HR 2164 IH

107th CONGRESS

1st Session

H. R. 2164

To amend the Agricultural Market Transition Act to gradually reduce the loan rate for peanuts, to repeal peanut quotas for the 2004 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, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 13, 2001

Mr. SHAYS (for himself, Mr. KANJORSKI, Mr. KOLBE, Mr. TOOMEY, Mr. ENGLISH, Mr. MILLER of Florida, Mr. BASS, Mr. BARRETT of Wisconsin, Mr. SUNUNU, Mr. BORSKI, Mr. SMITH of New Jersey, Mr. SENSENBRENNER, Mr. LIPINSKI, Mr. KIRK, Mr. UPTON, Mr. SOUDER, Mr. GEKAS, Mr. FRELINGHUYSEN, Mr. BRADY of Pennsylvania, Mr. PALLONE, Mrs. ROUKEMA, Mr. BLUMENAUER, Mr. HUTCHINSON, Mrs. KELLY, Mr. ROHRABACHER, Mr. CRANE, Mr. WAMP, Mr. RYAN of Wisconsin, Mr. CAPUANO, Mrs. MALONEY of New York, Mrs. MORELLA, Mr. PITTS, Mr. GOSS, Mr. LUTHER, Mr. FRANK, Mr. ALLEN, Mr. KELLER, Mrs. BIGGERT, Mr. LOBIONDO, Mr. ROYCE, Mr. GUTIERREZ, and Mr. GEORGE MILLER of California) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

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.

(a) LOAN RATE REDUCTION- Subsection (a) of section 155 of the Agricultural Market Transition Act (7 U.S.C. 7271) is amended by striking paragraph (2) and inserting the following new paragraph:

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

`(A) $610 per ton for the 2001 crop.

`(B) $550 per ton for the 2002 crop.

`(C) $500 per ton for the 2003 crop.'.

(b) EXTENSION OF MARKETING ASSESSMENT- Subsection (g) of such section is amended by striking `2002' both places it appears and inserting `2003'.

(d) CONTINUED SUSPENSION OF CERTAIN PEANUT QUOTA PROVISIONS- The following provisions of the Agricultural Adjustment Act of 1938 shall not be applicable to the 2003 crops of peanuts:

(1) Subsections (a) through (j) of section 358 (7 U.S.C. 1358).

(2) Subsections (a) through (h) of section 358a (7 U.S.C. 1358a).

(3) Subsections (a), (b), (d), and (e) of section 358d (7 U.S.C. 1359).

(4) Part I of subtitle C of title III (7 U.S.C. 1361-1368).

SEC. 2. NONRECOURSE LOANS FOR 2004 AND SUBSEQUENT CROPS OF PEANUTS.

(a) LOAN PROGRAM- The Agricultural Market Transition Act is amended by inserting after section 155 (7 U.S.C. 7271) the following new section:

`SEC. 155A. PEANUT PROGRAM FOR 2004 AND SUBSEQUENT CROPS.

`(a) AVAILABILITY OF LOANS- The Secretary shall make nonrecourse loans available to producers of peanuts for each of the 2004 and subsequent crops of peanuts.

`(b) LOAN RATE-

`(1) IN GENERAL- Subject to paragraph (2), the Secretary shall offer nonrecourse loans to peanut producers under subsection (a) at a rate equal to 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.

`(2) MAXIMUM LOAN RATE- Notwithstanding paragraph (1), the loan rate under subsection (a) shall not exceed $350 per ton.

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

`(c) INSPECTION, HANDLING, OR STORAGE- The loan rate determined under subsection (b) for a crop of peanuts shall not be reduced by any deduction for inspection, handling, or storage.

`(d) LOCATION AND OTHER FACTORS- The Secretary may make adjustments in the loan rate determined under subsection (b) for the location of peanuts and such other factors as are authorized by section 403(a) of the Agricultural Act of 1949 (7 U.S.C. 1423).

`(e) NO NET COST REQUIREMENT- Loans under subsection (a) shall be administered at no net cost to the Commodity Credit Corporation.

`(f) MARKETING OF PEANUTS OWNED OR CONTROLLED BY 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.

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

(b) REPEAL OF OTHER PEANUT PRICE SUPPORT AUTHORITY- The Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended--

(1) in section 101(b) (7 U.S.C. 1441(b)), by striking `and peanuts'; and

(2) in section 408 (7 U.S.C. 1428)--

(A) in subsection (c), by striking `peanuts,'; and

(B) in subsection (d), by inserting before the period at the end the following: `or peanuts'.

SEC. 3. ELIMINATION OF PEANUT QUOTAS FOR 2004 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);

(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) EFFECTIVE DATE- The amendments made by this section shall take effect October 1, 2003, and shall apply with respect to the 2004 and subsequent crops 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