To authorize the provision of economic assistance to certain hog producers in response to current disastrously low prices for hogs. (Introduced in the House)

HR 217 IH

106th CONGRESS

1st Session

H. R. 217

To authorize the provision of economic assistance to certain hog producers in response to current disastrously low prices for hogs.

IN THE HOUSE OF REPRESENTATIVES

January 6, 1999

Mr. NUSSLE (for himself, Mr. LEACH, and Mr. LATHAM) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To authorize the provision of economic assistance to certain hog producers in response to current disastrously low prices for hogs.

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

SECTION 1. NONRECOURSE MARKETING ASSISTANCE LOANS FOR CERTAIN HOG PRODUCERS.

(a) NONRECOURSE LOANS AUTHORIZED-

(1) IN GENERAL- In order to assist hog producers described in paragraph (2) to market their hogs in an orderly manner during a period of disastrously low prices, from October 1, 1998, to September 30, 1999, the Secretary of Agriculture may make available to such producers nonrecourse marketing assistance loans for hogs produced by such producers. The loans shall be made under terms and conditions prescribed by the Secretary and at the loan rate determined under subsection (b).

(2) ELIGIBLE HOG PRODUCERS- To be eligible for a loan under this section, a producer shall market not more than 5,000 hogs during the period specified in paragraph (1).

(b) LOAN RATE- The loan rate of a marketing assistance loan under this section shall be--

(1) 85 percent of the average price for live hogs during the preceding five-calendar 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

(2) not more than $30 per hundredweight.

(c) TERM OF LOAN- A marketing assistance loan under this section shall have a term of nine months beginning on the first day of the first month after the month in which the loan is made. The Secretary may not extend the term of the loan.

(d) REPAYMENT RATES- The Secretary shall permit a producer to repay a marketing assistance loan under this section at a rate that is the lesser of--

(1) the loan rate established under subsection (b), plus interest (as determined by the Secretary); or

(2) a rate that the Secretary determines will--

(A) minimize potential loan forfeitures;

(B) minimize the accumulation of stocks of the commodity by the Federal Government;

(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally.

(e) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS-

(1) IN GENERAL- The Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan under this section, agree to forgo obtaining the loan in return for payments under this subsection.

(2) COMPUTATION- A loan deficiency payment under this subsection shall be computed by multiplying--

(A) the loan payment rate determined under paragraph (3); by

(B) the quantity of the loan commodity that the producers on a farm are eligible to place under loan but for which the producers forgo obtaining the loan in return for payments under this subsection.

(3) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment rate shall be the amount by which--

(A) the loan rate established under subsection (b) and in effect; exceeds

(B) the rate at which a loan for the commodity may be repaid under subsection (d).

(f) PAYMENT LIMITATION- The total gain that a person may receive under this section from the repayment of a marketing assistance loan under this section or the receipt of loan deficiency payments under subsection (e) may not exceed $75,000.