S 130 IS

To amend the Agricultural Market Transition Act to establish a flexible fallow program under which a producer may idle a portion of the total planted acreage of the loan commodities of the producer in exchange for higher loan rates for marketing assistance loans on the remaining acreage of the producer.

To amend the Agricultural Market Transition Act to establish a flexible fallow program under which a producer may idle a portion of the total planted acreage of the loan commodities of the producer in exchange for higher loan rates for marketing assistance loans on the remaining acreage of the producer.

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 `Food Security and Land Stewardship Act of 2001'.

SEC. 2. FLEXIBLE FALLOW PROGRAM.

(a) IN GENERAL- Section 132 of the Agricultural Market Transition Act (7 U.S.C. 7232) is amended by adding at the end the following:

`(g) FLEXIBLE FALLOW PROGRAM-

`(1) DEFINITION OF TOTAL PLANTED ACREAGE- In this subsection, the term `total planted acreage' means the cropland acreage of a producer that for the 2000 crop year was--

`(A) planted to a loan commodity;

`(B) prevented from being planted to a loan commodity; or

`(C) fallow as part of a fallow rotation practice with respect to a loan commodity, as determined by the Secretary.

`(2) AUTHORITY- In lieu of receiving a loan rate under subsections (a) through (f), a producer, with respect to production eligible for a loan under section 131, may elect to participate in a flexible fallow program for any of the 2001 or 2002 crops under which annually--

`(A) the producer determines which acres of the total planted acreage are assigned to a specific loan commodity;

`(B) the producer determines--

`(i) the projected percentage reduction rate of production of the specific loan commodity based on the acreage assigned to the loan commodity under subparagraph (A); and

`(ii) the acreage of the total planted acreage of the producer to be set aside under clause (i), regardless of whether the acreage is on the same farm as the acreage planted to the specific loan commodity;

`(C) based on the projected percentage reduction rate of production as a result of the acreage set aside under subparagraph (B), the producer receives the loan rate for each loan commodity produced by the producer, as determined under paragraph (3); and

`(D) the acreage planted to loan commodities for harvest and set aside under this subsection is limited to the total planted acreage of the producer.

`(3) LOAN RATES-

`(A) IN GENERAL- Subject to subparagraphs (B) and (C), in the case of a producer of a loan commodity that elects to participate in the flexible fallow program under this subsection, the loan rate for a marketing assistance loan under section 131 for a crop of the loan commodity shall be based on the projected percentage reduction rate of production determined by the producer under paragraph (2)(B), in accordance with the following table:

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`(B) COUNTY AVERAGE YIELDS-

`(i) IN GENERAL- The loan rate for a marketing assistance loan made to a producer for a crop of a loan commodity under subparagraph (A) shall apply with respect to the production of the crop of the loan commodity by the producer in a quantity that does not exceed the historical county average yield for the loan commodity established by the National Agricultural Statistics Service, adjusted for long-term yield trends.

`(ii) EXCESS PRODUCTION- The loan rate for a marketing assistance loan made to a producer for a crop of a loan commodity under subparagraph (A) with respect to the production of the crop of the loan commodity in excess of the historical county average yield for the loan commodity described in clause (i) shall be equal to the loan rate established for a 0% projected percentage reduction rate for the loan commodity under subparagraph (A).

`(iii) DISASTERS-

`(I) IN GENERAL- If the production of a crop of a loan commodity by a producer is less than the historical county average yield for the loan commodity described in clause (i) as a result of damaging weather, an insurable peril, or related condition, the producer may receive a payment on the lost production that shall equal the difference between--

`(bb) the quantity of loan commodity the producer was able to produce and commercially market.

`(II) CALCULATION OF PAYMENT- The payment described in subclause (I) shall be equal to the loan deficiency payment the producer could have received on the lost production on any date, selected by the producer, on which a loan deficiency payment was available for that crop of the loan commodity.

`(C) OTHER LOAN COMMODITIES- In the case of a producer of a loan commodity not covered by subparagraphs (A) and (B) that elects to participate in the flexible fallow program under this subsection, the loan rate for a marketing assistance loan under section 131 for the crop of the loan commodity shall be based on--

`(i) in the case of grain sorghum, barley, and oats, such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn;

`(ii) in the case of extra long staple cotton, such level as the Secretary determines is fair and reasonable; and

`(iii) in the case of oilseeds other than soybeans, such level as the Secretary determines is fair and reasonable in relation to the loan rate available for soybeans, except that the rate for the oilseeds (other than cottonseed) shall not be less than the rate established for soybeans on a per-pound basis for the same crop.

`(4) CONSERVATION USES-

`(A) IN GENERAL- Subject to subparagraph (C), to be eligible for a loan rate under this subsection, a producer shall--

`(i) devote all acreage set aside under this section to an annual conservation use approved by the Secretary; and

`(ii) manage the set-aside acreage using practices designed to enhance soil conservation and wildlife habitat.

`(B) LIMITED GRAZING- The Secretary may permit limited grazing on the set-aside acreage where the grazing is incidental to the gleaning of crop residues on adjacent fields.

`(C) OTHER CONTRACTS- A producer may enter into a contract that requires multiyear conservation uses of the set-aside acreage approved by the Secretary, including carbon sequestration and recreational uses.

`(5) CERTIFICATION- To be eligible to participate in the flexible fallow program for the 2001 or 2002 crops, a producer shall certify to the Secretary (by farm serial number) the total planted acreage assigned, planted, and set aside with respect to each loan commodity.'.

(b) CONFORMING AMENDMENTS- Section 132 of the Agricultural Market Transition Act (7 U.S.C. 7232) is amended--

(1) in subsection (a)(1)(B), by striking `$2.58' and inserting `$2.75'; and

(2) in subsection (f)(1), by striking subparagraph (B) and inserting the following:

`(B) not more than $4.72 per bushel.'.

(c) CROPS- This section and the amendments made by this section shall apply to each of the 2001 and 2002 crops of a loan commodity (as defined in section 102 of the Agricultural Market Transition Act (7 U.S.C. 7202)).