S 1628 IS
107th CONGRESS
1st Session
S. 1628
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
IN THE SENATE OF THE UNITED
STATES
November 2 (legislative day,
NOVEMBER 1), 2001
Mr. HARKIN introduced the following
bill; which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
A BILL
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
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 `Agriculture, Conservation, and Rural Enhancement Act
of 2001'.
(b) TABLE OF CONTENTS- The
table of contents of this Act is as follows:
Sec. 1. Short title; table
of contents.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Direct and Counter-Cyclical
Payments
Sec. 111. Authorization
for use of contracts.
Sec. 112. Elements of contracts.
Sec. 113. Payment yields.
Sec. 115. Direct payments.
Sec. 116. Counter-cyclical
payments.
Sec. 117. Producer agreements.
Sec. 118. Planting flexibility.
Sec. 119. Payment limitations.
Subtitle B--Loans and Loan Deficiency
Payments
Sec. 131. Availability of
marketing loans.
Sec. 132. Loan rates for
marketing loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency
payments.
Sec. 136. Special marketing
loan provisions for upland cotton.
Sec. 137. Special competitive
provisions for extra long staple cotton.
Sec. 138. High moisture
feed grains.
Sec. 140. Producer election
for 2002 crop.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 151. Milk price support
program.
Sec. 152. Dairy export incentive
and dairy indemnity programs.
Sec. 153. Fluid milk promotion.
Sec. 154. Dairy product
mandatory reporting.
Sec. 155. Funding of dairy
promotion and research program.
Chapter 2--Sugar
Sec. 162. Storage facility
loans.
Sec. 163. Flexible marketing
allotments for sugar.
Chapter 3--Peanuts
Sec. 171. Peanut program.
Subtitle D--Administration
Sec. 181. Administration.
Sec. 182. Commodity Credit
Corporation sales price restrictions.
Sec. 183. Commodity certificates.
Sec. 184. Assignment of
payments.
Sec. 185. Suspension of
price support authority.
Sec. 186. Conforming amendments.
Sec. 187. Effect of amendments.
Subtitle E--Miscellaneous Commodity
Provisions
Sec. 191. Risk management
education.
Sec. 192. Administration
and operation of noninsured crop assistance program.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 201. Conservation security
program.
Sec. 203. Partnerships and
cooperation.
Sec. 204. Administrative
requirements for conservation programs.
Sec. 205. Reform and consolidation
of conservation programs.
Sec. 206. Conservation security
program regulations.
Sec. 207. Conforming amendments.
Subtitle B--Program Extensions
Sec. 211. Comprehensive
conservation enhancement program.
Sec. 212. Conservation reserve
program.
Sec. 213. Wetlands reserve
program.
Sec. 214. Environmental
quality incentives program.
Sec. 215. Resource conservation
and development program.
Sec. 216. Wildlife habitat
incentive program.
Sec. 217. Agricultural land
protection program.
Sec. 218. Grassland reserve
program.
Sec. 219. State technical
committees.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
Sec. 301. United States
policy.
Sec. 302. Provision of agricultural
commodities.
Sec. 303. Generation and
use of foreign currencies by private voluntary organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative
Group.
Sec. 306. Maximum level
of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for
stockpiling and rapid transportation, delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient
fortification pilot program.
Sec. 313. International
food for education and child nutrition.
Sec. 314. Farmer-to-farmer
program.
Sec. 315. Bill Emerson Humanitarian
Trust.
Sec. 316. Food for progress.
Sec. 317. Tropical forest
conservation.
Subtitle B--Agricultural Trade
Act of 1978
Sec. 321. Export credit
guarantee program.
Sec. 322. Market access
program.
Sec. 323. Export enhancement
program.
Sec. 324. Foreign market
development cooperator program.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
Sec. 331. Emerging markets.
Sec. 332. Reports on inspection
of imported meat, poultry, other foods, animals, and plants.
Sec. 333. Surplus commodities
for developing or friendly countries.
Sec. 334. Agricultural trade
with Cuba.
Sec. 335. Office of Trade
Barrier Rapid Response.
Sec. 336. Sense of Congress
concerning agricultural trade policy objectives.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 411. Encouragement
of payment of child support.
Sec. 412. Simplified definition
of income.
Sec. 413. Increase in benefits
to households with children.
Sec. 414. Simplified determination
of housing costs.
Sec. 415. Simplified utility
allowance.
Sec. 416. Simplified procedure
for determination of earned income.
Sec. 417. Simplified definition
of resources.
Sec. 418. Alternative issuance
systems in disasters.
Sec. 419. State option to
reduce reporting requirements.
Sec. 420. Benefits for adults
without dependents.
Sec. 421. Preservation of
access to electronic benefits.
Sec. 422. Cost neutrality
for electronic benefit transfer systems.
Sec. 423. Alternative procedures
for residents of certain group facilities.
Sec. 424. Availability of
food stamp program applications on the Internet.
Sec. 425. Simplified determinations
of continuing eligibility.
Sec. 426. Clearinghouse
for successful nutrition education efforts.
Sec. 427. Transitional food
stamps for families moving from welfare.
Sec. 428. Reform of quality
control system.
Sec. 429. Improvement of
calculation of State performance measures.
Sec. 430. High performance
bonus payments to States.
Sec. 431. Employment and
training program.
Sec. 432. Reauthorization
of food stamp program and food distribution program on Indian reservations.
Sec. 433. Coordination of
program information efforts.
Sec. 434. Expanded grant
authority.
Sec. 435. Access and outreach
pilot projects.
Sec. 436. Consolidated block
grants and administrative funds.
Sec. 437. Assistance for
community food projects.
Sec. 438. Availability of
commodities for the emergency food assistance program.
Sec. 439. Innovative programs
for addressing common community problems.
Sec. 440. Report on use
of electronic benefit transfer systems.
Sec. 441. Vitamin and mineral
supplements.
Subtitle B--Miscellaneous Provisions
Sec. 451. Reauthorization
of commodity programs.
Sec. 452. Restoration of
benefits to legal immigrants.
Sec. 453. Fruit and vegetable
pilot program.
Sec. 454. Congressional
Hunger Fellows Program.
Sec. 455. Effective date.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
Sec. 502. Financing of bridge
loans.
Sec. 503. Limitations on
amount of farm ownership loans.
Sec. 504. Joint financing
arrangements.
Sec. 505. Guarantee percentage
for beginning farmers and ranchers.
Sec. 506. Guarantee of loans
made under State beginning farmer or rancher programs.
Sec. 507. Down payment loan
program.
Sec. 508. Beginning farmer
and rancher contract land sales program.
Subtitle B--Operating Loans
Sec. 512. Amount of guarantee
of loans for tribal farm operations; waiver of limitations for tribal farm
operations and other farm operations.
Subtitle C--Administrative Provisions
Sec. 521. Eligibility of
limited liability companies for farm ownership loans, farm operating loans,
and emergency loans.
Sec. 522. Debt settlement.
Sec. 523. Temporary authority
to enter into contracts; private collection agencies.
Sec. 524. Interest rate
options for loans in servicing.
Sec. 525. Annual review
of borrowers.
Sec. 526. Simplified loan
applications.
Sec. 527. Inventory property.
Sec. 529. Loan authorization
levels.
Sec. 530. Interest rate
reduction program.
Sec. 531. Options for satisfaction
of obligation to pay recapture amount for shared appreciation agreements.
Sec. 532. Waiver of borrower
training certification requirement.
Sec. 533. Annual review
of borrowers.
Subtitle D--Farm Credit
Sec. 541. Repeal of burdensome
approval requirements.
Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation
premiums.
Sec. 544. Board of Directors
of the Federal Agricultural Mortgage Corporation.
Subtitle E--General Provisions
Sec. 551. Inapplicability
of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Empowerment of Rural
America
Sec. 601. National Rural
Cooperative and Business Equity Fund.
Sec. 602. Rural business
investment program.
Sec. 603. Full funding of
pending rural development loan and grant applications.
Sec. 604. Rural Endowment
Program.
Sec. 605. Enhancement of
access to broadband service in rural areas.
Sec. 606. Value-added agricultural
product market development grants.
Subtitle B--National Rural Development
Partnership
Sec. 612. National Rural
Development Partnership.
Subtitle C--Consolidated Farm
and Rural Development Act
Sec. 621. Water or waste
disposal grants.
Sec. 622. Rural business
opportunity grants.
Sec. 623. Rural water and
wastewater circuit rider program.
Sec. 624. Multijurisdictional
regional planning organizations.
Sec. 625. Certified nonprofit
organizations sharing expertise.
Sec. 626. Loan guarantees
for certain rural development loans.
Sec. 627. Rural firefighters
and emergency personnel grant program.
Sec. 628. Emergency community
water assistance grant program.
Sec. 629. Water and waste
facility grants for Native American tribes.
Sec. 630. Water systems
for rural and native villages in Alaska.
Sec. 631. Business and industry
direct and guaranteed loans.
Sec. 632. Rural cooperative
development grants.
Sec. 633. Value-added intermediary
relending program.
Sec. 634. Use of rural development
loans and grants for other purposes.
Sec. 635. Simplified application
forms for loan guarantees.
Sec. 636. Rural entrepreneurs
and microenterprise assistance program.
Sec. 638. Rural telework.
Sec. 639. Historic barn
preservation.
Sec. 640. Delta Regional
Authority.
Sec. 641. SEARCH grants
for small communities.
Sec. 642. Northern Great
Plains Regional Authority.
Subtitle D--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 651. Alternative Agricultural
Research and Commercialization Corporation.
Sec. 652. Telemedicine and
distance learning services in rural areas.
Subtitle E--Rural Electrification
Act of 1936
Sec. 661. Guarantees for
bonds and notes issued for electrification or telephone purposes.
Sec. 662. Expansion of 911
access.
Subtitle F--Effective Date
Sec. 671. Effective date.
TITLE VII--AGRICULTURAL RESEARCH,
EDUCATION, AND EXTENSION AND RELATED MATTERS
Subtitle A--National Agricultural
Research, Extension, and Teaching Policy Act of 1977
Sec. 702. National Agricultural
Research, Extension, Education, and Economics Advisory Board.
Sec. 703. Grants and fellowships
for food and agricultural sciences education.
Sec. 704. Grants for research
on the production and marketing of alcohols and industrial hydrocarbons
from agricultural commodities and forest products.
Sec. 705. Policy research
centers.
Sec. 706. Human nutrition
intervention and health promotion research program.
Sec. 707. Pilot research
program to combine medical and agricultural research.
Sec. 708. Nutrition education
program.
Sec. 709. Animal health
and disease research programs.
Sec. 710. Research on national
or regional problems.
Sec. 711. Education grants
programs for Hispanic-serving institutions.
Sec. 712. Competitive grants
for international agricultural science and education programs.
Sec. 713. Indirect costs.
Sec. 714. Research equipment
grants.
Sec. 715. Agricultural research
programs.
Sec. 716. Extension education.
Sec. 717. Special authorization
for biosecurity planning and response.
Sec. 718. Availability of
competitive grant funds.
Sec. 719. Joint requests
for proposals.
Sec. 720. Supplemental and
alternative crops.
Sec. 722. Rangeland research.
Subtitle B--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 731. National genetic
resources program.
Sec. 732. Biotechnology
risk assessment research.
Sec. 733. High-priority
research and extension initiatives.
Sec. 734. Nutrient management
research and extension initiative.
Sec. 735. Organic agriculture
research and extension initiative.
Sec. 736. Agricultural telecommunications
program.
Sec. 737. Assistive technology
program for farmers with disabilities.
Subtitle C--Agricultural Research,
Extension, and Education Reform Act of 1998
Sec. 741. Initiative for
Future Agriculture and Food Systems.
Sec. 742. Partnerships for
high-value agricultural product quality research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson
Initiative for Crop Diversification.
Sec. 746. Integrated research,
education, and extension competitive grants program.
Sec. 747. Support for research
regarding diseases of wheat and barley caused by fusarium graminearum.
Sec. 748. Office of Pest
Management Policy.
Subtitle D--Land-Grant Funding
Chapter 1--1862 Institutions
Sec. 752. Reporting of technology
transfer activities.
Sec. 753. Compliance with
multistate and integration requirements.
Chapter 2--1994 Institutions
Sec. 754. Extension at 1994
Institutions.
Sec. 755. Equity in Educational
Land-Grant Status Act of 1994.
Sec. 756. Eligibility for
integrated grants program.
Chapter 3--1890 Institutions
Sec. 757. Authorization
percentages for research and extension formula funds.
Sec. 759. Reporting of technology
transfer activities.
Sec. 760. Grants to upgrade
agricultural and food sciences facilities at 1890 land-grant colleges,
including Tuskegee University.
Sec. 761. National research
and training centennial centers.
Sec. 762. Matching funds
requirement for research and extension activities.
Chapter 4--Land-grant Institutions
SUBCHAPTER A--GENERAL
Sec. 771. Priority-setting
process.
SUBCHAPTER B--LAND-GRANT INSTITUTIONS
IN INSULAR AREAS
Sec. 775. Distance education
grants program for insular area land-grant institutions.
Sec. 776. Matching requirements
for research and extension formula funds for insular area land-grant institutions.
Sec. 777. Education grants
for Pacific Islander serving institutions.
Subtitle E--Other Laws
Sec. 781. Critical agricultural
materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural
research facilities.
Sec. 784. Competitive, special,
and facilities research grants.
Sec. 785. Risk management
education for beginning farmers and ranchers.
Subtitle F--New Authorities
Sec. 792. Regulatory and
inspection research.
Sec. 793. Emergency research
transfer authority.
Sec. 794. Review of Agricultural
Research Service.
Sec. 795. Technology transfer
for rural development.
Sec. 796. Beginning farmer
and rancher development program.
Sec. 797. Sense of Congress
regarding doubling of funding for agricultural research and increasing
capacity for research on biosecurity and animal and plant health diseases.
Sec. 798. Rural policy research.
Sec. 798A. Priority for
farmers and ranchers participating in conservation programs.
Sec. 798B. Organic production
and market data initiatives.
Subtitle G--Administration
Sec. 799. Effect of amendments.
TITLE VIII--FORESTRY
Sec. 801. Office of International
Forestry.
Sec. 802. Mcintire-Stennis
cooperative forestry research program.
Sec. 803. Sustainable forestry
outreach initiative; renewable resources extension activities.
Sec. 804. Forestry incentives
program.
Sec. 805. Sustainable forestry
cooperative program.
Sec. 806. Sustainable forest
management program.
Sec. 807. Enhanced community
fire protection.
Sec. 808. Watershed forestry
assistance program.
Sec. 809. General provisions.
Sec. 810. State forest stewardship
coordinating committees.
TITLE IX--ENERGY
Sec. 902. Consolidated Farm
and Rural Development Act.
Sec. 903. Biomass Research
and Development Act of 2000.
Sec. 904. Sense of Congress
concerning a national renewable fuels standard.
Sec. 905. Rural Electrification
Act of 1936.
TITLE X--AGRICULTURAL COMPETITION
Subtitle A--Agricultural Fair
Practices
Sec. 1001. Agricultural
fair practices.
Subtitle B--Packers and Stockyards
Sec. 1011. Investigation
of live poultry dealers.
Sec. 1012. Appointment of
outside counsel.
Subtitle C--Country of Origin
Labeling
Sec. 1021. Country of origin
labeling.
Subtitle D--Referenda on Continuation
of Commodity Promotion Programs
Sec. 1031. Referenda on
continuation of commodity promotion programs.
Subtitle E--Perishable Agricultural
Commodities
Sec. 1041. Disciplinary
violations.
TITLE XI--MISCELLANEOUS
Sec. 1101. Cotton classification
services.
Sec. 1102. Availability
of section 32 funds.
Sec. 1103. Pseudorabies
eradication program.
Sec. 1104. Collection and
use of agricultural quarantine and inspection fees.
Sec. 1105. Commodity purchases.
Sec. 1106. Seniors farmers'
market nutrition program.
Sec. 1107. National organic
certification cost-share program.
TITLE I--COMMODITY PROGRAMS
SEC. 101. DEFINITIONS.
In this title (other than
chapter 3 of subtitle C):
(1) BASE ACRES- The term
`base acres' means the base acres established under section 114 for a covered
commodity for a farm.
(2) CONSIDERED PLANTED-
The term `considered planted' means any acreage on the farm that--
(A) producers on a farm
were prevented from planting to a crop because of drought, flood, or other
natural disaster, or other condition beyond the control of the producers
on the farm, as determined by the Secretary; and
(B) was not planted to another
covered commodity.
(3) CONTRACT- The term `contract'
means a contract entered into under section 111.
(4) CONTRACT PAYMENT- The
term `contract payment' means a direct payment and a counter-cyclical payment.
(5) COUNTER-CYCLICAL PAYMENT-
The term `counter-cyclical payment' means a payment made to producers on
a farm under section 116.
(6) COVERED COMMODITY- The
term `covered commodity' means wheat, corn, grain sorghum, barley, oats,
upland cotton, rice, and oilseeds.
(7) DEPARTMENT- The term
`Department' means the Department of Agriculture.
(8) DIRECT PAYMENT- The
term `direct payment' means a payment made to producers on a farm under
section 115.
(9) EXTRA LONG STAPLE COTTON-
The term `extra long staple cotton' means cotton that--
(A) is produced from pure
strain varieties of the Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated by the Secretary,
having characteristics needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated cotton-growing regions
of the United States designated by the Secretary or other areas designated
by the Secretary as suitable for the production of the varieties or types;
and
(B) is ginned on a roller-type
gin or, if authorized by the Secretary, ginned on another type gin for
experimental purposes.
(10) LOAN COMMODITY- The
term `loan commodity' means each contract commodity, extra long staple
cotton, wool, mohair, honey, dry peas, lentils, and chickpeas.
(11) OILSEED- The term `oilseed'
means soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, or, if designated by the Secretary, another oilseed.
(12) PAYMENT YIELD- The
term `payment yield' means the yield established under section 113 for
a farm for a covered commodity.
(A) IN GENERAL- The term
`producer' means an owner, operator, landlord, tenant, or sharecropper
that--
(i) shares in the risk of
producing a crop;
(ii) is entitled to share
in the crop available for marketing from a farm or would have shared had
the crop been produced; and
(iii) makes contributions
of land, labor, management, equipment, and capital to the operation of
the farm that are at least commensurate with the producer's share of the
proceeds of the operation.
(B) HYBRID SEED- In determining
whether a grower of hybrid seed is a producer, the Secretary--
(i) shall not take into
consideration the existence of a hybrid seed contract; and
(ii) shall ensure that program
requirements do not adversely affect the ability of the grower to receive
a payment under this title.
(14) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
(15) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.
Subtitle A--Direct and Counter-Cyclical
Payments
SEC. 111. AUTHORIZATION FOR
USE OF CONTRACTS.
(a) IN GENERAL- The Secretary
shall offer to enter into a contract with eligible producers on a farm
containing eligible cropland to receive contract payments.
(1) IN GENERAL- Subject
to paragraph (2), a producer (as defined in section 101) shall be eligible
to enter into a contract.
(A) SHARE-RENT TENANTS-
A producer on eligible cropland that is a tenant with a share-rent lease
of the eligible cropland, regardless of the length of the lease shall be
eligible to enter into a contract, if the owner of the eligible cropland
enters into the same contract.
(i) CONTRACTS WITH LONG-TERM
LEASES- A producer on eligible cropland that cash rents the eligible cropland
under a lease expiring on or after the termination of the contract shall
be eligible to enter into a contract.
(ii) CONTRACTS WITH SHORT-TERM
LEASES-
(I) IN GENERAL- A producer
that cash rents the eligible cropland under a lease expiring before the
termination of the contract shall be eligible to enter into a contract.
(II) OWNER'S CONTRACT INTEREST-
The owner of the eligible cropland may also enter into the same contract.
(III) CONSENT OF OWNER-
If the producer elects to enroll less than 100 percent of the eligible
cropland in the contract, the consent of the owner shall be required for
a valid contract.
(iii) CONTRACTS WITH OWNERS-
An owner of eligible cropland that cash rents the eligible cropland under
a lease with a term that expires before the end of the 2006 crop year shall
be eligible to enter into a contract after the lease expires.
(1) IN GENERAL- Land shall
be considered to be cropland eligible for coverage under a contract only
if the land--
(A) has with respect to
a covered commodity--
(i) base acres attributable
to the land under section 114; and
(ii) a payment yield under
section 113; or
(B) was subject to a conservation
reserve contract under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) whose term expired, or was voluntarily terminated, on or after
the date of enactment of this Act.
(2) QUANTITY OF ELIGIBLE
CROPLAND COVERED BY CONTRACT- An eligible producer may enroll as contract
acreage all or a portion of the eligible cropland on the farm.
(3) VOLUNTARY REDUCTION
IN CONTRACT ACREAGE- An eligible producer that enters into a contract may
subsequently reduce the quantity of contract acreage covered by the contract.
(d) PROTECTION OF INTERESTS
OF CERTAIN PRODUCERS-
(1) TENANTS AND SHARECROPPERS-
In carrying out this subtitle, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(2) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of contract payments among
the eligible producers on a farm on a fair and equitable basis.
SEC. 112. ELEMENTS OF CONTRACTS.
(a) TIME FOR CONTRACTING-
(1) COMMENCEMENT- To the
extent practicable, the Secretary shall commence entering into contracts
not later than 45 days after the date of enactment of this Act.
(2) DEADLINE- Except as
provided in paragraph (3), the Secretary may not enter into a contract
after the date that is 180 days after the date of enactment of this Act.
(3) CONSERVATION RESERVE
LAND-
(A) IN GENERAL- At the beginning
of each fiscal year, the Secretary shall allow an eligible producer on
a farm covered by a conservation reserve contract entered into under section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) that terminates
after the date specified in paragraph (2) to enter into or expand a contract
to cover the eligible cropland of the farm that was subject to the former
conservation reserve contract.
(B) AMOUNT- Contract payments
made for eligible cropland under this paragraph shall be made at the rate
and amount determined by the Secretary consistent with this subtitle.
(b) DURATION OF CONTRACT-
(1) BEGINNING DATE- The
term of a contract shall begin with--
(A) the 2002 crop of a contract
commodity; or
(B) in the case of acreage
that was subject to a conservation reserve contract described in subsection
(a)(3), the date the contract was entered into or expanded to cover the
acreage.
(2) ENDING DATE- The term
of a contract shall extend through the 2006 crop, unless earlier terminated
by the producer.
SEC. 113. PAYMENT YIELDS.
(a) IN GENERAL- Subject
to subsection (b), the payment yield for each of the 2002 through 2006
crops of a covered commodity for a farm shall be the greater of--
(1) the average of the yield
per harvested acre for the crop of the covered commodity for the farm for
the 1998 through 2001 crop years, excluding--
(A) any crop year for which
the producers on the farm did not plant the covered commodity; and
(B) at the option of the
producers on the farm, 1 additional crop year; or
(2) the farm program payment
yield that would have been established for the producers on the farm for
the 2002 crop of the covered commodity under title I of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.).
(b) ASSIGNED YIELDS- In
the case of a farm for which a payment yield is unavailable for a covered
commodity, the Secretary shall establish an appropriate payment yield for
the covered commodity on the farm taking in consideration the payment yields
applicable to the covered commodity under subsection (a) for similar farms
in the area.
SEC. 114. BASE ACRES.
(a) IN GENERAL- Subject
to subsection (b), the base acres on a farm shall be equal to the average
of the acreage planted and considered planted to the crop of each covered
commodity for harvest on the farm during each of the 1998 through 2001
crop years.
(b) TREATMENT OF CONSERVATION
RESERVE CONTRACT ACREAGE-
(1) IN GENERAL- The Secretary
shall provide for an adjustment in the base acres for a farm whenever either
of the following circumstances occur:
(A) A conservation reserve
contract entered into under section 1231 of the Food Security Act of 1985
(16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated.
(B) Cropland is released
from coverage under a conservation reserve contract by the Secretary.
(2) ELECTION- For the fiscal
year and crop year in which a base acre adjustment under paragraph (1)
is first made, the producers on the farm shall elect to receive--
(A) contract payments with
respect to the acreage added to the farm under this subsection; or
(B) a prorated payment under
the conservation reserve contract.
(c) PREVENTION OF EXCESS
BASE ACRES-
(1) REQUIRED REDUCTION-
If the sum of the base acres for a farm, together with the acreage described
in paragraph (2), exceeds the actual cropland acreage of the farm, the
Secretary shall reduce the quantity of base acres for 1 or more covered
commodities for the farm as necessary so that the sum of the base acres
and acreage described in paragraph (2) does not exceed the actual cropland
acreage of the farm.
(2) OTHER ACREAGE- For purposes
of paragraph (1), the Secretary shall include--
(A) any acreage on the farm
enrolled in the conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.); and
(B) any other acreage on
the farm enrolled in a voluntary conservation program under which production
of any agricultural commodity is prohibited.
(3) DOUBLE-CROPPED ACREAGE-
In applying paragraph (1), the Secretary shall take into account additional
acreage as a result of an established double-cropping history on a farm,
as determined by the Secretary.
SEC. 115. DIRECT PAYMENTS.
(a) IN GENERAL- For each
of the 2003 through 2006 fiscal years, the Secretary shall make direct
payments available to producers on a farm that have entered into a contract
under section 111.
(b) PAYMENT AMOUNT- The
amount of a direct payment to be paid to the producers on a farm for a
covered commodity for a fiscal year shall be obtained by multiplying--
(1) the payment rate specified
in subsection (c);
(2) the base acres for the
covered commodity on the farm; and
(3) the payment yield for
the covered commodity for the farm.
(c) PAYMENT RATE- The payment
rates used to make direct payments with respect to covered commodities
for a fiscal year are as follows:
(1) Wheat, $0.247 per bushel.
(2) Corn, $0.150 per bushel.
(3) Grain sorghum, $0.170
per bushel.
(4) Barley, $0.177 per bushel.
(5) Oats, $0.127 per bushel.
(6) Upland cotton, $0.046
per pound.
(7) Rice, $0.590 per hundredweight.
(8) Soybeans, $0.250 per
bushel.
(9) Oilseeds (other than
soybeans), $0.0057 per pound.
(d) TIME FOR PAYMENT- The
Secretary shall make direct payments for each of the 2003 through 2006
fiscal years not later than September 30 of the fiscal year.
SEC. 116. COUNTER-CYCLICAL PAYMENTS.
(a) TARGET AND TOTAL REVENUES-
(1) IN GENERAL- For each
of the 2002 through 2006 crop years, the Secretary shall make counter-cyclical
payments to producers on farms of a covered commodity if--
(A) the total revenue per
planted acre of a covered commodity for the crop year determined under
paragraph (3); is less than
(B) the target revenue per
planted acre of the covered commodity determined under paragraph (2).
(A) IN GENERAL- Subject
to subparagraph (B), the target revenue per planted acre of the covered
commodity shall be as follows:
(i) Wheat, $120.00 per planted
acre.
(ii) Corn, $272.00 per planted
acre.
(iii) Grain sorghum, $130.00
per planted acre.
(iv) Barley, $122.00 per
planted acre.
(v) Oats, $46.00 per planted
acre.
(vi) Upland cotton, $360.00
per planted acre.
(vii) Rice, $475.00 per
planted acre.
(viii) Soybeans, $215.00
per planted acre.
(ix) Oilseeds (other than
soybeans), $133.00 per planted acre.
(B) ADJUSTMENT- For each
of the 2003 through 2006 crop years, not later than December 31 of the
applicable year, the Secretary shall adjust the target revenue per planted
acre of a covered commodity to reflect changes in the Prices Paid by Farmers
Index, as determined by the Secretary, since the 2002 calendar year.
(A) IN GENERAL- For each
of the 2002 through 2006 crop years, the Secretary shall determine the
total revenue per planted acre of a covered commodity for the crop year.
(B) AMOUNT- The amount of
total revenue per planted acre from each covered commodity for a crop year
shall equal--
(i) the amount obtained
by multiplying--
(I) the average price received
by all farms for the crop of the covered commodity produced, as determined
under subparagraph (C); by
(II) the quantity of the
crop of the covered commodity produced by all farms; divided by
(ii) the number of acres
planted or considered to the covered commodity.
(C) AVERAGE PRICE- The average
price of each covered commodity produced under subparagraph (B)(i) for
a crop year shall equal the greater of--
(i) the loan rate for the
crop of the covered commodity established under section 132; or
(ii) the simple average
price received for the crop of the covered commodity for the marketing
year for the crop.
(b) COUNTER-CYCLICAL PAYMENTS
TO PRODUCERS-
(1) IN GENERAL- If the total
revenue per planted acre of a covered commodity for a crop year is less
than the target revenue per planted acre of the covered commodity, the
Secretary shall make payments to eligible producers on a farm of the covered
commodity.
(2) AMOUNT- The amount of
the payments made to eligible producers on a farm for a crop year under
this subsection shall equal the amount obtained by multiplying--
(A) the payment rate for
the covered commodity for the crop year determined under subsection (c);
by
(B) the payment quantity
for the covered commodity for the farm for the crop year determined under
subsection (d).
(1) IN GENERAL- The payment
rate for a covered commodity for a crop year under subsection (b)(2)(A)
shall equal--
(A) the revenue deficiency
of the covered commodity for the crop year determined under paragraph (2);
divided by
(B) the total contract production
of the covered commodity for the crop year determined under paragraph (3).
(A) IN GENERAL- The amount
of the revenue deficiency for a covered commodity for a crop year under
paragraph (1)(A) shall equal the difference between--
(i) the target revenue from
the covered commodity for all farms determined under subparagraph (B);
and
(ii) the total revenue from
the covered commodity derived for all farms for a crop year determined
under subparagraph (C).
(B) TARGET REVENUE FOR ALL
FARMS- The target revenue for a covered commodity for all farms for a crop
year shall equal the amount obtained by multiplying--
(i) the target revenue per
acre for the covered commodity determined under subsection (a)(2); by
(ii) the base acres attributable
to the covered commodity.
(C) TOTAL REVENUE FOR ALL
FARMS- The total revenue for a covered commodity for all farms for a crop
year shall equal the amount obtained by multiplying--
(i) the total revenue per
acre for the covered commodity determined under subsection (a)(3); by
(ii) the base acres attributable
to the covered commodity.
(3) TOTAL CONTRACT PRODUCTION-
The contract production of a covered commodity for all farms for a crop
year under paragraph (1)(B) shall equal the amount obtained by multiplying--
(A) the base acres attributable
to the covered commodity for all farms that are covered by a contract;
by
(B) the average payment
yield for all farms for the covered commodity determined under section
113.
(d) PAYMENT QUANTITY- The
payment quantity for the covered commodity for the farm for the crop year
under subsection (b)(2)(B) shall equal the amount obtained by multiplying--
(1) the base acres attributable
to the covered commodity for the farm; by
(2) the payment yield established
under section 113 for the farm for a covered commodity.
(A) IN GENERAL- At the option
of the producers on a farm, the Secretary shall pay 50 percent of the estimated
counter-cyclical payment for a crop of a covered commodity for the producers
on the farm on a date determined by the Secretary that is not later than
180 days after the beginning of the marketing year for the covered commodity.
(B) OVERESTIMATED PAYMENTS-
If the amount of the estimated counter-cyclical payment paid to producers
on a farm for a crop of a covered commodity under subparagraph (A) exceeds
the total amount of the counter-cyclical payment that is payable to the
producers on the farm for the crop of the covered commodity under subsection
(b)(2), the producers on the farm shall not be required to repay to the
Secretary the amount of any overpayment.
(2) FINAL PAYMENT- The Secretary
shall pay the final amount of the counter-cyclical payment that is payable
to the producers on a farm for the crop of a covered commodity under subsection
(b)(2) (less the amount of any initial payment made to the producers on
the farm for the crop of the covered commodity under paragraph (1)) during
the period beginning 31 days, and ending 60 days, after the end of the
marketing year for the covered commodity.
SEC. 117. PRODUCER AGREEMENTS.
(a) COMPLIANCE WITH CERTAIN
REQUIREMENTS- Before the producers on a farm may receive contract payments
with respect to the farm, the producers on the farm shall agree during
the fiscal year or crop year, as applicable, for which the payments are
received, in exchange for the payments--
(1) to comply with applicable
highly erodible land conservation requirements under subtitle B of title
XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
(2) to comply with applicable
wetland conservation requirements under subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);
(3) to comply with the planting
flexibility requirements of section 118; and
(4) to use a quantity of
land on the farm equal to the base acres, for an agricultural or conserving
use, and not for a nonagricultural commercial or industrial use, as determined
by the Secretary.
(1) IN GENERAL- The Secretary
shall not require the producers on a farm to repay a contract payment if
the farm has been foreclosed on and the Secretary determines that forgiving
the repayment is appropriate to provide fair and equitable treatment.
(2) COMPLIANCE WITH REQUIREMENTS-
(A) IN GENERAL- This subsection
shall not void the responsibilities of the producers on a farm under subsection
(a) if the producers on the farm continue or resume operation, or control,
of the farm.
(B) APPLICABLE REQUIREMENTS-
On the resumption of operation or control over the farm by the producers
on the farm, the requirements of subsection (a) in effect on the date of
the foreclosure shall apply.
(c) TRANSFER OR CHANGE OF
INTEREST IN FARM-
(1) TERMINATION- Except
as provided in paragraph (5), a transfer of (or change in) the interest
of the producers on a farm in base acres for which contract payments are
made shall result in the termination of the payments with respect to the
base acres, unless the transferee or owner of the acreage agrees to assume
all obligations under subsection (a).
(2) EFFECTIVE DATE- The
termination takes effect on the date of the transfer or change.
(3) TRANSFER OF PAYMENT
BASE AND YIELD- There is no restriction on the transfer of the base acres
or payment yield of a farm as part of a transfer or change described in
paragraph (1).
(4) MODIFICATION- At the
request of the transferee or owner, the Secretary may modify the requirements
of subsection (a) if the modifications are consistent with the objectives
of subsection (a), as determined by the Secretary.
(5) EXCEPTION- If a producer
entitled to a contract payment dies, becomes incompetent, or is otherwise
unable to receive the payment, the Secretary shall make the payment, in
accordance with regulations promulgated by the Secretary.
(d) REVIEW- A determination
of the Secretary under this section shall be considered to be an adverse
decision for purposes of the availability of administrative review of the
determination.
SEC. 118. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS- Subject
to subsection (b), any commodity or crop may be planted on base acres on
a farm.
(b) LIMITATIONS AND EXCEPTIONS
REGARDING CERTAIN COMMODITIES-
(1) LIMITATIONS- The planting
of the following agricultural commodities shall be prohibited on base acres:
(B) Vegetables (other than
lentils, mung beans, dry peas, and chickpeas).
(2) EXCEPTIONS- Paragraph
(1) shall not limit the planting of an agricultural commodity specified
in paragraph (1)--
(A) in any region in which
there is a history of double-cropping of covered commodities with 1 or
more agricultural commodities specified in paragraph (1), as determined
by the Secretary, in which case the double-cropping shall be permitted;
(B) on a farm that the Secretary
determines has a history of planting 1 or more agricultural commodities
specified in paragraph (1) on base acres, except that contract payments
shall be reduced by an acre for each acre planted to the agricultural commodity;
or
(C) by the producers on
a farm that the Secretary determines has an established planting history
of a specific agricultural commodity specified in paragraph (1), except
that--
(i) the quantity planted
may not exceed the average annual planting history of the agricultural
commodity by the producers on the farm during the 1996 through 2001 crop
years (excluding any crop year in which no plantings were made), as determined
by the Secretary; and
(ii) contract payments shall
be reduced by an acre for each acre planted to the agricultural commodity.
SEC. 119. PAYMENT LIMITATIONS.
(a) IN GENERAL- The total
amount of contract payments made directly or indirectly to an individual
or entity during any applicable year may not exceed $100,000.
(b) ADMINISTRATION- Notwithstanding
section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308), sections
1001A(b), 1001B, and 1001C of that Act (7 U.S.C. 1308-1(b), 1308-2, 1308-3)
shall apply to an individual or entity that receives a contract payment.
Subtitle B--Loans and Loan Deficiency
Payments
SEC. 131. AVAILABILITY OF MARKETING
LOANS.
(1) IN GENERAL- Subject
to section 140, for each of the 2002 through 2006 crops of each loan commodity,
the Secretary shall make available to producers on a farm nonrecourse marketing
loans for loan commodities produced on the farm.
(2) TERMS AND CONDITIONS-
The loans shall be made under terms and conditions that are prescribed
by the Secretary and at the loan rate established under section 132 for
the loan commodity.
(1) IN GENERAL- Subject
to section 140, the producers on a farm shall be eligible for a marketing
loan under subsection (a) for any quantity of loan commodities produced
on the farm that does not exceed 175,000 loan units determined under paragraph
(2).
(2) LOAN UNITS- For purposes
of paragraph (1)--
(A) each bushel of wheat
placed under loan by a producer shall be considered 0.875 loan units;
(B) each bushel of corn
placed under loan by a producer shall be considered 0.5 loan units;
(C) each bushel of grain
sorghum placed under loan by a producer shall be considered 0.875 loan
units;
(D) each bushel of barley
placed under loan by a producer shall be considered 0.73 loan units;
(E) each bushel of oats
placed under loan by a producer shall be considered 1.75 loan units;
(F) each pound of upland
cotton placed under loan by a producer shall be considered 0.07609 loan
units;
(G) each hundredweight of
rice placed under loan by a producer shall be considered 2.33333 loan units;
(H) each bushel of soybeans
placed under loan by a producer shall be considered 1 loan unit;
(I) each pound of oilseeds
(other than soybeans) placed under loan by a producer shall be considered
0.0875 loan units;
(J) each bushel of extra
long staple cotton placed under loan by a producer shall be considered
0.07609 loan units;
(K) each pound of wool placed
under loan by a producer shall be considered 4.375 loan units;
(L) each pound of mohair
placed under loan by a producer shall be considered 4.375 loan units;
(M) each pound of honey
placed under loan by a producer shall be considered 1.75 loan units;
(N) each pound of dry peas
placed under loan by a producer shall be considered 12.5 loan units;
(O) each pound of lentils
placed under loan by a producer shall be considered 12.5 loan units; and
(P) each pound of chickpeas
placed under loan by a producer shall be considered 12.5 loan units.
(c) COMPLIANCE WITH CONSERVATION
REQUIREMENTS- As a condition of the receipt of a marketing loan under subsection
(a), the producers on a farm shall comply with--
(1) applicable highly erodible
land conservation requirements under subtitle B of title XII of the Food
Security Act of 1985 (16 U.S.C. 3811 et seq.); and
(2) applicable wetland conservation
requirements under subtitle C of title XII of that Act (16 U.S.C. 3821
et seq.).
SEC. 132. LOAN RATES FOR MARKETING
LOANS.
(a) IN GENERAL- Subject
to subsection (b) and section 137, the loan rate for a loan commodity under
section 131 shall be--
(1) in the case of wheat,
$2.94 per bushel;
(2) in the case of corn,
$2.05 per bushel;
(3) in the case of grain
sorghum, $1.98 per bushel;
(4) in the case of barley,
$1.98 per bushel;
(5) in the case of oats,
$1.30 per bushel;
(6) in the case of upland
cotton, $0.545 per pound;
(7) in the case of rice,
$6.90 per hundredweight;
(8) in the case of soybeans,
$5.20 per bushel;
(9) in the case of oilseeds
(other than soybeans), $0.093 per pound;
(10) in the case of extra
long staple cotton, $0.7965 per pound;
(11) in the case of graded
wool, $1.00 per pound;
(12) in the case of nongraded
wool, $0.40 per pound;
(13) in the case of mohair,
$4.20 per pound;
(14) in the case of honey,
$0.60 per pound;
(15) in the case of dry
peas, $6.64 per hundredweight;
(16) in the case of lentils,
$12.53 per hundredweight;
(17) in the case of large
chickpeas, $17.09 per hundredweight; and
(18) in the case of small
chickpeas, $7.94 per hundredweight.
(1) IN GENERAL- The Secretary
may make appropriate adjustments in the loan rates for any loan commodity
for differences in grade, type, quality, location, and other factors.
(2) MANNER- The adjustments
under this subsection shall, to the maximum extent practicable, be made
in such manner that the average loan rate for the loan commodity will,
on the basis of the anticipated incidence of the factors described in paragraph
(1), be equal to the loan rate provided under this section.
SEC. 133. TERM OF LOANS.
(a) TERM OF LOAN- In the
case of each loan commodity, a marketing loan under section 131 shall have
a term of 9 months beginning on the first day of the first month after
the month in which the loan is made.
(b) EXTENSIONS- The Secretary
may allow the producers on a farm to extend the term of a marketing loan
for any loan commodity for 1 additional 9-month term.
SEC. 134. REPAYMENT OF LOANS.
(a) REPAYMENT RATES FOR
LOAN COMMODITIES (OTHER THAN COTTON AND RICE)- The Secretary shall permit
the producers on a farm to repay a marketing loan under section 131 for
a loan commodity (other than upland cotton, rice, and extra long staple
cotton) at a rate that is the lesser of--
(1) the loan rate established
for the commodity under section 132, 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;
(C) minimize the cost incurred
by the Federal Government in storing the commodity;
(D) allow the commodity
produced in the United States to be marketed freely and competitively,
both domestically and internationally; and
(E) minimize discrepancies
in marketing loan benefits across State boundaries and across county boundaries.
(b) REPAYMENT RATES FOR
UPLAND COTTON AND RICE- The Secretary shall permit producers on a farm
to repay a marketing loan under section 131 for upland cotton and rice
at a rate that is the lesser of--
(1) the loan rate established
for the commodity under section 132, plus interest (as determined by the
Secretary); or
(2) the prevailing world
market price for the commodity (adjusted to United States quality and location),
as determined by the Secretary.
(c) REPAYMENT RATE FOR EXTRA
LONG STAPLE COTTON- Repayment of a loan for extra long staple cotton shall
be at the loan rate established for the commodity under section 131, plus
interest (as determined by the Secretary).
(d) PREVAILING WORLD MARKET
PRICE- For purposes of this section and section 136, the Secretary shall
prescribe by regulation--
(1) a formula to determine
the prevailing world market price for each loan commodity, adjusted to
United States quality and location; and
(2) a mechanism by which
the Secretary shall announce periodically the prevailing world market price
for each loan commodity.
(e) ADJUSTMENT OF PREVAILING
WORLD MARKET PRICE FOR UPLAND COTTON-
(1) IN GENERAL- During the
period ending July 31, 2007, the prevailing world market price for upland
cotton (adjusted to United States quality and location) established under
subsection (c) shall be further adjusted if--
(A) the adjusted prevailing
world market price is less than 115 percent of the loan rate for upland
cotton established under section 132, as determined by the Secretary; and
(B) the Friday through Thursday
average price quotation for the lowest-priced United States growth as quoted
for Middling (M) 1 3/32 -inch cotton delivered C.I.F. Northern Europe is
greater than the Friday through Thursday average price of the 5 lowest-priced
growths of upland cotton, as quoted for Middling (M) 1 3/32 -inch cotton,
delivered C.I.F. Northern Europe (referred to in this subsection as the
`Northern Europe price').
(2) FURTHER ADJUSTMENT-
Except as provided in paragraph (3), the adjusted prevailing world market
price for upland cotton shall be further adjusted on the basis of some
or all of the following data, as available:
(A) The United States share
of world exports.
(B) The current level of
cotton export sales and cotton export shipments.
(C) Other data determined
by the Secretary to be relevant in establishing an accurate prevailing
world market price for upland cotton (adjusted to United States quality
and location).
(3) LIMITATION ON FURTHER
ADJUSTMENT- The adjustment under paragraph (2) may not exceed the difference
between--
(A) the Friday through Thursday
average price for the lowest-priced United States growth as quoted for
Middling 1 3/32 -inch cotton delivered C.I.F. Northern Europe; and
(B) the Northern Europe
price.
SEC. 135. LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF LOAN
DEFICIENCY PAYMENTS- The Secretary may make loan deficiency payments available
to producers on a farm that produce a loan commodity.
(b) COMPUTATION- A loan
deficiency payment under this section shall be obtained by multiplying--
(1) the loan payment rate
determined under subsection (c) for the loan commodity; by
(2) the quantity of the
loan commodity produced by the producers on the farm that could be placed
under loan under section 131, excluding any quantity for which the producers
on the farm obtain a loan under section 131.
(c) LOAN PAYMENT RATE- For
purposes of this section, the loan payment rate shall be the amount by
which--
(1) the loan rate established
under section 132 for the loan commodity; exceeds
(2) the rate at which a
loan for the commodity may be repaid under section 134.
(d) EXCEPTION FOR EXTRA
LONG STAPLE COTTON- This section shall not apply with respect to extra
long staple cotton.
(e) BENEFICIAL INTEREST-
A producer shall be eligible for a payment under this section only if the
producers on the farm have a beneficial interest in the loan commodity,
as determined by the Secretary.
SEC. 136. SPECIAL MARKETING
LOAN PROVISIONS FOR UPLAND COTTON.
(a) COTTON USER MARKETING
CERTIFICATES-
(1) ISSUANCE- During the
period beginning on the date of enactment of this Act and ending July 31,
2007, the Secretary shall issue marketing certificates or cash payments,
at the option of the recipient, to domestic users and exporters for documented
purchases by domestic users and sales for export by exporters made in the
week following a consecutive 4-week period in which--
(A) the Friday through Thursday
average price quotation for the lowest-priced United States growth, as
quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern
Europe exceeds the Northern Europe price by more than 1.25 cents per pound;
and
(B) the prevailing world
market price for upland cotton (adjusted to United States quality and location)
does not exceed 134 percent of the loan rate for upland cotton established
under section 132.
(2) VALUE OF CERTIFICATES
OR PAYMENTS- The value of the marketing certificates or cash payments shall
be based on the amount of the difference (reduced by 1.25 cents per pound)
in the prices during the 4th week of the consecutive 4-week period multiplied
by the quantity of upland cotton included in the documented sales.
(3) ADMINISTRATION OF MARKETING
CERTIFICATES-
(A) REDEMPTION, MARKETING,
OR EXCHANGE-
(i) IN GENERAL- The Secretary
shall establish procedures for redeeming marketing certificates for cash
or marketing or exchange of the certificates for agricultural commodities
owned by the Commodity Credit Corporation or pledged to the Commodity Credit
Corporation as collateral for a loan in such manner, and at such price
levels, as the Secretary determines will best effectuate the purposes of
cotton user marketing certificates, including enhancing the competitiveness
and marketability of United States cotton.
(ii) PRICE RESTRICTIONS-
Any price restrictions that would otherwise apply to the disposition of
agricultural commodities by the Commodity Credit Corporation shall not
apply to the redemption of certificates under this subsection.
(B) DESIGNATION OF COMMODITIES
AND PRODUCTS- To the extent practicable, the Secretary shall permit owners
of certificates to designate the commodities and products, including storage
sites, the owners would prefer to receive in exchange for certificates.
(C) TRANSFERS- Marketing
certificates issued to domestic users and exporters of upland cotton may
be transferred to other persons in accordance with regulations promulgated
by the Secretary.
(b) Special Import Quota-
(A) IN GENERAL- The President
shall carry out an import quota program during the period beginning on
the date of enactment of this Act and ending July 31, 2007, as provided
in this subsection.
(B) PROGRAM REQUIREMENTS-
Except as provided in subparagraph (C), whenever the Secretary determines
and announces that for any consecutive 4-week period, the Friday through
Thursday average price quotation for the lowest-priced United States growth,
as quoted for Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern
Europe, adjusted for the value of any certificate issued under subsection
(a), exceeds the Northern Europe price by more than 1.25 cents per pound,
there shall immediately be in effect a special import quota.
(C) TIGHT DOMESTIC SUPPLY-
During any month for which the Secretary estimates the season-ending United
States upland cotton stocks-to-use ratio, as determined under subparagraph
(D), to be below 16 percent, the Secretary, in making the determination
under subparagraph (B), shall not adjust the Friday through Thursday average
price quotation for the lowest-priced United States growth, as quoted for
Middling (M) 1 3/32 -inch cotton, delivered C.I.F. Northern Europe, for
the value of any certificates issued under subsection (a).
(D) SEASON-ENDING UNITED
STATES STOCKS-TO-USE RATIO- For the purposes of making estimates under
subparagraph (C), the Secretary shall, on a monthly basis, estimate and
report the season-ending United States upland cotton stocks-to-use ratio,
excluding projected raw cotton imports but including the quantity of raw
cotton that has been imported into the United States during the marketing
year.
(2) QUANTITY- The quota
shall be equal to 1 week's consumption of upland cotton by domestic mills
at the seasonally adjusted average rate of the most recent 3 months for
which data are available.
(3) APPLICATION- The quota
shall apply to upland cotton purchased not later than 90 days after the
date of the Secretary's announcement under paragraph (1) and entered into
the United States not later than 180 days after that date.
(4) OVERLAP- A special quota
period may be established that overlaps any existing quota period if required
by paragraph (1), except that a special quota period may not be established
under this subsection if a quota period has been established under subsection
(c).
(5) PREFERENTIAL TARIFF
TREATMENT- The quantity under a special import quota shall be considered
to be an in-quota quantity for purposes of--
(A) section 213(d) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));
(B) section 204 of the Andean
Trade Preference Act (19 U.S.C. 3203);
(C) section 503(d) of the
Trade Act of 1974 (19 U.S.C. 2463(d)); and
(D) General Note 3(a)(iv)
to the Harmonized Tariff Schedule.
(6) LIMITATION- The quantity
of cotton entered into the United States during any marketing year under
the special import quota established under this subsection may not exceed
the equivalent of 5 week's consumption of upland cotton by domestic mills
at the seasonally adjusted average rate of the 3 months immediately preceding
the first special import quota established in any marketing year.
(7) DEFINITION OF SPECIAL
IMPORT QUOTA- In this subsection, the term `special import quota' means
a quantity of imports that is not subject to the over-quota tariff rate
of a tariff-rate quota.
(c) LIMITED GLOBAL IMPORT
QUOTA FOR UPLAND COTTON-
(1) IN GENERAL- The President
shall carry out an import quota program that provides that whenever the
Secretary determines and announces that the average price of the base quality
of upland cotton, as determined by the Secretary, in the designated spot
markets for a month exceeded 130 percent of the average price of such quality
of cotton in the markets for the preceding 36 months, notwithstanding any
other provision of law, there shall immediately be in effect a limited
global import quota subject to the following conditions:
(A) QUANTITY- The quantity
of the quota shall be equal to 21 days of domestic mill consumption of
upland cotton at the seasonally adjusted average rate of the most recent
3 months for which data are available.
(B) QUANTITY IF PRIOR QUOTA-
If a quota has been established under this subsection during the preceding
12 months, the quantity of the quota next established under this subsection
shall be the smaller of 21 days of domestic mill consumption calculated
under subparagraph (A) or the quantity required to increase the supply
to 130 percent of the demand.
(C) PREFERENTIAL TARIFF
TREATMENT- The quantity under a limited global import quota shall be considered
to be an in-quota quantity for purposes of--
(i) section 213(d) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(d));
(ii) section 204 of the
Andean Trade Preference Act (19 U.S.C. 3203);
(iii) section 503(d) of
the Trade Act of 1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv)
to the Harmonized Tariff Schedule.
(D) DEFINITIONS- In this
subsection:
(i) SUPPLY- The term `supply'
means, using the latest official data of the Bureau of the Census, the
Department of Agriculture, and the Department of the Treasury--
(I) the carry-over of upland
cotton at the beginning of the marketing year (adjusted to 480-pound bales)
in which the quota is established;
(II) production of the current
crop; and
(III) imports to the latest
date available during the marketing year.
(ii) DEMAND- The term `demand'
means--
(I) the average seasonally
adjusted annual rate of domestic mill consumption during the most recent
3 months for which data are available; and
(aa) average exports
of upland cotton during the preceding 6 marketing years; or
(bb) cumulative exports
of upland cotton plus outstanding export sales for the marketing year in
which the quota is established.
(iii) LIMITED GLOBAL IMPORT
QUOTA- The term `limited global import quota' means a quantity of imports
that is not subject to the over-quota tariff rate of a tariff-rate quota.
(E) QUOTA ENTRY PERIOD-
When a quota is established under this subsection, cotton may be entered
under the quota during the 90-day period beginning on the date the quota
is established by the Secretary.
(2) NO OVERLAP- Notwithstanding
paragraph (1), a quota period may not be established that overlaps an existing
quota period or a special quota period established under subsection (b).
SEC. 137. SPECIAL COMPETITIVE
PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) COMPETITIVENESS PROGRAM-
Notwithstanding any other provision of law, during the period beginning
on October 1, 2002, and ending on July 31, 2007, the Secretary shall carry
out a program--
(1) to maintain and expand
the domestic use of extra long staple cotton produced in the United States;
(2) to increase exports
of extra long staple cotton produced in the United States; and
(3) to ensure that extra
long staple cotton produced in the United States remains competitive in
world markets.
(b) PAYMENTS UNDER PROGRAM;
TRIGGER- Under the program, the Secretary shall make payments available
under this section whenever--
(1) for a consecutive 4-week
period, the world market price for the lowest priced competing growth of
extra long staple cotton (adjusted to United States quality and location
and for other factors affecting the competitiveness of such cotton), as
determined by the Secretary, is below the prevailing United States price
for a competing growth of extra long staple cotton; and
(2) the lowest priced competing
growth of extra long staple cotton (adjusted to United States quality and
location and for other factors affecting the competitiveness of such cotton),
as determined by the Secretary, is less than 134 percent of the loan rate
for extra long staple cotton.
(c) ELIGIBLE RECIPIENTS-
The Secretary shall make payments available under this section to domestic
users of extra long staple cotton produced in the United States and exporters
of extra long staple cotton produced in the United States that enter into
an agreement with the Commodity Credit Corporation to participate in the
program under this section.
(d) PAYMENT AMOUNT- Payments
under this section shall be based on the amount of the difference in the
prices referred to in subsection (b)(1) during the fourth week of the consecutive
4-week period multiplied by the amount of documented purchases by domestic
users and sales for export by exporters made in the week following such
a consecutive 4-week period.
(e) FORM OF PAYMENT- Payments
under this section shall be made through the issuance of cash or marketing
certificates, at the option of eligible recipients of the payments.
SEC. 138. HIGH MOISTURE FEED
GRAINS.
(a) DEFINITION OF HIGH MOISTURE
STATE- In this section, the term `high moisture state' means corn or grain
sorghum having a moisture content in excess of Commodity Credit Corporation
standards for marketing loans made by the Secretary under section 131.
(b) RECOURSE LOANS- For
each of the 2002 through 2006 crops of corn and grain sorghum, the Secretary
shall make available recourse loans, as determined by the Secretary, to
producers on a farm containing eligible cropland that--
(1) normally harvest all
or a portion of their crop of corn or grain sorghum in a high moisture
state;
(A) certified scale tickets
from an inspected, certified commercial scale, including a licensed warehouse,
feedlot, feed mill, distillery, or other similar entity approved by the
Secretary, pursuant to regulations promulgated by the Secretary; or
(B) field or other physical
measurements of the standing or stored crop in regions of the United States,
as determined by the Secretary, that do not have certified commercial scales
from which certified scale tickets may be obtained within reasonable proximity
of harvest operation;
(3) certify that they were
the owners of the feed grain at the time of delivery to, and that the quantity
to be placed under loan under this subsection was in fact harvested on
the farm and delivered to, a feedlot, feed mill, or commercial or on-farm
high-moisture storage facility, or to a facility maintained by the users
of corn and grain sorghum in a high moisture state; and
(4) comply with deadlines
established by the Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this section within deadlines established
by the Secretary.
(c) ELIGIBILITY OF ACQUIRED
FEED GRAINS- A loan under this section shall be made on a quantity of corn
or grain sorghum of the same crop acquired by the producers on the farm
equivalent to a quantity obtained by multiplying--
(1) the acreage of the corn
or grain sorghum in a high moisture state harvested on the farm; by
(2) the lower of the farm
program payment yield or the actual yield on a field, as determined by
the Secretary, that is similar to the field from which the corn or grain
sorghum was obtained.
(d) REPAYMENT RATES- Repayment
of a recourse loan made under this section shall be at the loan rate established
for the commodity by the Secretary, plus interest (as determined by the
Secretary).
SEC. 139. SEED COTTON.
(a) IN GENERAL- For each
of the 2002 through 2006 crops of upland cotton and extra long staple cotton,
the Secretary shall make available recourse seed cotton loans, as determined
by the Secretary, on any production.
(b) REPAYMENT RATES- Repayment
of a recourse loan made under this section shall be at the loan rate established
for the commodity by the Secretary, plus interest (as determined by the
Secretary).
SEC. 140. PRODUCER ELECTION
FOR 2002 CROP.
(a) IN GENERAL- Notwithstanding
subtitle C of title I of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7231 et seq.), not later than 90 days after the date
of enactment of this Act, an eligible owner or producer that entered into
a production flexibility contract under section 111 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7211) that is effect for the
2002 crop may elect to--
(1) receive marketing assistance
loans and loan deficiency payments for the 2002 crop in accordance with
subtitle C of title I of that Act (7 U.S.C. 7231 et seq.); or
(2) receive marketing assistance
loans and loan deficiency payments for the 2002 crop in accordance with
this chapter.
(b) CONFORMING AMENDMENTS-
(1) Section 131(a) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231(a))
is amended by striking `For' and inserting `Subject to section 140 of the
Agriculture, Conservation, and Rural Enhancement Act of 2001, for'.
(2) Section 135(a) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7235(a))
is amended by inserting `and section 140 of the Agriculture, Conservation,
and Rural Enhancement Act of 2001' after `subsection (d)'.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 151. MILK PRICE SUPPORT
PROGRAM.
(a) IN GENERAL- During the
period beginning on January 1, 2002, and ending on December 31, 2006, the
Secretary shall support the price of milk produced in the 48 contiguous
States through the purchase of cheese, butter, and nonfat dry milk produced
from the milk.
(b) RATE- During the period
specified in subsection (a), the price of milk shall be supported at a
rate equal to $9.90 per hundredweight for milk containing 3.67 percent
butterfat.
(1) UNIFORM PRICES- The
support purchase prices under this section for each of the products of
milk (butter, cheese, and nonfat dry milk) announced by the Secretary shall
be the same for all of that product sold by persons offering to sell the
product to the Secretary.
(2) AMOUNT- The purchase
prices shall be sufficient to enable plants of average efficiency to pay
producers, on average, a price that is not less than the rate of price
support for milk in effect under subsection (b).
(d) SPECIAL RULE FOR BUTTER
AND NONFAT DRY MILK PURCHASE PRICES-
(1) ALLOCATION OF PURCHASE
PRICES- The Secretary may allocate the rate of price support between the
purchase prices for nonfat dry milk and butter in a manner that will result
in the lowest level of expenditures by the Commodity Credit Corporation
or achieve such other objectives as the Secretary considers appropriate.
(2) NOTIFICATION OF CONGRESS-
Not later than 10 days after making or changing an allocation, the Secretary
shall notify the Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry of the Senate
of the allocation.
(3) ADMINISTRATION- Section
553 of title 5, United States Code, shall not apply with respect to the
implementation of this section.
(4) TIMING OF PURCHASE PRICE
ADJUSTMENTS- The Secretary may make any such adjustments in the purchase
prices for nonfat dry milk and butter the Secretary considers to be necessary
not more than twice in each calendar year.
SEC. 152. DAIRY EXPORT INCENTIVE
AND DAIRY INDEMNITY PROGRAMS.
(a) DAIRY EXPORT INCENTIVE
PROGRAM- Section 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a-14(a))
is amended by striking `2002' and inserting `2006'.
(b) DAIRY INDEMNITY PROGRAM-
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking `1995'
and inserting `2006'.
SEC. 153. FLUID MILK PROMOTION.
(a) DEFINITION OF FLUID
MILK PRODUCT- Section 1999C of the Fluid Milk Promotion Act of 1990 (7
U.S.C. 6402) is amended by striking paragraph (3) and inserting the following:
`(3) FLUID MILK PRODUCT-
The term `fluid milk product' has the meaning given the term in--
`(A) section 1000.15 of
title 7, Code of Federal Regulations, subject to such amendments as may
be made by the Secretary; or
`(B) any successor regulation
providing a definition of that term that is promulgated pursuant to the
Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments
by the Agricultural Marketing Agreement Act of 1937.'.
(b) DEFINITION OF FLUID
MILK PROCESSOR- Section 1999C(4) of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6402(4)) is amended by striking `500,000' and inserting `3,000,000'.
(c) ELIMINATION OF ORDER
TERMINATION DATE- Section 1999O of the Fluid Milk Promotion Act of 1990
(7 U.S.C. 6414) is amended--
(1) by striking subsection
(a); and
(2) by redesignating subsections
(b) and (c) as subsections (a) and (b), respectively.
SEC. 154. DAIRY PRODUCT MANDATORY
REPORTING.
Section 272(1) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637a(1)) is amended--
(1) by striking `means manufactured
dairy products' and inserting `means--
`(A) manufactured dairy
products';
(2) by striking the period
at the end and inserting `; and'; and
(3) by adding at the end
the following:
`(B) substantially identical
products designated by the Secretary.'.
SEC. 155. FUNDING OF DAIRY PROMOTION
AND RESEARCH PROGRAM.
(a) DEFINITIONS- Section
111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
amended--
(1) in subsection (k), by
striking `and' at the end;
(2) in subsection (l), by
striking the period at the end and inserting a semicolon; and
(3) by adding at the end
the following:
`(m) the term `imported
dairy product' means any dairy product that is imported into the United
States, including dairy products imported into the United States in the
form of--
`(1) milk, cream, and fresh
and dried dairy products;
`(2) butter and butterfat
mixtures;
`(4) casein and mixtures;
`(n) the term `importer'
means a person that imports an imported dairy product into the United States;
and
`(o) the term `Customs'
means the United States Customs Service.'.
(b) REPRESENTATION OF IMPORTERS
ON BOARD- Section 113(b) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(b)) is amended--
(1) by inserting `NATIONAL
DAIRY PROMOTION AND RESEARCH BOARD- ' after `(b)';
(2) by designating the first
through ninth sentences as paragraphs (1) through (5) and paragraphs (7)
through (10), respectively, and indenting the paragraphs appropriately;
(3) in paragraph (2) (as
so designated), by striking `Members' and inserting `Except as provided
in paragraph (6), the members'; and
(4) by inserting after paragraph
(5) (as so designated) the following:
`(A) REPRESENTATION- The
Secretary shall appoint not more than 2 members who represent importers
of dairy products and are subject to assessments under the order, to reflect
the proportion of domestic production and imports supplying the United
States market, as determined by the Secretary on the basis of the average
volume of domestic production of dairy products in proportion to the average
volume of imports of dairy products in the United States during the previous
3 years.
`(B) ADDITIONAL MEMBERS;
NOMINATIONS- The members appointed under this paragraph--
`(i) shall be in addition
to the total number of members appointed under paragraph (2); and
`(ii) shall be appointed
from nominations submitted by importers under such procedures as the Secretary
determines to be appropriate.'.
(c) IMPORTER ASSESSMENT-
Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)) is amended--
(1) by inserting `ASSESSMENTS-
' after `(g)';
(2) by designating the first
through fifth sentences as paragraphs (1) through (5), respectively, and
indenting appropriately; and
(3) by adding at the end
the following:
`(A) IN GENERAL- The order
shall provide that each importer of imported dairy products shall pay an
assessment to the Board in the manner prescribed by the order.
`(i) IN GENERAL- The assessment
on imported dairy products shall be--
`(I) paid by the importer
to Customs at the time of the entry of the products into the United States;
and
`(II) remitted by Customs
to the Board.
`(ii) TIME OF ENTRY- For
purposes of this subparagraph, entry of the products into the United States
shall be considered to have occurred when the dairy products are released
from custody of Customs and introduced into the stream of commerce within
the United States.
`(iii) IMPORTERS- For purposes
of this subparagraph, importers include--
`(I) persons that hold title
to foreign-produced dairy products immediately on release by Customs; and
`(II) persons that act on
behalf of others, as agents, brokers, or consignees, to secure the release
of dairy products from Customs and introduce the released dairy products
into the stream of commerce.
`(C) RATE- The rate of assessment
on imported dairy products shall be determined in the same manner as the
rate of assessment per hundredweight or the equivalent of milk.
`(D) VALUE OF PRODUCTS-
For the purpose of determining the assessment on imported dairy products
under subparagraph (C), the value to be placed on imported dairy products
shall be established by the Secretary in a fair and equitable manner.
`(E) USE OF ASSESSMENTS
ON IMPORTED DAIRY PRODUCTS- Assessments collected on imported dairy products
shall not be used for foreign market promotion of United States dairy products.'.
(d) RECORDS- Section 113(k)
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is
amended in the first sentence by striking `person receiving' and inserting
`importer of imported dairy products, each person receiving'.
(e) IMPORTER ELIGIBILITY
TO VOTE IN REFERENDUM- Section 116(b) of the Dairy Promotion Stabilization
Act of 1983 (7 U.S.C. 4507(b)) is amended--
(1) in the first sentence,
by inserting `and importers' after `producers' each place it appears;
(2) in the second sentence,
by inserting after `commercial use' the following: `and importers voting
in the referendum (that have been engaged in the importation of dairy products
during the same representative period, as determined by the Secretary)'.
(f) CONFORMING AMENDMENTS-
Section 110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4501(b)) is amended--
(1) in the first sentence--
(A) by inserting after `commercial
use' the following: `and on imported dairy products'; and
(B) by striking `products
produced in the United States.' and inserting `products.'; and
(2) in the second sentence,
by inserting after `produce milk' the following: `or the right of any person
to import dairy products'.
CHAPTER 2--SUGAR
SEC. 161. SUGAR PROGRAM.
(a) SUGARCANE- The Secretary
shall make loans available to processors of domestically grown sugarcane
at a rate equal to 18 cents per pound for raw cane sugar.
(b) SUGAR BEETS- The Secretary
shall make loans available to processors of domestically grown sugar beets
at a rate equal to 22.9 cents per pound for refined beet sugar.
(c) LOAN RATE ADJUSTMENTS-
(1) DEFINITIONS- In this
subsection:
(A) AGREEMENT ON AGRICULTURE-
The term `Agreement on Agriculture' means the Agreement on Agriculture
referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(2)).
(B) MAJOR SUGAR COUNTRIES-
The term `major sugar growing, producing, and exporting countries' means--
(i) the countries of the
European Union; and
(ii) the 10 foreign countries
not covered by subparagraph (A) that the Secretary determines produce the
greatest quantity of sugar.
(2) ADJUSTMENTS- The Secretary
may reduce the loan rate specified in subsection (a) for domestically grown
sugarcane and subsection (b) for domestically grown sugar beets if the
Secretary determines that negotiated reductions in export subsidies and
domestic subsidies provided for sugar of other major sugar growing, producing,
and exporting countries in the aggregate exceed the commitments made as
part of the Agreement on Agriculture.
(3) EXTENT OF REDUCTION-
The Secretary shall not reduce the loan rate under subsection (a) or (b)
below a rate that provides an equal measure of support to that provided
by other major sugar growing, producing, and exporting countries, based
on an examination of both domestic and export subsidies subject to reduction
in the Agreement on Agriculture.
(4) ANNOUNCEMENT OF REDUCTION-
The Secretary shall announce any loan rate reduction to be made under this
subsection as far in advance as is practicable.
(1) IN GENERAL- A loan under
this section during any fiscal year shall be made available not earlier
than the beginning of the fiscal year and shall mature at the earlier of--
(A) the end of the 9-month
period beginning on the first day of the first month after the month in
which the loan is made; or
(B) the end of the fiscal
year in which the loan is made.
(2) SUPPLEMENTAL LOANS-
In the case of a loan made under this section in the last 3 months of a
fiscal year, the processor may repledge the sugar as collateral for a second
loan in the subsequent fiscal year, except that the second loan shall--
(A) be made at the loan
rate in effect at the time the second loan is made; and
(B) mature in 9 months less
the quantity of time that the first loan was in effect.
(e) LOAN TYPE; PROCESSOR
ASSURANCES-
(1) NONRECOURSE LOANS- The
Secretary shall carry out this section through the use of nonrecourse loans.
(2) PROCESSOR ASSURANCES-
(A) IN GENERAL- The Secretary
shall obtain from each processor that receives a loan under this section
such assurances as the Secretary considers adequate to ensure that the
processor will provide payments to producers that are proportional to the
value of the loan received by the processor for sugar beets and sugarcane
delivered by producers served by the processor.
(B) MINIMUM PAYMENTS- The
Secretary may establish appropriate minimum payments for purposes of this
paragraph.
(3) ADMINISTRATION- The
Secretary may not impose or enforce any prenotification or similar administrative
requirement that has the effect of preventing a processor from choosing
to forfeit the loan collateral on the maturity of the loan.
(f) LOANS FOR IN-PROCESS
SUGAR-
(1) DEFINITION OF IN-PROCESS
SUGARS AND SYRUPS- In this subsection, the term `in-process sugars and
syrups' does not include raw sugar, liquid sugar, invert sugar, invert
syrup, or other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
(2) AVAILABILITY- The Secretary
shall make nonrecourse loans available to processors of a crop of domestically
grown sugarcane and sugar beets for in-process sugars and syrups derived
from the crops.
(3) LOAN RATE- The loan
rate shall be equal to 80 percent of the loan rate applicable to raw cane
sugar or refined beet sugar, as determined on the basis of the source material
for the in-process sugars and syrups.
(4) FURTHER PROCESSING ON
FORFEITURE-
(A) IN GENERAL- As a condition
on the forfeiture of in-process sugars and syrups serving as collateral
for a loan under paragraph (2), the processor shall, within such reasonable
time period as the Secretary may prescribe and at no cost to the Commodity
Credit Corporation, convert the in-process sugars and syrups into raw cane
sugar or refined beet sugar of acceptable grade and quality for sugars
eligible for loans under subsection (a) or (b).
(B) TRANSFER TO CORPORATION-
Once the in-process sugars and syrups are fully processed into raw cane
sugar or refined beet sugar, the processor shall transfer the sugar to
the Corporation.
(C) PAYMENT TO PROCESSOR-
Subject to subsection (g), on transfer of the sugar, the Secretary shall
make a payment to the processor in an amount equal to the difference between--
(i) the loan rate for raw
cane sugar or refined beet sugar, as appropriate; and
(ii) the loan rate the processor
received under paragraph (1).
(5) LOAN CONVERSION- If
the processor does not forfeit the collateral as described in paragraph
(4), but instead further processes the in-process sugars and syrups into
raw cane sugar or refined beet sugar and repays the loan on the in-process
sugars and syrups, the processor may obtain a loan under subsection (a)
or (b) on the raw cane sugar or refined beet sugar, as appropriate.
(1) IN GENERAL- A penalty
shall be assessed on the forfeiture of any sugar pledged as collateral
for a nonrecourse loan under this section.
(2) CANE SUGAR- The penalty
for cane sugar shall be 1 cent per pound.
(3) BEET SUGAR- The penalty
for beet sugar shall bear the same relation to the penalty for cane sugar
as the marketing assessment for sugar beets bears to the marketing assessment
for sugarcane.
(4) EFFECT OF FORFEITURE-
Any payments owed producers by a processor that forfeits any sugar pledged
as collateral for a nonrecourse loan shall be reduced in proportion to
the loan forfeiture penalty incurred by the processor.
(h) INFORMATION REPORTING-
(1) DUTY OF PROCESSORS AND
REFINERS TO REPORT- A sugarcane processor, cane sugar refiner, and sugar
beet processor shall furnish the Secretary, on a monthly basis, such information
as the Secretary may require to administer sugar programs, including the
quantity of purchases of sugarcane, sugar beets, and sugar, and production,
importation, distribution, and stock levels of sugar.
(2) DUTY OF PRODUCERS TO
REPORT-
(A) PROPORTIONATE SHARE
STATES- The Secretary shall require a producer of sugarcane located in
a State (other than Puerto Rico) in which there are in excess of 250 producers
of sugarcane to report, in the manner prescribed by the Secretary, the
sugarcane yields and acres planted to sugarcane of the producer.
(B) OTHER STATES- The Secretary
may require each producer of sugarcane or sugar beets not covered by paragraph
(1) to report, in a manner prescribed by the Secretary, the yields and
acres planted to sugarcane or sugar beets, respectively, of the producer.
(3) DUTY OF IMPORTERS TO
REPORT-
(A) IN GENERAL- Except as
provided in subparagraph (B), the Secretary shall require an importer of
sugars, syrups, or molasses to be used for human consumption or to be used
for the extraction of sugar for human consumption to report, in the manner
prescribed by the Secretary, the quantities of the products imported by
the importer and the sugar content or equivalent of the products.
(B) TARIFF-RATE QUOTAS-
Subparagraph (A) shall not apply to sugars, syrups, or molasses that are
within the quantities of tariff-rate quotas that are at the lower rate
of duties.
(4) PENALTY- Any person
willfully failing or refusing to furnish the information, or furnishing
willfully any false information, shall be subject to a civil penalty of
not more than $10,000 for each such violation.
(5) MONTHLY REPORTS- Taking
into consideration the information received under this subsection, the
Secretary shall publish on a monthly basis composite data on production,
imports, distribution, and stock levels of sugar.
(i) AVOIDING FORFEITURES;
CORPORATION INVENTORY DISPOSITION-
(1) NO COST- Subject to
subsection (e)(3), to the maximum extent practicable, the Secretary shall
operate the program established under this section at no cost to the Federal
Government by avoiding the forfeiture of sugar to the Commodity Credit
Corporation.
(2) INVENTORY DISPOSITION-
(A) IN GENERAL- To carry
out paragraph (1), the Commodity Credit Corporation may accept bids to
obtain raw cane sugar or refined beet sugar in the inventory of the Corporation
from (or otherwise make available such commodities, on appropriate terms
and conditions, to) processors of sugarcane and processors of sugar beets
(acting in conjunction with the producers of the sugarcane or sugar beets
processed by the processors) in return for the reduction of production
of raw cane sugar or refined beet sugar, as appropriate.
(B) ADDITIONAL AUTHORITY-
The authority provided under this paragraph is in addition to any authority
of the Corporation under any other law.
(j) CROPS- This section
shall be effective only for the 1996 through 2006 crops of sugar beets
and sugarcane.
SEC. 162. STORAGE FACILITY LOANS.
(a) IN GENERAL- Notwithstanding
any other provision of law and as soon as practicable after the date of
the enactment of this Act, the Commodity Credit Corporation shall amend
part 1436 of title 7, Code of Federal Regulations, to establish a sugar
storage facility loan program to provide financing for processors of domestically-produced
sugarcane and sugar beets to build or upgrade storage and handling facilities
for raw sugars and refined sugars.
(b) ELIGIBLE PROCESSORS-
A storage facility loan shall be made available to any processor of domestically
produced sugarcane or sugar beets that (as determined by the Secretary
of Agriculture)--
(1) has a satisfactory credit
history;
(2) has a need for increased
storage capacity, taking into account the effects of marketing allotments);
and
(3) demonstrates an ability
to repay the loan.
(c) TERM OF LOANS- A storage
facility loan shall--
(1) have a minimum term
of 7 of seven years; and
(2) be in such amounts and
on such terms and conditions (including down payment, security requirements,
and eligible equipment) as are normal, customary, and appropriate for the
size and commercial nature of the borrower.
SEC. 163. FLEXIBLE MARKETING
ALLOTMENTS FOR SUGAR.
(a) INFORMATION REPORTING-
Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa)
is repealed.
(b) ESTIMATES- Section 359b
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended--
(1) in the section heading--
(A) by inserting `flexible'
before `marketing'; and
(B) by striking `and crystalline
fructose';
(i) by striking `Before'
and inserting `Not later than August 1 before';
(ii) by striking `1992 through
1998' and inserting `2002 through 2006';
(iii) in subparagraph (A),
by striking `(other than sugar' and all that follows through `stocks';
(iv) by redesignating subparagraphs
(B) and (C) as subparagraphs (C) and (E), respectively;
(v) by inserting after subparagraph
(A) the following:
`(B) the quantity of sugar
that would provide for reasonable carryover stocks;';
(vi) in subparagraph (C)
(as so redesignated)--
(I) by striking `or' and
all that follows through `beets'; and
(II) by striking `and' following
the semicolon;
(vii) by inserting after
subparagraph (C) (as so redesignated) the following:
`(D) the quantity of sugar
that will be available from the domestic processing of sugarcane and sugar
beets; and'; and
(viii) in subparagraph (E)
(as so redesignated)--
(I) by striking `quantity
of sugar' and inserting `quantity of sugars, syrups, and molasses';
(II) by inserting `human'
after `imported for' the first place it appears;
(III) by inserting after
`consumption' the first place it appears the following: `or to be used
for the extraction of sugar for human consumption';
(IV) by striking `year'
and inserting `year, whether such articles are under a tariff-rate quota
or are in excess or outside of a tariff rate quota'; and
(V) by striking `(other
than sugar' and all that follows through `carry-in stocks';
(B) by redesignating paragraph
(2) as paragraph (3);
(C) by inserting after paragraph
(1) the following:
`(2) EXCLUSION- The estimates
in this section shall not include sugar imported for the production of
polyhydric alcohol or to be refined and re-exported in refined form or
in products containing sugar.'; and
(D) in paragraph (3) (as
so redesignated)--
(i) in the paragraph heading,
by striking `QUARTERLY REESTIMATES' and inserting `REESTIMATES'; and
(ii) by inserting `as necessary,
but' after `a fiscal year';
(A) by striking paragraph
(1) and inserting the following:
`(1) IN GENERAL- By the
beginning of each fiscal year, the Secretary shall establish for that fiscal
year appropriate allotments under section 359c for the marketing by processors
of sugar processed from sugar beets and from domestically-produced sugarcane
at a level that the Secretary estimates will result in no forfeitures of
sugar to the Commodity Credit Corporation under the loan program for sugar
established under section 161 of the Agriculture, Conservation, and Rural
Enhancement Act of 2001.'; and
(B) in paragraph (2), by
striking `or crystalline fructose';
(4) by striking subsection
(c);
(5) by redesignating subsection
(d) as subsection (c); and
(6) in subsection (c) (as
so redesignated)--
(A) by striking paragraph
(2);
(B) by redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively; and
(C) in paragraph (2) (as
so redesignated)--
(i) by striking `or manufacturer'
and all that follows through `(2)'; and
(ii) by striking `or crystalline
fructose'.
(c) ESTABLISHMENT- Section
359c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
(1) in the section heading,
by inserting `flexible' after `of';
(2) in subsection (a), by
inserting `flexible' after `establish';
(A) in paragraph (1)(A),
by striking `1,250,000' and inserting `1,532,000'; and
(B) in paragraph (2), by
striking `to the maximum extent practicable';
(4) by striking subsection
(c) and inserting the following:
`(c) MARKETING ALLOTMENT
FOR SUGAR DERIVED FROM SUGAR BEETS AND SUGAR DERIVED FROM SUGARCANE- The
overall allotment quantity for the fiscal year shall be allotted among--
`(1) sugar derived from
sugar beets by establishing a marketing allotment for a fiscal year at
a quantity equal to the product of multiplying the overall allotment quantity
for the fiscal year by 54.35 percent; and
`(2) sugar derived from
sugarcane by establishing a marketing allotment for a fiscal year at a
quantity equal to the product of multiplying the overall allotment quantity
for the fiscal year by 45.65 percent.';
(5) by striking subsection
(d) and inserting the following:
`(d) FILLING CANE SUGAR
AND BEET SUGAR ALLOTMENTS-
`(1) CANE SUGAR- Each marketing
allotment for cane sugar established under this section may only be filled
with sugar processed from domestically grown sugarcane.
`(2) BEET SUGAR- Each marketing
allotment for beet sugar established under this section may only be filled
with sugar domestically processed from sugar beets.';
(6) by striking subsection
(e);
(7) by redesignating subsection
(f) as subsection (e);
(8) in subsection (e) (as
so redesignated)--
(A) by striking `The allotment'
and inserting the following:
`(1) IN GENERAL- The allotment';
(B) in paragraph (1) (as
so redesignated)--
(i) by striking `the 5'
and inserting `the';
(ii) by inserting after
`sugarcane is produced,' the following: `after a hearing (if requested
by the affected sugar cane processors and growers) and on such notice as
the Secretary by regulation may prescribe,'; and
(iii) by striking `on the
basis of past marketings' and all that follows through `allotments' and
inserting `as provided in this subsection and section 359d(a)(2)(A)(iv)';
and
(C) by inserting after paragraph
(1) (as so designated) the following:
`(A) COLLECTIVELY- Prior
to the allotment of sugar derived from sugarcane to any other State, 325,000
short tons, raw value shall be allotted to the offshore States.
`(B) INDIVIDUALLY- The collective
offshore State allotment provided for under subparagraph (A) shall be further
allotted among the offshore States in which sugarcane is produced, after
a hearing (if requested by the affected sugar cane processors and growers)
and on such notice as the Secretary by regulation may prescribe, in a fair
and equitable manner on the basis of--
`(i) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from the 1996 through 2000 crops;
`(ii) the ability of processors
to market the sugar covered under the allotments for the crop year; and
`(iii) past processings
of sugar from sugarcane based on the 3-year average of the crop years 1998
through 2000.
`(3) MAINLAND ALLOTMENT-
The allotment for sugar derived from sugarcane, less the amount provided
for under paragraph (2), shall be allotted among the mainland States in
the United States in which sugarcane is produced, after a hearing (if requested
by the affected sugar cane processors and growers) and on such notice as
the Secretary by regulation may prescribe, in a fair and equitable manner
on the basis of--
`(A) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from the 1996 through 2000 crops;
`(B) the ability of processors
to market the sugar covered under the allotments for the crop year; and
`(C) past processings of
sugar from sugarcane, based on the 3 crop years with the greatest processings
(in the mainland States collectively) during the 1991 through 2000 crop
years.';
(9) by inserting after subsection
(e) (as so redesignated) the following:
`(f) FILLING CANE SUGAR
ALLOTMENTS- Except as provided in section 359e, a State cane sugar allotment
established under subsection (e) for a fiscal year may be filled only with
sugar processed from sugarcane grown in the State covered by the allotment.';
(A) in paragraph (1), by
striking `359b(a)(2)--' and all that follows through the comma at the end
of subparagraph (C) and inserting `359b(a)(3), adjust upward or downward
marketing allotments in a fair and equitable manner';
(B) in paragraph (2), by
striking `359f(b)' and inserting `359f(c)'; and
(i) in the paragraph heading,
by striking `REDUCTIONS' and inserting `CARRY-OVER OF REDUCTIONS';
(ii) by inserting after
`this subsection, if' the following: `at the time of the reduction';
(iii) by striking `price
support' and inserting `nonrecourse';
(iv) by striking `206' and
all that follows through `the allotment' and inserting `151 of the Agriculture,
Conservation, and Rural Enhancement Act of 2001,'; and
(v) by striking `, if any,';
and
(11) by striking subsection
(h) and inserting the following:
`(h) SUSPENSION OF ALLOTMENTS-
Whenever the Secretary estimates or reestimates under section 359b(a),
or has reason to believe, that imports of sugars, syrups or molasses for
human consumption or to be used for the extraction of sugar for human consumption,
whether under a tariff-rate quota or in excess or outside of a tariff-rate
quota, will exceed 1,532,000 short tons (raw value equivalent), and that
the imports would lead to a reduction of the overall allotment quantity,
the Secretary shall suspend the marketing allotments until such time as
the imports have been restricted, eliminated, or reduced to or below the
level of 1,532,000 short tons (raw value equivalent).'.
(d) ALLOCATION- Section
359d(a)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd(a)(2))
is amended--
(1) in subparagraph (A)--
(A) by striking `The Secretary'
and inserting the following:
`(i) IN GENERAL- The Secretary';
(B) in the first sentence
of clause (i) (as so designated)--
(i) by striking `interested
parties' and inserting `the affected sugar cane processors and growers';
and
(ii) by striking `by taking'
and all that follows through `allotment allocated.' and inserting `under
this subparagraph.'; and
(C) by inserting after clause
(i) the following:
`(ii) MULTIPLE PROCESSOR
STATES- Except as provided in clauses (iii) and (iv), the Secretary shall
allocate the allotment for cane sugar among multiple cane sugar processors
in a single State based on--
`(I) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from among the 1996 through 2000 crops;
`(II) the ability of processors
to market sugar covered by that portion of the allotment allocated for
the crop year; and
`(III) past processings
of sugar from sugarcane, based on the average of the 3 highest years from
among the 1996 through 2000 crop years.
`(iii) TALISMAN PROCESSING
FACILITY- In the case of allotments under clause (ii) attributable to the
former operations of the Talisman processing facility, the Secretary shall
allocate the allotment among processors in the State under clause (i) in
accordance with the agreements of March 25 and 26, 1999, between the affected
processors and the Department of the Interior.
`(iv) PROPORTIONATE SHARE
STATES- In the case of States subject to section 359f(c), the Secretary
shall allocate the allotment for cane sugar among multiple cane sugar processors
in a single state based on--
`(I) past marketings of
sugar, based on the average of the 2 highest years of production of raw
cane sugar from among the 1997 through 2001 crop years;
`(II) the ability of processors
to market sugar covered by that portion of the allotments allocated for
the crop year; and
`(III) past processings
of sugar from sugarcane, based on the average of the 2 highest crop years
from the 1997 through 2001 crop years.
`(I) IN GENERAL- Notwithstanding
clauses (ii) and (iii), the Secretary, on application of any processor
that begins processing sugarcane on or after the date of enactment of this
clause, and after a hearing (if requested by the affected sugarcane processors
and growers) and on such notice as the Secretary by regulation may prescribe,
may provide the processor with an allocation that provides a fair, efficient
and equitable distribution of the allocations from the allotment for the
State in which the processor is located.
`(II) PROPORTIONATE SHARE
STATES- In the case of proportionate share States, the Secretary shall
establish proportionate shares in a quantity sufficient to produce the
sugarcane required to satisfy the allocations.
`(III) LIMITATION- The allotment
for a new processor under this clause shall not exceed 50,000 short tons
(raw value).
`(vi) TRANSFER OF OWNERSHIP-
Except as otherwise provided in section 359f(c)(8), in the event that a
sugarcane processor is sold or otherwise transferred to another owner,
or closed as part of an affiliated corporate group processing consolidation,
the Secretary shall transfer the allotment allocation for the processor
to the purchaser, new owner, or successor in interest, as applicable, of
the processor.'; and
(2) in subparagraph (B)--
(A) in the first sentence,
by striking `The Secretary' and inserting the following:
`(i) IN GENERAL- The Secretary';
(B) in clause (i) (as so
designated)--
(i) by striking `interested
parties' and inserting `the affected sugar beet processors and growers';
and
(ii) by striking `processing
capacity' and all that follows through `allotment allocated' and inserting
the following: `the marketings of sugar processed from sugar beets of any
or all of the 1996 through 2000 crops, and such other factors as the Secretary
may consider appropriate after consultation with the affected sugar beet
processors and growers.'; and
(C) by adding at the end
the following:
`(ii) NEW PROCESSORS- In
the case of any processor that has started processing sugar beets after
January 1, 1996, the Secretary shall provide the processor with an allocation
that provides a fair, efficient and equitable distribution of the allocations.'.
(e) REASSIGNMENT- Section
359e(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee(b))
is amended--
(A) in subparagraph (B),
by striking the `and' after the semicolon;
(B) by redesignating subparagraph
(C) as subparagraph (D);
(C) by inserting after subparagraph
(B) the following:
`(C) if after the reassignments,
the deficit cannot be completely eliminated, the Secretary shall reassign
the estimated quantity of the deficit to the sale of any inventories of
sugar held by the Commodity Credit Corporation; and'; and
(D) in subparagraph (D)
(as so redesignated), by inserting `and sales' after `reassignments'; and
(A) in subparagraph (A),
by striking the `and' after the semicolon;
(B) in subparagraph (B),
by striking `reassign the remainder to imports.' and inserting `use the
estimated quantity of the deficit for the sale of any inventories of sugar
held by the Commodity Credit Corporation; and'; and
(C) by inserting after subparagraph
(B) the following:
`(C) if after the reassignments
and sales, the deficit cannot be completely eliminated, the Secretary shall
reassign the remainder to imports.'.
(f) PRODUCER PROVISIONS-
Section 359f of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff)
is amended--
(A) in the second sentence,
by striking `processor's allocation' and inserting `allocation to the processor';
and
(B) by adding at the end
the following: `The arbitration should be completed not more than 45 days
after the request and shall be completed not more than 60 days after the
request.';
(2) by redesignating subsection
(b) as subsection (c);
(3) by inserting after subsection
(a) the following:
`(b) SUGAR BEET PROCESSING
FACILITY CLOSURES-
`(1) IN GENERAL- If a sugar
beet processing facility is closed and the sugar beet growers that previously
delivered beets to the facility desire to deliver their beets to another
processing company, the growers may petition the Secretary to modify existing
allocations to allow the delivery.
`(2) INCREASED ALLOCATION
FOR PROCESSING COMPANY- The Secretary may increase the allocation to the
processing company to which the growers desire to deliver their sugar beets,
with the approval of the processing company, to a level that does not exceed
the processing capacity of the processing company, to accommodate the change
in deliveries.
`(3) DECREASED ALLOCATION
FOR CLOSED COMPANY- The increased allocation shall be deducted from the
allocation to the company that owned the processing facility that has been
closed and the remaining allocation will be unaffected.
`(4) TIMING- The determinations
of the Secretary on the issues raised by the petition shall be made within
60 days after the filing of the petition.'; and
(4) in subsection (c) (as
so redesignated)--
(A) in paragraph (3)(A),
by striking `the preceding 5 years' and inserting `the 2 highest years
from among the 1999, 2000, and 2001 crop years';
(B) in paragraph (4)(A),
by striking `each' and all that follows through `in effect' and inserting
`the 2 highest of the 1999, 2000, and 2001 crop years'; and
(C) by inserting after paragraph
(7) the following:
`(8) PROCESSING FACILITY
CLOSURES-
`(A) IN GENERAL- If a sugarcane
processing facility subject to this subsection is closed and the sugarcane
growers that previously delivered sugarcane to the facility desire to deliver
their sugarcane to another processing company, the growers may petition
the Secretary to modify existing allocations to allow the delivery.
`(B) INCREASED ALLOCATION
FOR PROCESSING COMPANY- The Secretary may increase the allocation to the
processing company to which the growers desire to deliver the sugarcane,
with the approval of the processing company, to a level that does not exceed
the processing capacity of the processing company, to accommodate the change
in deliveries;
`(C) DECREASED ALLOCATION
FOR CLOSED COMPANY- The increased allocation shall be deducted from the
allocation to the company that owned the processing facility that has been
closed and the remaining allocation will be unaffected.
`(D) TIMING- The determinations
of the Secretary on the issues raised by the petition shall be made within
60 days after the filing of the petition.'.
(g) CONFORMING AMENDMENTS-
(1) Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 359aa
et seq.) is amended by striking the part heading and inserting the following:
`PART VII--FLEXIBLE MARKETING
ALLOTMENTS FOR SUGAR'.
(2) Part VII of subtitle
B of title III of the Agricultural Adjustment Act of 1938 is amended by
inserting before section 359a (7 U.S.C. 1359aa) the following:
`SEC. 359. DEFINITIONS.
`(1) MAINLAND STATE- The
term `mainland State' means a State other than an offshore State.
`(2) OFFSHORE STATE- The
term `offshore State' means a sugarcane producing State located outside
of the continental United States.
`(3) STATE- Notwithstanding
section 301, the term `State' means the 50 States, the District of Columbia,
and the Commonwealth of Puerto Rico.
`(4) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.'.
(3) Section 359g of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended--
(A) by striking `359f' each
place it appears and inserting `359f(c)';
(B) in the first sentence
of subsection (b), by striking `3 consecutive' and inserting `5 consecutive';
and
(C) in subsection (c), by
inserting `or adjusted' after `share established'.
(4) Section 359j of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359jj) is amended to striking
subsection (c).
CHAPTER 3--PEANUTS
SEC. 171. PEANUT PROGRAM.
(1) AVAILABILITY OF LOANS-
The Secretary shall make nonrecourse loans available to producers of quota
peanuts.
(2) LOAN RATE- The national
average quota loan rate for quota peanuts shall be $610 per ton.
(3) INSPECTION, HANDLING,
OR STORAGE- The loan amount may not be reduced by the Secretary by any
deductions for inspection, handling, or storage.
(4) LOCATION AND OTHER FACTORS-
The Secretary may make adjustments in the loan rate for quota peanuts for
location of peanuts and such other factors as are authorized by this section.
(5) OFFERS FROM HANDLERS-
If a producer markets a quota peanut crop, meeting quality requirements
for domestic edible use, through the marketing association loan for two
consecutive marketing years and the Secretary determines that a handler
provided the producer with a written offer, upon delivery, for the purchase
of the quota peanut crops at a price equal to or in excess of the quota
support price, the producer shall be ineligible for quota price support
for the next marketing year. The Secretary shall establish the method by
which a producer may appeal a determination under this paragraph regarding
ineligibility for quota price support.
(1) IN GENERAL- Subject
to paragraph (2), the Secretary shall make nonrecourse loans available
to producers of additional peanuts at such rates as the Secretary finds
appropriate, taking into consideration the demand for peanut oil and peanut
meal, expected prices of other vegetable oils and protein meals, and the
demand for peanuts in foreign markets.
(2) LIMITATION- The Secretary
shall establish the support rate on additional peanuts at a level estimated
by the Secretary to ensure that there are no losses to the Commodity Credit
Corporation on the sale or disposal of the peanuts.
(3) ANNOUNCEMENT- The Secretary
shall announce the loan rate for additional peanuts of each crop not later
than February 15 preceding the marketing year for the crop for which the
loan rate is being determined.
(c) Area Marketing Associations-
(1) Warehouse storage loans-
(A) IN GENERAL- In carrying
out subsections (a) and (b), the Secretary shall make warehouse storage
loans available in each of the producing areas (described in section 1446.95
of title 7 of the Code of Federal Regulations (January 1, 1989)) to a designated
area marketing association of peanut producers that is selected and approved
by the Secretary and that is operated primarily for the purpose of conducting
the loan activities. The Secretary may not make warehouse storage loans
available to any cooperative that is engaged in operations or activities
concerning peanuts other than those operations and activities specified
in this section and section 358e of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1359a).
(B) ADMINISTRATIVE AND SUPERVISORY
ACTIVITIES- An area marketing association shall be used in administrative
and supervisory activities relating to loans and marketing activities under
this section and section 358e of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359a).
(C) ASSOCIATION COSTS- Loans
made to the association under this paragraph shall include such costs as
the area marketing association reasonably may incur in carrying out the
responsibilities, operations, and activities of the association under this
section and section 358e of the Agricultural Adjustment Act of 1938 (7
U.S.C. 1359a).
(2) Pools for quota and
additional peanuts-
(A) IN GENERAL- The Secretary
shall require that each area marketing association establish pools and
maintain complete and accurate records by area and segregation for quota
peanuts handled under loan and for additional peanuts placed under loan,
except that separate pools shall be established for Valencia peanuts produced
in New Mexico.
(B) ELIGIBILITY TO PARTICIPATE
IN NEW MEXICO POOLS-
(i) IN GENERAL- Except as
provided in clause (ii), in the case of the 1996 and subsequent crops,
Valencia peanuts not physically produced in the State of New Mexico shall
not be eligible to participate in the pools of the State.
(ii) EXCEPTION- A producer
of Valencia peanuts may enter Valencia peanuts that are produced in Texas
into the pools of New Mexico in a quantity not greater than the average
annual quantity of the peanuts that the producer entered into the New Mexico
pools for the 1990 through 1995 crops.
(C) TYPES OF PEANUTS- Bright
hull and dark hull Valencia peanuts shall be considered as separate types
for the purpose of establishing the pools.
(D) NET GAINS- Net gains
on peanuts in each pool, unless otherwise approved by the Secretary, shall
be distributed only to producers who placed peanuts in the pool and shall
be distributed in proportion to the value of the peanuts placed in the
pool by each producer. Net gains for peanuts in each pool shall consist
of the following:
(i) QUOTA PEANUTS- For quota
peanuts, the net gains over and above the loan indebtedness and other costs
or losses incurred on peanuts placed in the pool.
(ii) ADDITIONAL PEANUTS-
For additional peanuts, the net gains over and above the loan indebtedness
and other costs or losses incurred on peanuts placed in the pool for additional
peanuts.
(d) LOSSES- Losses in quota
area pools shall be covered using the following sources in the following
order of priority:
(1) TRANSFERS FROM ADDITIONAL
LOAN POOLS- The proceeds due any producer from any pool shall be reduced
by the amount of any loss that is incurred with respect to peanuts transferred
from an additional loan pool to a quota loan pool by the producer under
section 358-1(b)(8) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(b)(8)).
(2) PRODUCERS IN SAME POOL-
Further losses in an area quota pool shall be offset by reducing the gain
of any producer in the pool by the amount of pool gains attributed to the
same producer from the sale of additional peanuts for domestic and edible
export use.
(3) OFFSET WITHIN AREA-
Further losses in an area quota pool shall be offset by any gains or profits
from additional peanuts (other than separate type pools established under
subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) owned
or controlled by the Commodity Credit Corporation in that area and sold
for domestic edible use, in accordance with regulations issued by the Secretary.
This paragraph shall not apply to profits or gains from a farm with 1 acre
or less of peanut production.
(4) FIRST USE OF MARKETING
ASSESSMENTS- The Secretary shall use funds collected under subsection (g)
(except funds attributable to handlers) to offset further losses in area
quota pools. The Secretary shall transfer to the Treasury those funds collected
under subsection (g) and available for use under this paragraph that the
Secretary determines are not required to cover losses in area quota pools.
(5) CROSS COMPLIANCE- Further
losses in area quota pools, other than losses incurred as a result of transfers
from additional loan pools to quota loan pools under section 358-1(b)(8)
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)), shall
be offset by any gains or profits from quota pools in other production
areas (other than separate type pools established under subsection (c)(2)(A)
for Valencia peanuts produced in New Mexico) in such manner as the Secretary
shall by regulation prescribe.
(6) OFFSET GENERALLY- If
losses in an area quota pool have not been entirely offset under the preceding
paragraphs, further losses shall be offset by any gains or profits from
additional peanuts (other than separate type pools established under subsection
(c)(2)(A) for Valencia peanuts produced in New Mexico) owned or controlled
by the Commodity Credit Corporation and sold for domestic edible use, in
accordance with regulations issued by the Secretary. This paragraph shall
not apply to profits or gains from a farm with 1 acre or less of peanut
production.
(7) SECOND USE OF MARKETING
ASSESSMENTS- The Secretary shall use funds collected under subsection (g)
and attributable to handlers to offset further losses in area quota pools.
The Secretary shall transfer to the Treasury those funds collected under
subsection (g) and available for use under this paragraph that the Secretary
determines are not required to cover losses in area quota pools.
(8) INCREASED ASSESSMENTS-
If use of the authorities provided in the preceding paragraphs is not sufficient
to cover losses in an area quota pool, the Secretary shall increase the
marketing assessment for producers established under subsection (g) by
such an amount as the Secretary considers necessary to cover the losses.
The increased assessment shall apply only to quota peanuts in the production
area covered by the pool. Amounts collected under subsection (g) as a result
of the increased assessment shall be retained by the Secretary to cover
losses in that pool.
(e) DISAPPROVAL OF QUOTAS-
Notwithstanding any other provision of law, no loan for quota peanuts may
be made available by the Secretary for any crop of peanuts with respect
to which poundage quotas have been disapproved by producers, as provided
for in section 358-1(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C.
1358-1(d)).
(1) IN GENERAL- With respect
to peanuts under loan, the Secretary shall--
(A) promote the crushing
of peanuts at a greater risk of deterioration before peanuts of a lesser
risk of deterioration;
(B) ensure that all Commodity
Credit Corporation inventories of peanuts sold for domestic edible use
must be shown to have been officially inspected by licensed Department
inspectors both as farmer stock and shelled or cleaned in-shell peanuts;
(C) continue to endeavor
to operate the peanut program so as to improve the quality of domestic
peanuts and ensure the coordination of activities under the Peanut Administrative
Committee established under Marketing Agreement No. 146, regulating the
quality of domestically produced peanuts (under the Agricultural Adjustment
Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural
Marketing Agreement Act of 1937); and
(D) ensure that any changes
made in the peanut program as a result of this subsection requiring additional
production or handling at the farm level shall be reflected as an upward
adjustment in the Department loan schedule.
(2) EXPORTS AND OTHER PEANUTS-
The Secretary shall require that all peanuts in the domestic and export
markets fully comply with all quality standards under Marketing Agreement
No. 146.
(g) MARKETING ASSESSMENT-
(1) IN GENERAL- The Secretary
shall provide for a nonrefundable marketing assessment. The assessment
shall be made on a per pound basis in an amount equal to 1.1 percent for
each of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 1.2
percent for each of the 1997 through 2006 crops, of the national average
quota or additional peanut loan rate for the applicable crop.
(A) IN GENERAL- Except as
provided under paragraphs (3) and (4), the first purchaser of peanuts shall--
(i) collect from the producer
a marketing assessment equal to the quantity of peanuts acquired multiplied
by--
(I) in the case of each
of the 1994 and 1995 crops, .55 percent of the applicable national average
loan rate;
(II) in the case of the
1996 crop, .6 percent of the applicable national average loan rate; and
(III) in the case of each
of the 1997 through 2006 crops, .65 percent of the applicable national
average loan rate;
(ii) pay, in addition to
the amount collected under clause (i), a marketing assessment in an amount
equal to the quantity of peanuts acquired multiplied by .55 percent of
the applicable national average loan rate; and
(iii) remit the amounts
required under clauses (i) and (ii) to the Commodity Credit Corporation
in a manner specified by the Secretary.
(B) DEFINITION OF FIRST
PURCHASER- In this subsection, the term `first purchaser' means a person
acquiring peanuts from a producer except that in the case of peanuts forfeited
by a producer to the Commodity Credit Corporation, the term means the person
acquiring the peanuts from the Commodity Credit Corporation.
(3) OTHER PRIVATE MARKETINGS-
In the case of a private marketing by a producer directly to a consumer
through a retail or wholesale outlet or in the case of a marketing by the
producer outside of the continental United States, the producer shall be
responsible for the full amount of the assessment and shall remit the assessment
by such time as is specified by the Secretary.
(4) LOAN PEANUTS- In the
case of peanuts that are pledged as collateral for a loan made under this
section, the producer portion of the assessment shall be deducted from
the proceeds of the loan. The remainder of the assessment shall be paid
by the first purchaser of the peanuts. For purposes of computing net gains
on peanuts under this section, the reduction in loan proceeds shall be
treated as having been paid to the producer.
(5) PENALTIES- If any person
fails to collect or remit the reduction required by this subsection or
fails to comply with the requirements for recordkeeping or otherwise as
are required by the Secretary to carry out this subsection, the person
shall be liable to the Secretary for a civil penalty up to an amount determined
by multiplying--
(A) the quantity of peanuts
involved in the violation; by
(B) the national average
quota peanut rate for the applicable crop year.
(6) ENFORCEMENT- The Secretary
may enforce this subsection in the courts of the United States.
(h) CROPS- Subsections (a)
through (g) shall be effective only for the 1996 through 2006 crops of
peanuts.
(i) POUNDAGE QUOTAS- Sections
358-1, 358b(c), 358c(d), and 358e(i) of the Agricultural Adjustment Act
of 1938 (7 U.S.C. 1358-1, 1358b(c), 1358c(d), 1359a(i)) are amended by
striking `2002' each place it appears and inserting `2006'.
Subtitle D--Administration
SEC. 181. ADMINISTRATION.
(a) USE OF COMMODITY CREDIT
CORPORATION- The Secretary shall use the funds, facilities, and authorities
of the Commodity to carry out this title through the Commodity Credit Corporation.
(b) DETERMINATIONS BY SECRETARY-
A determination made by the Secretary under this title shall be final and
conclusive.
(1) IN GENERAL- Not later
than 90 days 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 title.
(2) PROCEDURE- The promulgation
of the regulations shall be made without regard to--
(A) the notice and comment
provisions of section 553 of title 5, United States Code;
(B) 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
(C) chapter 35 of title
44, United States Code (commonly known as the `Paperwork Reduction Act').
(3) CONGRESSIONAL REVIEW
OF AGENCY RULEMAKING- In carrying out this subsection, the Secretary shall
use the authority provided under section 808 of title 5, United States
Code.
(d) PROTECTION OF PRODUCERS-
The protection afforded by section 525 of Public Law 106-170 (7 U.S.C.
7212 note) to producers on a farm that elect to accelerate the receipt
of any payment under a production flexibility contract payable under subtitle
B of title I of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7201 et seq.) shall apply to the initial payment of counter-cyclical
payments made under section 116(b)(7)(A).
SEC. 182. COMMODITY CREDIT CORPORATION
SALES PRICE RESTRICTIONS.
(a) GENERAL SALES AUTHORITY-
The Commodity Credit Corporation may sell any commodity owned or controlled
by the Corporation at any price that the Secretary determines will maximize
returns to the Corporation.
(b) NONAPPLICATION OF SALES
PRICE RESTRICTIONS- Subsection (a) shall not apply to--
(1) a sale for a new or
byproduct use;
(2) a sale of peanuts or
oilseeds for the extraction of oil;
(3) a sale for seed or feed
if the sale will not substantially impair any loan program;
(4) a sale of a commodity
that has substantially deteriorated in quality or as to which there is
a danger of loss or waste through deterioration or spoilage;
(5) a sale for the purpose
of establishing a claim arising out of a contract or against a person that
has committed fraud, misrepresentation, or other wrongful act with respect
to the commodity;
(6) a sale for export, as
determined by the Corporation; and
(7) a sale for other than
a primary use.
(c) PRESIDENTIAL DISASTER
AREAS-
(1) IN GENERAL- Notwithstanding
subsection (a), on such terms and conditions as the Secretary may consider
in the public interest, the Corporation may make available any commodity
or product owned or controlled by the Corporation for use in relieving
distress--
(A) in any area in the United
States (including the Virgin Islands) declared by the President to be an
acute distress area because of unemployment or other economic cause, if
the President finds that the use will not displace or interfere with normal
marketing of agricultural commodities; and
(B) in connection with any
major disaster determined by the President to warrant assistance by the
Federal Government under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).
(2) COSTS- Except on a reimbursable
basis, the Corporation shall not bear any costs in connection with making
a commodity available under paragraph (1) beyond the cost of the commodity
to the Corporation incurred in--
(A) the storage of the commodity;
and
(B) the handling and transportation
costs in making delivery of the commodity to designated agencies at 1 or
more central locations in each State or other area.
(d) EFFICIENT OPERATIONS-
Subsection (a) shall not apply to the sale of a commodity the disposition
of which is desirable in the interest of the effective and efficient conduct
of the operations of the Corporation because of the small quantity of the
commodity involved, or because of the age, location, or questionable continued
storability of the commodity.
SEC. 183. COMMODITY CERTIFICATES.
(a) IN GENERAL- In making
in-kind payments under this title, the Commodity Credit Corporation may--
(1) acquire and use commodities
that have been pledged to the Commodity Credit Corporation as collateral
for loans made by the Corporation;
(2) use other commodities
owned by the Commodity Credit Corporation; and
(3) redeem negotiable marketing
certificates for cash under terms and conditions established by the Secretary.
(b) METHODS OF PAYMENT-
The Commodity Credit Corporation may make in-kind payments--
(1) by delivery of the commodity
at a warehouse or other similar facility;
(2) by the transfer of negotiable
warehouse receipts;
(3) by the issuance of negotiable
certificates, which the Commodity Credit Corporation shall exchange for
a commodity owned or controlled by the Corporation in accordance with regulations
promulgated by the Corporation; or
(4) by such other methods
as the Commodity Credit Corporation determines appropriate to promote the
efficient, equitable, and expeditious receipt of the in-kind payments so
that a person receiving the payments receives the same total return as
if the payments had been made in cash.
(1) FORM- At the option
of a person, the Commodity Credit Corporation shall make negotiable certificates
authorized under subsection (b)(3) available to the person, in the form
of program payments or by sale, in a manner that the Corporation determines
will encourage the orderly marketing of commodities pledged as collateral
for loans made by the Commodity Credit Corporation.
(2) TRANSFER- A negotiable
certificate issued in accordance with this subsection may be transferred
to another person in accordance with regulations promulgated by the Secretary.
SEC. 184. ASSIGNMENT OF PAYMENTS.
(a) IN GENERAL- The provisions
of section 8(g) of the Soil Conservation and Domestic Allotment Act (16
U.S.C. 590h(g)), relating to assignment of payments, shall apply to payments
made under this title.
(b) NOTICE- The producers
on a farm making the assignment, or the assignee, shall provide the Secretary
with notice, in such manner as the Secretary may require, of any assignment
made under this section.
SEC. 185. SUSPENSION OF PRICE
SUPPORT AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT
ACT OF 1938- The following provisions of the Agricultural Adjustment Act
of 1938 shall not be applicable to the 1996 through 2006 crops of loan
commodities, peanuts, and sugar and shall not be applicable to milk during
the period beginning on the date of enactment of this title and ending
on December 31, 2006:
(1) Parts II through V of
subtitle B of title III (7 U.S.C. 1326-1351).
(2) Subsections (a) through
(j) of section 358 (7 U.S.C. 1358).
(3) Subsections (a) through
(h) of section 358a (7 U.S.C. 1358a).
(4) Subsections (a), (b),
(d), and (e) of section 358d (7 U.S.C. 1359).
(5) Part VII of subtitle
B of title III (7 U.S.C. 1359aa-1359jj), but only with respect to sugar
marketings through fiscal year 2002.
(6) In the case of peanuts,
part I of subtitle C of title III (7 U.S.C. 1361-1368).
(7) In the case of upland
cotton, section 377 (7 U.S.C. 1377).
(8) Subtitle D of title
III (7 U.S.C. 1379a-1379j).
(9) Title IV (7 U.S.C. 1401-1407).
(b) AGRICULTURAL ACT OF
1949- The following provisions of the Agricultural Act of 1949 shall not
be applicable to the 1996 through 2006 crops of loan commodities, peanuts,
and sugar and shall not be applicable to milk during the period beginning
on the date of enactment of this title and ending on December 31, 2006:
(1) Section 101 (7 U.S.C.
1441).
(2) Section 103(a) (7 U.S.C.
1444(a)).
(3) Section 105 (7 U.S.C.
1444b).
(4) Section 107 (7 U.S.C.
1445a).
(5) Section 110 (7 U.S.C.
1445e).
(6) Section 112 (7 U.S.C.
1445g).
(7) Section 115 (7 U.S.C.
1445k).
(8) Section 201 (7 U.S.C.
1446).
(9) Title III (7 U.S.C.
1447-1449).
(10) Title IV (7 U.S.C.
1421-1433d), other than sections 404, 412, and 416 (7 U.S.C. 1424, 1429,
and 1431).
(11) Title V (7 U.S.C. 1461-1469).
(12) Title VI (7 U.S.C.
1471-1471j).
(c) SUSPENSION OF CERTAIN
QUOTA PROVISIONS- The joint resolution entitled `A joint resolution relating
to corn and wheat marketing quotas under the Agricultural Adjustment Act
of 1938, as amended', approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall
not be applicable to the crops of wheat planted for harvest in the calendar
years 1996 through 2006.
SEC. 186. CONFORMING AMENDMENTS.
(a) Section 1001 of the
Food Security Act of 1985 (7 U.S.C. 1308) is amended--
(A) by inserting `or title
I of the Agriculture, Conservation, and Rural Enhancement Act of 2001'
after `the Agricultural Market Transition Act'; and
(B) by inserting `, or covered
commodities, respectively,' after `oilseeds'; and
(2) by striking paragraph
(3) and inserting the following:
`(3) DESCRIPTION OF PAYMENTS
SUBJECT TO LIMITATION- The payments referred to in paragraph (2) are the
following:
`(A) Any gain realized by
a producer from repaying a marketing assistance loan under section 131
of the Agricultural Market Transition Act (7 U.S.C. 7231) or section 111
of the Agriculture, Conservation, and Rural Enhancement Act of 2001 for
a crop of any commodity at a lower level than the original loan rate established
for the commodity under section 132 of the Agricultural Market Transition
Act (7 U.S.C. 7232) or section 132 of the Agriculture, Conservation, and
Rural Enhancement Act of 2001, respectively.
`(B) Any loan deficiency
payment received for a commodity under section 135 of the Agricultural
Market Transition Act (7 U.S.C. 7235) or section 135 of the Agriculture,
Conservation, and Rural Enhancement Act of 2001.'.
(b) Section 1001C(a) of
the Food Security Act of 1985 (7 U.S.C. 1308-3(a)) is amended by inserting
`title I of the Agriculture, Conservation, and Rural Enhancement Act of
2001,' after `the Agricultural Market Transition Act,'.
(c) The Federal Crop Insurance
Act is amended--
(1) in section 506(h)(3)
(7 U.S.C. 1506(h)(3)--
(A) by striking `section
196 of the Agricultural Market Transition Act (7 U.S.C. 7333)' and inserting
`section 192 of the Agriculture, Conservation, and Rural Enhancement Act
of 2001'; and
(B) by striking `such section
196' and inserting `section 192 of that Act';
(2) in section 508(b)(7)(A)
(7 U.S.C. 1508(b)(7)(A)), by inserting `or title I of the Agriculture,
Conservation, and Rural Enhancement Act of 2001' after `the Agricultural
Market Transition Act';
(3) in section 508A(e) (7
U.S.C. 1508a(e)), by striking `section 196 of the Agricultural Market Transition
Act (7 U.S.C. 7333)' and inserting `section 192 of the Agriculture, Conservation,
and Rural Enhancement Act of 2001';
(4) in section 515(h)(3)(B)
(7 U.S.C. 1515(h)(3)(B)), is amended by striking clause (ii) and inserting
the following:
`(ii) The Agricultural Market
Transition Act (7 U.S.C. 7201 et seq.) and title I of the Agriculture,
Conservation, and Rural Enhancement Act of 2001, including the noninsured
crop disaster assistance program.'; and
(5) in section 522(d)(1)
(7 U.S.C. 1522(d)(1)), by striking `section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333)' and inserting `section 192 of the Agriculture,
Conservation, and Rural Enhancement Act of 2001'.
(d) Title I of the Federal
Agriculture Improvement and Reform Act of 1996 is amended--
(1) in subtitle E, by striking
sections 163 and 165 (7 U.S.C. 7283, 7285); and
(2) by striking subtitles
F, G, and H (7 U.S.C. 7301 et seq.), other than section 191 (7 U.S.C. 7331).
(e) Section 385 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7334) is amended--
(1) in subsection (a), by
inserting `, or base acres under title I of the Agriculture, Conservation,
and Rural Enhancement Act of 2001,'; and
(2) in subsection (b), by
striking paragraph (1) and inserting the following:
`(1) the termination of--
`(A) any contract acreage
and production flexibility contract under the Agricultural Market Transition
Act (7 U.S.C. 7201 et seq.); and
`(B) any base acres and
contract under title I of the Agriculture, Conservation, and Rural Enhancement
Act of 2001;'; and
(3) in subsection (c), by
inserting `and title I of the Agriculture, Conservation, and Rural Enhancement
Act of 2001' after `Agricultural Market Transition Act'.
(f) Section 1211(1)(A) of
the Food Security Act of 1985 (16 U.S.C. 3811(1)(A)) is amended by inserting
`title I of the Agriculture, Conservation, and Rural Enhancement Act of
2001,' after `the Agricultural Market Transition Act,'.
(g) Section 1221(b)(1) of
the Food Security Act of 1985 (16 U.S.C. 3811(1)(A)) is amended by inserting
`title I of the Agriculture, Conservation, and Rural Enhancement Act of
2001,' after `the Agricultural Market Transition Act,'.
(h) Section 519(b)(1) of
the Controlled Substances Act (21 U.S.C. 889(b)(1)) is amended by inserting
`the Agricultural Market Transition Act, (7 U.S.C. 7201 et seq.), title
I of the Agriculture, Conservation, and Rural Enhancement Act of 2001,'
after `the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),'.
(i) Section 3720B(a) of
title 31, United States Code, is amended by inserting `or subtitle B of
title I of the Agriculture, Conservation, and Rural Enhancement Act of
2001' after `the Agricultural Market Transition Act (7 U.S.C. 7231 et seq.)'.
(j) Effective January 1,
2004, the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) is
repealed.
SEC. 187. EFFECT OF AMENDMENTS.
(a) EFFECT ON PRIOR CROPS-
Except as otherwise specifically provided in this title and notwithstanding
any other provision of law, this title and the amendments made by this
title shall not affect the authority of the Secretary to carry out a price
support or production adjustment program for any of the 1996 through 2001
crops of an agricultural commodity established under a provision of law
in effect immediately before the date of enactment of this title.
(b) LIABILITY- A provision
of this title or an amendment made by this title shall not affect the liability
of any person under any provision of law as in effect before the date of
enactment of this title.
Subtitle E--Miscellaneous Commodity
Provisions
SEC. 191. RISK MANAGEMENT EDUCATION.
(a) IN GENERAL- In consultation
with the Commodity Futures Trading Commission, the Secretary shall provide
such education in management of the financial risks inherent in the production
and marketing of agricultural commodities as the Secretary considers appropriate.
(b) PROGRAMS- As part of
the educational activities, the Secretary may develop and implement programs
to facilitate the participation of agricultural producers in--
(1) commodity futures trading
programs;
(2) forward contracting
options; and
(3) insurance protection
programs by assisting and training producers in the usage of the programs.
(c) EXISTING AUTHORITIES
AND RESOURCES- In implementing this section, the Secretary may use existing
research and extension authorities and resources of the Department of Agriculture.
SEC. 192. ADMINISTRATION AND
OPERATION OF NONINSURED CROP ASSISTANCE PROGRAM.
(a) OPERATION AND ADMINISTRATION
OF PROGRAM-
(1) IN GENERAL- In the case
of an eligible crop described in paragraph (2), the Secretary, acting through
the Farm Service Agency (referred to in this section as the `Agency'),
shall operate a noninsured crop disaster assistance program to provide
coverage equivalent to the catastrophic risk protection otherwise available
under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).
(A) IN GENERAL- In this
section, the term `eligible crop' means each commercial crop or other agricultural
commodity (except livestock)--
(i) for which catastrophic
risk protection under section 508(b) of the Federal Crop Insurance Act
(7 U.S.C. 1508(b)) is not available; and
(ii) that is produced for
food or fiber.
(B) CROPS SPECIFICALLY INCLUDED-
The term `eligible crop' shall include floricultural, ornamental nursery,
and Christmas tree crops, turfgrass sod, seed crops, aquaculture (including
ornamental fish), and industrial crops.
(C) COMBINATION OF SIMILAR
TYPES OR VARIETIES- At the option of the Secretary, all types or varieties
of a crop or commodity, described in subparagraphs (A) and (B), may be
considered to be a single eligible crop under this section.
(3) CAUSE OF LOSS- To qualify
for assistance under this section, the losses of the noninsured commodity
shall be due to drought, flood, or other natural disaster, as determined
by the Secretary.
(b) APPLICATION FOR NONINSURED
CROP DISASTER ASSISTANCE-
(A) IN GENERAL- To be eligible
for assistance under this section, a producer shall submit an application
for noninsured crop disaster assistance at a local office of the Department.
(B) ADMINISTRATION- The
application shall be in such form, contain such information, and be submitted
not later than 30 days before the beginning of the coverage period, as
determined by the Secretary.
(2) RECORDS- To be eligible
for assistance under this section, a producer shall provide annually to
the Secretary records of crop acreage, yields, and production for each
crop, as required by the Secretary.
(3) ACREAGE REPORTS- A producer
shall provide annual reports on acreage planted or prevented from being
planted, as required by the Secretary, by the designated acreage reporting
date for the crop and location as established by the Secretary.
(1) CAUSE- To be eligible
for assistance under this section, a producer of an eligible crop shall
have suffered a loss of a noninsured commodity as the result of a cause
described in subsection (a)(3).
(2) ASSISTANCE- On making
a determination described in subsection (a)(3), the Secretary shall provide
assistance under this section to producers of an eligible crop that have
suffered a loss as a result of the cause described in subsection (a)(3).
(3) PREVENTED PLANTING-
Subject to paragraph (1), the Secretary shall make a prevented planting
noninsured crop disaster assistance payment if the producer is prevented
from planting more than 35 percent of the acreage intended for the eligible
crop because of drought, flood, or other natural disaster, as determined
by the Secretary.
(4) AREA TRIGGER- The Secretary
shall provide assistance to individual producers without any requirement
of an area loss.
(d) PAYMENT- The Secretary
shall make available to a producer eligible for noninsured assistance under
this section a payment computed by multiplying--
(1) the quantity that is
less than 50 percent of the established yield for the crop; by
(2)(A) in the case of each
of the 1996 through 1998 crop years, 60 percent of the average market price
for the crop (or any comparable coverage determined by the Secretary);
or
(B) in the case of each
of the 1999 and subsequent crop years, 55 percent of the average market
price for the crop (or any comparable coverage determined by the Secretary);
by
(3) a payment rate for the
type of crop (as determined by the Secretary) that--
(A) in the case of a crop
that is produced with a significant and variable harvesting expense, reflects
the decreasing cost incurred in the production cycle for the crop that
is--
(ii) planted but not harvested;
and
(iii) prevented from being
planted because of drought, flood, or other natural disaster (as determined
by the Secretary); and
(B) in the case of a crop
that is not produced with a significant and variable harvesting expense,
as determined by the Secretary.
(e) YIELD DETERMINATIONS-
(1) ESTABLISHMENT- The Secretary
shall establish farm yields for purposes of providing noninsured crop disaster
assistance under this section.
(2) ACTUAL PRODUCTION HISTORY-
(A) IN GENERAL- The Secretary
shall determine yield coverage using the actual production history of the
producer over a period of not less than the 4 previous consecutive crop
years and not more than 10 consecutive crop years.
(B) QUANTITY- Subject to
paragraph (3), the yield for the year in which noninsured crop disaster
assistance is sought shall be equal to the average of the actual production
history of the producer during the period considered.
(3) ASSIGNMENT OF YIELD-
If a producer does not submit adequate documentation of production history
to determine a crop yield under paragraph (2), the Secretary shall assign
to the producer a yield equal to not less than 65 percent of the transitional
yield of the producer (adjusted to reflect actual production reflected
in the records acceptable to the Secretary for continuous years), as specified
in regulations issued by the Secretary based on production history requirements.
(4) PROHIBITION ON ASSIGNED
YIELDS IN CERTAIN COUNTIES-
(I) IN GENERAL- If sufficient
data are available to demonstrate that the acreage of a crop in a county
for the crop year has increased by more than 100 percent over any year
in the preceding 7 crop years or, if data are not available, if the acreage
of the crop in the county has increased significantly from the previous
crop years, a producer must provide such detailed documentation of production
costs, acres planted, and yield for the crop year for which benefits are
being claimed as is required by the Secretary.
(II) INSUFFICIENT DOCUMENTATION-
If the Secretary determines that the documentation provided is not sufficient,
the Secretary may require documenting proof that the crop, had the crop
been harvested, could have been marketed at a reasonable price.
(ii) PROHIBITION- Except
as provided in subparagraph (B), a producer that produces a crop on a farm
located in a county described in clause (i) may not obtain an assigned
yield.
(B) EXCEPTION- A crop or
a producer shall not be subject to this subsection if--
(i) the planted acreage
of the producer for the crop has been inspected by a third party acceptable
to the Secretary; or
(ii)(I) the County Executive
Director and the State Executive Director recommend an exemption from the
requirement to the Administrator of the Agency; and
(II) the Administrator approves
the recommendation.
(5) LIMITATION ON RECEIPT
OF SUBSEQUENT ASSIGNED YIELD- A producer that receives an assigned yield
for the current year of a natural disaster because required production
records were not submitted to the local office of the Department shall
not be eligible for an assigned yield for the year of the next natural
disaster unless the required production records of the previous 1 or more
years (as applicable) are provided to the local office.
(6) YIELD VARIATIONS DUE
TO DIFFERENT FARMING PRACTICES- The Secretary shall ensure that noninsured
crop disaster assistance accurately reflects significant yield variations
due to different farming practices, such as between irrigated and nonirrigated
acreage.
(f) CONTRACT PAYMENTS- A
producer that has received a guaranteed payment for production, as opposed
to delivery, of a crop pursuant to a contract shall have the production
of the producer adjusted upward by the amount of the production equal to
the amount of the contract payment received.
(g) USE OF COMMODITY CREDIT
CORPORATION- The Secretary may use the funds of the Commodity Credit Corporation
to carry out this section.
(h) EXCLUSIONS- Noninsured
crop disaster assistance under this section shall not cover losses due
to--
(1) the neglect or malfeasance
of the producer;
(2) the failure of the producer
to reseed to the same crop in those areas and under such circumstances
where it is customary to reseed; or
(3) the failure of the producer
to follow good farming practices, as determined by the Secretary.
(i) PAYMENT AND INCOME LIMITATIONS-
(1) DEFINITIONS- In this
subsection:
(i) IN GENERAL- The term
`person' has the meaning provided the term in regulations issued by the
Secretary.
(ii) ADMINISTRATION- The
regulations shall conform, to the extent practicable, to the regulations
defining the term `person' issued under section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308).
(B) QUALIFYING GROSS REVENUES-
The term `qualifying gross revenues' means--
(i) if a majority of the
gross revenue of the person is received from farming, ranching, and forestry
operations, the gross revenue from the farming, ranching, and forestry
operations of the person; and
(ii) if less than a majority
of the gross revenue of the person is received from farming, ranching,
and forestry operations, the gross revenue of the person from all sources.
(2) PAYMENT LIMITATION-
The total amount of payments that a person shall be entitled to receive
annually under this section may not exceed $100,000.
(3) LIMITATION ON MULTIPLE
BENEFITS FOR SAME LOSS-
(A) IN GENERAL- Except as
provided in subparagraph (B), if a producer that is eligible to receive
benefits under this section is also eligible to receive assistance for
the same loss under any other program administered by the Secretary, the
producer shall be required to elect whether to receive benefits under this
section or under the other program, but not both.
(B) EXCEPTION- Subparagraph
(A) shall not apply to emergency loans under subtitle C of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961 et seq.).
(4) INCOME LIMITATION- A
person that has qualifying gross revenues in excess of the amount specified
in section 2266(a) of the Food, Agriculture, Conservation, and Trade Act
of 1990 (7 U.S.C. 1421 note) (as in effect on November 28, 1990) during
the taxable year (as determined by the Secretary) shall not be eligible
to receive any noninsured assistance payment under this section.
(5) REGULATIONS- The Secretary
shall issue regulations prescribing such rules as the Secretary determines
necessary to ensure a fair and equitable application of section 1001 of
the Food Security Act of 1985 (7 U.S.C. 1308), the general payment limitation
regulations of the Secretary, and the limitations established under this
subsection.
(1) IN GENERAL- To be eligible
to receive assistance for an eligible crop for a crop year under this section,
a producer shall pay to the Secretary (at the time at which the producer
submits the application under subsection (b)(1)) a service fee for the
eligible crop in an amount that is equal to the lesser of--
(A) $100 per crop per county;
or
(B) $300 per producer per
county, but not to exceed a total of $900 per producer.
(2) WAIVER- The Secretary
shall waive the service fee required under paragraph (1) in the case of
a limited resource farmer, as defined by the Secretary.
(3) USE- The Secretary shall
deposit service fees collected under this subsection in the Commodity Credit
Corporation Fund.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
SEC. 201. CONSERVATION SECURITY
PROGRAM.
Subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by
inserting after chapter 1 the following:
`CHAPTER 2--CONSERVATION
SECURITY AND FARMLAND PROTECTION
`Subchapter A--Conservation
Security Program
`SEC. 1238. DEFINITIONS.
`(1) BASE PAYMENT- The term
`base payment' means the amount paid to an owner or operator under a conservation
security contract that is comprised of the sum of the amounts described
in clauses (i) and (ii) of subparagraphs (B), (C), or (D) of section 1238C(b)(1),
as appropriate.
`(2) BONUS AMOUNT- The term
`bonus amount' means the amount paid to an owner or operator under a conservation
security contract consisting of the sum of the amounts described in clauses
(iii) and (iv) of subparagraph (B), of clause (iii) of subparagraph (C)
or (D), of section 1238C(b)(1), as appropriate.
`(3) CONSERVATION PRACTICE-
The term `conservation practice' means a land-based farming technique that--
`(A) requires planning,
implementation, management, and maintenance; and
`(B) promotes 1 or more
of the purposes described in section 1238A(a).
`(4) CONSERVATION SECURITY
CONTRACT- The term `conservation security contract' means a contract described
in section 1238A(e).
`(5) CONSERVATION SECURITY
PLAN- The term `conservation security plan' means a plan described in section
1238A(c).
`(6) CONSERVATION SECURITY
PROGRAM- The term `conservation security program' means the program established
under section 1238A(a).
`(7) CONTINUOUS SIGNUP-
The term `continuous signup' means land enrolled under section 1231(b)(4).
`(8) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term by section 4 of the Indian
Health Care Improvement Act (25 U.S.C. 1603).
`(9) NUTRIENT MANAGEMENT-
The term `nutrient management' means management of the quantity, source,
placement, form, and timing of the land application of nutrients and other
additions to soil on land enrolled in the conservation security program--
`(A) to achieve or maintain
adequate soil fertility for agricultural production;
`(B) to minimize the potential
for loss of environmental quality, including soil, water, fish and wildlife
habitat, and air and water quality; and
`(C) to reduce energy consumption.
`(10) RESOURCE OF CONCERN-
The term `resource of concern' means a conservation priority of a State
and locality under section 1238A(c)(3).
`(11) RESOURCE-CONSERVING
CROP- The term `resource-conserving crop' means--
`(B) a legume grown for
use as--
`(ii) seed for planting;
or
`(C) a legume-grass mixture;
`(D) a small grain grown
in combination with a grass or legume, whether interseeded or planted in
succession; and
`(E) such other plantings,
including trees and annual grasses, as the Secretary considers appropriate
for a particular area.
`(12) RESOURCE-CONSERVING
CROP ROTATION- The term `resource-conserving crop rotation' means a crop
rotation that--
`(A) includes at least 1
resource-conserving crop;
`(C) improves soil fertility
and tilth; and
`(D) interrupts pest cycles.
`(13) RESOURCE MANAGEMENT
SYSTEM- The term `resource management system' means a system of conservation
practices and management relating to land or water use that is designed
to prevent resource degradation and permit sustained use of land and water,
as defined in accordance with the Natural Resources Conservation Service
technical guide.
`(14) SECRETARY- The term
`Secretary' means the Secretary of Agriculture, acting through the Natural
Resources Conservation Service.
`(15) TIER I CONSERVATION
PRACTICE- The term `Tier I conservation practice' means a conservation
practice described in section 1238A(d)(5)(A).
`(16) TIER II CONSERVATION
PRACTICE- The term `Tier II conservation practice' means a conservation
practice described in section 1238A(d)(5)(B).
`(17) TIER III CONSERVATION
PRACTICE- The term `Tier III conservation practice' means a conservation
practice described in section 1238A(d)(5)(C).
`SEC. 1238A. CONSERVATION SECURITY
PROGRAM.
`(a) IN GENERAL- Beginning
in fiscal year 2003, the Secretary shall establish a conservation security
program to assist owners and operators of agricultural operations to promote,
as is applicable for each operation--
`(1) conservation of soil,
water, energy, and other related resources;
`(2) soil quality protection
and improvement;
`(3) water quality protection
and improvement;
`(4) air quality protection
and improvement;
`(5) soil, plant, or animal
health and well-being;
`(6) diversity of flora
and fauna;
`(7) on-farm conservation
and regeneration of biological resources, including plant and animal germplasm;
`(8) wetland restoration,
conservation, and enhancement;
`(9) wildlife habitat management,
with special emphasis on species identified by any natural heritage program
of the applicable State;
`(10) reduction of greenhouse
gas emissions and enhancement of carbon sequestration;
`(11) environmentally sound
management of invasive species;
`(12) enhancement of conservation
technology and resource management practices approved by the Secretary;
or
`(13) any similar conservation
purpose (as determined by the Secretary).
`(1) ELIGIBLE OWNERS AND
OPERATORS- To be eligible to participate in the conservation security program
(other than to receive technical assistance under section 1238C(f) for
the development of conservation security contracts), an owner or operator
shall--
`(A) develop and submit
to the Secretary, and obtain the approval of the Secretary of, a conservation
security plan that meets the requirements of subsection (c)(1); and
`(B) enter into a conservation
security contract with the Secretary to carry out the conservation security
plan.
`(A) IN GENERAL- Except
as provided in subparagraph (C)(iii), private agricultural land (including
cropland, grassland, prairie land, pasture land, and rangeland) shall be
eligible for enrollment in the conservation security program.
`(B) FORESTED LAND- Private
forested land shall be eligible for enrollment in the conservation security
program if the forested land is integrated into the agricultural operation
described in subparagraph (A), including land that is used for--
`(v) silvopasture systems;
and
`(vi) such other uses as
the Secretary may determine to be appropriate.
`(i) CONSERVATION RESERVE
PROGRAM- Land enrolled in the conservation reserve program under subchapter
B of chapter 1 shall not be eligible for enrollment in the conservation
security program except for land described in section 1231(b)(4).
`(ii) WETLANDS RESERVE PROGRAM-
Land enrolled in the wetlands reserve program established under subchapter
C of chapter 1 shall not be eligible for enrollment in the conservation
security program.
`(iii) CONVERSION TO CROPLAND-
Land that is converted to cropland after the date of enactment of this
subchapter shall not be eligible for enrollment in the conservation security
program.
`(c) CONSERVATION SECURITY
PLANS-
`(1) IN GENERAL- A conservation
security plan shall--
`(A) identify the resources
and designated land to be conserved under the conservation security plan;
`(i) the tier of conservation
practices, and the particular conservation practices to be implemented,
maintained, or improved, in accordance with subsection (d) on the land
covered by the conservation security contract for the specified term; and
`(ii) as appropriate for
the land covered by the conservation security contract, the minimum number
and scope of conservation practices described in clause (i) that are required
to be carried out on the land before the owner or operator is eligible
to receive--
`(II) a bonus amount, if
the owner or operator implements, maintains, or improves any conservation
practice in addition to the conservation practices described in clause
(i);
`(C) contain a schedule
for the implementation, maintenance, or improvement of the conservation
practices described in the conservation security plan during the term of
the conservation security contract;
`(D) meet the requirements
of the highly erodible land and wetland conservation requirements of subtitles
B and C; and
`(E) identify sustainable
economic uses to be applied to the land that--
`(i) maintain the agricultural
nature of land; and
`(ii) are consistent with
the natural resource and environmental benefits of the conservation security
plan; and
`(F) contain such other
terms as the Secretary determines to be appropriate.
`(2) COMPREHENSIVE PLANNING-
The Secretary shall encourage owners and operators that enter into conservation
security contracts--
`(A) to undertake a comprehensive
examination of the opportunities for conserving natural resources and improving
the profitability, environmental health, and quality of life in relation
to their entire agricultural operation;
`(B) to develop a long-term
strategy for implementing, monitoring, and evaluating conservation practices
and environmental results in the entire agricultural operation;
`(C) to participate in other
Federal, State, local, or private conservation programs;
`(D) to maintain the agricultural
integrity of the land; and
`(E) to adopt innovative
conservation technologies and management practices.
`(3) STATE AND LOCAL CONSERVATION
PRIORITIES- To the maximum extent practicable and in a manner consistent
with the conservation security program, each conservation security plan
shall address the minimum number of conservation priorities of the State
and locality in which the agricultural operation is located (as determined
by the State conservationist in consultation with the State technical committee
established under subtitle G and the local subcommittee of the State technical
committee) as the Secretary determines to be appropriate.
`(A) IN GENERAL- During
the development of a conservation security plan by an owner or operator
and the Secretary, the Secretary shall supply to the owner or operator
a statement of the minimum number, type, and scope of conservation practices
described in paragraph (1)(B)(ii).
`(B) APPROVAL FOR BASE PAYMENTS-
If a conservation security plan submitted to the Secretary contains the
minimum number, type, and scope of conservation practices referred to in
paragraph (1)(B)(ii)--
`(i) the Secretary may approve
the conservation security plan; and
`(ii) the owner or operator
of the conservation security plan, on approval of and compliance with the
plan, as determined by the Secretary, shall be eligible to receive a base
payment.
`(C) APPROVAL FOR BONUS
AMOUNTS- If a conservation security plan submitted to the Secretary contains
a proposal for the implementation, maintenance, or improvement of a conservation
practice that is greater than the minimum number, type, and scope of a
conservation practice referred to in paragraph (1)(B)(ii)(I), the Secretary
may increase the base payment of the owner or operator by such bonus amount
as the Secretary determines is appropriate.
`(d) CONSERVATION PRACTICES-
`(A) ESTABLISHMENT OF TIERS-
The Secretary shall establish 3 tiers of conservation practices that are
eligible for payment under a conservation security contract.
`(B) ELIGIBLE CONSERVATION
PRACTICES-
`(i) IN GENERAL- The Secretary
shall make eligible for payment under a conservation security contract
land management, vegetative, and structural practices that--
`(I) are necessary to achieve
the objectives of the conservation security plan; and
`(II) primarily provide
for and have as the primary purpose resource protection and environmental
improvement.
`(I) IN GENERAL- In determining
the eligibility of a practice described in clause (i), the Secretary shall
require the lowest cost alternatives be used to fulfill the objectives
of the conservation security plan.
`(II) LIMITATION- Notwithstanding
subclause (I), the adoption of innovative technologies shall, to the maximum
extent practicable, not be limited.
`(2) ON-FARM RESEARCH AND
DEMONSTRATION- With respect to land enrolled in the conservation security
program that will be maintained using a Tier II conservation practice or
Tier III conservation practice, the Secretary may approve a conservation
security plan that includes on-farm conservation research and demonstration
activities, including--
`(A) total farm planning;
`(B) total resource management;
`(C) integrated farming
systems;
`(D) germplasm conservation
and regeneration;
`(E) greenhouse gas reduction
and carbon sequestration;
`(F) agro-ecological restoration
and wildlife habitat restoration;
`(H) invasive species control;
`(I) energy conservation
and management;
`(J) farm and environmental
results monitoring and evaluation; or
`(K) participation in research
projects relating to water conservation and management through--
`(i) recycling or reuse
of water; or
`(ii) more efficient irrigation
of farmland.
`(3) USE OF HANDBOOK AND
GUIDES-
`(A) IN GENERAL- In determining
eligible conservation practices under the conservation security program,
the Secretary shall use the National Handbook of Conservation Practices
and the field office technical guides of the Natural Resources Conservation
Service.
`(B) CONSERVATION PRACTICE
STANDARDS- To the maximum extent practicable, the Secretary shall establish
guidance standards for implementation of eligible conservation practices
that shall include measurable goals for enhancing and preventing degradation
of resources.
`(i) IN GENERAL- After providing
notice and an opportunity for public participation, the Secretary shall
make such adjustments to the National Handbook of Conservation Practices
as are necessary to carry out this chapter.
`(ii) EFFECT ON PLAN- If
the Secretary makes an adjustment to a practice under clause (i), the Secretary
may require an adjustment to a conservation security plan in effect as
of the date of the adjustment if the Secretary determines that the plan,
without the adjustment, would significantly interfere with achieving the
purposes of the conservation security program.
`(i) IN GENERAL- Under any
of the 3 tiers of conservation practices established under paragraph (5),
the Secretary may approve requests by an owner or operator for pilot testing
of new technologies and innovative conservation practices and systems.
`(ii) INCORPORATION INTO
STANDARDS- After evaluation by the Secretary and provision of notice and
an opportunity for public participation, the Secretary may incorporate
new technologies and innovative conservation practices and systems into
the standards for implementation of conservation practices established
under paragraph (1).
`(4) TIERS- To carry out
this subsection, the Secretary shall establish the following 3 tiers of
conservation practices, the minimum requirements for which shall be determined
by the State conservationist in consultation with the State technical committee
established under subtitle G and the local subcommittee of the State technical
committee:
`(A) TIER I CONSERVATION
PRACTICES-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program that
will be maintained using Tier I conservation practices shall, at a minimum--
`(I) if applicable, address
at least 1 resource of concern to the particular agricultural operation;
`(II) apply to the total
agricultural operation or to a particular unit of the agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are newly implemented under the conservation security contract;
and
`(IV) meet applicable standards
for implementation of conservation practices established under paragraph
(4).
`(ii) CONSERVATION PRACTICES-
Tier I conservation practices shall consist of, as appropriate for the
agricultural operation of an owner or operator, 1 or more of the following
basic conservation activities:
`(I) Soil conservation,
quality, and residue management.
`(II) Invasive species management.
`(III) Fish and wildlife
habitat management, with special emphasis on species identified by any
natural heritage program of the applicable State or the appropriate State
agency.
`(IV) Fish and wildlife
conservation and enhancement.
`(V) Air quality management.
`(VI) Energy conservation
measures.
`(VII) Biological resource
conservation and regeneration.
`(VIII) Animal health management.
`(IX) Plant and animal germplasm
conservation, evaluation, and development.
`(XIV) Any other conservation
practice that the Secretary determines to be to be appropriate and comparable
to other conservation practices described in this clause.
`(iii) TIER II CONSERVATION
PRACTICES- A conservation security plan for land enrolled in the conservation
security program that will be maintained using Tier I conservation practices
may include Tier II conservation practices.
`(B) TIER II CONSERVATION
PRACTICES-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program that
will be maintained using Tier II conservation practices shall, at a minimum--
`(I) address at least 1
resource of concern, as specified in the conservation security plan covering
the total agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are newly implemented under the conservation security contract;
and
`(III) meet applicable resource
management system criteria for the chosen resource of concern of the agricultural
operation.
`(ii) CONSERVATION PRACTICES-
Tier II conservation practices shall consist of, as appropriate for the
agricultural operation of an owner or operator, 1 or more of the following
land use adjustment or protection practices:
`(I) Resource-conserving
crop rotations.
`(II) Controlled, rotational
grazing.
`(III) Conversion of portions
of cropland from a soil-depleting use to a soil-conserving use, including
production of cover crops.
`(IV) Partial field conservation
practices (including windbreaks, grass waterways, shelter belts, filter
strips, riparian buffers, wetland buffers, contour buffer strips, living
snow fences, crosswind trap strips, field borders, wildlife corridors,
and critical area planting appropriate to the agricultural operation).
`(V) Fish and wildlife habitat
conservation and restoration.
`(VI) Native grassland and
prairie protection and restoration.
`(VII) Wetland protection
and restoration.
`(VIII) Agroforestry practices
and systems.
`(IX) Any other conservation
practice involving modification of the use of land (including advanced
till practices) that the Secretary determines to be appropriate and comparable
to other conservation practices described in this clause.
`(C) TIER III CONSERVATION
PRACTICES-
`(i) IN GENERAL- A conservation
security plan for land enrolled in the conservation security program that
will be maintained using Tier III conservation practices shall, at a minimum--
`(I) address all applicable
resources of concern in the total agricultural operation;
`(aa) conservation practices
that are being implemented as of the date on which the conservation security
contract is entered into; and
`(bb) conservation
practices that are newly implemented under the conservation security contract;
and
`(III) meet applicable resource
management system criteria.
`(ii) CONSERVATION PRACTICES-
Tier III conservation practices shall consist of, as appropriate for the
agricultural operation of an owner or operator, development, implementation,
and maintenance of a conservation security plan that, over the term of
the conservation security contract--
`(I) integrates a full complement
of conservation practices to foster environmental enhancement and the long-term
sustainability of the natural resource base of an agricultural operation;
and
`(II) improves profitability
and quality of life associated with the agricultural operation.
`(e) CONSERVATION SECURITY
CONTRACTS-
`(A) IN GENERAL- On approval
of a conservation security plan of an owner or operator, the Secretary
shall enter into a conservation security contract with the owner or operator
to enroll the land covered by the conservation security plan in the conservation
security program.
`(B) REQUIRED COMPONENTS-
A conservation security contract shall specifically describe--
`(i) the minimum criteria
that an owner or operator is required to meet to receive a base payment;
and
`(ii) the minimum conservation
practices that an owner or operator is required to implement, maintain,
or improve to receive a bonus amount.
`(2) TERM- Subject to paragraphs
(3) and (4)--
`(A) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using 1 or more Tier I conservation practices shall have
a term of 5 years; and
`(B) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using a Tier II conservation practice or Tier III conservation
practice shall have a 5-year to 10-year term, as determined by the owner
or operator.
`(A) OPTIONAL MODIFICATIONS-
`(i) IN GENERAL- An owner
or operator may apply to the Secretary to modify the conservation security
plan in a manner consistent with the purposes of the conservation security
program.
`(ii) APPROVAL BY THE SECRETARY-
To be effective, any modification under clause (i)--
`(I) shall be approved by
the Secretary; and
`(II) shall authorize the
Secretary to redetermine, if necessary, the amount and timing of the payments
under the conservation security contract and section 1238C(b)(1).
`(B) OTHER MODIFICATIONS-
`(i) IN GENERAL- The Secretary
may in writing require an owner or operator to modify a conservation security
contract before the expiration of the conservation security contract if--
`(I) the Secretary determines
that a change made to the type, size, management, or other aspect of the
agricultural operation of the owner or operator would, without the modification
of the contract, significantly interfere with achieving the purposes of
the conservation security program; or
`(II) the Secretary makes
a change to the National Handbook of Conservation Practices under subsection
(d)(3)(C).
`(ii) PAYMENTS- The Secretary
may adjust the amount and timing of the payment schedule under the conservation
security contract to reflect any modifications required under this subparagraph.
`(iii) DEADLINE- The Secretary
may terminate a conservation security contract if a modification required
under this subparagraph is not submitted to the Secretary in the form of
an amended conservation security contract by the date that is 90 days after
the date on which the Secretary issues a written request for the modification.
`(iv) TERMINATION- An owner
or operator that is required to modify a conservation security contract
under this subparagraph may, in lieu of modifying the contract--
`(I) terminate the conservation
security contract; and
`(II) retain payments received
under the conservation security contract, if the owner or operator fully
complied with the terms and conditions of the conservation security contract
before termination of the contract.
`(A) IN GENERAL- At the
option of an owner or operator, the conservation security contract of the
owner or operator may be renewed, for a term described in subparagraph
(B), if--
`(i) the owner or operator
agrees to any modification of the applicable conservation security contract
that the Secretary determines to be necessary to achieve the purposes of
the conservation security program;
`(ii) the Secretary determines
that the owner or operator has complied with the terms and conditions of
the conservation security contract, including the conservation security
plan; and
`(iii) in the case of a
conservation security contract for land previously enrolled using only
Tier I conservation practices, the owner or operator agrees to increase
the level of conservation treatment on land enrolled in the conservation
security program by--
`(I) adopting new conservation
practices; or
`(II) expanding existing
practices to meet the resource management systems criteria.
`(B) TERMS OF RENEWAL- Under
subparagraph (A)--
`(i) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using only Tier I conservation practices may be renewed for
5-year terms;
`(ii) a conservation security
contract for land enrolled in the conservation security program that will
be maintained using only Tier II conservation practices or Tier III conservation
practices shall be renewed for 5-year to 10-year terms, at the option of
the owner or operator; and
`(iii) previous participation
in the conservation security program does not bar renewal more than once.
`(f) NO VIOLATION FOR NONCOMPLIANCE
DUE TO CIRCUMSTANCES BEYOND THE CONTROL OF THE OWNER OR OPERATOR- The Secretary
shall include in the conservation security contract a provision, and may
modify a conservation security contract under subsection (e)(3)(B), to
ensure that an owner or operator shall not be considered in violation of
a conservation security contract for failure to comply with the conservation
security contract due to circumstances beyond the control of the owner
or operator, including a disaster or related condition, as determined by
the Secretary.
`SEC. 1238B. DUTIES OF OWNERS
AND OPERATORS.
`Under a conservation security
contract, an owner or operator shall agree, during the term of the conservation
security contract--
`(1) to implement the applicable
conservation security plan approved by the Secretary;
`(2) to keep, and make available
to the Secretary at such times as the Secretary may request, appropriate
records showing the effective and timely implementation of the conservation
security plan;
`(3) not to engage in any
activity that would interfere with the purposes of the conservation security
plan; and
`(4) on the violation of
a term or condition of the conservation security contract--
`(A) if the Secretary determines
that the violation warrants termination of the conservation security contract--
`(i) to forfeit all rights
to receive payments under the conservation security contract; and
`(ii) to refund to the Secretary
all or a portion of the payments received by the owner or operator under
the conservation security contract, including any advance payment and interest
on the payments, as determined by the Secretary; or
`(B) if the Secretary determines
that the violation does not warrant termination of the conservation security
contract, to refund to the Secretary, or accept adjustments to, the payments
provided to the owner or operator, as the Secretary determines to be appropriate.
`SEC. 1238C. DUTIES OF THE SECRETARY.
`(a) ADVANCE PAYMENT- At
the time at which an owner or operator enters into a conservation security
contract, the Secretary shall, at the option of the owner or operator,
make an advance payment to the owner or operator in an amount not to exceed--
`(1) in the case of a contract
to maintain Tier I conservation practices, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary;
`(2) in the case of a contract
to maintain Tier II conservation practices, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary;
or
`(3) in the case of a contract
to maintain Tier III conservation practices, the greater of--
`(B) 20 percent of the value
of the annual payment under the contract, as determined by the Secretary.
`(1) CRITERIA FOR DETERMINING
AMOUNT OF PAYMENTS-
`(A) BASE RATE- In this
paragraph, the term `base rate' means the average county rental rate for
the specific land use during the 2001 crop year, or another appropriate
average county rate for the 2001 crop year, as determined by the Secretary.
`(B) PAYMENTS- A payment
for a conservation practice under this paragraph shall be determined in
accordance with subparagraphs (C) through (F).
`(C) TIER I CONSERVATION
PRACTICES- The payment for a conservation security contract covering only
Tier I conservation practices shall be comprised of the sum of the following:
`(i) An amount equal to
6 percent of the base rate for land covered by the contract.
`(ii) An amount equal to
the cost of practices described in the conservation security contract,
based on average county costs for practices for the 2001 crop year, comprised
of--
`(I) 100 percent of the
cost of the adoption of new, and the cost of maintenance of new and existing,
management practices;
`(II) 100 percent of the
cost of maintenance of existing land-based structural practices approved
by the Secretary; and
`(III)(aa) subject to item
(bb), 75 percent of the cost of adoption of new land-based structural practices
(or, in the case of a limited resource or beginning farmer or rancher (as
defined in section 343(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1991(a))), 90 percent of the cost of that adoption); or
`(bb) in a case in which
a structural practice for which a similar structural practice under the
environmental quality incentives program established under chapter 4 would
require maintenance, if the owner or operator agrees to provide, without
reimbursement, substantially equivalent maintenance, the amount specified
in item (aa).
`(iii) A bonus amount determined
by the Secretary for implementing or adopting 1 or more of the following
practices:
`(I) A practice adopted
or maintained that maximizes the objectives of the conservation security
program beyond the minimum requirements of the practices adopted or maintained.
`(II) A practice adopted
or maintained to address eligible resource and conservation concerns that
are not identified as local conservation priorities.
`(III) A practice adopted
or maintained to address national priority concerns, as determined by the
Secretary.
`(IV) Participation by the
owner or operator in a conservation research project.
`(V) Participation by the
owner or operator in a watershed or regional resource conservation plan
that involves at least 75 percent of owners or operators in a targeted
area.
`(VIII) Recordkeeping, monitoring,
and evaluation carried out by the owner or operator that furthers the purposes
of the conservation security program.
`(iv) A bonus amount determined
by the Secretary that reflects the status of an owner or operator as a
beginning farmer or rancher (as defined in section 343(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1991(a)).
`(D) TIER II CONSERVATION
PRACTICES- The payment for a conservation security contract covering Tier
II conservation practices shall be comprised of the sum of the following:
`(i) An amount equal to
11 percent of the base rate for land covered by the conservation security
contract.
`(ii) An amount equal to
the costs of practices described in the conservation security contract,
based on average county costs for practices for the 2001 crop year, described
in subparagraph (C)(ii).
`(iii) A bonus amount determined
by the Secretary in accordance with clauses (iii) and (iv) of subparagraph
(C) (including consideration of any practices adopted or maintained by
the owner or operator that exceed resource management system standards).
`(E) TIER III CONSERVATION
PRACTICES- The payment for a conservation security contract covering Tier
III conservation practices shall be comprised of the sum of the following:
`(i) An amount equal to
20 percent of the base rate for land covered by the conservation security
contract.
`(ii) An amount equal to
the costs of practices described in the conservation security contract,
based on average county costs for practices for the 2001 crop year, described
in subparagraph (C)(ii).
`(iii) A bonus amount determined
by the Secretary in accordance with subparagraph (D)(iii).
`(F) EXCLUSION OF COSTS
FOR PURCHASE OR MAINTENANCE OF EQUIPMENT OR NON-LAND BASED STRUCTURES-
A payment under this subchapter shall not include any amount for the purchase
or maintenance of equipment or a non-land based structure.
`(2) TIME OF PAYMENT- The
Secretary shall provide payments under a conservation security contract
as soon as practicable after October 1 of each fiscal year.
`(3) LIMITATION ON PAYMENTS-
`(A) IN GENERAL- Subject
to paragraphs (1), (2), (4), and (5), under a conservation security contract,
the Secretary shall, in amounts and for a term specified in the conservation
security contract and taking into account any advance payments, make an
annual payment to the individual or entity in an amount not to exceed--
`(i) in the case of a contract
to maintain Tier I conservation practices, $20,000;
`(ii) in the case of a contract
to maintain Tier II conservation practices, $35,000; or
`(iii) in the case of a
contract to maintain Tier III conservation practices, $50,000.
`(B) LIMITATION ON NONBONUS
PAYMENTS- In applying the payment limitation under each of clauses (i),
(ii), and (iii) of subparagraph (A), an individual or entity may not receive
payments described in clauses (i) and (ii) of paragraph (3)(C), (3)(D),
or (3)(E), as appropriate, in an amount that exceeds 75 percent of the
applicable payment limitation.
`(C) OTHER USDA PAYMENTS-
If an owner or operator has the same practices on the same land enrolled
in the conservation security program and 1 or more other conservation programs
administered by the Secretary, the Secretary shall include all payments,
other than payments for conservation easements, from the conservation security
program and the other conservation programs in applying the annual payment
limitations this paragraph.
`(D) NON-USDA PAYMENTS-
Payments received from a Federal program not administered by the Secretary,
or administered by any State, local, or private agricultural program, shall
not be considered an annual payment for purposes of the annual payment
limitations under this paragraph.
`(E) COMMENSURATE SHARE-
To be eligible to receive a payment under this subchapter, an individual
or entity shall make contributions of land, labor, management, equipment,
and capital to the operation of the farm that are at least commensurate
with the share of the proceeds of the operation of the individual or entity.
`(4) LAND ENROLLED IN OTHER
CONSERVATION PROGRAMS- Notwithstanding any other provision of law, if an
owner or operator has land enrolled in another conservation program administered
by the Secretary and has applied to enroll the same land in the conservation
security program, the owner or operator may elect to--
`(A) convert the contract
under the other conservation program to a conservation security contract,
without penalty, except that this subparagraph shall not apply to a long-term
or permanent conservation easement; or
`(B) have each annual payment
to the owner or operator under this subsection reduced to reflect payment
for practices the owner or operator receives under the other conservation
program, except that the annual payment under this subsection may include
incentives for qualified practices that enhance or extend the conservation
benefit achieved under the other conservation program.
`(5) WASTE STORAGE OR TREATMENT
FACILITIES- A payment to an owner or operator under this subchapter shall
not be provided for the purpose of construction or maintenance of animal
waste storage or treatment facilities or associated waste transport or
transfer devices for animal feeding operations.
`(1) IN GENERAL- The Secretary
shall promulgate regulations that--
`(A) provide that no individual
or entity, directly or indirectly, may receive payments exceeding the applicable
amount specified in subsection (a) or (b);
`(B) provide for adequate
safeguards to protect the interests of tenants and sharecroppers, including
provision for sharing payments, on a fair and equitable basis; and
`(C) prescribe such other
rules as the Secretary determines to be necessary to ensure a fair and
reasonable application of the limitations established under subsections
(a) and (b).
`(2) PENALTIES FOR SCHEMES
OR DEVICES-
`(A) IN GENERAL- If the
Secretary determines that an individual or entity has adopted a scheme
or device to evade, or that has the purpose of evading, the regulations
promulgated under paragraph (1), the individual or entity shall be ineligible
to participate in the conservation security program for the year for which
the scheme or device was adopted and each of the following 5 years.
`(B) FRAUD- If the Secretary
determines that fraud was committed in connection with the scheme or device,
the individual or entity shall be ineligible to participate in the conservation
security program for the year for which the scheme or device was adopted
and each of the following 10 years.
`(1) IN GENERAL- Subject
to section 1238B, the Secretary shall allow an owner or operator to terminate
the conservation security contract.
`(2) PAYMENTS- The owner
or operator may retain any or all payments received under a terminated
conservation security contract if--
`(A) the owner or operator
is in full compliance with the terms and conditions (including any maintenance
requirements) of the conservation security contract as of the date of the
termination; and
`(B) the Secretary determines
that termination of the contract will not defeat the goals described in
the conservation security plan of the owner or operator.
`(e) TRANSFER OR CHANGE
OF INTEREST IN LAND SUBJECT TO CONSERVATION SECURITY CONTRACT-
`(1) IN GENERAL- Except
as provided in paragraph (2), the transfer, or change in the interest,
of an owner or operator in land subject to a conservation security contract
shall result in the termination of the conservation security contract.
`(2) TRANSFER OF DUTIES
AND RIGHTS- Paragraph (1) shall not apply if, not later than 60 days after
the date of the transfer or change in the interest in land, the transferee
of the land provides written notice to the Secretary that all duties and
rights under the conservation security contract have been transferred to
the transferee.
`(f) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- For each
fiscal year, the Secretary shall provide technical assistance to owners
and operators for the development and implementation of conservation security
contracts, in an amount not to exceed 20 percent of funds expended for
the fiscal year.
`(2) COORDINATION BY THE
SECRETARY- The Secretary shall provide overall technical coordination and
leadership for the conservation security program, including final approval
of all conservation security plans.
`(g) CONSERVATION SECURITY
PILOT PROGRAM-
`(1) IN GENERAL- The Secretary,
in cooperation with appropriate State agencies, may establish a pilot program
to demonstrate and evaluate the implementation of a conservation security
program in a State described in paragraph (2).
`(2) ELIGIBLE STATE- The
State referred to in paragraph (1) is a State selected by the Secretary--
`(A) in consultation with
the Committee on Agriculture, Nutrition, and Forestry of the Senate; and
`(B) after taking into consideration--
`(i) the percentage of private
working land in the State; and
`(ii) infrastructure in
the State that is available to implement the pilot program under paragraph
(1).'.
SEC. 202. FUNDING.
Section 1241 of the Food
Security Act of 1985 (16 U.S.C. 3841) is amended by adding at the end the
following:
`(c) CONSERVATION SECURITY
PROGRAM- Of the funds of the Commodity Credit Corporation, the Corporation
shall make available such sums as are necessary to carry out subchapter
A of chapter 2 (including the provision of technical assistance).'.
SEC. 203. PARTNERSHIPS AND COOPERATION.
Section 1243 of the Food
Security Act of 1985 (16 U.S.C. 3843) is amended by adding at the end the
following:
`(f) PARTNERSHIPS AND COOPERATION-
`(1) IN GENERAL- In carrying
out any program under subtitle D, the Secretary may designate special projects,
as recommended by the State Conservationist, with advice from the State
technical committee, to enhance technical and financial assistance provided
to producers to address environmental issues affected by agricultural production
with respect to--
`(A) meeting the purposes
of--
`(i) the Federal Water Pollution
Control Act (33 U.S.C. 1251 et seq.) or comparable State laws in impaired
or threatened watersheds;
`(ii) the Safe Drinking
Water Act (42 U.S.C. 300f et seq.) or comparable State laws in watersheds
providing water for drinking water supplies; or
`(iii) the Clean Air Act
(42 U.S.C. 7401 et seq.) or comparable State laws; or
`(B) watersheds of special
significance or other geographic areas of environmental sensitivity, such
as wetland (including State or multi-State projects to facilitate surface
and ground water conservation, to protect water quality, or for protection
of endangered or threatened species or habitat, such as conservation corridors).
`(2) INCENTIVES- To realize
the objectives of the special projects under paragraph (1), the Secretary
may provide incentives to producers participating in the special projects
to encourage partnerships and sharing of technical and financial resources
among producers and among producers and governmental and nongovernmental
organizations.
`(A) IN GENERAL- The Secretary
may enter into agreements with States to allow greater flexibility to adjust
the application of eligibility criteria, approved practices, innovative
conservation practices, and other elements of the programs under this subtitle
to better reflect unique local circumstances and goals in a manner that
is consistent with--
`(i) environmental enhancement
and long term sustainability of the natural resource base; and
`(ii) the purposes of this
subtitle.
`(B) PLAN- Each party to
an agreement under subparagraph (A) shall submit to the Secretary, for
approval by the Secretary, a special project area or priority area program
plan for each program to be carried out by the party that includes--
`(i) a description of the
proposed adjustments to program implementation (including a description
of how those adjustments will accelerate the achievement of environmental
benefits);
`(ii) an analysis of the
contribution those adjustments will make to the effectiveness of programs
in achieving the purposes of the special project or priority area program;
`(iii) a timetable for reevaluating
the need for or performance of those proposed adjustments;
`(iv) a description of non-Federal
programs and resources that will contribute to achieving the objectives
of the special project or priority area program; and
`(v) a plan for regular
monitoring, evaluation, and reporting of progress toward the objectives
of the special project or priority area program.
`(4) UNUSED FUNDING- Any
funds made available for a fiscal year under this subsection that are not
obligated by September 30 of the fiscal year may be used to carry out other
activities under this chapter during future fiscal years.'.
SEC. 204. ADMINISTRATIVE REQUIREMENTS
FOR CONSERVATION PROGRAMS.
Subtitle E of title XII
of the Food Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended by
adding at the end the following:
`SEC. 1244. ADMINISTRATIVE REQUIREMENTS
FOR CONSERVATION PROGRAMS.
`(a) GOOD FAITH RELIANCE-
`(1) IN GENERAL- Notwithstanding
any other provision of law, except as provided in paragraph (4), the Secretary
shall provide equitable relief to an owner or operator that has entered
into a contract under a conservation program administered by the Secretary,
and that is subsequently determined to be in violation of the contract,
if the owner or operator in attempting to comply with the terms of the
contract and enrollment requirements--
`(A) took actions in good
faith reliance on the action or advice of an employee of the Secretary;
and
`(B) had no knowledge that
the actions taken were in violation of the contract.
`(2) TYPES OF RELIEF- The
Secretary shall--
`(A) to the extent the Secretary
determines that an owner or operator has been injured by good faith reliance
described in paragraph (1), allow the owner or operator--
`(i) to retain payments
received under the contract;
`(ii) to continue to receive
payments under the contract;
`(iii) to keep all or part
of the land covered by the contract enrolled in the applicable program
under this chapter;
`(iv) to reenroll all or
part of the land covered by the contract in the applicable program under
this chapter; or
`(v) to receive any other
equitable relief the Secretary considers appropriate; and
`(B) require the owner or
operator to take such actions as are necessary to remedy any failure to
comply with the contract.
`(3) RELATIONSHIP TO OTHER
LAW- The authority to provide relief under this subsection shall be in
addition to any other authority provided in this or any other Act.
`(4) EXCEPTIONS- This section
shall not apply to--
`(A) any pattern of conduct
in which an employee of the Secretary takes actions or provides advice
with respect to an owner or operator that the employee and the owner or
operator know are inconsistent with applicable law (including regulations);
or
`(B) an owner or operator
takes any action, independent of any advice or authorization provided by
an employee of the Secretary, that the owner or operator knows or should
have known to be inconsistent with applicable law (including regulations).
`(5) APPLICABILITY OF RELIEF-
Relief under this section shall be available for contracts in effect on
the date of enactment of this section.
`(b) EDUCATION, OUTREACH,
MONITORING, AND EVALUATION- In carrying out any conservation program administered
by the Secretary, the Secretary--
`(1) shall provide education,
outreach, monitoring, evaluation, and related services to agricultural
producers (including owners and operators of small and medium-sized farms,
socially disadvantaged agricultural producers, and limited resource agricultural
producers);
`(2) may enter into contracts
with private nonprofit, community-based organizations and educational institutions
with demonstrated experience in providing the services described in paragraph
(1), to provide those services; and
`(3) shall use such sums
as are necessary from funds of the Commodity Credit Corporation to carry
out activities described in paragraphs (1) and (2).
`(c) SOCIALLY DISADVANTAGED
AND LIMITED RESOURCE OWNERS AND OPERATORS- The Secretary shall provide
outreach, training, and technical assistance specifically to encourage
and assist socially disadvantaged and limited resource owners and operators
to participate in conservation programs administered by the Secretary.
`(d) PROGRAM EVALUATION-
The Secretary shall maintain data concerning conservation security plans,
conservation practices planned or implemented, environmental outcomes,
economic costs, and related matters under conservation programs administered
by the Secretary.
`(e) MEDIATION AND INFORMAL
HEARINGS- If the Secretary makes a decision under a conservation program
administered by the Secretary that is adverse to an owner or operator,
at the request of the owner or operator, the Secretary shall provide the
owner or operator with mediation services or an informal hearing on the
decision.
`(f) EXEMPTION FROM AUTOMATIC
SEQUESTER- Notwithstanding any other provision of law, no order issued
for any fiscal year under section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 902) shall affect any payment a conservation
program administered by the Secretary.
`(g) REPORTS- Not later
than 18 months after the date of enactment of this subsection and at the
end of each 2-year period thereafter, the Secretary shall submit to Congress
a report evaluating the results of each conservation program administered
by the Secretary, including--
`(1) an evaluation of the
scope, quality, and outcomes of the conservation practices carried out
under the program; and
`(2) recommendations for
achieving specific and quantifiable improvements for the purposes of each
of the programs.
`(h) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- Under any
conservation program administered by the Secretary, subject to paragraph
(2), technical assistance provided by persons certified under paragraph
(3) (including farmers and ranchers) may include--
`(A) conservation planning;
`(B) design, installation,
and certification of conservation practices;
`(C) training for producers;
and
`(D) such other activities
as the Secretary determines to be appropriate.
`(A) IN GENERAL- The Secretary
may contract directly with qualified persons not employed by the Department
to provide conservation technical assistance.
`(B) PAYMENT BY SECRETARY-
`(i) IN GENERAL- The Secretary
may provide a payment or voucher to an owner or operator enrolled in a
conservation program administered by the Secretary if the owner or operator
chooses to obtain technical assistance from a person certified to provide
technical assistance under this section.
`(ii) DETERMINATION- In
determining whether to provide a payment or voucher under clause (i), the
Secretary shall seek to maximize the assistance received from qualified
persons to most expeditiously and efficiently achieve the objectives of
this title.
`(3) CERTIFICATION OF PRIVATE
PROVIDERS OF TECHNICAL ASSISTANCE-
`(A) ESTABLISHMENT OF PROCEDURES-
The Secretary shall establish procedures for certifying persons not employed
by the Department to provide technical assistance in planning, designing,
or certifying any aspect of a particular project under any conservation
program administered by the Secretary to agricultural producers and landowners
participating, or seeking to participate, in conservation programs administered
by the Secretary.
`(B) STANDARDS- The Secretary
shall establish standards for the conduct of--
`(i) the certification process
conducted by the Secretary; and
`(ii) periodic recertification
by the Secretary of providers.
`(C) CERTIFICATION REQUIRED-
A provider may not provide to any producer technical assistance described
in subparagraph (B) unless the provider is certified by the Secretary.
`(i) IN GENERAL- In exchange
for certification or recertification, a private provider shall pay a fee
to the Secretary in an amount determined by the Secretary.
`(ii) ACCOUNT- A fee paid
to the Secretary under clause (i) shall be--
`(I) credited to the account
in the Treasury that incurs costs relating to implementing this section;
and
`(II) made available to
the Secretary for use for conservation programs administered by the Secretary,
without further appropriation, until expended.
`(F) OTHER REQUIREMENTS-
The Secretary may establish such other requirements as the Secretary determines
are necessary to carry out this subsection.
`(1) IN GENERAL- In accordance
with section 552(b)(3) of title 5, United States Code, to maintain confidentiality,
the Secretary shall not release or disclose publicly the conservation plan
of an owner or operator under any component of a conservation program administered
by the Secretary, or any related records, unless the Secretary--
`(A) releases the information
in an anonymous or aggregated form; and
`(B) obtains the consent
of the owner or operator prior to releasing the information.
`(2) APPLICABILITY TO OTHER
FEDERAL AGENCIES- The confidentiality restrictions described in paragraph
(1) shall apply to any Federal agency that obtains from the Secretary any
plan or record described in that paragraph.
`(j) INDIAN TRIBES- In carrying
out any conservation program administered by the Secretary on land under
the jurisdiction of an Indian tribe, the Secretary shall cooperate with
the tribal government of the Indian tribe to ensure, to the maximum extent
practicable, that the program is administered--
`(1) in a fair and equitable
manner; and
`(2) in accordance with
any Federal law (including a regulation) applicable to the Indian tribe.
`(k) BEGINNING FARMERS AND
RANCHERS AND INDIAN TRIBES- In carrying out any conservation program administered
by the Secretary, the Secretary may provide to beginning farmers and ranchers
(as identified by the Secretary) and Indian tribes, incentives to participate
in the conservation program to--
`(1) foster new farming
opportunities; and
`(2) enhance environmental
stewardship over the long term.'.
SEC. 205. REFORM AND CONSOLIDATION
OF CONSERVATION PROGRAMS.
(a) IN GENERAL- The Secretary
of Agriculture shall develop a plan for--
(1) consolidating conservation
programs administered by the Secretary that are targeted at agricultural
land; and
(2) to the maximum extent
practicable--
(A) designing forms that
are applicable to all such conservation programs;
(B) reducing and consolidating
paperwork requirements for such programs;
(C) developing universal
classification systems for all information obtained on the forms that can
be used by other agencies of the Department of Agriculture;
(D) ensuring that the information
and classification systems developed under this paragraph can be shared
with other agencies of the Department through computer technologies used
by agencies; and
(E) developing 1 format
for a conservation plan that can be applied to all conservation programs
targeted at agricultural land.
(b) REPORT- Not later than
180 days after the date of enactment of this Act, the Secretary shall submit
to the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes the plan developed under subsection (a), including
any recommendations for implementation of the plan.
(c) NATIONAL CONSERVATION
PLAN- Not later than 180 days after the date of enactment of this Act,
the Secretary shall submit to the Committee on Agriculture, Nutrition,
and Forestry of the Senate a plan and estimated budget for implementing
the appraisal of the soil, water, and related resources of the Nation contained
in the National Conservation Program under section 5 of the Soil and Water
Resources Conservation Act of 1977 (16 U.S.C. 2004) as the primary vehicle
for managing conservation on agricultural land in the United States.
SEC. 206. CONSERVATION SECURITY
PROGRAM REGULATIONS.
Beginning on the date of
enactment of this Act, the Secretary of Agriculture may promulgate regulations
and carry out other actions relating to the implementation of the conservation
security program under subchapter A of chapter 2 of subtitle D of title
XII of the Food Security Act of 1985 (as added by section 201).
SEC. 207. CONFORMING AMENDMENTS.
(a) Section 1230 of the
Food Security Act of 1985 (16 U.S.C. 3830) is amended by striking `ECARP'
each place it appears and inserting `CCEP'.
(b) Section 1230A of the
Food Security Act of 1985 (16 U.S.C. 3830a) is repealed.
(c) Section 1243 of the
Food Security Act of 1985 (16 U.S.C. 3843) is amended by striking the section
heading and inserting the following:
`SEC. 1243. ADMINISTRATION OF
CCEP.'.
Subtitle B--Program Extensions
SEC. 211. COMPREHENSIVE CONSERVATION
ENHANCEMENT PROGRAM.
(a) IN GENERAL- Section
1230(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3830(a)(1)) is amended
by striking `2002' and inserting `2006'.
(b) FUNDING- Section 1241(a)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended--
(1) by striking `2002' and
inserting `2006';
(2) by inserting `(including
the provision of technical assistance)' after `the programs'; and
(3) in paragraph (2), by
striking `subchapter C' and inserting `subchapters C and D'.
SEC. 212. CONSERVATION RESERVE
PROGRAM.
(1) IN GENERAL- Section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended--
(A) in subsections (a),
(b)(3), and (d), by striking `2002' each place it appears and inserting
`2006'; and
(B) in subsection (h)(1),
by striking `the 2001 and 2002' and inserting `each of the 2002 through
2006'.
(2) DUTIES OF OWNERS AND
OPERATORS- Section 1232(c) of the Food Security Act of 1985 (16 U.S.C.
3832(c)) is amended by striking `2002' and inserting `2006'.
(b) CONSERVATION PRIORITY
AREAS-
(1) IN GENERAL- Section
1230(c) of the Food Security Act of 1985 (16 U.S.C. 3830(c)) is amended
by adding at the end the following:
`(4) PRIORITY- In designating
conservation priority areas under paragraph (1), the Secretary shall give
priority to areas in which designated land would facilitate the most rapid
completion of projects that--
`(A) are ongoing as of the
date of the application; and
`(B) meet the objectives
of a program established under this title.'.
(2) ELIGIBILITY- Section
1231(b) of the Food Security Act is amended--
(A) by striking paragraph
(1) and inserting the following:
`(1) highly erodible cropland
that--
`(A)(i) if permitted to
remain untreated could substantially reduce the production capability for
future generations; or
`(ii) cannot be farmed in
accordance with a conservation plan that complies with the requirements
of subtitle B; and
`(B) the Secretary determines
had a cropping history or potential for cropping for 3 of the 6 years preceding
the date of enactment of the Agriculture, Conservation, and Rural Enhancement
Act of 2001 (except for land enrolled in the conservation reserve program
on that date);';
(i) by striking `croplands'
each place it appears and inserting `lands'; and
(ii) by striking the period
at the end and inserting `; and'; and
(C) by adding at the end
the following:
`(5) the portion of land
in a field not enrolled in the conservation reserve where more than 50
percent of the land in the field is enrolled as a buffer, if the land is
enrolled as part of the buffer.'.
(3) CRP PRIORITY AREAS-
Section 1231(f) of the Food Security Act of 1985 (16 U.S.C. 3831(f)) is
amended by adding at the end the following:
`(5) PRIORITY- In designating
conservation priority areas under paragraph (1), the Secretary shall give
priority to areas in which designated land would facilitate the most rapid
completion of projects that--
`(A) are ongoing as of the
date of the application; and
`(B) meet the objectives
of the program established under this subchapter.'.
(c) MAXIMUM ENROLLMENT-
Section 1231(d) of the Food Security Act of 1985 (16 U.S.C. 3831(d)) is
amended--
(1) by striking `The Secretary'
and inserting the following:
`(1) IN GENERAL- The Secretary';
(2) by striking `36,400,000'
and inserting `40,000,000'; and
(3) by adding at the end
the following:
`(2) RESERVATION- Of the
acres maintained under paragraph (1), the Secretary shall reserve not less
than 4,000,000 acres under--
`(A) a program of conservation
activities described in a notice issued on March 24, 1998 (63 Fed. Reg.
14109) or a successor program; or
`(B) the conservation reserve
enhancement program described in a notice issued on May 27, 1998 (63 Fed.
Reg. 28965) or a successor program.'.
(d) DURATION OF CONTRACTS;
HARDWOOD TREES- Section 1231(e) of the Food Security Act of 1985 (16 U.S.C.
3831(e)) is amended--
(1) in paragraph (1), by
striking `shall enter into contracts of not less than 10, nor more than
15, years.' and inserting the following: `may enter into contracts--
`(A) for permanent easements
on land enrolled in the conservation reserve program that is not covered
by a hardwood tree contract, covering not to exceed 3,000,000 acres, for
30 or more years; and
`(B) covering any remaining
acreage, with terms of not less than 10, nor more than 15, years.'; and
(A) by striking `In the'
and inserting the following:
`(A) IN GENERAL- In the';
(B) by striking `The Secretary'
and inserting the following:
`(B) EXISTING HARDWOOD TREE
CONTRACTS- The Secretary'; and
(C) by adding at the end
the following:
`(C) EXTENSION OF HARDWOOD
TREE CONTRACTS-
`(i) IN GENERAL- In the
case of land devoted to hardwood trees under a contract entered into under
this subchapter before the date of enactment of this subparagraph, the
Secretary may extend the contract for a term of not more than 15 years.
`(ii) BASE PAYMENTS- The
amount of a base payment for a contract extended under clause (i)--
`(I) shall be determined
by the Secretary; but
`(II) shall not exceed 50
percent of the base payment that was applicable to the contract before
the contract was extended.'.
(e) PILOT PROGRAM FOR ENROLLMENT
OF WETLAND AND BUFFER ACREAGE IN CONSERVATION RESERVE- Section 1231(h)
of the Food Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
(1) in the subsection heading,
by striking `PILOT'; and
(A) in paragraph (1), by
striking `During the 2001 and 2002 calendar years, the Secretary shall
carry out a pilot program' and inserting `During the period of calendar
years 2002 through 2006, the Secretary shall carry out a program; and
(B) in paragraph (2), by
striking `pilot'.
(f) VEGETATIVE COVER; HAYING
AND GRAZING; WIND TURBINES- Section 1232(a) of the Food Security Act of
1985 (16 U.S.C. 3832(a)) is amended--
(A) in subparagraph (A),
by striking `and' at the end;
(B) in subparagraph (B),
by inserting `and' after the semicolon at the end; and
(C) by adding at the end
the following:
`(C) in the case of marginal
pasture land, an owner or operator shall not be required to plant trees
if native prairie grass may be retained or restored;';
(A) by striking `that the
Secretary' and inserting `that';
(B) in subparagraph (A)--
(i) by striking `may permit'
and inserting `the Secretary';
(ii) by striking clause
(i) and inserting the following:
`(i) may permit haying and
grazing in accordance with subsection (f)(1);';
(iii) by striking clause
(ii) and inserting the following:
`(ii) may permit haying
or grazing on that land--
`(I) for maintenance purposes;
or
`(II) in a case in which
grazing is incidental, as determined by the Secretary; and'; and
(iv) by adding at the end
the following:
`(iii) notwithstanding the
amount of a base payment limited by section 1234(c)(2) and specified in
a contract entered into under this chapter, shall reduce the amount of
the base payment paid to an owner or operator of land used for haying or
grazing under clause (i) or (ii)(I), or on which 1 or more wind turbines
are installed under subsection (f)(2), by an amount determined by the Secretary
to be commensurate with the value of the reduction of benefit gained by
enrollment of the land in the conservation reserve program.'; and
(C) in subparagraph (B)--
(i) by striking `six projects,
no more than one of which may be in any State,' and inserting `6 projects,
not more than 1 of which may be in any State and the total acreage of which
6 projects shall not exceed 250,000 acres,'; and
(ii) in clause (iv), by
striking `harvested;' and inserting `harvested; and'; and
(iii) by striking subparagraph
(C);
(3) in paragraph (9), by
striking `and' at the end;
(4) by redesignating paragraph
(10) as paragraph (11); and
(5) by inserting after paragraph
(9) the following:
`(10) with respect to any
contract entered into after the date of enactment of the Agriculture, Conservation,
and Rural Enhancement Act of 2001--
`(A) not to produce an agricultural
commodity for the duration of the contract on any other highly erodible
land that the owner or operator owns on, or purchases on or after, that
date, unless the highly erodible land--
`(i) has a history of being
used to produce an agricultural commodity other than a forage crop; or
`(ii) is being used as a
homestead or building site at the time of purchase; and
`(B) on a violation of a
contract described in subparagraph (A), to be subject to the sanctions
under paragraph (5); and'.
(g) ECONOMIC USES- Section
1232 of the Food Security Act of 1985 (8906 U.S.C. 3832) is amended by
adding at the end the following:
`(f) ADDITIONAL ECONOMIC
USES-
`(A) IN GENERAL- The Secretary
may permit haying and grazing on land enrolled in the conservation reserve
program in accordance with this paragraph and a haying and grazing management
plan approved by the Secretary.
`(B) CONDITIONS- An owner
or operator of a tract of land enrolled in the conservation reserve program
may hay or graze the tract--
`(i)(I) not more than once
in every 3-year period, as determined by the Secretary, if the entire tract
is hayed or grazed; or
`(II) in the case of a portion
of the tract not to exceed 1/3 of the tract each year, if--
`(aa) the tract consists
of at least 80 acres; and
`(bb) the portion of the
tract used for haying or grazing is not reused until such time as the remainder
of the tract is used for haying and grazing;
`(ii) in accordance with
requirements developed by the State Technical Committee under subparagraph
(C);
`(iii) if all hay (including
bales) is removed from the tract not later than October 1 of the applicable
year;
`(iv) if the unused portion
of each tract is left in a single contiguous block; and
`(v) the haying or grazing
does not defeat any objective of the conservation reserve program.
`(C) STATE TECHNICAL COMMITTEE
REQUIREMENTS- Taking into consideration the purposes of the conservation
reserve program, the State Technical Committee of the State in which a
tract used for haying or grazing under this paragraph is located shall--
`(i) develop appropriate
requirements for vegetative management on land enrolled in the conservation
reserve program; and
`(ii) identify periods during
which haying and grazing under this paragraph may be conducted.
`(A) IN GENERAL- Subject
to subparagraph (B), the Secretary may permit an owner or operator of land
that is enrolled in the conservation reserve program, but that is not enrolled
under continuous signup (as defined in section 1238) to install wind turbines
on the land.
`(B) NUMBER; LOCATION- The
Secretary shall determine the number and location of wind turbines that
may be installed on a tract of land under subparagraph (A), taking into
account--
`(i) the location, size,
and other physical characteristics of the land;
`(ii) the extent to which
the land contains wildlife and wildlife habitat; and
`(iii) the purposes of the
conservation reserve program.'.
(h) PRIORITY FOR STATE EASEMENT
PROGRAMS- Section 1234(c)(3) of the Food Security Act of 1985 (16 U.S.C.
3834(c)(3)) is amended--
(1) by striking `Secretary
may' and inserting `Secretary';
(2) in subparagraph (A)--
(A) by striking `take into'
and inserting `may take into'; and
(B) by striking `and' at
the end;
(3) in subparagraph (B)--
(A) by striking `establish'
and inserting `may establish'; and
(B) by striking the period
at the end and inserting `; and'; and
(4) by adding at the end
the following:
`(C) shall give priority
to offers from owners and operators under section 1231(e)(1) from States
in which a State program to provide technical or other assistance relating
to permanent easements is in effect.'.
(i) ADDITIONAL ELIGIBLE
PRACTICES- Section 1234 of the Food Security Act of 1985 (16 U.S.C. 3834)
is amended by adding at the end the following:
`(1) IN GENERAL- Subject
to paragraph (2), the Secretary shall provide signing incentive payments
under the conservation reserve program to owners and operators that implement
a practice for--
`(A) the preservation of
shallow water areas for wildlife;
`(B) the establishment of
permanent vegetative cover, such as contour grass strips and cross-wind
trap strips; or
`(C) the preservation of
wellhead protection areas.
`(2) OTHER PRACTICES- The
Secretary shall administer paragraph (1) in a manner that does not reduce
the amount of payments made by the Secretary for other practices under
the conservation reserve program.'.
(j) COUNTY PARTICIPATION-
Section 1243(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3843(b)(1))
is amended by striking `The Secretary' and inserting `Except for land enrolled
under continuous signup or under the conservation reserve enhancement program
described in a notice issued on May 27, 1998 (63 Fed. Reg. 28965) (or a
successor program), the Secretary'.
(k) STUDY ON ECONOMIC EFFECTS-
Not later than 270 days after the date of enactment of this Act, the Secretary
of Agriculture shall submit to the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that describes the economic effects
on rural communities resulting from the conservation reserve program established
under subchapter B of chapter 1 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3831 et seq.).
SEC. 213. WETLANDS RESERVE PROGRAM.
(a) TECHNICAL ASSISTANCE-
Section 1237(a) of the Food Security Act of 1985 (16 U.S.C. 3837(a)) is
amended by inserting `(including the provision of technical assistance)'
before the period at the end.
(b) MAXIMUM ENROLLMENT-
Section 1237(b)(1) of the Food Security Act of 1985 (16 U.S.C. 3837(b)(1))
is amended--
(1) by striking `The total
number' and all that follows through the end of the paragraph and inserting
the following: `Not more than 250,000 acres may be enrolled in the wetlands
reserve program in any calendar year.'.
(c) REAUTHORIZATION- Section
1237(c) of the Food Security Act of 1985 (16 U.S.C. 3837(c)) is amended
by striking `2002' and inserting `2006'.
SEC. 214. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM.
(a) PURPOSES- Section 1240
of the Food Security Act of 1985 (16 U.SC. 3839aa) is amended to read as
follows:
`SEC. 1240. PURPOSES.
`The purposes of the environmental
quality incentives program established by this chapter are--
`(1) to maximize environmental
benefits per dollar expended; and
`(A) flexible technical
and financial assistance to farmers and ranchers that face the most serious
threats to soil, water, and related natural resources, including grazing
lands, wetlands, and wildlife habitat;
`(B) assistance to farmers
and ranchers in--
`(i) complying with this
title;
`(ii) carrying out environmental
enhancement; and
`(iii) implementing means
of energy production that are consistent with the program established under
this chapter;
`(C) assistance to farmers
and ranchers in making beneficial, cost-effective changes to cropping systems,
grazing management, manure, nutrient, pest, or irrigation management, land
uses, or other measures needed to conserve and improve soil, water, and
related natural resources; and
`(D) assistance in the consolidation
and simplification of the conservation planning process to reduce administrative
burdens on producers.'.
(b) STRUCTURAL PRACTICES
ELIGIBLE FOR FINANCIAL ASSISTANCE- Section 1240A of the Food Security Act
of 1985 (16 U.S.C. 3839aa-1) is amended--
(1) by redesignating paragraph
(5) as paragraph (6);
(2) in paragraph (1), by
inserting `private' after `means';
(3) by inserting after paragraph
(4) the following:
`(5) SECRETARY- The term
`Secretary' means the Secretary of Agriculture, acting through the Natural
Resources Conservation Service.'; and
(4) in paragraph (6)(A)
(as redesignated by paragraph (1)), by inserting `on eligible land' after
`practice'.
(c) INNOVATIVE TECHNOLOGIES-
(1) DEFINITION OF INNOVATIVE
TECHNOLOGY- Section 1240A of the Food Security Act of 1985 (16 U.S.C. 3839aa-1)
is amended--
(A) by redesignating paragraphs
(2) through (5) as paragraphs (3) through (6), respectively; and
(B) by inserting after paragraph
(1) the following:
`(2) INNOVATIVE TECHNOLOGY-
The term `innovative technology' includes technology that, as determined
by the Secretary--
`(A) maximizes environmental
benefits;
`(B) complements agricultural
production; and
`(C) may be adopted in a
practical manner.'.
(2) USE OF INNOVATIVE TECHNOLOGY-
Section 1240B(a)(2) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(2))
is amended by adding at the end the following:
`(3) USE OF INNOVATIVE TECHNOLOGY-
With respect to a contract under this chapter providing for financial assistance
for a confined livestock operation, the Secretary shall give priority to
a producer that uses an innovative technology in connection with a structural
practice or land management practice.'.
(d) REAUTHORIZATION- Section
1240B(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1))
is amended by striking `2002' and inserting `2006'.
(e) CONTRACTS PROVIDING
FINANCIAL ASSISTANCE FOR A STRUCTURAL PRACTICE- Section 1240B(c) of the
Food Security Act of 1985 (16 U.S.C. 3839aa-2(c)) is amended by adding
at the end the following:
`(3) MAINTENANCE OF STRUCTURES-
A contract providing for financial assistance to an owner or operator for
a structural practice--
`(A) shall require maintenance
of the structural practice for the life of the practice, regardless of
whether land covered by the contract is sold during that period; and
`(B) may be modified only
with the approval of the Secretary.
`(4) CONDITION FOR ANIMAL
WASTE MANAGEMENT FACILITIES- An owner or operator may receive financial
assistance for an animal waste management facility under this chapter only
if--
`(A) the facility is subject
to a comprehensive nutrition management plan approved by the Secretary;
and
`(B) the owner or operator
receives no cost share assistance for the facility under any other program
administered by the Secretary.'.
(f) COST-SHARE PAYMENTS-
Section 1240B(e) of the Food Security Act of 1985 (16 U.S.C. 3839aa-2(e))
is amended--
(A) in subparagraph (B)--
(i) by striking `A producer'
and inserting the following:
`(i) IN GENERAL- Except
as provided in clause (ii), a producer'; and
(ii) by adding at the end
the following:
`(ii) WAIVER- The Secretary
may provide a waiver to the limitation under clause (i) for any facility
if--
`(I) the facility is owned
by multiple producers;
`(II) the producers transfer
animals at the facility, for additional feeding or finishing, to separate
facilities owned, at least in part, by the same multiple producers;
`(III) the separate facilities,
the total number of which shall not exceed the total number of producers
that own the facilities, are not large confined animal feeding operations,
as determined by the Secretary;
`(IV) the payment or benefit
to each producer under this subsection is commensurate to the contribution
of each producer to the jointly owned operation; and
`(V) the share of a each
producer of the payment or benefit, in combination with any other payment
or benefit received under the program established under this chapter, does
not exceed the payment limits of the program.'; and
(B) by adding at the end
the following:
`(D) LIMITED-RESOURCE LIVESTOCK
OPERATIONS- Notwithstanding subparagraphs (A), (B), and (C), the Federal
share of a cost-share payment to a producer that owns or operates a limited-resource
livestock operation (as defined by the Secretary) shall be 90 percent.';
and
(2) in paragraph (3), by
striking subparagraph (C).
(g) PRIORITY FOR USE OF
INNOVATIVE PRACTICES- Section 1240C of the Food Security Act of 1985 (16
U.S.C. 3839aa-3) is amended--
(1) in paragraph (2), by
striking `or' at the end;
(2) in paragraph (3), by
striking the period at the end and inserting `; or'; and
(3) by adding at the end
the following:
`(4) are provided to producers
using innovative technologies, as determined by the Secretary.'.
(h) LIMITATION ON PAYMENTS-
Section 1240G of the Food Security Act of 1985 (16 U.S.C. 3839aa-7) is
amended by striking subsection (a) and inserting the following:
`(1) IN GENERAL- The total
amount of cost-share and incentive payments paid to a producer under this
chapter may not exceed $100,000 for the period of fiscal years 2002 through
2006.
`(2) REGULATIONS- In carrying
out this chapter, the Secretary shall promulgate regulations to ensure,
to the maximum extent practicable, that provide that no individual or entity,
directly or indirectly, may receive payments exceeding the applicable amount
specified in paragraph (1).'.
(i) FUNDING- Section 1241
of the Food Security Act of 1985 (16 U.S.C. 3841) is amended by striking
subsection (b) and inserting the following:
`(b) ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM-
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), of the funds of the Commodity Credit Corporation,
the Secretary shall make available $650,000,000 for fiscal year 2002, $800,000,000
for fiscal year 2003, $900,000,000 for fiscal year 2004, and $950,000,000
for each of fiscal years 2005 and 2006, to remain available until expended,
for providing technical assistance, cost-share payments, incentive payments,
and education under the environmental quality incentives program under
chapter 4 of subtitle D.
`(A) IN GENERAL- Of the
amounts made available under paragraph (1), the Secretary shall deposit
into the fund established by section 1240H(e) not to exceed $100,000,000
for each fiscal year.
`(B) APPLICABILITY OF OTHER
LAWS- For the purposes of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a et seq.), this subsection shall be treated as if enacted in an Act
of appropriation.
`(3) LIVESTOCK PRODUCTION-
For each of fiscal years 2002 through 2006, 50 percent of the funding available
for technical assistance, cost-share payments, incentive payments, and
education under the environmental quality incentives program shall be targeted
at practices relating to livestock production.'.
(j) LOAN PROGRAM FOR STRUCTURAL
PRACTICES- Chapter 4 of subtitle D of title XII of the Food Security Act
of 1985 is amended by striking section 1240H (16 U.S.C. 3839aa-8) and inserting
the following:
`SEC. 1240H. LOAN PROGRAM FOR
STRUCTURAL PRACTICES.
`(a) IN GENERAL- The Secretary
shall establish a loan program to provide loans to owners and producers
of confined livestock operations to assist the owners and producers in
installing structural practices under this chapter.
`(b) REQUIREMENTS- An owner
or producer that seeks to receive a loan under this section shall--
`(1) comply with requirements
of this chapter relating to the receipt of cost-share assistance (including
the submission to the Secretary of a management plan); and
`(2) submit to the Secretary,
in such form and including such information as the Secretary may require,
an application for the loan.
`(c) MAXIMUM LOAN AMOUNTS
AND RATES-
`(1) INDIVIDUAL LOANS- A
loan made to an owner or producer under this section--
`(A) shall not exceed $150,000;
and
`(B) shall have an interest
rate equal to the then current cost of money to the Government of the United
States for loans of similar maturity.
`(2) AGGREGATE ANNUAL AMOUNT-
The annual aggregate amount of loans made under this section shall not
exceed $100,000,000.
`(d) INTEREST- Interest
paid on a loan made under this section shall be credited to and become
a part of the Fund.
`(1) ESTABLISHMENT- There
is established in the Treasury of the United States a fund to be used in
carrying out the program under this section (referred to in this section
as the `Fund'), consisting of--
`(A) such amounts as are
deposited in the Fund under section 1241(b)(2);
`(B) such interest as is
paid on loans made under subsection (d); and
`(C) any interest earned
on investment of amounts in the Fund under paragraph (3).
`(2) EXPENDITURES FROM FUND-
`(A) IN GENERAL- Subject
to subparagraph (B), on request by the Secretary, the Secretary of the
Treasury shall transfer from the Fund to the Secretary such amounts as
the Secretary determines are necessary to pay the cost of loans to owners
and producers under this section.
`(B) ADMINISTRATIVE EXPENSES-
An amount not exceeding 5 percent of the amounts in the Fund shall be available
in each fiscal year to pay the administrative expenses necessary to carry
out the program under this section.
`(3) INVESTMENT OF AMOUNTS-
`(A) IN GENERAL- The Secretary
of the Treasury shall invest such portion of the Fund as is not, in the
judgment of the Secretary of the Treasury, required to meet current withdrawals.
Investments may be made only in interest-bearing obligations of the United
States.
`(B) ACQUISITION OF OBLIGATIONS-
For the purpose of investments under subparagraph (A), obligations may
be acquired--
`(i) on original issue at
the issue price; or
`(ii) by purchase of outstanding
obligations at the market price.
`(C) SALE OF OBLIGATIONS-
Any obligation acquired by the Fund may be sold by the Secretary of the
Treasury at the market price.
`(D) CREDITS TO FUND- The
interest on, and the proceeds from the sale or redemption of, any obligations
held in the Fund shall be credited to and form a part of the Fund.
`(4) TRANSFERS OF AMOUNTS-
`(A) IN GENERAL- The amounts
required to be transferred to the Fund under this section shall be transferred
at least monthly from the general fund of the Treasury to the Fund on the
basis of estimates made by the Secretary of the Treasury.
`(B) ADJUSTMENTS- Proper
adjustment shall be made in amounts subsequently transferred to the extent
prior estimates were in excess of or less than the amounts required to
be transferred.'.
SEC. 215. RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM.
Subtitle H of title XV of
the Agriculture and Food Act of 1981 (16 U.S.C. 3451 et seq.) is amended
to read as follows:
`Subtitle H--Resource Conservation
and Development Program
`SEC. 1528. DEFINITIONS.
`(1) AREA PLAN- The term
`area plan' means a resource conservation and use plan that is developed
by a council for a designated area of a State or States through a planning
process and that includes 1 or more of the following elements:
`(A) A land conservation
element, the purpose of which is to control erosion and sedimentation.
`(B) A water management
element that provides 1 or more clear environmental or conservation benefits,
the purpose of which is to provide for--
`(i) the conservation, use,
and quality of water, including irrigation and rural water supplies;
`(ii) the mitigation of
floods and high water tables;
`(iii) the repair and improvement
of reservoirs;
`(iv) the improvement of
agricultural water management; and
`(v) the improvement of
water quality.
`(C) A community development
element, the purpose of which is--
`(i) the development of
resources-based industries;
`(ii) the protection of
rural industries from natural resource hazards;
`(iii) the development of
adequate rural water and waste disposal systems;
`(iv) the improvement of
recreation facilities;
`(v) the improvement in
the quality of rural housing;
`(vi) the provision of adequate
health and education facilities;
`(vii) the satisfaction
of essential transportation and communication needs; and
`(viii) the promotion of
food security, economic development, and education.
`(D) A land management element,
the purpose of which is--
`(i) energy conservation;
`(ii) the protection of
agricultural land, as appropriate, from conversion to other uses;
`(iii) farmland protection;
and
`(iv) the protection of
fish and wildlife habitats.
`(2) BOARD- The term `Board'
means the Resource Conservation and Development Policy Advisory Board established
under section 1533(a).
`(3) COUNCIL- The term `council'
means a nonprofit entity (including an affiliate of the entity) operating
in a State that is--
`(A) established by volunteers
or representatives of States, local units of government, Indian tribes,
or local nonprofit organizations to carry out an area plan in a designated
area; and
`(B) designated by the chief
executive officer or legislature of the State to receive technical assistance
and financial assistance under this subtitle.
`(4) DESIGNATED AREA- The
term `designated area' means a geographic area designated by the Secretary
to receive technical assistance and financial assistance under this subtitle.
`(5) FINANCIAL ASSISTANCE-
The term `financial assistance' means a grant, cooperative agreement, or
loan provided by the Secretary (or the Secretary and other Federal agencies)
to a council, or association of councils, to carry out an area plan in
a designated area, including assistance provided for planning, analysis,
feasibility studies, training, education, and other activities necessary
to carry out the area plan.
`(6) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term by section 4 of the Indian
Health Care Improvement Act (25 U.S.C. 1603).
`(7) LOCAL UNIT OF GOVERNMENT-
The term `local unit of government' means--
`(A) any county, city, town,
township, parish, village, or other general-purpose subdivision of a State;
and
`(B) any local or regional
special district or other limited political subdivision of a State, including
any soil conservation district, school district, park authority, and water
or sanitary district.
`(8) NONPROFIT ORGANIZATION-
The term `nonprofit organization' means any organization that is--
`(A) described in section
501(c) of the Internal Revenue Code of 1986; and
`(B) exempt from taxation
under section 501(a) of the Internal Revenue Code of 1986.
`(9) PLANNING PROCESS- The
term `planning process' means actions taken by a council to develop and
carry out an effective area plan in a designated area, including development
of the area plan, goals, objectives, policies, implementation activities,
evaluations and reviews, and the opportunity for public participation in
the actions.
`(10) PROJECT- The term
`project' means a project that is carried out by a council to achieve any
of the elements of an area plan.
`(11) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(12) STATE- The term `State'
means any of the States, the District of Columbia, or any territory or
possession of the United States.
`(13) TECHNICAL ASSISTANCE-
The term `technical assistance' means any service provided by the Secretary
or agent of the Secretary, including--
`(A) inventorying, evaluating,
planning, designing, supervising, laying out, and inspecting projects;
`(B) providing maps, reports,
and other documents associated with the services provided;
`(C) providing assistance
for the long-term implementation of area plans; and
`(D) providing services
of an agency of the Department of Agriculture to assist councils in developing
and carrying out area plans.
`SEC. 1529. RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM.
`The Secretary shall establish
a resource conservation and development program under which the Secretary
shall provide technical assistance and financial assistance to councils
to develop and carry out area plans and projects in designated areas--
`(1) to conserve and improve
the use of land, develop natural resources, and improve and enhance the
social, economic, and environmental conditions in primarily rural areas
of the United States; and
`(2) to encourage and improve
the capability of State, units of government, Indian tribes, nonprofit
organizations, and councils to carry out the purposes described in paragraph
(1).
`SEC. 1530. SELECTION OF DESIGNATED
AREAS.
`The Secretary shall select
designated areas for assistance under this subtitle on the basis of the
elements of area plans.
`SEC. 1531. AUTHORITY OF THE
SECRETARY.
`In carrying out this subtitle,
the Secretary may--
`(1) provide technical assistance
to any council to assist in developing and implementing an area plan for
a designated area;
`(2) cooperate with other
departments and agencies of the Federal Government, States, local units
of government, local Indian tribes, and local nonprofit organizations in
conducting surveys and inventories, disseminating information, and developing
area plans;
`(3) assist in carrying
out an area plan approved by the Secretary for any designated area by providing
technical assistance and financial assistance to any council; and
`(4) enter into agreements
with councils in accordance with section 1532.
`SEC. 1532. ELIGIBILITY; TERMS
AND CONDITIONS.
`(a) ELIGIBILITY- Technical
assistance and financial assistance may be provided by the Secretary under
this subtitle to any council to assist in carrying out a project specified
in an area plan approved by the Secretary only if--
`(1) the council agrees
in writing--
`(A) to carry out the project;
and
`(B) to finance or arrange
for financing of any portion of the cost of carrying out the project for
which financial assistance is not provided by the Secretary under this
subtitle;
`(2) the project is included
in an area plan and is approved by the council;
`(3) the Secretary determines
that assistance is necessary to carry out the area plan;
`(4) the project provided
for in the area plan is consistent with any current comprehensive plan
for the area;
`(5) the cost of the land
or an interest in the land acquired or to be acquired under the plan by
any State, local unit of government, Indian tribe, or local nonprofit organization
is borne by the State, local unit of government, Indian tribe, or local
nonprofit organization, respectively; and
`(6) the State, local unit
of government, Indian tribe, or local nonprofit organization participating
in the area plan agrees to maintain and operate the project.
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), a loan made under this subtitle shall be made
on such terms and conditions as the Secretary may prescribe.
`(2) TERM- A loan for a
project made under this subtitle shall have a term of not more than 30
years after the date of completion of the project.
`(3) INTEREST RATE- A loan
made under this subtitle shall bear interest at the average rate of interest
paid by the United States on obligations of a comparable term, as determined
by the Secretary of the Treasury.
`(c) APPROVAL BY SECRETARY-
Technical assistance and financial assistance under this subtitle may not
be made available to a council to carry out an area plan unless the area
plan has been submitted to and approved by the Secretary.
`(d) WITHDRAWAL- The Secretary
may withdraw technical assistance and financial assistance with respect
to any area plan if the Secretary determines that the assistance is no
longer necessary or that sufficient progress has not been made toward developing
or implementing the elements of the area plan.
`(e) USE OF OTHER ENTITIES
AND PERSONS- A council may use another person or entity to assist in developing
and implementing an area plan and otherwise carrying out this subtitle.
`SEC. 1533. RESOURCE CONSERVATION
AND DEVELOPMENT POLICY ADVISORY BOARD.
`(a) ESTABLISHMENT- The
Secretary shall establish within the Department of Agriculture a Resource
Conservation and Development Policy Advisory Board.
`(1) IN GENERAL- The Board
shall be composed of at least 7 employees of the Department of Agriculture
selected by the Secretary.
`(2) CHAIRPERSON- A member
of the Board shall be designated by the Secretary to serve as chairperson
of the Board.
`(c) DUTIES- The Board shall
advise the Secretary regarding the administration of this subtitle, including
the formulation of policies for carrying out this subtitle.
`SEC. 1534. EVALUATION OF PROGRAM.
`(a) IN GENERAL- The Secretary,
in consultation with councils, shall evaluate the program established under
this subtitle to determine whether the program is effectively meeting the
needs of, and the objectives identified by, States, units of government,
Indian tribes, nonprofit organizations, and councils participating in,
or served by, the program.
`(b) REPORT- Not later than
December 31, 2011, the Secretary shall submit to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report describing the results of the evaluation,
together with any recommendations of the Secretary for continuing, terminating,
or modifying the program.
`SEC. 1535. LIMITATION ON ASSISTANCE.
`In carrying out this subtitle,
the Secretary shall provide technical assistance and financial assistance
to not more than 450 active designated areas.
`SEC. 1536. SUPPLEMENTAL AUTHORITY
OF THE SECRETARY.
`The authority of the Secretary
under this subtitle to assist councils in the development and implementation
of area plans shall be supplemental to, and not in lieu of, any authority
of the Secretary under any other provision of law.
`SEC. 1537. AUTHORIZATION OF
APPROPRIATIONS.
`(a) IN GENERAL- There are
authorized to be such sums as are necessary to carry out this subtitle.
`(b) LOANS- The Secretary
shall not use more than $15,000,000 of any funds made available for a fiscal
year to make loans under this subtitle.
`(c) AVAILABILITY- Funds
appropriated to carry out this subtitle shall remain available until expended.'.
SEC. 216. WILDLIFE HABITAT INCENTIVE
PROGRAM.
Chapter 5 of subtitle D
of title XII of the Food Security Act of 1985 (16 U.S.C. 3839bb et seq.)
is amended to read as follows:
`CHAPTER 5--OTHER CONSERVATION
PROGRAMS
`SEC. 1240M. WILDLIFE HABITAT
INCENTIVE PROGRAM.
`(a) DEFINITION OF PROGRAM-
In this section, the term `program' means the wildlife habitat incentive
program established under subsection (b).
`(b) ESTABLISHMENT- In consultation
with the State technical committees established under section 1261 of the
Food Security Act of 1985 (16 U.S.C. 3861), the Secretary shall establish
a program to be known as the `wildlife habitat incentive program'.
`(c) COST-SHARE PAYMENTS-
Under the program, the Secretary shall make cost-share payments to owners
of eligible land to develop wildlife habitat approved by the Secretary.
`(1) IN GENERAL- Under the
program, the Secretary shall establish procedures to acquire and enroll
eligible land in the program, for 30-year terms and permanent easements,
to assist owners of eligible land to restore and protect essential plant
and animal habitat, as determined by the Secretary.
`(A) IN GENERAL- For purposes
of enrolling an easement in the program, land to which the easement applies
shall be considered to be eligible if the Secretary, in consultation with
the appropriate State fish and wildlife departments, determines that--
`(i) the land maximizes
wildlife habitat benefits, values, and functions;
`(ii) the owner of the land
has developed a site-level habitat restoration and protection plan that
is consistent, to the maximum extent practicable, with a State habitat
conservation plan; and
`(iii) taking into consideration
the cost of the restoration, the likelihood of the successful targeted
habitat restoration described in the plan, and the resulting wildlife benefits,
merit inclusion of the land in the program.
`(B) PRIORITY FOR CERTAIN
STATE LAND- In enrolling easements in the program, the Secretary may give
priority to land identified as having priority for restoration or protection
in a State plan for the protection of essential plant and animal habitat
developed by the State technical committee, in cooperation with--
`(i) Federal and State fish
and wildlife agencies;
`(ii) members of the State
agricultural sector;
`(iii) nongovernmental conservation
organizations; and
`(iv) the natural heritage
program of the State.
`(3) INELIGIBLE LAND- The
Secretary shall not acquire or enroll in the program any easement that
is enrolled under any other Federal easement program administered by the
Secretary at the time at which the acquisition or enrollment is considered.
`(4) EASEMENTS AND AGREEMENTS-
Sections 1237A through 1237F of the Food Security Act of 1985 (16 U.S.C.
3837a through 3837f) shall apply to an easement enrolled in the program.
`(e) TECHNICAL ASSISTANCE-
The Secretary shall use not more than 8 percent of amounts made available
to carry out this section to provide technical assistance under this subsection.
`(f) FUNDING- Of the funds
of the Commodity Credit Corporation, the Secretary shall use to carry out
this section--
`(1) $50,000,000 for fiscal
year 2002;
`(2) $60,000,000 for fiscal
year 2003;
`(3) $65,000,000 for fiscal
year 2004;
`(4) $70,000,000 for fiscal
year 2005; and
`(5) $100,000,000 for fiscal
year 2006.'.
`SEC. 1240N. WATERSHED RISK
REDUCTION.
`(a) IN GENERAL- The Secretary,
acting through the Natural Resources Conservation Service (referred to
in this section as the `Secretary'), in cooperation with landowners and
land users, may carry out such projects and activities (including the purchase
of floodplain easements for runoff retardation and soil erosion prevention)
as the Secretary determines to be necessary to safeguard lives and property
from floods, drought, and the products of erosion on any watershed in any
case in which fire, flood, or any other natural occurrence is causing or
has caused a sudden impairment of that watershed.
`(b) PRIORITY- In carrying
out this section, the Secretary shall give priority to any project or activity
described in subsection (a) that is carried out on a floodplain adjacent
to a major river, as determined by the Secretary.
`(c) PROHIBITION ON DUPLICATIVE
FUNDS- No project or activity under subsection (a) that is carried out
using funds made available under this section may be carried out using
funds made available under any Federal disaster relief program relating
to floods.
`(d) FUNDING- There is authorized
to be appropriated to carry out this section $15,000,000 for each of fiscal
years 2002 through 2006.'.
SEC. 217. AGRICULTURAL LAND
PROTECTION PROGRAM.
Chapter 2 of the Food Security
Act of 1985 (as added by section 201) is amended by adding at the end the
following:
`Subchapter B--Agricultural
Land Protection Program
`SEC. 1238H. DEFINITIONS.
`(A) IN GENERAL- The term
`eligible land' means agricultural land that--
`(i)(I) has prime, unique,
or other productive soil; or
`(II) contains historical
or archaeological resources; and
`(ii) is subject to a pending
offer for purchase from--
`(I) any agency of any State
or local government or an Indian tribe (including a farmland protection
board or land resource council established under State law); or
`(II) any organization that--
`(aa) is organized for,
and at all times since the formation of the organization, has been operated
principally for, 1 or more of the conservation purposes specified in clause
(i), (ii), or (iii) of section 170(h)(4)(A) of the Internal Revenue Code
of 1986;
`(bb) is an organization
described in section 501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code;
`(cc) is described
in section 509(a)(2) of that Code; or
`(dd) is described
in section 509(a)(2) of that Code.
`(B) INCLUSIONS- The term
`eligible land' includes--
`(C) EXCLUSION- The term
`eligible land' does not include forest land.
`(2) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450b).
`(3) PROGRAM- The term `program'
means the agricultural land protection program established under section
1238I(a).
`SEC. 1238I. AGRICULTURAL LAND
PROTECTION PROGRAM.
`(a) ESTABLISHMENT- The
Secretary shall establish a program to be known as the `agricultural land
protection program', under which the Secretary shall purchase conservation
easements and other interests in eligible land.
`(b) CONDITION FOR ENROLLMENT-
Eligible land enrolled in the program shall be subject to system requirements
as described in a conservation plan--
`(1) developed in accordance
with the National Handbook of Conservation Practices and the field office
technical guides of the Natural Resources Conservation Service; and
`(2) approved by the Secretary.
`(c) PRIORITY- In enrolling
eligible land in the program, the Secretary shall give priority to eligible
land that remains in agricultural production throughout the period of enrollment.
`(1) IN GENERAL- Of the
funds of the Commodity Credit Corporation, the Secretary shall use the
amounts specified in paragraph (3) for each fiscal year to--
`(A) purchase conservation
easements (including 30-year easements, in cases in which State law limits
easements to 30 years or in which the Secretary determines that such a
term is appropriate) and other interests in eligible land, the Federal
share of which shall not exceed 50 percent;
`(B) provide such financial
assistance or incentives, in the form of a cost-share not to exceed--
`(i) 75 percent of the cost
of the assistance or incentives, as the Secretary determines are appropriate
to encourage and assist owners of eligible land with the installation and
adoption of conservation measures associated with the protection of natural
resources on the eligible land; and
`(ii) 5 percent of the total
amount made available to provide assistance or incentives; and
`(C) provide not more than
8 percent of the amount of funds made available for a fiscal year to provide
technical assistance to administer the program.
`(2) NON-FEDERAL SHARE-
In a case in which a State or local government purchases an easement under
paragraph (1)(A), not more than 25 percent of the non-Federal share of
the cost of the easement may be provided--
`(A) by a private landowner;
or
`(B) in the form of in-kind
goods or services.
`(3) AMOUNTS- The amounts
referred to in paragraph (1) are--
`(A) $175,000,000 for fiscal
year 2002;
`(B) $200,000,000 for fiscal
year 2003;
`(C) $225,000,000 for fiscal
year 2004; and
`(D) $250,000,000 for each
of fiscal years 2005 and 2006.'.
SEC. 218. GRASSLAND RESERVE
PROGRAM.
Chapter 2 of the Food Security
Act of 1985 (as amended by section 218) is amended by adding at the end
the following:
`Subchapter D--Grassland
Reserve Program
`SEC. 1238N. ESTABLISHMENT.
`(a) IN GENERAL- The Secretary,
acting through the Natural Resource Conservation Service, may establish
a grassland protection program (referred to in this subchapter as `the
program') to assist owners in restoring and protecting eligible land described
in subsection (c).
`(b) ENROLLMENT CONDITIONS-
`(1) MAXIMUM ENROLLMENT-
The total number of acres enrolled in the program shall not exceed 1,000,000
acres.
`(2) METHODS OF ENROLLMENT-
The Secretary shall enroll land in the program through--
`(A) permanent easements
or 30-year easements; or
`(B) in a State that imposes
a maximum duration for such an easement, for the maximum duration allowed
under State law.
`(c) ELIGIBLE LAND- Land
shall be eligible to be enrolled in the program if the Secretary determines
that the land is private land that is--
`(1) natural grassland (including
prairie and land covered in shrubs or forb) that is indigenous to the locality;
`(A) is located in an area
that has been historically dominated by eligible land; and
`(B) has potential to serve
as habitat for animal or plant populations of significant ecological value
if the land is restored to a natural condition; or
`(3) land that is incidental
to land described in paragraph (1) or (2), if the incidental land is determined
by the Secretary to be necessary for the efficient administration of an
easement.
`SEC. 1238O. EASEMENTS AND AGREEMENTS.
`(a) IN GENERAL- To be eligible
to enroll land in the program, the owner of the land shall enter into an
agreement with the Secretary--
`(1) to grant to the Secretary
an easement over the eligible land;
`(2) to create and record
an appropriate deed restriction in accordance with applicable State law
to reflect the easement;
`(3) to provide a written
statement of consent to the easement signed by persons holding a security
interest or any vested interest in the land;
`(4) to provide proof of
unencumbered title to the underlying fee interest in the land that is the
subject of the easement;
`(5) to comply with the
terms of the easement and restoration agreement; and
`(6) comply with a conservation
plan for the land that is--
`(A) developed in accordance
with the National Handbook of Conservation Practices and the field office
technical guides of the Natural Resources Conservation Service; and
`(B) approved by the Secretary.
`(b) TERMS OF EASEMENT-
An easement under subsection (a) shall--
`(A) grazing on the land
in a manner that is consistent with the conservation plan that does not
interfere with the protection of natural resources;
`(B) haying or mowing after
the nesting and chick-rearing season for birds only--
`(i) for management purposes;
and
`(ii) as determined to be
appropriate by the State conservationist under a conservation plan approved
by the Secretary; and
`(C) fire rehabilitation,
construction of fire breaks, and fences (including placement of the posts
necessary for fences);
`(A) the production of row
crops, fruit trees, vineyards, or any other agricultural commodity that
requires breaking the soil surface; and
`(B) except as permitted
under paragraph (1)(C), the conduct of any other activities that would
disturb the surface of the land covered by the easement, including--
`(3) include such additional
provisions as the Secretary determines are appropriate to carry out this
subchapter or to facilitate the administration of this subchapter.
`(c) EVALUATION AND RANKING
OF EASEMENT APPLICATIONS-
`(1) IN GENERAL- The Secretary,
in conjunction with State technical committees, shall establish criteria
to evaluate and rank applications for easements under this subchapter.
`(2) CRITERIA- In establishing
the criteria, the Secretary shall emphasize plant and animal biodiversity
and grassland and other eligible land under the greatest threat of conversion.
`(1) IN GENERAL- On the
violation of a term or condition of an easement or restoration agreement
entered into under this section--
`(A) the easement shall
remain in force; and
`(B) the Secretary may require
the owner to refund all or part of any payments received by the owner under
this subchapter, including interest on the payments as determined appropriate
by the Secretary.
`(2) PERIODIC INSPECTIONS-
`(A) IN GENERAL- The Secretary
shall conduct periodic inspections of land subject to easements under this
subchapter to ensure that the terms of the easement and any applicable
restoration agreements are being met.
`(B) LIMITATION- The Secretary
may not prohibit the owner, or a representative of the owner, from being
present during a periodic inspection.
`SEC. 1238P. DUTIES OF SECRETARY.
`(a) IN GENERAL- In return
for the granting of an easement by an owner under this subchapter, the
Secretary shall, in accordance with this section,--
`(1) make easement payments;
`(2) pay the Federal share
of the cost of restoration; and
`(3) provide technical assistance
to the owner.
`(1) AMOUNT- In return for
the granting of an easement by an owner under this subchapter, the Secretary
shall make easement payments to the owner in an amount equal to--
`(A) in the case of a permanent
easement, the fair market value of the land less grazing value of the land
encumbered by the easement; and
`(B) in the case of a 30-year
easement or an easement for the maximum duration allowed under applicable
State law, 30 percent of the fair market value of the land less the grazing
value of the land for the period during which the land is encumbered by
the easement.
`(2) SCHEDULE- The Secretary
shall provide payments under this subsection--
`(A) with respect to any
cost sharing obligation, as soon as practicable after the obligation is
incurred; and
`(B) with respect to any
annual easement payment obligation incurred by the Secretary, as soon as
practicable after October 1 of each year.
`(c) FEDERAL SHARE OF COST
OF RESTORATION-
`(1) IN GENERAL- Subject
to paragraph (2), the Secretary shall make payments to the owner of not
more than 75 percent of the cost of carrying out measures and practices
necessary to restore eligible functions and values.
`(2) AGGREGATE AMOUNT- The
Secretary shall use not more than 5 percent of amounts made available to
carry out this subchapter to make payments under paragraph (1).
`(d) TECHNICAL ASSISTANCE-
The Secretary shall use not more than 8 percent of amounts made available
to carry out this subchapter to provide technical assistance under this
subsection.
`(1) IN GENERAL- Except
as provided in paragraph (2), an easement payment received by an owner
under this subchapter shall be in addition to, and shall not affect, the
total amount of payments that the owner is otherwise eligible to receive
under any other Federal law.
`(2) PROHIBITION ON DUPLICATIVE
ASSISTANCE- An owner that receives an easement payment under this chapter
may not receive a payment for the same easement under any other program.
`SEC. 1238Q. REGULATIONS.
`Not later than 180 days
after the date of enactment of this subchapter, the Secretary shall promulgate
such regulations as are necessary to carry out this subchapter.'.
SEC. 219. STATE TECHNICAL COMMITTEES.
Subtitle G of title XII
of the Food Security Act of 1985 (16 U.S.C. 3861 et seq.) is amended to
read as follows:
`Subtitle G--State Technical
Committees
`SEC. 1261. ESTABLISHMENT.
`(a) IN GENERAL- The Secretary
shall establish in each State a technical committee to assist the Secretary
in the technical considerations relating to implementation of any private
land conservation program administered by the Secretary.
`(b) STANDARDS- Not later
than 180 days after the date of enactment of the Agriculture, Conservation,
and Rural Enhancement Act of 2001, the Secretary shall develop standards
to be used by each State technical committee in the development of technical
guidelines under section 1262(b) for the implementation of the conservation
programs under this title.
`(c) COMPOSITION- Each State
technical committee established under subsection (a) shall be composed
of professional resource managers that represent a variety of disciplines
in the soil, water, wetland, and wildlife sciences, including representatives
from among--
`(1) the Natural Resources
Conservation Service (a representative of which shall serve as Chair of
the Committee);
`(2) the Farm Service Agency;
`(4) the Extension Service;
`(5) the Fish and Wildlife
Service;
`(6) such State departments
and agencies as the Secretary determines to be appropriate, including--
`(A) a State fish and wildlife
agency;
`(B) a State forester or
equivalent State official;
`(C) a State water resources
agency;
`(D) a State department
of agriculture;
`(E) a State soil conservation
agency; and
`(F) land grant universities;
`(7) other individuals or
agency personnel with expertise in soil, water, wetland, and wildlife management
as the Secretary determines to be appropriate;
`(8) agricultural producers
with demonstrable conservation expertise;
`(9) nonprofit organizations
with demonstrable conservation expertise;
`(10) persons knowledgeable
about conservation techniques; and
`SEC. 1262. RESPONSIBILITIES.
`(A) IN GENERAL- Each State
technical committee established under section 1261 shall meet regularly
to provide information, analyses, and recommendations to the Secretary.
`(B) MANNER; FORM- Information,
analyses, and recommendations described in subparagraph (A) shall--
`(i) be provided in writing,
in a manner that assists the Department of Agriculture in determining matters
of fact, technical merit, or scientific question; and
`(ii) reflect the best professional
information and judgment of the Committee.
`(2) COORDINATION- The Secretary
shall coordinate activities conducted under this section with activities
conducted under section 1628 of the Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 5831).
`(3) PUBLIC PARTICIPATION-
Each State technical committee shall--
`(A) provide public notice
of, and permit public attendance at, meetings considering issues of concern
related to any program under this title; and
`(B) distribute meeting
minutes to each person attending a meeting described in subparagraph (A).
`(4) COMMUNICATION- Each
State conservationist shall communicate regularly with members of the State
technical committee concerning status of action on recommendations of the
committee.
`(b) OTHER DUTIES- Each
State technical committee shall provide assistance and offer recommendations
with respect to the technical aspects of--
`(1) wetland protection,
restoration, and mitigation requirements;
`(2) criteria to be used
in evaluating bids for enrollment of environmentally-sensitive land in
the conservation reserve program;
`(3) guidelines for haying
or grazing and the control of weeds to protect nesting wildlife on designated
acreage relating to--
`(A) highly erodible land;
or
`(B) wetland and conservation
compliance;
`(4) addressing common weed
and pest problems and programs to control weeds and pests found on acreage
enrolled in the conservation reserve program;
`(5) guidelines for planting
perennial cover for water quality and wildlife habitat improvement on designated
land;
`(6) establishing criteria
and priorities for State initiatives under the environmental quality incentives
program under chapter 4 of subtitle D;
`(7) establishing State
and local conservation priorities under the conservation security program
under chapter X of subtitle D;
`(8) establishing and maintaining
natural resource indicators and conservation program monitoring and evaluation
systems;
`(9) developing conservation
program education and outreach activities;
`(10) evaluating innovative
practices and systems under consideration for inclusion in the field office
technical guides; and
`(11) other matters, as
determined to be appropriate by the Secretary.
`(1) IN GENERAL- Each State
technical committee established under section 1261 shall--
`(A) serve in an advisory
capacity; and
`(B) have no implementation
or enforcement authority.
`(2) CONSIDERATION BY SECRETARY-
In carrying out any program under this title, the Secretary shall give
strong consideration to the recommendations of a State technical committee
(including factual, technical, or scientific findings and recommendations
relating to areas in which the State technical committee bears responsibility).
`(d) FACA REQUIREMENTS-
A State technical committee established under section 1261 shall be exempt
from the Federal Advisory Committee Act (5 U.S.C. App.).
`(e) ADVISORY SUBCOMMITTEES-
`(1) IN GENERAL- Any State
or local work group, task force, or other advisory body authorized by any
Federal law (including a regulation) to advise the Secretary on issues
that are within the areas of responsibility of a State technical committee
established under section 1261 shall be considered to be a subcommittee
of the State technical committee.
`(2) COMPOSITION- Persons
eligible to serve on a State technical committee under section 1261(c)
shall also be eligible to serve on 1 or more subcommittees of a State technical
committee.
`(3) FACA REQUIREMENTS-
A subcommittee of a State technical committee established under section
1261 shall be exempt from the Federal Advisory Committee Act ( 5 U.S.C.
App.).'.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
SEC. 301. UNITED STATES POLICY.
Section 2(2) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691(2)) is amended
by inserting before the semicolon at the end the following: `and conflict
prevention'.
SEC. 302. PROVISION OF AGRICULTURAL
COMMODITIES.
Section 202 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1722) is amended--
(1) in subsection (b), by
adding at the end the following:
`(3) PROGRAM DIVERSITY-
The Administrator shall--
`(A) encourage eligible
organizations to propose and implement program plans to address 1 or more
aspects of the program under section 201; and
`(B) consider proposals
that incorporate a variety of program objectives and strategic plans based
on the identification by eligible organizations of appropriate activities
to assist development in foreign countries.';
(2) in subsection (e)(1),
by striking `not less than $10,000,000, and not more than $28,000,000,'
and inserting `not less than 5 percent nor more than 10 percent'; and
(3) by adding at the end
the following:
`(h) CERTIFIED INSTITUTIONAL
PARTNERS-
`(1) IN GENERAL- The Secretary
shall promulgate regulations and issue guidelines to permit private voluntary
organizations and cooperatives to be certified as institutional partners.
`(2) REQUIREMENTS- To become
a certified institutional partner, a private voluntary organization or
cooperative shall submit to the Secretary a certification of organizational
capacity that describes--
`(A) the financial, programmatic,
commodity management, and auditing abilities and practices of the organization
or cooperative; and
`(B) the capacity of the
organization or cooperative to carry out projects in particular countries.
`(3) MULTI-COUNTRY PROPOSALS-
A certified institutional partner shall be eligible to--
`(A) submit a single proposal
for 1 or more countries that are the same as, or similar to, those countries
in which the certified institutional partner has already demonstrated organizational
capacity;
`(B) receive expedited review
and approval of the proposal; and
`(C) receive commodities
and assistance under this section for use in 1 or more countries.'.
SEC. 303. GENERATION AND USE
OF FOREIGN CURRENCIES BY PRIVATE VOLUNTARY ORGANIZATIONS AND COOPERATIVES.
Section 203 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) is amended--
(1) in subsection (a), by
striking `the recipient country, or in a country' and inserting `1 or more
recipient countries, or 1 or more countries';
(A) by striking `foreign
currency'; and
(B) by striking `the recipient
country, or in a country' and inserting `1 or more recipient countries,
or in 1 or more countries';
(3) in subsection (b), by
striking `foreign currency'; and
(A) by striking `Foreign
currencies' and inserting `Proceeds';
(i) by striking `income
generating' and inserting `income-generating'; and
(ii) by striking `the recipient
country or within a country' and inserting `1 or more recipient countries
or within 1 or more countries'; and
(i) by inserting a comma
after `invested'; and
(ii) by inserting a comma
after `used'.
SEC. 304. LEVELS OF ASSISTANCE.
Section 204 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1724) is amended--
(A) in paragraph (1), by
striking `that for each of fiscal years 1996 through 2002 is not less than
2,025,000 metric tons.' and inserting `that is not less than--
`(A) 2,100,000 metric tons
for fiscal year 2002;
`(B) 2,200,000 metric tons
for fiscal year 2003;
`(C) 2,300,000 metric tons
for fiscal year 2004; and
`(D) 2,400,000 metric tons
for fiscal year 2005; and
`(E) 2,500,000 metric tons
for fiscal year 2006.'; and
(B) in paragraph (2), by
striking `1996 through 2002' and inserting `2002 through 2006'; and
(2) in subsection (b)(1)--
(A) by striking `75 percent'
and inserting `50 percent'; and
(B) by inserting `(including
crude degummed soybean oil and soybean meal)' after `bagged commodities'.
SEC. 305. FOOD AID CONSULTATIVE
GROUP.
Section 205 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1725) is amended--
(1) in subsection (a), by
inserting `, policies, guidelines,' after `regulations';
(2) in subsection (d), by
inserting `policies,' after `regulations,' each place it appears; and
(3) in subsection (f), by
striking `2002' and inserting `2006'.
SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.
Section 206(a) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726(a)) is amended
by striking `1,000,000,000' and inserting `2,000,000,000'.
SEC. 307. ADMINISTRATION.
Section 207 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
(A) by redesignating paragraph
(2) as paragraph (3); and
(B) by striking paragraph
(1) and inserting the following:
`(1) RECIPIENT COUNTRIES-
A proposal to enter into a nonemergency food assistance agreement under
this title shall identify the recipient country or countries that are the
subject of the agreement.
`(2) TIMING- Not later than
120 days after the date of submission to the Administrator of a proposal
submitted by an eligible organization under this title, the Administrator
shall determine whether to accept the proposal.';
(2) in subsection (b), by
striking `guideline' each place it appears and inserting `guideline or
policy'; and
(3) in subsection (d), by
striking `a United States field mission' and inserting `an eligible organization
with an approved program'.
SEC. 308. ASSISTANCE FOR STOCKPILING
AND RAPID TRANSPORTATION, DELIVERY, AND DISTRIBUTION OF SHELF-STABLE PREPACKAGED
FOODS.
Section 208(f) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended
by striking `and 2002' and inserting `through 2006'.
SEC. 309. SALE PROCEDURE.
Section 403 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1733) is amended
by adding at the end the following:
`(1) IN GENERAL- Subsections
(b) and (h) shall apply to sales of commodities in recipient countries
to generate proceeds to carry out projects under titles II and III of this
Act, section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)),
and section 1110 of the Food for Progress Act of 1985 (7 U.S.C. 1736o).
`(2) CURRENCIES- Sales of
commodities described in paragraph (1) may be in United States dollars
or in a different currency.
`(3) SALE PRICE- Sales of
commodities described in paragraph (1) shall be made at the reasonable
market price in the economy of the recipient country, as determined by
the Secretary or the Administrator, as appropriate.'.
SEC. 310. PREPOSITIONING.
Section 407(c)(4) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736a(c)(4))
is amended by striking `and 2002' and inserting `through 2006'.
SEC. 311. EXPIRATION DATE.
Section 408 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking `2002' and inserting `2006'.
SEC. 312. MICRONUTRIENT FORTIFICATION
PILOT PROGRAM.
Section 415 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended--
(A) in the first sentence,
by striking `a micronutrient fortification pilot program' and inserting
`micronutrient fortification pilot programs'; and
(B) in the second sentence--
(i) by striking `the program'
and inserting `a program';
(ii) in paragraph (1), by
striking `and' at the end;
(I) by striking `whole';
and
(II) by striking the period
at the end and inserting `; and'; and
(iv) by adding at the end
the following:
`(3) encourage technologies
and systems for the improved quality and safety of fortified grains and
other commodities that are readily transferable to developing countries
or that are produced in the United States.';
(A) by striking `the pilot
program, whole' and inserting `a pilot program';
(B) by striking `the pilot
program may' and inserting `a pilot program may'; and
(C) by striking `including'
and inserting `such as'; and
(3) in subsection (d), by
striking `2002' and inserting `2006'.
SEC. 313. INTERNATIONAL FOOD
FOR EDUCATION AND CHILD NUTRITION.
(a) IN GENERAL- Title IV
of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1731 et seq.) is amended by adding at the end the following:
`SEC. 417. INTERNATIONAL FOOD
FOR EDUCATION AND CHILD NUTRITION.
`(a) DEFINITIONS- In this
section:
`(1) ELIGIBLE COMMODITY-
The term `eligible commodity' means--
`(A) an agricultural commodity;
and
`(B) a vitamin or mineral
produced--
`(i) in the United States;
or
`(ii) in limited situations
determined by the Secretary, outside the United States.
`(2) ELIGIBLE ORGANIZATION-
The term `eligible organization' means a private voluntary organization,
cooperative, or intergovernmental organization, as determined by the Secretary.
`(3) PROGRAM- The term `Program'
means the International Food for Education and Child Nutrition Program
established under subsection (b)(1).
`(4) RECIPIENT COUNTRY-
The term `recipient country' means 1 or more developing countries covered
by a plan approved under subsection (d)(1)(A)(ii).
`(b) PROGRAM ESTABLISHMENT-
`(1) IN GENERAL- In cooperation
with other countries, the Secretary shall establish, and the Department
of Agriculture shall act as the lead Federal agency for, the International
Food for Education and Child Nutrition Program, through which the Secretary
shall provide to eligible organizations eligible commodities and technical
and nutritional assistance for pre-school and school-age children in connection
with education programs to improve food security and enhance educational
opportunities for pre-school age and primary-school age children in recipient
countries.
`(2) ADMINISTRATION- In
carrying out the Program, the Secretary may use the personnel and other
resources of the Food and Nutrition Service and other agencies of the Department
of Agriculture.
`(c) PURCHASE AND DONATION
OF ELIGIBLE COMMODITIES AND PROVISION OF ASSISTANCE-
`(1) IN GENERAL- Under the
Program, the Secretary shall enter into agreements with eligible organizations--
`(A) to purchase, acquire,
and donate eligible commodities to eligible organizations; and
`(B) to provide technical
and nutritional assistance.
`(2) OTHER DONOR COUNTRIES-
Consistent with the Program, the Secretary shall encourage other donor
countries, directly or through eligible organizations--
`(A) to donate goods and
funds to recipient countries; and
`(B) to provide technical
and nutritional assistance to recipient countries.
`(3) PRIVATE SECTOR- The
President and the Secretary are urged to encourage the support and active
involvement of the private sector, foundations, and other individuals and
organizations in programs and activities assisted under this section.
`(d) PLANS AND AGREEMENTS-
`(1) IN GENERAL- To be eligible
to receive eligible commodities and assistance under this section, an eligible
organization shall--
`(A)(i) submit to the Secretary
a plan that describes the manner in which--
`(I) the eligible commodities
and assistance will be used in 1 or more recipient countries to meet the
requirements of this section; and
`(II) the role of the government
in the recipient countries in carrying out the plan; and
`(ii) obtain the approval
of the Secretary for the plan; and
`(B) enter into an agreement
with the Secretary establishing the terms and conditions for use of the
eligible commodities and assistance.
`(2) MULTIYEAR AGREEMENTS-
`(A) IN GENERAL- An agreement
under paragraph (1)(B) may provide for eligible commodities and assistance
on a multiyear basis.
`(B) LOCAL CAPACITY- The
Secretary shall facilitate, to the extent the Secretary determines is appropriate,
the development of agreements under paragraph (1)(B) that, on a multiyear
basis, strengthen local capacity for implementing and managing assistance
programs.
`(3) STREAMLINED PROCEDURES-
The Secretary shall develop streamlined procedures for the development,
review, and approval of plans submitted under paragraph (1)(A) by eligible
organizations that demonstrate organizational capacity and the ability
to develop, implement, monitor, and report on, and provide accountability
for, activities carried out under this section.
`(4) GRADUATION- An agreement
under paragraph (1)(B) shall include provisions--
`(A)(i) to sustain the benefits
to the education, enrollment, and attendance of children in schools in
the targeted communities when the provision of commodities and assistance
to a recipient country under the Program terminates; and
`(ii) to estimate the period
of time required for the recipient country or eligible organization to
provide assistance described in subsection (b)(1) without additional assistance
provided under this section; or
`(B) to otherwise provide
other long-term benefits to the targeted populations.
`(5) FOREIGN POLICY, NATIONAL
SECURITY, AND HUMANITARIAN OBJECTIVES-
`(A) APPROVAL OF PLANS-
In consultation with the Secretary of State and other appropriate foreign
policy officials, the Secretary may establish additional criteria for the
approval of agreements entered into under paragraph (1)(B) that reflect
the foreign policy, national security, or humanitarian objectives of the
United States.
`(B) CRITERIA- Criteria
established under subparagraph (A) may include--
`(i) targeting recipient
countries in a manner that is consistent with the objectives; and
`(ii) providing a priority
for recipient countries with a significant number of refugees with low
prospects of returning to their homes in the near future.
`(C) INTERNATIONAL COALITION
AGAINST TERRORISM- In establishing an international coalition for the purpose
of responding to acts of international terrorism described in section 2(b)
of Public Law 107-40, the President may recognize the donation of eligible
commodities, and the provision of technical and nutritional assistance,
by a recipient country under the Program as a valid form of participation
in the coalition.
`(e) EFFECTIVE USE OF ELIGIBLE
COMMODITIES- The Secretary shall ensure, to the maximum extent practicable,
that each eligible organization--
`(1) uses eligible commodities
made available under this section effectively, in the areas of greatest
need, and in a manner that promotes educational development in recipient
countries and other purposes of this section;
`(2) in using assistance
provided under this section, assesses and takes into account the nutritional
and educational needs of participating pre-school age and primary-school
age children;
`(3) works with recipient
countries and indigenous institutions or groups in recipient countries
to design and carry out mutually acceptable food and education assistance
programs for participating pre-school age and primary-school age children;
`(4) monitors and reports
on the distribution or sale of eligible commodities provided under this
section using methods that will facilitate accurate and timely reporting;
`(5) periodically evaluates
the effectiveness of the Program, including evaluation of whether the food
security and education purposes can be sustained in a recipient country
if the recipient country is gradually terminated from the assistance in
accordance with subsection (d)(4); and
`(6) considers means of
improving the operation of the Program by the eligible organization and
ensuring and improving the quality of the eligible commodities provided
under this section, including improvement of the nutrient or micronutrient
content of the eligible commodities.
`(f) INTERAGENCY COORDINATION
ON POLICY GOALS- The Secretary shall consult and collaborate with other
Federal agencies having appropriate expertise in order to provide assistance
under this section to promote equal access to education to improve the
quality of education, combat exploitative child labor, and advance broad-based
sustainable economic development in recipient countries.
`(1) IN GENERAL- Notwithstanding
subsection (d)(1)(A), with the approval of the Secretary, an eligible organization
may--
`(A) acquire funds or goods
by selling or bartering eligible commodities provided under this section
within the recipient country or countries in the same region as the recipient
country; and
`(B) use the funds or goods
to improve food security and enhance educational opportunities for pre-school
age and primary-school age children within the recipient country, including
implementation and administrative costs incurred in carrying out this subsection.
`(2) PAYMENT OF ADMINISTRATIVE
COSTS- An eligible organization that receives payment for administrative
costs under paragraph (1) shall not be eligible to receive payment for
the same administrative costs under subsection (h)(3).
`(h) ELIGIBLE COSTS- Subject
to subsections (d)(1) and (m), the Secretary shall pay all or part of--
`(1) the costs and charges
described in paragraphs (1) through (5) and (7) of section 406(b) with
respect to an eligible commodity;
`(2) the internal transportation,
storage, and handling costs incurred in distributing the eligible commodity,
if the Secretary determines that--
`(A) the recipient country
is a low income, net food-importing country that--
`(i) meets the poverty criteria
established by the International Bank for Reconstruction and Development
for Civil Works Preference; or
`(ii) has a national government
that is committed to or is working toward, through a national action plan,
the World Declaration on Education for All convened in 1990 in Jomtien,
Thailand, and the follow-up Dakar Framework for Action of the World Education
Forum in 2000; and
`(B) payment is appropriate
in light of such other factors as the Secretary considers appropriate;
and
`(3) the projected costs
of an eligible organization for administration, sales, monitoring, and
technical assistance under a plan approved by the Secretary under subsection
(d)(1)(A) (including an itemized budget), taking into consideration, as
determined by the Secretary--
`(A) the projected amount
of such costs itemized by category; and
`(B) the projected amount
of assistance received from other donors.
`(i) DISPLACEMENT- Subsections
(a)(2), (b), and (h) of section 403 shall apply to this section.
`(j) AUDITS AND TRAINING-
The Secretary shall take such actions as the Secretary considers appropriate
to support, monitor, audit, and provide necessary training in proper management
under the Program.
`(k) ANNUAL REPORT- The
Secretary shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate an annual report that describes--
`(1) the results of the
implementation of the Program during the applicable year, including the
impact on the enrollment, attendance, and performance of children in primary
schools targeted under the Program; and
`(2) the level of commitments
by, and the potential for obtaining additional goods and assistance from,
other countries for the purposes of this section during subsequent years.
`(l) INDEPENDENCE OF AUTHORITIES-
Each authority granted under this section shall be in addition to, and
not in lieu of, any authority granted to the Secretary or the Commodity
Credit Corporation under any other provision of law-
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), for each of fiscal years 2002 through 2005,
the Secretary shall use the funds, facilities, and authorities of the Commodity
Credit Corporation to carry out this section.
`(2) MAXIMUM AMOUNT- Subject
to paragraph (3), the amount of funds of the Commodity Credit Corporation
used to carry out this section shall not exceed $250,000,000 for fiscal
years 2002 through 2005.
`(3) USE LIMITATIONS- Of
the funds provided under paragraph (2), the Secretary may use to carry
out subsection (h)(3) not more than $35,000,000 for each of fiscal years
2002 through 2005.'.
(b) CONFORMING AMENDMENTS-
(1) Section 404(b)(4) of
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1734(b)(4)) is amended by inserting `with respect to agreements entered
into under this Act (other than section 417),' after `(4)'.
(2) Section 406(d) of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736(d))
is amended by inserting `(other than section 417)' after `this Act'.
(3) Section 412(b)(1) of
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1736f(b)(1)) is amended by inserting `(other than section 417)' after `this
Act' each place it appears.
SEC. 314. FARMER-TO-FARMER PROGRAM.
Section 501(c) of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1737(c)) is amended--
(1) by striking `0.4' and
inserting `0.5,'; and
(2) by striking `2002' and
inserting `2006'.
SEC. 315. BILL EMERSON HUMANITARIAN
TRUST.
Section 302 of the Bill
Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) is amended in subsection
(b)(2)(B)(i) and paragraphs (1) and (2) of subsection (h) by striking `2002'
each place it appears and inserting `2006'.
SEC. 316. FOOD FOR PROGRESS.
(a) REAUTHORIZATION- The
Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended in subsections
(f)(3), (g), and (k) by striking `2002' each place it appears and inserting
`2006'.
(b) TRANSPORTATION COSTS-
Section 1110(f)(3) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(f)(3))
is amended by striking `$30,000,000 (or, in the case of fiscal year 1999,
$35,000,000)' and inserting `$55,000,000'.
(c) AMOUNTS OF COMMODITIES-
Section 1110(g) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(g))
is amended by striking `Not more than 500,000' and inserting `Not less
than 400,000'.
(d) MULTIYEAR BASIS- Section
1110(j) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(j)) is amended
by striking `may' and inserting `may, and is encouraged to,'.
(e) INCREASE IN FUNDING-
Section 1110(l)(1) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(l)(1))
is amended--
(1) by striking `fiscal
years 1996 through 2002' and inserting `fiscal years 2002 through 2006';
and
(2) by striking `$10,000,000
(or in the case of fiscal year 1999, $12,000,000)' and inserting `$15,000,000'.
(f) MONETIZATION- Section
1110(l)(3) of the Food for Progress Act of 1985 (7 U.S.C. 1736o(l)(3))
is amended by striking `local currencies derived from' and inserting `proceeds
of'.
(g) SMOOTH PROGRAM DELIVERY-
Section 1110 of the Food for Progress Act of 1985 (7 U.S.C. 1736o) is amended
by adding at the end the following:
`(1) IN GENERAL- The Secretary
is encouraged to finalize program agreements and resource requests for
programs under this section--
`(A) before the beginning
of each fiscal year; or
`(B) as soon as funds are
made available for the fiscal year.
`(2) REPORT- Not later than
December 1 of each year, the Secretary shall submit to the Committee on
Agriculture and the Committee on International Relations of the House of
Representatives and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that contains--
`(A) a list of programs,
countries, and commodities approved to date for assistance under this section;
and
`(B) a statement of the
total amount of funds approved to date for transportation and administrative
costs under this section.
`(q) CERTIFIED INSTITUTIONAL
PARTNERS-
`(1) IN GENERAL- The Secretary
shall promulgate regulations and guidelines to permit private voluntary
organizations and cooperatives to be certified as institutional partners.
`(2) REQUIREMENTS- To become
a certified institutional partner, a private voluntary organization or
cooperative shall submit to the Secretary a certification of organizational
capacity that describes--
`(A) the financial, programmatic,
commodity management, and auditing abilities and practices of the organization
or cooperative; and
`(B) the capacity of the
organization or cooperative to carry out projects in particular countries.
`(3) MULTI-COUNTRY PROPOSALS-
A certified institutional partner shall be eligible to--
`(A) submit a single proposal
for 1 or more countries that are the same as, or similar to, those countries
in which the certified institutional partner has already demonstrated organizational
capacity;
`(B) receive expedited review
and approval of the proposal; and
`(C) request commodities
and assistance under this section for use in 1 or more countries.'.
SEC. 317. TROPICAL FOREST CONSERVATION.
(a) REDUCTION OF DEBT OWED
TO THE UNITED STATES AS A RESULT OF CONCESSIONAL LOANS- Section 806(a)(2)(C)
of the Tropical Forest Conservation Act of 1998 (22 U.S.C. 2431d(a)(2)(C))
is amended by striking `fiscal year 2001' and inserting `each of fiscal
years 2001 through 2006'.
(b) REDUCTION OF DEBT OWED
TO THE UNITED STATES AS A RESULT OF EXTENDED CREDITS- Section 807(a)(2)(A)(iii)
of the Tropical Forest Conservation Act of 1998 (22 U.S.C. 2431e(a)(2)(A)(iii))
is amended by striking `fiscal year 2001' and inserting `each of fiscal
years 2001 through 2006'.
Subtitle B--Agricultural Trade
Act of 1978
SEC. 321. EXPORT CREDIT GUARANTEE
PROGRAM.
(a) TERM OF SUPPLIER CREDIT
PROGRAM- Section 202(a)(2) of the Agricultural Trade Act of 1978 (7 U.S.C.
5622(a)(2)) is amended by striking `180' and inserting `360'.
(b) PROCESSED AND HIGH-VALUE
PRODUCTS- Section 202(k)(1) of the Agricultural Trade Act of 1978 (7 U.S.C.
5622(k)(1)) is amended by striking `, 2001, and 2002' and inserting `through
2006'.
(c) REAUTHORIZATION- Section
211(b)(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is
amended by striking `2002' and inserting `2006'.
(d) REPORT- Section 211
of the Agricultural Trade Act of 1978 (7 U.S.C. 5641) is amended by adding
at the end the following:
`(d) REPORT ON AGRICULTURAL
EXPORT CREDIT PROGRAMS-
`(1) IN GENERAL- Not later
than 1 year after the date of enactment of this subsection, and annually
thereafter, the Secretary shall submit to the Committee on Agriculture
and the Committee on International Relations of the House of Representatives
and the Committee on Agriculture, Nutrition and Forestry of the Senate
a report on the status of multilateral negotiations regarding agricultural
export credit programs at the World Trade Organization and the Organization
of Economic Cooperation and Development in fulfillment of Article 10.2
of the Agreement on Agriculture (as described in section 101(d)(2) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2))).
`(2) CLASSIFIED INFORMATION-
The report under paragraph (1) shall be submitted in unclassified form,
but may contain a classified annex.'.
SEC. 322. MARKET ACCESS PROGRAM.
Section 211(c)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended by striking
`2002' and inserting `2001, $100,000,000 for fiscal year 2002, $120,000,000
for fiscal year 2003, $145,000,000 for fiscal year 2004, $170,000,000 for
fiscal year 2005, and $200,000,000 for fiscal year 2006'.
SEC. 323. EXPORT ENHANCEMENT
PROGRAM.
(a) IN GENERAL- Section
301(e)(1)(G) of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G))
is amended by striking `fiscal year 2002' and inserting `each of fiscal
years 2002 through 2006'.
(b) UNFAIR TRADE PRACTICES-
Section 102(5)(A) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A))
is amended--
(1) in clause (i), by striking
`or' at the end;
(2) in clause (ii), by striking
the period at the end and inserting `; or'; and
(3) by adding at the end
the following:
`(iii) changes United States
export terms of trade through a deliberate change in the dollar exchange
rate of a competing exporter.'.
SEC. 324. FOREIGN MARKET DEVELOPMENT
COOPERATOR PROGRAM.
The Agricultural Trade Act
of 1978 is amended by striking section 703 (7 U.S.C. 5723) and inserting
the following:
`SEC. 703. FUNDING.
`(a) IN GENERAL- To carry
out this title, the Secretary shall use funds of the Commodity Credit Corporation,
or in commodities of the Commodity Credit Corporation of a value of the
following amounts:
`(1) For fiscal year 2002,
$37,500,000.
`(2) For fiscal year 2003,
$40,000,000.
`(3) For fiscal year 2004
and each subsequent fiscal year, $42,500,000.
`(b) ADDITIONAL CRITERION-
Of funds or commodities provided under subsection (a) in excess of $28,000,000
for any fiscal year, at least 50 percent shall be reserved for--
`(1) eligible trade organizations
that have never participated in the program under this title; or
`(2) programs in countries
that have not been targeted previously by the program under this title.'.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
SEC. 331. EMERGING MARKETS.
Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note; Public
Law 101-624) is amended in subsections (a) and (d)(1)(A)(i), by striking
`2002' each place it appears and inserting `2006'.
SEC. 332. REPORTS ON INSPECTION
OF IMPORTED MEAT, POULTRY, OTHER FOODS, ANIMALS, AND PLANTS.
Section 361(i)(4)(B) of
the North American Free Trade Agreement Implementation Act (19 U.S.C. 3421(i)(4)(B))
is amended by striking `2004' and inserting `2006'.
SEC. 333. SURPLUS COMMODITIES
FOR DEVELOPING OR FRIENDLY COUNTRIES.
(a) USE OF CURRENCIES- Section
416(b)(7)(D) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is
amended--
(1) in clauses (i) and (iii),
by striking `foreign currency' each place it appears;
(A) in the first sentence,
by striking `Foreign currencies' and inserting `Proceeds'; and
(B) in the second sentence,
by striking `foreign currency'; and
(A) by striking `Foreign
currency proceeds' and inserting `Proceeds';
(B) by striking `country
of origin' the second place it appears and all that follows through `as
necessary to expedite' and inserting `country of origin as necessary to
expedite'; and
(C) by striking `; or' and
all that follows and inserting a period.
(b) IMPLEMENTATION OF AGREEMENTS-
Section 416(b)(8) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)(8))
is amended--
(1) by striking `(8)(A)'
and all that follows through `(B) The Secretary' and inserting the following:
`(8) ADMINISTRATIVE PROVISIONS-
`(i) ESTIMATE OF COMMODITIES-
Not later than October 31 of each fiscal year, the Secretary shall publish
in the Federal Register an estimate of the quantity of each commodity that
will be available for distribution under this section for the fiscal year.
`(ii) PROGRAM AGREEMENTS-
`(I) TIMING- The Secretary
is encouraged to finalize program agreements under this section not later
than December 31 of each fiscal year.
`(II) DIRECT DELIVERY- In
addition to practices in effect on the date of enactment of this subclause,
the Secretary may approve an agreement that provides for direct delivery
of eligible commodities to milling or processing facilities more than 50
percent of the interest in which is owned by United States citizens in
recipient countries, with proceeds of transactions transferred in cash
to eligible organizations to carry out approved projects.
`(B) REGULATIONS- The Secretary'.
SEC. 334. AGRICULTURAL TRADE
WITH CUBA.
Section 908 of the Agriculture,
Rural Development, Food and Drug Administration and Related Agencies Appropriations
Act, 2001 (22 U.S.C. 7207), is amended--
(1) by striking subsection
(b); and
(A) by striking `(a)' and
all that follows through `Notwithstanding' and inserting the following:
`(a) IN GENERAL- Notwithstanding';
(B) by striking `(2) RULE
OF CONSTRUCTION- Nothing in paragraph (1)' and inserting the following:
`(b) RULE OF CONSTRUCTION-
Nothing in subsection (a)'; and
(C) by striking paragraph
(3).
SEC. 335. OFFICE OF TRADE BARRIER
RAPID RESPONSE.
Subtitle B of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 6931 et seq.) is amended
by adding at the end the following:
`SEC. 228. OFFICE OF TRADE BARRIER
RAPID RESPONSE.
`(a) IN GENERAL- The Secretary
shall establish for the Department, in the Foreign Agricultural Service,
the Office of Trade Barrier Rapid Response (referred to in this section
as the `Office').
`(b) RESPONSIBILITIES- The
Office shall be responsible for--
`(1) conducting outreach
with domestic and foreign consumers on issues of general interest to United
States farmers and ranchers; and
`(2) assisting exporters
of agricultural commodities, including by making a grant, in situations
in which an exporter faces an unwarranted or arbitrary barrier to trade
due to disease or a food safety concern.
`(c) STAFF- The staff of
the Office shall include at least 1 specialist with expertise on issues
of agricultural biotechnology.
`(d) AUTHORIZATION OF APPROPRIATIONS-
`(1) IN GENERAL- There is
authorized to be appropriated to carry out this section $5,000,000 for
each fiscal year.
`(2) GRANTS- Of amounts
made available under paragraph (1) for a fiscal year, the Secretary shall
reserve at least $2,000,000 to make grants under subsection (b)(2).'.
SEC. 336. SENSE OF CONGRESS
CONCERNING AGRICULTURAL TRADE POLICY OBJECTIVES.
It is the sense of Congress
that the principal negotiating objective of the United States with respect
to agriculture in all multilateral, regional, and bilateral negotiations
is to obtain competitive opportunities for United States exports in foreign
markets substantially equivalent to the competitive opportunities afforded
foreign exports in United States markets and to achieve fairer and more
open conditions of trade in bulk and value-added commodities by--
(1) reducing or eliminating,
by a date certain, tariffs or other charges that decrease market opportunities
for United States exports, giving priority to products that are subject
to significantly higher tariffs or subsidy regimes of major producing countries;
(2) reducing or eliminating
subsidies that decrease market opportunities for United States exports
or unfairly distort agriculture markets to the detriment of the United
States;
(3) developing, strengthening,
and clarifying rules and effective dispute settlement mechanisms to eliminate
practices that unfairly decrease United States market access opportunities
or distort agricultural markets to the detriment of the United States,
including--
(A) unfair or trade-distorting
activities of state trading enterprises and other administrative mechanisms,
with emphasis on requiring price transparency in the operation of state
trading enterprises and such other mechanisms;
(B) unjustified trade restrictions
or commercial requirements affecting new technologies, including biotechnology;
(C) unjustified sanitary
or phytosanitary restrictions, including restrictions that are not based
on scientific principles, in contravention of the Uruguay Round Agreements;
(D) other unjustified technical
barriers to trade; and
(E) restrictive and nontransparent
rules in the administration of tariff rate quotas;
(4) improving import relief
mechanisms to recognize the unique characteristics of perishable agriculture;
(5) taking into account
whether a party to the negotiations has--
(A) failed to adhere to
the provisions of an existing bilateral trade agreement with the United
States; or
(B) circumvented obligations
under a multilateral trade agreement to which the United States is a signatory;
and
(6) otherwise ensuring that
countries that accede to the World Trade Organization--
(A) have made meaningful
market liberalization commitments in agriculture; and
(B) make progress in fulfilling
those commitments over time.
TITLE IV--NUTRITION PROGRAMS