Sugar Program Reform Act (Introduced in the House)

HR 1850 IH

106th CONGRESS

1st Session

H. R. 1850

To amend the Agricultural Market Transition Act to convert the price support program for sugarcane and sugar beets into a system of solely recourse loans and to provide for the gradual elimination of the program.

IN THE HOUSE OF REPRESENTATIVES

May 18, 1999

Mr. MILLER of Florida (for himself, Mr. GEORGE MILLER of California, Mr. GOSS, Mr. KOLBE, Mr. FORBES, Mr. WAXMAN, Mr. ROYCE, Mr. SHAYS, Mr. WOLF, Mrs. NORTHUP, Mr. FRELINGHUYSEN, Mr. BLAGOJEVICH, Mr. SUNUNU, Mr. STARK, Mr. MEEHAN, Mr. SANFORD, Mr. BASS, Mr. CAMPBELL, Mr. BRADY of Pennsylvania, Mr. PORTMAN, Mr. BERMAN, Mr. VISCLOSKY, Mr. HINCHEY, Mr. HUTCHINSON, Mr. CARDIN, Mr. CASTLE, Mr. HANSEN, Mr. COOK, Mr. COYNE, Mr. ENGLISH, Mr. ROHRABACHER, Mr. SOUDER, Mr. WEINER, Mr. SHAW, Mr. SCARBOROUGH, Mr. PORTER, Mr. COBURN, Mr. HORN, Mr. RAMSTAD, Mr. WAMP, Mr. SENSENBRENNER, Mrs. ROUKEMA, Mr. KINGSTON, and Mr. SALMON) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Sugar Program Reform Act'.

SEC. 2. RECOURSE LOANS FOR PROCESSORS OF SUGARCANE AND SUGAR BEETS AND REDUCTION IN LOAN RATES.

(a) GRADUAL REDUCTION IN LOAN RATES-

(1) SUGARCANE PROCESSOR LOANS- Subsection (a) of section 156 of the Agricultural Market Transition Act (7 U.S.C. 7272) is amended by striking `equal to 18 cents per pound for raw cane sugar.' and inserting the following: `, per pound for raw cane sugar, equal to the following:

`(1) In the case of raw cane sugar processed from the 1996 through 1998 crops, $0.18.

`(2) In the case of raw cane sugar processed from the 1999 crop, $0.17.

`(3) In the case of raw cane sugar processed from the 2000 crop, $0.16.

`(4) In the case of raw cane sugar processed from the 2001 crop, $0.15.

`(5) In the case of raw cane sugar processed from the 2002 crop, $0.14.'.

(2) SUGAR BEET PROCESSOR LOANS- Subsection (b) of such section is amended by striking `equal to 22.9 cents per pound for refined beet sugar.' and inserting the following: `, per pound of refined beet sugar, that reflects--

`(1) an amount that bears the same relation to the loan rate in effect under subsection (a) for a crop as the weighted average of producer returns for sugar beets bears to the weighted average of producer returns for sugarcane, expressed on a cents per pound basis for refined beet sugar and raw cane sugar, for the most recent five-year period for which data are available; plus

`(2) an amount that covers sugar beet processor fixed marketing expenses.'.

(b) CONVERSION TO RECOURSE LOANS- Subsection (e) of such section is amended--

(1) in paragraph (1), by inserting `only' after `this section'; and

(2) by striking paragraphs (2) and (3) and inserting the following new paragraph:

`(2) NATIONAL LOAN RATES- Recourse loans under this section shall be made available at all locations nationally at the rates specified in this section, without adjustment to provide regional differentials.'.

(1) by redesignating subsection (i) as subsection (j);

(2) by inserting after subsection (h) the following new subsection:

`(i) CONVERSION TO PRIVATE SECTOR FINANCING- Notwithstanding any other provision of law, no processor of the 2003 or subsequent crops of sugarcane or sugar beets shall be eligible for loans under this section with respect to such crops, and the Secretary of Agriculture may not make price support available, whether in the form of loans, payments, purchases, or other operations, for the 2003 and subsequent crops of sugar beets and sugarcane by using the funds of the Commodity Credit Corporation or other funds available to the Secretary.'; and

(3) in subsection (j), as redesignated by paragraph (1), by striking `subsection (f)' and inserting `subsections (f) and (i)'.

(d) TERMINATION OF MARKETING QUOTAS AND ALLOTMENTS-

(1) TERMINATION- Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa-1359jj) is repealed.

(2) CONFORMING AMENDMENT- Section 344(f)(2) of such Act (7 U.S.C. 1344(f)(2)) is amended by striking `sugar cane for sugar, sugar beets for sugar,'.

(e) OTHER CONFORMING AMENDMENTS-

(1) PRICE SUPPORT FOR NONBASIC AGRICULTURAL COMMODITIES- The Agricultural Act of 1949 is amended--

(A) in section 201(a) (7 U.S.C. 1446(a)), by striking `milk, sugar beets, and sugarcane' and inserting `, and milk'; and

(B) in section 301 (7 U.S.C. 1447), by inserting `(other than sugarcane and sugar beets)' after `title II'.

(2) POWERS OF COMMODITY CREDIT CORPORATION- Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting `(except for sugarcane and sugar beets of the 2003 and subsequent crops)' after `agricultural commodities'.

(3) SECTION 32 ACTIVITIES- The second sentence of the first paragraph of section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), is amended by inserting `(other than sugarcane and sugar beets)' after `commodity' the last place it appears.

(f) ASSURANCE OF ADEQUATE SUPPLIES OF SUGAR- Subsection (a) of section 902 of the Food Security Act of 1985 (Public Law 99-198; 7 U.S.C. 1446g note) is amended to read as follows:

`(a) Beginning with the quota year for sugar imports which begins after the 1998/1999 quota year, the President shall use all authorities available to the President as may be necessary to enable the Secretary of Agriculture to ensure that adequate supplies of raw cane sugar are made available to the United States market at prices no greater than the higher of--

`(1) the world sugar price (adjusted to a delivered basis); or

`(2) the raw cane sugar loan rate in effect under section 156 of the Agricultural Market Transition Act (7 U.S.C. 7272), plus interest.'.