S 1731 PCS
Calendar No. 237
107th CONGRESS
1st Session
S. 1731
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
IN THE SENATE OF THE UNITED
STATES
November 27, 2001
Mr. HARKIN, from the Committee
on Agriculture, Nutrition, and Forestry, reported the following original
bill; which was read twice and placed on the calendar
A BILL
To strengthen the
safety net for agricultural producers, to enhance resource conservation
and rural development, to provide for farm credit, agricultural research,
nutrition, and related programs, to ensure consumers abundant food and
fiber, and for other purposes.
Be it enacted by the
Senate and House of Representatives of the United States of America in
Congress assembled,
SECTION 1. SHORT TITLE; TABLE
OF CONTENTS.
(a) SHORT TITLE- This Act
may be cited as the `Agriculture, Conservation, and Rural Enhancement Act
of 2001'.
(b) TABLE OF CONTENTS- The
table of contents of this Act is as follows:
TITLE I--COMMODITY PROGRAMS
Subtitle A--Direct and Counter-Cyclical
Payments
Sec. 111. Direct and counter-cyclical
payments.
Sec. 112. Violations of
contracts.
Sec. 113. Planting flexibility.
Subtitle B--Nonrecourse Marketing
Assistance Loans and Loan Deficiency Payments
Sec. 121. Nonrecourse marketing
assistance loans and loan deficiency payments.
Sec. 122. Eligible production.
Sec. 125. Repayment of loans.
Sec. 126. Loan deficiency
payments.
Subtitle C--Other Commodities
Chapter 1--Dairy
Sec. 131. Milk price support
program.
Sec. 132. National dairy
program.
Sec. 133. Dairy export incentive
and dairy indemnity programs.
Sec. 134. Fluid milk promotion.
Sec. 135. Dairy product
mandatory reporting.
Sec. 136. Funding of dairy
promotion and research program.
Chapter 2--Sugar
Sec. 142. Storage facility
loans.
Sec. 143. Flexible marketing
allotments for sugar.
Chapter 3--Peanuts
Sec. 151. Peanut program.
Sec. 152. Termination of
marketing quotas for peanuts and compensation to peanut quota holders.
Subtitle D--Administration
Sec. 161. Adjustment authority
related to Uruguay Round compliance.
Sec. 162. Suspension of
permanent price support authority.
Sec. 163. Commodity purchases.
Sec. 164. Hard white wheat
incentive payments.
Sec. 165. Payment limitations.
TITLE II--CONSERVATION
Subtitle A--Conservation Security
Sec. 201. Conservation security
program.
Sec. 203. Partnerships and
cooperation.
Sec. 204. Administrative
requirements for conservation programs.
Sec. 205. Reform and assessment
of conservation programs.
Sec. 206. Conservation security
program regulations.
Sec. 207. Conforming amendments.
Subtitle B--Program Extensions
Sec. 211. Comprehensive
conservation enhancement program.
Sec. 212. Conservation reserve
program.
Sec. 213. Wetlands reserve
program.
Sec. 214. Environmental
quality incentives program.
Sec. 215. Resource conservation
and development program.
Sec. 216. Wildlife habitat
incentive program.
Sec. 217. Farmland protection
program.
Sec. 218. Grassland reserve
program.
Sec. 219. State technical
committees.
Sec. 220. Use of symbols,
slogans, and logos.
TITLE III--TRADE
Subtitle A--Agricultural Trade
Development and Assistance Act of 1954 and Related Statutes
Sec. 301. United States
policy.
Sec. 302. Provision of agricultural
commodities.
Sec. 303. Generation and
use of currencies by private voluntary organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative
Group.
Sec. 306. Maximum level
of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for
stockpiling and rapid transportation, delivery, and distribution of shelf-stable
prepackaged foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient
fortification program.
Sec. 313. Farmer-to-farmer
program.
Subtitle B--Agricultural Trade
Act of 1978
Sec. 321. Export credit
guarantee program.
Sec. 322. Market access
program.
Sec. 323. Export enhancement
program.
Sec. 324. Foreign market
development cooperator program.
Sec. 325. Food for progress
and education programs.
Sec. 326. Exporter assistance
initiative.
Subtitle C--Miscellaneous Agricultural
Trade Provisions
Sec. 331. Bill Emerson Humanitarian
Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology
and agricultural trade program.
Sec. 334. Surplus commodities
for developing or friendly countries.
Sec. 335. Agricultural trade
with Cuba.
Sec. 336. Sense of Congress
concerning agricultural trade.
TITLE IV--NUTRITION PROGRAMS
Subtitle A--Food Stamp Program
Sec. 411. Encouragement
of payment of child support.
Sec. 412. Simplified definition
of income.
Sec. 413. Increase in benefits
to households with children.
Sec. 414. Simplified determination
of housing costs.
Sec. 415. Simplified utility
allowance.
Sec. 416. Simplified procedure
for determination of earned income.
Sec. 417. Simplified determination
of deductions.
Sec. 418. Simplified definition
of resources.
Sec. 419. Alternative issuance
systems in disasters.
Sec. 420. State option to
reduce reporting requirements.
Sec. 421. Benefits for adults
without dependents.
Sec. 422. Preservation of
access to electronic benefits.
Sec. 423. Cost neutrality
for electronic benefit transfer systems.
Sec. 424. Alternative procedures
for residents of certain group facilities.
Sec. 425. Availability of
food stamp program applications on the Internet.
Sec. 426. Simplified determinations
of continuing eligibility.
Sec. 427. Clearinghouse
for successful nutrition education efforts.
Sec. 428. Transitional food
stamps for families moving from welfare.
Sec. 429. Delivery to retailers
of notices of adverse action.
Sec. 430. Reform of quality
control system.
Sec. 431. Improvement of
calculation of State performance measures.
Sec. 432. Bonuses for States
that demonstrate high performance.
Sec. 433. Employment and
training program.
Sec. 434. Reauthorization
of food stamp program and food distribution program on Indian reservations.
Sec. 435. Coordination of
program information efforts.
Sec. 436. Expanded grant
authority.
Sec. 437. Access and outreach
pilot projects.
Sec. 438. Consolidated block
grants and administrative funds.
Sec. 439. Assistance for
community food projects.
Sec. 440. Availability of
commodities for the emergency food assistance program.
Sec. 441. Innovative programs
for addressing common community problems.
Sec. 442. Report on use
of electronic benefit transfer systems.
Sec. 443. Vitamin and mineral
supplements.
Subtitle B--Miscellaneous Provisions
Sec. 451. Reauthorization
of commodity programs.
Sec. 452. Partial restoration
of benefits to legal immigrants.
Sec. 453. Commodities for
school lunch programs.
Sec. 454. Eligibility for
free and reduced price meals.
Sec. 455. Eligibility for
assistance under the special supplemental nutrition program for women,
infants, and children.
Sec. 456. Seniors farmers'
market nutrition program.
Sec. 457. Fruit and vegetable
pilot program.
Sec. 458. Congressional
Hunger Fellows Program.
Sec. 459. Nutrition information
and awareness pilot program.
Sec. 460. 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. Effective date.
TITLE VI--RURAL DEVELOPMENT
Subtitle A--Empowerment of Rural
America
Sec. 601. National Rural
Cooperative and Business Equity Fund.
Sec. 602. Rural business
investment program.
Sec. 603. Full funding of
pending rural development loan and grant applications.
Sec. 604. Rural Endowment
Program.
Sec. 605. Enhancement of
access to broadband service in rural areas.
Sec. 606. Value-added agricultural
product market development grants.
Sec. 607. National Rural
Development Information Clearinghouse.
Subtitle B--National Rural Development
Partnership
Sec. 612. National Rural
Development Partnership.
Subtitle C--Consolidated Farm
and Rural Development Act
Sec. 621. Water or waste
disposal grants.
Sec. 622. Rural business
opportunity grants.
Sec. 623. Rural water and
wastewater circuit rider program.
Sec. 624. Multijurisdictional
regional planning organizations.
Sec. 625. Certified nonprofit
organizations sharing expertise.
Sec. 626. Loan guarantees
for certain rural development loans.
Sec. 627. Rural firefighters
and emergency personnel grant program.
Sec. 628. Emergency community
water assistance grant program.
Sec. 629. Water and waste
facility grants for Native American tribes.
Sec. 630. Water systems
for rural and native villages in Alaska.
Sec. 631. Rural cooperative
development grants.
Sec. 632. Grants to broadcasting
systems.
Sec. 633. Business and industry
loan modifications.
Sec. 634. Value-added intermediary
relending program.
Sec. 635. Use of rural development
loans and grants for other purposes.
Sec. 636. Simplified application
forms for loan guarantees.
Sec. 637. Definition of
rural and rural area.
Sec. 638. Rural entrepreneurs
and microenterprise assistance program.
Sec. 640. Children's day
care facilities.
Sec. 641. Rural telework.
Sec. 642. Historic barn
preservation.
Sec. 643. Grants for emergency
weather radio transmitters.
Sec. 644. Bioenergy and
biochemical projects.
Sec. 645. Delta Regional
Authority.
Sec. 646. SEARCH grants
for small communities.
Sec. 647. Northern Great
Plains Regional Authority.
Subtitle D--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 651. Alternative Agricultural
Research and Commercialization Corporation.
Sec. 652. Telemedicine and
distance learning services in rural areas.
Subtitle E--Rural Electrification
Act of 1936
Sec. 661. Bioenergy and
biochemical projects.
Sec. 662. Guarantees for
bonds and notes issued for electrification or telephone purposes.
Sec. 663. Expansion of 911
access.
TITLE VII--AGRICULTURAL RESEARCH,
EDUCATION, AND EXTENSION AND RELATED MATTERS
Subtitle A--National Agricultural
Research, Extension, and Teaching Policy Act of 1977
Sec. 702. National Agricultural
Research, Extension, Education, and Economics Advisory Board.
Sec. 703. Grants and fellowships
for food and agricultural sciences education.
Sec. 704. Competitive research
facilities grant program.
Sec. 705. Grants for research
on the production and marketing of alcohols and industrial hydrocarbons
from agricultural commodities and forest products.
Sec. 706. Policy research
centers.
Sec. 707. Human nutrition
intervention and health promotion research program.
Sec. 708. Pilot research
program to combine medical and agricultural research.
Sec. 709. Nutrition education
program.
Sec. 710. Animal health
and disease research programs.
Sec. 711. Research on national
or regional problems.
Sec. 712. Education grants
programs for Hispanic-serving institutions.
Sec. 713. Competitive grants
for international agricultural science and education programs.
Sec. 714. Indirect costs.
Sec. 715. Research equipment
grants.
Sec. 716. Agricultural research
programs.
Sec. 717. Extension education.
Sec. 718. Availability of
competitive grant funds.
Sec. 719. Joint requests
for proposals.
Sec. 720. Supplemental and
alternative crops.
Sec. 722. Rangeland research.
Sec. 723. Biosecurity planning
and response programs.
Subtitle B--Food, Agriculture,
Conservation, and Trade Act of 1990
Sec. 731. National genetic
resources program.
Sec. 732. Biotechnology
risk assessment research.
Sec. 733. High-priority
research and extension initiatives.
Sec. 734. Nutrient management
research and extension initiative.
Sec. 735. Organic agriculture
research and extension initiative.
Sec. 736. Agricultural telecommunications
program.
Sec. 737. Assistive technology
program for farmers with disabilities.
Subtitle C--Agricultural Research,
Extension, and Education Reform Act of 1998
Sec. 741. Initiative for
Future Agriculture and Food Systems.
Sec. 742. Partnerships for
high-value agricultural product quality research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson
Initiative for Crop Diversification.
Sec. 746. Integrated research,
education, and extension competitive grants program.
Sec. 747. Support for research
regarding diseases of wheat and barley caused by fusarium graminearum.
Sec. 748. Office of Pest
Management Policy.
Sec. 749. Senior Scientific
Research Service.
Subtitle D--Land-Grant Funding
Chapter 1--1862 Institutions
Sec. 752. Reporting of technology
transfer activities.
Sec. 753. Compliance with
multistate and integration requirements.
Chapter 2--1994 Institutions
Sec. 754. Extension at 1994
institutions.
Sec. 755. Equity in Educational
Land-Grant Status Act of 1994.
Sec. 756. Eligibility for
integrated grants program.
Chapter 3--1890 Institutions
Sec. 757. Authorization
percentages for research and extension formula funds.
Sec. 759. Reporting of technology
transfer activities.
Sec. 760. Grants to upgrade
agricultural and food sciences facilities at 1890 land-grant colleges,
including Tuskegee University.
Sec. 761. National research
and training centennial centers.
Sec. 762. Matching funds
requirement for research and extension activities.
Chapter 4--Land-grant Institutions
SUBCHAPTER A--GENERAL
Sec. 771. Priority-setting
process.
Sec. 772. Termination of
certain schedule A appointments.
SUBCHAPTER B--LAND-GRANT INSTITUTIONS
IN INSULAR AREAS
Sec. 775. Distance education
grants program for insular area land-grant institutions.
Sec. 776. Matching requirements
for research and extension formula funds for insular area land-grant institutions.
Subtitle E--Other Laws
Sec. 781. Critical agricultural
materials.
Sec. 782. Research facilities.
Sec. 783. Federal agricultural
research facilities.
Sec. 784. Competitive, special,
and facilities research grants.
Sec. 785. Risk management
education for beginning farmers and ranchers.
Subtitle F--New Authorities
Sec. 792. Regulatory and
inspection research.
Sec. 793. Emergency research
transfer authority.
Sec. 794. Review of Agricultural
Research Service.
Sec. 795. Technology transfer
for rural development.
Sec. 796. Beginning farmer
and rancher development program.
Sec. 797. Sense of Congress
regarding doubling of funding for agricultural research.
Sec. 798. Rural policy research.
Sec. 798A. Priority for
farmers and ranchers participating in conservation programs.
Sec. 798B. Organic production
and market data initiatives.
Sec. 798C. Organically produced
product research and education.
Sec. 798D. International
organic research collaboration.
TITLE VIII--FORESTRY
Sec. 801. Office of International
Forestry.
Sec. 802. McIntire-Stennis
cooperative forestry research program.
Sec. 803. Sustainable forestry
outreach initiative; renewable resources extension activities.
Sec. 804. Forestry incentives
program.
Sec. 805. Sustainable forestry
cooperative program.
Sec. 806. Sustainable forest
management program.
Sec. 807. Forest fire research
centers.
Sec. 808. Wildfire prevention
and hazardous fuel purchase program.
Sec. 809. Enhanced community
fire protection.
Sec. 810. Watershed forestry
assistance program.
Sec. 811. General provisions.
Sec. 812. State forest stewardship
coordinating committees.
TITLE IX--ENERGY
Sec. 902. Consolidated Farm
and Rural Development Act.
Sec. 903. Biomass Research
and Development Act of 2000.
Sec. 904. Rural Electrification
Act of 1936.
Sec. 905. Carbon sequestration
demonstration program.
Sec. 906. Sense of Congress
concerning national renewable fuels standard.
Sec. 907. Sense of Congress
concerning the bioenergy program of the Department of Agriculture.
TITLE X--MISCELLANEOUS
Subtitle A--Country of Origin
and Quality Grade Labeling
Sec. 1001. Country of origin
labeling.
Sec. 1002. Quality grade
labeling of imported meat and meat food products.
Subtitle B--Crop Insurance
Sec. 1011. Continuous coverage.
Sec. 1012. Quality loss
adjustment procedures.
Sec. 1013. Conservation
requirements.
Subtitle C--General Provisions
Sec. 1021. Unlawful stockyard
practices involving nonambulatory livestock.
Sec. 1022. Cotton classification
services.
Sec. 1023. Protection for
purchasers of farm products.
Sec. 1024. Penalties and
foreign commerce provisions of the Animal Welfare Act.
Sec. 1025. Prohibition on
interstate movement of animals for animal fighting.
Sec. 1026. Outreach and
assistance for socially disadvantaged farmers and ranchers.
Sec. 1027. Public disclosure
requirements for county committee elections.
Sec. 1028. Pseudorabies
eradication program.
Sec. 1029. Tree assistance
program.
Sec. 1030. National organic
certification cost-share program.
Sec. 1031. Food Safety Commission.
Sec. 1032. Humane methods
of animal slaughter.
Subtitle D--Administration
Sec. 1042. Effect of amendments.
TITLE I--COMMODITY PROGRAMS
SEC. 101. DEFINITIONS.
Section 102 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202) is amended
to read as follows:
`SEC. 102. DEFINITIONS.
`(1) AGRICULTURAL ACT OF
1949- Except in section 171, 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(b)(1).
`(2) CONSIDERED PLANTED-
The term `considered planted' means any acreage on the farm that--
`(A) producers on a farm
were prevented from planting to a crop because of drought, flood, or other
natural disaster, or other condition beyond the control of the eligible
owners and producers on the farm, as determined by the Secretary; and
`(B) was not planted to
another contract commodity (other than a contract commodity produced under
an established practice of double cropping).
`(3) CONTRACT- The term
`contract' means a contract entered into under subtitle B.
`(4) CONTRACT ACREAGE- The
term `contract acreage' means the contract acreage determined under section
111(f).
`(5) CONTRACT COMMODITY-
The term `contract commodity' means wheat, corn, grain sorghum, barley,
oats, upland cotton, rice, and oilseeds.
`(6) CONTRACT PAYMENT- The
term `contract payment' means a payment made under subtitle B pursuant
to a contract.
`(7) DEPARTMENT- The term
`Department' means the Department of Agriculture.
`(8) EXTRA LONG STAPLE COTTON-
The term `extra long staple cotton' means cotton that--
`(A) is produced from pure
strain varieties of the Barbadense species or any hybrid thereof, or other
similar types of extra long staple cotton, designated by the Secretary,
having characteristics needed for various end uses for which United States
upland cotton is not suitable and grown in irrigated cotton-growing regions
of the United States designated by the Secretary or other areas designated
by the Secretary as suitable for the production of the varieties or types;
and
`(B) is ginned on a roller-type
gin or, if authorized by the Secretary, ginned on another type gin for
experimental purposes.
`(9) LOAN COMMODITY- The
term `loan commodity' means wheat, corn, grain sorghum, barley, oats, upland
cotton, extra long staple cotton, rice, oilseeds, wool, mohair, honey,
dry peas, lentils, and chickpeas.
`(10) OILSEED- The term
`oilseed' means a crop of soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, and, if designated by the Secretary, other oilseeds.
`(11) PAYMENT YIELD- The
term `payment yield' means a payment yield determined under section 111(g).
`(A) IN GENERAL- The term
`producer' means an owner, operator, landlord, tenant, or sharecropper
that--
`(i) shares in the risk
of producing a crop; and
`(ii) is entitled to share
in the crop available for marketing from the farm, or would have shared
had the crop been produced.
`(B) HYBRID SEED- 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.
`(13) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(14) STATE- The term `State'
means--
`(B) the District of Columbia;
`(C) the Commonwealth of
Puerto Rico; and
`(D) any other territory
or possession of the United States.
`(15) UNITED STATES- The
term `United States', when used in a geographical sense, means all of the
States.'.
Subtitle A--Direct and Counter-Cyclical
Payments
SEC. 111. DIRECT AND COUNTER-CYCLICAL
PAYMENTS.
Sections 111 through 114
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7211 through 7214) are amended to read as follows:
`SEC. 111. AUTHORIZATION FOR
CONTRACTS.
`(a) IN GENERAL- The Secretary
shall offer to enter into a contract with an eligible owner or producer
described in subsection (b) on a farm containing eligible cropland under
which the eligible owner or producer will receive direct payments and counter-cyclical
payments under sections 113 and 114, respectively.
`(b) ELIGIBLE OWNERS AND
PRODUCERS-
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), an owner or producer on a farm shall be eligible
to enter into a contract.
`(A) SHARE-RENT TENANTS-
A producer on eligible cropland that is a tenant with a share-rent lease
of the eligible cropland, regardless of the length of the lease, shall
be eligible to enter into a contract, if the owner of the eligible cropland
enters into the same contract.
`(i) CONTRACTS WITH LONG-TERM
LEASES- A producer on eligible cropland that cash rents the eligible cropland
under a lease expiring on or after the termination of the contract shall
be eligible to enter into a contract.
`(ii) CONTRACTS WITH SHORT-TERM
LEASES-
`(I) IN GENERAL- A producer
that cash rents the eligible cropland under a lease expiring before the
termination of the contract shall be eligible to enter into a contract.
`(II) OWNER'S CONTRACT INTEREST-
The owner of the eligible cropland may also enter into the same contract.
`(III) CONSENT OF OWNER-
If the producer elects to enroll less than 100 percent of the eligible
cropland in the contract, the consent of the owner shall be required for
a valid contract.
`(A) IN GENERAL- An owner
of eligible cropland that cash rents the eligible cropland under a lease
term that expires before the end of 2006 crop year shall be eligible to
enter into a contract if the tenant declines to enter into the contract.
`(B) CONTRACT PAYMENTS-
In the case of an owner covered by subparagraph (A), the Secretary shall
not make contract payments to the owner under the contract until the lease
held by the tenant terminates.
`(c) COMPLIANCE WITH CERTAIN
REQUIREMENTS- Under the terms of a contract, the owner or producer shall
agree, in exchange for annual contract payments--
`(1) to comply with applicable
highly erodible land conservation requirements under subtitle B of title
XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
`(2) to comply with applicable
wetland conservation requirements under subtitle C of title XII of that
Act (16 U.S.C. 3821 et seq.);
`(3) to comply with the
planting flexibility requirements of section 118; and
`(4) to use a quantity of
land on the farm equal to the contract acreage, for an agricultural or
conserving use or related activity, and not for a nonagricultural commercial
or industrial use, as determined by the Secretary.
`(d) PROTECTION OF INTERESTS
OF CERTAIN PRODUCERS-
`(1) TENANTS AND SHARECROPPERS-
In carrying out this subtitle, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
`(2) SHARING OF PAYMENTS-
The Secretary shall provide for the sharing of contract payments among
the eligible producers on a farm on a fair and equitable basis.
`(1) IN GENERAL- Land shall
be considered to be cropland eligible for coverage under a contract only
if the land--
`(A) has with respect to
a contract commodity--
`(i) contract acreage attributable
to the land; and
`(ii) a payment yield; or
`(B) was subject to a conservation
reserve contract under section 1231 of the Food Security Act of 1985 (16
U.S.C. 3831) with a term that expired, or was voluntarily terminated, on
or after the date of enactment of this paragraph.
`(2) QUANTITY OF ELIGIBLE
CROPLAND COVERED BY CONTRACT- An eligible owner or producer may enroll
as contract acreage under this subtitle all or a portion of the eligible
cropland on the farm.
`(3) VOLUNTARY REDUCTION
IN CONTRACT ACREAGE- An eligible owner or producer that enters into a contract
may subsequently reduce the quantity of contract acreage covered by the
contract.
`(1) IN GENERAL- Subject
to subsection (h), for the purpose of making direct payments and counter-cyclical
payments to eligible owners and producers on a farm, the Secretary shall
provide the eligible owners and producers on the farm with an opportunity
to elect 1 of the following methods as the method by which the contract
acreages for the 2002 through 2006 crops of all contract commodities for
a farm are determined:
`(A) The 4-year average
of acreage planted or considered planted to a contract commodity for harvest,
grazing, haying, silage, or other similar purposes during each of the 1998
through 2001 crop years.
`(i) the contract acreage
(as defined in section 102 (as in effect before the amendment made by section
101 of the Agriculture, Conservation, and Rural Enhancement Act of 2001))
that would have been used by the Secretary to calculate the payment for
fiscal year 2002 under such section 102 for the contract commodity on the
farm; and
`(ii) the 4-year average
determined under subparagraph (A) for each oilseed produced on the farm.
`(C) In the case of land
described in section 112(a)(3), land with eligible base, as determined
by the Secretary.
`(2) PREVENTION OF EXCESS
CONTRACT ACREAGES-
`(A) REQUIRED REDUCTION-
If the total of the contract acreages for a farm, together with the acreage
described in subparagraph (C), exceeds the actual cropland acreage of the
farm, the Secretary shall reduce the quantity of contract acreages for
1 or more contract commodities for the farm or peanut acres as necessary
so that the total of the contract acreages and acreage described in subparagraph
(C) does not exceed the actual cropland acreage of the farm.
`(B) SELECTION OF ACRES-
The Secretary shall give the eligible owners and producers on the farm
the opportunity to select the contract acreages or peanut acres against
which the reduction will be made.
`(C) OTHER ACREAGE- For
purposes of subparagraph (A), the Secretary shall include--
`(i) any peanut acres for
the farm under chapter 3 of subtitle D;
`(ii) any acreage on the
farm enrolled in the conservation reserve program or wetlands reserve program
under chapter 1 of subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3830 et seq.); and
`(iii) any other acreage
on the farm enrolled in a voluntary Federal conservation program under
which production of any agricultural commodity is prohibited.
`(D) DOUBLE-CROPPED ACREAGE-
In applying subparagraph (A), the Secretary shall take into account additional
acreage as a result of an established double-cropping history on a farm,
as determined by the Secretary.
`(1) IN GENERAL- Subject
to paragraph (2) and subsection (h), an eligible owner or producer that
has entered into a contract under this subtitle may make a 1-time election
to have the payment yield for a payment for each of the 2002 through 2006
crops of all contract commodities for a farm be equal to--
`(A) an amount that is the
greater of--
`(i) the average of the
yield per harvested acre for the crop of the contract commodity for the
farm for the 1998 through 2001 crop years, excluding--
`(I) any crop year for which
the producers on the farm did not plant the contract commodity; and
`(II) at the option of the
producers on the farm, 1 additional crop year; or
`(ii) the farm program payment
yield described in subparagraph (B); or
`(B) the farm program payment
yield established for the 1995 crop of a contract commodity under section
505 of the Agricultural Act of 1949 (7 U.S.C. 1465), as adjusted by the
Secretary to account for any additional yield payments made with respect
to that crop under section 505(b)(2) of that Act.
`(2) ASSIGNED YIELDS- In
the case of a farm for which yield records are unavailable for a contract
commodity (including land of a farm that is devoted to an oilseed under
a former conservation reserve contract described in section 112(a)(3)),
the Secretary shall establish an appropriate payment yield for the contract
commodity on the farm taking in consideration the payment yields applicable
to the contract commodity under paragraph (1) for similar farms in the
area, taking into consideration the yield election for the farm under subsection
(h).
`(h) ELIGIBLE OWNER AND
PRODUCER ELECTION OPTIONS-
`(1) IN GENERAL- In making
elections under subsections (f) and (g), eligible owners and producers
on a farm shall elect to have--
`(A)(i) contract acreage
for the farm determined under subsection (f)(1)(A); and
`(ii) payment yields determined
under subsection (g)(1)(A); or
`(B)(i) contract acreage
for the farm determined under subsection (f)(1)(B); and
`(ii) payment yields determined
under--
`(I) in the case of contract
commodities other than oilseeds, subsection (g)(1)(B); and
`(II) in the case of oilseeds,
subsection (g)(1)(A).
`(2) SINGLE ELECTION; TIME
FOR ELECTION-
`(A) SINGLE ELECTION- The
eligible owners and producers on a farm shall have 1 opportunity to make
the election described in paragraph (1).
`(B) TIME FOR ELECTION-
Subject to section 112(a)(3), not later than 180 days after the date of
enactment of this subsection, the eligible owners and producers on a farm
shall notify the Secretary of the election made by the eligible owners
and producers on the farm under paragraph (1).
`(3) EFFECT OF FAILURE TO
MAKE ELECTION- If the producers on a farm fail to make the election under
paragraph (1), or fail to timely notify the Secretary of the selected option
as required by paragraph (2), the eligible owners and producers on the
farm shall be deemed to have made the election described in paragraph (1)(B)
for the purpose of determining the contract acreages for all contract commodities
on the farm.
`(4) APPLICATION OF ELECTION
TO ALL CONTRACT COMMODITIES- The election made under paragraph (1) or deemed
to be made under paragraph (3) with respect to a farm shall apply to all
of the contract commodities produced on the farm.
`SEC. 112. ELEMENTS OF CONTRACTS.
`(a) TIME FOR CONTRACTING-
`(1) COMMENCEMENT- To the
extent practicable, the Secretary shall commence entering into contracts
not later than 45 days after the date of enactment of the Agriculture,
Conservation, and Rural Enhancement Act of 2001.
`(2) DEADLINE- Except as
provided in paragraph (3), the Secretary may not enter into a contract
after the date that is 180 days after the date of enactment of that Act.
`(3) CONSERVATION RESERVE
LAND-
`(A) IN GENERAL- At the
beginning of each fiscal year, the Secretary shall allow an eligible owner
or producer on a farm covered by a conservation reserve contract entered
into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
that terminated after the date specified in paragraph (2) to enter into
or expand a contract to cover the eligible cropland of the farm that was
subject to the former conservation reserve contract.
`(B) ELECTION- For the fiscal
year and crop year for which a contract acreage adjustment under subparagraph
(A) is first made, the eligible owners and producers on the farm shall
elect to receive--
`(i) direct payments and
counter-cyclical payments under sections 113 and 114, respectively, with
respect to the acreage added to the farm under this paragraph; or
`(ii) a prorated payment
under the conservation reserve contract.
`(b) DURATION OF CONTRACT-
`(1) BEGINNING DATE- The
term of a contract shall begin with--
`(A) the 2002 crop of a
contract commodity; or
`(B) in the case of acreage
that was subject to a conservation reserve contract described in subsection
(a)(3), the date the contract was entered into or expanded to cover the
acreage.
`(2) ENDING DATE- Subject
to sections 116 and 117, the term of a contract shall extend through the
2006 crop, unless earlier terminated by the eligible owners or producers
on a farm.
`SEC. 113. DIRECT PAYMENTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 fiscal years, the Secretary shall make direct
payments available to eligible owners and producers on a farm that have
entered into a contract to receive payments under this section.
`(b) PAYMENT AMOUNT- The
amount of a direct payment to be paid to the eligible owners and producers
on a farm for a contract commodity for a fiscal year under this section
shall be obtained by multiplying--
`(1) the payment rate for
the contract commodity specified in subsection (c);
`(2) the contract acreage
attributable to the contract commodity for the farm; and
`(3) the payment yield for
the contract commodity for the farm.
`(c) PAYMENT RATE- The payment
rates used to make direct payments with respect to contract commodities
for a fiscal year under this section are as follows:
`(1) WHEAT- In the case
of wheat:
`(A) For each of fiscal
years 2002 and 2003, $0.450 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.225 per bushel.
`(C) For fiscal year 2006,
$0.113 per bushel.
`(2) CORN- In the case of
corn:
`(A) For each of fiscal
years 2002 and 2003, $0.270 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.135 per bushel.
`(C) For fiscal year 2006,
$0.068 per bushel.
`(3) GRAIN SORGHUM- In the
case of grain sorghum:
`(A) For the 2002 fiscal
year, $0.310 per bushel.
`(B) For the 2003 fiscal
year, $0.270 per bushel.
`(C) For each of fiscal
years 2004 and 2005, $0.135 per bushel.
`(D) For fiscal year 2006,
$0.068 per bushel.
`(4) BARLEY- In the case
of barley:
`(A) For each of fiscal
years 2002 and 2003, $0.200 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.100 per bushel.
`(C) For fiscal year 2006,
$0.050 per bushel.
`(5) OATS- In the case of
oats:
`(A) For each of fiscal
years 2002 and 2003, $0.050 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.025 per bushel.
`(C) For fiscal year 2006,
$0.013 per bushel.
`(6) UPLAND COTTON- In the
case of upland cotton:
`(A) For each of fiscal
years 2002 and 2003, $0.130 per pound.
`(B) For each of fiscal
years 2004 and 2005, $0.065 per pound.
`(C) For fiscal year 2006,
$0.0325 per pound.
`(7) RICE- In the case of
rice:
`(A) For each of fiscal
years 2002 and 2003, $2.450 per hundredweight.
`(B) For each of fiscal
years 2004 and 2005, $1.225 per hundredweight.
`(C) For fiscal year 2006,
$0.6125 per hundredweight.
`(8) SOYBEANS- In the case
of soybeans:
`(A) For each of fiscal
years 2002 and 2003, $0.550 per bushel.
`(B) For each of fiscal
years 2004 and 2005, $0.275 per bushel.
`(C) For fiscal year 2006,
$0.138 per bushel.
`(9) OILSEEDS (OTHER THAN
SOYBEANS)- In the case of oilseeds (other than soybeans):
`(A) For each of fiscal
years 2002 and 2003, $0.010 per pound.
`(B) For each of fiscal
years 2004 and 2005, $0.005 per pound.
`(C) For fiscal year 2006,
$0.0025 per pound.
`(1) INITIAL PAYMENT- At
the option of the eligible owners and producers on a farm, the Secretary
shall pay 50 percent of the direct payment for a crop of a contract commodity
for the eligible owners and producers on the farm on or after December
1 of the fiscal year, as determined by the Secretary.
`(2) FINAL PAYMENT- The
Secretary shall pay the final amount of the direct payment that is payable
to the eligible owners and producers on a farm for a contract commodity
under subsection (a) (less the amount of any initial payment made to the
producers on the farm of the contract commodity under paragraph (1)) not
later than September 30 of the fiscal year, as determined by the Secretary.
`SEC. 114. COUNTER-CYCLICAL
PAYMENTS.
`(a) IN GENERAL- For each
of the 2002 through 2006 crop years, the Secretary shall make counter-cyclical
payments to eligible owners and producers on a farm of each contract commodity
that have entered into a contract to receive payments under this section.
`(b) PAYMENT AMOUNT- The
amount of the payments made to eligible owners and producers on a farm
for a crop of a contract commodity under this section shall equal the amount
obtained by multiplying--
`(1) the payment rate for
the contract commodity specified in subsection (c);
`(2) the contract acreage
attributable to the contract commodity for the farm; and
`(3) the payment yield for
the contract commodity for the farm.
`(1) IN GENERAL- The payment
rate for a crop of a contract commodity under subsection (b)(1) shall equal
the difference between--
`(A) the income protection
price for the contract commodity established under paragraph (2); and
`(I) the average price of
the contract commodity during the first 5 months of the marketing year
of the contract commodity, as determined by the Secretary; and
`(II) the loan rate for
the crop of the contract commodity under section 132; and
`(ii) the direct payment
for the contract commodity under section 113 for the fiscal year that precedes
the date of a payment under this section.
`(2) INCOME PROTECTION PRICES-
The income protection prices for contract commodities under paragraph (1)(A)
are as follows:
`(A) Wheat, $3.45 per bushel.
`(B) Corn, $2.35 per bushel.
`(C) Grain sorghum, $2.35
per bushel.
`(D) Barley, $2.20 per bushel.
`(E) Oats, $1.55 per bushel.
`(F) Upland cotton, $0.680
per pound.
`(G) Rice, $9.30 per hundredweight.
`(H) Soybeans, $5.75 per
bushel.
`(I) Oilseeds (other than
soybeans), $0.105 per pound.
`(d) TIME FOR PAYMENT- The
Secretary shall make counter-cyclical payments for each of the 2002 through
2006 crop years not later than 190 days after the beginning of marketing
year for the crop of the contract commodity.'.
SEC. 112. VIOLATIONS OF CONTRACTS.
Section 116 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7216) is amended--
(1) in the first sentence
of subsection (a)--
(A) by striking `subsection
(b)' and inserting `subsections (b) and (e)'; and
(B) by striking `section
111(a)' and inserting `this subtitle';
(2) in subsection (b), by
striking `If' and inserting `Except as provided in subsection (e), if';
and
(3) by adding at the end
the following:
`(e) PLANTING FLEXIBILITY-
In the case of a first violation of section 118(b) by an eligible owner
or producer that has entered into a contract and that acted in good faith,
in lieu of terminating the contract under subsection (a), the Secretary
shall require a refund or reduce a future contract payment under subsection
(b) in an amount that does not exceed twice the amount otherwise payable
under the contract on the number of acres involved in the violation.'.
SEC. 113. PLANTING FLEXIBILITY.
Section 118(b) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7218(b)) is amended--
(1) by striking paragraph
(1) and inserting the following:
`(1) LIMITATIONS- The planting
of the following agricultural commodities shall be prohibited on contract
acreage:
`(B) Vegetables (other than
lentils, mung beans, dry peas, and chickpeas).
`(C) In the case of the
2003 and subsequent crops of an agricultural commodity, wild rice.'; and
(2) in paragraph (2)(C),
by striking `1991 through 1995' and inserting `1996 through 2001'.
Subtitle B--Nonrecourse Marketing
Assistance Loans and Loan Deficiency Payments
SEC. 121. NONRECOURSE MARKETING
ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS.
(a) IN GENERAL- Sections
131(a) and 137 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7231(a), 7237) are amended by striking `2002' each place
it appears and inserting `2006'.
(b) UPLAND COTTON- Sections
134(e)(1), 136, and 136A(a) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7234(e)(1), 7236, 7236a(a)) are amended by
striking `2003' each place it appears and inserting `2007'.
SEC. 122. ELIGIBLE PRODUCTION.
Section 131 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231) is amended
by striking subsection (b) and inserting the following:
`(b) ELIGIBLE PRODUCTION-
The producers on a farm shall be eligible for a marketing loan under subsection
(a) for any quantity of a loan commodity produced on the farm.'.
SEC. 123. LOAN RATES.
(a) IN GENERAL- Section
132 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7232) is amended to read as follows:
`SEC. 132. LOAN RATES.
`(a) IN GENERAL- Subject
to subsection (b), the loan rate for a marketing assistance loan under
section 131 for a loan commodity shall be--
`(1) in the case of wheat,
$3.00 per bushel;
`(2) in the case of corn,
$2.08 per bushel;
`(3) in the case of grain
sorghum, $2.08 per bushel;
`(4) in the case of barley,
$2.00 per bushel;
`(5) in the case of oats,
$1.50 per bushel;
`(6) in the case of upland
cotton, $0.55 per pound;
`(7) in the case of extra
long staple cotton, $0.7965 per pound;
`(8) in the case of rice,
$6.85 per hundredweight;
`(9) in the case of soybeans,
$5.20 per bushel;
`(10) in the case of oilseeds
(other than soybeans), $0.095 per pound;
`(11) in the case of graded
wool, $1.00 per pound;
`(12) in the case of nongraded
wool, $.40 per pound;
`(13) in the case of mohair,
$2.00 per pound;
`(14) in the case of honey,
$.60 per pound;
`(15) in the case of dry
peas, $6.78 per hundredweight;
`(16) in the case of lentils,
$12.79 per hundredweight;
`(17) in the case of large
chickpeas, $17.44 per hundredweight; and
`(18) in the case of small
chickpeas, $8.10 per hundredweight.
`(1) IN GENERAL- The Secretary
may make appropriate adjustments in the loan rates for any loan commodity
for differences in grade, type, quality, location, and other factors.
`(2) MANNER- The adjustments
under this subsection shall, to the maximum extent practicable, be made
in such manner that the average loan rate for the loan commodity will,
on the basis of the anticipated incidence of the factors described in paragraph
(1), be equal to the loan rate provided under this section.'.
(b) CONFORMING AMENDMENT-
Section 162 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7282) is repealed.
SEC. 124. TERM OF LOANS.
Section 133 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7233) is amended
to read as follows:
`SEC. 133. TERM OF LOANS.
`In the case of each loan
commodity, a marketing loan under section 131 shall have a term of 9 months
beginning on the first day of the first month after the month in which
the loan is made.'.
SEC. 125. REPAYMENT OF LOANS.
Section 134(a) of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7234(a)) is amended--
(1) by striking `wheat,
corn, grain sorghum, barley, oats, and oilseeds' and inserting `a loan
commodity (other than upland cotton, rice, and extra long staple cotton)';
and
(A) in subparagraph (C),
by striking `and' at the end;
(B) in subparagraph (D),
by striking the period and inserting `; and'; and
(C) by adding at the end
the following:
`(E) minimize discrepancies
in marketing loan benefits across State boundaries and across county boundaries.'.
SEC. 126. LOAN DEFICIENCY PAYMENTS.
Section 135 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7235) is amended--
(1) by striking subsection
(a) and inserting the following:
`(a) IN GENERAL- The Secretary
may make loan deficiency payments available to producers on a farm that,
although eligible to obtain a marketing assistance loan under section 131
with respect to a loan commodity, agree to forgo obtaining the loan for
the loan commodity in return for payments under this section.'; and
(2) by striking subsections
(e) and (f) and inserting the following:
`(e) BENEFICIAL INTEREST-
`(1) IN GENERAL- A producer
shall be eligible for a payment for a loan commodity under this section
only if the producer has a beneficial interest in the loan commodity, as
determined by the Secretary.
`(2) APPLICATION- The Secretary
shall make a payment under this section to the producers on a farm with
respect to a quantity of a loan commodity as of the earlier of--
`(A) the date on which the
producers on the farm marketed or otherwise lost beneficial interest in
the loan commodity, as determined by the Secretary; or
`(B) the date the producers
on the farm request the payment.'.
Subtitle C--Other Commodities
CHAPTER 1--DAIRY
SEC. 131. MILK PRICE SUPPORT
PROGRAM.
(a) IN GENERAL- Section
141 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7251) is amended--
(1) in subsections (b)(4)
and (h), by striking `2001' each place it appears and inserting `2006';
and
(2) in the first sentence
of subsection (d)(1), by striking `may' and inserting `shall'.
(b) EFFECTIVE DATE- The
amendments made by subsection (a) take effect on January 1, 2002.
SEC. 132. NATIONAL DAIRY PROGRAM.
Section 142 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7252) is amended
to read as follows:
`SEC. 142. NATIONAL DAIRY PROGRAM.
`(a) PURPOSE- The purpose
of this section is to establish a program that will stabilize the production,
price, and marketing of milk and other dairy products in the United States
which is critical to the welfare of the United States.
`(b) DEFINITIONS- In this
section:
`(1) CLASS I, II, III, AND
IV MILK- The terms `Class I milk', `Class II milk', `Class III milk', and
`Class IV milk' mean milk (including milk components) classified as Class
I, II, III, or IV milk, respectively, under a Federal milk marketing order.
`(2) ELIGIBLE PRODUCTION-
The term `eligible production' means, with respect to each producer that
operates a dairy farming operation, the lesser of--
`(A) the quantity of milk
sold by the dairy farming operation under any Federal milk marketing order
during the applicable month; or
`(B) 500,000 pounds of milk
per month.
`(3) FEDERAL MILK MARKETING
ORDER- The term `Federal milk marketing order' means an order issued under
section 8c of the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted
with amendments by the Agricultural Marketing Agreement Act of 1937.
`(4) MARKETING AREA- The
term `marketing area' means a marketing area defined under a Federal milk
marketing order.
`(5) PRODUCER- The term
`producer' means an individual or entity that directly or indirectly (as
determined by the Secretary)--
`(A) shares in the risk
of producing milk; and
`(B) makes contributions
(including land, labor, management, equipment, or capital) to the dairy
farming operation of the individual or entity that are at least commensurate
with the individual or entity's share of the proceeds of the operation.
`(6) SECRETARY- The term
`Secretary' means the Secretary of Agriculture.
`(c) MINIMUM PRICE- Effective
beginning January 1, 2002, the Secretary shall amend Federal milk marketing
orders to establish a minimum price per hundredweight for Class I milk
that is not less than the sum of--
`(1) the adjusted Class
I milk differential specified in section 1000.52 of title 7, Code of Federal
Regulations (or a successor regulation); and
`(A) the advanced Class
III milk price (as determined under section 1000.50(q)(4)(i) of title 7,
Code of Federal Regulations (or a successor regulation));
`(B) the advanced Class
IV milk price (as determined under section 1000.50(q)(4)(ii) of title 7,
Code of Federal Regulations (or a successor regulation)); or
`(d) NATIONAL POOLING- Notwithstanding
any other provision of law, the Secretary--
`(1) shall provide for the
uniform national pooling among producers of milk under all Federal milk
marketing orders of all funds that are equal to the difference between--
`(A) the price of Class
I milk as determined under this section; and
`(B) the price of Class
I milk that would be determined if this section were not in effect;
`(2) subject to subsection
(e), shall provide for the distribution of amounts described in paragraph
(1) to all producers covered by Federal milk marketing orders, based on
eligible production under Federal milk marketing orders, at a uniform rate
per hundredweight; and
`(3) may make such modifications
in the operation of Federal milk marketing orders as are necessary to carry
out this section.
`(e) ADMINISTRATIVE AND
FOOD ASSISTANCE COSTS- The Secretary shall use amounts described in subsection
(d)(1) to provide compensation to--
`(A) administrative costs
incurred by the Secretary in carrying out subsections (c) and (d); and
`(B) the increased costs
incurred by the Secretary of any milk and milk products provided under
any food assistance program administered by the Secretary that results
from carrying out subsections (c) and (d);
`(2) each State for the
increased costs incurred by the State of any milk and milk products provided
under the special supplemental nutrition program for women, infants, and
children established by section 17 of the Child Nutrition Act of 1966 (42
U.S.C. 1786) that results from carrying out subsections (c) and (d); and
`(3) the Commodity Credit
Corporation for any additional costs for a fiscal year to carry out section
141 as a result of increased production of milk in a marketing area that
results from carrying out subsections (c) and (d).
`(f) COUNTER-CYCLICAL PAYMENTS
FROM SECRETARY TO PRODUCERS-
`(1) IN GENERAL- Subject
to paragraph (3), if the average price for Class III milk during a month
is less than $14.25 per hundredweight, the Secretary shall use the funds
of the Commodity Credit Corporation in such amounts as may be necessary
to make a payment to each producer for eligible production of milk in an
amount determined by multiplying--
`(A) the payment rate determined
under paragraph (2); by
`(B) the quantity of Class
II, Class III, and Class IV milk produced by the producer during the month,
as determined by the Secretary.
`(2) PAYMENT RATE- The payment
rate for a payment made to a producer for a month under paragraph (1)(A)
shall equal 25 percent of the difference between--
`(A) $14.25 per hundredweight;
and
`(B) the average price for
Class III milk during the month, as determined by the Secretary.
`(3) MAXIMUM AMOUNT OF PAYMENTS-
The total amount of payments made to producers for a fiscal year under
this subsection shall not exceed $300,000,000.'.
SEC. 133. DAIRY EXPORT INCENTIVE
AND DAIRY INDEMNITY PROGRAMS.
(a) DAIRY EXPORT INCENTIVE
PROGRAM- Section 153(a) of the Food Security Act of 1985 (15 U.S.C. 713a-14(a))
is amended by striking `2002' and inserting `2006'.
(b) DAIRY INDEMNITY PROGRAM-
Section 3 of Public Law 90-484 (7 U.S.C. 450l) is amended by striking
`1995' and inserting `2006'.
SEC. 134. FLUID MILK PROMOTION.
(a) DEFINITION OF FLUID
MILK PRODUCT- Section 1999C of the Fluid Milk Promotion Act of 1990 (7
U.S.C. 6402) is amended by striking paragraph (3) and inserting the following:
`(3) FLUID MILK PRODUCT-
The term `fluid milk product' has the meaning given the term in--
`(A) section 1000.15 of
title 7, Code of Federal Regulations, subject to such amendments as may
be made by the Secretary; or
`(B) any successor regulation.'.
(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. 135. DAIRY PRODUCT MANDATORY
REPORTING.
Section 272(1) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1637a(1)) is amended--
(1) by striking `means manufactured
dairy products' and inserting `means--
`(A) manufactured dairy
products';
(2) by striking the period
at the end and inserting `; and'; and
(3) by adding at the end
the following:
`(B) substantially identical
products designated by the Secretary.'.
SEC. 136. FUNDING OF DAIRY PROMOTION
AND RESEARCH PROGRAM.
(a) DEFINITIONS- Section
111 of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4502) is
amended--
(1) in subsection (k), by
striking `and' at the end;
(2) in subsection (l), by
striking the period at the end and inserting a semicolon; and
(3) by adding at the end
the following:
`(m) the term `imported
dairy product' means any dairy product that is imported into the United
States, including a dairy product imported into the United States in the
form of--
`(1) milk, cream, and fresh
and dried dairy products;
`(2) butter and butterfat
mixtures;
`(4) casein and mixtures;
`(n) the term `importer'
means a person that imports an imported dairy product into the United States;
and
`(o) the term `Customs'
means the United States Customs Service.'.
(b) REPRESENTATION OF IMPORTERS
ON BOARD- Section 113(b) of the Dairy Production Stabilization Act of 1983
(7 U.S.C. 4504(b)) is amended--
(1) by inserting `NATIONAL
DAIRY PROMOTION AND RESEARCH BOARD- ' after `(b)';
(2) by designating the first
through ninth sentences as paragraphs (1) through (5) and paragraphs (7)
through (10), respectively, and indenting the paragraphs appropriately;
(3) in paragraph (2) (as
so designated), by striking `Members' and inserting `Except as provided
in paragraph (6), the members'; and
(4) by inserting after paragraph
(5) (as so designated) the following:
`(A) REPRESENTATION- The
Secretary shall appoint not more than 2 members who represent importers
of dairy products and are subject to assessments under the order, to reflect
the proportion of domestic production and imports supplying the United
States market, as determined by the Secretary on the basis of the average
volume of domestic production of dairy products in proportion to the average
volume of imports of dairy products in the United States during the immediately
preceding 3 years.
`(B) ADDITIONAL MEMBERS;
NOMINATIONS- The members appointed under this paragraph--
`(i) shall be in addition
to the total number of members appointed under paragraph (2); and
`(ii) shall be appointed
from nominations submitted by importers under such procedures as the Secretary
determines to be appropriate.'.
(c) IMPORTER ASSESSMENT-
Section 113(g) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4504(g)) is amended--
(1) by inserting `ASSESSMENTS-
' after `(g)';
(2) by designating the first
through fifth sentences as paragraphs (1) through (5), respectively, and
indenting appropriately; and
(3) by adding at the end
the following:
`(A) IN GENERAL- The order
shall provide that each importer of imported dairy products shall pay an
assessment to the Board in the manner prescribed by the order.
`(i) IN GENERAL- The assessment
on imported dairy products shall be--
`(I) paid by the importer
to Customs at the time of the entry of the products into the United States;
and
`(II) remitted by Customs
to the Board.
`(ii) TIME OF ENTRY- For
purposes of this subparagraph, entry of the products into the United States
shall be considered to have occurred when a dairy product is released from
custody of Customs and introduced into the stream of commerce within the
United States.
`(iii) IMPORTERS- For purposes
of this subparagraph, an importer includes--
`(I) a person that holds
title to a dairy product produced outside the United States immediately
on release by Customs; and
`(II) a person that acts
on behalf of other persons, as an agent, broker, or consignee, to secure
the release of a dairy product from Customs and introduce the released
dairy product into the stream of commerce.
`(C) RATE- The rate of assessment
on imported dairy products shall be determined in the same manner as the
rate of assessment per hundredweight or the equivalent of milk.
`(D) VALUE OF PRODUCTS-
For the purpose of determining the assessment on imported dairy products
under subparagraph (C), the value to be placed on imported dairy products
shall be established by the Secretary in a fair and equitable manner.
`(E) USE OF ASSESSMENTS
ON IMPORTED DAIRY PRODUCTS- Assessments collected on imported dairy products
shall not be used for foreign market promotion of United States dairy products.'.
(d) RECORDS- Section 113(k)
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 4504(k)) is
amended in the first sentence by striking `person receiving' and inserting
`importer of imported dairy products, each person receiving'.
(e) IMPORTER ELIGIBILITY
TO VOTE IN REFERENDUM- Section 116(b) of the Dairy Promotion Stabilization
Act of 1983 (7 U.S.C. 4507(b)) is amended--
(1) in the first sentence,
by inserting `and importers' after `producers' each place it appears; and
(2) in the second sentence,
by inserting after `commercial use' the following: `and importers voting
in the referendum (that have been engaged in the importation of dairy products
into the United States during the applicable period, as determined by the
Secretary)'.
(f) CONFORMING AMENDMENTS-
Section 110(b) of the Dairy Production Stabilization Act of 1983 (7 U.S.C.
4501(b)) is amended--
(1) in the first sentence--
(A) by inserting after `commercial
use' the following: `and on imported dairy products'; and
(B) by striking `products
produced in the United States.' and inserting `products.'; and
(2) in the second sentence,
by inserting after `produce milk' the following: `or the right of any person
to import dairy products'.
CHAPTER 2--SUGAR
SEC. 141. SUGAR PROGRAM.
(a) LOAN RATE ADJUSTMENTS-
Section 156(c) of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7272(c)) is amended--
(1) by striking `REDUCTION
IN LOAN RATES' and inserting `LOAN RATE ADJUSTMENTS'; and
(A) by striking `REDUCTION
REQUIRED' and inserting `IN GENERAL'; and
(B) by striking `shall'
and inserting `may'.
(b) LOAN TYPE; PROCESSOR
ASSURANCES- Section 156(e) of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272(e)) is amended--
(1) by striking paragraph
(2) and inserting the following:
`(2) PROCESSOR ASSURANCES-
`(A) IN GENERAL- The Secretary
shall obtain from each processor that receives a loan under this section
such assurances as the Secretary considers adequate to ensure that the
processor will provide payments to producers that are proportional to the
value of the loan received by the processor for the sugar beets and sugarcane
delivered by producers to the processor.
`(i) IN GENERAL- Subject
to clause (ii), the Secretary may establish appropriate minimum payments
for purposes of this paragraph.
`(ii) LIMITATION- In the
case of sugar beets, the minimum payment established under clause (i) shall
not exceed the rate of payment provided for under the applicable contract
between a sugar beet producer and a sugar beet processor.
`(C) BANKRUPTCY OR INSOLVENCY
OF PROCESSORS-
`(i) IN GENERAL- The Secretary
shall use funds of the Commodity Credit Corporation to pay a producer of
sugar beets or sugarcane loan benefits described in clause (ii) if--
`(I) a processor that has
entered into a contract with the producer has filed for bankruptcy protection
or is otherwise insolvent;
`(II) the assurances under
subparagraph (A) are not adequate to ensure compliance with subparagraph
(A), as determined by the Secretary;
`(III) the producer demands
payments of loan benefits required under this section from the processor;
and
`(IV) the Secretary determines
that the processor is unable to provide the loan benefits required under
this section.
`(ii) AMOUNT- The amount
of loan benefits provided to a producer under clause (i) shall be equal
to--
`(I) the maximum amount
of loan benefits the producer would have been entitled to receive under
this section during the 30-day period beginning on the final settlement
date provided for in the contract between the producer and processor; less
`(II) any such benefits
received by the producer from the processor.
`(iii) ADMINISTRATION- On
payment to a producer under clause (i), the Secretary shall--
`(I) be subrogated to all
claims of the producer against the processor and other persons responsible
for nonpayment; and
`(II) have authority to
pursue such claims as are necessary to recover the benefits not paid to
the producer by the processor.'; and
(2) by adding at the end
the following:
`(3) ADMINISTRATION- The
Secretary may not impose or enforce any prenotification or similar administrative
requirement that has the effect of preventing a processor from electing
to forfeit the loan collateral on the maturity of the loan.'.
(c) TERMINATION OF MARKETING
ASSESSMENT- Effective October 1, 2001, section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking
subsection (f).
(d) TERMINATION OF FORFEITURE
PENALTY- Section 156 of the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 7272) is amended by striking subsection (g).
(e) IN-PROCESS SUGAR- Section
156 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272) (as amended by subsections (c) and (d)) is amended by inserting after
subsection (e) the following:
`(f) LOANS FOR IN-PROCESS
SUGAR-
`(1) DEFINITION OF IN-PROCESS
SUGARS AND SYRUPS- In this subsection, the term `in-process sugars and
syrups' does not include raw sugar, liquid sugar, invert sugar, invert
syrup, or other finished product that is otherwise eligible for a loan
under subsection (a) or (b).
`(2) AVAILABILITY- The Secretary
shall make nonrecourse loans available to processors of a crop of domestically
grown sugarcane and sugar beets for in-process sugars and syrups derived
from the crop.
`(3) LOAN RATE- The loan
rate shall be equal to 80 percent of the loan rate applicable to raw cane
sugar or refined beet sugar, as determined by the Secretary on the basis
of the source material for the in-process sugars and syrups.
`(4) FURTHER PROCESSING
ON FORFEITURE-
`(A) IN GENERAL- As a condition
of the forfeiture of in-process sugars and syrups serving as collateral
for a loan under paragraph (2), the processor shall, within such reasonable
time period as the Secretary may prescribe and at no cost to the Commodity
Credit Corporation, convert the in-process sugars and syrups into raw cane
sugar or refined beet sugar of acceptable grade and quality for sugars
eligible for loans under subsection (a) or (b).