S 1673 IS
107th CONGRESS
1st Session
S. 1673
To provide for the
continuation of agricultural programs through fiscal year 2011.
IN THE SENATE OF THE UNITED
STATES
November 9, 2001
Mrs. LINCOLN (for herself, Mr.
HUTCHINSON, Mr. HELMS, Mr. MILLER, Ms. LANDRIEU, and Mr. BREAUX) introduced
the following bill; which was read twice and referred to the Committee
on Agriculture, Nutrition, and Forestry
A BILL
To provide for the
continuation of agricultural programs through fiscal year 2011.
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 `Farm Security Act of 2001'.
(b) TABLE OF CONTENTS- The
table of contents for this Act is as follows:
Sec. 1. Short title; table
of contents.
TITLE I--COMMODITY PROGRAMS
Subtitle A--Fixed Decoupled
Payments and Counter-Cyclical Payments
Sec. 101. Payments to eligible
producers.
Sec. 102. Establishment
of payment yield.
Sec. 103. Establishment
of base acres and payment acres for a farm.
Sec. 104. Availability of
fixed, decoupled payments.
Sec. 105. Availability of
counter-cyclical payments.
Sec. 106. Producer agreement
required as condition on provision of fixed, decoupled payments and counter-cyclical
payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining
payment authority under production flexibility contracts.
Sec. 109. Payment limitations.
Sec. 110. Period of effectiveness.
Subtitle B--Marketing Assistance
Loans and Loan Deficiency Payments
Sec. 121. Availability of
nonrecourse marketing assistance loans for covered commodities.
Sec. 122. Loan rates for
nonrecourse marketing assistance loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency
payments.
Sec. 126. Payments in lieu
of loan deficiency payments for grazed acreage.
Sec. 127. Special marketing
loan provisions for upland cotton.
Sec. 128. Special competitive
provisions for extra long staple cotton.
Sec. 129. Availability of
recourse loans for high moisture feed grains and seed cotton and other
fibers.
Sec. 130. Availability of
nonrecourse marketing assistance loans for wool and mohair.
Sec. 131. Availability of
nonrecourse marketing assistance loans for honey.
Sec. 132. Producer retention
of erroneously paid loan deficiency payments and marketing loan gains.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 141. Milk price support
program.
Sec. 142. Repeal of recourse
loan program for processors.
Sec. 143. Extension of dairy
export incentive and dairy indemnity programs.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product
mandatory reporting.
Sec. 146. Study of national
dairy policy.
Chapter 2--Sugar
Sec. 152. Reauthorize provisions
of Agricultural Adjustment Act of 1938 regarding sugar.
Sec. 153. Storage facility
loans.
Chapter 3--Peanuts
Sec. 162. Establishment
of payment yield, peanut acres, and payment acres for a farm.
Sec. 163. Availability of
fixed, decoupled payments for peanuts.
Sec. 164. Availability of
counter-cyclical payments for peanuts.
Sec. 165. Producer agreement
required as condition on provision of fixed, decoupled payments and counter-cyclical
payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance
loans and loan deficiency payments for peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of
marketing quota programs for peanuts and compensation to peanut quota holders
for loss of quota asset value.
Subtitle D--Administration
Sec. 181. Administration
generally.
Sec. 182. Extension of suspension
of permanent price support authority.
Sec. 184. Adjustments of
loans.
Sec. 185. Personal liability
of producers for deficiencies.
Sec. 186. Extension of existing
administrative authority regarding loans.
Sec. 187. Assignment of
payments.
Sec. 188. Report on effect
of certain farm program payments on economic viability of producers and
farming infrastructure.
TITLE II--CONSERVATION
Subtitle A--Environmental
Conservation Acreage Reserve Program
Sec. 201. General provisions.
Subtitle B--Conservation
Reserve Program
Sec. 211. Reauthorization.
Sec. 213. Duties of owners
and operators.
Sec. 214. Reference to conservation
reserve payments.
Sec. 215. Expansion of pilot
program to all States.
Subtitle C--Wetlands Reserve
Program
Sec. 222. Easements and
agreements.
Sec. 223. Duties of the
Secretary.
Sec. 224. Changes in ownership;
agreement modification; termination.
Subtitle D--Environmental
Quality Incentives Program
Sec. 233. Establishment
and administration.
Sec. 234. Evaluation of
offers and payments.
Sec. 235. Environmental
Quality Incentives Program plan.
Sec. 236. Duties of the
Secretary.
Sec. 237. Limitation on
payments.
Sec. 238. Ground and surface
water conservation.
Subtitle E--Funding and Administration
Sec. 241. Reauthorization.
Sec. 243. Allocation for
livestock production.
Sec. 244. Administration
and technical assistance.
Subtitle F--Other Programs
Sec. 251. Private grazing
land and conservation assistance.
Sec. 252. Wildlife Habitat
Incentives Program.
Sec. 253. Farmland Protection
Program.
Sec. 254. Resource Conservation
and Development Program.
Sec. 255. Grassland Reserve
Program.
Sec. 256. Farmland Stewardship
Program.
Sec. 257. Small Watershed
Rehabilitation Program.
Sec. 258. Provision of assistance
for Repaupo Creek Tide Gate and Dike Restoration Project, New Jersey.
Sec. 259. Grassroots source
water protection program.
Subtitle G--Repeals
Sec. 261. Provisions of
the Food Security Act of 1985.
Sec. 262. National Natural
Resources Conservation Foundation Act.
TITLE III--TRADE
Sec. 301. Market Access
Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities
for developing or friendly countries.
Sec. 304. Export Enhancement
Program.
Sec. 305. Foreign Market
Development Cooperator Program.
Sec. 306. Export Credit
Guarantee Program.
Sec. 307. Food for Peace
(Public Law 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian
Trust.
Sec. 310. Technical assistance
for specialty crops.
Sec. 311. Farmers to Africa
and the Caribbean Basin.
Sec. 312. George McGovern-Robert
Dole International Food for Education and Child Nutrition Program.
Sec. 313. Study on fee for
services.
Sec. 314. National export
strategy report.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 401. Simplified definition
of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food
stamps for families moving from welfare.
Sec. 404. Quality control
systems.
Sec. 405. Simplified application
and eligibility determination systems.
Sec. 406. Authorization
of appropriations.
Subtitle B--Commodity Distribution
Sec. 441. Distribution of
surplus commodities to special nutrition projects.
Sec. 442. Commodity supplemental
food program.
Sec. 443. Emergency food
assistance.
Subtitle C--Miscellaneous
Provisions
Sec. 461. Hunger fellowship
program.
Sec. 462. General 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
Sec. 601. Funding for rural
local television broadcast signal loan guarantees.
Sec. 602. Expanded eligibility
for value-added agricultural product market development grants.
Sec. 603. Agriculture innovation
center demonstration program.
Sec. 604. Funding of community
water assistance grant program.
Sec. 605. Loan guarantees
for the financing of the purchase of renewable energy systems.
Sec. 606. Loans and loan
guarantees for renewable energy systems.
Sec. 607. Rural business
opportunity grants.
Sec. 608. Grants for water
systems for rural and native villages in Alaska.
Sec. 609. Rural cooperative
development grants.
Sec. 610. National reserve
account of Rural Development Trust Fund.
Sec. 611. Rural venture
capital demonstration program.
Sec. 612. Increase in limit
on certain loans for rural development.
Sec. 613. Pilot program
for development and implementation of strategic regional development plans.
Sec. 614. Grants to nonprofit
organizations to finance the construction, refurbishing, and servicing
of individually-owned household water well systems in rural areas for individuals
with low or moderate incomes.
Sec. 615. National Rural
Development Partnership.
Sec. 616. Eligibility of
rural empowerment zones, rural enterprise communities, and champion communities
for direct and guaranteed loans for essential community facilities.
Sec. 617. Grants to train
farm workers in new technologies and to train farm workers in specialized
skills necessary for higher value crops.
Sec. 618. Loan guarantees
for the purchase of stock in a farmer cooperative seeking to modernize
or expand.
Sec. 619. Intangible assets
and subordinated unsecured debt required to be considered in determining
eligibility of farmer-owned cooperative for business and industry guaranteed
loan.
Sec. 620. Ban on limiting
eligibility of farmer cooperative for business and industry loan guarantee
based on population of area in which cooperative is located; refinancing.
Sec. 621. Rural water and
waste facility grants.
Sec. 622. Rural water circuit
rider program.
Sec. 623. Rural water grassroots
source water protection program.
Sec. 624. Delta regional
authority.
Sec. 625. Predevelopment
and small capitalization loan fund.
Sec. 626. Rural economic
development loan and grant program.
TITLE VII--RESEARCH AND RELATED
MATTERS
Subtitle A--Extensions
Sec. 700. Market expansion
research.
Sec. 701. National Rural
Information Center Clearinghouse.
Sec. 702. Grants and fellowships
for food and agricultural sciences education.
Sec. 703. Policy research
centers.
Sec. 704. Human nutrition
intervention and health promotion research program.
Sec. 705. Pilot research
program to combine medical and agricultural research.
Sec. 706. Nutrition education
program.
Sec. 707. Continuing animal
health and disease research programs.
Sec. 708. Appropriations
for research on national or regional problems.
Sec. 709. Grants to upgrade
agricultural and food sciences facilities at 1890 land-grant colleges,
including Tuskegee University.
Sec. 710. National research
and training centennial centers at 1890 land-grant institutions.
Sec. 711. Hispanic-serving
institutions.
Sec. 712. Competitive grants
for international agricultural science and education programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and
alternative crops.
Sec. 716. Aquaculture research
facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics
resources program.
Sec. 719. High-priority
research and extension initiatives.
Sec. 720. Nutrient management
research and extension initiative.
Sec. 721. Agricultural telecommunications
program.
Sec. 722. Alternative agricultural
research and commercialization revolving fund.
Sec. 723. Assistive technology
program for farmers with disabilities.
Sec. 724. Partnerships for
high-value agricultural product quality research.
Sec. 725. Biobased products.
Sec. 726. Integrated research,
education, and extension competitive grants program.
Sec. 727. Institutional
capacity building grants.
Sec. 728. 1994 Institution
research grants.
Sec. 729. Endowment for
1994 Institutions.
Sec. 730. Precision agriculture.
Sec. 731. Thomas Jefferson
initiative for crop diversification.
Sec. 732. Support for research
regarding diseases of wheat, triticale, and barley caused by Fusarium Graminearum
or by Tilletia Indica.
Sec. 733. Office of Pest
Management Policy.
Sec. 734. National Agricultural
Research, Extension, Education, and Economics Advisory Board.
Sec. 735. Grants for research
on production and marketing of alcohols and industrial hydrocarbons from
agricultural commodities and forest products.
Sec. 736. Biomass research
and development.
Sec. 737. Agricultural experiment
stations research facilities.
Sec. 738. Competitive, special,
and facilities research grants national research initiative.
Sec. 739. Federal agricultural
research facilities authorization of appropriations.
Sec. 740. Cotton classification
services.
Sec. 740A. Critical agricultural
materials research.
Sec. 740B. Private nonindustrial
hardwood research program.
Subtitle B--Modifications
Sec. 741. Equity in Educational
Land-Grant Status Act of 1994.
Sec. 742. National Agricultural
Research, Extension, and Teaching Policy Act of 1977.
Sec. 743. Agricultural Research,
Extension, and Education Reform Act of 1998.
Sec. 744. Food, Agriculture,
Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural
Research, Extension, and Teaching Policy Act of 1977.
Sec. 746. Biomass research
and development.
Sec. 747. Biotechnology
risk assessment research.
Sec. 748. Competitive, special,
and facilities research grants.
Sec. 749. Matching funds
requirement for research and extension activities of 1890 institutions.
Sec. 749A. Matching funds
requirement for research and extension activities for the United States
territories.
Sec. 750. Initiative for
future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of
food and agricultural sciences.
Sec. 753. Federal extension
service.
Sec. 754. Policy research
centers.
Subtitle C--Related Matters
Sec. 761. Resident instruction
at land-grant colleges in United States territories.
Sec. 762. Declaration of
extraordinary emergency and resulting authorities.
Sec. 763. Agricultural biotechnology
research and development for the developing world.
Subtitle D--Repeal of Certain
Activities and Authorities
Sec. 771. Food Safety Research
Information Office and National Conference.
Sec. 772. Reimbursement
of expenses under Sheep Promotion, Research, and Information Act of 1994.
Sec. 773. National genetic
resources program.
Sec. 774. National Advisory
Board on Agricultural Weather.
Sec. 775. Agricultural information
exchange with Ireland.
Sec. 776. Pesticide resistance
study.
Sec. 777. Expansion of education
study.
Sec. 778. Support for advisory
board.
Sec. 779. Task force on
10-year strategic plan for agricultural research facilities.
Subtitle E--Agriculture Facility
Protection
Sec. 790. Additional protections
for animal or agricultural enterprises, research facilities, and other
entities.
TITLE VIII--FORESTRY INITIATIVES
Sec. 801. Repeal of forestry
incentives program and Stewardship Incentive Program.
Sec. 802. Establishment
of Forest Land Enhancement Program.
Sec. 803. Renewable resources
extension activities.
Sec. 804. Enhanced community
fire protection.
Sec. 805. International
forestry program.
Sec. 806. Wildfire prevention
and hazardous fuel purchase program.
Sec. 807. McIntire-Stennis
cooperative forestry research program.
TITLE IX--MISCELLANEOUS PROVISIONS
Subtitle A--Tree Assistance
Program
Sec. 903. Limitation on
assistance.
Subtitle B--Other Matters
Sec. 921. Bioenergy program.
Sec. 922. Availability of
section 32 funds.
Sec. 923. Seniors farmers'
market nutrition program.
Sec. 924. Department of
Agriculture authorities regarding caneberries.
Sec. 925. National Appeals
Division.
Sec. 926. Outreach and assistance
for socially disadvantaged farmers and ranchers.
Sec. 927. Equal treatment
of potatoes and sweet potatoes.
Sec. 928. Reference to sea
grass and sea oats as crops covered by noninsured crop disaster assistance
program.
Sec. 929. Operation of Graduate
School of Department of Agriculture.
Sec. 930. Assistance for
livestock producers.
Sec. 931. Compliance with
Buy American Act and sense of Congress regarding purchase of American-made
equipment, products, and services using funds provided under this Act.
Sec. 932. Report regarding
genetically engineered foods.
Sec. 933. Market name for
pangasius fish species.
Sec. 934. Program of public
education regarding use of biotechnology in producing food for human consumption.
Sec. 936. Interagency Task
Force on Agricultural Competition.
Sec. 937. Authorization
for additional staff and funding for the Grain Inspection, Packers and
Stockyards Administration.
Sec. 938. Enforcement of
the humane methods of Slaughter Act of 1958.
Sec. 939. Penalties and
foreign commerce provisions of the Animal Welfare Act.
Sec. 940. Improve administration
of Animal and Plant Health Inspection Service.
Sec. 941. Renewable energy
resources.
Sec. 942. Use of amounts
provided for fixed, decoupled payments to provide necessary funds for rural
development programs.
Sec. 943. Unlawful stockyard
practices involving nonambulatory livestock.
Sec. 944. Annual report
on imports of beef and pork.
TITLE I--COMMODITY PROGRAMS
SEC. 100. DEFINITIONS.
In this title (other than
chapter 3 of subtitle C):
(1) AGRICULTURAL ACT OF
1949- The term `Agricultural Act of 1949' means the Agricultural Act of
1949 (7 U.S.C. 1421 et seq.), as in effect prior to the suspensions under
section 171 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7301).
(2) BASE ACRES- The term
`base acres', with respect to a covered commodity on a farm, means the
number of acres established under section 103 with respect to the commodity
upon the election made by the producers on the farm under subsection (a)
of such section.
(3) COUNTER-CYCLICAL PAYMENT-
The term `counter-cyclical payment' means a payment made to producers under
section 105.
(4) COVERED COMMODITY- The
term `covered commodity' means wheat, corn, grain sorghum, barley, oats,
upland cotton, rice, soybeans, and other oilseeds.
(5) EFFECTIVE PRICE- The
term `effective price', with respect to a covered commodity for a crop
year, means the price calculated by the Secretary under section 105 to
determine whether counter-cyclical payments are required to be made for
that crop year.
(6) ELIGIBLE PRODUCER- The
term `eligible producer' means a producer described in section 101(a).
(7) FIXED, DECOUPLED PAYMENT-
The term `fixed, decoupled payment' means a payment made to producers under
section 104.
(8) OTHER OILSEED- The term
`other oilseed' means a crop of sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or, if designated by the Secretary, another oilseed.
(9) PAYMENT ACRES- The term
`payment acres' means 85 percent of the base acres of a covered commodity
on a farm, as established under section 103, upon which fixed, decoupled
payments and counter-cyclical payments are to be made.
(10) PAYMENT YIELD- The
term `payment yield' means the yield established under section 102 for
a farm for a covered commodity.
(11) PRODUCER- The term
`producer' means an owner, operator, landlord, tenant, or sharecropper
who shares in the risk of producing a crop and who is entitled to share
in the crop available for marketing from the farm, or would have shared
had the crop been produced. In determining whether a grower of hybrid seed
is a producer, the Secretary shall not take into consideration the existence
of a hybrid seed contract and shall ensure that program requirements do
not adversely affect the ability of the grower to receive a payment under
this title.
(12) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
(13) STATE- The term `State'
means each of the several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, and any other territory or possession
of the United States.
(14) TARGET PRICE- The term
`target price' means the price per bushel (or other appropriate unit in
the case of upland cotton, rice, and other oilseeds) of a covered commodity
used to determine the payment rate for counter-cyclical payments.
(15) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.
Subtitle A--Fixed Decoupled
Payments and Counter-Cyclical Payments
SEC. 101. PAYMENTS TO ELIGIBLE
PRODUCERS.
(a) PAYMENTS REQUIRED- Beginning
with the 2002 crop of covered commodities, the Secretary shall make fixed
decoupled payments and counter-cyclical payments under this subtitle--
(1) to producers on a farm
that were parties to a production flexibility contract under section 111
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7211) for fiscal year 2002; and
(2) to other producers on
farms in the United States as described in section 103(a).
(b) TENANTS AND SHARECROPPERS-
In carrying out this title, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(c) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of fixed, decoupled payments
and counter-cyclical payments among the eligible producers on a farm on
a fair and equitable basis.
SEC. 102. ESTABLISHMENT OF PAYMENT
YIELD.
(a) ESTABLISHMENT AND PURPOSE-
For the purpose of making fixed decoupled payments and counter-cyclical
payments under this subtitle, the Secretary shall provide for the establishment
of a payment yield for each farm for each covered commodity in accordance
with this section.
(b) USE OF FARM PROGRAM
PAYMENT YIELD- Except as otherwise provided in this section, the payment
yield for each of the 2002 through 2011 crops of a covered commodity for
a farm shall be the farm program payment yield in effect for the 2002 crop
of the covered commodity under section 505 of the Agricultural Act of 1949
(7 U.S.C. 1465).
(c) FARMS WITHOUT FARM PROGRAM
PAYMENT YIELD- In the case of a farm for which a farm program payment yield
is unavailable for a covered commodity (other than soybeans or other oilseeds),
the Secretary shall establish an appropriate payment yield for the covered
commodity on the farm taking in consideration the farm program payment
yields applicable to the commodity under subsection (b) for similar farms
in the area.
(d) PAYMENT YIELDS FOR OILSEEDS-
(1) DETERMINATION OF AVERAGE
YIELD- In the case of soybeans and each other oilseed, the Secretary shall
determine the average yield for the oilseed on a farm for the 1998 through
2001 crop years, excluding any crop year in which the acreage planted to
the oilseed was zero. If, for any of these four crop years in which the
oilseed was planted, the farm would have satisfied the eligibility criteria
established to carry out section 1102 of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
1999 (Public Law 105-277; 7 U.S.C. 1421 note), the Secretary shall assign
a yield for that year equal to 65 percent of the county yield.
(2) ADJUSTMENT FOR PAYMENT
YIELD- The payment yield for a farm for an oilseed shall be equal to the
product of the following:
(A) The average yield for
the oilseed determined under paragraph (1).
(B) The ratio resulting
from dividing the national average yield for the oilseed for the 1981 through
1985 crops by the national average yield for the oilseed for the 1998 through
2001 crops.
SEC. 103. ESTABLISHMENT OF BASE
ACRES AND PAYMENT ACRES FOR A FARM.
(a) ELECTION BY PRODUCERS
OF BASE ACRE CALCULATION METHOD- For the purpose of making fixed decoupled
payments and counter-cyclical payments with respect to a farm, the Secretary
shall give producers on the farm an opportunity to elect one of the following
as the method by which the base acres of all covered commodities on the
farm are to be determined:
(1) The four-year average
of acreage actually planted on the farm to a covered commodity for harvest,
grazing, haying, silage, or other similar purposes during crop years 1998,
1999, 2000, and 2001 and any acreage on the farm that the producers were
prevented from planting during such crop years to the covered commodity
because of drought, flood, or other natural disaster, or other condition
beyond the control of the producer, as determined by the Secretary.
(2) The sum of contract
acreage (as defined in section 102 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7202)) used by the Secretary to calculate
the fiscal year 2002 payment that, subject to section 109, would be made
under section 114 of such Act (7 U.S.C. 7214) for the covered commodity
on the farm and the four-year average determined under paragraph (1) for
soybeans and each other oilseed produced on the farm.
(b) SINGLE ELECTION; TIME
FOR ELECTION- The opportunity to make the election described in subsection
(a) shall be available to producers on a farm only once. The producers
shall notify the Secretary of the election made by the producers under
such subsection not later than 180 days after the date of the enactment
of this Act.
(c) EFFECT OF FAILURE TO
MAKE ELECTION- If the producers on a farm fail to make the election under
subsection (a), or fail to timely notify the Secretary of the selected
option as required by subsection (b), the producers shall be deemed to
have made the election described in subsection (a)(2) to determine base
acres for all covered commodities on the farm.
(d) APPLICATION OF ELECTION
TO ALL COVERED COMMODITIES- The election made under subsection (a) or deemed
to be made under subsection (c) with respect to a farm shall apply to all
of the covered commodities on the farm. Producers may not make the election
described in subsection (a)(1) for one covered commodity and the election
described in subsection (a)(2) for other covered commodities on the farm.
(e) TREATMENT OF CONSERVATION
RESERVE CONTRACT ACREAGE-
(1) IN GENERAL- In the case
of producers on a farm that make the election described in subsection (a)(2),
the Secretary shall provide for an adjustment in the base acres for the
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) SPECIAL PAYMENT RULES-
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
either fixed decoupled payments and counter-cyclical payments with respect
to the acreage added to the farm under this subsection or a prorated payment
under the conservation reserve contract, but not both.
(f) PAYMENT ACRES- The payment
acres for a covered commodity on a farm shall be equal to 85 percent of
the base acres for the commodity.
(g) 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 one or more covered
commodities for the farm or peanut acres 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. The Secretary shall give
the producers on the farm the opportunity to select the base acres or peanut
acres against which the reduction will be made.
(2) OTHER ACREAGE- For purposes
of paragraph (1), the Secretary shall include the following:
(A) Any peanut acres for
the farm under chapter 3 of subtitle C.
(B) 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.).
(C) Any other acreage on
the farm enrolled in a conservation program for which payments are made
in exchange for not producing an agricultural commodity on the acreage.
(3) EXCEPTION FOR DOUBLE-CROPPED
ACREAGE- In applying paragraph (1), the Secretary shall make an exception
in the case of double cropping, as determined by the Secretary.
SEC. 104. AVAILABILITY OF FIXED,
DECOUPLED PAYMENTS.
(a) PAYMENT REQUIRED- For
each of the 2002 through 2011 crop years of each covered commodity, the
Secretary shall make fixed, decoupled payments to eligible producers.
(b) PAYMENT RATE- The payment
rates used to make fixed, decoupled payments with respect to covered commodities
for a crop year are as follows:
(1) Wheat, $0.53 per bushel.
(2) Corn, $0.30 per bushel.
(3) Grain sorghum, $0.36
per bushel.
(4) Barley, $0.25 per bushel.
(5) Oats, $0.025 per bushel.
(6) Upland cotton, $0.0667
per pound.
(7) Rice, $2.35 per hundredweight.
(8) Soybeans, $0.42 per
bushel.
(9) Other oilseeds, $0.0074
per pound.
(c) PAYMENT AMOUNT- The
amount of the fixed, decoupled payment to be paid to the eligible producers
on a farm for a covered commodity for a crop year shall be equal to the
product of the following:
(1) The payment rate specified
in subsection (b).
(2) The payment acres of
the covered commodity on the farm.
(3) The payment yield for
the covered commodity for the farm.
(1) GENERAL RULE- Fixed,
decoupled payments shall be paid not later than September 30 of each of
fiscal years 2002 through 2011. In the case of the 2002 crop, payments
may begin to be made on or after December 1, 2001.
(2) ADVANCE PAYMENTS- At
the option of an eligible producer, 50 percent of the fixed, decoupled
payment for a fiscal year shall be paid on a date selected by the producer.
The selected date shall be on or after December 1 of that fiscal year,
and the producer may change the selected date for a subsequent fiscal year
by providing advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE
PAYMENTS- If a producer that receives an advance fixed, decoupled payment
for a fiscal year ceases to be an eligible producer before the date the
fixed, decoupled payment would otherwise have been made by the Secretary
under paragraph (1), the producer shall be responsible for repaying the
Secretary the full amount of the advance payment.
SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS.
(a) PAYMENT REQUIRED- The
Secretary shall make counter-cyclical payments with respect to a covered
commodity whenever the Secretary determines that the effective price for
the commodity is less than the target price for the commodity.
(b) EFFECTIVE PRICE- For
purposes of subsection (a), the effective price for a covered commodity
is equal to the sum of the following:
(1) The higher of the following:
(A) The national average
market price received by producers during the 12-month marketing year for
the commodity, as determined by the Secretary.
(B) The national average
loan rate for a marketing assistance loan for the covered commodity in
effect for the same period under subtitle B.
(2) The payment rate in
effect for the covered commodity under section 104 for the purpose of making
fixed, decoupled payments with respect to the commodity.
(c) TARGET PRICE- For purposes
of subsection (a), the target prices for covered commodities are as follows:
(1) Wheat, $4.04 per bushel.
(2) Corn, $2.78 per bushel.
(3) Grain sorghum, $2.64
per bushel.
(4) Barley, $2.39 per bushel.
(5) Oats, $1.47 per bushel.
(6) Upland cotton, $0.736
per pound.
(7) Rice, $10.82 per hundredweight.
(8) Soybeans, $5.86 per
bushel.
(9) Other oilseeds, $0.1036
per pound.
(d) PAYMENT RATE- The payment
rate used to make counter-cyclical payments with respect to a covered commodity
for a crop year shall be equal to the difference between--
(1) the target price for
the commodity; and
(2) the effective price
determined under subsection (b) for the commodity.
(e) PAYMENT AMOUNT- The
amount of the counter-cyclical payment to be paid to the eligible producers
on a farm for a covered commodity for a crop year shall be equal to the
product of the following:
(1) The payment rate specified
in subsection (d).
(2) The payment acres of
the covered commodity on the farm.
(3) The payment yield for
the covered commodity for the farm.
(1) GENERAL RULE- The Secretary
shall make counter-cyclical payments under this section for a crop of a
covered commodity as soon as possible after determining under subsection
(a) that such payments are required for that crop year.
(2) PARTIAL PAYMENT- The
Secretary may permit, and, if so permitted, an eligible producer may elect
to receive, up to 40 percent of the projected counter-cyclical payment,
as determined by the Secretary, to be made under this section for a crop
of a covered commodity upon completion of the first six months of the marketing
year for that crop. The producer shall repay to the Secretary the amount,
if any, by which the partial payment exceeds the actual counter-cyclical
payment to be made for that marketing year.
(g) SPECIAL RULE FOR CURRENTLY
UNDESIGNATED OILSEED- If the Secretary uses the authority under section
100(8) to designate another oilseed as an oilseed for which counter-cyclical
payments may be made, the Secretary may modify the target price specified
in subsection (c)(9) that would otherwise apply to that oilseed as the
Secretary considers appropriate.
(h) SPECIAL RULE FOR BARLEY
USED ONLY FOR FEED PURPOSES- For purposes of calculating the effective
price for barley under subsection (b), the Secretary shall use the loan
rate in effect for barley under section 122(b)(3), except, in the case
of producers who received the higher loan rate provided under such section
for barley used only for feed purposes, the Secretary shall use that higher
loan rate.
SEC. 106. PRODUCER AGREEMENT
REQUIRED AS CONDITION ON PROVISION OF FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL
PAYMENTS.
(a) COMPLIANCE WITH CERTAIN
REQUIREMENTS-
(1) REQUIREMENTS- Before
the producers on a farm may receive fixed, decoupled payments or counter-cyclical
payments with respect to the farm, the producers shall agree, in exchange
for the payments--
(A) to comply with applicable
conservation requirements under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable
wetland protection requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting
flexibility requirements of section 107; and
(D) to use the land on the
farm, in an amount 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.
(2) COMPLIANCE- The Secretary
may issue such rules as the Secretary considers necessary to ensure producer
compliance with the requirements of paragraph (1).
(b) EFFECT OF FORECLOSURE-
A producer may not be required to make repayments to the Secretary of fixed,
decoupled payments and counter-cyclical payments if the farm has been foreclosed
on and the Secretary determines that forgiving the repayments is appropriate
to provide fair and equitable treatment. This subsection shall not void
the responsibilities of the producer under subsection (a) if the producer
continues or resumes operation, or control, of the farm. On the resumption
of operation or control over the farm by the producer, 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 (4), a transfer of (or change in) the interest
of a producer in base acres for which fixed, decoupled payments or counter-cyclical
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). The termination
shall be effective on the date of the transfer or change.
(2) TRANSFER OF PAYMENT
BASE- There is no restriction on the transfer of a farm's base acres or
payment yield as part of a change in the producers on the farm.
(3) 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 such subsection, as determined by the Secretary.
(4) EXCEPTION- If a producer
entitled to a fixed, decoupled payment or counter-cyclical payment dies,
becomes incompetent, or is otherwise unable to receive the payment, the
Secretary shall make the payment, in accordance with regulations prescribed
by the Secretary.
(1) IN GENERAL- As a condition
on the receipt of any benefits under this subtitle or subtitle B, the Secretary
shall require producers to submit to the Secretary acreage reports.
(2) CONFORMING AMENDMENT-
Section 15 of the Agricultural Marketing Act (12 U.S.C. 1141j) is amended
by striking subsection (d).
(e) 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. 107. 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, and dry peas).
(2) EXCEPTIONS- Paragraph
(1) shall not limit the planting of an agricultural commodity specified
in such paragraph--
(A) in any region in which
there is a history of double-cropping of covered commodities with 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 agricultural commodities specified
in paragraph (1) on base acres, except that fixed, decoupled payments and
counter-cyclical payments shall be reduced by an acre for each acre planted
to such an agricultural commodity; or
(C) by a producer who 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 producer's average annual planting history of such agricultural
commodity in the 1991 through 1995 crop years (excluding any crop year
in which no plantings were made), as determined by the Secretary; and
(ii) fixed, decoupled payments
and counter-cyclical payments shall be reduced by an acre for each acre
planted to such agricultural commodity.
SEC. 108. RELATION TO REMAINING
PAYMENT AUTHORITY UNDER PRODUCTION FLEXIBILITY CONTRACTS.
(a) TERMINATION OF SUPERSEDED
PAYMENT AUTHORITY- Notwithstanding section 113(a)(7) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7213(a)(7)) or any other provision
of law, the Secretary shall not make payments for fiscal year 2002 after
the date of the enactment of this Act under production flexibility contracts
entered into under section 111 of such Act (7 U.S.C. 7211).
(b) CONTRACT PAYMENTS MADE
BEFORE ENACTMENT- If, on or before the date of the enactment of this Act,
a producer receives all or any portion of the payment authorized for fiscal
year 2002 under a production flexibility contract, the Secretary shall
reduce the amount of the fixed, decoupled payment otherwise due the producer
for that same fiscal year by the amount of the fiscal year 2002 payment
previously received by the producer.
SEC. 109. PAYMENT LIMITATIONS.
Sections 1001 through 1001C
of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308-3) shall apply
to fixed, decoupled payments and counter-cyclical payments.
SEC. 110. PERIOD OF EFFECTIVENESS.
This subtitle shall be effective
beginning with the 2002 crop year of each covered commodity through the
2011 crop year.
Subtitle B--Marketing Assistance
Loans and Loan Deficiency Payments
SEC. 121. AVAILABILITY OF NONRECOURSE
MARKETING ASSISTANCE LOANS FOR COVERED COMMODITIES.
(a) NONRECOURSE LOANS AVAILABLE-
(1) AVAILABILITY- For each
of the 2002 through 2011 crops of each covered commodity, the Secretary
shall make available to producers on a farm nonrecourse marketing assistance
loans for covered commodities produced on the farm. The loans shall be
made under terms and conditions that are prescribed by the Secretary and
at the loan rate established under section 122 for the covered commodity.
(2) INCLUSION OF EXTRA LONG
STAPLE COTTON- In this subtitle, the term `covered commodity' includes
extra long staple cotton.
(b) ELIGIBLE PRODUCTION-
Any production of a covered commodity on a farm shall be eligible for a
marketing assistance loan under subsection (a).
(c) TREATMENT OF CERTAIN
COMMINGLED COMMODITIES- In carrying out this subtitle, the Secretary shall
make loans to a producer that is otherwise eligible to obtain a marketing
assistance loan, but for the fact the covered commodity owned by the producer
is commingled with covered commodities of other producers in facilities
unlicensed for the storage of agricultural commodities by the Secretary
or a State licensing authority, if the producer obtaining the loan agrees
to immediately redeem the loan collateral in accordance with section 166
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7286).
(d) COMPLIANCE WITH CONSERVATION
AND WETLANDS REQUIREMENTS- As a condition of the receipt of a marketing
assistance loan under subsection (a), the producer shall comply with applicable
conservation requirements under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection
requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et
seq.) during the term of the loan.
(e) DEFINITION OF EXTRA
LONG STAPLE COTTON- In this subtitle, the term `extra long staple cotton'
means cotton that--
(1) 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
(2) is ginned on a roller-type
gin or, if authorized by the Secretary, ginned on another type gin for
experimental purposes.
(f) TERMINATION OF SUPERSEDED
LOAN AUTHORITY- Notwithstanding section 131 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7231), nonrecourse marketing
assistance loans shall not be made for the 2002 crop of covered commodities
under subtitle C of title I of such Act.
SEC. 122. LOAN RATES FOR NONRECOURSE
MARKETING ASSISTANCE LOANS.
(1) LOAN RATE- Subject to
paragraph (2), the loan rate for a marketing assistance loan under section
121 for wheat shall be--
(A) not less than 85 percent
of the simple average price received by producers of wheat, as determined
by the Secretary, during the marketing years for the immediately preceding
five crops of wheat, excluding the year in which the average price was
the highest and the year in which the average price was the lowest in the
period; but
(B) not more than $2.58
per bushel.
(2) STOCKS TO USE RATIO
ADJUSTMENT- If the Secretary estimates for any marketing year that the
ratio of ending stocks of wheat to total use for the marketing year will
be--
(A) equal to or greater
than 30 percent, the Secretary may reduce the loan rate for wheat for the
corresponding crop by an amount not to exceed 10 percent in any year;
(B) less than 30 percent
but not less than 15 percent, the Secretary may reduce the loan rate for
wheat for the corresponding crop by an amount not to exceed 5 percent in
any year; or
(C) less than 15 percent,
the Secretary may not reduce the loan rate for wheat for the corresponding
crop.
(1) LOAN RATE FOR CORN AND
GRAIN SORGHUM- Subject to paragraph (2), the loan rate for a marketing
assistance loan under section 121 for corn and grain sorghum shall be--
(A) not less than 85 percent
of the simple average price received by producers of corn or grain sorghum,
respectively, as determined by the Secretary, during the marketing years
for the immediately preceding five crops of the covered commodity, excluding
the year in which the average price was the highest and the year in which
the average price was the lowest in the period; but
(B) not more than $1.89
per bushel.
(2) STOCKS TO USE RATIO
ADJUSTMENT- If the Secretary estimates for any marketing year that the
ratio of ending stocks of corn or grain sorghum to total use for the marketing
year will be--
(A) equal to or greater
than 25 percent, the Secretary may reduce the loan rate for the covered
commodity for the corresponding crop by an amount not to exceed 10 percent
in any year;
(B) less than 25 percent
but not less than 12.5 percent, the Secretary may reduce the loan rate
for the covered commodity for the corresponding crop by an amount not to
exceed 5 percent in any year; or
(C) less than 12.5 percent,
the Secretary may not reduce the loan rate for the covered commodity for
the corresponding crop.
(3) OTHER FEED GRAINS- The
loan rate for a marketing assistance loan under section 121 for barley
and oats shall be--
(A) established at such
level as the Secretary determines is fair and reasonable in relation to
the rate that loans are made available for corn, taking into consideration
the feeding value of the commodity in relation to corn; but
(i) $1.65 per bushel for
barley, except not more than $1.70 per bushel for barley used only for
feed purposes, as determined by the Secretary; and
(ii) $1.21 per bushel for
oats.
(1) LOAN RATE- Subject to
paragraph (2), the loan rate for a marketing assistance loan under section
121 for upland cotton shall be established by the Secretary at such loan
rate, per pound, as will reflect for the base quality of upland cotton,
as determined by the Secretary, at average locations in the United States
a rate that is not less than the smaller of--
(A) 85 percent of the average
price (weighted by market and month) of the base quality of cotton as quoted
in the designated United States spot markets during 3 years of the 5-year
period ending July 31 of the year preceding the year in which the crop
is planted, excluding the year in which the average price was the highest
and the year in which the average price was the lowest in the period; or
(B) 90 percent of the average,
for the 15-week period beginning July 1 of the year preceding the year
in which the crop is planted, of the five lowest-priced growths of the
growths quoted for Middling 1 3/32 -inch cotton C.I.F. Northern Europe
(adjusted downward by the average difference during the period April 15
through October 15 of the year preceding the year in which the crop is
planted between the average Northern European price quotation of such quality
of cotton and the market quotations in the designated United States spot
markets for the base quality of upland cotton), as determined by the Secretary.
(2) LIMITATIONS- The loan
rate for a marketing assistance loan for upland cotton shall not be less
than $0.50 per pound or more than $0.5192 per pound.
(d) EXTRA LONG STAPLE COTTON-
The loan rate for a marketing assistance loan under section 121 for extra
long staple cotton shall be $0.7965 per pound.
(e) RICE- The loan rate
for a marketing assistance loan under section 121 for rice shall be $6.50
per hundredweight.
(1) SOYBEANS- The loan rate
for a marketing assistance loan under section 121 for soybeans shall be--
(A) not less than 85 percent
of the simple average price received by producers of soybeans, as determined
by the Secretary, during the marketing years for the immediately preceding
five crops of soybeans, excluding the year in which the average price was
the highest and the year in which the average price was the lowest in the
period; but
(B) not more than $4.92
per bushel.
(2) OTHER OILSEEDS- The
loan rate for a marketing assistance loan under section 121 for other oilseeds
shall be--
(A) not less than 85 percent
of the simple average price received by producers of the other oilseed,
as determined by the Secretary, during the marketing years for the immediately
preceding five crops of the other oilseed, excluding the year in which
the average price was the highest and the year in which the average price
was the lowest in the period; but
(B) not more than $0.087
per pound.
SEC. 123. TERM OF LOANS.
(a) TERM OF LOAN- In the
case of each covered commodity (other than upland cotton or extra long
staple cotton), a marketing assistance loan under section 121 shall have
a term of nine months beginning on the first day of the first month after
the month in which the loan is made.
(b) SPECIAL RULE FOR COTTON-
A marketing assistance loan for upland cotton or extra long staple cotton
shall have a term of 10 months beginning on the first day of the month
in which the loan is made.
(c) EXTENSIONS PROHIBITED-
The Secretary may not extend the term of a marketing assistance loan for
any covered commodity.
SEC. 124. REPAYMENT OF LOANS.
(a) REPAYMENT RATES FOR
WHEAT, FEED GRAINS, AND OILSEEDS- The Secretary shall permit a producer
to repay a marketing assistance loan under section 121 for wheat, corn,
grain sorghum, barley, oats, and oilseeds at a rate that is the lesser
of--
(1) the loan rate established
for the commodity under section 122, 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; and
(D) allow the commodity
produced in the United States to be marketed freely and competitively,
both domestically and internationally.
(b) REPAYMENT RATES FOR
UPLAND COTTON AND RICE- The Secretary shall permit producers to repay a
marketing assistance loan under section 121 for upland cotton and rice
at a rate that is the lesser of--
(1) the loan rate established
for the commodity under section 122, 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 RATES FOR
EXTRA LONG STAPLE COTTON- Repayment of a marketing assistance loan for
extra long staple cotton shall be at the loan rate established for the
commodity under section 122, plus interest (as determined by the Secretary).
(d) PREVAILING WORLD MARKET
PRICE- For purposes of this section and section 127, the Secretary shall
prescribe by regulation--
(1) a formula to determine
the prevailing world market price for each covered 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 covered commodity.
(e) ADJUSTMENT OF PREVAILING
WORLD MARKET PRICE FOR UPLAND COTTON-
(1) IN GENERAL- During the
period beginning on the date of the enactment of this Act and ending July
31, 2012, the prevailing world market price for upland cotton (adjusted
to United States quality and location) established under subsection (d)
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 122, 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 section 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.
(f) TIME FOR FIXING REPAYMENT
RATE- In the case of a producer that marketed or otherwise lost beneficial
interest in a covered commodity before repaying the marketing assistance
loan made under section 121 with respect to the commodity, the Secretary
shall permit the producer to repay the loan at the lowest repayment rate
that was in effect for that covered commodity under this section as of
the date that the producer lost beneficial interest, as determined by the
Secretary.
SEC. 125. LOAN DEFICIENCY PAYMENTS.
(a) AVAILABILITY OF LOAN
DEFICIENCY PAYMENTS- Except as provided in subsection (d), the Secretary
may make loan deficiency payments available to producers who, although
eligible to obtain a marketing assistance loan under section 121 with respect
to a covered commodity, agree to forgo obtaining the loan for the commodity
in return for payments under this section.
(b) COMPUTATION- A loan
deficiency payment under this section shall be computed by multiplying--
(1) the loan payment rate
determined under subsection (c) for the covered commodity; by
(2) the quantity of the
covered commodity produced by the eligible producers, excluding any quantity
for which the producers obtain a loan under section 121.
(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 122 for the covered commodity; exceeds
(2) the rate at which a
loan for the commodity may be repaid under section 124.
(d) EXCEPTION FOR EXTRA
LONG STAPLE COTTON- This section shall not apply with respect to extra
long staple cotton.
(e) TIME FOR PAYMENT- The
Secretary shall make a payment under this section to a producer with respect
to a quantity of a covered commodity as of the earlier of the following:
(1) The date on which the
producer marketed or otherwise lost beneficial interest in the commodity,
as determined by the Secretary.
(2) The date the producer
requests the payment.
(f) CONTINUATION OF SPECIAL
LDP RULE FOR 2001 CROP YEAR- Section 135(a)(2) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7235(a)(2)) is amended by
striking `2000 crop year' and inserting `2000 and 2001 crop years'.
SEC. 126. PAYMENTS IN LIEU OF
LOAN DEFICIENCY PAYMENTS FOR GRAZED ACREAGE.
(a) ELIGIBLE PRODUCERS-
Effective for the 2002 through 2011 crop years, in the case of a producer
that would be eligible for a loan deficiency payment under section 125
for wheat, barley, or oats, but that elects to use acreage planted to the
wheat, barley, or oats for the grazing of livestock, the Secretary shall
make a payment to the producer under this section if the producer enters
into an agreement with the Secretary to forgo any other harvesting of the
wheat, barley, or oats on that acreage.
(b) PAYMENT AMOUNT- The
amount of a payment made to a producer on a farm under this section shall
be equal to the amount determined by multiplying--
(1) the loan deficiency
payment rate determined under section 125(c) in effect, as of the date
of the agreement, for the county in which the farm is located; by
(2) the payment quantity
determined by multiplying--
(A) the quantity of the
grazed acreage on the farm with respect to which the producer elects to
forgo harvesting of wheat, barley, or oats; and
(B) the payment yield for
that covered commodity on the farm.
(c) TIME, MANNER, AND AVAILABILITY
OF PAYMENT-
(1) TIME AND MANNER- A payment
under this section shall be made at the same time and in the same manner
as loan deficiency payments are made under section 125.
(2) AVAILABILITY- The Secretary
shall establish an availability period for the payment authorized by this
section that is consistent with the availability period for wheat, barley,
and oats established by the Secretary for marketing assistance loans authorized
by this subtitle.
(d) PROHIBITION ON CROP
INSURANCE OR NONINSURED CROP ASSISTANCE- A 2002 through 2011 crop of wheat,
barley, or oats planted on acreage that a producer elects, in the agreement
required by subsection (a), to use for the grazing of livestock in lieu
of any other harvesting of the crop shall not be eligible for insurance
under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured
crop assistance under section 196 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7333).
SEC. 127. SPECIAL MARKETING
LOAN PROVISIONS FOR UPLAND COTTON.
(a) Cotton User Marketing
Certificates-
(1) ISSUANCE- During the
period beginning on the date of the enactment of this Act and ending July
31, 2012, 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 four-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; 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 122.
(2) VALUE OF CERTIFICATES
OR PAYMENTS- The value of the marketing certificates or cash payments shall
be based on the amount of the difference in the prices during the fourth
week of the consecutive four-week period multiplied by the quantity of
upland cotton included in the documented sales.
(3) ADMINISTRATION OF MARKETING
CERTIFICATES-
(A) REDEMPTION, MARKETING,
OR EXCHANGE- 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. 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 issued 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 the enactment of this Act and ending July 31, 2012, as provided
in this subsection.
(B) PROGRAM REQUIREMENTS-
Except as provided in subparagraph (C), whenever the Secretary determines
and announces that for any consecutive four-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 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 one week's consumption of upland cotton by domestic mills
at the seasonally adjusted average rate of the most recent three 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 the 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) DEFINITION- 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.
(7) 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 five week's consumption of upland cotton by domestic
mills at the seasonally adjusted average rate of the three months immediately
preceding the first special import quota established in any marketing year.
(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
three 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
three months for which data are available; and
(aa) average exports
of upland cotton during the preceding six 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. 128. SPECIAL COMPETITIVE
PROVISIONS FOR EXTRA LONG STAPLE COTTON.
(a) COMPETITIVENESS PROGRAM-
Notwithstanding any other provision of law, during the period beginning
on the date of the enactment of this Act and ending on July 31, 2012, the
Secretary shall carry out a program to maintain and expand the domestic
use of extra long staple cotton produced in the United States, to increase
exports of extra long staple cotton produced in the United States, and
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 four-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 who 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
four-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 four-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. 129. AVAILABILITY OF RECOURSE
LOANS FOR HIGH MOISTURE FEED GRAINS AND SEED COTTON AND OTHER FIBERS.
(a) HIGH MOISTURE FEED GRAINS-
(1) RECOURSE LOANS AVAILABLE-
For each of the 2002 through 2011 crops of corn and grain sorghum, the
Secretary shall make available recourse loans, as determined by the Secretary,
to producers on a farm who--
(A) normally harvest all
or a portion of their crop of corn or grain sorghum in a high moisture
state;
(i) 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 issued by the Secretary; or
(ii) 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;
(C) 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
(D) comply with deadlines
established by the Secretary for harvesting the corn or grain sorghum and
submit applications for loans under this subsection within deadlines established
by the Secretary.
(2) ELIGIBILITY OF ACQUIRED
FEED GRAINS- A loan under this subsection shall be made on a quantity of
corn or grain sorghum of the same crop acquired by the producer equivalent
to a quantity determined by multiplying--
(A) the acreage of the corn
or grain sorghum in a high moisture state harvested on the producer's farm;
by
(B) 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.
(3) HIGH MOISTURE STATE
DEFINED- In this subsection, the term `high moisture state' means corn
or grain sorghum having a moisture content in excess of Commodity Credit
Corporation standards for marketing assistance loans made by the Secretary
under section 121.
(b) RECOURSE LOANS AVAILABLE
FOR SEED COTTON- For each of the 2002 through 2011 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.
(c) 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).
(d) TERMINATION OF SUPERSEDED
LOAN AUTHORITY- Notwithstanding section 137 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7237), recourse loans shall
not be made for the 2002 crop of corn, grain sorghum, and seed cotton under
such section.
SEC. 130. AVAILABILITY OF NONRECOURSE
MARKETING ASSISTANCE LOANS FOR WOOL AND MOHAIR.
(a) NONRECOURSE LOANS AVAILABLE-
During the 2002 through 2011 marketing years for wool and mohair, the Secretary
shall make available to producers on a farm nonrecourse marketing assistance
loans for wool and mohair produced on the farm during that marketing year.
(b) LOAN RATE- The loan
rate for a loan under subsection (a) shall be not more than--
(1) $1.00 per pound for
graded wool;
(2) $0.40 per pound for
nongraded wool; and
(3) $4.20 per pound for
mohair.
(c) TERM OF LOAN- A loan
under subsection (a) shall have a term of 1 year beginning on the first
day of the first month after the month in which the loan is made.
(d) REPAYMENT RATES- The
Secretary shall permit a producer to repay a marketing assistance loan
under subsection (a) for wool or mohair at a rate that is the lesser of--
(1) the loan rate established
for the commodity under subsection (b), 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; and
(D) allow the commodity
produced in the United States to be marketed freely and competitively,
both domestically and internationally.
(e) LOAN DEFICIENCY PAYMENTS-
(1) AVAILABILITY- The Secretary
may make loan deficiency payments available to producers that, although
eligible to obtain a marketing assistance loan under this section, agree
to
forgo obtaining the loan in
return for payments under this subsection.
(2) COMPUTATION- A loan
deficiency payment under this subsection shall be computed by multiplying--
(A) the loan payment rate
in effect under paragraph (3) for the commodity; by
(B) the quantity of the
commodity produced by the eligible producers, excluding any quantity for
which the producers obtain a loan under this subsection.
(3) LOAN PAYMENT RATE- For
purposes of this subsection, the loan payment rate for wool or mohair shall
be the amount by which--
(A) the loan rate in effect
for the commodity under subsection (b); exceeds
(B) the rate at which a
loan for the commodity may be repaid under subsection (d).
(4) TIME FOR PAYMENT- The
Secretary shall make a payment under this subsection to a producer with
respect to a quantity of a wool or mohair as of the earlier of the following:
(A) The date on which the
producer marketed or otherwise lost beneficial interest in the wool or
mohair, as determined by the Secretary.
(B) The date the producer
requests the payment.
(f) LIMITATIONS- The marketing
assistance loan gains and loan deficiency payments that a person may receive
for wool and mohair under this section shall be subject to a separate payment
limitation, but in the same dollar amount, as the payment limitation that
applies to marketing assistance loans and loan deficiency payments received
by producers of other agricultural commodities in the same marketing year.
SEC. 131. AVAILABILITY OF NONRECOURSE
MARKETING ASSISTANCE LOANS FOR HONEY.
(a) NONRECOURSE LOANS AVAILABLE-
During the 2002 through 2011 crop years for honey, the Secretary shall
make available to producers on a farm nonrecourse marketing assistance
loans for honey produced on the farm during that crop year.
(b) LOAN RATE- The loan
rate for a marketing assistance loan for honey under subsection (a) shall
be equal to $0.60 cents per pound.
(c) TERM OF LOAN- A marketing
assistance loan under subsection (a) shall have a term of 1 year beginning
on the first day of the first month after the month in which the loan is
made.
(d) REPAYMENT RATES- The
Secretary shall permit a producer to repay a marketing assistance loan
for honey under subsection (a) at a rate that is the lesser of--
(1) the loan rate for honey,
plus interest (as determined by the Secretary); or
(2) the prevailing domestic
market price for honey, as determined by the Secretary.
(e) LOAN DEFICIENCY PAYMENTS-
(1) AVAILABILITY- The Secretary
may make loan deficiency payments available to any producer of honey that,
although eligible to obtain a marketing assistance loan under subsection
(a), agrees to forgo obtaining the loan in return for a payment under this
subsection.
(2) COMPUTATION- A loan
deficiency payment under this subsection shall be determined by multiplying--
(A) the loan payment rate
determined under paragraph (3); by
(B) the quantity of honey
that the producer is eligible to place under loan, but for which the producer
forgoes obtaining the loan in return for a payment under this subsection.
(3) LOAN PAYMENT RATE- For
the purposes of this subsection, the loan payment rate shall be the amount
by which--
(A) the loan rate established
under subsection (b); exceeds
(B) the rate at which a
loan may be repaid under subsection (d).
(4) TIME FOR PAYMENT- The
Secretary shall make a payment under this subsection to a producer with
respect to a quantity of a honey as of the earlier of the following:
(A) The date on which the
producer marketed or otherwise lost beneficial interest in the honey, as
determined by the Secretary.
(B) The date the producer
requests the payment.
(f) LIMITATIONS- The marketing
assistance loan gains and loan deficiency payments that a person may receive
for a crop of honey under this section shall be subject to a separate payment
limitation, but in the same dollar amount, as the payment limitation that
applies to marketing assistance loans and loan deficiency payments received
by producers of other agricultural commodities in the same crop year.
(g) PREVENTION OF FORFEITURES-
The Secretary shall carry out this section in such a manner as to minimize
forfeitures of honey marketing assistance loans.
SEC. 132. PRODUCER RETENTION
OF ERRONEOUSLY PAID LOAN DEFICIENCY PAYMENTS AND MARKETING LOAN GAINS.
Notwithstanding any other
provision of law, the Secretary of Agriculture and the Commodity Credit
Corporation shall not require producers in Erie County, Pennsylvania, to
repay loan deficiency payments and marketing loan gains erroneously paid
or determined to have been earned by the Commodity Credit Corporation for
certain 1998 and 1999 crops under subtitle C of title I of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231 et seq.).
In the case of a producer who has already made the repayment on or before
the date of the enactment of this Act, the Commodity Credit Corporation
shall reimburse the producer for the full amount of the repayment.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 141. MILK PRICE SUPPORT
PROGRAM.
(a) SUPPORT ACTIVITIES-
During the period beginning on January 1, 2002, and ending on December
31, 2011, the Secretary of Agriculture 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.
(c) PURCHASE 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. 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.
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. Section 553 of title 5, United States Code, shall not
apply with respect to the implementation of this section.
(2) 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.
(e) COMMODITY CREDIT CORPORATION-
The Secretary shall carry out the program authorized by this section through
the Commodity Credit Corporation.
SEC. 142. REPEAL OF RECOURSE
LOAN PROGRAM FOR PROCESSORS.
Section 142 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7252) is repealed.
SEC. 143. EXTENSION OF 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 `2011'.
(b) DAIRY INDEMNITY PROGRAM-
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking `1995'
and inserting `2011'.
SEC. 144. 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
new paragraph:
`(3) FLUID MILK PRODUCT-
The term `fluid milk product' has the meaning given such term--
`(A) in section 1000.15
of title 7, Code of Federal Regulations, subject to such amendments as
may be made from time to time; or
`(B) in any successor regulation
providing a definition of such 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. 145. DAIRY PRODUCT MANDATORY
REPORTING.
Section 273(b)(1)(B) of
the Agricultural Marketing Act of 1946 (7 U.S.C. 1637b(b)(1)(B)) is amended--
(1) by inserting `and substantially
identical products designated by the Secretary' after `dairy products'
the first place it appears; and
(2) by inserting `and such
substantially identical products' after `dairy products' the second place
it appears.
SEC. 146. STUDY OF NATIONAL
DAIRY POLICY.
(a) STUDY REQUIRED- Not
later than April 30, 2002, the Secretary of Agriculture shall submit to
Congress a comprehensive economic evaluation of the potential direct and
indirect effects of the various elements of the national dairy policy,
including an examination of the effect of the national dairy policy on--
(1) farm price stability,
farm profitability and viability, and local rural economies in the United
States;
(2) child, senior, and low-income
nutrition programs, including impacts on schools and institutions participating
in the programs, on program recipients, and other factors; and
(3) the wholesale and retail
cost of fluid milk, dairy farms, and milk utilization.
(b) NATIONAL DAIRY POLICY
DEFINED- In this section, the term `national dairy policy' means the dairy
policy of the United States as evidenced by the following policies and
programs:
(1) Federal Milk Marketing
Orders.
(2) Interstate dairy compacts
(including proposed compacts described in H.R. 1827 and S. 1157, as introduced
in the 107th Congress).
(3) Over-order premiums
and State pricing programs.
(4) Direct payments to milk
producers.
(5) Federal milk price support
program.
(6) Export programs regarding
milk and dairy products, such as the Dairy Export Incentive Program.
CHAPTER 2--SUGAR
SEC. 151. SUGAR PROGRAM.
(a) CONTINUATION OF PROGRAM-
Subsection (i) of section 156 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7251) is amended--
(1) by striking `(other
than subsection (f))'; and
(2) by striking `2002 crops'
and inserting `2011 crops'.
(b) TERMINATION OF MARKETING
ASSESSMENT AND FORFEITURE PENALTY- Effective as of October 1, 2001, subsections
(f) and (g) of such section are repealed.
(c) LOAN RATE ADJUSTMENTS-
Subsection (c) of such section is amended--
(1) by striking `REDUCTION
IN LOAN RATES' and inserting `LOAN RATE ADJUSTMENTS'; and
(A) by striking `REDUCTION
REQUIRED' and inserting `POSSIBLE REDUCTION'; and
(B) by striking `shall'
and inserting `may'.
(d) NOTIFICATION- Subsection
(e) of such section is amended by adding at the end the following new paragraph:
`(3) PREVENTION OF ONEROUS
NOTIFICATION REQUIREMENTS- 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
upon the maturity of the loan.'.
(e) IN PROCESS SUGAR- Such
section is further amended by inserting after subsection (e) the following
new subsection (f):
`(f) LOANS FOR IN-PROCESS
SUGAR-
`(1) AVAILABILITY; RATE-
The Secretary shall make nonrecourse loans available to processors of domestically
grown sugarcane and sugar beets for in-process sugars and syrups derived
from such crops. The loan rate shall be equal to 80 percent of the loan
rate applicable to raw cane sugar or refined beet sugar, depending on the
source material for the in-process sugars and syrups.
`(2) FURTHER PROCESSING
UPON FORFEITURE- As a condition on the forfeiture of in-process sugars
and syrups serving as collateral for a loan under paragraph (1), 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). 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, which shall make a payment to the processor in an amount
equal to the difference between the loan rate for raw cane sugar or refined
beet sugar, whichever applies, and the loan rate the processor received
under paragraph (1).
`(3) LOAN CONVERSION- If
the processor does not forfeit the collateral as described in paragraph
(2), 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 then obtain a loan
under subsection (a) or (b) on the raw cane sugar or refined beet sugar,
as appropriate.
`(4) DEFINITION- In this
subsection the term `in-process sugars and syrups' does not include raw
sugar, liquid sugar, invert sugar, invert syrup, or other finished products
that are otherwise eligible for loans under subsection (a) or (b).'.
(f) ADMINISTRATION OF PROGRAM-
Such section is further amended by adding at the end the following new
subsection:
`(j) AVOIDING FORFEITURES;
CORPORATION INVENTORY DISPOSITION-
`(1) NO COST- To the maximum
extent practicable, the Secretary shall operate the sugar 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-
In support of the objective specified in paragraph (1), the Commodity Credit
Corporation may accept bids for commodities 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
(when the processors are acting in conjunction with the producers of the
sugarcane or sugar beets processed by such processors) in return for the
reduction of production of raw cane sugar or refined beet sugar, as appropriate.
The authority provided under this paragraph is in addition to any authority
of the Corporation under any other law.'.
(g) INFORMATION REPORTING-
Subsection (h) of such section is amended--
(1) by redesignating paragraphs
(2) and (3) as paragraphs (4) and (5), respectively;
(2) by inserting after paragraph
(1) the following new paragraphs:
`(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 sugarcane
producers to report, in the manner prescribed by the Secretary, the producer's
sugarcane yields and acres planted to sugarcane.
`(B) OTHER STATES- The Secretary
may require producers of sugarcane or sugar beets not covered by paragraph
(1) to report, in the manner prescribed by the Secretary, each producer's
sugarcane or sugar beet yields and acres planted to sugarcane or sugar
beets, respectively.
`(3) DUTY OF IMPORTERS TO
REPORT- 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, except such sugars, syrups, or molasses that are
within the quantities of tariff-rate quotas that are at the lower rate
of duties, to report, in the manner prescribed by the Secretary, the quantities
of such products imported and the sugar content or equivalent of such products.';
and
(3) in paragraph (5), as
so redesignated, by striking `paragraph (1)' and inserting `this subsection'.
(h) INTEREST RATE- Section
163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7283) is amended by adding at the end the following new sentence: `For
purposes of this section, raw cane sugar, refined beet sugar, and in process
sugar eligible for a loan under section 156 shall not be considered an
agricultural commodity.'.
SEC. 152. REAUTHORIZE PROVISIONS
OF AGRICULTURAL ADJUSTMENT ACT OF 1938 REGARDING 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 2011';
(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 the `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 new paragraph:
`(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 sugar containing products.';
(D) in paragraph (3), as
so redesignated--
(i) 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 new paragraph:
`(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.';
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 new subsection:
`(c) MARKETING ALLOTMENT
FOR SUGAR DERIVED FROM SUGAR BEETS AND MARKETING ALLOTMENT FOR 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 the percentage of 54.35; 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 the percentage of 45.65.';
(5) by amending subsection
(d) to read as follows:
`(d) FILLING CANE SUGAR
AND BEET SUGAR ALLOTMENTS- Each marketing allotment for cane sugar established
under this section may only be filled with sugar processed from domestically
grown sugarcane, and 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 inserting `(1) IN
GENERAL- ' before `The allotment for sugar' and indenting such paragraph
appropriately;
(B) in such paragraph (1)--
(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,';
(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) the following new paragraphs:
`(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 new subsection (f):
`(f) FILLING CANE SUGAR
ALLOTMENTS- Except as otherwise 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) 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 `156 of the Agricultural
Market Transition Act (7 U.S.C. 7272),'; and
(v) by striking `, if any,';
and
(11) by amending subsection
(h) to read as follows:
`(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 million short tons, raw value equivalent, and
that such imports would lead to a reduction of the overall allotment quantity,
the Secretary shall suspend the marketing allotments until such time as
such imports have been restricted, eliminated, or otherwise reduced to
or below the level of 1.532 million tons.'.
(d) ALLOCATION- Section
359d of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd) is amended--
(1) in subsection (a)(2)(A)--
(A) by inserting `(i) IN
GENERAL- ' before `The Secretary shall' and indenting such clause appropriately;
(B) in clause (i), as so
designated--
(i) by striking `interested
parties' and inserting `the affected sugar cane processors and growers';
(ii) by striking `by taking'
and all that follows through `allotment allocated.' and inserting `with
this subparagraph.'; and
(iii) by inserting at the
end the following new sentence: `Each such allocation shall be subject
to adjustment under section 359c(g).';
(C) by inserting after clause
(i) the following new clauses:
`(ii) MULTIPLE PROCESSOR
STATES- Except as provided in clause (iii), the Secretary shall allocate
the allotment for cane sugar among multiple cane sugar processors in a
single State based upon--
`(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;
`(III) past processings
of sugar from sugarcane, based on the average of the 3 highest years from
among crop years 1996 through 2000; and
`(IV) however, only with
respect to allotments under subclauses (I), (II), and (III) attributable
to the former operations of the Talisman processing facility, shall be
allocated among processors in the State coincident with the provisions
of the agreements of March 25 and March 26, 1999, between the affected
processors and the Department of the Interior.
`(iii) 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 upon--
`(I) past marketings of
sugar, based on the average of the two 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 two highest crop years
from the five crop years 1997 through 2001.
`(iv) NEW ENTRANTS- 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 such processor with an allocation which provides a fair, efficient
and equitable distribution of the allocations from the allotment for the
State in which the processor is located and, in the case of proportionate
share States, shall establish proportionate shares in an amount sufficient
to produce the sugarcane required to satisfy such allocations. However,
the allotment for a new processor under this clause shall not exceed 50,000
short tons, raw value.
`(v) 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 subsection (a)(2)(B)--
(A) by striking `interested
parties' and inserting `the affected sugar beet processors and growers';
and
(B) 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 deem appropriate after consultation with the affected sugar beet processors
and growers. However, in the case of any processor which has started processing
sugar beets after January 1, 1996, the Secretary shall provide such processor
with an allocation which 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 new subparagraph:
`(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 new subparagraph:
`(C) if after such 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) by striking `processor's
allocation' in the second sentence and inserting `allocation to the processor';
and
(B) by inserting after `request
of either party' the following: `, and such arbitration should be completed
within 45 days, but not more than 60 days, of the request';
(2) by redesignating subsection
(b) as subsection (c);
(3) by inserting after subsection
(a) the following new subsection:
`(b) SUGAR BEET PROCESSING
FACILITY CLOSURES- In the event that a sugar beet processing facility is
closed and the sugar beet growers who previously delivered beets to such
facility desire to deliver their beets to another processing company:
`(1) Such growers may petition
the Secretary to modify existing allocations to accommodate such a transition;
and
`(2) The Secretary may increase
the allocation to the processing company to which the growers desire to
deliver their sugar beets, and which the processing company agrees to accept,
not to exceed its processing capacity, to accommodate the change in deliveries.
`(3) Such 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) The Secretary's determination
on the issues raised by the petition shall be made within 60 days of the
filing of the petition.';
(4) in subsection (c), as
so redesignated--
(A) in paragraph (3)(A),
by striking `the preceding five years' and inserting `the two highest years
from among the years 1999, 2000, and 2001';
(B) in paragraph (4)(A),
by striking `each' and all that follows through `in effect' and inserting
`the two highest of the three (3) crop years 1999, 2000, and 2001'; and
(C) by inserting after paragraph
(7) the following new paragraph:
`(8) PROCESSING FACILITY
CLOSURES- In the event that a sugarcane processing facility subject to
this subsection is closed and the sugarcane growers who previously delivered
sugarcane to such facility desire to deliver their sugarcane to another
processing company--
`(A) such growers may petition
the Secretary to modify existing allocations to accommodate such a transition;
`(B) the Secretary may increase
the allocation to the processing company to which the growers desire to
deliver the sugarcane, and which the processing company agrees to accept,
not to exceed its processing capacity, to accommodate the change in deliveries;
`(C) such 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;
and
`(D) the Secretary's determination
on the issues raised by the petition shall be made within 60 days of the
filing of the petition.'.
(g) CONFORMING AMENDMENTS-
(1) The heading of part VII of subtitle B of Title III of the Agricultural
Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended to read as follows:
`PART VII--FLEXIBLE MARKETING
ALLOTMENTS FOR SUGAR'.
(2) 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 subsection (b), by
striking `3 consecutive' and inserting `5 consecutive'; and
(C) in subsection (c), by
inserting `or adjusted' after `share established'.
(3) Section 359j(c) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359jj) is amended--
(A) by amending the subsection
heading to read as follows: `DEFINITIONS- ';
(B) by striking `Notwithstanding'
and inserting the following:
`(1) UNITED STATES AND STATE-
Notwithstanding'; and
(C) by inserting after such
paragraph (1) the following new paragraph:
`(2) OFFSHORE STATES- For
purposes of this part, the term `offshore States' means the sugarcane producing
States located outside of the continental United States.'.
(h) LIFTING OF SUSPENSION-
Section 171(a)(1)(E) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7301(a)(1)(E)) is amended by inserting before the
period at the end the following: `, but only with respect to sugar marketings
through fiscal year 2002'.
SEC. 153. STORAGE FACILITY LOANS.
(a) STORAGE FACILITY LOAN
PROGRAM- Notwithstanding any other provision of law and as soon as practicable
after the date of the enactment of this section, 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-
Storage facility loans shall be made available to any processor of domestically
produced sugarcane or sugar beets that has a satisfactory credit history,
determines a need for increased storage capacity (taking into account the
effects of marketing allotments), and demonstrates an ability to repay
the loan.
(c) TERM OF LOANS- Storage
facility loans shall be for a minimum of seven years, and shall 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.
(d) ADMINISTRATION- The
sugar storage facility loan program shall be administered using the services,
facilities, funds, and authorities of the Commodity Credit Corporation.
CHAPTER 3--PEANUTS
SEC. 161. DEFINITIONS.
(1) COUNTER-CYCLICAL PAYMENT-
The term `counter-cyclical payment' means a payment made to peanut producers
under section 164.
(2) EFFECTIVE PRICE- The
term `effective price' means the price calculated by the Secretary under
section 164 for peanuts to determine whether counter-cyclical payments
are required to be made under such section for a crop year.
(3) HISTORIC PEANUT PRODUCER-
The term `historic peanut producer' means a peanut producer on a farm in
the United States that produced or attempted to produce peanuts during
any or all of crop years 1998, 1999, 2000, and 2001.
(4) FIXED, DECOUPLED PAYMENT-
The term `fixed, decoupled payment' means a payment made to peanut producers
under section 163.
(5) PAYMENT ACRES- The term
`payment acres' means 85 percent of the peanut acres on a farm, as established
under section 162, upon which fixed, decoupled payments and counter-cyclical
payments are to be made.
(6) PEANUT ACRES- The term
`peanut acres' means the number of acres assigned to a particular farm
by historic peanut producers pursuant to section 162(b).
(7) PAYMENT YIELD- The term
`payment yield' means the yield assigned to a particular farm by historic
peanut producers pursuant to section 162(b).
(8) PEANUT PRODUCER- The
term `peanut producer' means an owner, operator, landlord, tenant, or sharecropper
who shares in the risk of producing a crop of peanuts in the United States
and who is entitled to share in the crop available for marketing from the
farm, or would have shared had the crop been produced.
(9) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
(10) STATE- The term `State'
means each of the several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, and any other territory or possession
of the United States.
(11) TARGET PRICE- The term
`target price' means the price per ton of peanuts used to determine the
payment rate for counter-cyclical payments.
(12) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.
SEC. 162. ESTABLISHMENT OF PAYMENT
YIELD, PEANUT ACRES, AND PAYMENT ACRES FOR A FARM.
(a) ESTABLISHMENT OF PAYMENT
YIELD AND PAYMENT ACRES-
(1) DETERMINATION OF AVERAGE
YIELD- The Secretary shall determine, for each historic peanut producer,
the average yield for peanuts on each farm on which the historic peanut
producer produced peanuts for the 1998 through 2001 crop years, excluding
any crop year in which the producer did not produce peanuts. If, for any
of these four crop years
in which peanuts were planted
on a farm by the producer, the farm would have satisfied the eligibility
criteria established to carry out section 1102 of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies Appropriations
Act, 1999 (7 U.S.C. 1421 note; Public Law 105-277), the Secretary shall
assign a yield for the producer for that year equal to 65 percent of the
county yield, as determined by the Secretary.
(2) DETERMINATION OF ACREAGE
AVERAGE-
(A) IN GENERAL- Except as
provided in subparagraph (B), the Secretary shall determine, for each historic
peanut producer, the four-year average of acreage actually planted in peanuts
by the historic peanut producer for harvest on one or more farms during
crop years 1998, 1999, 2000, and 2001 and any acreage that the producer
was prevented from planting to peanuts during such crop years because of
drought, flood, or other natural disaster, or other condition beyond the
control of the producer, as determined by the Secretary. If more than one
historic peanut producer shared in the risk of producing the crop on the
farm, the historic peanut producers shall receive their proportional share
of the number of acres planted (or prevented from being planted) to peanuts
for harvest on the farm based on the sharing arrangement that was in effect
among the producers for the crop.
(B) SELECTION BY PRODUCER-
If a county in which a historic peanut producer described in subparagraph
(A) is located is declared a disaster area during 1 or more of the 4 crop
years described in that subparagraph, for purposes of determining the 4-year
average acreage for the historic peanut producer, the historic peanut producer
may elect to substitute, for not more than 1 of the crop years during which
a disaster is declared--
(i) the State average of
acreage actually planted in peanuts; for
(ii) the average of acreage
for the historic peanut producer determined by the Secretary under subparagraph
(A).
(3) TIME FOR DETERMINATIONS;
CONSIDERATIONS- The Secretary shall make the determinations required by
this subsection not later than 90 days after the date of the enactment
of this Act. In making such determinations, the Secretary shall take into
account changes in the number and identity of persons sharing in the risk
of producing a peanut crop since the 1998 crop year, including providing
a method for the assignment of average acres and average yield to a farm
when the historic peanut producer is no longer living or an entity composed
of historic peanut producers has been dissolved.
(b) ASSIGNMENT OF PAYMENT
YIELD AND PEANUT ACRES TO FARMS-
(1) ASSIGNMENT BY HISTORIC
PEANUT PRODUCERS- The Secretary shall give each historic peanut producer
an opportunity to assign the average peanut yield and average acreage determined
under subsection (a) for the producer to cropland on a farm.
(2) PAYMENT YIELD- The average
of all of the yields assigned by historic peanut producers to a farm shall
be deemed to be the payment yield for that farm for the purpose of making
fixed decoupled payments and counter-cyclical payments under this chapter.
(3) PEANUT ACRES- Subject
to subsection (e), the total number of acres assigned by historic peanut
producers to a farm shall be deemed to be the peanut acres for a farm for
the purpose of making fixed decoupled payments and counter-cyclical payments
under this chapter.
(c) TIME FOR ASSIGNMENT-
The opportunity to make the assignments described in subsection (b) shall
be available to historic peanut producers only once. The historic peanut
producers shall notify the Secretary of the assignments made by such producers
under such subsections not later than 180 days after the date of the enactment
of this Act.
(d) PAYMENT ACRES- The payment
acres for peanuts on a farm shall be equal to 85 percent of the peanut
acres assigned to the farm.
(e) PREVENTION OF EXCESS
PEANUT ACRES-
(1) REQUIRED REDUCTION-
If the sum of the peanut 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 peanut acres for the farm or base
acres for one or more covered commodities for the farm as necessary so
that the sum of the peanut acres and acreage described in paragraph (2)
does not exceed the actual cropland acreage of the farm. The Secretary
shall give the peanut producers on the farm the opportunity to select the
peanut acres or base acres against which the reduction will be made.
(2) OTHER ACREAGE- For purposes
of paragraph (1), the Secretary shall include the following:
(A) Any base acres for the
farm under subtitle A.
(B) 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.).
(C) Any other acreage on
the farm enrolled in a conservation program for which payments are made
in exchange for not producing an agricultural commodity on the acreage.
(3) EXCEPTION FOR DOUBLE-CROPPED
ACREAGE- In applying paragraph (1), the Secretary shall make an exception
in the case of double cropping, as determined by the Secretary.
SEC. 163. AVAILABILITY OF FIXED,
DECOUPLED PAYMENTS FOR PEANUTS.
(a) PAYMENT REQUIRED- For
each of the 2002 through 2011 crop years, the Secretary shall make fixed,
decoupled payments to peanut producers on a farm.
(b) PAYMENT RATE- The payment
rate used to make fixed, decoupled payments with respect to peanuts for
a crop year shall be equal to $0.018 per pound.
(c) PAYMENT AMOUNT- The
amount of the fixed, decoupled payment to be paid to the peanut producers
on a farm for a covered commodity for a crop year shall be equal to the
product of the following:
(1) The payment rate specified
in subsection (b).
(2) The payment acres on
the farm.
(3) The payment yield for
the farm.
(1) GENERAL RULE- Fixed,
decoupled payments shall be paid not later than September 30 of each of
fiscal years 2002 through 2011. In the case of the 2002 crop, payments
may begin to be made on or after December 1, 2001.
(2) ADVANCE PAYMENTS- At
the option of a peanut producer, 50 percent of the fixed, decoupled payment
for a fiscal year shall be paid on a date selected by the peanut producer.
The selected date shall be on or after December 1 of that fiscal year,
and the peanut producer may change the selected date for a subsequent fiscal
year by providing advance notice to the Secretary.
(3) REPAYMENT OF ADVANCE
PAYMENTS- If a peanut producer that receives an advance fixed, decoupled
payment for a fiscal year ceases to be a peanut producer before the date
the fixed, decoupled payment would otherwise have been made by the Secretary
under paragraph (1), the peanut producer shall be responsible for repaying
the Secretary the full amount of the advance payment.
SEC. 164. AVAILABILITY OF COUNTER-CYCLICAL
PAYMENTS FOR PEANUTS.
(a) PAYMENT REQUIRED- During
the 2002 through 2011 crop years for peanuts, the Secretary shall make
counter-cyclical payments with respect to peanuts whenever the Secretary
determines that the effective price for peanuts is less than the target
price.
(b) EFFECTIVE PRICE- For
purposes of subsection (a), the effective price for peanuts is equal to
the sum of the following:
(1) The higher of the following:
(A) The national average
market price received by peanut producers during the 12-month marketing
year for peanuts, as determined by the Secretary.
(B) The national average
loan rate for a marketing assistance loan for peanuts in effect for the
same period under this chapter.
(2) The payment rate in
effect under section 163 for the purpose of making fixed, decoupled payments.
(c) TARGET PRICE- For purposes
of subsection (a), the target price for peanuts shall be equal to $520
per ton.
(d) PAYMENT RATE- The payment
rate used to make counter-cyclical payments for a crop year shall be equal
to the difference between--
(1) the target price; and
(2) the effective price
determined under subsection (b).
(e) PAYMENT AMOUNT- The
amount of the counter-cyclical payment to be paid to the peanut producers
on a farm for a crop year shall be equal to the product of the following:
(1) The payment rate specified
in subsection (d).
(2) The payment acres on
the farm.
(3) The payment yield for
the farm.
(1) GENERAL RULE- The Secretary
shall make counter-cyclical payments under this section for a peanut crop
as soon as possible after determining under subsection (a) that such payments
are required for that crop year.
(2) PARTIAL PAYMENT- The
Secretary may permit, and, if so permitted, a peanut producer may elect
to receive, up to 40 percent of the projected counter-cyclical payment,
as determined by the Secretary, to be made under this section for a peanut
crop upon completion of the first six months of the marketing year for
that crop. The peanut producer shall repay to the Secretary the amount,
if any, by which the partial payment exceeds the actual counter-cyclical
payment to be made for that crop.
SEC. 165. PRODUCER AGREEMENT
REQUIRED AS CONDITION ON PROVISION OF FIXED, DECOUPLED PAYMENTS AND COUNTER-CYCLICAL
PAYMENTS.
(a) COMPLIANCE WITH CERTAIN
REQUIREMENTS-
(1) REQUIREMENTS- Before
the peanut producers on a farm may receive fixed, decoupled payments or
counter-cyclical payments with respect to the farm, the peanut producers
shall agree, in exchange for the payments--
(A) to comply with applicable
conservation requirements under subtitle B of title XII of the Food Security
Act of 1985 (16 U.S.C. 3811 et seq.);
(B) to comply with applicable
wetland protection requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.);
(C) to comply with the planting
flexibility requirements of section 166; and
(D) to use the land on the
farm, in an amount equal to the peanut acres, for an agricultural or conserving
use, and not for a nonagricultural commercial or industrial use, as determined
by the Secretary.
(2) COMPLIANCE- The Secretary
may issue such rules as the Secretary considers necessary to ensure peanut
producer compliance with the requirements of paragraph (1).
(b) EFFECT OF FORECLOSURE-
A peanut producer may not be required to make repayments to the Secretary
of fixed, decoupled payments and counter-cyclical payments if the farm
has been foreclosed on and the Secretary determines that forgiving the
repayments is appropriate to provide fair and equitable treatment. This
subsection shall not void the responsibilities of the peanut producer under
subsection (a) if the peanut producer continues or resumes operation, or
control, of the farm. On the resumption of operation or control over the
farm by the producer, 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 (4), a transfer of (or change in) the interest
of a peanut producer in peanut acres for which fixed, decoupled payments
or counter-cyclical payments are made shall result in the termination of
the payments with respect to the peanut acres, unless the transferee or
owner of the acreage agrees to assume all obligations under subsection
(a). The termination shall be effective on the date of the transfer or
change.
(2) TRANSFER OF PAYMENT
BASE- There is no restriction on the transfer of a farm's peanut acres
or payment yield as part of a change in the peanut producers on the farm.
(3) 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 such subsection, as determined by the Secretary.
(4) EXCEPTION- If a peanut
producer entitled to a fixed, decoupled payment or counter-cyclical
payment dies, becomes incompetent,
or is otherwise unable to receive the payment, the Secretary shall make
the payment, in accordance with regulations prescribed by the Secretary.
(d) ACREAGE REPORTS- As
a condition on the receipt of any benefits under this chapter, the Secretary
shall require peanut producers to submit to the Secretary acreage reports.
(e) TENANTS AND SHARECROPPERS-
In carrying out this chapter, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(f) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of fixed, decoupled payments
and counter-cyclical payments among the peanut producers on a farm on a
fair and equitable basis.
SEC. 166. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS- Subject
to subsection (b), any commodity or crop may be planted on peanut acres
on a farm.
(b) LIMITATIONS AND EXCEPTIONS
REGARDING CERTAIN COMMODITIES-
(1) LIMITATIONS- The planting
of the following agricultural commodities shall be prohibited on peanut
acres:
(B) Vegetables (other than
lentils, mung beans, and dry peas).
(2) EXCEPTIONS- Paragraph
(1) shall not limit the planting of an agricultural commodity specified
in such paragraph--
(A) in any region in which
there is a history of double-cropping of peanuts with 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 agricultural commodities specified
in paragraph (1) on peanut acres, except that fixed, decoupled payments
and counter-cyclical payments shall be reduced by an acre for each acre
planted to such an agricultural commodity; or
(C) by a peanut producer
who 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 peanut producer's average annual planting history of
such agricultural commodity in the 1991 through 1995 crop years (excluding
any crop year in which no plantings were made), as determined by the Secretary;
and
(ii) fixed, decoupled payments
and counter-cyclical payments shall be reduced by an acre for each acre
planted to such agricultural commodity.
SEC. 167. MARKETING ASSISTANCE
LOANS AND LOAN DEFICIENCY PAYMENTS FOR PEANUTS.
(a) NONRECOURSE LOANS AVAILABLE-
(1) AVAILABILITY- For each
of the 2002 through 2011 crops of peanuts, the Secretary shall make available
to peanut producers on a farm nonrecourse marketing assistance loans for
peanuts produced on the farm. The loans shall be made under terms and conditions
that are prescribed by the Secretary and at the loan rate established under
subsection (b).
(2) ELIGIBLE PRODUCTION-
Any production of peanuts on a farm shall be eligible for a marketing assistance
loan under this subsection.
(3) TREATMENT OF CERTAIN
COMMINGLED COMMODITIES- In carrying out this subsection, the Secretary
shall make loans to a peanut producer that is otherwise eligible to obtain
a marketing assistance loan, but for the fact the peanuts owned by the
peanut producer are commingled with other peanuts in facilities unlicensed
for the storage of agricultural commodities by the Secretary or a State
licensing authority, if the peanut producer obtaining the loan agrees to
immediately redeem the loan collateral in accordance with section 166 of
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286).
(4) OPTIONS FOR OBTAINING
LOAN- A marketing assistance loan under this subsection, and loan deficiency
payments under subsection (e), may be obtained at the option of the peanut
producer through--
(A) a designated marketing
association of peanut producers that is approved by the Secretary;
(B) the Farm Service Agency;
or
(C) a loan servicing agent
approved by the Secretary.
(b) LOAN RATE- The loan
rate for a marketing assistance loan under for peanuts subsection (a) shall
be equal to $400 per ton.
(1) IN GENERAL- A marketing
assistance loan for peanuts under subsection (a) shall have a term of nine
months beginning on the first day of the first month after the month in
which the loan is made.
(2) EXTENSIONS PROHIBITED-
The Secretary may not extend the term of a marketing assistance loan under
subsection (a).
(d) REPAYMENT RATE- The
Secretary shall permit peanut producers to repay a marketing assistance
loan for peanuts under subsection (a) at a rate that is the lesser of--
(1) the loan rate established
for the commodity under subsection (b), 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 peanuts by the Federal Government;
(C) minimize the cost incurred
by the Federal Government in storing peanuts; and
(D) allow peanuts produced
in the United States to be marketed freely and competitively, both domestically
and internationally.
(e) LOAN DEFICIENCY PAYMENTS-
(1) AVAILABILITY- The Secretary
may make loan deficiency payments available to peanut producers who, although
eligible to obtain a marketing assistance loan for peanuts under subsection
(a), agree to forgo obtaining the loan for the peanuts in return for payments
under this subsection.
(2) COMPUTATION- A loan
deficiency payment under this subsection shall be computed by multiplying--
(A) the loan payment rate
determined under paragraph (3) for peanuts; by
(B) the quantity of the
peanuts produced by the peanut producers, excluding any quantity for which
the producers obtain a loan under subsection (a).
(3) LOAN PAYMENT RATE- For
purposes of this subsection, the loan payment rate shall be the amount
by which--
(A) the loan rate established
under subsection (b); exceeds
(B) the rate at which a
loan may be repaid under subsection (d).
(4) TIME FOR PAYMENT- The
Secretary shall make a payment under this subsection to a peanut producer
with respect to a quantity of peanuts as of the earlier of the following:
(A) The date on which the
peanut producer marketed or otherwise lost beneficial interest in the peanuts,
as determined by the Secretary.
(B) The date the peanut
producer requests the payment.
(f) COMPLIANCE WITH CONSERVATION
AND WETLANDS REQUIREMENTS- As a condition of the receipt of a marketing
assistance loan under subsection (a), the peanut producer shall comply
with applicable conservation requirements under subtitle B of title XII
of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable
wetland protection requirements under subtitle C of title XII of the Act
(16 U.S.C. 3821 et seq.) during the term of the loan.
(g) REIMBURSABLE AGREEMENTS
AND PAYMENT OF EXPENSES- To the extent practicable, the Secretary shall
implement any reimbursable agreements or provide for the payment of expenses
under this chapter in a manner that is consistent with such activities
in regard to other commodities.
(h) TERMINATION OF SUPERSEDED
PRICE SUPPORT AUTHORITY-
(1) REPEAL- Section 155
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7271) is repealed.
(2) CONFORMING AMENDMENTS-
The Agricultural Act of 1949 (7 U.S.C. 1441 et seq.) is amended--
(A) in section 101(b) (7
U.S.C. 1441(b)), by striking `and peanuts'; and
(B) in section 408(c) (7
U.S.C. 1428(c)), by striking `peanuts,'.
SEC. 168. QUALITY IMPROVEMENT.
(1) MANDATORY INSPECTION-
All peanuts placed under a marketing assistance loan under section 167
shall be officially inspected and graded by Federal or State inspectors.
(2) OPTIONAL INSPECTION-
Peanuts not placed under a marketing assistance loan may be graded at the
option of the peanut producer.
(b) TERMINATION OF PEANUT
ADMINISTRATIVE COMMITTEE- The Peanut Administrative Committee established
under Marketing Agreement No. 1436, which regulates 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, is terminated.
(c) ESTABLISHMENT OF PEANUT
STANDARDS BOARD- The Secretary shall establish a Peanut Standards Board
for the purpose of assisting in the establishment of quality standards
with respect to peanuts. The authority of the Board is limited to assisting
in the establishment of quality standards for peanuts. The members of the
Board should fairly reflect all regions and segments of the peanut industry.
(d) EFFECTIVE DATE- This
section shall take effect with the 2002 crop of peanuts.
SEC. 169. PAYMENT LIMITATIONS.
For purposes of sections
1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through
1308-3), separate payment limitations shall apply to peanuts with respect
to--
(1) fixed, decoupled payments;
(2) counter-cyclical payments,
and
(3) limitations on marketing
loan gains and loan deficiency payments.
SEC. 170. TERMINATION OF MARKETING
QUOTA PROGRAMS FOR PEANUTS AND COMPENSATION TO PEANUT QUOTA HOLDERS FOR
LOSS OF QUOTA ASSET VALUE.
(a) REPEAL OF MARKETING
QUOTA-
(1) REPEAL- Part VI of subtitle
B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a),
relating to peanuts, is repealed.
(2) TREATMENT OF 2001 CROP-
Part VI of subtitle B of title III of the Agricultural Adjustment Act of
1938 (7 U.S.C. 1357-1359a), as in effect on the day before the date of
the enactment of this Act, shall continue to apply with respect to the
2001 crop of peanuts notwithstanding the amendment made by paragraph (1).
(b) COMPENSATION CONTRACT
REQUIRED- The Secretary shall offer to enter into a contract with eligible
peanut quota holders for the purpose of providing compensation for the
lost value of the quota on account of the repeal of the marketing quota
program for peanuts under subsection (a). Under the contracts, the Secretary
shall make payments to eligible peanut quota holders during fiscal years
2002 through 2006.
(c) TIME FOR PAYMENT- The
payments required under the contracts shall be provided in five equal installments
not later than September 30 of each of fiscal years 2002 through 2006.
(d) PAYMENT AMOUNT- The
amount of the payment for a fiscal year to a peanut quota holder under
a contract shall be equal to the product obtained by multiplying--
(2) the actual farm poundage
quota (excluding seed and experimental peanuts) established for the peanut
quota holder's farm under section 358-1(b) of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1358-1(b)) for the 2001 marketing year.
(e) ASSIGNMENT OF PAYMENTS-
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 the payments made to peanut quota holders under the contracts. The peanut
quota holder 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 subsection.
(f) PEANUT QUOTA HOLDER
DEFINED- In this section, the term `peanut quota holder' means a person
or enterprise that owns a farm that--
(1) was eligible, immediately
before the date of the enactment of this Act, to have a peanut quota established
upon it;
(2) if there are not quotas
currently established, would be eligible to have a quota established upon
it for the succeeding crop year, in the absence of the amendment made by
subsection (a); or
(3) is otherwise a farm
that was eligible for such a quota at the time the general quota establishment
authority was repealed.
The Secretary shall apply
this definition without regard to temporary leases or transfers or quotas
for seed or experimental purposes.
Subtitle D--Administration
SEC. 181. ADMINISTRATION GENERALLY.
(a) USE OF COMMODITY CREDIT
CORPORATION- The Secretary shall 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.
(c) REGULATIONS- Not later
than 90 days after the date of the enactment of this Act, the Secretary
and the Commodity Credit Corporation, as appropriate, shall issue such
regulations as are necessary to implement this title. The issuance of the
regulations shall be made without regard to--
(1) the notice and comment
provisions of section 553 of title 5, United States Code;
(2) the Statement of Policy
of the Secretary of Agriculture effective July 24, 1971 (36 Fed. Reg. 13804)
relating to notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title
44, United States Code (commonly know as the `Paperwork Reduction Act').
(d) PROTECTION OF PRODUCERS-
The protection afforded producers that elect the option to accelerate the
receipt of any payment under a production flexibility contract payable
under the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7212 note) shall also apply to the advance payment of fixed, decoupled
payments and counter-cyclical payments.
(e) ADJUSTMENT AUTHORITY
RELATED TO URUGUAY ROUND COMPLIANCE- If the Secretary determines that expenditures
under subtitles A, B, and C that are subject to the total allowable domestic
support levels under the Uruguay Round Agreements (as defined in section
2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7))), as in effect
on the date of the enactment of this Act, will exceed such allowable levels
for any applicable reporting period, the Secretary may make adjustments
in the amount of such expenditures during that period to ensure that such
expenditures do not exceed, but in no case are less than, such allowable
levels.
SEC. 182. EXTENSION OF SUSPENSION
OF PERMANENT PRICE SUPPORT AUTHORITY.
(a) AGRICULTURAL ADJUSTMENT
ACT OF 1938- Section 171(a)(1) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is amended by striking `2002'
both places it appears and inserting `2011'.
(b) AGRICULTURAL ACT OF
1949- Section 171(b)(1) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7301(b)(1)) is amended by striking `2002' both places
it appears and inserting `2011'.
(c) SUSPENSION OF CERTAIN
QUOTA PROVISIONS- Section 171(c) of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7301(c)) is amended by striking `2002'
and inserting `2011'.
SEC. 183. LIMITATIONS.
(a) LIMITATION ON AMOUNTS
RECEIVED- Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308)
is amended--
(A) by striking `PAYMENTS
UNDER PRODUCTION FLEXIBILITY CONTRACTS' and inserting `FIXED, DECOUPLED
PAYMENTS';
(B) by striking `contract
payments made under the Agricultural Market Transition Act to a person
under 1 or more production flexibility contracts' and inserting `fixed,
decoupled payments made to a person'; and
(C) by striking `4' and
inserting `5';
(2) in paragraphs (2) and
(3)--
(A) by striking `payments
specified' and all that follows through `and oilseeds' and inserting `following
payments that a person shall be entitled to receive';
(B) by striking `75' and
inserting `150';
(C) by striking the period
at the end of paragraph (2) and all that follows through `the following'
in paragraph (3);
(D) by striking `section
131' and all that follows through `section 132' and inserting `section
121 of the Farm Security Act of 2001 for a crop of any covered commodity
at a lower level than the original loan rate established for the commodity
under section 122'; and
(E) by striking `section
135' and inserting `section 125'; and
(3) by inserting after paragraph
(2) the following new paragraph (3):
`(3) LIMITATION ON COUNTER-CYCLICAL
PAYMENTS- The total amount of counter-cyclical payments that a person may
receive during any crop year shall not exceed the amount specified in paragraph
(2), as in effect on the day before the date of the enactment of the Farm
Security Act of 2001.'.
(b) DEFINITIONS- Paragraph
(4) of section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is
amended to read as follows:
`(4) DEFINITIONS- In this
title, the terms `covered commodity', `counter-cyclical payment', and `fixed,
decoupled payment' have the meaning given those terms in section 100 of
the Farm Security Act of 2001.'.
(c) TRANSITION- Section
1001 of the Food Security Act of 1985 (7 U.S.C. 1308), as in effect on
the day before the date of the enactment of this Act, shall continue to
apply with respect to fiscal year 2001 and the 2001 crop of any covered
commodity.
SEC. 184. ADJUSTMENTS OF LOANS.
Section 162(b) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7282(b)) is amended
by striking `this title' and inserting `this title and title I of the Farm
Security Act of 2001'.
SEC. 185. PERSONAL LIABILITY
OF PRODUCERS FOR DEFICIENCIES.
Section 164 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7284) is amended
by striking `this title' each places it appears and inserting `this title
and title I of the Farm Security Act of 2001'.
SEC. 186. EXTENSION OF EXISTING
ADMINISTRATIVE AUTHORITY REGARDING LOANS.
Section 166 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286) is amended--
(A) by striking `IN GENERAL-
' and inserting `SPECIFIC PAYMENTS- '; and
(B) by striking `subtitle
C' and inserting `subtitle C of this title and title I of the Farm Security
Act of 2001'; and
(2) in subsection (c)(1)--
(A) by striking `producer'
the first two places it appears and inserting `person'; and
(B) by striking `to producers
under subtitle C' and inserting `by the Commodity Credit Corporation'.
SEC. 187. ASSIGNMENT OF PAYMENTS.
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
the authority of this Act. The producer 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. 188. REPORT ON EFFECT OF
CERTAIN FARM PROGRAM PAYMENTS ON ECONOMIC VIABILITY OF PRODUCERS AND FARMING
INFRASTRUCTURE.
(a) REVIEW REQUIRED- The
Secretary of Agriculture shall conduct a review of the effects that payments
under production flexibility contracts and market loss assistance payments
have had, and that fixed, decoupled payments and counter-cyclical payments
are likely to have, on the economic viability of producers and the farming
infrastructure, particularly in areas where climate, soil types, and other
agronomic conditions severely limit the covered crops that producers can
choose to successfully and profitably produce.
(b) CASE STUDY RELATED TO
RICE PRODUCTION- The review shall include a case study of the effects that
the payments described in subsection (a), and the forecast effects of increasing
these or other decoupled payments, are likely to have on rice producers
(including tenant rice producers), the rice milling industry, and the economies
of rice farming areas in Texas, where harvested rice acreage has fallen
from 320,000 acres in 1995 to only 211,000 acres in 2001.
(c) REPORT AND RECOMMENDATIONS-
Not later than 90 days after the date of the enactment of this Act, 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 information collected for the review
and the case study and any findings made on the basis of such information.
The report shall include recommendations for minimizing the adverse effects
on producers, with a special focus on producers who are tenants, on the
agricultural economies in farming areas generally, on those particular
areas described in subsection (a), and on the area that is the subject
of the case study in subsection (b).
TITLE II--CONSERVATION
Subtitle A--Environmental Conservation
Acreage Reserve Program
SEC. 201. GENERAL PROVISIONS.
Title XII of the Food Security
Act of 1985 is amended--
(1) in section 1230(a),
by striking `1996 through 2002' and inserting `2002 through 2011';
(2) by striking subsection
(c) of section 1230; and
(3) in section 1230A (16
U.S.C. 3830a), by striking `chapter' each place it appears and inserting
`title'.
Subtitle B--Conservation Reserve
Program
SEC. 211. REAUTHORIZATION.
(a) IN GENERAL- Section
1231 of the Food Security Act of 1985 (16 U.S.C. 3831) is amended in each
of subsections (a) and (d) by striking `2002' and inserting `2011'.
(b) SCOPE OF PROGRAM- Section
1231(a) of such Act (16 U.S.C. 3831(a)) is amended by striking `and water'
and inserting `, water, and wildlife'.
SEC. 212. ENROLLMENT.
(a) ELIGIBILITY- Section
1231(b) of the Food Security Act of 1985 (16 U.S.C. 3831(b)) is amended--
(1) by striking paragraph
(3) and inserting the following:
`(3) marginal pasturelands
to be devoted to natural vegetation in or near riparian areas or for similar
water quality purposes, including marginal pasturelands converted to wetlands
or established as wildlife habitat;';
(A) by striking subparagraph
(A) and inserting the following:
`(A) if the Secretary determines
that--
`(i) the lands contribute
to the degradation of soil, water, or air quality, or would pose an on-site
or off-site environmental threat to soil, water, or air quality if permitted
to remain in agricultural production; and
`(ii) soil, water, and air
quality objectives with respect to the land cannot be achieved under the
environmental quality incentives program established under chapter 4;';
(B) by striking `or' at
the end of subparagraph (C);
(C) by striking the period
at the end of subparagraph (D) and inserting `; or'; and
(D) by adding at the end
the following:
`(E) if the Secretary determines
that enrollment of such lands would contribute to conservation of ground
or surface water.'; and
(3) by adding after and
below the end the following flush sentence:
`Notwithstanding the preceding
sentence (but subject to subsection (c)), the Secretary may not include
in the program established under this subchapter any land that has not
been in production for at least 4 years, unless the land is in the program
as of the effective date of this sentence.'.
(b) INCREASE IN MAXIMUM
ENROLLMENT- Section 1231(d) of such Act (16 U.S.C. 3831(d)) is amended
by striking `36,400,000' and inserting `39,200,000'.
(c) ELIGIBILITY ON CONTRACT
EXPIRATION- Section 1231(f) of such Act (16 U.S.C. 3831(f)) is amended
to read as follows:
`(f) ELIGIBILITY ON CONTRACT
EXPIRATION- On the expiration of a contract entered into under this subchapter,
the land subject to the contract shall be eligible to be considered for
re-enrollment in the conservation reserve.'.
(d) BALANCE OF NATURAL RESOURCE
PURPOSES-
(1) IN GENERAL- Section
1231 of such Act (16 U.S.C. 3831) is amended by adding at the end the following:
`(i) BALANCE OF NATURAL
RESOURCE PURPOSES- In determining the acceptability of contract offers
under this subchapter, the Secretary shall ensure an equitable balance
among the conservation purposes of soil erosion, water quality and wildlife
habitat.'.
(2) REGULATIONS- Not later
than 180 days after the date of the enactment of this Act, the Secretary
of Agriculture shall issue final regulations implementing section 1231(i)
of the Food Security Act of 1985, as added by paragraph (1) of this subsection.
SEC. 213. DUTIES OF OWNERS AND
OPERATORS.
Section 1232 of the Food
Security Act of 1985 (16 U.S.C. 3832) is amended--
(A) in paragraph (3), by
inserting `as described in section 1232(a)(7) or for other purposes' before
`as permitted';
(B) in paragraph (4), by
inserting `where practicable, or maintain existing cover' before `on such
land'; and
(C) in paragraph (7), by
striking `Secretary--' and all that follows and inserting `Secretary may
permit, consistent with the conservation of soil, water quality, and wildlife
habitat--
`(A) managed grazing and
limited haying, in which case the Secretary shall reduce the conservation
reserve payment otherwise payable under the contract by an amount commensurate
with the economic value of the activity;
`(B) wind turbines for the
provision of wind energy, whether or not commercial in nature; and
`(C) land subject to the
contract to be harvested for recovery of biomass used in energy production,
in which case the Secretary shall reduce the conservation reserve payment
otherwise payable under the contract by an amount commensurate with the
economic value of such activity;'; and
(2) by striking subsections
(c) and (d) and redesignating subsection (e) as subsection (c).
SEC. 214. REFERENCE TO CONSERVATION
RESERVE PAYMENTS.
Subchapter B of chapter
1 of subtitle D of title XII of such Act (16 U.S.C. 3831-3836) is amended--
(1) by striking `rental
payment' each place it appears and inserting `conservation reserve payment';
(2) by striking `rental
payments' each place it appears and inserting `conservation reserve payments';
and
(3) in the paragraph heading
for section 1235(e)(4), by striking `RENTAL PAYMENT' and inserting `CONSERVATION
RESERVE PAYMENT'.
SEC. 215. EXPANSION OF PILOT
PROGRAM TO ALL STATES.
Section 1231(h) of the Food
Security Act of 1985 (16 U.S.C. 3831(h)) is amended--
(1) in paragraph (1), by
striking `and 2002' and all that follows through `South Dakota' and inserting
`through 2011 calendar years, the Secretary shall carry out a program in
each State';
(2) in paragraph (3)(C),
by striking `--' and all that follows and inserting `not more than 150,000
acres in any 1 State.'; and
(3) by striking paragraph
(2) and redesignating paragraphs (3) through (5) as paragraphs (2) through
(4), respectively.
Subtitle C--Wetlands Reserve
Program
SEC. 221. ENROLLMENT.
(a) MAXIMUM- Section 1237(b)
of the Food Security Act of 1985 (16 U.S.C. 3837(b)) is amended by striking
paragraph (1) and inserting the following:
`(1) ANNUAL ENROLLMENT-
In addition to any acres enrolled in the wetlands reserve program as of
the end of a calendar year, the Secretary may in the succeeding calendar
year enroll in the program a number of additional acres equal to--
`(A) if the succeeding calendar
year is calendar year 2002, 150,000; or
`(B) if the succeeding calendar
year is a calendar year after calendar year 2002--
`(ii) the amount (if any)
by which 150,000, multiplied by the number of calendar years in the period
that begins with calendar year 2002 and ends with the calendar year preceding
such succeeding calendar year, exceeds the total number of acres added
to the reserve during the period.'.
(b) METHODS- Section 1237
of such Act (16 U.S.C. 3837(b)(2)) is amended--
(1) in subsection (b), by
striking paragraph (2) and inserting the following:
`(2) METHODS OF ENROLLMENT-
The Secretary shall enroll acreage into the wetlands reserve program through
the use of easements, restoration cost share agreements, or both.'; and
(2) by striking subsection
(g).
(c) EXTENSION- Section 1237(c)
of such Act (16 U.S.C. 3837(c)) is amended by striking `2002' and inserting
`2011'.
SEC. 222. EASEMENTS AND AGREEMENTS.
Section 1237A of the Food
Security Act of 1985 (16 U.S.C. 3837a) is amended--
(1) in subsection (b), by
striking paragraph (2) and inserting the following:
`(2) prohibits the alteration
of wildlife habitat and other natural features of such land, unless specifically
permitted by the plan;';
(2) in subsection (e), by
striking paragraph (2) and inserting the following:
`(2) shall be consistent
with applicable State law.';
(3) by striking subsection
(h).
SEC. 223. DUTIES OF THE SECRETARY.
Section 1237C of the Food
Security Act of 1985 (16 U.S.C. 3837c) is amended by striking subsection
(d).
SEC. 224. CHANGES IN OWNERSHIP;
AGREEMENT MODIFICATION; TERMINATION.
Section 1237E(a)(2) of the
Food Security Act of 1985 (16 U.S.C. 3837e(a)(2)) is amended to read as
follows:
`(2) the ownership change
occurred due to foreclosure on the land and the owner of the land immediately
before the foreclosure exercises a right of redemption from the mortgage
holder in accordance with State law; or'.
Subtitle D--Environmental Quality
Incentives Program
SEC. 231. PURPOSES.
Section 1240 of the Food
Security Act of 1985 (16 U.S.C. 3839aa) is amended--
(1) by striking `to--' and
all that follows through `provides--' and inserting `to provide--';
(2) by striking `that face
the most serious threats to' and inserting `to address environmental needs
and provide benefits to air,';
(3) by redesignating the
subparagraphs (A) through (D) that follow the matter amended by paragraph
(2) of this section as paragraphs (1) through (4), respectively;
(4) by moving each of such
redesignated provisions 2 ems to the left; and
(5) by striking `farmers
and ranchers' each place it appears and inserting `producers'.
SEC. 232. DEFINITIONS.
Section 1240A of the Food
Security Act of 1985 (16 U.S.C. 3839aa-1) is amended--
(A) by inserting `non-industrial
private forest land,' before `and other land'; and
(B) by striking `poses a
serious threat' and all that follows and inserting `provides increased
environmental benefits to air, soil, water, or related resources.'; and
(2) in paragraph (4), by
inserting `, including non-industrial private forestry' before the period.
SEC. 233. ESTABLISHMENT AND
ADMINISTRATION.
(a) 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 `2011'.
(b) TERM OF CONTRACTS- Section
1240B(b)(2) of such Act (16 U.S.C. 3839aa-2(b)(2)) is amended by striking
`not less than 5, nor more than 10, years' and inserting `not less than
1 year, nor more than 10 years'.
(c) STRUCTURAL PRACTICES-
Section 1240B(c)(1)(B) of such Act (16 U.S.C. 3839aa-2(c)(1)(B)) is amended
to read as follows:
`(B) achieving the purposes
established under this subtitle.'.
(d) ELIMINATION OF CERTAIN
LIMITATIONS ON ELIGIBILITY FOR COST-SHARE PAYMENTS- Section 1240B(e)(1)
of such Act (16 U.S.C. 3839aa-2(e)(1)) is amended--
(1) by striking subparagraph
(B) and redesignating subparagraph (C) as subparagraph (B); and
(2) in subparagraph (B)
(as so redesignated), by striking `or 3'.
(e) INCENTIVE PAYMENTS-
Section 1240B of such Act (16 U.S.C. 3839aa-2) is amended--
(A) in the subsection heading,
by striking `, INCENTIVE PAYMENTS,'; and
(B) by striking paragraph
(2); and
(2) by redesignating subsections
(f) and (g) as subsections (g) and (h), respectively, and inserting after
subsection (e) the following:
`(f) CONSERVATION INCENTIVE
PAYMENTS-
`(1) IN GENERAL- The Secretary
may make incentive payments in an amount and at a rate determined by the
Secretary to be necessary to encourage a producer to perform multiple land
management practices and to promote the enhancement of soil, water, wildlife
habitat, air, and related resources.
`(2) SPECIAL RULE- In determining
the amount and rate of incentive payments, the Secretary may accord great
weight to those practices that include residue, nutrient, pest, invasive
species, and air quality management.'.
SEC. 234. EVALUATION OF OFFERS
AND PAYMENTS.
Section 1240C of the Food
Security Act of 1985 (16 U.S.C. 3839aa-3) is amended by striking paragraphs
(1) through (3) and inserting the following:
`(1) aid producers in complying
with this title and Federal and State environmental laws, and encourage
environmental enhancement and conservation;
`(2) maximize the beneficial
usage of animal manure and other similar soil amendments which improve
soil health, tilth, and water-holding capacity; and
`(3) encourage the utilization
of sustainable grazing systems, such as year-round, rotational, or managed
grazing.'.
SEC. 235. ENVIRONMENTAL QUALITY
INCENTIVES PROGRAM PLAN.
Section 1240E(a) of the
Food Security Act of 1985 (16 U.S.C. 3839aa-5(a)) is amended by striking
`that incorporates such conservation practices' and all that follows and
inserting `that provides or will continue to provide increased environmental
benefits to air, soil, water, or related resources.'.
SEC. 236. DUTIES OF THE SECRETARY.
Section 1240F(3) of the
Food Security Act of 1985 (16 U.S.C. 3839aa-6(3)) is amended to read as
follows:
`(3) providing technical
assistance or cost-share payments for developing and implementing 1 or
more structural practices or 1 or more land management practices, as appropriate;'.
SEC. 237. LIMITATION ON PAYMENTS.
Section 1240G of the Food
Security Act of 1985 (16 U.S.C. 3839aa-7) is amended--
(A) in paragraph (1), by
striking `$10,000' and inserting `$50,000'; and
(B) in paragraph (2), by
striking `$50,000' and inserting `$200,000';
(2) in subsection (b)(2),
by striking `the maximization of environmental benefits per dollar expended
and'; and
(3) by striking subsection
(c).
SEC. 238. GROUND AND SURFACE
WATER CONSERVATION.
Section 1240H of the Food
Security Act of 1985 (16 U.S.C. 3839aa-8) is amended to read as follows:
`SEC. 1240H. GROUND AND SURFACE
WATER CONSERVATION.
`(a) SUPPORT FOR CONSERVATION
MEASURES- The Secretary shall provide cost-share payments and low-interest
loans to encourage ground and surface water conservation, including irrigation
system improvement, and provide incentive payments for capping wells, reducing
use of water for irrigation, and switching from irrigation to dryland farming.
`(b) FUNDING- Of the funds
of the Commodity Credit Corporation, the Secretary shall make available
the following amounts to carry out this section:
`(1) $30,000,000 for fiscal
year 2002.
`(2) $45,000,000 for fiscal
year 2003.
`(3) $60,000,000 for each
of fiscal years 2004 through 2011.'.
Subtitle E--Funding and Administration
SEC. 241. REAUTHORIZATION.
Section 1241(a) of the Food
Security Act of 1985 (16 U.S.C. 3841(a)) is amended by striking `2002'
and inserting `2011'.
SEC. 242. FUNDING.
Section 1241(b)(1) of the
Food Security Act of 1985 (16 U.S.C. 3841(b)(1)) is amended--
(1) by striking `$130,000,000'
and all that follows through `2002, for' and inserting `the following amounts
for purposes of';
(2) by striking `subtitle
D.' and inserting `subtitle D:'; and
(3) by adding at the end
the following:
`(A) $200,000,000 for fiscal
year 2001.
`(B) $1,025,000,000 for
each of fiscal years 2002 and 2003.
`(C) $1,200,000,000 for
each of fiscal years 2004, 2005, and 2006.
`(D) $1,400,000,000 for
each of fiscal years 2007, 2008, and 2009.
`(E) $1,500,000,000 for
each of fiscal years 2010 and 2011.'.
SEC. 243. ALLOCATION FOR LIVESTOCK
PRODUCTION.
Section 1241(b)(2) of the
Food Security Act of 1985 (16 U.S.C. 3841(b)(2)) is amended by striking
`2002' and inserting `2011'.
SEC. 244. ADMINISTRATION AND
TECHNICAL ASSISTANCE.
(a) BROADENING OF EXCEPTION
TO ACREAGE LIMITATION- Section 1243(b)(2) of the Food Security Act of 1985
(16 U.S.C. 3843(b)(2)) is amended by striking `that--' and all that follows
and inserting `that the action would not adversely affect the local economy
of the county.'.
(b) RULES GOVERNING PROVISION
OF TECHNICAL ASSISTANCE- Section 1243(d) of such Act (16 U.S.C. 3843(d))
is amended to read as follows:
`(d) RULES GOVERNING PROVISION
OF TECHNICAL ASSISTANCE-
`(1) IN GENERAL- The Secretary
shall provide technical assistance under this title to a producer eligible
for such assistance, by providing the assistance directly or, at the option
of the producer, through an approved third party if available.
`(2) REEVALUATION- The Secretary
shall reevaluate the provision of, and the amount of, technical assistance
made available under subchapters B and C of chapter 1 and chapter 4 of
subtitle D.
`(3) CERTIFICATION OF THIRD-PARTY
PROVIDERS-
`(A) IN GENERAL- Not later
than 6 months after the date of the enactment of this subsection, the Secretary
of Agriculture shall, by regulation, establish a system for approving persons
to provide technical assistance pursuant to chapter 4 of subtitle D. For
purposes of this paragraph, a person shall be considered approved if they
have a memorandum of understanding regarding the provision of technical
assistance in place with the Secretary.
`(B) EXPERTISE REQUIRED-
In prescribing such regulations, the Secretary shall ensure that persons
with expertise in the technical aspects of conservation planning, watershed
planning, environmental engineering, including commercial entities, nonprofit
entities, State or local governments or agencies, and other Federal agencies,
are eligible to become approved providers of such technical assistance.'.
(1) IN GENERAL- Section
1770(d) of such Act (7 U.S.C. 2276(d)) is amended--
(A) by striking `or' at
the end of paragraph (9);
(B) by striking the period
at the end of paragraph (11) and inserting `; or'; and
(C) by adding at the end
the following:
`(12) title XII of this
Act.'.
(2) CONFORMING AMENDMENTS-
Section 1770(e) of such Act (7 U.S.C. 2276(e)) is amended--
(A) by striking the subsection
heading and inserting `EXCEPTIONS'; and
(B) by inserting `, or as
necessary to carry out a program under title XII of this Act as determined
by the Secretary' before the period.
Subtitle F--Other Programs
SEC. 251. PRIVATE GRAZING LAND
CONSERVATION ASSISTANCE.
Section 386(d)(1) of the
Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 2005b(d)(1))
is amended--
(1) by striking `and' at
the end of subparagraph (G);
(2) by striking the period
at the end of subparagraph (H) and inserting `; and'; and
(3) by adding at the end
the following new subparagraph:
`(I) encouraging the utilization
of sustainable grazing systems, such as year-round, rotational, or managed
grazing.'.
SEC. 252. WILDLIFE HABITAT INCENTIVES
PROGRAM.
Subsection (c) of section
387 of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
3836a) is amended to read as follows:
`(c) FUNDING- Of the funds
of the Commodity Credit Corporation, the Secretary of Agriculture shall
make available $25,000,000 for each of fiscal years 2002 through 2011 to
carry out this section.'.
SEC. 253. FARMLAND PROTECTION
PROGRAM.
(a) REMOVAL OF ACREAGE LIMITATION;
EXPANSION OF PURPOSES- Subsection (a) of section 388 of the Federal Agriculture
Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is amended--
(1) by striking `not less
than 170,000, nor more than 340,000 acres of'; and
(2) by inserting `, or agricultural
land that contains historic or archaeological resources,' after `other
productive soil'.
(b) FUNDING- Subsection
(c) of such section is amended to read as follows:
`(c) FUNDING- The Secretary
shall use not more than $25,000,000 of the funds of the Commodity Credit
Corporation in each of fiscal years 2002 through 2011 to carry out this
section.'.
(c) ELIGIBLE ENTITIES- Such
section is further amended--
(1) in subsection (a), by
striking `a State or local government' and inserting `an eligible entity';
and
(2) by adding at the end
the following:
`(d) DEFINITION OF ELIGIBLE
ENTITY- In this section, the term `eligible entity' means--
`(1) any agency of any State
or local government, or federally recognized Indian tribe, including farmland
protection boards and land resource councils established under State law;
and
`(2) any organization that--
`(A) is organized for, and
at all times since the formation of the organization has been operated
principally for, one 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;
`(B) is an organization
described in section 501(c)(3) of that Code that is exempt from taxation
under section 501(a) of that Code;
`(C) is described in section
509(a)(2) of that Code; or
`(D) is described in section
509(a)(3) of that Code and is controlled by an organization described in
section 509(a)(2) of that Code.'.
SEC. 254. RESOURCE CONSERVATION
AND DEVELOPMENT PROGRAM.
(a) PURPOSE- Section 1528
of the Agriculture and Food Act of 1981 (16 U.S.C. 3451) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1528. It is the purpose' and
inserting the following:
`SEC. 1528. STATEMENT OF PURPOSE.
(2) by inserting `through
designated RC&D councils' before `in rural areas'.
(b) DEFINITIONS- Section
1529 of such Act (16 U.S.C. 3452) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1529. As used in this subtitle--'
and inserting the following:
`SEC. 1529. DEFINITIONS.
(A) in the matter preceding
subparagraph (A), by inserting `RC&D council' before `area plan';
(B) in subparagraph (B),
by striking `through control of nonpoint sources of pollution';
(C) in subparagraph (C)--
(i) by striking `natural
resources based' and inserting `resource-based';
(ii) by striking `development
of aquaculture,';
(iii) by striking `and satisfaction'
and inserting `satisfaction'; and
(iv) by inserting `, food
security, economic development, and education' before the semicolon; and
(D) in subparagraph (D),
by striking `other' the 1st place it appears and inserting `land management';
(3) in paragraph (3), by
striking `any State, local unit of government, or local nonprofit organization'
and inserting `the designated RC&D council';
(4) by striking paragraphs
(4) through (6) and inserting the following:
`(4)(A) The term `financial
assistance' means the Secretary may--
`(i) provide funds directly
to RC&D councils or associations of RC&D councils through grants,
cooperative agreements, and interagency agreements that directly implement
RC&D area plans; and
`(ii) may join with other
federal agencies through interagency agreements and other arrangements
as needed to carry out the program's purpose.
`(B) Funds may be used for
such things as--
`(i) technical assistance;
`(ii) financial assistance
in the form of grants for planning, analysis and feasibility studies, and
business plans;
`(iii) training and education;
and
`(iv) all costs associated
with making such services available to RC&D councils or RC&D associations.
`(5) The term `RC&D
council' means the responsible leadership of the RC&D area. RC&D
councils and associations are non-profit entities whose members are volunteers
and include local civic and elected officials. Affiliations of RC&D
councils are formed in states and regions.';
(5) in paragraph (8), by
inserting `and federally recognized Indian tribes' before the period;
(6) in paragraph (9), by
striking `works of improvement' and inserting `projects';
(7) by redesignating paragraphs
(7) through (9) as paragraphs (6) through (8), respectively; and
(8) by striking paragraph
(10) and inserting the following:
`(9) The term `project'
means any action taken by a designated RC&D council that achieves any
of the elements identified under paragraph (1).'.
(c) ESTABLISHMENT AND SCOPE-
Section 1530 of such Act (16 U.S.C. 3453) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1530. The Secretary' and inserting
the following:
`SEC. 1530. ESTABLISHMENT AND
SCOPE.
(2) by striking `the technical
and financial assistance necessary to permit such States, local units of
government, and local nonprofit organizations' and inserting `through designated
RC&D councils the technical and financial assistance necessary to permit
such RC&D Councils'.
(d) SELECTION OF DESIGNATED
AREAS- Section 1531 of such Act (16 U.S.C. 3454) is amended by striking
the section heading and all that follows through `SEC. 1531. The Secretary'
and inserting the following:
`SEC. 1531. SELECTION OF DESIGNATED
AREAS.
(e) AUTHORITY OF SECRETARY-
Section 1532 of such Act (16 U.S.C. 3455) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1532. In carrying' and inserting
the following:
`SEC. 1532. AUTHORITY OF SECRETARY.
(2) in each of paragraphs
(1) and (3)--
(A) by striking `State,
local unit of government, or local nonprofit organization' and inserting
`RC&D council'; and
(B) by inserting `RC&D
council' before `area plan';
(3) in paragraph (2), by
inserting `RC&D council' before `area plans'; and
(4) in paragraph (4), by
striking `States, local units of government, and local nonprofit organizations'
and inserting `RC&D councils or affiliations of RC&D councils'.
(f) TECHNICAL AND FINANCIAL
ASSISTANCE- Section 1533 of such Act (16 U.S.C. 3456) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1533. (a) Technical' and inserting
the following:
`SEC. 1533. TECHNICAL AND FINANCIAL
ASSISTANCE.
(A) by striking `State,
local unit of government, or local nonprofit organization to assist in
carrying out works of improvement specified in an' and inserting `RC&D
councils or affiliations of RC&D councils to assist in carrying out
a project specified in a RC&D council';
(i) by striking `State,
local unit of government, or local nonprofit organization' and inserting
`RC&D council or affiliate'; and
(ii) by striking `works
of improvement' each place it appears and inserting `project';
(i) by striking `works of
improvement' and inserting `project'; and
(ii) by striking `State,
local unit of government, or local nonprofit organization' and inserting
`RC&D council';
(D) in paragraph (3), by
striking `works of improvement' and all that follows and inserting `project
concerned is necessary to accomplish and RC&D council area plan objective;';
(E) in paragraph (4), by
striking `the works of improvement provided for in the' and inserting `the
project provided for in the RC&D council';
(F) in paragraph (5), by
inserting `federally recognized Indian tribe' before `or local' each place
it appears; and
(G) in paragraph (6), by
inserting `RC&D council' before `area plan';
(3) in subsection (b), by
striking `work of improvement' and inserting `project'; and
(4) in subsection (c), by
striking `any State, local unit of government, or local nonprofit organization
to carry out any' and inserting `RC&D council to carry out any RC&D
council'.
(g) RESOURCE CONSERVATION
AND DEVELOPMENT POLICY BOARD- Section 1534 of such Act (16 U.S.C. 3457)
is amended--
(1) by striking the section
heading and all that follows through `SEC. 1534. (a) The Secretary' and
inserting the following:
`SEC. 1534. RESOURCE CONSERVATION
AND DEVELOPMENT POLICY BOARD.
(2) in subsection (b), by
striking `seven'.
(h) PROGRAM EVALUATION-
Section 1535 of such Act (16 U.S.C. 3458) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1535. The Secretary' and inserting
the following:
`SEC. 1535. PROGRAM EVALUATION.
(2) by inserting `with assistance
from RC&D councils' before `provided';
(3) by inserting `federally
recognized Indian tribes,' before `local units'; and
(4) by striking `1986' and
inserting `2007'.
(i) LIMITATION ON ASSISTANCE-
Section 1536 of such Act (16 U.S.C. 3458) is amended by striking the section
heading and all that follows through `SEC. 1536. The program' and inserting
the following:
`SEC. 1536. LIMITATION ON ASSISTANCE.
(j) SUPPLEMENTAL AUTHORITY
OF THE SECRETARY- Section 1537 of such Act (16 U.S.C. 3460) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1537. The authority' and inserting
the following:
`SEC. 1537. SUPPLEMENTAL AUTHORITY
OF SECRETARY.
(2) by striking `States,
local units of government, and local nonprofit organizations' and inserting
`RC&D councils'.
(i) AUTHORIZATION OF APPROPRIATIONS-
Section 1538 of such Act (16 U.S.C. 3461) is amended--
(1) by striking the section
heading and all that follows through `SEC. 1538. There are' and inserting
the following:
`SEC. 1538. AUTHORIZATION OF
APPROPRIATIONS.
(2) by striking `for each
of the fiscal years 1996 through 2002'.
SEC. 255. GRASSLAND RESERVE
PROGRAM.
(a) IN GENERAL- Chapter
1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830-3837f) is amended by adding at the end the following:
`Subchapter D--Grassland
Reserve Program
`SEC. 1238. GRASSLAND RESERVE
PROGRAM.
`(a) ESTABLISHMENT- The
Secretary, acting through the Natural Resource Conservation Service, shall
establish a grassland reserve 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) IN GENERAL- The Secretary
shall enroll in the program, from willing owners, not less than--
`(A) 100 contiguous acres
of land west of the 90th meridian; or
`(B) 50 contiguous acres
of land east of the 90th meridian.
`(2) MAXIMUM ENROLLMENT-
The total number of acres enrolled in the program shall not exceed 1,000,000
acres.
`(3) METHODS OF ENROLLMENT-
The Secretary shall enroll land in the program through--
`(A) permanent easements
or 30-year easements;
`(B) in a State that imposes
a maximum duration for such an easement, an easement for the maximum duration
allowed under State law; or
`(C) a 30-year rental agreement.
`(c) ELIGIBLE LAND- Land
shall be eligible to be enrolled in the program if the Secretary determines
that the land is--
`(1) natural grassland or
shrubland;
`(A) is located in an area
that has been historically dominated by natural grassland or shrubland;
and
`(B) has potential to serve
as habitat for animal or plant populations of significant ecological value
if the land is restored to natural grassland or shrubland; 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 the
easement.
`SEC. 1238A. 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 an easement
that runs with the land to the Secretary;
`(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; and
`(5) to comply with the
terms of the easement and restoration agreement.
`(b) TERMS OF EASEMENT-
An easement under subsection (a) shall--
`(A) grazing on the land
in a manner that is consistent with maintaining the viability of natural
grass and shrub species indigenous to that locality;
`(B) haying (including haying
for seed production) or mowing, except during the nesting season for birds
in the area that are in significant decline, as determined by the Natural
Resources Conservation Service State conservationist, or are protected
Federal or State law; 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 support for grazing operations,
plant and animal biodiversity, and grassland and shrubland under the greatest
threat of conversion.
`(d) RESTORATION AGREEMENTS-
`(1) IN GENERAL- The Secretary
shall prescribe the terms by which grassland and shrubland subject to an
easement under an agreement entered into under the program shall be restored.
`(2) REQUIREMENTS- The restoration
agreement shall describe the respective duties of the owner and the Secretary
(including paying the Federal share of the cost of restoration and the
provision of technical assistance).
`(1) IN GENERAL- On the
violation of the terms or conditions 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, with interest on the payments as determined appropriate
by the Secretary.
`(2) PERIODIC INSPECTIONS-
`(A) IN GENERAL- After providing
notice to the owner, the Secretary shall conduct periodic inspections of
land subject to easements under this subchapter to ensure that the terms
of the easement and restoration agreement 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. 1238B. 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.
`(A) 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--
`(i) in the case of a permanent
easement, the fair market value of the land less the grazing value of the
land encumbered by the easement; and
`(ii) 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.
`(B) SCHEDULE- Easement
payments may be provided in not less than 1 payment nor more than 10 annual
payments of equal or unequal amount, as agreed to by the Secretary and
the owner.
`(2) RENTAL AGREEMENT PAYMENTS-
`(A) AMOUNT- If an owner
enters into a 30-year rental agreement authorized under section 1238(b)(3)(C),
the Secretary shall make 30
annual rental payments to the
owner in an amount that equals, to the maximum extent practicable, the
30-year easement payment amount under paragraph (1)(A)(ii).
`(B) ASSESSMENT- Not less
than once every 5 years throughout the 30-year rental period, the Secretary
shall assess whether the value of the rental payments under subparagraph
(A) equals, to the maximum extent practicable, the 30-year easement payments
as of the date of the assessment.
`(C) ADJUSTMENT- If on completion
of the assessment under subparagraph (B), the Secretary determines that
the rental payments do not equal, to the maximum extent practicable, the
value of payments under a 30-year easement, the Secretary shall adjust
the amount of the remaining payments to equal, to the maximum extent practicable,
the value of a 30-year easement over the entire 30-year rental period.
`(c) FEDERAL SHARE OF COST
OF RESTORATION- 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 grassland and shrubland functions and values.
`(d) TECHNICAL ASSISTANCE-
`(1) IN GENERAL- The Secretary
shall provide owners with technical assistance to execute easement documents
and restore the grassland and shrubland.
`(2) REIMBURSEMENT BY COMMODITY
CREDIT CORPORATION- The Commodity Credit Corporation shall reimburse the
Secretary, acting through the Natural Resources Conservation Service, for
not more than 10 percent of the cost of acquisition of the easement and
the Federal share of the cost of restoration obligated for that fiscal
year.
`(e) PAYMENTS TO OTHERS-
If an owner that is entitled to a payment under this subchapter dies, becomes
incompetent, is otherwise unable to receive the payment, or is succeeded
by another person who renders or completes the required performance, the
Secretary shall make the payment, in accordance with regulations promulgated
by the Secretary and without regard to any other provision of law, in such
manner as the Secretary determines is fair and reasonable in light of all
the circumstances.
`(f) OTHER PAYMENTS- Easement
payments received by an owner under this subchapter shall be in addition
to, and not affect, the total amount of payments that the owner is otherwise
eligible to receive under other Federal laws.
`SEC. 1238C. ADMINISTRATION.
`(a) DELEGATION TO PRIVATE
ORGANIZATIONS-
`(1) IN GENERAL- The Secretary
shall permit a private conservation or land trust organization or a State
agency to hold and enforce an easement under this subchapter, in lieu of
the Secretary, if--
`(A) the Secretary determines
that granting such permission is likely to promote grassland and shrubland
protection; and
`(B) the owner authorizes
the private conservation or land trust or a State agency to hold and enforce
the easement.
`(2) APPLICATION- An organization
that desires to hold an easement under this subchapter shall apply to the
Secretary for approval.
`(3) APPROVAL BY SECRETARY-
The Secretary shall approve an organization under this subchapter that
is constituted for conservation or ranching purposes and is competent to
administer grassland and shrubland easements.
`(4) REASSIGNMENT- If an
organization holding an easement on land under this subchapter terminates--
`(A) the owner of the land
shall reassign the easement to another organization described in paragraph
(1) or to the Secretary; and
`(B) the owner and the new
organization shall notify the Secretary in writing that a reassignment
for termination has been made.
`(b) REGULATIONS- Not later
than 180 days after the date of enactment of this subchapter, the Secretary
shall issue such regulations as are necessary to carry out this subchapter.'.
(b) FUNDING- Section 1241(a)(2)
of the Food Security Act of 1985 (16 U.S.C. 3841(a)(2)) is amended by striking
`subchapter C' and inserting `subchapters C and D'.
SEC. 256. FARMLAND STEWARDSHIP
PROGRAM.
Subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3830-3839bb) is amended by
inserting after chapter 1 (and the matter added by section 255 of this
Act) the following:
`CHAPTER 2--FARMLAND STEWARDSHIP
PROGRAM
`SEC. 1238. DEFINITIONS.
`(1) AGREEMENT- The term
`agreement' means a service contract authorized by this chapter.
`(A) IN GENERAL- The term
`biofuel' means an energy source derived from living organisms.
`(B) INCLUSIONS- The term
`biofuel' includes--
`(i) plant residue that
is harvested, dried, and burned, or further processed into a solid, liquid,
or gaseous fuel;
`(ii) agricultural waste
(such as cereal straw, seed hulls, corn stalks and cobs);
`(iii) native shrubs and
herbaceous plants (such as some varieties of willows and prairie switchgrass);
and
`(iv) animal waste (including
methane gas that is produced as a byproduct of animal waste).
`(3) BIOPRODUCT- The term
`bioproduct' means a product that is manufactured or produced--
`(A) by using plant material
and plant byproduct (such as glucose, starch, and protein); and
`(B) to replace a petroleum-based
product, additive, or activator used in the production of
a solvent, paint, adhesive,
chemical, or other product (such as tires or Styrofoam cups).
`(4) CARBON SEQUESTRATION-
The term `carbon sequestration' means the process of providing plant cover
to avoid contributing to the greenhouse effect by--
`(A) removing carbon dioxide
from the air; and
`(B) developing a `carbon
sink' to retain that carbon dioxide.
`(5) CONTRACTING AGENCY-
The term `contracting agency' means a local conservation district, resource
conservation and development council, extension service office, state-chartered
stewardship entity, nonprofit organization, local office of the Department,
or other participating government agency that is authorized by the Secretary
to enter into farmland stewardship agreements on behalf of the Secretary.
`(6) ELIGIBLE AGRICULTURAL
LAND- The term `eligible agricultural land' means private land that is
in primarily native or natural condition, or that is classified by the
Secretary as cropland, pastureland, grazing land, timberland, or another
similar type of land, that--
`(A) contains wildlife habitat,
wetland, or other natural resources; or
`(B) provides 1 or more
benefits to the public, such as--
`(i) conservation of soil,
water, and related resources;
`(ii) water quality protection
or improvement;
`(iii) control of invasive
and exotic species;
`(iv) wetland restoration,
development, and protection;
`(v) wildlife habitat development
and protection;
`(vi) survival and recovery
of listed species or candidate species;
`(vii) preservation of open
spaces or prime, unique, or other productive farm land;
`(viii) increased participation
in Federal agricultural or forestry programs in an area or region that
has traditional under-representation in those programs;
`(ix) provision of a structure
for interstate cooperation to address ecosystem challenges that affect
an area involving 1 or more States;
`(x) improvements in the
ecological integrity of the area, region or corridor;
`(xi) carbon sequestration;
`(xiii) improvements in
the economic viability of agriculture;
`(xiv) production of biofuels
and bioproducts;
`(xv) establishment of experimental
or innovative crops;
`(xvi) use of existing crops
or crop byproducts in experimental or innovative ways;
`(xvii) installation of
equipment to produce materials that may be used for biofuels or other bioproducts;
`(xviii) maintenance of
experimental or innovative crops until the earlier of the date on which--
`(I) a viable market is
established for those crops; or
`(II) an agreement terminates;
and
`(xix) other similar conservation
purposes identified by the Secretary.
`(7) GERMPLASM- The term
`germplasm' means the genetic material of a germ cell of any life form
that is important for food or agricultural production.
`(8) 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).
`(9) PROGRAM- The term `program'
means the farmland stewardship program established by this chapter.
`(10) PYTOREMEDIATION- The
term `pytoremediation' means the use of green living plant material (including
plants that may be harvested and used to produce biofuel or other bioproduces)
to remove contaminants from water and soil.
`(11) SECRETARY- The term
`Secretary' means the Secretary of Agriculture, acting--
`(A) through the Natural
Resources Conservation Service; and
`(B) in cooperation with
any applicable agricultural or other agencies of a State.
`(12) SERVICE CONTRACT-
The term `service contract' means a legally binding agreement between 2
parties under which--
`(A) 1 party agrees to render
1 or more services in accordance with the terms of the contract; and
`(B) the second party agrees
to pay the first party for the each service rendered.
`SEC. 1238A. ESTABLISHMENT AND
PURPOSE OF PROGRAM.
`(1) IN GENERAL- The Secretary
shall establish within the Department a program to be known as the `farmland
stewardship program'.
`(2) PURPOSE- The purpose
of the program shall be to modify and more effectively target conservation
programs administered by the Secretary to the specific conservation needs
of, and opportunities presented by, individual parcels of eligible agricultural
land.
`(b) RELATION TO OTHER CONSERVATION
PROGRAMS- Under the program, the Secretary may implement, alone or in combination,
the features of--
`(1) any conservation program
administered by the Secretary; or
`(2) any conservation program
administered by another Federal agency or a State or local government,
if implementation by the Secretary--
`(B) is carried out with
the consent of the applicable administering agency or government.
`(3) CONSERVATION ENHANCEMENT
PROGRAMS-
`(A) IN GENERAL- States,
local governments, Indian tribes, or any combination of those entities
may submit, and the Secretary may approve, a conservation enhancement program
that integrates 1 or more Federal agriculture and forestry conservation
programs and 1 or more State, local, or private efforts to address, in
critical areas and corridors, in a manner that enhances the conservation
benefits of the individual programs and modifies programs to more effectively
address State and local needs--
`(iii) farm preservation;
and
`(iv) any other conservation
need.
`(i) IN GENERAL- A conservation
enhancement program submitted under subparagraph (A) shall be designed
to provide benefits greater than benefits that, by reason of any factor
described in clause (ii), would be provided through the individual application
of a conservation program administered by the Secretary.
`(ii) FACTORS- Factors referred
to in clause (i) include--
`(I) conservation commitments
of greater duration;
`(II) more intensive conservation
benefits;
`(III) integrated treatment
of special natural resource problems (such as preservation and enhancement
of natural resource corridors); and
`(IV) improved economic
viability for agriculture.
`(i) DEFINITION OF RESOURCES-
In this subparagraph, the term `resources' means, with respect to any conservation
program administered by the Secretary--
`(I) acreage enrolled under
the conservation program; and
`(II) funding made available
to the Secretary to carry out the conservation program with respect to
acreage described in subclause (I).
`(ii) DETERMINATION- If
the Secretary determines that a plan submitted under subparagraph (A) meets
the requirements of subparagraph (B), the Secretary, in accordance with
an agreement, may use not more than 20 percent of the resources of any
conservation program administered by the Secretary to implement the plan.
`(D) CRP ACREAGE- Acreage
enrolled under an approved conservation reserve enhancement program shall
be considered acreage of conservation reserve program that is committed
to conservation reserve enhancement program.
`(1) IN GENERAL- The program
and agreements shall be funded by the Secretary using--
`(A) the funding authorities
of the conservation programs that are implemented through the use of Farmland
Stewardship Agreements for the conservation purposes listed in Sec. 1238(4)(A)
and (B)(i through x);
`(B) technical assistance
in accordance with Sec. 1243(d); and
`(C) such other funds as
are appropriated to carry out the Farmland Stewardship Program.
`(2) COST SHARING- It shall
be a requirement of the Farmland Stewardship Program that the majority
of the funds to carry out the Program must come from existing conservation
programs, which may be Federal, State, regional, local, or private, that
are combined into and made a part of an agreement, with the balance made
up from matching funding contributions made by State, regional, or local
agencies and divisions of government or from private funding sources. Funds
from existing programs may be used only to carry out the purposes and intents
of those programs to the degree that those programs are made a part of
a Farmland Stewardship Agreement. Funding for other purposes or intents
must come from the funds provided under paragraphs (1)(B) and (1)(C) of
subsection (c) or from the matching funding contributions made by State,
regional, or local agencies and divisions of government or from private
funding sources.
`(d) PERSONNEL COSTS- The
Secretary shall use the Natural Resources Conservation Service to carry
out the Farmland Stewardship Program in cooperation with the state department
of agriculture or other designated agency within the state. The role of
the Natural Resources Conservation Services shall be limited to federal
oversight of the program. The Natural Resources Conservation Service shall
perform its normal functions with respect to the conservation programs
that it administers. However, it shall play no role in the assembly of
programs administered by other federal agencies into Farmland Stewardship
Agreements.
`(e) STATE LEVEL ADMINISTRATION-
The state departments of agriculture shall have primary responsibility
for operating the Farmland Stewardship Program. A state department of agriculture
may choose to operate the program on its own, may collaborate with another
local, state or federal agency, conservation district or tribe in operating
the program, or may delegate responsibility to another state agency, such
as the state department of natural resources or the state conservation
district agency.
The state department of agriculture
or designated state agency shall consult with the agencies with management
authority and responsibility for the resources affected on properties on
which Farmland Stewardship Agreements are negotiated and assembled.
`(1) A state department
of agriculture shall submit an application to the Secretary requesting
designation as the `designated state agency' to operate the Farmland Stewardship
Program. If the state department of agriculture chooses to delegate responsibility
to another state agency, the department of agriculture shall ask the governor
to designate another agency for this purpose and that agency shall submit
application to the Secretary.
`(2) The Secretary shall
approve the request for designation as the `designated state agency' if
the agency demonstrates that it has the capability to implement the Farmland
Stewardship Program and attests that it shall conform with the confidentiality
requirements in Sec. 1238B(g). Upon approval of the request, the Secretary
shall enter into a memorandum of understanding with the designated state
agency specifying the state's responsibilities in carrying out the program
and the amount of technical assistance funds that shall be provided to
the state on an annual basis to operate the program, in accordance with
paragraphs (1)(C), (1)(E) and (1)(F) of subsection (g).
`(f) ANNUAL REPORTS- The
designated state agency shall annually submit to the Secretary and make
publicly available a report that describes--
`(1) The progress achieved,
the funds expended, the purposes for which funds were expended and monitoring
and evaluating results obtained by local contracting agencies, and
`(2) The plans and objectives
of the State for future activities under the program.
`(g) TECHNICAL ASSISTANCE-
`(1) Of the funds used from
other programs and of funds made available to carry out the Farmland Stewardship
Program for a fiscal year, the Secretary shall reserve not more than twenty-five
percent for the provision of technical assistance under the Program. Of
the funds made available--
`(A) not more than 1.5%
shall be reserved for administration, coordination and oversight through
the Natural Resources Conservation Service headquarters office;
`(B) not more than 1.5%
shall be reserved for the Farmland Stewardship Council to carry out its
duties in cooperation with the State Technical Committees, as provided
under section 1238E;
`(C) not more than 2.0%
shall be reserved for administration and coordination through the designated
state agency in the state where the property is located;
`(D) not more than 1.0%
shall be reserved for administration and coordination through the Natural
Resources Conservation Service state office, in the state where property
is located;
`(E) not more than 1.0%
shall be reserved for administration and coordination through the state
conservation district agency, unless such agency is the designated state
agency for administering this program, in which case these funds shall
be added to the funds in the next paragraph; and
`(F) not less than 18% shall
be reserved for local technical assistance, carried out through a designated
`contracting agency' and subcontractors chosen by and working with the
contracting agency for preparing and executing agreements and monitoring,
evaluating and administering agreements for their full term.
`(2) An owner or operator
who is receiving a benefit under this chapter shall be eligible to receive
technical assistance in accordance with section 1243(d) to assist the owner
or operator in carrying out a contract entered into under this chapter.
`(h) ENSURING AVAILABILITY
OF FUNDS- All amounts required for preparing, executing, carrying out,
monitoring, evaluating and administering an agreement for its entire term
shall be made available by the Federal, State, and local agencies and private
sector entities involved in funding the agreement upon execution of the
agreement.
`SEC. 1238B. USE OF FARMLAND
STEWARDSHIP AGREEMENTS.
`(a) AGREEMENTS AUTHORIZED-
The Secretary shall carry out the Farmland Stewardship Program by entering
into service contracts as determined by the Secretary, to be known as farmland
stewardship agreements, with the owners or operators of eligible agricultural
land to maintain and protect the natural and agricultural resources on
the land.
`(b) LEGAL BASIS- An agreement
shall operate in all respects as a service contract and, as such, provides
the Secretary with the opportunity to hire the owner or operator of eligible
agricultural land as a vendor to perform one or more specific services
for an equitable fee for each service rendered. Any agency participating
in the Farmland Stewardship Program that has the authority to enter into
service contracts and to expend public funds under such contracts may enter
into or participate in the funding of an agreement.
`(c) BASIC PURPOSES- An
agreement with the owner or operator of eligible agricultural land shall
be used--
`(1) to negotiate a mutually
agreeable set of guidelines, practices, and procedures under which conservation
practices will be provided by the owner or operator to protect, maintain,
and, where possible, improve, the natural resources on the land covered
by the agreement in return for annual payments to the owner or operator;
`(2) to enable an owner
or operator to participate in one or more of the conservation programs
offered through agencies at all levels of government and the private sector
and, where possible and feasible, comply with permit requirements and regulations,
through a one-stop, one-application process.
`(3) to implement a conservation
program or series of programs where there is no such program
or to implement conservation
management activities where there is no such activity;
`(4) to expand or maintain
conservation practices and resource management activities to a property
where it is not possible at the present time to negotiate or reach agreement
on a public purchase of a fee-simple or less-than-fee interest in the property
for conservation purposes; and
`(5) to negotiate and develop
agreements with private owners and operators to expand or maintain their
participation in conservation activities and programs; to enable them to
install or maintain best management practices (BMPs) and other recommended
practices to improve the compatibility of agriculture, horticulture, silviculture,
aquaculture and equine activities with the environment; and improve compliance
with public health, safety and environmental regulations.
`(d) MODIFICATION OF OTHER
CONSERVATION PROGRAM ELEMENTS- If most, but not all, of the limitations,
conditions, policies and requirements of a conservation program that is
implemented in whole, or in part, through the Farmland Stewardship Program
are met with respect to a parcel of eligible agricultural land, and the
purposes to be achieved by the agreement to be entered into for such land
are consistent with the purposes of the conservation program, then the
Secretary may waive any remaining limitations, conditions, policies or
requirements of the conservation program that would otherwise prohibit
or limit the agreement. The Secretary may also grant requests to--
`(1) establish different
or automatic enrollment criteria than otherwise established by regulation
or policy;
`(2) establish different
compensation rates to the extent the parties to the agreement consider
justified;
`(3) establish different
conservation practice criteria if doing so will achieve greater conservation
benefits;
`(4) provide more streamlined
and integrated paperwork requirements;
`(5) provide for the transfer
of conservation program funds to states with flexible incentives accounts;
and
`(6) provide funds for an
adaptive management process to monitor the effectiveness of the Program
for wildlife, the protection of natural resources, economic effectiveness
and sustaining the agricultural economy.
`(7) For a waiver or exception
to be considered, a contracting agency or the designated state agency must--
`(A) Submit a request for
a waiver to the Secretary or Administrator who has responsibility for the
program for which a waiver or exception is being requested. Requests for
waivers or exceptions in programs administered by the United States Department
of Agriculture shall be submitted to the Secretary of Agriculture, while
requests for waivers or exceptions in programs administered by the United
States Department of Interior shall be submitted to the Secretary of Interior
and requests for waivers or exceptions in programs administered by the
United States Environmental Protection Agency shall be submitted to the
Administrator of that Agency, and so forth.
`(i) explain why the property
qualifies for participation in the program;
`(ii) explain why it is
necessary or desirable to make an exception to or waive one or more program
limitations, conditions, policies or requirements;
`(iii) if possible, suggest
alternative methods or approaches to satisfying these limitations, conditions,
policies or requirements that are appropriate for the property in question;
`(iv) request that the Secretary
or Administrator grant the exception or waiver, based on the documentation
submitted.
`(C) The Secretary or Administrator
may request additional documentation, or may suggest alternative methods
of overcoming program limitations or obstacles on the property in question,
prior to deciding whether or not to grant a request for an exception or
waiver.
`(D) Waivers and exceptions
may be granted by a Secretary or Administrator to allow additional flexibility
in tailoring conservation programs to the specific needs, opportunities
and challenges offered by individual parcels of land, and to remove administrative
and regulatory obstacles that previously may have limited the use of these
programs on eligible agricultural land, or would prevent these programs
from being combined together through a Farmland Stewardship Agreement.
Waivers and exceptions may be granted only if the purposes to be achieved
by the program after the waiver or exception is granted remain consistent
with the purposes for which the program was established.
`(E) The Secretaries and
Administrators who receive requests for waivers or exceptions under this
chapter shall respond to these requests within sixty (60) days of receipt.
Decisions on whether to grant a request shall be rendered within one hundred
eighty (180) days of receipt.
`(e) PROVISIONAL CONTRACTS-
Provisional contracts shall be used to provide payments to private landowners
or operators, and to the organization or agency that will oversee the agreement,
while baseline data is gathered, documents are prepared and the formal
agreement is being negotiated. Provisional contracts shall pay for all
technical services required to establish an agreement. Provisional contracts
may be used to establish a Farmland Stewardship Agreement, or any other
type of conservation program, permit or agreement on private land. Provisional
contracts shall be used during a two-year planning period, which may be
extended for up to two additional periods of six months each by mutual
agreement
between the Secretary, the contracting
agency and the owner or operator.
`(f) PAYMENTS- Payments
to owners and operators shall be made as provided in the programs that
are combined as part of a Farmland Stewardship Agreement. At the election
of the owner or operator, payments may be collected and combined together
by the designated state agency and issued to the owner or operator in equal
annual payments over the term of the agreement. Payments for other services
rendered by the owner or operator shall be made as follows--
`(1) IN GENERAL- Programs
that contain term or permanent easements may be combined into a Farmland
Stewardship Agreement. Except for portions of a property affected by easements,
Farmland Stewardship Agreements shall provide no interest in property and
shall be solely contracts for specific services. The fees paid shall be
based on the services provided. Compensation shall include--
`(A) ANNUAL BASE PAYMENT-
All owners or operators enrolled in a Farmland Stewardship Agreement shall
receive an annual base payment, at a rate to be determined by the Secretary.
The annual base payment shall be considered by the Secretary to be satisfied
if the owner or operator receives annual payments from another conservation
program that has been incorporated into the Farmland Stewardship Agreement.
In addition, owners and operators shall receive--
`(B) DIRECT FEES FOR SERVICES-
These fees shall be based on the cost of providing each service. These
fees may be set by adopting private sector market prices for the performance
of similar services or by competitive bidding. Or, alternatively--
`(C) ANNUAL PER-ACRE STEWARDSHIP
FEES- These fees shall be based on the services provided, or the quantity
of benefits provided, with higher fees for greater benefits that can be
quantified. Such values shall be determined and set by the Secretary. Or,
alternatively--
`(D) OTHER INCENTIVES- Other
forms of compensation acceptable to an owner or operator also may be considered.
These other forms of compensation may include federal, state or local tax
waivers, credits, reductions or exclusions; priority processing of permits
from state and local agencies; consolidation of permits from state and
local agencies into a single operating plan; extended-duration permits
from state and local agencies; enhanced eligibility and priority listing
for participation in cost-share programs, loan programs, conservation programs
and permanent conservation easement or public purchase programs; and priority
access to technical assistance services provided by federal and, where
possible, local, regional and state agencies.
`(g) CONFIDENTIALITY OF
DATA- All information or data provided to, obtained by or developed by
the Secretary, or any contractor to the Secretary or the designated state
agency, for the purpose of providing technical or financial assistance
to owners or operators in connection with the United States Department
of Agriculture's conservation programs, or in connection with the Farmland
Stewardship Program, shall be--
`(1) Kept confidential by
all officers and employees of the Department and the designated state agency;
`(2) Not released, disclosed,
made public or in any manner communicated to any agency, state or person
outside the Department and the designated state agency; and
`(3) Not subject to any
other law that would require the information or data to be released, disclosed,
made public or in any way communicated to any agency, state or person outside
the Department and designated state agency.
`(4) Any information or
data related to an individual farm owner or operator may be reported only
in an anonymous, aggregated form as currently provided under the Department's
National Agricultural Statistic Services.
`(h) STATE AND LOCAL CONSERVATION
PRIORITIES- To the maximum extent practicable, agreements shall address
the conservation priorities established by the State and locality in which
the eligible agricultural land are located. The Secretary may adopt for
this purpose a pre-existing state or regional conservation plan or strategy
that maps economically and ecologically important land, including a plan
developed pursuant to planning requirements under Title VIII of the 2001
Interior Appropriations Act and Title IX of the 2001 Commerce, Justice,
State Appropriations Act.
`(i) WATERSHED ENHANCEMENT-
To the extent practicable, the Secretary shall encourage the development
of Farmland Stewardship Program applications on a watershed basis.
`SEC. 1238C. PARTNERSHIP APPROACH
TO PROGRAM.
`(a) AUTHORITY OF SECRETARY
EXERCISED THROUGH PARTNERSHIPS- The Secretary may administer agreements
under the Farmland Stewardship Program in partnership with other Federal,
State, and local agencies whose programs are incorporated into the Program
under section 1238A, and in partnership with state departments of agriculture
or other designated state agencies.
`(b) DESIGNATION AND USE
OF CONTRACTING AGENCIES- Subject to subsection (c), the Secretary may authorize
a local conservation district, resource conservation and development council,
extension service office, state-chartered stewardship entity, nonprofit
organization, local office of the Department of Agriculture, or other participating
government agency to enter into and administer agreements under the Program
as a contracting agency on behalf of the Secretary.
`(c) CONDITIONS OF DESIGNATION-
The Secretary may designate an eligible district or office as a contracting
agency under subsection (b) only if the district or office--
`(1) submits a written request
for such designation to the Secretary;
`(2) affirms that it is
willing to follow all guidelines for executing and administering an agreement,
as promulgated by the Secretary;
`(3) demonstrates to the
satisfaction of the Secretary that it has established working relationships
with owners and operators of eligible agricultural land, and based on the
history of these working relationships, demonstrates that it has the ability
to work with owners and operators of eligible agricultural land in a cooperative
manner;
`(4) affirms its responsibility
for preparing all documentation for the agreement, negotiating its terms
with an owner or operator, monitoring compliance, making annual reports
to the Secretary, and administering the agreement throughout its full term;
and
`(5) demonstrates to the
satisfaction of the Secretary that it has or will have the necessary staff
resources and expertise to carry out its responsibilities under paragraphs
(3) and (4).
`(d) DELEGATION OF RESPONSIBILITY-
The Secretary may delegate responsibility for reviewing and approving applications
from local contracting agencies to the state department of agriculture
or other designated state agency in the state in which the property is
located, provided that the designated agency follows the criteria for reviewing
and approving applications as established by the Secretary and consults
with the agencies with management authority and responsibility for the
resources affected on properties on which Farmland Stewardship Agreements
are negotiated and assembled.
`SEC. 1238D. PARTICIPATION OF
OWNERS AND OPERATORS OF ELIGIBLE AGRICULTURAL LAND.
`(a) APPLICATION AND APPROVAL
PROCESS- To participate in the Farmland Stewardship Program, an owner or
operator of eligible agricultural land shall--
`(1) submit to the Secretary
an application indicating interest in the Program and describing the owner's
or operator's property, its resources, and their ecological and agricultural
values;
`(2) submit to the Secretary
the purpose and objectives of the proposed agreement and a list of services
to be provided, or a management plan to be implemented, or both, under
the proposed agreement;
`(3) if the application
and list are accepted by the Secretary, enter into an agreement that details
the purpose and objectives of the agreement and the services to be provided,
or management plan to be implemented, or both, and requires compliance
with the other terms of the agreement.
`(b) APPLICATION ON BEHALF
OF AN OWNER OR OPERATOR- A designated contracting agency may submit the
application required by subsection (a) on behalf of an owner or operator
if the contracting agency has secured the consent of the owner or operator
to enter into an agreement.
`(c) DELEGATION OF RESPONSIBILITY-
The Secretary may delegate responsibility for reviewing and approving applications
from or on behalf of an owner or operator to the state department of agriculture
or other designated agency in the state in which the property is located,
provided that the designated agency follows the criteria for reviewing
and approving applications as established by the Secretary and consults
with the agencies with management authority and responsibility for the
resources affected on properties on which Farmland Stewardship Agreements
are negotiated and assembled.
`SEC. 1238E. CREATION OF A FARMLAND
STEWARDSHIP COUNCIL REGARDING PROGRAM.
`(a) APPOINTMENT- The Secretary
shall appoint an advisory committee to assist the Secretary in carrying
out the Farmland Stewardship Program.
`(b) IN GENERAL- The Committee
shall be known as the Farmland Stewardship Council and shall operate on
the federal level in the same manner, with the same roles and responsibilities
and the same membership requirements as provided in the policies and guidelines
governing State Technical Committees in Subpart B of Part 501 of the United
States Department of Agriculture's directives to the Natural Resources
Conservation Service regarding Conservation Program Delivery.
`(c) DUTIES- The Farmland
Stewardship Council shall cooperate in all respects with the State Technical
Committees and Resource Advisory Committees in each state. In addition
to the roles and responsibilities set forth for these committees, the Farmland
Stewardship Council shall assist the Secretary in--
`(1) drafting such regulations
as are necessary to carry out the Program;
`(2) developing the documents
necessary for executing farmland stewardship agreements;
`(3) developing procedures
and guidelines to facilitate partnerships with other levels of government
and nonprofit organizations and assist contracting agencies in gathering
data and negotiating agreements;
`(4) designing criteria
to consider applications submitted under sections 1238C and 1238D;
`(5) providing assistance
and training to designated state agencies, project partners and contracting
agencies;
`(6) assisting designated
state agencies, project partners and contracting agencies in combining
together other conservation programs into agreements;
`(7) tailoring the agreements
to each individual property;
`(8) developing agreements
that are highly flexible and can be used to respond to and fit in with
the conservation needs and opportunities on any property in the United
States;
`(9) developing a methodology
for determining a fair market price in each state for each service rendered
by a private owner or operator under a Farmland Stewardship Agreement;
`(10) developing guidelines
for administering the Farmland Stewardship Program on a national basis
that respond to the conservation needs and opportunities in each state
and in each rural community in which Farmland Stewardship Agreements may
be implemented;
`(11) monitoring progress
under the agreements; and
`(12) reviewing and recommending
possible modifications, additions, adaptations, improvements, enhancements,
or other changes to the Program to improve the way in which the program
operates.
`(d) MEMBERSHIP- The Farmland
Stewardship Council shall have the same membership requirements as the
State Technical Committees, except that C
`(1) All participating members
must have offices located in the Washington, D.C. metropolitan area;
`(2) The list of members
representing `Federal Agencies and Other Groups Required by Law' shall
be expanded to include all federal agencies whose programs might be included
in Farmland Stewardship Program;
`(3) State agency representation
shall be provided by the organizations located in the Washington, D.C.
metropolitan area representing state agencies and shall include individuals
from organizations representing wetland managers, environmental councils,
fish and wildlife agencies, counties, resource and conservation development
councils, state conservation agencies, state departments of agriculture,
state foresters, and governors; and
`(4) Private Interest Membership
shall be comprised of 21 members representing the principal agricultural
commodity groups, farm organizations, national forestry associations, woodland
owners, conservation districts, rural stewardship organizations, and up
to a maximum of six (6) conservation and environment organizations, including
organizations with an emphasis on wildlife, rangeland management and soil
and water conservation.
`(5) The Secretary shall
appoint one of the Private Interest Members to serve as chair. The Private
Interest Members shall appoint another member to serve as co-chair.
`(6) The Secretary shall
follow equal opportunity practices in making appointments to the Farmland
Stewardship Council. To ensure that recommendations of the Council take
into account the needs of the diverse groups served by the United States
Department of Agriculture, membership will include, to the extent practicable,
individuals with demonstrated ability to represent minorities, women, and
persons with disabilities.
`(e) PERSONNEL COSTS- The
technical assistance funds designated in Sec. 1238A(g)(1)(B) may be used
to provide staff positions and support for the Farmland Stewardship Council
to--
`(1) carry out its duties
as provided in subsection (c);
`(2) ensure communication
and coordination with all federal agencies, state organizations and Private
Interest Members on the council, and the constituencies represented by
these agencies, organizations and members;
`(3) ensure communication
and coordination with the State Technical Committees and Resource Advisory
Committees in each state;
`(4) solicit input from
agricultural producers and owners and operators of private forestry operations
and woodland through the organizations represented on the council and other
organizations, as necessary; and
`(5) take into consideration
the needs and interests of producers of different agricultural commodities
and forest products in different regions of the nation.
`(6) Representatives of
federal agencies and state organizations shall serve without additional
compensation, except for reimbursement of travel expenses and per diem
costs which are incurred as a result of their Council responsibilities
and service.
`(7) Payments may be made
to the organizations serving as Private Interest Members for the purposes
of providing staff and support to carry out paragraphs (1) through (5).
The amounts and duration of these payments and the number of staff positions
to be created within Private Interest Member organizations to carry out
these duties shall be determined by the Secretary.
`(f) REPORTS- The Farmland
Stewardship Council shall annually submit to the Secretary and make publicly
available a report that describes--
`(1) The progress achieved,
the funds expended, the purposes for which funds were expended and results
obtained by the council; and
`(2) The plans and objectives
for future activities.
`(g) TERMINATION- The Farmland
Stewardship Council shall remain in force for as long as the Secretary
administers the Farmland Stewardship Program, except that the council will
terminate in 2011 unless renewed by Congress in the next Farm Bill.
`SEC. 1238F. STATE BLOCK GRANT
PROGRAM.
`(a) IN GENERAL- The Secretary
of Agriculture may provide agricultural stewardship block grants on an
annual basis to state departments of agriculture as a means of providing
assistance and support, cost-share payments, incentive payments, technical
assistance or education to agricultural producers and owners and operators
of agriculture, silviculture, aquaculture, horticulture or equine operations
for environmental enhancements, best management practices, or air and water
quality improvements addressing resource concerns. Under the block grant
program, states shall have maximum flexibility to--
`(1) Address threats to
soil, air, water and related natural resources including grazing land,
wetland and wildlife habitats;
`(2) Comply with state and
federal environmental laws;
`(3) Make beneficial, cost-effective
changes to cropping systems; grazing management; nutrient, pest, or irrigation
management; land uses; or other measures needed to conserve and improve
soil, water, and related natural resources; and
`(4) Implement other practices
or obtain other services to benefit the public through Farmland Stewardship
Agreements.
`(b) PROGRAM APPLICATION-
A state department of agriculture, in collaboration with other state and
local agencies, conservation districts, tribes, partners or organizations,
may submit an application to the Secretary requesting approval for an agricultural
stewardship block grant program. The Secretary shall approve the grant
request if the program proposed by the state maintains or improves the
state's natural resources, and the state has the capability to implement
the agricultural stewardship
program. Upon approval of a
stewardship program submitted by a state department of agriculture, the
Secretary shall--
`(1) Allocate funds to the
state for administration of the program, and
`(2) Enter into a memorandum
of understanding with the state department of agriculture specifying the
state's responsibilities in carrying out the program and the amount of
the block grant that shall be provided to the state on an annual basis.
`(c) PARTICIPATION- A state
department of agriculture may choose to operate the block grant program,
may collaborate with another local, state or federal agency, conservation
district or tribe in operating the program, or may delegate responsibility
for the program to another local, state or federal agency, such as the
state office of the United States Department of Agriculture, Natural Resources
Conservation Service, or the state conservation district agency.
`(d) COORDINATION- A state
department of agriculture may establish an agricultural stewardship planning
committee, or other advisory body, or expand the authority of an existing
body, to design, develop and implement the state's agricultural stewardship
block grant program. Such planning committee or advisory committee shall
cooperate fully with the Farmland Stewardship Council established in Sec.
1238E and the State Technical Committee and Resource Advisory Committee
in the state.
`(e) DELIVERY- The state
department of agriculture, or other designated agency, shall administer
the stewardship block grants through existing delivery systems, infrastructure
or processes, including contracts, cooperative agreements, and grants with
local, state and federal agencies that address resource concerns and were
prioritized and developed in cooperation with locally-led advisory groups.
`(f) STRATEGIC PLANS- The
state department of agriculture may collaborate with a local advisory or
planning committee to develop a state strategic plan for the enhancement
and protection of land, air, water and wildlife through resource planning.
The state strategic plan shall be submitted to the Secretary annually in
a report on the implementation of projects, activities, and other measures
under the block grant program. In general, state strategic plans shall
include--
`(1) A description of goals
and objectives, including outcome-related goals for designated program
activities;
`(2) A description of how
the goals and objectives are to be achieved, including a description of
the operational processes, skills and technologies, and the human capital,
information and other resources required to meet the goals and objectives;
`(3) A description of performance
indicators to be used in measuring or assessing the relevant output service
levels and outcomes of the program activities; and
`(4) A description of the
program evaluation to be used in comparing actual results with established
goals and objectives.
`(g) ANNUAL REPORTS- The
state department of agriculture shall annually submit to the Secretary
and make publicly available a report that describes--
`(1) The progress achieved,
the funds expended, the purposes for which funds were expended and monitoring
results obtained by the agricultural stewardship planning committee or
local advisory group, where applicable; and
`(2) The plans and objectives
of the State for future activities under the program.
`(h) COORDINATION WITH FEDERAL
AGENCIES- To the maximum extent possible, the Secretary shall coordinate
with other federal departments and agencies to acknowledge and ensure that
the block grant program is consistent with and is meeting the needs and
desired public benefits of other federal programs on a state-by-state basis.
`(i) PAYMENTS- The agricultural
stewardship program may be used as a means of providing compensation to
owners and operators for implementing on-farm practices that enhance environmental
goals. The type of financial assistance may be in the form of cost-share
payments, incentive payments or Farmland Stewardship Agreements, as determined
by guidelines established by the state department of agriculture and the
agricultural stewardship planning committee.
`(j) PROGRAM EXPENDITURES-
States shall have flexibility to target resources where needed, including
the ability to allocate dollars between payments to owners and operators
or technical assistance based upon needs and priorities.
`(k) METHOD OF PAYMENT-
A state department of agriculture may collaborate with the agricultural
stewardship planning committee or other local advisory group to determine
payment levels and methods for individual program activities and projects,
including any conditions, limitations or restrictions. Payments may be
made--
`(1) To compensate for a
verifiable or measurable loss;
`(2) Under a binding agreement
providing for payments to carry out specific activities, measures, practices
or services prioritized by the state department of agriculture, the agricultural
stewardship planning committee or a local advisory board; or
`(3) To fund portions of
projects and measures to complement other federal programs, including the
Conservation Reserve Program, the Environmental Quality Incentives Program,
the Wetlands Reserve Program, the Forestry Incentives Program, the Farmland
Protection Program, and the Wildlife Habitat Incentives Program.'.
SEC. 257. SMALL WATERSHED REHABILITATION
PROGRAM.
Section 14(h) of the Watershed
Protection and Flood Prevention Act (16 U.S.C. 1012(h)) is amended--
(1) by adding `and' at the
end of paragraph (1); and
(2) by striking all that
follows paragraph (1) and inserting the following:
`(2) $15,000,000 for fiscal
year 2002 and each succeeding fiscal year.'.
SEC. 258. PROVISION OF ASSISTANCE
FOR REPAUPO CREEK TIDE GATE AND DIKE RESTORATION PROJECT, NEW JERSEY.
Notwithstanding section
403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203), the Secretary
of Agriculture, acting through the Natural Resources Conservation Service,
shall provide assistance for planning and implementation of the Repaupo
Creek Tide Gate and Dike Restoration Project in the State of New Jersey.
SEC. 259. GRASSROOTS SOURCE
WATER PROTECTION PROGRAM.
Section 1256 of the Food
Security Act of 1985 (16 U.S.C. 2101 note) is amended to read as follows:
`SEC. 1256. GRASSROOTS SOURCE
WATER PROTECTION PROGRAM.
`(a) IN GENERAL- The Secretary
shall establish a national grassroots water protection program to more
effectively use onsite technical assistance capabilities of each State
rural water association that, as of the date of enactment of the Farm Security
Act of 2001, operates a wellhead or groundwater protection program in the
State.
`(b) AUTHORIZATION OF APPROPRIATIONS-
There is authorized to be appropriated to carry out this section $5,000,000
for each fiscal year.'.
Subtitle G--Repeals
SEC. 261. PROVISIONS OF THE
FOOD SECURITY ACT OF 1985.
(a) WETLANDS MITIGATION
BANKING PROGRAM- Section 1222 of the Food Security Act of 1985 (16 U.S.C.
3822) is amended by striking subsection (k).
(b) CONSERVATION RESERVE
PROGRAM-
(1) REPEALS- (A) Section
1234(f) of such Act (16 U.S.C. 3834(f)) is amended by striking paragraph
(3) and by redesignating paragraph (4) as paragraph (3).
(B) Section 1236 of such
Act (16 U.S.C. 3836) is repealed.
(2) CONFORMING AMENDMENTS-
(A) Section 1232(a)(5) of such Act (16 U.S.C. 3832(a)(5)) is amended by
striking `in addition to the remedies provided under section 1236(d),'.
(B) Section 1234(d)(4) of
such Act (16 U.S.C. 3834(d)(4)) is amended by striking `subsection (f)(4)'
and inserting `subsection (f)(3)'.
(c) WETLANDS RESERVE PROGRAM-
Section 1237D(c) of such Act (16 U.S.C. 3837d(c)) is amended by striking
paragraph (3).
(d) ENVIRONMENTAL EASEMENT
PROGRAM-
(1) REPEAL- Chapter 3 of
subtitle D of title XII of such Act (16 U.S.C. 3839-3839d) is repealed.
(2) CONFORMING AMENDMENT-
Section 1243(b)(3) of such Act (16 U.S.C. 3843(b)(3)) is amended by striking
`or 3'.
(e) CONSERVATION FARM OPTION-
Chapter 5 of subtitle D of title XII of such Act (16 U.S.C. 3839bb) is
repealed.
SEC. 262. NATIONAL NATURAL RESOURCES
CONSERVATION FOUNDATION ACT.
Subtitle F of title III
of the Federal Agriculture Improvement and Reform Act of 1996 (16 U.S.C.
5801-5809) is repealed.
TITLE III--TRADE
SEC. 301. MARKET ACCESS PROGRAM.
Section 211(c)(1) of the
Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is amended--
(1) by striking `and not
more' and inserting `not more';
(2) by inserting `and not
more than $180,000,000 for each of fiscal years 2002 through 2011,' after
`2002,'; and
(3) by striking `2002' and
inserting `2001'.
SEC. 302. FOOD FOR PROGRESS.
(a) IN GENERAL- Subsections
(f)(3), (g), (k), and (l)(1) of section 1110 of the Food Security Act of
1985 (7 U.S.C. 1736o) are each amended by striking `2002' and inserting
`2011'.
(b) INCREASE IN FUNDING-
Section 1110(l)(1) of the Food Security Act of 1985 (7 U.S.C. 1736o(l)(1))
is amended--
(1) by striking `2002' and
inserting `2011'; and
(2) by striking `$10,000,000'
and inserting `$15,000,000.
(c) EXCLUSION FROM LIMITATION-
Section 1110(e)(2) of the Food Security Act of 1985 (7 U.S.C. 1736o(e)(2))
is amended by inserting `, and subsection (g) does not apply to such commodities
furnished on a grant basis or on credit terms under title I of the Agricultural
Trade Development Act of 1954' before the final period.
(d) TRANSPORTATION COSTS-
Section 1110(f)(3) of the Food Security Act of 1985 (7 U.S.C. 1736o(f)(3))
is amended by striking `$30,000,000' and inserting `$100,000,000'.
(e) AMOUNTS OF COMMODITIES-
Section 1110(g) of the Food Security Act of 1985 (7 U.S.C. 1736o(g)) is
amended by striking `500,000' and inserting `1,000,000'.
(f) MULTIYEAR BASIS- Section
1110(j) of the Food Security Act of 1985 (7 U.S.C. 1736o(j)) is amended--
(1) by striking `may' and
inserting `is encouraged'; and
(2) by inserting `to' before
`approve'.
(g) MONETIZATION- Section
1110(l)(3) of the Food Security Act of 1985 (7 U.S.C. 1736o(l)(3)) is amended
by striking `local currencies' and inserting `proceeds'.
(h) NEW PROVISIONS- Section
1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is amended by adding
at the end the following:
`(p) The Secretary is encouraged
to finalize program agreements and resource requests for programs under
this section before the beginning of the relevant fiscal year. By November
1 of the relevant fiscal year, the Secretary shall provide 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 list of approved programs, countries, and commodities,
and the total amounts of funds approved for transportation and administrative
costs, under this section.'.
SEC. 303. 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) by striking `Foreign
currencies' and inserting `Proceeds'; and
(B) 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';
(C) by striking `; or' and
inserting a period; and
(D) by striking subclause
(II).
(b) IMPLEMENTATION OF AGREEMENTS-
Section 416(b)(8)(A) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)(A))
is amended--
(1) by inserting `(i)' after
`(A)'; and
(2) by adding at the end
the following new clauses:
`(ii) The Secretary shall
publish in the Federal Register, not later than October 31 of each fiscal
year, an estimate of the commodities that shall be available under this
section for that fiscal year.
`(iii) The Secretary is
encouraged to finalize program agreements under this section not later
than December 31 of each fiscal year.'.
SEC. 304. EXPORT ENHANCEMENT
PROGRAM.
Section 301(e)(1)(G) of
the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended
by inserting `and for each fiscal year thereafter through fiscal year 2011'
after `2002'.
SEC. 305. FOREIGN MARKET DEVELOPMENT
COOPERATOR PROGRAM.
(a) IN GENERAL- Section
703 of the Agricultural Trade Act of 1978 (7 U.S.C. 5723) is amended--
(1) by inserting `(a) PRIOR
YEARS- ' before `There';
(2) by striking `2002' and
inserting `2001'; and
(3) by adding at the end
the following new subsection:
`(b) FISCAL 2002 AND LATER-
For each of fiscal years 2002 through 2011 there are authorized to be appropriated
such sums as may be necessary to carry out this title, and, in addition
to any sums so appropriated, the Secretary shall use $37,000,000 of the
funds of, or an equal value of the commodities of, the Commodity Credit
Corporation to carry out this title.'.
(b) VALUE ADDED PRODUCTS-
(1) IN GENERAL- Section
702(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5721 et seq.) is
amended by inserting `, with a significant emphasis on the importance of
the export of value-added United States agricultural products into emerging
markets' after `products'.
(2) REPORT TO CONGRESS-
Section 702 of the Agricultural Trade Act of 1978 (7 U.S.C. 5722) is amended
by adding at the end the following:
`(1) IN GENERAL- The Secretary
shall report annually to appropriate congressional committees the amount
of funding provided, types of programs funded, the value added products
that have been targeted, and the foreign markets for those products that
have been developed.
`(2) DEFINITION- In this
subsection, the term `appropriate congressional committees' means--
`(A) the Committee on Agriculture
and the Committee on International Relations of the House of Representatives;
and
`(B) the Committee on Agriculture,
Nutrition, and Forestry and the Committee on Foreign Relations of the Senate.'.
SEC. 306. EXPORT CREDIT GUARANTEE
PROGRAM.
(a) 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 `2011'.
(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
2011'.
SEC. 307. FOOD FOR PEACE (PUBLIC
LAW 480).
The Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) is amended--
(1) in section 2 (7 U.S.C.
1691), by striking paragraph (2) and inserting the following:
`(2) promote broad-based,
equitable, and sustainable development, including agricultural development
as well as conflict prevention;';
(2) in section 202(e)(1)
(7 U.S.C. 1722(e)(1)), by striking `not less than $10,000,000, and not
more than $28,000,000' and inserting `not less than 5 percent and not more
than 10 percent of such funds';
(3) in section 203(a) (7
U.S.C. 1723(a)), by striking `the recipient country, or in a country' and
inserting `one or more recipient countries, or one or more countries';
(4) in section 203(c) (7
U.S.C. 1723(c))--
(A) by striking `foreign
currency'; and
(B) by striking `the recipient
country, or in a country' and inserting `one or more recipient countries,
or one or more countries';
(5) in section 203(d) (7
U.S.C. 1723(d))--
(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 `one or more recipient countries,
or one or more countries'; and
(C) in paragraph (3), by
inserting a comma after `invested' and `used';
(6) in section 204(a) (7
U.S.C. 1724(a))--
(A) by striking `1996 through
2002' and inserting `2002 through 2011'; and
(B) by striking `2,025,000'
and inserting `2,250,000';
(7) in section 205(f) (7
U.S.C. 1725(f)), by striking `2002' and inserting `2011';
(8) by striking section
206 (7 U.S.C. 1726);
(9) in section 207(a) (7
U.S.C. 1726a(a))--
(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 non-emergency food assistance agreement under
this title shall identify the recipient country or countries subject to
the agreement.
`(2) TIME FOR DECISION-
Not later than 120 days after receipt by the Administrator of a proposal
submitted by an eligible organization under this title, the Administrator
shall make a decision concerning such proposal.';
(10) in section 208(f),
by striking `2002' and inserting `2011';
(11) in section 403 (7 U.S.C.
1733), by inserting after subsection (k) the following:
`(l) SALES PROCEDURES- Subsections
(b) and (h) shall apply to sales of commodities to generate proceeds for
titles II and III of this Act, section 416(b) of the Agricultural Act of
1949, and section 1110 of the Food and Security Act of 1985. Such sales
transactions may be in United States dollars and other currencies.
`(m) REGULATIONS AND GUIDANCE-
As soon as practicable after the date of enactment of this subsection,
the Administrator of the Agency for International Development and the Secretary
shall jointly modify regulations and guidance of the Administrator and
Secretary relating to private voluntary organizations and cooperatives
to--
`(1) reflect performance-based
standards;
`(2) eliminate micromanagement;
and
`(3) recognize institutional
capabilities and best practices.';
(12) in section 407(c)(4),
by striking `2001 and 2002' and inserting `2001 through 2011';
(13) in section 407(c)(1)
(7 U.S.C. 1736a(c)(1))--
(A) by striking `The Administrator'
and inserting `(A) The Administrator'; and
(B) by adding at the end
the following:
`(B) In the case of commodities
made available for nonemergency assistance under title II for least developed
countries that meet the poverty and other eligibility criteria established
by the International Bank for Reconstruction and Development for financing
under the International Development Association, the Administrator may
pay the transportation costs incurred in moving the commodities from designated
points of entry or ports of entry abroad to storage and distribution sites
and associated storage and distribution costs.'.
(14) in section 408, by
striking `2002' and inserting `2011'; and
(15) in section 501(c),
by striking `2002' and inserting `2011'.
SEC. 308. EMERGING MARKETS.
Section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note) is
amended--
(1) in subsections (a) and
(d)(1)(A)(i), by striking `2002' and inserting `2011'; and
(2) in subsection (d)(1)(H),
by striking `$10,000,000 in any fiscal year' and inserting `$13,000,000
for each of fiscal years 2002 through 2011'.
SEC. 309. BILL EMERSON HUMANITARIAN
TRUST.
Subsections (b)(2)(B)(i),
(h)(1), and (h)(2) of section 302 of the Bill Emerson Humanitarian Trust
Act (7 U.S.C. 1736f-1) are each amended by striking `2002' and inserting
`2011'.
SEC. 310. TECHNICAL ASSISTANCE
FOR SPECIALTY CROPS.
(a) ESTABLISHMENT- The Secretary
of Agriculture shall establish an export assistance program (referred to
in this section as the `program') to address unique barriers that prohibit
or threaten the export of United States specialty crops.
(b) PURPOSE- The program
shall provide direct assistance through public and private sector projects
and technical assistance to remove, resolve, or mitigate sanitary and phytosanitary
and related barriers to trade.
(c) PRIORITY- The program
shall address time sensitive and strategic market access projects based
on--
(1) trade effect on market
retention, market access, and market expansion; and
(d) FUNDING- The Secretary
shall make available $3,000,000 for each of fiscal years 2002 through 2011
of the funds of, or an equal value of commodities owned by, the Commodity
Credit Corporation.
SEC. 311. FARMERS FOR AFRICA
AND CARIBBEAN BASIN PROGRAM.
(a) FINDINGS- Congress finds
the following:
(1) Many African farmers
and farmers in Caribbean Basin countries use antiquated techniques to produce
their crops, which result in poor crop quality and low crop yields.
(2) Many of these farmers
are losing business to farmers in European and Asian countries who use
advanced planting and production techniques and are supplying agricultural
produce to restaurants, resorts, tourists, grocery stores, and other consumers
in Africa and Caribbean Basin countries.
(3) A need exists for the
training of African farmers and farmers in Caribbean Basin countries and
other developing countries in farming techniques that are appropriate for
the majority of eligible farmers in African or Caribbean countries, including
standard growing practices, insecticide and sanitation procedures, and
other farming methods that will
produce increased yields of
more nutritious and healthful crops.
(4) African-American and
other American farmers, as well as banking and insurance professionals,
are a ready source of agribusiness expertise that would be invaluable for
African farmers and farmers in Caribbean Basin countries.
(5) A United States commitment
is appropriate to support the development of a comprehensive agricultural
skills training program for these farmers that focuses on--
(A) improving knowledge
of insecticide and sanitation procedures to prevent crop destruction;
(B) teaching modern farming
techniques, including the identification and development of standard growing
practices and the establishment of systems for recordkeeping, that would
facilitate a continual analysis of crop production;
(C) the use and maintenance
of farming equipment that is appropriate for the majority of eligible farmers
in African or Caribbean Basin countries;
(D) expansion of small farming
operations into agribusiness enterprises through the development and use
of village banking systems and the use of agricultural risk insurance pilot
products, resulting in increased access to credit for these farmers; and
(E) marketing crop yields
to prospective purchasers (businesses and individuals) for local needs
and export.
(6) The participation of
African-American and other American farmers and American agricultural farming
specialists in such a training program promises the added benefit of improving
access to African and Caribbean Basin markets for American farmers and
United States farm equipment and products and business linkages for United
States insurance providers offering technical assistance on, among other
things, agricultural risk insurance products.
(7) Existing programs that
promote the exchange of agricultural knowledge and expertise through the
exchange of American and foreign farmers have been effective in promoting
improved agricultural techniques and food security, and, thus, the extension
of additional resources to such farmer-to- farmer exchanges is warranted.
(b) DEFINITIONS- In this
section:
(1) AGRICULTURAL FARMING
SPECIALIST- The term `agricultural farming specialist' means an individual
trained to transfer information and technical support relating to agribusiness,
food security, the mitigation and alleviation of hunger, the mitigation
of agricultural and farm risk, maximization of crop yields, agricultural
trade, and other needs specific to a geographical location as determined
by the President.
(2) CARIBBEAN BASIN COUNTRY-
The term `Caribbean Basin country' means a country eligible for designation
as a beneficiary country under section 212 of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702).
(3) ELIGIBLE FARMER- The
term `eligible farmer' means an individual owning or working on farm land
(as defined by a particular country's laws relating to property) in the
sub-Saharan region of the continent of Africa, in a Caribbean Basin country,
or in any other developing country in which the President determines there
is a need for farming expertise or for information or technical support
described in paragraph (1).
(4) PROGRAM- The term `Program'
means the Farmers for Africa and Caribbean Basin Program established under
this section.
(c) ESTABLISHMENT OF PROGRAM-
The President shall establish a grant program, to be known as the `Farmers
for Africa and Caribbean Basin Program', to assist eligible organizations
in carrying out bilateral exchange programs whereby African-American and
other American farmers and American agricultural farming specialists share
technical knowledge with eligible farmers regarding--
(1) maximization of crop
yields;
(2) use of agricultural
risk insurance as financial tools and a means of risk management (as allowed
by Annex II of the World Trade Organization rules);
(3) expansion of trade in
agricultural products;
(4) enhancement of local
food security;
(5) the mitigation and alleviation
of hunger;
(6) marketing agricultural
products in local, regional, and international markets; and
(7) other ways to improve
farming in countries in which there are eligible farmers.
(d) ELIGIBLE GRANTEES- The
President may make a grant under the Program to--
(1) a college or university,
including a historically black college or university, or a foundation maintained
by a college or university; and
(2) a private organization
or corporation, including grassroots organizations, with an established
and demonstrated capacity to carry out such a bilateral exchange program.
(e) TERMS OF PROGRAM- (1)
It is the goal of the Program that at least 1,000 farmers participate in
the training program by December 31, 2005, of which 80 percent of the total
number of participating farmers will be African farmers or farmers in Caribbean
Basin countries and 20 percent of the total number of participating farmers
will be American farmers.
(2) Training under the Program
will be provided to eligible farmers in groups to ensure that information
is shared and passed on to other eligible farmers. Eligible farmers will
be trained to be specialists in their home communities and will be encouraged
not to retain enhanced farming technology for their own personal enrichment.
(3) Through partnerships
with American businesses, the Program will utilize the commercial industrial
capability of businesses dealing in agriculture to train eligible farmers
on farming equipment that is appropriate for the majority of eligible farmers
in African or Caribbean Basin
countries and to introduce eligible
farmers to the use of insurance as a risk management tool.
(f) SELECTION OF PARTICIPANTS-
(1) The selection of eligible farmers, as well as African-American and
other American farmers and agricultural farming specialists, to participate
in the Program shall be made by grant recipients using an application process
approved by the President.
(2) Participating farmers
must have sufficient farm or agribusiness experience and have obtained
certain targets regarding the productivity of their farm or agribusiness.
(g) GRANT PERIOD- The President
may make grants under the Program during a period of 5 years beginning
on October 1 of the first fiscal year for which funds are made available
to carry out the Program.
(h) AUTHORIZATION OF APPROPRIATIONS-
There are authorized to be appropriated to carry out this section $25,000,000
for each of fiscal years 2002 through 2011.
SEC. 312. GEORGE MCGOVERN-ROBERT
DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION PROGRAM.
(a) IN GENERAL- The President
may, subject to subsection (j), direct the procurement of commodities and
the provision of financial and technical assistance to carry out--
(1) preschool and school
feeding programs in foreign countries to improve food security, reduce
the incidence of hunger, and improve literacy and primary education, particularly
with respect to girls; and
(2) maternal, infant, and
child nutrition programs for pregnant women, nursing mothers, infants,
and children who are 5 years of age or younger.
(b) ELIGIBLE COMMODITIES
AND COST ITEMS- Notwithstanding any other provision of law--
(1) any agricultural commodity
is eligible for distribution under this section;
(2) as necessary to achieve
the purposes of this section--
(A) funds may be used to
pay the transportation costs incurred in moving commodities (including
prepositioned commodities) provided under this section from the designated
points of entry or ports of entry of one or more recipient countries to
storage and distribution sites in these countries, and associated storage
and distribution costs;
(B) funds may be used to
pay the costs of activities conducted in the recipient countries by a nonprofit
voluntary organization, cooperative, or intergovernmental agency or organization
that would enhance the effectiveness of the activities implemented by such
entities under this section; and
(C) funds may be provided
to meet the allowable administrative expenses of private voluntary organizations,
cooperatives, or intergovernmental organizations which are implementing
activities under this section; and
(3) for the purposes of
this section, the term `agricultural commodities' includes any agricultural
commodity, or the products thereof, produced in the United States.
(c) GENERAL AUTHORITIES-
The President shall designate one or more Federal agencies to--
(1) implement the program
established under this section;
(2) ensure that the program
established under this section is consistent with the foreign policy and
development assistance objectives of the United States; and
(3) consider, in determining
whether a country should receive assistance under this section, whether
the government of the country is taking concrete steps to improve the preschool
and school systems in its country.
(d) ELIGIBLE RECIPIENTS-
Assistance may be provided under this section to private voluntary organizations,
cooperatives, intergovernmental organizations, governments and their agencies,
and other organizations.
(1) IN GENERAL- In carrying
out subsection (a) the President shall assure that procedures are established
that--
(A) provide for the submission
of proposals by eligible recipients, each of which may include one or more
recipient countries, for commodities and other assistance under this section;
(B) provide for eligible
commodities and assistance on a multi-year basis;
(C) ensure eligible recipients
demonstrate the organizational capacity and the ability to develop, implement,
monitor, report on, and provide accountability for activities conducted
under this section;
(D) provide for the expedited
development, review, and approval of proposals submitted in accordance
with this section;
(E) ensure monitoring and
reporting by eligible recipients on the use of commodities and other assistance
provided under this section; and
(F) allow for the sale or
barter of commodities by eligible recipients to acquire funds to implement
activities that improve the food security of women and children or otherwise
enhance the effectiveness of programs and activities authorized under this
section.
(2) PRIORITIES FOR PROGRAM
FUNDING- In carrying out paragraph (1) with respect to criteria for determining
the use of commodities and other assistance provided for programs and activities
authorized under this section, the implementing agency may consider the
ability of eligible recipients to--
(A) identify and assess
the needs of beneficiaries, especially malnourished or undernourished mothers
and their children who are 5 years of age or younger, and school-age children
who are malnourished, undernourished, or do not regularly attend school;
(B)(i) in the case of preschool
and school-age children, target low-income areas where children's enrollment
and attendance in school is low or girls' enrollment and participation
in preschool or school is low, and incorporate developmental objectives
for improving literacy and primary education, particularly with respect
to girls; and
(ii) in the case of programs
to benefit mothers and children who are 5 years of age or younger, coordinate
supplementary feeding and nutrition programs with existing or newly-established
maternal, infant, and children programs that provide health-needs interventions,
and which may include maternal, prenatal, and postnatal and newborn care;
(C) involve indigenous institutions
as well as local communities and governments in the development and implementation
to foster local capacity building and leadership; and
(D) carry out multiyear
programs that foster local self-sufficiency and ensure the longevity of
recipient country programs.
(f) USE OF FOOD AND NUTRITION
SERVICE- The Food and Nutrition Service of the Department of Agriculture
may provide technical advice on the establishment of programs under subsection
(a)(1) and on their implementation in the field in recipient countries.
(g) MULTILATERAL INVOLVEMENT-
The President is urged to engage existing international food aid coordinating
mechanisms to ensure multilateral commitments to, and participation in,
programs like those supported under this section. The President shall report
annually to the Committee on International Relations and the Committee
on Agriculture of the United States House of Representatives and the Committee
on Foreign Relations and the Committee on Agriculture, Nutrition, and Forestry
of the United States Senate on the commitments and activities of governments,
including the United States government, in the global effort to reduce
child hunger and increase school attendance.
(h) PRIVATE SECTOR INVOLVEMENT-
The President is urged to encourage the support and active involvement
of the private sector, foundations, and other individuals and organizations
in programs assisted under this section.
(i) REQUIREMENT TO SAFEGUARD
LOCAL PRODUCTION AND USUAL MARKETING- The requirement of section 403(a)
of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1733(a) and 1733(h)) applies with respect to the availability of commodities
under this section.
(1) IN GENERAL- There are
authorized to be appropriated such sums as may be necessary to carry out
this section for each of fiscal years 2002 through 2011. Nothing in this
section shall be interpreted to preclude the use of authorities in effect
before the date of the enactment of this Act to carry out the ongoing Global
Food for Education Initiative.
(2) ADMINISTRATIVE EXPENSES-
Funds made available to carry out the purposes of this section may be used
to pay the administrative expenses of any agency of the Federal Government
implementing or assisting in the implementation of this section.
SEC. 313. STUDY ON FEE FOR SERVICES.
(a) STUDY- Not later than
1 year after the date of the enactment of this Act, the Secretary shall
provide a report to the designated congressional committees on the feasibility
of instituting a program which would charge and retain a fee to cover the
costs for providing persons with commercial services performed abroad on
matters within the authority of the Department of Agriculture administered
through the Foreign Agriculture Service or any successor agency.
(b) DEFINITION- In this
section, the term `designated congressional committees' means 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.
SEC. 314. NATIONAL EXPORT STRATEGY
REPORT.
(a) REPORT- Not later than
1 year after the date of the enactment of this Act, the Secretary of Agriculture
shall provide to the designated congressional committees a report on the
policies and programs that the Department of Agriculture has undertaken
to implement the National Export Strategy Report. The report shall contain
a description of the effective coordination of these policies and programs
through all other appropriate Federal agencies participating in the Trade
Promotion Coordinating Committee and the steps the Department of Agriculture
is taking to reduce the level of protectionism in agricultural trade, to
foster market growth, and to improve the commercial potential of markets
in both developed and developing countries for United States agricultural
commodities.
(b) DEFINITION- In this
section, the term `designated congressional committees' means 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.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
SEC. 401. SIMPLIFIED DEFINITION
OF INCOME.
Section 5(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(d)) is amended--
(A) by striking `and (C)'
and inserting `(C)'; and
(B) by inserting after `premiums,'
the following:
`and (D) to the extent that
any other educational loans on which payment is deferred, grants, scholarships,
fellowships, veterans' educational benefits, and the like, are required
to be excluded under title XIX of the Social Security Act, the state agency
may exclude it under this subsection,';
(2) by striking `and (15)'
and inserting `(15)';
(3) by inserting before
the period at the end the following:
`, (16) any state complementary
assistance program payments that are excluded pursuant to subsections (a)
and (b) of section 1931 of title XIX of the Social Security Act, and (17)
at the option of the State agency, any types of income that the State agency
does not consider when determining eligibility for cash assistance under
a program funded under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) or medical assistance under section 1931 of the Social
Security Act (42 U.S.C. 1396u-1), except that this paragraph shall not
authorize a State agency to exclude earned income, payments under title
I, II, IV, X, XIV, or XVI of the Social Security Act, or such other types
of income whose consideration the Secretary determines essential to equitable
determinations of eligibility and benefit levels except to the extent that
those types of income may be excluded under other paragraphs of this subsection'.
SEC. 402. STANDARD DEDUCTION.
Section 5(e)(1) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(e)(1)) is amended--
(1) by striking `of $134,
$229, $189, $269, and $118' and inserting `equal to 9.7 percent of the
eligibility limit established under section 5(c)(1) for fiscal year 2002
but not more than 9.7 percent of the eligibility limit established under
section 5(c)(1) for a household of six for fiscal year 2002 nor less than
$134, $229, $189, $269, and $118'; and
(2) by inserting before
the period at the end the following:
`, except that the standard
deduction for Guam shall be determined with reference to 2 times the eligibility
limits under section 5(c)(1) for fiscal year 2002 for the 48 contiguous
states and the District of Columbia'.
SEC. 403. TRANSITIONAL FOOD
STAMPS FOR FAMILIES MOVING FROM WELFARE.
(a) IN GENERAL- Section
11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is amended by adding at
the end the following:
`(s) TRANSITIONAL BENEFITS
OPTION-
`(1) IN GENERAL- A State
may provide transitional food stamp benefits to a household that is no
longer eligible to receive cash assistance under a State program funded
under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).
`(2) TRANSITIONAL BENEFITS
PERIOD- Under paragraph (1), a household may continue to receive food stamp
benefits for a period of not more than 6 months after the date on which
cash assistance is terminated.
`(3) AMOUNT- During the
transitional benefits period under paragraph (2), a household shall receive
an amount equal to the allotment received in the month immediately preceding
the date on which cash assistance is terminated. A household receiving
benefits under this subsection may apply for recertification at any time
during the transitional benefit period. If a household reapplies, its allotment
shall be determined without regard to this subsection for all subsequent
months.
`(4) DETERMINATION OF FUTURE
ELIGIBILITY- In the final month of the transitional benefits period under
paragraph (2), the State agency may--
`(A) require a household
to cooperate in a redetermination of eligibility to receive an authorization
card; and
`(B) renew eligibility for
a new certification period for the household without regard to whether
the previous certification period has expired.
`(5) LIMITATION- A household
sanctioned under section 6, or for a failure to perform an action required
by Federal, State, or local law relating to such cash assistance program,
shall not be eligible for transitional benefits under this subsection.'.
(b) CONFORMING AMENDMENTS-
(1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended
by adding at the end the following: `The limits in this section may be
extended until the end of any transitional benefit period established under
section 11(s).'.
(2) Section 6(c) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(c)) is amended by striking `No household'
and inserting `Except in a case in which a household is receiving transitional
benefits during the transitional benefits period under section 11(s), no
household'.
SEC. 404. QUALITY CONTROL SYSTEMS.
(a) TARGETED QUALITY CONTROL
SYSTEM- Section 16(c) of the Food Stamp Act of 1977 (7 U.S.C. 2025(c))
is amended--
(1) in paragraph (1)(C)--
(A) in the matter preceding
clause (i), by inserting `the Secretary determines that a 95 percent statistical
probability exists that for the 3d consecutive year' after `year in which';
and
(B) in clause (i)(II)(aa)(bbb)
by striking `the national performance measure for the fiscal year' and
inserting `10 percent';
(2) in the 1st sentence
of paragraph (4)--
(A) by striking `or claim'
and inserting `claim'; and
(B) by inserting `or performance
under the measures established under paragraph (10),' after `for payment
error,';
(3) in paragraph (5), by
inserting `to comply with paragraph (10) and' before `to establish';
(4) in the 1st sentence
of paragraph (6), by inserting `one percentage point more than' after `measure
that shall be'; and
(5) by inserting at the
end the following:
`(10)(A) In addition to
the measures established under paragraph (1), the Secretary shall measure
the performance of State agencies in each of the following regards--
`(i) compliance with the
deadlines established under paragraphs (3) and (9) of section 11(e); and
`(ii) the percentage of
negative eligibility decisions that are made correctly.
`(B) For each fiscal year,
the Secretary shall make excellence bonus payments of $1,000,000 each to
the 5 States with the highest combined performance in the 2 measures in
subparagraph (A) and to the 5 States whose
combined performance under the
2 measures in subparagraph (A) most improved in such fiscal year.
`(C) For any fiscal year
in which the Secretary determines that a 95 percent statistical probability
exists that a State agency's performance with respect to any of the 2 performance
measures established in subparagraph (A) is substantially worse than a
level the Secretary deems reasonable, other than for good cause shown,
the Secretary shall investigate that State agency's administration of the
food stamp program. If this investigation determines that the State's administration
has been deficient, the Secretary shall require the State agency to take
prompt corrective action.'.
(b) IMPLEMENTATION- The
amendment made by subsection (a)(5) shall apply to all fiscal years beginning
on or after October 1, 2001, and ending before October 1, 2007. All other
amendments made by this section shall apply to all fiscal years beginning
on or after October 1, 1999.
SEC. 405. SIMPLIFIED APPLICATION
AND ELIGIBILITY DETERMINATION SYSTEMS.
Section 16 of the Food Stamp
Act of 1977 (7 U.S.C. 2025) is amended by inserting at the end the following:
`(l) SIMPLIFICATION OF SYSTEMS-
The Secretary shall expend up to $9,500,000 million in each fiscal year
to pay 100 percent of the costs of State agencies to develop and implement
simple application and eligibility determination systems.'.
SEC. 406. AUTHORIZATION OF APPROPRIATIONS.
(a) EMPLOYMENT AND TRAINING
PROGRAMS- Section 16(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1))
is amended--
(1) in subparagraph (A)(vii)
by striking `fiscal year 2002' and inserting `each of the fiscal years
2003 through 2011'; and
(2) in subparagraph (B)
by striking `2002' and inserting `2011'.
(b) COST ALLOCATION- Section
16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 2025(k)(3)) is amended--
(1) in subparagraph (A)
by striking `2002' and inserting `2011'; and
(2) in subparagraph (B)(ii)
by striking `2002' and inserting `2011'.
(c) CASH PAYMENT PILOT PROJECTS-
Section 17(b)(1)(B)(vi) of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi))
is amended by striking `2002' and inserting `2011'.
(d) OUTREACH DEMONSTRATION
PROJECTS- Section 17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A))
is amended by striking `1992 through 2002' and inserting `2003 through
2011'.
(e) AUTHORIZATION OF APPROPRIATIONS-
Section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is
amended by striking `1996 through 2002' and inserting `2003 through 2011'.
(f) PUERTO RICO- Section
19(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
(1) in subparagraph (A)--
(A) in clause (ii) by striking
`and' at the end;
(B) in clause (iii) by adding
`and' at the end; and
(C) by inserting after clause
(iii) the following:
`(iv) for each of fiscal
years 2003 through 2011, the amount equal to the amount required to be
paid under this subparagraph for the preceding fiscal year, as adjusted
by the percentage by which the thrifty food plan is adjusted under section
3(o)(4) for the current fiscal year for which the amount is determined
under this clause;'; and
(2) in subparagraph (B)--
(A) by inserting `(i)' after
`(B)'; and
(B) by adding at the end
the following:
`(ii) Notwithstanding subparagraph
(A) and clause (i), the Commonwealth may spend up to $6,000,000 of the
amount required under subparagraph (A) to be paid for fiscal year 2002
to pay 100 percent of the cost to upgrade and modernize the electronic
data processing system used to provide such food assistance and to implement
systems to simplify the determination of eligibility to receive such assistance.'.
(g) TERRITORY OF AMERICAN
SAMOA- Section 24 of the Food Stamp Act of 1977 (7 U.S.C. 2033) is amended--
(1) by striking `Effective
October 1, 1995, from' and inserting `From'; and
(2) by striking `$5,300,000
for each of fiscal years 1996 through 2002' and inserting `$5,750,000 for
fiscal year 2002 and $5,800,000 for each of fiscal years 2003 though 2011'.
(h) ASSISTANCE FOR COMMUNITY
FOOD PROJECTS- Section 25(b)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2034(b)(2)) is amended--
(1) in subparagraph (A)
by striking `and' at the end;
(2) in subparagraph (B)--
(A) by striking `2002' and
inserting `2001'; and
(B) by striking the period
at the end and inserting `; and'; and
(3) by inserting after subparagraph
(B) the following:
`(C) $7,500,000 for each
of the fiscal years 2002 through 2011.'.
(i) AVAILABILITY OF COMMODITIES
FOR THE EMERGENCY FOOD ASSISTANCE PROGRAM- Section 27 of the Food Stamp
Act of 1977 (7 U.S.C. 2036) is amended--
(A) by striking `1997 through
2002' and inserting `2002 through 2011'; and
(B) by striking `$100,000,000'
and inserting `$140,000,000'; and
(2) by adding at the end
the following:
`(c) USE OF FUNDS FOR RELATED
COSTS- For each of the fiscal years 2002 through 2011, the Secretary shall
use $10,000,000 of the funds made available under subsection (a) to pay
for the direct and indirect costs of the States related to the processing,
storing, transporting, and distributing to eligible recipient agencies
of commodities purchased by the Secretary under such subsection and commodities
secured from other sources, including commodities secured by gleaning (as
defined in section
111 of the Hunger Prevention
Act of 1988 (7 U.S.C. 612c note)).'.
(j) SPECIAL EFFECTIVE DATE-
The amendments made by subsections (g), (h), and (i) shall take effect
on October 1, 2001.
Subtitle B--Commodity Distribution
SEC. 441. DISTRIBUTION OF SURPLUS
COMMODITIES TO SPECIAL NUTRITION PROJECTS.
Section 1114(a) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e) is amended by striking `2002' and
inserting `2011'.
SEC. 442. COMMODITY SUPPLEMENTAL
FOOD PROGRAM.
The Agriculture and Consumer
Protection Act of 1973 (7 U.S.C. 612c note) is amended--
(1) in section 4(a) by striking
`1991 through 2002' and inserting `2003 through 2011'; and
(2) in subsections (a)(2)
and (d)(2) of section 5 by striking `1991 through 2002' and inserting `2003
through 2011'.
SEC. 443. EMERGENCY FOOD ASSISTANCE.
The 1st sentence of section
204(a)(1) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1))
is amended--
(1) by striking `1991 through
2002' and inserting `2003 through 2011';
(2) by striking `administrative';
and
(3) by inserting `storage,'
after `processing,'.
Subtitle C--Miscellaneous Provisions
SEC. 461. HUNGER FELLOWSHIP
PROGRAM.
(a) SHORT TITLE; FINDINGS-
(1) SHORT TITLE- This section
may be cited as the `Congressional Hunger Fellows Act of 2001'.
(2) FINDINGS- The Congress
finds as follows:
(A) There is a critical
need for compassionate individuals who are committed to assisting people
who suffer from hunger as well as a need for such individuals to initiate
and administer solutions to the hunger problem.
(B) Bill Emerson, the distinguished
late Representative from the 8th District of Missouri, demonstrated his
commitment to solving the problem of hunger in a bipartisan manner, his
commitment to public service, and his great affection for the institution
and the ideals of the United States Congress.
(C) George T. (Mickey) Leland,
the distinguished late Representative from the 18th District of Texas,
demonstrated his compassion for those in need, his high regard for public
service, and his lively exercise of political talents.
(D) The special concern
that Mr. Emerson and Mr. Leland demonstrated during their lives for the
hungry and poor was an inspiration for others to work toward the goals
of equality and justice for all.
(E) These two outstanding
leaders maintained a special bond of friendship regardless of political
affiliation and worked together to encourage future leaders to recognize
and provide service to others, and therefore it is especially appropriate
to honor the memory of Mr. Emerson and Mr. Leland by creating a fellowship
program to develop and train the future leaders of the United States to
pursue careers in humanitarian service.
(b) ESTABLISHMENT- There
is established as an independent entity of the legislative branch of the
United States Government the Congressional Hunger Fellows Program (hereinafter
in this section referred to as the `Program').
(1) IN GENERAL- The Program
shall be subject to the supervision and direction of a Board of Trustees.
(2) MEMBERS OF THE BOARD
OF TRUSTEES-
(A) APPOINTMENT- The Board
shall be composed of 6 voting members appointed under clause (i) and one
nonvoting ex officio member designated in clause (ii) as follows:
(i) VOTING MEMBERS- (I)
The Speaker of the House of Representatives shall appoint two members.
(II) The minority leader
of the House of Representatives shall appoint one member.
(III) The majority leader
of the Senate shall appoint two members.
(IV) The minority leader
of the Senate shall appoint one member.
(ii) NONVOTING MEMBER- The
Executive Director of the program shall serve as a nonvoting ex officio
member of the Board.
(B) TERMS- Members of the
Board shall serve a term of 4 years.
(i) AUTHORITY OF BOARD-
A vacancy in the membership of the Board does not affect the power of the
remaining members to carry out this section.
(ii) APPOINTMENT OF SUCCESSORS-
A vacancy in the membership of the Board shall be filled in the same manner
in which the original appointment was made.
(iii) INCOMPLETE TERM- If
a member of the Board does not serve the full term applicable to the member,
the individual appointed to fill the resulting vacancy shall be appointed
for the remainder of the term of the predecessor of the individual.
(D) CHAIRPERSON- As the
first order of business of the first meeting of the Board, the members
shall elect a Chairperson.
(i) IN GENERAL- Subject
to clause (ii), members of the Board may not receive compensation for service
on the Board.
(ii) TRAVEL- Members of
the Board may be reimbursed for travel, subsistence, and other necessary
expenses incurred in carrying out the duties of the program.
(i) ESTABLISHMENT- The Board
shall establish such bylaws and other regulations as may be appropriate
to enable the Board to carry out this section, including the duties described
in this paragraph.
(ii) CONTENTS- Such bylaws
and other regulations shall include provisions--
(I) for appropriate fiscal
control, funds accountability, and operating principles;
(II) to prevent any conflict
of interest, or the appearance of any conflict of interest, in the procurement
and employment actions taken by the Board or by any officer or employee
of the Board and in the selection and placement of individuals in the fellowships
developed under the program;
(III) for the resolution
of a tie vote of the members of the Board; and
(IV) for authorization of
travel for members of the Board.
(iii) TRANSMITTAL TO CONGRESS-
Not later than 90 days after the date of the first meeting of the Board,
the Chairperson of the Board shall transmit to the appropriate congressional
committees a copy of such bylaws.
(B) BUDGET- For each fiscal
year the program is in operation, the Board shall determine a budget for
the program for that fiscal year. All spending by the program shall be
pursuant to such budget unless a change is approved by the Board.
(C) PROCESS FOR SELECTION
AND PLACEMENT OF FELLOWS- The Board shall review and approve the process
established by the Executive Director for the selection and placement of
individuals in the fellowships developed under the program.
(D) ALLOCATION OF FUNDS
TO FELLOWSHIPS- The Board of Trustees shall determine the priority of the
programs to be carried out under this section and the amount of funds to
be allocated for the Emerson and Leland fellowships.
(d) PURPOSES; AUTHORITY
OF PROGRAM-
(1) PURPOSES- The purposes
of the program are--
(A) to encourage future
leaders of the United States to pursue careers in humanitarian service,
to recognize the needs of people who are hungry and poor, and to provide
assistance and compassion for those in need;
(B) to increase awareness
of the importance of public service; and
(C) to provide training
and development opportunities for such leaders through placement in programs
operated by appropriate organizations or entities.
(2) AUTHORITY- The program
is authorized to develop such fellowships to carry out the purposes of
this section, including the fellowships described in paragraph (3).
(A) IN GENERAL- The program
shall establish and carry out the Bill Emerson Hunger Fellowship and the
Mickey Leland Hunger Fellowship.
(i) IN GENERAL- The fellowships
established under subparagraph (A) shall provide experience and training
to develop the skills and understanding necessary to improve the humanitarian
conditions and the lives of individuals who suffer from hunger, including--
(I) training in direct service
to the hungry in conjunction with community-based organizations through
a program of field placement; and
(II) experience in policy
development through placement in a governmental entity or nonprofit organization.
(ii) FOCUS OF BILL EMERSON
HUNGER FELLOWSHIP- The Bill Emerson Hunger Fellowship shall address hunger
and other humanitarian needs in the United States.
(iii) FOCUS OF MICKEY LELAND
HUNGER FELLOWSHIP- The Mickey Leland Hunger Fellowship shall address international
hunger and other humanitarian needs.
(iv) WORKPLAN- To carry
out clause (i) and to assist in the evaluation of the fellowships under
paragraph (4), the program shall, for each fellow, approve a work plan
that identifies the target objectives for the fellow in the fellowship,
including specific duties and responsibilities related to those objectives.
(C) PERIOD OF FELLOWSHIP-
(i) EMERSON FELLOW- A Bill
Emerson Hunger Fellowship awarded under this paragraph shall be for no
more than 1 year.
(ii) LELAND FELLOW- A Mickey
Leland Hunger Fellowship awarded under this paragraph shall be for no more
than 2 years. Not less than 1 year of the fellowship shall be dedicated
to fulfilling the requirement of subparagraph (B)(i)(I).
(D) SELECTION OF FELLOWS-
(i) IN GENERAL- A fellowship
shall be awarded pursuant to a nationwide competition established by the
program.
(ii) QUALIFICATION- A successful
applicant shall be an individual who has demonstrated--
(I) an intent to pursue
a career in humanitarian service and outstanding potential for such a career;
(II) a commitment to social
change;
(III) leadership potential
or actual leadership experience;
(IV) diverse life experience;
(V) proficient writing and
speaking skills;
(VI) an ability to live
in poor or diverse communities; and
(VII) such other attributes
as determined to be appropriate by the Board.
(I) IN GENERAL- Each individual
awarded a fellowship under this paragraph shall receive a living allowance
and, subject to subclause (II), an end-of-service award as determined by
the program.
(II) REQUIREMENT FOR SUCCESSFUL
COMPLETION OF FELLOWSHIP- Each individual awarded a fellowship under this
paragraph shall be entitled to receive an end-of-service award at an appropriate
rate for each month of satisfactory service as determined by the Executive
Director.
(iv) RECOGNITION OF FELLOWSHIP
AWARD-
(I) EMERSON FELLOW- An individual
awarded a fellowship from the Bill Emerson Hunger Fellowship shall be known
as an `Emerson Fellow'.
(II) LELAND FELLOW- An individual
awarded a fellowship from the Mickey Leland Hunger Fellowship shall be
known as a `Leland Fellow'.
(4) EVALUATION- The program
shall conduct periodic evaluations of the Bill Emerson and Mickey Leland
Hunger Fellowships. Such evaluations shall include the following:
(A) An assessment of the
successful completion of the work plan of the fellow.
(B) An assessment of the
impact of the fellowship on the fellows.
(C) An assessment of the
accomplishment of the purposes of the program.
(D) An assessment of the
impact of the fellow on the community.
(1) ESTABLISHMENT- There
is established the Congressional Hunger Fellows Trust Fund (hereinafter
in this section referred to as the `Fund') in the Treasury of the United
States, consisting of amounts appropriated to the Fund under subsection
(i), amounts credited to it under paragraph (3), and amounts received under
subsection (g)(3)(A).
(2) INVESTMENT OF FUNDS-
The Secretary of the Treasury shall invest the full amount of the Fund.
Each investment shall be made in an interest bearing obligation of the
United States or an obligation guaranteed as to principal and interest
by the United States that, as determined by the Secretary in consultation
with the Board, has a maturity suitable for the Fund.
(3) RETURN ON INVESTMENT-
Except as provided in subsection (f)(2), the Secretary of the Treasury
shall credit to the Fund the interest on, and the proceeds from the sale
or redemption of, obligations held in the Fund.
(f) EXPENDITURES; AUDITS-
(1) IN GENERAL- The Secretary
of the Treasury shall transfer to the program from the amounts described
in subsection (e)(3) and subsection (g)(3)(A) such sums as the Board determines
are necessary to enable the program to carry out the provisions of this
section.
(2) LIMITATION- The Secretary
may not transfer to the program the amounts appropriated to the Fund under
subsection (i).
(3) USE OF FUNDS- Funds
transferred to the program under paragraph (1) shall be used for the following
purposes:
(A) STIPENDS FOR FELLOWS-
To provide for a living allowance for the fellows.
(B) TRAVEL OF FELLOWS- To
defray the costs of transportation of the fellows to the fellowship placement
sites.
(C) INSURANCE- To defray
the costs of appropriate insurance of the fellows, the program, and the
Board.
(D) TRAINING OF FELLOWS-
To defray the costs of preservice and midservice education and training
of fellows.
(E) SUPPORT STAFF- Staff
described in subsection (g).
(F) AWARDS- End-of-service
awards under subsection (d)(3)(D)(iii)(II).
(G) ADDITIONAL APPROVED
USES- For such other purposes that the Board determines appropriate to
carry out the program.
(A) IN GENERAL- The Comptroller
General of the United States shall conduct an annual audit of the accounts
of the program.
(B) BOOKS- The program shall
make available to the Comptroller General all books, accounts, financial
records, reports, files, and all other papers, things, or property belonging
to or in use by the program and necessary to facilitate such audit.
(C) REPORT TO CONGRESS-
The Comptroller General shall submit a copy of the results of each such
audit to the appropriate congressional committees.
(g) STAFF; POWERS OF PROGRAM-
(A) IN GENERAL- The Board
shall appoint an Executive Director of the program who shall administer
the program. The Executive Director shall carry out such other functions
consistent with the provisions of this section as the Board shall prescribe.
(B) RESTRICTION- The Executive
Director may not serve as Chairperson of the Board.
(C) COMPENSATION- The Executive
Director shall be paid at a rate not to exceed the rate of basic pay payable
for level V of the Executive Schedule under section 5316 of title 5, United
States Code.
(A) IN GENERAL- With the
approval of a majority of the Board, the Executive Director may appoint
and fix the pay of additional personnel as the Executive Director considers
necessary and appropriate to carry out the functions of the provisions
of this section.
(B) COMPENSATION- An individual
appointed under subparagraph (A) shall be paid at a rate not to exceed
the rate of basic pay payable for level GS-15 of the General Schedule.
(3) POWERS- In order to
carry out the provisions of this section, the program may perform the following
functions:
(A) GIFTS- The program may
solicit, accept, use, and dispose of gifts, bequests, or devises of services
or property, both real and personal, for the purpose of aiding or facilitating
the work of the program. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests, or devises shall
be deposited in the Fund and shall be available for disbursement upon order
of the Board.
(B) EXPERTS AND CONSULTANTS-
The program may procure temporary and intermittent services under section
3109 of title 5, United States Code, but at rates for individuals not to
exceed the daily equivalent of the maximum annual rate of basic pay payable
for GS-15 of the General Schedule.
(C) CONTRACT AUTHORITY-
The program may contract, with the approval of a majority of the members
of the Board, with and compensate Government and private agencies or persons
without regard to section 3709 of the Revised Statutes (41 U.S.C. 5).
(D) OTHER NECESSARY EXPENDITURES-
The program shall make such other expenditures which the program considers
necessary to carry out the provisions of this section, but excluding project
development.
(h) REPORT- Not later than
December 31 of each year, the Board shall submit to the appropriate congressional
committees a report on the activities of the program carried out during
the previous fiscal year, and shall include the following:
(1) An analysis of the evaluations
conducted under subsection (d)(4) (relating to evaluations of the Emerson
and Leland fellowships and accomplishment of the program purposes) during
that fiscal year.
(2) A statement of the total
amount of funds attributable to gifts received by the program in that fiscal
year (as authorized under subsection (g)(3)(A)), and the total amount of
such funds that were expended to carry out the program that fiscal year.
(i) AUTHORIZATION OF APPROPRIATIONS-
There are authorized to be appropriated $18,000,000 to carry out the provisions
of this section.
(j) DEFINITION- In this
section, the term `appropriate congressional committees' means--
(1) the Committee on Agriculture
and the Committee on International Relations of the House of Representatives;
and
(2) the Committee on Agriculture,
Nutrition and Forestry and the Committee on Foreign Relations of the Senate.
SEC. 462. GENERAL EFFECTIVE
DATE.
Except as otherwise provided
in this title, the amendments made by this title shall take effect on October
1, 2002.
TITLE V--CREDIT
Subtitle A--Farm Ownership Loans
SEC. 501. DIRECT LOANS.
Section 302(b)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(b)(1)) is amended
by striking `operated' and inserting `participated in the business operations
of'.
SEC. 502. FINANCING OF BRIDGE
LOANS.
Section 303(a)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1)) is amended--
(1) in subparagraph (C),
by striking `or' at the end;
(2) in subparagraph (D),
by striking the period at the end and inserting `; or'; and
(3) by adding at the end
the following:
`(E) refinancing, during
a fiscal year, a short-term, temporary bridge loan made by a commercial
or cooperative lender to a beginning farmer or rancher for the acquisition
of land for a farm or ranch, if--
`(i) the Secretary approved
an application for a direct farm ownership loan to the beginning farmer
or rancher for acquisition of the land; and
`(ii) funds for direct farm
ownership loans under section 346(b) were not available at the time at
which the application was approved.'.
SEC. 503. LIMITATIONS ON AMOUNT
OF FARM OWNERSHIP LOANS.
Section 305 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1925) is amended by striking subsection
(a) and inserting the following:
`(a) IN GENERAL- The Secretary
shall not make or insure a loan under section 302, 303, 304, 310D, or 310E
that would cause the unpaid indebtedness under those sections of any 1
borrower to exceed the lesser of--
`(1) the value of the farm
or other security; or
`(2)(A) in the case of a
loan made by the Secretary--
`(i) to a beginning farmer
or rancher, $250,000, as adjusted (beginning with fiscal year 2003) by
the inflation percentage applicable to the fiscal year in which the loan
is made; or
`(ii) to a borrower other
than a beginning farmer or rancher, $200,000; or
`(B) in the case of a loan
guaranteed by the Secretary, $700,000, as--
`(i) adjusted (beginning
with fiscal year 2000) by the inflation percentage applicable to the fiscal
year in which the loan is guaranteed; and
`(ii) reduced by the amount
of any unpaid indebtedness of the borrower on loans under subtitle B that
are guaranteed by the Secretary.'.
SEC. 504. JOINT FINANCING ARRANGEMENTS.
Section 307(a)(3)(D) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1927(a)(3)(D))
is amended--
(1) by striking `If' and
inserting the following:
`(i) IN GENERAL- Subject
to clause (ii), if'; and
(2) by adding at the end
the following:
`(ii) BEGINNING FARMERS
AND RANCHERS- The interest rate charged a beginning farmer or rancher for
a loan described in clause (i) shall be 50 basis points less than the rate
charged farmers and ranchers that are not beginning farmers or ranchers.'.
SEC. 505. GUARANTEE PERCENTAGE
FOR BEGINNING FARMERS AND RANCHERS.
Section 309(h)(6) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1929(h)(6)) is amended
by striking `GUARANTEED UP' and all that follows through `more than' and
inserting `GUARANTEED AT 95 PERCENT- The Secretary shall guarantee'.
SEC. 506. GUARANTEE OF LOANS
MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS.
Section 309 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1929) is amended by adding at
the end the following:
`(j) GUARANTEE OF LOANS
MADE UNDER STATE BEGINNING FARMER OR RANCHER PROGRAMS- The Secretary may
guarantee under this title a loan made under a State beginning farmer or
rancher program, including a loan financed by the net proceeds of a qualified
small issue agricultural bond for land or property described in section
144(a)(12)(B)(ii) of the Internal Revenue Code of 1986.'.
SEC. 507. DOWN PAYMENT LOAN
PROGRAM.
Section 310E of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1935) is amended--
(A) in paragraph (1), by
striking `30 percent' and inserting `40 percent'; and
(B) in paragraph (3), by
striking `10 years' and inserting `20 years'; and
(2) in subsection (c)(3)(B),
by striking `10-year' and inserting `20-year'.
SEC. 508. BEGINNING FARMER AND
RANCHER CONTRACT LAND SALES PROGRAM.
(a) IN GENERAL- Subtitle
A of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et
seq.) is amended by adding at the end the following:
`SEC. 310F. BEGINNING FARMER
AND RANCHER CONTRACT LAND SALES PROGRAM.
`(a) IN GENERAL- Not later
than October 1, 2002, the Secretary shall carry out a pilot program in
not fewer than 10 geographically dispersed States, as determined by the
Secretary, to guarantee up to 5 loans per State in each of fiscal years
2003 through 2006 made by a private seller of a farm or ranch to a qualified
beginning farmer or rancher on a contract land sale basis, if the loan
meets applicable underwriting criteria and a commercial lending institution
agrees to serve as escrow agent.
`(b) DATE OF COMMENCEMENT
OF PROGRAM- The Secretary shall commence the pilot program on making a
determination that guarantees of contract land sales present a risk that
is comparable with the risk presented in the case of guarantees to commercial
lenders.'.
(1) IN GENERAL- As soon
as practicable after the date of enactment of this Act, the Secretary of
Agriculture shall promulgate such regulations as are necessary to implement
the amendment made by subsection (a).
(2) PROCEDURE- The promulgation
of the regulations and administration of the amendment made by subsection
(a) 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 the amendment made by subsection
(a), the Secretary shall use the authority provided under section 808 of
title 5, United States Code.
Subtitle B--Operating Loans
SEC. 511. DIRECT LOANS.
Section 311(c)(1)(A) of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1941(c)(1)(A))
is amended by striking `who has not' and all that follows through `5 years'.
SEC. 512. AMOUNT OF GUARANTEE
OF LOANS FOR TRIBAL FARM OPERATIONS; WAIVER OF LIMITATIONS FOR TRIBAL OPERATIONS
AND OTHER OPERATIONS.
(a) AMOUNT OF GUARANTEE
OF LOANS FOR TRIBAL OPERATIONS- Section 309(h) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1929(h)) is amended--
(1) in paragraph (4), by
striking `paragraphs (5) and (6)' and inserting `paragraphs (5), (6), and
(7)'; and
(2) by adding at the end
the following:
`(7) AMOUNT OF GUARANTEE
OF LOANS FOR TRIBAL OPERATIONS- In the case of an operating loan made to
a Native American farmer or rancher whose farm or ranch is within an Indian
reservation (as defined in section 335(e)(1)(A)(ii)), the Secretary shall
guarantee 95 percent of the loan.'.
(b) WAIVER OF LIMITATIONS-
Section 311(c) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1941(c)) is amended--
(1) in paragraph (1), by
striking `paragraph (3)' and inserting `paragraphs (3) and (4)'; and
(2) by adding at the end
the following:
`(A) TRIBAL FARM AND RANCH
OPERATIONS- The Secretary shall waive the limitation under paragraph (1)(C)
for a direct loan made under this subtitle to a Native American farmer
or rancher whose farm or ranch is within an Indian reservation (as defined
in section 335(e)(1)(A)(ii)) if the Secretary determines that commercial
credit is not generally available for such farm or ranch operations.
`(B) OTHER FARM AND RANCH
OPERATIONS- On a case-by-case determination not subject to administrative
appeal, the Secretary may grant a borrower a waiver, 1 time only for a
period of 2 years, of the limitation under paragraph (1)(C) for a direct
operating loan if the borrower demonstrates to the satisfaction of the
Secretary that--
`(i) the borrower has a
viable farm or ranch operation;
`(ii) the borrower applied
for commercial credit from at least 2 commercial lenders;
`(iii) the borrower was
unable to obtain a commercial loan (including a loan guaranteed by the
Secretary); and
`(iv) the borrower successfully
has completed, or will complete within 1 year, borrower training under
section 359 (from which requirement the Secretary shall not grant a waiver
under section 359(f)).'.
Subtitle C--Administrative Provisions
SEC. 521. ELIGIBILITY OF LIMITED
LIABILITY COMPANIES FOR FARM OWNERSHIP LOANS, FARM OPERATING LOANS, AND
EMERGENCY LOANS.
(a) IN GENERAL- Sections
302(a), 311(a), and 321(a) of the Consolidated Farm and Rural Development
Act (7 U.S.C. 1922(a), 1941(a), 1961(a)) are amended by striking `and joint
operations' each place it appears and inserting `joint operations, and
limited liability companies'.
(b) CONFORMING AMENDMENT-
Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)) is amended by striking `or joint operations' each place it appears
and inserting `joint operations, or limited liability companies'.
SEC. 522. DEBT SETTLEMENT.
Section 331(b)(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) is amended
by striking `carried out--' and all that follows through `(B) after' and
inserting `carried out after'.
SEC. 523. TEMPORARY AUTHORITY
TO ENTER INTO CONTRACTS; PRIVATE COLLECTION AGENCIES.
(a) IN GENERAL- Section
331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1981)
is amended by striking subsections (d) and (e).
(b) APPLICATION- The amendment
made by subsection (a) shall not apply to a contract entered into before
the effective date of this Act.
SEC. 524. INTEREST RATE OPTIONS
FOR LOANS IN SERVICING.
Section 331B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1981b) is amended--
(1) by striking `lower of
(1) the' and inserting the following: `lowest of--
(2) by striking `original
loan or (2) the' and inserting the following: `original loan;
`(2) the rate being charged
by the Secretary for loans, other than guaranteed loans, of the same type
at the time at which the borrower applies for a deferral, consolidation,
rescheduling, or reamortization; or
SEC. 525. ANNUAL REVIEW OF BORROWERS.
Section 333 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1983) is amended by striking paragraph
(2) and inserting the following:
`(2) except with respect
to a loan under section 306, 310B, or 314--
`(A) an annual review of
the credit history and business operation of the borrower; and
`(B) an annual review of
the continued eligibility of the borrower for the loan;'.
SEC. 526. SIMPLIFIED LOAN APPLICATIONS.
Section 333A(g)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1983a(g)(1)) is amended
by striking `of loans the principal amount of which is $50,000 or less'
and inserting `of farmer program loans the principal amount of which is
$100,000 or less'.
SEC. 527. INVENTORY PROPERTY.
Section 335(c) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1985(c)) is amended--
(A) in subparagraph (B)--
(i) in clause (i), by striking
`75 days' and inserting `135 days'; and
(ii) by adding at the end
the following:
`(iv) COMBINING AND DIVIDING
OF PROPERTY- To the maximum extent practicable, the Secretary shall maximize
the opportunity for beginning farmers and ranchers to purchase real property
acquired by the Secretary under this title by combining or dividing inventory
parcels of the property in such manner as the Secretary determines to be
appropriate.'; and
(B) in subparagraph (C)--
(i) by striking `75 days'
and inserting `135 days'; and
(ii) by striking `75-day
period' and inserting `135-day period';
(2) by striking paragraph
(2) and inserting the following:
`(2) PREVIOUS LEASE- In
the case of real property acquired before April 4, 1996, that the Secretary
leased before April 4, 1996, not later than 60 days after the lease expires,
the Secretary shall offer to sell the property in accordance with paragraph
(1).'; and
(A) in subparagraph (A),
by striking `subparagraph (B)' and inserting `subparagraphs (B) and (C)';
and
(B) by adding at the end
the following:
`(C) OFFER TO SELL OR GRANT
FOR FARMLAND PRESERVATION- For the purpose of farmland preservation, the
Secretary shall--
`(i) in consultation with
the State Conservationist of each State in which inventory property is
located, identify each parcel of inventory property in the State that should
be preserved for agricultural use; and
`(ii) offer to sell or grant
an easement, restriction, development right, or similar legal right to
each parcel identified under clause (i) to a State, a political subdivision
of a State, or a private nonprofit organization separately from the underlying
fee or other rights to the property owned by the United States.'.
SEC. 528. DEFINITIONS.
(a) QUALIFIED BEGINNING
FARMER OR RANCHER- Section 343(a)(11)(F) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking `25 percent'
and inserting `30 percent'.
(b) DEBT FORGIVENESS- Section
343(a)(12) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(12)) is amended by striking subparagraph (B) and inserting the
following:
`(B) EXCEPTIONS- The term
`debt forgiveness' does not include--
`(i) consolidation, rescheduling,
reamortization, or deferral of a loan; or
`(ii) any write-down provided
as part of a resolution of a discrimination complaint against the Secretary.'.
SEC. 529. LOAN AUTHORIZATION
LEVELS.
Section 346 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1994) is amended--
(A) by striking paragraph
(1) and inserting the following:
`(1) IN GENERAL- The Secretary
may make or guarantee loans under subtitles A and B from the Agricultural
Credit Insurance Fund provided for in section 309 for not more than $3,750,000,000
for each of fiscal years 2002 through 2006, of which, for each fiscal year--
`(A) $750,000,000 shall
be for direct loans, of which--
`(i) $200,000,000 shall
be for farm ownership loans under subtitle A; and
`(ii) $550,000,000 shall
be for operating loans under subtitle B; and
`(B) $3,000,000,000 shall
be for guaranteed loans, of which--
`(i) $1,000,000,000 shall
be for guarantees of farm ownership loans under subtitle A; and
`(ii) $2,000,000,000 shall
be for guarantees of operating loans under subtitle B.'; and
(B) in paragraph (2)(A)(ii),
by striking `farmers and ranchers' and all that follows and inserting `farmers
and ranchers 35 percent for each of fiscal years 2002 through 2006.'; and
(2) in subsection (c), by
striking the last sentence.
SEC. 530. INTEREST RATE REDUCTION
PROGRAM.
Section 351 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1999) is amended--
(A) by striking `PROGRAM-
' and all that follows through `The Secretary' and inserting `PROGRAM-
The Secretary'; and
(B) by striking paragraph
(2);
(2) by striking subsection
(c) and inserting the following:
`(c) AMOUNT OF INTEREST
RATE REDUCTION-
`(1) IN GENERAL- In return
for a contract entered into by a lender under subsection (b) for the reduction
of the interest rate paid on a loan, the Secretary shall make payments
to the lender in an amount equal to not more than 100 percent of the cost
of reducing the annual rate of interest payable on the loan, except that
such payments shall not exceed the cost of reducing the rate by more than--
`(A) in the case of a borrower
other than a beginning farmer or rancher, 3 percent; and
`(B) in the case of a beginning
farmer or rancher, 4 percent.
`(2) BEGINNING FARMERS AND
RANCHERS- The percentage reduction of the interest rate for which payments
are authorized to be made for a beginning farmer or rancher under paragraph
(1) shall be 1 percent more than the percentage reduction for farmers and
ranchers that are not beginning farmers or ranchers.'; and
(3) in subsection (e), by
striking paragraph (2) and inserting the following:
`(2) MAXIMUM AMOUNT OF FUNDS-
`(A) IN GENERAL- The total
amount of funds used by the Secretary to carry out this section for a fiscal
year shall not exceed $750,000,000.
`(B) BEGINNING FARMERS AND
RANCHERS-
`(i) IN GENERAL- The Secretary
shall reserve not less than 25 percent of the funds used by the Secretary
under subparagraph (A) to make payments for guaranteed loans made to beginning
farmers and ranchers.
`(ii) DURATION OF RESERVATION
OF FUNDS- Funds reserved for beginning farmers or ranchers under clause
(i) for a fiscal year shall be reserved only until April 1 of the fiscal
year.'.
SEC. 531. OPTIONS FOR SATISFACTION
OF OBLIGATION TO PAY RECAPTURE AMOUNT FOR SHARED APPRECIATION AGREEMENTS.
(a) IN GENERAL- Section
353(e)(7) of the Consolidated Farm and Rural Development Act (7 U.S.C.
2001(e)(7)) is amended--
(1) in subparagraph (C),
by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively,
and adjusting the margins appropriately;
(2) by redesignating subparagraphs
(A) through (C) as clauses (i) through (iii), respectively, and adjusting
the margins appropriately;
(3) by striking the paragraph
heading and inserting the following:
`(7) OPTIONS FOR SATISFACTION
OF OBLIGATION TO PAY RECAPTURE AMOUNT-
`(A) IN GENERAL- As an alternative
to repaying the full recapture amount at the end of the term of the agreement
(as determined by the Secretary in accordance with this section), a borrower
may satisfy the obligation to pay the amount of recapture by--
`(i) financing the recapture
payment in accordance with subparagraph (B); or
`(ii) granting the Secretary
an agricultural use protection and conservation easement on the property
subject to the shared appreciation agreement in accordance with subparagraph
(C).
`(B) FINANCING OF RECAPTURE
PAYMENT- '; and
(4) by adding at the end
the following:
`(C) AGRICULTURAL USE PROTECTION
AND CONSERVATION EASEMENT-
`(i) IN GENERAL- Subject
to clause (iii), the Secretary shall accept an agricultural use protection
and conservation easement from the borrower for all of the real security
property subject to the shared appreciation agreement in lieu of payment
of the recapture amount.
`(ii) TERM- The term of
an easement accepted by the Secretary under this subparagraph shall be
25 years.
`(iii) CONDITIONS- The easement
shall require that the property subject to the easement shall continue
to be used or conserved for agricultural and conservation uses in accordance
with sound farming and conservation practices, as determined by the Secretary.
`(iv) REPLACEMENT OF METHOD
OF SATISFYING OBLIGATION- A borrower that has begun financing of a recapture
payment under subparagraph (B) may replace that financing with an agricultural
use protection and conservation easement under this subparagraph.'.
(b) APPLICABILITY- The amendments
made by subsection (a) shall apply to a shared appreciation agreement that--
(1) matures on or after
the date of enactment of this Act; or
(2) matured before the date
of enactment of this Act, if--
(A) the recapture amount
was reamortized under section 353(e)(7) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 2001(e)(7)) (as in effect on the day before the
date of enactment of this Act); or
(B)(i) the recapture amount
had not been paid before the date of enactment of this Act because of circumstances
beyond the control of the borrower; and
(ii) the borrower acted
in good faith (as determined by the Secretary) in attempting to repay the
recapture amount.
SEC. 532. WAIVER OF BORROWER
TRAINING CERTIFICATION REQUIREMENT.
Section 359 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 2006a) is amended by striking
subsection (f) and inserting the following:
`(1) IN GENERAL- The Secretary
may waive the requirements of this section for an individual borrower if
the Secretary determines that the borrower demonstrates adequate knowledge
in areas described in this section.
`(2) CRITERIA- The Secretary
shall establish criteria providing for the application of paragraph (1)
consistently in all counties nationwide.'.
SEC. 533. ANNUAL REVIEW OF BORROWERS.
Section 360(d)(1) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 2006b(d)(1)) is amended
by striking `biannual' and inserting `annual'.
Subtitle D--Farm Credit
SEC. 541. REPEAL OF BURDENSOME
APPROVAL REQUIREMENTS.
(a) BANKS FOR COOPERATIVES-
Section 3.1(11)(B) of the Farm Credit Act of 1971 (12 U.S.C. 2122(11)(B))
is amended--
(1) by striking clause (iii);
and
(2) by redesignating clause
(iv) as clause (iii).
(b) OTHER SYSTEM BANKS;
ASSOCIATIONS- Section 4.18A of the Farm Credit Act of 1971 (12 U.S.C. 2206a)
is amended--
(1) in subsection (a)(1),
by striking `3.11(11)(B)(iv)' and inserting `3.11(11)(B)(iii)'; and
(2) by striking subsection
(c).
SEC. 542. BANKS FOR COOPERATIVES.
Section 3.7(b) of the Farm
Credit Act of 1971 (12 U.S.C. 2128(b)) is amended--
(1) in paragraphs (1) and
(2)(A)(i), by striking `farm supplies' each place it appears and inserting
`agricultural supplies'; and
(2) by adding at the end
the following:
`(4) DEFINITION OF AGRICULTURAL
SUPPLY- In this subsection, the term `agricultural supply' includes--
`(B)(i) agriculture-related
processing equipment;
`(ii) agriculture-related
machinery; and
`(iii) other capital-related
goods related to the storage or handling of agricultural commodities or
products.'.
SEC. 543. INSURANCE CORPORATION
PREMIUMS.
(a) REDUCTION IN PREMIUMS
FOR GSE-GUARANTEED LOANS-
(1) IN GENERAL- Section
5.55 of the Farm Credit Act of 1971 (12 U.S.C. 2277a-4) is amended--
(I) in subparagraph (A),
by striking `government-guaranteed loans provided for in subparagraph (C)'
and inserting `loans provided for in subparagraphs (C) and (D)';
(II) in subparagraph (B),
by striking `and' at the end;
(III) in subparagraph (C),
by striking the period at the end and inserting `; and'; and
(IV) by adding at the end
the following:
`(D) the annual average
principal outstanding for such year on the guaranteed portions of Government
Sponsored Enterprise-guaranteed loans made by the bank that are in accrual
status, multiplied by a factor, not to exceed 0.0015, determined by the
Corporation at the sole discretion of the Corporation.'; and
(ii) by adding at the end
the following:
`(4) DEFINITION OF GOVERNMENT
SPONSORED ENTERPRISE-GUARANTEED LOAN- In this section and sections 1.12(b)
and 5.56(a), the term `Government Sponsored Enterprise-guaranteed loan'
means a loan or credit, or portion of a loan or credit, that is guaranteed
by an entity that is chartered by Congress to serve a public purpose and
the debt obligations of which are not explicitly guaranteed by the United
States, including the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, the Federal Home Loan Bank System, and
the Federal Agricultural Mortgage Corporation, but not including any other
institution of the Farm Credit System.'; and
(B) in subsection (e)(4)(B),
by striking `government-guaranteed loans described in subsection (a)(1)(C)'
and inserting `loans described in subparagraph (C) or (D) of subsection
(a)(1)'.
(2) CONFORMING AMENDMENTS-
(A) Section 1.12(b) of the
Farm Credit Act of 1971 (12 U.S.C. 2020(b)) is amended--
(i) in paragraph (1), by
inserting `and Government Sponsored Enterprise-guaranteed loans (as defined
in section 5.55(a)(4)) provided for in paragraph (4)' after `government-guaranteed
loans (as defined in section 5.55(a)(3)) provided for in paragraph (3)';
(ii) in paragraph (2), by
striking `and' at the end;
(iii) in paragraph (3),
by striking the period at the end and inserting `; and'; and
(iv) by adding at the end
the following:
`(4) the annual average
principal outstanding for such year on the guaranteed portions of Government
Sponsored Enterprise-guaranteed loans (as so defined) made by the association,
or by the other financing institution and funded by or discounted with
the Farm Credit Bank, that are in accrual status, multiplied by the factor,
not to exceed 0.0015, determined by the Corporation for the purpose of
setting the premium for such guaranteed portions of loans under section
5.55(a)(1)(D).'.
(B) Section 5.56(a) of the
Farm Credit Act of 1971 (12 U.S.C. 2277a-5(a)) is amended--
(i) in paragraph (1), by
inserting `and Government Sponsored Enterprise-guaranteed loans (as defined
in section 5.55(a)(4))' after `government-guaranteed loans';
(ii) by redesignating paragraphs
(4) and (5) as paragraphs (5) and (6), respectively; and
(iii) by inserting after
paragraph (3) the following:
`(4) the annual average
principal outstanding on the guaranteed portions of Government Sponsored
Enterprise-guaranteed loans (as defined in section 5.55(a)(4)) that are
in accrual status;'.
(b) EFFECTIVE DATE- The
amendments made by subsection (a) take effect on the date on which Farm
Credit System Insurance Corporation premiums are due from insured Farm
Credit System banks under section 5.55 of the Farm Credit Act of 1971 (12
U.S.C. 2277a-4) for calendar year 2001.
SEC. 544. BOARD OF DIRECTORS
OF THE FEDERAL AGRICULTURAL MORTGAGE CORPORATION.
Section 8.2(b) of the Farm
Credit Act of 1971 (12 U.S.C. 2279aa-2(b)) is amended--
(A) by striking `15' and
inserting `17';
(B) in subparagraph (A),
by striking `common stock' and all that follows and inserting `Class A
voting common stock;';
(C) in subparagraph (B),
by striking `common stock' and all that follows and inserting `Class B
voting common stock;';
(D) by redesignating subparagraph
(C) as subparagraph (D); and
(E) by inserting after subparagraph
(B) the following:
`(C) 2 members shall be
elected by holders of Class A voting common stock and Class B voting common
stock, 1 of whom shall be the chief executive officer of the Corporation
and 1 of whom shall be another executive officer of the Corporation; and';
(2) in paragraph (3), by
striking `(2)(C)' and inserting `(2)(D)';
(A) in subparagraph (A),
by striking `(A) or (B)' and inserting `(A), (B), or (C)'; and
(B) in subparagraph (B),
by striking `(2)(C)' and inserting `(2)(D)';
(4) in paragraph (5)(A)--
(A) by inserting `executive
officers of the Corporation or' after `from among persons who are'; and
(B) by striking `such a
representative' and inserting `such an executive officer or representative';
(5) in paragraph (6)(B),
by striking `(A) and (B)' and inserting `(A), (B), and (C)';
(6) in paragraph (7), by
striking `8 members' and inserting `Nine members';
(A) in the paragraph heading,
by inserting `OR EXECUTIVE OFFICERS OF THE CORPORATION' after `EMPLOYEES';
and
(B) by inserting `or executive
officers of the Corporation' after `United States'; and
(8) by striking paragraph
(9) and inserting the following:
`(A) ELECTION- The permanent
board shall annually elect a chairperson from among the members of the
permanent board.
`(B) TERM- The term of the
chairperson shall coincide with the term served by elected members of the
permanent board under paragraph (6)(B).'.
Subtitle E--General Provisions
SEC. 551. INAPPLICABILITY OF
FINALITY RULE.
Section 281(a)(1) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 7001(a)(1))
is amended--
(1) by striking `This subsection'
and inserting the following:
`(A) IN GENERAL- Except
as provided in subparagraph (B), this subsection'; and
(2) by adding at the end
the following:
`(B) AGRICULTURAL CREDIT
DECISIONS- This subsection shall not apply with respect to an agricultural
credit decision made by such a State, county, or area committee, or employee
of such a committee, under the Consolidated Farm and Rural Development
Act (7 U.S.C. 1921 et seq.).'.
SEC. 552. TECHNICAL AMENDMENTS.
(a) Section 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended
by striking `Disaster Relief and Emergency Assistance Act' each place it
appears and inserting `Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.)'.
(b) Section 336(b) of the
Consolidated Farm and Rura