To respond to the continuing economic crisis adversely affecting American agricultural producers.

To respond to the continuing economic crisis adversely affecting American agricultural producers.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Crop Year 2001 Agricultural Economic Assistance Act'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I--AGRICULTURAL ASSISTANCE

Sec. 101. Market loss assistance.

Sec. 102. Oilseeds.

Sec. 103. Other commodities.

Sec. 104. Payments in lieu of loan deficiency payments for grazed acreage.

Sec. 105. Expansion of producers eligible for loan deficiency payments.

Sec. 106. Loan deficiency payments and marketing loan gains.

Sec. 107. Milk price support program.

TITLE II--ADMINISTRATION

Sec. 201. Regulations.

Sec. 202. Commodity Credit Corporation reimbursement.

Sec. 203. Technical corrections regarding existing cotton producer indemnity fund.

SEC. 101. MARKET LOSS ASSISTANCE.

(a) IN GENERAL- The Secretary of Agriculture (referred to in this Act as the `Secretary') shall use funds of the Commodity Credit Corporation to provide assistance in the form of a market loss assistance payment to owners and producers on a farm that are eligible for a final payment for fiscal year 2001 under a production flexibility contract for the farm under the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.).

(b) AMOUNT AND MANNER- In providing payments under this section, the Secretary shall--

(1) use the same contract payment rates as are used under section 802(b) of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2000 (7 U.S.C. 1421 note; Public Law 106-78); and

(2) provide the payments in a manner that is consistent with section 802(c) of that Act.

(c) TIMING- The Secretary shall make the payments required by this section not earlier than September 1, 2001, but not later than September 30, 2001.

SEC. 102. OILSEEDS.

(a) IN GENERAL- The Secretary shall use $500,000,000 of funds of the Commodity Credit Corporation to make payments to producers of the 2001 crop of oilseeds that are eligible to obtain a marketing assistance loan under section 131 of the Agricultural Market Transition Act (7 U.S.C. 7231).

(b) COMPUTATION- A payment to producers on a farm under this section for an oilseed shall be equal to the product obtained by multiplying--

(1) a payment rate determined by the Secretary;

(2) the acreage of the producers on the farm for the oilseed, as determined under subsection (c); and

(3) the yield of the producers on the farm for the oilseed, as determined under subsection (d).

(c) ACREAGE-

(1) IN GENERAL- Except as provided in paragraph (2), the acreage of the producers on the farm for an oilseed under subsection (b)(2) shall be equal to the number of acres planted to the oilseed by the producers on the farm during the 1998, 1999, or 2000 crop year, whichever is greatest, as reported by the producers on the farm to the Secretary (including any acreage reports that are filed late).

(2) NEW PRODUCERS- Except as provided in paragraph (3), in the case of producers on a farm that planted acreage to an oilseed during the 2001 crop year, but not the 1998, 1999, or 2000 crop year, the acreage of the producers for the oilseed under subsection (b)(2) shall be equal to the number of acres planted to the oilseed by the producers on the farm during the 2001 crop year, as reported by the producers on the farm to the Secretary (including any acreage reports that are filed late).

(d) YIELD-

(1) SOYBEANS- Except as provided in paragraph (3), in the case of soybeans, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greatest of--

(A) the average county yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the highest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 1998, 1999, or 2000 crop year.

(2) OTHER OILSEEDS- Except as provided in paragraph (3), in the case of oilseeds other than soybeans, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greatest of--

(A) the average national yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the highest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 1998, 1999, or 2000 crop year.

(3) NEW PRODUCERS- In the case of producers on a farm that planted acreage to an oilseed during the 2001 crop year but not the 1998, 1999, or 2000 crop year, the yield of the producers on a farm under subsection (b)(3) shall be equal to the greater of--

(A) the average county yield per harvested acre for each of the 1996 through 2000 crop years, excluding the crop year with the highest yield per harvested acre and the crop year with the lowest yield per harvested acre; or

(B) the actual yield of the producers on the farm for the 2001 crop.

(4) DATA SOURCE- To the maximum extent available, the Secretary shall use data provided by the National Agricultural Statistics Service to carry out this subsection.

(e) TIMING- The Secretary shall make the payments required by this section not earlier than October 1, 2001, but not later than September 30, 2002.

SEC. 103. OTHER COMMODITIES.

(a) SURPLUS SPECIALTY CROP PURCHASES-

(1) PURCHASES REQUIRED- The Secretary shall use $220,000,000 of funds of the Commodity Credit Corporation to purchase specialty crops that have experienced low prices during the 2000 or 2001 crop years, including apples, apricots, black-eyed peas, cherries, chickpeas, citrus, cranberries, dried plums, dry peas, grapefruit, lentils, melons, onions, peaches, pears, potatoes, raisins, and raspberries. The Secretary shall ensure that purchases of specialty crops under this subsection will not displace purchases by the Secretary under any other law.

(2) ASSISTANCE TO STATES- The Secretary may use up to $20,000,000 of the amount made available under paragraph (1) to provide assistance to States to cover costs incurred by the States in transporting and distributing the commodities purchased pursuant to such paragraph.

(3) TIMING- The Secretary shall make the purchases required by this subsection not earlier than October 1, 2001, but not later than September 30, 2002.

(b) PEANUTS- The Secretary shall use funds of the Commodity Credit Corporation to provide payments to producers of peanuts for the 2001 crop year. The amount of the payment made to producers on a farm shall be equal to the product obtained by multiplying--

(1) the quantity of peanuts actually produced by the producers on the farm; and

(2) a payment rate equal to $30.00 per ton.

(c) ANIMAL FIBER PRODUCTION- The Secretary shall use funds of the Commodity Credit Corporation to make payments to producers of wool, and producers of mohair, for the 2001 marketing year. The payment rate shall be equal to--

(1) in the case of wool, 20 cents per pound; and

(2) in the case of mohair, 40 cents per pound.

(d) SUGAR- Section 156(f) of the Agricultural Market Transition Act (7 U.S.C. 7272(f)) shall not apply with respect to the 2001 crop of sugar beets and sugarcane.

(e) TOBACCO-

(1) ADDITIONAL PAYMENT UNDER EXISTING AUTHORITY- The Secretary shall use $129,000,000 of funds of the Commodity Credit Corporation to make additional payments under section 204(b) of the Agricultural Risk Protection Act of 2000 (Public Law 106-224; 7 U.S.C. 1421 note) to eligible persons, as defined in paragraph (1)(A) of such section. The requirements applicable to the allocation of these funds among States, among farms in a State, and among eligible persons, as specified in paragraphs (3), (4), and (5) of such section, shall be adjusted by the Secretary to reflect the additional amount made available for payments under such section.

(2) TIMING- Notwithstanding the payment dates specified in section 204(b) of the Agricultural Risk Protection Act of 2000, of the amount made available under paragraph (1), the Secretary shall--

(A) expend $34,000,000 before September 30, 2001; and

(B) expend the remainder during the period beginning on October 1, 2001, and ending on September 30, 2002.

SEC. 104. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED ACREAGE.

(a) ELIGIBLE PRODUCERS- Effective for the 2002 crop year, in the case of a producer that would be eligible for a loan deficiency payment under section 135 of the Agricultural Market Transition Act (7 U.S.C. 7235) for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

(b) PAYMENT AMOUNT- The amount of a payment made to a producer on a farm under this section shall be equal to the amount determined by multiplying--

(1) the loan deficiency payment rate determined under section 135(c) of the Agricultural Market Transition Act (7 U.S.C. 7235(c)) in effect, as of the date of the agreement, for the county in which the farm is located; by

(2) the payment quantity determined by multiplying--

(A) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and

(B) the established yield for the crop on the farm, as determined by the Secretary.

(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT-

(1) TIME AND MANNER- A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 135 of the Agricultural Market Transition Act (7 U.S.C. 7235), except that the payment shall be made not later than September 30, 2002.

(2) AVAILABILITY- The Secretary shall establish an availability period for the payment authorized by this section that, subject to the date specified in paragraph (1), is consistent with the availability period for wheat, barley, and oats established by the Secretary for marketing assistance loans authorized by subtitle C of the Agricultural Market Transition Act (7 U.S.C. 7231 et seq.).

(d) PROHIBITION ON CROP INSURANCE COVERAGE- A 2002 crop of wheat, barley, or oats planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333).

(e) FUNDING- The Secretary shall use funds of the Commodity Credit Corporation to carry out this section.

SEC. 105. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFICIENCY PAYMENTS.

Section 135(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7235(a)(2)) is amended by striking `2000 crop year' and inserting `2000 and 2001 crop years'.

SEC. 106. LOAN DEFICIENCY PAYMENTS AND MARKETING LOAN GAINS.

(a) PAYMENT LIMITATIONS- Notwithstanding section 1001(2) of the Food Security Act of 1985 (7 U.S.C. 1308(1)), the total amount of the payments specified in section 1001(3) of that Act that a person shall be entitled to receive for one or more contract commodities and oilseeds under the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) during the 2001 crop year may not exceed $150,000.

(b) TREATMENT OF PRODUCERS WHO LOST BENEFICIAL INTEREST- The Secretary shall allow a producer that marketed or redeemed a quantity of an eligible 2001 crop for which the producer did not receive, either because of operation of section 1001(2) of the Food Security Act of 1985 (7 U.S.C. 1308(2)) or for any other reason, a loan deficiency payment or marketing loan gain under section 134 or 135 of the Agricultural Market Transition Act (7 U.S.C. 7234, 7235) before the quantity was marketed or redeemed to receive such payment or gain as of the date on which the quantity was marketed or redeemed.

SEC. 107. MILK PRICE SUPPORT PROGRAM.

(a) EXTENSION OF PROGRAM- Section 141 of the Agricultural Market Transition Act (7 U.S.C. 7251) is amended--

(1) in subsection (b), by adding at the end the following new paragraph:

`(5) During the period beginning on January 1, 2002, and ending on August 31, 2002, $9.90.'; and

(2) in subsection (h), by striking `December 31, 2001' both places it appears and inserting `August 31, 2002'.

(b) REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS- Section 142 of the Agricultural Market Transition Act (7 U.S.C. 7252(e)) is repealed.

SEC. 201. REGULATIONS.

(a) PROMULGATION- As soon as practicable after the date of the enactment of this Act, the Secretary and the Commodity Credit Corporation, as appropriate, shall promulgate such regulations as are necessary to implement this Act and the amendments made by this Act. The promulgation of the regulations and administration of this Act shall be made without regard to--

(1) the notice and comment provisions of section 553 of title 5, United States Code;

(2) the Statement of Policy of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of proposed rulemaking and public participation in rulemaking; and

(3) chapter 35 of title 44, United States Code (commonly known as the `Paperwork Reduction Act').

(b) CONGRESSIONAL REVIEW OF AGENCY RULEMAKING- In carrying out this section, the Secretary shall use the authority provided under section 808 of title 5, United States Code.

SEC. 202. COMMODITY CREDIT CORPORATION REIMBURSEMENT.

(a) REIMBURSEMENT REQUIREMENT- Out of any moneys in the Treasury not otherwise appropriated, the Secretary of the Treasury shall use such sums as may be necessary to reimburse the Commodity Credit Corporation for net realized losses sustained, but not previously reimbursed, under title I.

(b) TIMING-

(1) FISCAL YEAR 2001- The reimbursement required under subsection (a) shall be provided not later than September 30, 2001, to offset the losses of the Commodity Credit Corporation sustained on account of the Secretary's use of Commodity Credit Corporation funds--

(A) to provide market loss assistance under section 101; and

(B) to provide the payments required under section 103(e) before the deadline specified in paragraph (2)(A) of such section.

(2) FISCAL YEAR 2002- The reimbursement required under subsection (a) for other Commodity Credit Corporation losses sustained under title I shall be provided not earlier than October 1, 2001, but not later than September 30, 2002.

SEC. 203. TECHNICAL CORRECTIONS REGARDING EXISTING COTTON PRODUCER INDEMNITY FUND.

(a) CONDITIONS ON PAYMENT TO STATE- Subsection (b) of section 1121 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105-277 (7 U.S.C. 1421 note), and as amended by section 754 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (as enacted by Public Law 106-387; 114 Stat. 1549A-42), is amended to read as follows:

`(b) CONDITIONS ON PAYMENT TO STATE- The Secretary of Agriculture shall make the payment to the State of Georgia under subsection (a) only if the State--

`(1) contributes $5,000,000 to the indemnity fund and agrees to expend all amounts in the indemnity fund by not later than January 1, 2002 (or as soon as administratively practical thereafter), to provide compensation to cotton producers as provided in such subsection;

`(2) requires the recipient of a payment from the indemnity fund to repay the State, for deposit in the indemnity fund, the amount of any duplicate payment the recipient otherwise recovers for such loss of cotton, or the loss of proceeds from the sale

`(3) agrees to deposit in the indemnity fund the proceeds of any bond collected by the State for the benefit of recipients of payments from the indemnity fund, to the extent of such payments.'.

(b) ADDITIONAL DISBURSEMENTS FROM THE INDEMNITY FUND- Subsection (d) of such section is amended to read as follows:

`(d) ADDITIONAL DISBURSEMENT TO COTTON GINNERS- The State of Georgia shall use funds remaining in the indemnity fund, after the provision of compensation to cotton producers in Georgia under subsection (a) (including cotton producers who file a contingent claim, as defined and provided in section 5.1 of chapter 19 of title 2 of the Official Code of Georgia), to compensate cotton ginners (as defined and provided in such section) that--

`(1) incurred a loss as the result of--

`(A) the business failure of any cotton buyer doing business in Georgia; or

`(B) the failure or refusal of any such cotton buyer to pay the contracted price that had been agreed upon by the ginner and the buyer for cotton grown in Georgia on or after January 1, 1997, and had been purchased or contracted by the ginner from cotton producers in Georgia;

`(2) paid cotton producers the amount which the cotton ginner had agreed to pay for such cotton received from such cotton producers in Georgia; and

`(3) satisfy the procedural requirements and deadlines specified in chapter 19 of title 2 of the Official Code of Georgia applicable to cotton ginner claims.'.

(c) CONFORMING AMENDMENT- Subsection (c) of such section is amended by striking `Upon the establishment of the indemnity fund, and not later than October 1, 1999, the' and inserting `The'.