S 802 IS

To provide for a gradual reduction in the loan rate for peanuts, to repeal peanut quotas for the 2002 and subsequent crops, and to require the Secretary of Agriculture to purchase peanuts and peanut products for nutrition programs only at the world market price.

April 14, 1999

Mr. SANTORUM (for himself, Mr. CHAFEE, Mr. GREGG, Mr. FEINGOLD, Mr. DEWINE, Mr. BROWNBACK, Mr. SPECTER, and Ms. COLLINS) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

To provide for a gradual reduction in the loan rate for peanuts, to repeal peanut quotas for the 2002 and subsequent crops, and to require the Secretary of Agriculture to purchase peanuts and peanut products for nutrition programs only at the world market price.

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

SECTION 1. REDUCTION IN LOAN RATES FOR PEANUTS.

Section 155(a) of the Agricultural Market Transition Act (7 U.S.C. 7271(a)) is amended by striking paragraph (2) and inserting the following:

`(2) LOAN RATE- The national average quota loan rate for quota peanuts shall be as follows:

`(A) $610 per ton for the 1999 crop.

`(B) $550 per ton for the 2000 crop.

`(C) $500 per ton for the 2001 crop.'.

SEC. 2. NONRECOURSE LOANS FOR 2002 AND SUBSEQUENT CROPS OF PEANUTS.

Effective beginning with the 2002 crop of peanuts, section 155 of the Agricultural Market Transition Act (7 U.S.C. 7271) is amended to read as follows:

`SEC. 155. PEANUT PROGRAM.

`(a) IN GENERAL-

`(1) LOANS- The Secretary shall make nonrecourse loans available to producers of peanuts for each of the 2002 and subsequent crops of peanuts.

`(2) RATE- In carrying out paragraph (1), the Secretary shall offer to all peanut producers nonrecourse loans at a level not less than 85 percent of the simple average price received by producers for peanuts, as determined by the Secretary, during the marketing year for each of the immediately preceding 5 crops of peanuts, excluding the year in which the average price was the highest and the year in which the average price was the lowest during the period, but not more than $350 per ton. The loans shall be administered at no net cost to the Commodity Credit Corporation.

`(3) INSPECTION, HANDLING, OR STORAGE- The levels of support determined under paragraph (2) shall not be reduced by any deduction for inspection, handling, or storage.

`(4) MARKETING OF PEANUTS OWNED OR CONTROLLED BY THE COMMODITY CREDIT CORPORATION- Any peanuts owned or controlled by the Commodity Credit Corporation may be made available for domestic edible use, in accordance with regulations issued by the Secretary, so long as doing so results in no net cost to the Commodity Credit Corporation.

`(5) LOCATION AND OTHER FACTORS- The Secretary may make adjustments for the location of peanuts and such other factors as are authorized by section 403.

`(6) ANNOUNCEMENT- The Secretary shall announce the level of support for each crop of peanuts not later than the February 15 preceding the marketing year for which the level of support is being determined.

`(b) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

`(c) CROPS- This section shall be effective for each of the 2002 and subsequent crops of peanuts.'.

SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2002 AND SUBSEQUENT CROPS OF PEANUTS.

(a) IN GENERAL- Part VI of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et seq.) is repealed.

(b) CONFORMING AMENDMENTS-

(1) DEFINITIONS- Section 301(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended--

(A) in paragraph (3)(A), by striking `corn, rice, and peanuts' and inserting `corn and rice';

(B) in paragraph (6), by striking subparagraph (C);

(C) in paragraph (10)(A)--

(i) by striking `wheat, and peanuts' and inserting `and wheat'; and

(ii) by striking `; 20 per centum in the case of wheat; and 15 per centum in the case of peanuts' and inserting `; and 20 percent in the case of wheat';

(D) in paragraph (13)--

(i) by striking subparagraphs (B) and (C); and

(ii) in subparagraph (G), by striking `or peanuts' both places it appears; and

(E) in paragraph (16)(A), by striking `rice, and peanuts' and inserting `and rice'.

(2) ADMINISTRATIVE PROVISIONS- Section 361 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is amended by striking `peanuts,'.

(3) ADJUSTMENT OF QUOTAS- Section 371 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1371) is amended--

(A) in the first sentence of subsection (a), by striking `peanuts,'; and

(B) in the first sentence of subsection (b), by striking `peanuts'.

(4) REPORTS AND RECORDS- Section 373 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373) is amended--

(A) in subsection (a), by striking the first sentence and inserting the following new sentence: `This subsection shall apply to warehousemen, processors, and common carriers of corn, wheat, cotton, rice, or tobacco, and all ginners of cotton, all persons engaged in the business of purchasing corn, wheat, cotton, rice, or tobacco from producers, and all persons engaged in the business of redrying, prizing, or stemming tobacco for producers.'; and

(B) in subsection (b), by striking `peanuts,'.

(5) REGULATIONS- Section 375(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1375(a)) is amended by striking `peanuts,'.

(6) EMINENT DOMAIN- The first sentence of section 378(c) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended by striking `cotton, tobacco, and peanuts,' and inserting `cotton and tobacco,'.

(c) LIABILITY- A provision of this section or an amendment made by this section shall not affect the liability of any person under any provision of law as in effect before the application of the provision of this section or the amendment in accordance with this section.

(d) APPLICATION- This section and the amendments made by this section shall apply beginning with the 2002 crop of peanuts.

SEC. 4. PURCHASE OF PEANUTS FOR NUTRITION PROGRAMS.

Section 14 of the National School Lunch Act (42 U.S.C. 1762a) is amended by adding at the end the following:

`(h) PURCHASE OF PEANUTS FOR NUTRITION PROGRAMS-

`(1) DEFINITIONS- In this subsection--

`(A) ADDITIONAL PEANUTS- The term `additional peanuts' has the meaning given the term in section 358-1(e) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(e)).

`(B) COVERED PROGRAM- The term `covered program' means--

`(i) a program established under this Act;

`(ii) a program established under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.);

`(iii) the emergency food assistance program established under the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.);

`(iv) the food distribution program on Indian reservations established under section 4(b) of the Food Stamp Act of 1977 (7 U.S.C. 2013(b));

`(v) the commodity distribution program established under section 4 of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note);

`(vi) the commodity supplemental food program established under section 5 of the Agriculture and Consumer Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note); and

`(vii) a nutrition program carried out under part C of title III of the Older Americans Act of 1965 (42 U.S.C. 3030e et seq.).

`(2) PURCHASES- Notwithstanding any other provision of law, in purchasing peanuts or peanut products to carry out a covered program, the Secretary shall--

`(A) purchase the peanuts or peanut products at a price that is not more than the prevailing world market price for peanuts or peanut products produced in the United States, as determined by the Secretary; and

`(B) in the case of peanut purchases, purchase only additional peanuts.

`(3) DOMESTIC EDIBLE USE- Notwithstanding any other provision of law, additional peanuts purchased by the Secretary to carry out a covered program shall not be considered to be peanuts for domestic edible use under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) or Agricultural Market Transition Act (7 U.S.C. 7201 et seq.).

`(4) SUPPLY- The Secretary shall take such actions as are necessary to ensure, to the maximum extent practicable, that an adequate supply of additional peanuts is available to carry out covered programs.

`(5) PENALTIES- Notwithstanding any other provision of law, a person that produces additional peanuts that are sold to the Secretary, or sells additional peanuts to the Secretary, for a covered program shall not be subject to a penalty or other sanction for the production or sale of the additional peanuts.'.

END