers of quota peanu ts.
(2) LOAN RATE.—Th e national average quota loan rate for quota peanu ts shall be $610 per ton.
(3) INS PECTION, HA NDLING, OR S TORAGE.—Th e loan amoun t may not be reduced by the Secretary by any deductions for in- spection, handling, or storage.
(4) LOCATION AND OTHER FACTOR S.—Th e Secretary may make adjust ments in the loan rate for quota peanu ts for loca- tion of peanu ts and such other factors as are authorized by sec- tion 411 of the Agricultural Adjust ment Act of 1938 .
(b) ADDI TIONAL PEA NUT S.—
(1) IN GENERAL .—Th e Secretary shall make nonrecourse loans availabl e to producers of add itional peanu ts at such rates as the Secretary find s appropriat e, taking into considerati on the demand for peanu t oil and peanu t meal, expected prices of other vegetable oils and protein meals, and the demand for pea- nu ts in foreign markets.
(2) ANN OUNCEME NT .—Th e Secretary shall announce the loan rate for add itional peanu ts of each crop not later than
February 15 preceding the marketing year for the crop for which the loan rate is being determined.
(c) ARE A MARKET ING ASS OCI ATIONS .—
(1) WAREH OUSE S TORAGE LOANS .—
(A) IN GENERAL .— In carryi ng out subsections (a) and (b), the Secretary shall make warehouse storage loans availabl e in each of the producing areas (described in sec- tion 1446 .95 of titl e 7 of the Code of Federal Regulati ons (Janu ary 1, 1989 )) to a designated area marketing associa- tion of peanu t producers that is selected and approved by the Secretary and that is operated pri marily for the purpose of condu cting the loan activiti es. The Secretary may not make warehouse storage loans availabl e to any cooperati ve that is engaged in operati ons or activiti es concerning pea- nu ts other than those operati ons and activiti es specified in this section and section 358e of the Agricultural Adjust- ment Act of 1938 (7 U. S.C. 1359a ).
(B) ADMINIS TR ATIV E AND SUPERV ISORY ACTIVI TIES.—An area marketing associati on shall be used in administrativ e and supervisory activiti es relati ng to loans and marketing activiti es und er this section and section 358e of the Agricul- tural Adjust ment Act of 1938 (7 U. S.C. 1359a ).
(C) ASS OCI ATION COS T S.—Loans made to the associa- tion und er this para graph shall include such costs as the area marketing associati on reasonably may incur in carry- ing out the responsibiliti es, operati ons, and activiti es of the associati on und er this section and section 358e of the Agri- cultural Adjust ment Act of 1938 (7 U. S.C. 1359a ).
(2) POOLS FOR QUOTA AND ADDI TIONAL PEA NUT S.—
(A) IN GENERAL .—Th e Secretary shall require that each area marketing associati on establis h pools and maintai n complete and accurate records by area and segregation for quota peanu ts handled und er loan and for add itional pea- nu ts placed und er loan, except that separat e pools shall be establis hed for Valencia peanu ts produced in New Mexico. Bright hu ll and dark hu ll Valencia peanu ts shall be con- sidered as separat e types for the purpose of establis hing the pools.
(B) NET GAI NS .— Net gains on peanu ts in each pool, unless otherwise approved by the Secretary, shall be dis- trib uted only to producers who placed peanu ts in the pool and shall be distrib uted in proportion to the val ue of the peanu ts placed in the pool by each producer. Net gains for peanu ts in each pool shall consist of the following:
(i) QUOTA PEA NUT S.—For quota peanu ts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanu ts placed in the pool.
(ii) ADDI TIONAL PEA NUT S.—For add itional pea- nu ts, the net gains over and above the loan indebted- ness and other costs or losses incurred on peanu ts placed in the pool for add itional peanu ts.
(d) LOSS ES.—Losses in quota area pools shall be covered using the following sources in the following order of priority:
(1) TRANS FER S FROM ADDI TIONAL LOAN POOLS.—Th e pro- ceeds due any producer from any pool shall be reduced by the amoun t of any loss that is incurred with respect to peanu ts tra nsferred from an add itional loan pool to a quota loan pool by the producer und er section 358–1(b)(8) of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1358 –1(b)(8)).
(2) OTHER PRODUCER S IN SAME POOL.—Further losses in an area quota pool shall be offset by reducing the gain of any pro- ducer in the pool by the amoun t of pool gains attrib uted to the sa me producer from the sale of add itional peanu ts for domestic and export edible use.
(3) USE OF MAR KET ING ASS ESS ME NTS .—Th e Secretary shall use fund s collected und er subsection (g) (except fund s attrib - utable to handlers) to offset further losses in area quota pools. The Secretary shall tra nsfer to the Treasury those fund s col- lected und er subsection (g) and availabl e for use und er this sub- section that the Secretary determines are not required to cover losses in area quota pools.
(4) CROSS COMPLIA NCE.—Further losses in area quota pools, other than losses incurred as a result of tra nsfers from add itional loan pools to quota loan pools und er section 358– 1(b)(8) of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1358 –1(b)(8)), shall be offset by any gains or profits from quota pools in other production areas (ot her than separat e type pools establis hed und er subsection (c)(2)(A) for Valencia peanu ts pro- duced in New Mexico) in such manner as the Secretary shall by regulati on prescribe.
(5) INCRE ASED ASS ESS ME NTS .— If use of the authorities pro- vided in the preceding para graphs is not sufficient to cover losses in an area quota pool, the Secretary shall increase the marketing assessment establis hed und er subsection (g) by such an amoun t as the Secretary considers necessary to cover the losses. The increased assessment shall apply only to quota pea- nu ts in the production area covered by the pool. Amoun ts col- lected und er subsection (g) as a result of the increased assess- ment shall be retai ned by the Secretary to cover losses in that pool.
(e) DISAPPROVAL OF QUOTAS.— Notwithsta nding any other pro- vision of law, no loan for quota peanu ts may be made availabl e by the Secretary for any crop of peanu ts with respect to which pound - age quotas have been disappr oved by producers, as provided for in section 358–1(d) of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1358 –1(d)).
(f) QUALI TY IMPROVEME NT .—
(1) IN GENERAL .—With respect to peanu ts und er loan, the Secretary shall—
(A) promote the crushing of peanu ts at a greater ris k of deteriorati on before peanu ts of a lesser ris k of deteriora- tion;
(B) ensure that all Comm odity Credit Corporati on in- ventories of peanu ts sold for domestic edible use must be shown to have been officially inspected by licensed Depart- ment of Agriculture inspectors both as far mer stock and shelled or cleaned in-shell peanu ts;
(C) continue to endeavor to operate the peanu t program so as to improve the quality of domestic peanu ts and ensure the coordination of activiti es und er the Peanu t Ad ministra - tive Comm itt ee establis hed und er Marketing Agreement No. 146 , regulati ng the quality of domestically produced pea- nu ts (und er the Agricultural Adjust ment Act (7 U. S.C. 601 et seq.), reenacted with amend ments by the Agricultural Marketing Agreement Act of 1937 ); and
(D) ensure that any changes made in the peanu t pro- gram as a result of this subsection requiring add itional production or handling at the far m level shall be reflected as an upward adjust ment in the Depart ment of Agriculture loan schedule.
(2) EXPORT S AND OTHER PEA NUT S.—Th e Secretary shall re- quire that all peanu ts in the domestic and export markets fully comply with all quality sta nd ards und er Marketing Agreement No. 146 .
(g) MARKET ING ASS ESS ME NT .—
(1) IN GENERAL .—Th e Secretary shall provide for a non- refund able marketing assessment. The assessment shall be made on a per pound basis in an amoun t equal to 1.1 percent for each of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 1.2 percent for each of the 1997 through 2002 crops, of the national average quota or add itional peanu t loan rate for the appli cable crop.
(2) FIR S T PURCHA SER S.—
(A) IN GENERAL .—Except as provided und er para- graphs (3) and (4), the first purchaser of peanu ts shall—
(i) collect from the producer a marketing assess- ment equal to the quantity of peanu ts acquired multi- plied by—
(I) in the case of each of the 1994 and 1995 crops, .55 percent of the appli cable national aver- age loan rate;
(II) in the case of the 1996 crop, .6 percent of the appli cable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops, .65 percent of the appli cable national average loan rate;
(ii) pay, in add ition to the amoun t collected und er clause (i), a marketing assessment in an amoun t equal to the quantity of peanu ts acquired multipli ed by .55 percent of the appli cable national average loan rate; and
(iii) remit the amoun ts required und er clauses (i) and (ii) to the Comm odity Credit Corporati on in a manner specified by the Secretary.
(B) DEFI NITION OF FIR S T PURCHA SER .— In this sub- section, the term ‘‘first purchaser’’ means a person acquir- ing peanu ts from a producer except that in the case of pea- nu ts forfeited by a producer to the Comm odity Credit Cor- porati on, the term means the person acquiring the peanu ts from the Comm odity Credit Corporati on.
( 20 )
(3) OTHER PRIVA TE MAR KET INGS.— In the case of a privat e marketing by a producer directly to a consumer through a retail or wholesale outlet or in the case of a marketing by the pro- ducer outside of the continental United States, the producer shall be responsible for the full amoun t of the assessment and shall remit the assessment by such time as is specified by the Secretary.
(4) LOAN PEA NUT S.— In the case of peanu ts that are pledged as collat eral for a loan made und er this section, 1⁄2 of the as- sessment shall be deducted from the proceeds of the loan. The remainder of the assessment shall be pai d by the first purchaser of the peanu ts. For purposes of computing net gains on peanu ts und er this section, the reduction in loan proceeds shall be treat- ed as havi ng been pai d to the producer.
(5) PENAL TIES.— If any person fails to collect or remit the reduction required by this subsection or fails to comply with the requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liabl e to the Secretary for a civil penalty up to an amoun t deter- mined by multiplyi ng—
(A) the quantity of peanu ts involved in the violati on; by
(B) the national average quota peanu t rate for the ap- plicable crop year.
(6) ENFORCEME NT .—Th e Secretary may enforce this sub- section in the courts of the United States.
(h) CROPS.— Subsections (a) through (f) shall be effective only for the 1996 through 2002 crops of peanu ts.
(i) MARKET ING QUOTAS.—
(1) IN GENERAL .—Part VI of subtitl e B of titl e III of the Ag- ricultural Adjust ment Act of 1938 is amended—
(A) in section 358–1 (7 U. S.C. 1358 –1)—
(i) in the section heading, by stri king ‘‘1991
THROUGH 1997 CROPS OF’’;
(ii) in subsections (a)(1), (b)(1)(B), (b)(2)(A), (b)(2)(C), and (b)(3)(A), by stri king ‘‘of the 1991 through 1997 marketing years’’ each place it appears and inserti ng ‘‘m arketing year’’;
(iii) in subsection (a)(3), by stri king ‘‘1990’’ and in- serti ng ‘‘1990 , for the 1991 through 1995 marketing years, and 1995 , for the 1996 through 2002 marketing years’’;
(iv) in subsection (b)(1)(A)—
(I) by stri king ‘‘each of the 1991 through 1997 marketing years’’ and inserti ng ‘‘each marketing year’’; and
(II) in clause (i), by inserti ng before the semi- colon the following: ‘‘, in the case of the 1991 through 1995 marketing years, and the 1995 mar- keting year, in the case of the 1996 through 2002 marketing years’’; and
(v) in subsection (f), by stri king ‘‘1997’’ and insert- ing ‘‘2002’’;
(B) in section 358b (7 U. S.C. 1358b)—
( 29 )
(i) in the section heading, by stri king ‘‘1991 THROUGH 1995 CROPS OF’’; and
(ii) in subsection (c), by stri king ‘‘1995’’ and insert- ing ‘‘2002’’;
(C) in section 358c(d) (7 U. S.C. 1358 c(d)), by stri king ‘‘1995’’ and inserti ng ‘‘2002’’; and
(D) in section 358e (7 U. S.C. 1359a )—
(i) in the section heading, by stri king ‘‘FOR 1991 THROUGH 1997 CROPS OF PEANUTS ’’; and
(ii) in subsection (i), by stri king ‘‘1997’’ and insert- ing ‘‘2002’’.
(2) ELIMINATION OF QUOTA FLOOR.— Section 358–1(a)(1) of the Act (7 U. S.C. 1358 –1(a)(1)) is amended by stri king the sec- ond sentence.
(3) TEMPORARY QUOTA ALL OCATION.— Section 358–1 of the Act (7 U. S.C. 1358 –1) is amended—
(A) in subsection (a)(1), by stri king ‘‘domesti c edible, seed,’’ and inserti ng ‘‘domesti c edible use’’; and
(B) in subsection (b)(2)—
(i) in subparagrap h (A), by stri king ‘‘subparagrap h
(B) and subject to’’; and
(ii) by stri king subparagrap h (B) and inserti ng the following:
‘‘(B) TEMPORARY QUOTA ALL OCATION.—
‘‘(i) ALLOCATION REL ATED TO SEED PEA NUT S.—
Temporary allocation of quota pound s for the market- ing year only in which the crop is pla nted shall be made to producers for each of the 1996 through 2002 marketing years as provided in this subparagrap h.
‘‘(ii) QUA NT ITY .—Th e temporary quota allocation shall be equal to the pound s of seed peanu ts pla nted on the far m, as may be adjusted und er regulati ons pre- scribed by the Secretary.
‘‘(iii) ADDI TIONAL QUOTA.—Th e temporary alloca- tion of quota pound s und er this para graph shall be in add ition to the far m pound age quota otherwise estab - lis hed und er this subsection and shall be credited, for the appli cable marketing year only, in total to the pro- ducer of the peanu ts on the far m in a manner pre- scribed by the Secretary.
‘‘(iv) EFFECT OF OTHER REQUIREMENT S.— Nothing
in this section alters or changes the requirements re- garding the use of quota and add itional peanu ts estab - lis hed by section 358e(b).’’.
(4) UNDERMAR KET INGS.—Part VI of subtitl e B of titl e III of the Act is amended—
(A) in section 358–1(b) (7 U. S.C. 1358 –1(b))—
(i) in para graph (1)(B), by stri king ‘‘includ ing—’’ and clauses (i) and (ii) and inserti ng ‘‘includ ing any increases resulti ng from the allocation of quotas volun- tarily released for 1 year und er para graph (7).’’;
(ii) in para graph (3)(B), by stri king ‘‘includ e—’’ and clauses (i) and (ii) and inserti ng ‘‘includ e any in-
crease resulti ng from the allocation of quotas volun- tarily released for 1 year und er para graph (7).’’; and
(iii) by stri king para graphs (8) and (9); and
(B) in section 358b(a) (7 U. S.C. 1358b(a))—
(i) in para graph (1), by stri king ‘‘(includ ing any appli cable und er marketings)’’ both places it appears;
(ii) in para graph (1)(A), by stri king ‘‘of und ermarketings and’’;
(iii) in para graph (2), by stri king ‘‘(includ ing any appli cable und er marketings)’’; and
(iv) in para graph (3), by stri king ‘‘(includ ing any appli cable und ermarketings)’’.
(5) DISAS TER TR ANS FER S.— Section 358–1(b) of the Act (7
U. S.C. 1358 –1(b)), as amended by para graph (4)(A)(iii), is fur- ther amended by adding at the end the following:
‘‘(8) DISAS TER TR ANS FER S.—
‘‘(A) IN GENERAL .—Except as provided in subparagrap h (B), add itional peanu ts produced on a far m from which the quota pound age was not harvested and marketed because of drought, flood, or any other natural disast er, or any other cond ition beyond the control of the producer, may be tra nsferred to the quota loan pool for pricing purposes on such basis as the Secretary shall by regulati on provide.
‘‘(B) LIMITATION.—Th e pound age of peanu ts tra ns- ferred und er subparagrap h (A) shall not exceed the dif- ference between—
‘‘(i) the total quantity of peanu ts meeting quality requirements for domestic edible use, as determined by the Secretary, marketed from the far m; and
‘‘(ii) the total far m pound age quota, excluding quota pound s tra nsferred to the far m in the fall .
‘‘(C) SUPPO RT RATE.—Peanu ts tra nsferred und er this para graph shall be supported at not more than 70 percent of the quota support rate for the marketing years in which the tra nsfers occur. The tra nsfers for a far m shall not ex- ceed 25 percent of the total far m quota pound s, excluding pound s tra nsferred in the fall .’’.
SEC. 1107 . SU GAR PRO GRAM.
(a) SUGARCANE.—Th e Secretary shall make loans availabl e to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.
(b) SUGAR BEET S.—Th e Secretary shall make loans availabl e to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.
(c) TERM OF LOANS .—
(1) IN GENERAL .—Loans und er this section during any fis- cal year shall be made availabl e not earlier than the beginning of the fiscal year and shall mature at the earlier of—
(A) the end of 9 months; or
(B) the end of the fiscal year.
(2) SUPPLEME NT AL LOANS .— In the case of loans made und er this section in the last 3 months of a fiscal year, the proc- essor may repledge the sugar as collat eral for a second loan in the subsequent fiscal year, except that the second loan shall—
(A) be made at the loan rate in effect at the time the second loan is made; and
(B) mature in 9 months less the quantity of time that the first loan was in effect.
(d) LOAN TYPE; PROCESS OR ASS URANCES.—
(1) RECOUR SE LOANS .— Subject to para graph (2), the Sec- retary shall carry out this section through the use of recourse loans.
(2) NONR ECOUR SE LOANS .—During any fiscal year in which the tariff rate quota for imports of sugar into the United States is establis hed at, or is increased to, a level in excess of 1,500 ,000 short tons raw val ue, the Secretary shall carry out this section by making availabl e nonrecourse loans. Any re- course loan previously made availabl e by the Secretary und er this section during the fiscal year shall be changed by the Sec- retary into a nonrecourse loan.
(3) PROCESS OR ASS URANCES.— If the Secretary is required und er para graph (2) to make nonrecourse loans availabl e dur- ing a fiscal year or to change recourse loans into nonrecourse loans, the Secretary shall obtai n from each processor that re- ceives a loan und er this section such assurances as the Sec- retary considers adequate to ensure that the processor will pro- vide pay ments to producers that are proportional to the val ue of the loan received by the processor for sugar beets and sugar- cane delivered by producers served by the processor. The Sec- retary may establis h appropriat e minimum pay ments for pur- poses of this para graph.
(e) MARKET ING ASS ESS ME NT .—
(1) SUGARCANE.—Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first proc- essor of sugarcane shall remit to the Comm odity Credit Cor- porati on a nonrefund able marketing assessment in an amoun t equal to—
(A) in the case of marketings during fiscal year 1996 ,
1.1 percent of the loan rate establis hed und er subsection (a) per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molas- ses, that has been marketed (includ ing the tra nsfer or deliv- ery of the sugar to a refinery for further processing or mar- keting); and
(B) in the case of marketings during each of fiscal years 1997 through 2003 , 1.375 percent of the loan rate es- tablis hed und er subsection (a) per pound of raw cane sugar, processed by the processor from domestically pro- duced sugarcane or sugarcane molasses, that has been marketed (includ ing the tra nsfer or delivery of the sugar to a refinery for further processing or marketing).
(2) SUGAR BEET S.—Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Comm odity Credit Corporati on a nonrefund able marketing assessment in an amoun t equal to—
(A) in the case of marketings during fiscal year 1996 , 1.1794 percent of the loan rate establis hed und er subsection
(a) per pound of beet sugar, processed by the processor from
domestically produced sugar beets or sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal years 1997 through 2003 , 1.47425 percent of the loan rate establis hed und er subsection (a) per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed.
(3) COLLE CTION.—
(A) TIMING.—A marketing assessment required und er this subsection shall be collected on a monthly basis and shall be remitted to the Comm odity Credit Corporati on not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is mar- keted.
(B) MANN ER .— Subject to subparagrap h (A), marketing assessments shall be collected und er this subsection in the manner prescribed by the Secretary and shall be non- refund able.
(4) PENAL TIES.— If any person fails to remit the assessment required by this subsection or fails to comply with such require- ments for recordkeeping or otherwise as are required by the Sec- retary to carry out this subsection, the person shall be liabl e to the Secretary for a civil penalty up to an amoun t determined by multiplyi ng—
(A) the quantity of cane sugar or beet sugar involved in the violati on; by
(B) the loan rate for the appli cable crop of sugarcane or sugar beets.
(5) ENFORCEME NT .—Th e Secretary may enforce this sub- section in a court of the United States.
(f) FORFEITURE PENAL TY .—
(1) IN GENERAL .—A penalty shall be assessed on the forfeit- ure of any sugar pledged as collat eral for a nonrecourse loan und er this section.
(2) SUGARCANE.—Th e penalty for sugarcane shall be 1 cent per pound .
(3) SUGAR BEET S.—Th e penalty for sugar beets shall bear the sa me relati on to the penalty for sugarcane as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane.
(4) EFFECT OF FORFEITURE.—An y pay ments owed producers by a processor that forfeits of any sugar pledged as collat eral for a nonrecourse loan shall be reduced in proportion to the loan forfeit ure penalty incurred by the processor.
(g) INFORM ATION REPORT ING.—
(1) DUTY OF PROCESS OR S AND REFI NER S TO REPORT .—A sugarcane processor, cane sugar refiner, and sugar beet proc- essor shall furnish the Secretary, on a monthly basis , such in- formation as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane,
sugar beets, and sugar, and production, importati on, distrib u- tion, and stock levels of sugar.
(2) PENAL TY .—An y person willf ully faili ng or refusing to furnish the information, or furnishing willf ully any fals e infor- mation, shall be subject to a civil penalty of not more than
$10 ,000 for each such violati on.
(3) MONT HLY REPORT S.—T aking into considerati on the in- formation received und er para graph (1), the Secretary shall publis h on a monthly basis composite data on production, im- ports, distrib ution, and stock levels of sugar.
(h) MARKET ING ALLOTMENT S.—Part VII of subtitl e B of titl e III of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1359aa et seq.) is repealed.
(i) CROPS.—Th is section (ot her than subsection (h)) shall be ef- fective only for the 1996 through 2002 crops of sugar beets and sug- arcane.
SEC. 1108 . ADMINISTR ATION .
(a) COMMODI TY CREDIT CORPORATION.—
(1) USE OF CORPORATION.—Th e Secretary shall carry out this subtitl e through the Comm odity Credit Corporati on.
(2) SALA RIES AND EXPENS ES.— No fund s of the Corporati on shall be used for any salary or expense of any officer or em- ployee of the Depart ment of Agriculture in connection with the administrati on of pay ments or loans und er this subtitl e.
(b) ADMINIS TR ATION.—T itle IV of the Agricultural Adjust ment Act of 1938 (as added by section 1109 ) shall apply to the adminis- trati on of this subtitl e.
(c) REGULA TIONS .—Th e Secretary may iss ue such regulati ons as the Secretary determines necessary to carry out this subtitl e.
SEC. 1109 . ELIMI NATION OF PERMANENT PR ICE SUPPORT AUTHOR ITY.
(a) AGRICU LTURAL ADJUS TMENT ACT OF 1938 .—Th e Agricul- tural Adjust ment Act of 1938 is amended—
(1) in titl e III —
(A) in subtitl e B—
(i) by stri king parts II through V (7 U. S.C. 1326 – 1351 ); and
(ii) in part VI, by stri king sections 358 , 358a , and 358 d (7 U. S.C. 1358 , 1358a , and 1359 ); and
(B) by stri king subtitl e D (7 U. S.C. 1379a –1379j); and
(2) by stri king titl e IV (7 U. S.C. 1401 –1407 ).
(b) AGRICU LTURAL ACT OF 1949 .—
(1) TRANS FER OF CERTA IN SECTIONS .—Th e Agricultural Act of 1949 is amended—
(A) by tra nsferri ng sections 106 , 106 A, and 106 B (7
U. S.C. 1445 , 1445 –1, 1445 –2) to appear after section 314 A of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1314 –
1) and redesignati ng the tra nsferred sections as sections 315 , 315 A, and 315 B, respectively;
(B) by tra nsferri ng sections 111 , 201(c), and 204 (7
U. S.C. 1445f , 1446 (c), 1446 e) to appear after section 304 of the Agricultural Adjust ment Act of 1938 (7 U. S.C. 1304 ) and redesignati ng the tra nsferred sections as sections 305 , 306 , and 307 , respectively;
(C) by tra nsferri ng sections 403 , 405 , 407 , 412 , and 422 (7 U. S.C. 1423 , 1425 , 1427 , 1429 , 1431a ) to appear after section 393 (7 U. S.C. 1393 ) and redesignati ng the tra nsferred sections as sections 411 , 412 , 413 , 414 , and 415 , respectively; and
(D) by tra nsferri ng section 416 (7 U. S.C. 1431 ) to ap- pear after section 415 of the Agricultural Adjust ment Act of 1938 (as tra nsferred and redesignated by subparagrap h (C)).
(2) REPEAL .—Th e Agricultural Act of 1949 (7 U. S.C. 1421 et seq.) (as amended by para graph (1)) is repealed.
(c) CONFORM ING AME NDME NTS .—Th e Agricultural Adjust ment Act of 1938 is amended—
(1) in section 306 (as tra nsferred and redesignated by sub- section (b)(1)(B)), by stri king ‘‘204’’ and inserti ng ‘‘307’’; and
(2) by stri king section 411 (as tra nsferred and redesignated by subsection (b)(1)(C)) and inserti ng the following:
‘‘TITL E IV—ADMINISTR ATION OF LOA NS
‘‘S EC. 411 . ADJUST MENTS FOR GRADE, TYP E, QU ALI TY, LOCAT ION , AND OTH ER FAC TORS .
‘‘Th e Secretary may make such adjust ments in the announced loan rate for a comm odity as the Secretary considers appropriat e to reflect differences in grade, type, quality , location, and other fac- tors.’’.
SEC. 1110 . EFFEC T OF AME NDMENTS .
(a) EFFECT ON PRIOR CROPS.—Except as otherwise specifically provided and notwithsta nding any other provision of law, this sub- titl e and the amend ments made by this subtitl e shall not affect the authority of the Secretary to carry out a price support or production adjust ment program for any of the 1991 through 1995 crops of an agricultural comm odity establis hed und er a provision of law in ef- fect imm ediately before the date of the enactment of this Act.
(b) LIA BILITY .—A provision of this subtitl e or an amend ment made by this subtitl e shall not affect the liability of any person und er any provision of law as in effect before the date of the enact- ment of this Act.
Subtitl e B—Conserv a ti on
SEC. 1201 . CO NS ERVATION .
(a) FUNDI NG.— Subtitl e E of titl e XII of the Food Security Act of 1985 (16 U. S.C. 3841 et seq.) is amended to read as follows:
‘‘Subtitl e E—Fun ding
‘‘S EC. 1241 . FUND ING.
‘‘(a) MANDATORY EXPENS ES.—For each of fiscal years 1996 through 2002 , the Secretary shall use the fund s of the Comm odity Credit Corporati on to carry out the programs authorized by—
‘‘(1) subchapter B of chapter 1 of subtitl e D (includ ing con- tracts extended by the Secretary pursuant to section 1437 of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101–624; 16 U. S.C. 3831 note));
‘‘(2) subchapter C of chapter 1 of subtitl e D; and ‘‘(3) chapter 4 of subtitl e D.
‘‘(b) LIV ES TOCK ENVIRONME NT AL ASS IS TANCE PROGRAM.—For
each of fiscal years 1996 through 2002 , $100 ,000 ,000 of the fund s of the Comm odity Credit Corporati on shall be availabl e for provid- ing techn ical assista nce, cost-sharing pay ments, and incentive pay- ments for practices relati ng to livestock production und er the live- stock environmental assista nce program und er chapter 4 of subtitl e D.’’.
(b) LIV ES TOCK ENVIRONME NT AL ASS IS TANCE PROGRAM.—To carry out the programs fund ed und er the amend ment made by sub- section (a), subtitl e D of titl e XII of the Food Security Act of 1985 (16 U. S.C. 3830 et seq.) is amended by adding at the end the follow- ing:
‘‘CHA PT ER 4—LIVE STO CK ENVIRON MENT AL ASS IST ANCE PRO GRAM
‘‘S EC. 1240 . DEFINITIONS .
‘‘I n this chapter:
‘‘(1) LAND MA NAGEME NT PRACTICE.—Th e term ‘land man-
agement practice’ means a site-specific nu trient or manure man- agement, irrigati on management, tilla ge or residue manage- ment, grazi ng management, or other land management practice that the Secretary determines is needed to protect, in the most cost effective manner, water, soil, or related resources from deg- radation due to livestock production.
‘‘(2) LARGE CONFI NED LIV ES TOCK OPERAT ION.—Th e term
‘large confined livestock operati on’ means an operati on that— ‘‘(A) is a confined animal feeding operati on; and
‘‘(B) has more than—
‘‘(i) 55 mature dairy cattl e; ‘‘(ii) 10,000 beef cattl e;
‘‘(iii) 30,000 layi ng hens or broilers (if the facility has continuous overflow watering);
‘‘(iv) 100 ,000 layi ng hens or broilers (if the facility has a liq uid manure syst em);
‘‘(v) 55,000 turkeys; ‘‘(vi) 15,000 swine; or
‘‘(vii) 10,000 sheep or la mbs.
‘‘(3) LIV ES TOCK.—Th e term ‘livestock’ means dairy cows, beef cattl e, layi ng hens, broilers, turkeys, swine, sheep, la mbs, and such other animals as determined by the Secretary.
‘‘(4) OPERAT OR.—Th e term ‘operator’ means a person who is engaged in livestock production (as defined by the Secretary).
‘‘(5) STR UCTURAL PRACTICE.—Th e term ‘str uctural practice’ means the establis hment of an animal waste management facil- ity , terrace, grassed waterway, contour grass strip , filt erstrip , or other str uctural practice that the Secretary determines is needed to protect, in the most cost effective manner, water, soil, or re- lated resources from degradation due to livestock production.
‘‘S EC. 1240A . EST ABLI SHMENT AND ADMINISTR ATION OF LIVE STO CK ENVIRON MENT AL ASS IST ANCE PRO GRAM.
‘‘(a) ES TABLI SHME NT .—
‘‘(1) IN GENERAL .—During the 1996 through 2002 fiscal years, the Secretary shall provide techn ical assista nce, cost- sharing pay ments, and incentive pay ments to operators who enter into contracts with the Secretary, through a livestock envi- ronmental assista nce program.
‘‘(2) ELIGI BLE PRACTICES.—
‘‘(A) STR UCTURAL PRACTICES.—An operator who imple- ments a str uctural practice shall be eligibl e for techn ical assista nce or cost-sharing pay ments, or both.
‘‘(B) LAND MA NAGEME NT PRACTICES.—An operator who
performs a land management practice shall be eligibl e for techn ical assista nce or incentive pay ments, or both.
‘‘(3) ELIGI BLE LA ND.—Assista nce und er this chapter may be provided with respect to land that is used for livestock produc- tion and on which a serious threat to water, soil, or related re- sources exists , as determined by the Secretary, by reason of the soil types, terrai n, climatic, soil, topographic, flood, or sali ne characteristi cs, or other factors or natural hazar ds.
‘‘(4) SELE CTION CRITER IA.— In providing techn ical assist - ance, cost-sharing pay ments, and incentive pay ments to opera- tors in a region, watershed, or conservation priority area in which an agricultural operati on is located, the Secretary shall consider—
‘‘(A) the significance of the water, soil, and related nat- ural resource problems; and
‘‘(B) the maxi mizati on of environmental benefits per dollar expended.
‘‘(b) APPLICA TION AND TERM .—
‘‘(1) IN GENERAL .—A contract between an operator and the Secretary und er this chapter may—
‘‘(A) apply to 1 or more str uctural practices or 1 or more land management practices, or both; and
‘‘(B) have a term of not less than 5, nor more than 10, years, as determined appropriat e by the Secretary, depend- ing on the practice or practices that are the basis of the con- tract.
‘‘(2) DUTIES OF OPERAT OR S AND SECRET ARY .—To receive
cost sharing or incentive pay ments, or techn ical assista nce, par- ticipati ng operators shall comply with all terms and cond itions of the contract and a pla n, as establis hed by the Secretary.
‘‘(c) STR UCTURAL PRACTICES.—
‘‘(1) COMPET ITIV E OFFER .—Th e Secretary shall administer a competitiv e offer syst em for operators proposing to receive cost-sharing pay ments in exchange for the implementation of 1 or more str uctural practices by the operator. The competitiv e offer syst em shall consist of—
‘‘(A) the submission of a competitiv e offer by the opera- tor in such manner as the Secretary may prescribe; and
‘‘(B) eval uation of the offer in light of the selection cri- teria establis hed und er subsection (a)(4) and the projected cost of the proposal, as determined by the Secretary.
‘‘(2) CONCURREN CE OF OWNER .— If the operator making an offer to implement a str uctural practice is a tenant of the land involved in agricultural production, for the offer to be accept- able, the operator shall obtai n the concurrence of the owner of the land with respect to the offer.
‘‘(d) LAND MANAGEME NT PRACTICES.—Th e Secretary shall es- tablis h an appli cation and eval uation process for awarding tech- nical assista nce or incentive pay ments, or both, to an operator in ex- change for the performance of 1 or more land management practices by the operator.
‘‘(e) COS T-SHAR ING, INCENT IV E PAYMENT S, AND TECHNICA L AS-
SIS TANCE.—
‘‘(1) COS T-SHAR ING PAYMENT S.—
‘‘(A) IN GENERAL .—Th e Federal share of cost-sharing pay ments to an operator proposing to implement 1 or more str uctural practices shall not be greater than 75 percent of the projected cost of each practice, as determined by the Secretary, taking into considerati on any pay ment received by the operator from a State or local government.
‘‘(B) LIMITATION.—An operator of a large confined live- stock operati on shall not be eligibl e for cost-sharing pay- ments to constr uct an animal waste management facility .
‘‘(C) OTHER PAYMENT S.—An operator shall not be eligi- ble for cost-sharing pay ments for str uctural practices on eli- gibl e land und er this chapter if the operator receives cost- sharing pay ments or other benefits for the sa me land und er chapter 1, 2, or 3.
‘‘(2) INCENT IV E PAYMENT S.—Th e Secretary shall make in- centive pay ments in an amoun t and at a rate determined by the Secretary to be necessary to encourage an operator to perform 1 or more land management practices.
‘‘(3) TECHNICA L ASS IS TANCE.—
‘‘(A) FUNDI NG.—Th e Secretary shall allocate fund ing und er this chapter for the provision of techn ical assista nce according to the purpose and projected cost for which the techn ical assista nce is provided for a fiscal year. The allo- cated amoun t may vary according to the type of expertise required, quantity of time involved, and other factors as de- termined appropriat e by the Secretary. Fund ing shall not exceed the projected cost to the Secretary of the techn ical as- sista nce provided for a fiscal year.
‘‘(B) OTHER AU THORITIES.—Th e receipt of techn ical as- sista nce und er this chapter shall not affect the eligibility of the operator to receive techn ical assista nce und er other au- thoriti es of law availabl e to the Secretary.
‘‘(f) LIMITATION ON PAYMENT S.—
‘‘(1) IN GENERAL .—Th e total amoun t of cost-sharing and in- centive pay ments pai d to a person und er this chapter may not exceed—
‘‘(A) $10 ,000 for any fiscal year; or
‘‘(B) $50 ,000 for any multiyear contract.
‘‘(2) REGULA TIONS .—Th e Secretary shall iss ue regulati ons that are consistent with section 1001 for the purpose of—
( 30 )
‘‘(A) defining the term ‘person’ as used in para graph (1); and
‘‘(B) prescribi ng such rules as the Secretary determines necessary to ensure a fair and reasonable appli cation of the li mitati ons establis hed und er this subsection.
‘‘(g) REGULA TIONS .— Not later than 180 days after the effective date of this subsection, the Secretary shall iss ue regulati ons to im- plement the livestock environmental assista nce program establis hed und er this chapter.’’.
(c) CONFORM ING AME NDME NTS .—
(1) COMMODI TY CREDIT CORPORATION CHARTER ACT.— Sec- tion 5(g) of the Comm odity Credit Corporati on Charter Act (15
U. S.C. 714c(g)) is amended to read as follows:
‘‘(g) Carry out conservation functions and programs.’’.
(2) WETLA NDS RE SERVE PROGRAM.—
(A) IN GENERAL .— Section 1237 of the Food Security Act of 1985 (16 U. S.C. 3837 ) is amended—
(i) in subsection (b)(2)—
(I) by stri king ‘‘not less’’ and inserti ng ‘‘not more’’; and
(II) by stri king ‘‘2000’’ and inserti ng ‘‘2002’’;
and
(ii) in subsection (c), by stri king ‘‘2000’’ and insert- ing ‘‘2002’’.
(B) LENGTH OF EA SEME NT .— Section 1237 A(e) of the Food Security Act of 1985 (16 U. S.C. 3837a (e)) is amended by stri king para graph (2) and inserti ng the following:
‘‘(2) shall be for 15 years, but in no case shall be a perma- nent easement.’’.
(3) CONS ERVAT ION RE SERVE PROGRAM.—
(A) IN GENERAL .— Section 1231 (d) of the Food Security Act of 1985 (16 U. S.C. 3831 (d)) is amended by stri king ‘‘total of’’ and all that follows through the period at the end of the subsection and inserti ng ‘‘total of 36,400 ,000 acres.’’.
(B) OPTIONAL CONTR ACT TERM INATION BY PRODUC- ER S.— Section 1235 of the Food Security Act