skip to main content
Hide All The Ads With a Yearly Membership Subscribe ▶

H.R. 2330 (104th): Agricultural Competitiveness Act of 1995

React to this bill with an emoji

(About Ads | Hide These Ads)

The text of the bill below is as of Sep 14, 1995 (Introduced). The bill was not enacted into law.

HR 2330 IH

104th CONGRESS

1st Session

H. R. 2330

To amend the Agricultural Act of 1949 to extend the agricultural price support programs for certain commodities through 2002 and to modify the operation of such programs, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

September 14, 1995

Mr. EMERSON (for himself, Mr. COMBEST, Mr. BAKER of Louisiana, Mr. LIVINGSTON, Mr. TAUZIN, Mr. MCCRERY, Mr. LAUGHLIN, Mr. CHAMBLISS, Mr. PARKER, Mr. EVERETT, Mr. WICKER, Mr. THORNBERRY, Mr. HAYES, Mr. TAYLOR of Mississippi, and Mr. DICKEY) introduced the following bill; which was referred to the Committee on Agriculture

A BILL

To amend the Agricultural Act of 1949 to extend the agricultural price support programs for certain commodities through 2002 and to modify the operation of such programs, 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 ‘Agricultural Competitiveness Act of 1995’.

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

      Sec. 1. Short title; table of contents.

      Sec. 2. Sense of Congress regarding regulatory and tax relief for agricultural producers and role of farm programs in ending the federal deficit.

TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS

      Sec. 101. Extension of loans, payments, and acreage reduction programs for wheat through 2002.

      Sec. 102. Extension of loans, payments, and acreage reduction programs for feed grains through 2002.

      Sec. 103. Extension of loans, payments, and acreage reduction programs for cotton through 2002.

      Sec. 104. Extension of loans, payments, and acreage reduction programs for rice through 2002.

      Sec. 105. Extension of loans and payments for oilseeds through 2002.

TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS

      Sec. 201. Increase in flex acres to reduce acres for which deficiency payments are available.

      Sec. 202. Application of same repayment criteria to 0/50 and 0/85 payments as regular deficiency payments.

      Sec. 203. Increased planting flexibility.

      Sec. 204. Alternative repayment provision for marketing loans.

      Sec. 205. Peanut program.

      Sec. 206. Sugar program.

      Sec. 207. Effect of amendments on 1991 through 1995 crops.

TITLE III--GENERAL COMMODITY PROVISIONS

      Sec. 301. Extension of supplemental set-aside and acreage limitation authority.

      Sec. 302. Extension of deficiency and land diversion payments.

      Sec. 303. Extension of authority to adjust established prices.

      Sec. 304. Extension of limitation on adjustments of support prices.

      Sec. 305. Extension of option to extend programs.

      Sec. 306. References to terms regarding price support.

      Sec. 307. Extension of acreage base and yield system.

      Sec. 308. Normally planted acreage.

      Sec. 309. Extension of National Agricultural Cost of Production Standards Review Board.

      Sec. 310. Extension of payment limitations.

      Sec. 311. Extension of requirements for notice and public participation in Secretary determinations.

      Sec. 312. Determination of normal supply.

      Sec. 313. Extension of options pilot program.

TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM

      Sec. 401. Repeal of emergency livestock feed assistance program.

TITLE V--FEDERAL CROP INSURANCE

      Sec. 501. Conversion of catastrophic risk protection program to a voluntary program.

TITLE VI--MISCELLANEOUS PROGRAMS

      Sec. 601. Reduction in funding levels for export enhancement program.

      Sec. 602. Spending limitations on conservation reserve program.

TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

      Sec. 701. Establishment.

      Sec. 702. Composition.

      Sec. 703. Comprehensive review of past and future of production agriculture.

      Sec. 704. Reports.

      Sec. 705. Powers.

      Sec. 706. Commission procedures.

      Sec. 707. Personnel matters.

      Sec. 708. Termination of Commission.

SEC. 2. SENSE OF CONGRESS REGARDING REGULATORY AND TAX RELIEF FOR AGRICULTURAL PRODUCERS AND ROLE OF FARM PROGRAMS IN ENDING THE FEDERAL DEFICIT.

    (a) FINDINGS- The Congress finds that--

      (1) the continuation of significant Federal budgetary deficits harms the economic well-being of the United States and is detrimental to the development of sound, long-term agricultural policy;

      (2) agricultural price support and production adjustment programs are necessary for the continued economic health of United States agriculture, which must compete in international markets against subsidized foreign competition; and

      (3) regulatory and tax relief for agricultural producers is necessary so that agricultural producers in the United States can continue to produce an abundant supply of agricultural commodities and compete in international markets.

    (b) SENSE OF CONGRESS- Based on the findings expressed in subsection (a), it is the sense of Congress that--

      (1) agricultural price support and production adjustment programs should be--

        (A) implemented, to the maximum extent practicable, in a manner that is consistent with the primary goal of the concurrent resolution on the budget for fiscal year 1996 (H.Con.Res. 67, agreed to June 29, 1995) to end Federal budget deficits; and

        (B) modified, as necessary, to ensure that the programs comply with applicable budget reconciliation instructions in the concurrent resolution that are designed to end Federal budget deficits, in a manner consistent with section 306 of the concurrent resolution;

      (2) regulatory relief for agricultural producers should be enacted and implemented, including the application of cost/benefit principles in the issuance of agricultural regulations; and

      (3) tax relief for agricultural producers should be enacted in the form of capital gains tax reductions, estate tax exemptions, and mechanisms to average tax loads over high and low income years.

TITLE I--EXTENSION OF CERTAIN COMMODITY PROGRAMS

SEC. 101. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR WHEAT THROUGH 2002.

    (a) AGRICULTURAL ACT OF 1949- Section 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended--

      (1) in the section heading by striking ‘1995’ and inserting ‘2002’;

      (2) in subsections (a)(1), (a)(4)(C), (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(3)(A), (e)(3)(C)(iii), (f)(1), (q), by striking ‘1995’ each place it appears and inserting ‘2002’;

      (3) in the heading of subsection (c)(1)(B)(ii), by striking ‘AND 1995’ and inserting ‘THROUGH 2002’;

      (4) in subsection (c)(1)(B)(ii), by striking ‘and 1995’ and inserting ‘through 2002’; and

      (5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by striking ‘1997’ each place it appears and inserting ‘2002’;

      (6) in the heading of subsection (e)(1)(G), by striking ‘1995’ and inserting ‘2002’; and

      (7) in subsection (g)(1), by striking ‘and 1995’ and inserting ‘through 2002’.

    (b) FOOD SECURITY WHEAT RESERVE- Section 302(i) of the Food Security Wheat Reserve Act of 1980 (7 U.S.C. 1736f-1(i)) is amended by striking ‘1995’ both places it appears and inserting ‘2002’.

    (c) NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS- Sections 379d through 379j of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379d-1379j) shall not be applicable to wheat processors or exporters during the period June 1, 1996, through May 31, 2003.

    (d) SUSPENSION OF LAND USE, WHEAT MARKETING ALLOCATION, AND PRODUCER CERTIFICATE PROVISIONS- Sections 331 through 339, 379b, and 379c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1331 through 1339, 1379b, and 1379c) shall not be applicable to the 1996 through 2002 crops of wheat.

    (e) SUSPENSION OF CERTAIN QUOTA PROVISIONS- The joint resolution entitled ‘A joint resolution relating to corn and wheat marketing quotas under the Agricultural Adjustment Act of 1938, as amended’, approved May 26, 1941 (7 U.S.C. 1330 and 1340), shall not be applicable to the crops of wheat planted for harvest in the calendar years 1996 through 2002.

    (f) NONAPPLICABILITY OF SECTION 107 OF AGRICULTURAL ACT OF 1949- Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to the 1996 through 2002 crops of wheat.

SEC. 102. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR FEED GRAINS THROUGH 2002.

    (a) AGRICULTURAL ACT OF 1949- Section 105B of the Agricultural Act of 1949 (7 U.S.C. 1444f) is amended--

      (1) in the section heading, by striking ‘1995’ and inserting ‘2002’;

      (2) in subsections (a)(1), (a)(4)(C), (a)(6), (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(1)(G), (e)(1)(H), (e)(2)(H), (e)(3)(A), (e)(3)(C)(iii), (f)(1), (p)(1), (q)(1), and (r), by striking ‘1995’ each place it appears and inserting ‘2002’;

      (3) in the heading of subsection (c)(1)(B)(ii), by striking ‘AND 1995’ and inserting ‘THROUGH 2002’;

      (4) in subsection (c)(1)(B)(ii), by striking ‘and 1995’ and inserting ‘through 2002’;

      (5) in subsections (c)(1)(E)(i) and (c)(1)(E)(vii), by striking ‘1997’ each place it appears and inserting ‘2002’;

      (6) in the headings of subsections (e)(1)(G) and (e)(1)(H), by striking ‘1995’ both places it appears and inserting ‘2002’; and

      (7) in subsection (g)(1), by striking ‘and 1995’ and inserting ‘through 2002’.

    (b) RECOURSE LOAN PROGRAM FOR SILAGE- Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-1) is amended by striking ‘1996’ and inserting ‘2002’.

    (c) NONAPPLICABILITY OF SECTION 105 OF AGRICULTURAL ACT OF 1949- Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be applicable to the 1996 through 2002 crops of feed grains.

SEC. 103. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR COTTON THROUGH 2002.

    (a) EXTRA LONG STAPLE COTTON- Section 103(h)(16) of the Agricultural Act of 1949 (7 U.S.C. 1444(h)(16)) is amended by striking ‘1996’ and inserting ‘2003’.

    (b) UPLAND COTTON- Section 103B of the Agricultural Act of 1949 (7 U.S.C. 1444-2) is amended--

      (1) in the section heading, by striking ‘1997’ and inserting ‘2002’;

      (2) in subsections (a)(1), (b)(1), (c)(1)(A), (c)(1)(B)(ii), (c)(1)(D)(i), (c)(1)(D)(v)(II), and (o), by striking ‘1997’ each place it appears and inserting ‘2002’;

      (3) in the heading of subsection (c)(1)(D)(v)(II), by striking ‘1997 CROPS’ and inserting ‘2002 CROPS’;

      (4) in subsection (e)(1)(D), by striking ‘the 1997 crop’ and inserting ‘each of the 1997 through 2002 crops’;

      (5) in subsections (e)(3)(A) and (f)(1), by striking ‘1995’ each place it appears and inserting ‘2002’; and

      (6) in subparagraphs (B)(i), (D)(i), (E)(i), and (F)(i) of subsection (a)(5), by striking ‘1998’ each place it appears and inserting ‘2003’.

    (c) COTTONSEED AND COTTONSEED OIL- Section 203(b) of the Agricultural Act of 1949 (7 U.S.C. 1446d(b)) is amended by striking ‘1995’ and inserting ‘2002’.

    (d) AGRICULTURAL ADJUSTMENT ACT OF 1938- Section 374(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1374(a)) is amended by striking ‘1995’ each place it appears and inserting ‘2002’.

    (e) SUSPENSION OF BASE ACREAGE ALLOTMENTS, MARKETING QUOTAS, AND RELATED PROVISIONS- Sections 342, 343, 344, 345, 346, and 377 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1342-1346 and 1377) shall not be applicable to any of the 1996 through 2002 crops of upland cotton.

    (f) SUSPENSION OF MISCELLANEOUS COTTON PROVISIONS- Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to the 1996 through 2002 crops.

    (g) PRELIMINARY ALLOTMENTS FOR 2003 CROP OF UPLAND COTTON- Notwithstanding any other provision of law, the permanent State, county, and farm base acreage allotments for the 1977 crop of upland cotton, adjusted for any underplantings in 1977 and reconstituted as provided in section 379 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1379), shall be the preliminary allotments for the 2003 crop.

    (h) COTTON CLASSIFICATION SERVICES- The first sentence of section 3a of the Act of March 3, 1927 (commonly known as the ‘Cotton Statistics and Estimates Act’) (chapter 337; 7 U.S.C. 473a), is amended by striking ‘1996’ and inserting ‘2002’.

SEC. 104. EXTENSION OF LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR RICE THROUGH 2002.

    Section 101B of the Agricultural Act of 1949 (7 U.S.C. 1441-2) is amended--

      (1) in the section heading, by striking ‘1995’ and inserting ‘2002’;

      (2) in subsections (a)(1), (a)(3), (b)(1), (c)(1)(A), (c)(1)(B)(iii), (e)(3)(A), (f)(1), and (n), by striking ‘1995’ each place it appears and inserting ‘2002’;

      (3) in subsection (a)(5)(D)(i), by striking ‘1996’ and inserting ‘2001’;

      (4) in the heading of subsection (c)(1)(B)(ii), by striking ‘AND 1995’ and inserting ‘THROUGH 2002’;

      (5) in subsection (c)(1)(B)(ii), by striking ‘and 1995’ and inserting ‘through 2002’;

      (6) in subsections (c)(1)(D)(i) and (c)(1)(D)(v)(II), by striking ‘1997’ each place it appears and inserting ‘2002’; and

      (7) in the heading of subsection (c)(1)(D)(v)(II), by striking ‘1997 CROPS’ and inserting ‘2002 CROPS’.

SEC. 105. EXTENSION OF LOANS AND PAYMENTS FOR OILSEEDS THROUGH 2002.

    Section 205 of the Agricultural Act of 1949 (7 U.S.C. 1446f) is amended--

      (1) in the section heading, by striking ‘1995’ and inserting ‘2002’;

      (2) in subsections (b), (c), (e)(1), and (n), by striking ‘1995’ each place it appears and inserting ‘2002’; and

      (3) in subsections (c) and (h)(2), by striking ‘1997’ each places it appears and inserting ‘2002’.

TITLE II--MODIFICATION OF COMMODITY PROGRAM OPERATIONS

SEC. 201. INCREASE IN FLEX ACRES TO REDUCE ACRES FOR WHICH DEFICIENCY PAYMENTS ARE AVAILABLE.

    (a) WHEAT- Subsection (c)(1)(C)(ii) of section 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking ‘85 percent’ and inserting ‘85 percent (through the 1995 crop of wheat) and 70 percent (for the 1996 through 2002 crops)’.

    (b) FEED GRAINS- Subsection (c)(1)(C)(ii) of section 105B of such Act (7 U.S.C. 1444f) is amended by striking ‘85 percent’ and inserting ‘85 percent (through the 1995 crop) and 70 percent (for the 1996 through 2002 crops)’.

    (c) UPLAND COTTON- Subsection (c)(1)(C)(ii) of section 103B of such Act (7 U.S.C. 1444-2) is amended by striking ‘85 percent’ and inserting ‘85 percent (through the 1995 crop of upland cotton) and 70 percent (for the 1996 through 2002 crops)’.

    (d) RICE- Subsection (c)(1)(C)(ii) of section 101B of such Act (7 U.S.C. 1441-2) is amended by striking ‘85 percent’ and inserting ‘85 percent (through the 1995 crop of rice) and 70 percent (for the 1996 through 2002 crops)’.

SEC. 202. APPLICATION OF SAME REPAYMENT CRITERIA TO 0/50 AND 0/85 PAYMENTS AS REGULAR DEFICIENCY PAYMENTS.

    (a) WHEAT- Subsection (c)(1)(E) of section 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended by striking clause (ii) and inserting the following new clause:

          ‘(ii) DEFICIENCY PAYMENTS; REPAYMENT- Notwithstanding any other provision of this section, for the 1996 through 2002 crops of wheat, any producer who devotes a portion of the maximum payment acres for wheat for the farm to conservation uses (or other uses as provided in subparagraph (F)) under this subparagraph shall receive deficiency payments on the acreage that is considered to be planted to wheat and eligible for payments under this subparagraph for the crop. Such deficiency payments shall be made at the payment rate provided in subparagraph (B) for deficiency payments under subparagraph (A) and shall be subject to repayment under the terms set forth in section 114.’.

    (b) FEED GRAINS- Subsection (c)(1)(E) of section 105B of such Act (7 U.S.C. 1444f) is amended by striking clause (ii) and inserting the following new clause:

          ‘(ii) DEFICIENCY PAYMENTS; REPAYMENT- Notwithstanding any other provision of this section, for the 1996 through 2002 crops of feed grains, any producer who devotes a portion of the maximum payment acres for feed grains for the farm to conservation uses (or other uses as provided in subparagraph (F)) under this subparagraph shall receive deficiency payments on the acreage that is considered to be planted to feed grains and eligible for payments under this subparagraph for the crop. Such deficiency payments shall be made at the payment rate provided in subparagraph (B) for deficiency payments under subparagraph (A) and shall be subject to repayment under the terms set forth in section 114.’.

    (c) UPLAND COTTON- Subsection (c)(1)(D) of section 103B of such Act (7 U.S.C. 1444-2) is amended by striking clause (iii) and inserting the following new clause:

          ‘(iii) DEFICIENCY PAYMENTS; REPAYMENT- Notwithstanding any other provision of this section, for the 1996 through 2002 crops of upland cotton, any producer who devotes a portion of the maximum payment acres for upland cotton for the farm to conservation uses (or other uses as provided in subparagraph (F)) under this subparagraph shall receive deficiency payments on the acreage that is considered to be planted to upland cotton and eligible for payments under this subparagraph for the crop. Such deficiency payments shall be made at the payment rate provided in subparagraph (B) for deficiency payments

under subparagraph (A) and shall be subject to repayment under the terms set forth in section 114.’.

    (d) RICE- Subsection (c)(1)(D) of section 101B of such Act (7 U.S.C. 1441-2) is amended by striking clause (iii) and inserting the following new clause:

          ‘(iii) DEFICIENCY PAYMENTS; REPAYMENT- Notwithstanding any other provision of this section, for the 1996 through 2002 crops of rice, any producer who devotes a portion of the maximum payment acres for rice for the farm to conservation uses (or other uses as provided in subparagraph (F)) under this subparagraph shall receive deficiency payments on the acreage that is considered to be planted to rice and eligible for payments under this subparagraph for the crop. Such deficiency payments shall be made at the payment rate provided in subparagraph (B) for deficiency payments under subparagraph (A) and shall be subject to repayment under the terms set forth in section 114.’.

SEC. 203. INCREASED PLANTING FLEXIBILITY.

    (a) EXPANSION OF 25 PERCENT LIMITATION- Subsection (c) of section 504 of the Agricultural Act of 1949 (7 U.S.C. 1464) is amended to read as follows:

    ‘(c) LIMITATION ON ACREAGE- The quantity of the crop acreage base that may be planted to a commodity, other than the specific program crop, under this section may not exceed 100 percent of the crop acreage base.’.

    (b) TWO-WAY FLEXIBILITY- Such section is further amended by adding at the end the following new subsection:

    ‘(f) TWO-WAY FLEXIBILITY-

      ‘(1) PLANTING ON HISTORICAL SOYBEAN ACREAGE- Notwithstanding any other provision of this Act, producers of a program crop on a farm who are participating in the production adjustment program for the program crop under this Act shall be allowed to plant the program crop in a quantity that exceeds the permitted acreage for the crop without losing the eligibility of the producers for loans, purchases, or payments with respect to the crop under this Act if the acreage planted to the program crop on the farm in excess of the permitted acreage does not exceed 25 percent of the historical soybean acreage on the farm for the crop.

      ‘(2) ADDITIONAL FLEXIBILITY- Any authority to plant a program crop in excess of the permitted acreage for the crop under this subsection shall be in addition to authority provided under subsection (d).

      ‘(3) LIMITATION- The Secretary may limit the application of this subsection with respect to a program crop if the Secretary determines the limitation to be necessary to prevent an increase in the acreage limitation program that would otherwise be implemented in accordance with sections 101B, 103B, 105B, and 107B during a crop year for the crop.’.

    (c) CONFORMING AMENDMENTS- Such section is further amended--

      (1) in subsection (d)--

        (A) by striking ‘Notwithstanding’ and inserting ‘Except as provided in subsection (f) and notwithstanding’; and

        (B) in paragraph (1), by striking ‘25 percent’ and inserting ‘100 percent’; and

      (2) in subsection (e)(2)(A), by striking ‘25 percent’ and inserting ‘100 percent’.

SEC. 204. ALTERNATIVE REPAYMENT PROVISION FOR MARKETING LOANS.

    (a) WHEAT-

      (1) MARKETING LOAN REPAYMENT- Subsection (a) of section 107B of the Agricultural Act of 1949 (7 U.S.C. 1445b-3a) is amended--

        (A) by striking paragraph (3) and all that follows through paragraph (4)(A) and inserting the following:

      ‘(3) MARKETING LOANS-

        ‘(A) IN GENERAL- The Secretary shall permit the producers on a farm to repay a loan made under this subsection for a crop at a level (except as provided in subparagraph (C)) that is the lesser of--

          ‘(i) the loan level determined for the crop; and

          ‘(ii) the prevailing world market price for wheat (adjusted to United States quality and location), as determined by the Secretary.’; and

        (B) by redesignating paragraph (5) as paragraph (4).

      (2) CONFORMING AMENDMENT- Subsection (c)(1) of such section is amended by striking subparagraph (D).

    (b) FEED GRAINS-

      (1) MARKETING LOAN REPAYMENT- Subsection (a) of section 105B of the Agricultural Act of 1949 (7 U.S.C. 1444f) is amended--

        (A) by striking paragraph (3) and all that follows through paragraph (4)(A) and inserting the following:

      ‘(3) MARKETING LOANS-

        ‘(A) IN GENERAL- The Secretary shall permit the producers on a farm to repay a loan made under this subsection for a crop at a level (except as provided in subparagraph (C)) that is the lesser of--

          ‘(i) the loan level determined for the crop; and

          ‘(ii) the prevailing world market price for feed grains (adjusted to United States quality and location), as determined by the Secretary.’; and

        (B) by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively.

      (2) CONFORMING AMENDMENT- Subsection (c)(1) of such section is amended by striking subparagraph (D).

SEC. 205. PEANUT PROGRAM.

    (a) NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS- Section 358-1 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1) is amended to read as follows:

‘SEC. 358-1. NATIONAL POUNDAGE QUOTAS AND ACREAGE ALLOTMENTS FOR PEANUTS.

    ‘(a) NATIONAL POUNDAGE QUOTAS-

      ‘(1) ESTABLISHMENT- The national poundage quota for peanuts for each marketing year shall be established by the Secretary at a level that is equal to the quantity of peanuts (in tons) that the Secretary estimates will be devoted in each such marketing year to domestic edible and related uses, excluding seed. The Secretary shall also include in his annual estimate of domestic edible and related uses, the estimated quantity of peanuts and peanut products to be imported into the United States for the marketing year for which the quota is being established.

      ‘(2) ANNOUNCEMENT- The national poundage quota for a marketing year shall be announced by the Secretary not later than December 15 preceding the marketing year.

      ‘(3) APPORTIONMENT AMONG STATES- The national poundage quota established under paragraph (1) shall be apportioned among the States so that the poundage quota allocated to each State shall be equal to the percentage of the national poundage quota allocated to farms in the State for 1995.

    ‘(b) FARM POUNDAGE QUOTAS-

      ‘(1) IN GENERAL-

        ‘(A) ESTABLISHMENT- A farm poundage quota for each marketing year shall be established--

          ‘(i) for each farm that had a farm poundage quota for peanuts for the 1995 marketing year;

          ‘(ii) if the poundage quota apportioned to a State under subsection (a)(3) for any such marketing year is larger than the quota for the immediately preceding marketing year, for each other farm on which peanuts were produced for marketing in at least 2 of the 3 immediately preceding crop years, as determined by the Secretary; and

          ‘(iii) as approved and determined by the Secretary under section 358c, for each farm on which peanuts are produced in connection with experimental and research programs.

        ‘(B) QUANTITY- The farm poundage quota for each marketing year for each farm described in subparagraph (A)(i) shall be the same as the farm poundage quota for the farm for the immediately preceding marketing year, as adjusted under paragraph (2), but not including any increases resulting from the allocation of quotas voluntarily released for one year under paragraph (7). The farm poundage quota, if any, for each marketing year for each farm described in subparagraph (A)(ii) shall be equal to the quantity of peanuts allocated to the farm for the year under paragraph (2).

        ‘(C) TRANSFERS- For purposes of this subsection, if the farm poundage quota, or any part thereof, is permanently transferred in accordance with section 358a or 358b, the receiving farm shall be considered as possessing the farm poundage quota (or portion thereof) of the transferring farm for all subsequent marketing years.

      ‘(2) ADJUSTMENTS-

        ‘(A) ALLOCATION OF INCREASED QUOTA GENERALLY- Except as provided in subparagraph (C), if the poundage quota apportioned to a State under subsection (a)(3) of any marketing year is increased over the poundage quota apportioned to farms in the State for the immediately preceding marketing year, the increase shall be allocated proportionately, based on farm production history for peanuts for the 3 immediately preceding years, among--

          ‘(i) all farms in the State for each of which a farm poundage quota was established for the marketing year immediately preceding the marketing year for which the allocation is being made; and

          ‘(ii) all other farms in the State on each of which peanuts were produced in at least 2 of the 3 immediately preceding crop years, as determined by the Secretary.

        ‘(B) DECREASE- If the poundage quota apportioned to a State under subsection (a)(3) for any marketing year is decreased from the poundage quota apportioned to farms in the State under subsection (a)(3) for the immediately preceding marketing year, the decrease shall be allocated among all the farms in the State for each of which a farm poundage quota was established for the marketing year immediately preceding the marketing year for which the allocation is being made.

        ‘(C) SPECIAL RULE ON TENANT’S SHARE OF INCREASED QUOTA- Subject to terms and conditions prescribed by the Secretary, on farms that were leased to a tenant for peanut production, the tenant shall share equally with the owner of the farm in that percentage of the quota referred to in subparagraph (A) and otherwise allocated to the farm as the result of the tenant’s production on the farm of additional peanuts. Not later than April 1 of each year or as soon as practicable, the tenant’s share of any such quota shall be allocated to a farm within the county owned by the tenant or sold by the tenant to the owner of any farm within the county and permanently transferred to that farm. Any quota not so disposed of as provided in this subparagraph shall be allocated to other quota farms in the State under paragraph (6) as part of the quota reduced from farms in the State due to the failure to produce the quota.

      ‘(3) Quota not produced-

        ‘(A) IN GENERAL- Insofar as practicable and on such fair and equitable basis as the Secretary may by regulation prescribe, the farm poundage quota established for a farm for any marketing year shall be reduced to the extent that the Secretary determines that the farm poundage quota established for the farm for any 2 of the 3 marketing years preceding the marketing year for which the determination is being made was not produced, or considered produced, on the farm.

        ‘(B) EXCLUSIONS- For purposes of this paragraph, the farm poundage quota for any such preceding marketing year shall not include any increase resulting from the allocation of quotas voluntarily released for 1 year under paragraph (7).

      ‘(4) QUOTA CONSIDERED PRODUCED- For purposes of this subsection, the farm poundage quota shall be considered produced on a farm if--

        ‘(A) the farm poundage quota was not produced on the farm because of drought, flood, or any other natural disaster, or any other condition beyond the control of the producer, as determined by the Secretary; or

        ‘(B) the farm poundage quota for the farm was either leased to another owner or operator of a farm within the same county for transfer to such farm for only 1 of the 3 marketing years immediately preceding the marketing year for which the determination is being made or the farm poundage quota was released voluntarily under paragraph (7) for only 1 of the 3 marketing years immediately preceding the marketing year for which the determination is being made. The farm poundage quota shall not be considered produced for more than one marketing year out of the three immediately preceding marketing years under this subparagraph.

      ‘(5) QUOTA PERMANENTLY RELEASED- Notwithstanding any other provision of law--

        ‘(A) the farm poundage quota established for a farm under this subsection, or any part of the quota, may be permanently released by the owner of the farm, or the operator with the permission of the owner; and

        ‘(B) the poundage quota for the farm for which the quota is released shall be adjusted downward to reflect the quota that is so released.

      ‘(6) Allocation of quotas reduced or released-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), the total quantity of the farm poundage quotas reduced or voluntarily released from farms in a State for any marketing year under paragraphs (3) and (5) shall be allocated, as the Secretary may by regulation prescribe, to other farms in the State as provided in subparagraph (B) on which peanuts were produced in at least 2 of the 3 crop years immediately preceding the year for which the allocation is being made.

        ‘(B) SET-ASIDE FOR FARMS WITH NO QUOTA- The total amount of farm poundage quota to be allocated in the State under subparagraph (A) shall be allocated to farms in the State for which no farm poundage quota was established for the immediately preceding year’s crop. The allocation to any such farm shall not exceed the average farm production of peanuts for the 3 immediately preceding years during which peanuts were produced on the farm. Any farm quota pounds remaining after allocation to farms under this subparagraph shall be allocated to farms in the State on which poundage quotas were established for the immediately preceding year’s crop.

      ‘(7) Quota temporarily released-

        ‘(A) IN GENERAL- The farm poundage quota, or any portion thereof, established for a farm for a marketing year may be voluntarily released to the Secretary to the extent that the quota, or any part thereof, will not be produced on the farm for the marketing year. Any farm poundage quota so released in a State shall be allocated to other farms in the State on such basis as the Secretary may by regulation prescribe.

        ‘(B) EFFECTIVE PERIOD- Except as otherwise provided in this section, any adjustment in the farm poundage quota for a farm under subparagraph (A) shall be effective only for the marketing year for which it is made and shall not be taken into consideration in establishing a farm poundage quota for the farm from which the quota was released for any subsequent marketing year.

      ‘(8) TRANSFER OF ADDITIONAL PEANUTS- Additional peanuts on a farm from which the quota poundage was not harvested and marketed may be transferred to the quota loan pool for pricing purposes on such basis as the Secretary shall by regulation provide, except that the poundage of such peanuts so transferred shall not exceed the difference in the total peanuts meeting quality requirements for domestic edible use as determined by the Secretary marketed from the farm and the total farm poundage quota, excluding quota pounds transferred to the farm in the fall. Peanuts transferred under provisions of this paragraph shall be supported at a total of not less than 70 percent of the quota support rate for the marketing years in which such transfers occur and such transfers for a farm shall not exceed 25 percent of the total farm quota pounds, excluding pounds transferred in the fall.

      ‘(9) Temporary quota allocation-

        ‘(A) Temporary allocation of quota pounds for the marketing year only in which the crop is planted shall be made to producers as provided in this subsection. The temporary quota

allocation shall be equal to the pounds of seed peanuts planted on the farm as may be adjusted under regulations that shall be prescribed by the Secretary. The temporary allocation of quota pounds under this paragraph shall be in addition to the farm quota pounds established under paragraph (1).

        ‘(B) The allocation of quota pounds to producers under the provisions of this subsection shall be performed in such a manner as will not result in a net decrease in quota pounds on a farm in excess of 3 percent, after temporary seed quota is added, from the basic farm quota in 1996 and such decrease shall occur one time only and shall be applicable to the 1996 marketing year only.

        ‘(C) Implementation of provisions in this subsection may continue so long as doing so does not result in increased cost to the Commodity Credit Corporation by displacement of quota peanuts by additional peanuts in the domestic market, increased losses in the Association loan pools or other such increases in cost.

        ‘(D) Nothing in this paragraph shall alter or change in any way the requirements of section 358e(b).

    ‘(c) Farm Yields-

      ‘(1) IN GENERAL- For each farm for which a farm poundage quota is established under subsection (b), and when necessary for purposes of this Act, a farm yield of peanuts shall be determined for each such farm.

      ‘(2) QUANTITY- The yield shall be equal to the average of the actual yield per acre on the farm for each of the 3 crop years in which yields were highest on the farm out of the 5 crop years 1973 through 1977.

      ‘(3) APPRAISED YIELDS- If peanuts were not produced on the farm in at least 3 years during the 5-year period or there was a substantial change in the operation of the farm during the period (including a change in operator, lessee who is an operator, or irrigation practices), the Secretary shall have a yield appraised for the farm. The appraised yield shall be that quantity determined to be fair and reasonable on the basis of yields established for similar farms that are located in the area of the farm and on which peanuts were produced, taking into consideration land, labor, and equipment available for the production of peanuts, crop rotation practices, soil and water, and other relevant factors.

    ‘(d) REFERENDUM RESPECTING POUNDAGE QUOTAS-

      ‘(1) IN GENERAL- Not later than December 15 of each calendar year, the Secretary shall conduct a referendum of producers engaged in the production of quota peanuts in the calendar year in which the referendum is held to determine whether the producers are in favor of or opposed to poundage quotas with respect to the crops of peanuts produced in the 5 calendar years immediately following the year in which the referendum is held, except that, if as many as two-thirds of the producers voting in any referendum vote in favor of poundage quotas, no referendum shall be held with respect to quotas for the second, third, fourth, and fifth years of the period.

      ‘(2) PROCLAMATION- The Secretary shall proclaim the result of the referendum within 30 days after the date on which it is held.

      ‘(3) VOTE AGAINST QUOTAS- If more than one-third of the producers voting in the referendum vote against quotas, the Secretary also shall proclaim that poundage quotas will not be in effect with respect to the crop of peanuts produced in the calendar year immediately following the calendar year in which the referendum is held.

    ‘(e) DEFINITIONS- For the purposes of this part and title I of the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.):

      ‘(1) ADDITIONAL PEANUTS- The term ‘additional peanuts’ means, for any marketing year--

        ‘(A) any peanuts that are marketed from a farm for which a farm poundage quota has been established and that are in excess of the marketings of quota peanuts from the farm for the year; and

        ‘(B) all peanuts marketed from a farm for which no farm poundage quota has been established in accordance with subsection (b).

      ‘(2) CRUSHING- The term ‘crushing’ means the processing of peanuts to extract oil for food uses and meal for feed uses, or the processing of peanuts by crushing or otherwise when authorized by the Secretary.

      ‘(3) DOMESTIC EDIBLE USE- The term ‘domestic edible use’ means use for milling to produce domestic food peanuts (other than those described in paragraph (2)) and use on a farm, except that the Secretary may exempt from this definition seeds of peanuts that are used to produce peanuts excluded under section 358d(c), are unique strains, and are not commercially available.

      ‘(4) QUOTA PEANUTS- The term ‘quota peanuts’ means, for any marketing year, any peanuts produced on a farm having a farm poundage quota, as determined in subsection (b), that--

        ‘(A) are eligible for domestic edible use as determined by the Secretary;

        ‘(B) are marketed or considered marketed from a farm; and

        ‘(C) do not exceed the farm poundage quota of the farm for the year.

    ‘(f) CROPS- Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 2002 crops of peanuts.’.

    (b) SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA- Section 358b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b) is amended to read as follows:

‘SEC. 358b. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA FOR PEANUTS.

    ‘(a) IN GENERAL-

      ‘(1) AUTHORITY- Subject to such terms, conditions, or limitations as the Secretary may prescribe, the owner, or operator with the permission of the owner, of any farm for which a farm poundage quota has been established under this Act may sell or lease all or any part of the poundage quota to any other owner or operator of a farm within the same State if not less than 90 percent of the basic quota (the farm quota exclusive of temporary quota transfers), plus any poundage quota transferred to the farm under this subsection, has been planted or considered planted on the farm from which the quota is to be transfered. The transfer shall be under such terms and conditions as the Secretary may by regulation prescribe. In the case of a fall transfer or a transfer after the normal planting season by a cash lessee, the landowner shall not be required to sign the transfer authorization. A fall transfer or a transfer after the normal planting season may be made not later than 72 hours after the peanuts that are the subject of the transfer are inspected and graded. Fall transfers of quota pounds shall not affect the farm quota history for the transferring or receiving farm and shall not result in reducing the farm poundage quota on the transferring farm.

      ‘(2) TRANSFERS IN STATES WITH SMALL QUOTAS- Notwithstanding paragraph (1) and (2), in the case of any State for which the poundage quota allocated to the State was less than 10,000 tons for the preceding year’s crop, all or any part of a farm poundage quota may be transferred by sale or lease or otherwise from a farm to another farm in any State.

    ‘(b) CONDITIONS- Transfers (including transfer by sale or lease) of farm poundage quotas under this section shall be subject to all of the following conditions:

      ‘(1) LIENHOLDERS- No transfer of the farm poundage quota from a farm subject to a mortgage or other lien shall be permitted unless the transfer is agreed to by the lienholders, except that no such agreement shall be necessary in the event of all lease, if the operator had the lienholder’s agreement for a previous spring cash lease.

      ‘(2) TILLABLE CROPLAND- No transfer of the farm poundage quota shall be permitted if the county committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) determines that the receiving farm does not have adequate tillable cropland to produce the farm poundage quota.

      ‘(3) RECORD- No transfer of the farm poundage quota shall be effective until a record thereof is filed with the county committees of the counties from which transferred and to which transferred and the committees determined that the transfer complies with this section.

      ‘(4) OTHER TERMS- Such other terms and conditions that the Secretary may by regulation prescribe.

    ‘(c) CROPS- Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 2002 crops of peanuts.’.

    (c) MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEANUTS- Section 358e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359a) is amended to read as follows:

‘SEC. 358e. MARKETING PENALTIES AND DISPOSITION OF ADDITIONAL PEANUTS.

    ‘(a) Marketing Penalties-

      ‘(1) In general-

        ‘(A) MARKETING PEANUTS IN EXCESS OF QUOTA- The marketing of any peanuts for domestic edible use in excess of the farm poundage quota for the farm on which the peanuts are produced shall be subject to penalty at a rate equal to 140 percent of the support price for quota peanuts for the marketing year in which the marketing occurs. The penalty shall not apply to the marketing of breeder or Foundation seed peanuts grown and marketed by a publicly owned agricultural experiment station (including a State operated seed organization) under such regulations as the Secretary may prescribe.

        ‘(B) MARKETING YEAR- For purposes of this section, the marketing year for peanuts shall be the 12-month period beginning August 1 and ending July 31.

        ‘(C) MARKETING ADDITIONAL PEANUTS- The marketing of any additional peanuts from a farm shall be subject to the same penalty unless the peanuts, in accordance with regulations established by the Secretary, are--

          ‘(i) placed under loan at the additional loan rate in effect for the peanuts under section 108B of the Agricultural Act of 1949 and not redeemed by the producers;

          ‘(ii) marketed through an area marketing association designated pursuant to section 108B(c)(1) of the Agricultural Act of 1949; or

          ‘(iii) marketed under contracts between handlers and producers pursuant to subsection (f).

      ‘(2) PAYER- The penalty shall be paid by the person who buys or otherwise acquires the peanuts from the producer or, if the peanuts are marketed by the producer through an agent, the penalty shall be paid by the agent. The person or agent may deduct an amount equivalent to the penalty from the price paid to the producer.

      ‘(3) FAILURE TO COLLECT- If the person required to collect the penalty fails to collect the penalty, the person and all persons entitled to share in the peanuts marketed from the farm or the proceeds thereof shall be jointly and severally liable with such persons who failed to collect the penalty for the amount of the penalty.

      ‘(4) APPLICATION OF QUOTA- Peanuts produced in a calendar year in which farm poundage quotas are in effect for the marketing year beginning therein shall be subject to the quotas even though the peanuts are marketed prior to the date on which the marketing year begins.

      ‘(5) FALSE INFORMATION- If any producer falsely identifies, fails to accurately certify planted acres, or fails to account for the disposition of any peanuts produced on the planted acres, a quantity of peanuts equal to the greater of the farm’s average or actual yield, as determined by the Secretary, times the planted acres, shall be deemed to have been marketed in violation of permissible uses of quota and additional peanuts. Any penalty payable under this paragraph shall be paid and remitted by the producer.

      ‘(6) UNINTENTIONAL VIOLATIONS- The Secretary shall authorize, under such regulations as the Secretary shall issue, the county committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or reduce marketing penalties provided for under this subsection in cases which the committees determine that the violations that were the basis of the penalties were unintentional or without knowledge on the part of the parties concerned.

      ‘(7) DE MINIMIS VIOLATIONS- Errors in weight that do not exceed one-tenth of 1 percent in the case of any one marketing document shall not be considered to be marketing violations except in cases of fraud or conspiracy.

    ‘(b) Use of Quota and Additional Peanuts-

      ‘(1) QUOTA PEANUTS- Only quota peanuts may be retained for use as seed or for other uses on a farm. When peanuts are so retained, such retention shall be considered as marketings of quota peanuts, except that the Secretary may exempt from consideration as marketings of quota peanuts seeds of peanuts for the quantity involved that are used to produce peanuts excluded under section 358d(c), are unique strains, and are not commercially available.

      ‘(2) ADDITIONAL PEANUTS- Additional peanuts shall not be retained for use on a farm and shall not be marketed for domestic edible use, except as provided in subsection (g).

      ‘(3) SEED- Except as provided in paragraph (1), seed for planting of any peanut acreage in the United States shall be obtained solely from quota peanuts marketed or considered marketed for domestic edible use.

    ‘(c) MARKETING PEANUTS WITH EXCESS QUANTITY, GRADE, OR QUALITY- On a finding by the Secretary that the peanuts marketed from any crop for domestic edible use by a handler are larger in quantity or higher in grade or quality than the peanuts that could reasonably be produced from the quantity of peanuts having the grade, kernel content, the quality of the quota peanuts acquired by the handler from the crop for the marketing year, the handler shall be subject to a penalty equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts that the Secretary determines are in excess of the quantity, grade, or quality of the peanuts that could reasonably have been produced from the peanuts so acquired.

    ‘(d) Supervision of Handlers of Additional Peanuts-

      ‘(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall require that the handling and disposal of additional peanuts be supervised by agents of the Secretary or by area marketing associations designated pursuant to section 108B(c)(1) of the Agricultural Act of 1949.

      ‘(2) Supervision by nonhandlers-

        ‘(A) IN GENERAL- Supervision of the handling and disposal of additional peanuts by a handler shall not be required under paragraph (1) if the handler agrees in writing, prior to any handling or disposal of the peanuts, to comply with regulations that the Secretary shall issue.

        ‘(B) REGULATIONS- The regulations issued by the Secretary under subparagraph (A) shall include the following provisions:

          ‘(i) TYPES OF EXPORTED OR CRUSHED PEANUTS- Handlers of shelled or milled peanuts may export or crush peanuts classified by type in all of the following quantities:

            ‘(I) SOUND SPLIT KERNEL PEANUTS- Sound split kernel peanuts purchased by the handler as additional peanuts to which, under price support loan schedules, a mandated deduction with respect to the price paid to the producer of the peanuts would be applied due to the percentage of the sound splits.

            ‘(II) SOUND MATURE KERNEL PEANUTS- Sound mature kernel peanuts (which term includes sound split kernel peanuts and sound whole kernel peanuts) in an amount equal to the poundage of the peanuts purchased by the handler as additional peanuts, less the total poundage of sound split kernel peanuts described in subclause (I).

            ‘(III) REMAINDER- The remaining quantity of total kernel content of peanuts purchased by the handler as additional peanuts.

          ‘(ii) DOCUMENTATION- Handlers shall ensure that any additional peanuts exported or crushed are evidenced by onboard bills of lading or other appropriate documentation as may be required by the Secretary, or both.

          ‘(iii) LOSS OF PEANUTS- If a handler suffers a loss of peanuts as a result of fire, flood, or any other condition beyond the control of the handler, the portion of the loss allocated to contracted additional peanuts shall not be greater than the portion of the handler’s total peanut purchases for the year attributable to contracted additional peanuts purchased for export or crushing by the handler during the year.

          ‘(iv) Shrinkage allowance-

            ‘(I) IN GENERAL- The obligation of a handler to export or crush peanuts in quantities described in this subparagraph shall be reduced by a shrinkage allowance, to be determined by the Secretary, to reflect actual dollar value shrinkage experienced by handlers in commercial operations, except that the allowance shall not be less than 4 percent, except as provided in subclause (II).

            ‘(II) COMMON INDUSTRY PRACTICES- The Secretary may provide a lower shrinkage allowance for a handler who fails to comply with the restrictions on the use of peanuts, as may be specified by the Commodity Credit Corporation, to take into account common industry practices.

      ‘(3) ADEQUATE FINANCES AND FACILITIES- A handler shall submit to the Secretary adequate financial guarantees, as well as evidence of adequate facilities and assets, with the facilities under the control and operation of the handler, to ensure the handler’s compliance with the obligation to export peanuts.

      ‘(4) COMMINGLING OF LIKE PEANUTS- Quota and additional peanuts of like type and segregation or quality may, under regulations issued by the Secretary, be commingled and exchanged on a dollar value basis to facilitate warehousing, handling, and marketing.

      ‘(5) PENALTY-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), the failure by a handler to comply with regulations issued by the Secretary governing the disposition and handling of additional peanuts shall subject the handler to a penalty at a rate equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts involved in the violation.

        ‘(B) NONDELIVERY- A handler shall not be subject to a penalty for failure to export additional peanuts if the peanuts were not delivered to the handler.

      ‘(6) REENTRY OF EXPORTED PEANUTS-

        ‘(A) PENALTIES- If any additional peanuts or peanut products manufactured from additional peanuts exported by a handler are reentered into the United States in commercial quantities as determined by the Secretary, the importer thereof shall be subject to a penalty at a rate equal to 140 percent of the loan level for quota peanuts on the quantity of peanuts reentered.

        ‘(B) RECORDS- Each person, firm, or handler who imports peanuts into the United States shall maintain such records and documents as are required by the Secretary to ensure compliance with this subsection.

    ‘(e) SPECIAL EXPORT CREDITS-

      ‘(1) IN GENERAL- The Secretary shall, with due regard for the integrity of the peanut program, promulgate regulations that will permit any handler of peanuts who manufactures peanut products from domestic edible peanuts to export the products and receive credit for the fulfillment of export obligations for the peanut content of the products against which the export credits the handler may thereafter apply, up to the amount thereof, equivalent quantities of additional peanuts of the same type acquired by the handler and used in the domestic edible market. The peanuts so acquired for the domestic edible market as provided in this subsection shall be of the same crop year as the peanuts used in the manufacture of the products so exported.

      ‘(2) CERTIFICATION- Under such regulations, the Secretary shall require all handlers who are peanut product manufacturers to submit annual certifications of peanut product content on a product-by-product basis. Any changes in peanut product formulas as affecting peanut content shall be recorded within 90 days of the changes. The Secretary shall conduct an annual review of the certifications. The Secretary shall pursue all available remedies with respect to persons who fail to comply with this paragraph.

      ‘(3) RECORDS- The Secretary shall require handlers who are peanut product manufacturers to maintain and provide such documents as are necessary to ensure compliance with this subsection and to maintain the integrity of the peanut program.

    ‘(f) CONTRACTS FOR PURCHASE OF ADDITIONAL PEANUTS-

      ‘(1) IN GENERAL- Handlers may, under such regulations as the Secretary may issue, contract with producers for the purchase of additional peanuts for crushing or export, or both.

      ‘(2) Submission to secretary-

        ‘(A) CONTRACT DEADLINE- Any such contract shall be completed and submitted to the Secretary (or if designated by the Secretary, the area marketing association) for approval not later than September 15 of the year in which the crop is produced.

        ‘(B) EXTENSION OF DEADLINE- The Secretary may extend the deadline under subparagraph (A) by up to 15 days in response to damaging weather or related condition (as defined in section 112 of the Disaster Assistance Act of 1989 (7 U.S.C. 1421 et seq.)). The Secretary shall announce the extension no later than September 5 of the year in which the crop is produced.

      ‘(3) FORM- The contract shall be executed on a form prescribed by the Secretary. The form shall require such information as the Secretary determines appropriate to ensure the proper handling of the additional peanuts, including the identity of the contracting parties, the poundage, and category of the peanuts, the disclosure of any liens, and the intended disposition of the peanuts.

      ‘(4) INFORMATION FOR HANDLING AND PROCESSING ADDITIONAL PEANUTS- Notwithstanding any other provision of this section, any person wishing to handle and process additional peanuts as a handler shall submit to the Secretary (or if designated by the Secretary, the area marketing association), such information as may be required under subsection (d) by such date as prescribed by the Secretary so as to permit final action to be taken on the application by July 1 of each marketing year.

      ‘(5) TERMS- Each such contract shall contain the final price to be paid by the handler for the peanuts involved and a specific prohibition against the disposition of the peanuts for domestic edible or seed use.

      ‘(6) SUSPENSION OF RESTRICTIONS ON IMPORTED PEANUTS- Notwithstanding any other provision of this Act, if the President issues a proclamation under section 404(b) of the Uruguay Round Agreements Act expanding the quantity of peanuts subject to the in-quota rate of duty under a tariff-rate quota, or under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, temporarily suspending restrictions on the importation of peanuts, the Secretary shall, subject to such terms and conditions as the Secretary may prescribe, permit a handler, with the written consent of the producer, to purchase additional peanuts from any producer who contracted with the handler and to offer the peanuts for sale for domestic edible use.

    ‘(g) Marketing of Peanuts Owned or Controlled by the Commodity Credit Corporation-

      ‘(1) IN GENERAL- Subject to section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427), any peanuts owned or controlled by the Commodity Credit Corporation may be made available for domestic edible use, in accordance with regulations issued by the Secretary, so long as doing so does not result in substantially increased cost to the Commodity Credit Corporation. Additional peanuts received under loan shall be offered for sale for domestic edible use at prices not less than those required to cover all costs incurred with respect to the peanuts for such items as inspection, warehousing, shrinkage, and other expenses, plus--

        ‘(A) not less than 100 percent of the loan value of quota peanuts if the additional peanuts are sold and paid for during the harvest season on delivery by and with the written consent of the producer;

        ‘(B) not less than 105 percent of the loan value of quota peanuts if the additional peanuts are sold after delivery by the producer but not later than December 31 of the marketing year; or

        ‘(C) not less than 107 percent of the loan value of quota peanuts if the additional peanuts are sold later than December 31 of the marketing year.

      ‘(2) Acceptance of bids by area marketing associations-

        ‘(A) IN GENERAL- Except as provided in subparagraph (B), for the period from the date additional peanuts are delivered for loan to March 1 of the calendar year following the year in which the additional peanuts were harvested, the area marketing association designated pursuant to section 108B(c)(1) of the Agricultural Act of 1949 shall have sole authority to accept or reject lot list bids when the sales price, as determined under this subsection, equals or exceeds the minimum price at which the Community Credit Corporation may sell its stocks of additional peanuts.

        ‘(B) MODIFICATION- The area marketing association and the Community Credit Corporation may agree to modify the authority granted by subparagraph (A) to facilitate the orderly marketing of additional peanuts.

      ‘(3) PRODUCER MARKETING AND EXPENSES- Notwithstanding any other provision of this Act, the Secretary shall, in any determination required under subsections (a)(2) and (b)(1) of section 108B of the Agricultural Act of 1949, include any additional marketing expenses required by law, excluding the amount of any assessment required under the Omnibus Budget Reconciliation Act of 1990.

    ‘(h) ADMINISTRATION-

      ‘(1) INTEREST- The person liable for payment or collection of any penalty provided for in this section shall be liable also for interest thereon at a rate per annum equal to the rate per annum of interest that was charged the Commodity Credit Corporation by the Treasury of the United States on the date the penalty became due.

      ‘(2) DE MINIMIS QUANTITY- This section shall not apply to peanuts produced on any farm on which the acreage harvested for nuts is one acre or less if the producers who share in the peanuts produced on the farm do not share in the peanuts produced on any other farm.

      ‘(3) LIENS- Until the amount of the penalty provided by this section is paid, a lien on the crop of peanuts with respect to which the penalty is incurred, and on any subsequent crop of peanuts subject to farm poundage quotas in which the person liable for payment of the penalty has an interest, shall be in effect in favor of the United States.

      ‘(4) PENALTIES-

        ‘(A) PROCEDURES- Notwithstanding any other provision of law, the liability for and the amount of any penalty assessed under this section shall be determined in accordance with such procedures as the Secretary by regulation may prescribe. The facts constituting the basis for determining the liability for or amount of any penalty assessed under this section, when officially determined in conformity with the applicable regulations prescribed by the Secretary, shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government.

        ‘(B) JUDICIAL REVIEW- Nothing in this section shall be construed as prohibiting any court of competent jurisdiction from reviewing any determination made by the Secretary with respect to whether the determination was made in conformity with the applicable law and regulations.

        ‘(C) CIVIL PENALTIES- All penalties imposed under this section shall for all purposes be considered civil penalties.

      ‘(5) REDUCTION OF PENALTIES-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law and except as provided in subparagraph (B), the Secretary may reduce the amount of any penalty assessed against handlers under this section by any appropriate amount, including, in an appropriate case, eliminating the penalty entirely, if the Secretary finds that the violation on which the penalty is based was minor or inadvertent, and that the reduction of the penalty will not impair the operation of the peanut program.

        ‘(B) FAILURE TO EXPORT CONTRACTED ADDITIONAL PEANUTS- The amount of any penalty imposed on a handler under this section that resulted from the failure to export or crush contracted additional peanuts shall not be reduced by the Secretary.

    ‘(i) CROPS- Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 2002 crops of peanuts.’.

    (d) EXTENSION OF EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS- Subsection 358c(d) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358c(d)) is amended by striking ‘1991 through 1995’ and inserting ‘1996 through 2002’.

    (e) PRICE SUPPORT PROGRAM- Section 108B of the Agricultural Act of 1949 (7 U.S.C. 1445c-3) is amended to read as follows:

‘SEC. 108B. PRICE SUPPORT PROGRAM FOR PEANUTS.

    ‘(a) QUOTA PEANUTS-

      ‘(1) IN GENERAL- The Secretary shall make price support available to producers through loans, purchases, and other operations on quota peanuts for each crop.

      ‘(2) SUPPORT RATES- The national average quota support rate for each crop of quota peanuts shall be the national average quota support rate for the immediately preceding crop adjusted to reflect any increase or decrease during the calendar year immediately preceding the marketing year for the crop for which a level of support is being determined, in the national average cost of peanut production, excluding any change in the cost of land, and the cost of any assessments required under subsection (g), except that in no event shall the national average quota support rate be increased by more than 5 percent of the national average quota support rate for the preceding crop, nor be decreased by more than 5 percent of the national average quota support rate for the preceding crop.

      ‘(3) INSPECTION, HANDLING, OR STORAGE- The levels of support so announced shall not be reduced by any deductions for inspection, handling, or storage.

      ‘(4) LOCATION AND OTHER FACTORS- The Secretary may make adjustments for location of peanuts and such other factors as are authorized by section 403.

      ‘(5) ANNOUNCEMENT- The Secretary shall announce the level of support for quota peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the level of support is being determined.

    ‘(b) ADDITIONAL PEANUTS-

      ‘(1) IN GENERAL- The Secretary shall make price support available to producers through loans, purchases, or other operations on additional peanuts from each crop at such levels as the Secretary finds appropriate, taking into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets, except that the Secretary shall set the support rate on additional peanuts at a level estimated by the Secretary to ensure that there are no losses to the Commodity Credit Corporation on the sale or disposal of the peanuts.

      ‘(2) ANNOUNCEMENT- The Secretary shall announce the level of support for additional peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the level of support is being determined.

    ‘(c) Area Marketing Associations-

      ‘(1) Warehouse storage loans-

        ‘(A) IN GENERAL- In carrying out subsections (a) and (b), the Secretary shall make warehouse storage loans available in each of the three producing areas (described in section 1446.95 of title 7 of the Code of Federal Regulations (January 1, 1989)) to a designated area marketing association of peanut producers that is selected and approved by the Secretary and that is operated primarily for the purpose of conducting the loan activities. The Secretary may not make warehouse storage loans available to any cooperative that is engaged in operations or activities concerning peanuts other than those operations and activities specified in this section and sections 358d and 358e of the Agricultural Adjustment Act of 1938.

        ‘(B) ADMINISTRATIVE AND SUPERVISORY ACTIVITIES- The area marketing associations shall be used in administrative and supervisory activities relating to price support and marketing activities under this section and sections 358d and 358e of the Agricultural Adjustment Act of 1938.

        ‘(C) ASSOCIATION COSTS- Loans made to the association under this paragraph shall include, in addition to the price support value of the peanuts, such costs as the area marketing association reasonably may incur in carrying out its responsibilities, operations, and activities under this section and sections 358d and 358e of the Agricultural Adjustment Act of 1938.

      ‘(2) Pools for quota and additional peanuts-

        ‘(A) IN GENERAL- The Secretary shall require that each area marketing association establish pools and maintain complete and accurate records by area and segregation for quota peanuts handled under loan and for additional peanuts placed under loan, except that separate pools shall be established for Valencia peanuts produced in New Mexico. Peanuts physically produced outside the State of New Mexico shall not be eligible for entry into or participation in the New Mexico pools. Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing the pools.

        ‘(B) NET GAINS- Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following:

          ‘(i) QUOTA PEANUTS- For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool plus an amount from all additional pool gains equal to any loss on disposition of all peanuts in the pool for quota peanuts.

          ‘(ii) ADDITIONAL PEANUTS- For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts less any amount allocated to offset any loss on the pool for quota peanuts as provided in clause (i).

    ‘(d) LOSSES- Notwithstanding any other provision of this section:

      ‘(1) QUOTA PEANUTS PLACED UNDER LOAN- Any distribution of net gains on additional peanuts (other than net gains on additional peanuts in separate type pools established under subsection (c)(2)(A) for Valencia peanuts produced in New Mexico) shall be first reduced to the extent of any loss by the Commodity Credit Corporation on quota peanuts placed under loan.

      ‘(2) Quota loan pools-

        ‘(A) TRANSFERS FROM ADDITIONAL LOAN POOLS- The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool by such producer under section 358-1(b)(8) of the Agricultural Adjustment Act of 1938.

        ‘(B) OTHER LOSSES- Losses in area quota pools shall be offset by reducing the gains of any producer in such pool by the amount of pool gains attributed to the same producer from the sale of additional peanuts for export and domestic edible use.

    ‘(e) DISAPPROVAL OF QUOTAS- Notwithstanding any other provision of law, no price support may be made available by the Secretary for any crop of peanuts with respect to which poundage quotas have been disapproved by producers, as provided for in section 358-1(d) of the Agricultural Adjustment Act of 1938.

    ‘(f) Quality Improvement-

      ‘(1) PRICE SUPPORT PEANUTS- With respect to peanuts under price support loan, the Secretary shall--

        ‘(A) promote the crushing of peanuts at a greater risk of deterioration before peanuts of a lesser risk of deterioration;

        ‘(B) ensure that all Commodity Credit Corporation loan stocks of peanuts sold for domestic edible use must be shown to have been officially inspected by licensed Department of Agriculture inspectors both as farmer stock and shelled or cleaned in-shell peanuts;

        ‘(C) continue to endeavor to operate the peanut price support program so as to improve the quality of domestic peanuts and ensure the coordination of activities under the Peanut Administrative Committee established under Marketing Agreement No. 146, regulating the quality of domestically produced peanuts (under the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.)); and

        ‘(D) ensure that any changes made in the price support program as a result of this subsection requiring additional production or handling at the farm level shall be reflected as an upward adjustment in the Department of Agriculture loan schedule.

      ‘(2) EXPORTS AND OTHER PEANUTS- The Secretary shall require that all peanuts, including peanuts imported into the United States, meet all U.S. quality standards under Marketing Agreement No. 146 and that importers of such peanuts fully comply with inspection, handling, storage and processing requirements implemented under Marketing Agreement No. 146. The Secretary shall ensure that peanuts produced for the export market meet quality, inspection, handling, storage and processing requirements under Marketing Agreement No. 146.

    ‘(g) Marketing Assessment-

      ‘(1) IN GENERAL- The Secretary shall provide, by regulation, for a nonrefundable marketing assessment applicable to each crop of domestically-grown peanuts and peanuts produced outside the United States. The assessment shall be made in accordance with this subsection and shall be on a per pound basis in an amount equal to 1.2 percent of the applicable support rate under this subsection.

      ‘(2) First purchasers-

        ‘(A) IN GENERAL- Except as provided under paragraphs (4) and (5), the first purchaser of peanuts shall--

          ‘(i) collect from the producer a marketing assessment equal to the quantity of peanuts acquired multiplied by .65 percent of the applicable national average support rate;

          ‘(ii) pay, in addition to the amount collected under clause (i), a marketing assessment in an amount equal to the quantity of peanuts acquired multiplied by .55 percent of the applicable national average support rate; and

          ‘(iii) remit the amounts required under clauses (i) and (ii) to the Commodity Credit Corporation in a manner specified by the Secretary.

        ‘(B) DEFINITION- For purposes of this subsection, the term ‘first purchaser’ means a person acquiring peanuts from a producer, except that in the case of peanuts forfeited by a producer to the Commodity Credit Corporation, such term means the person acquiring the peanuts from the Commodity Credit Corporation.

      ‘(3) OTHER PEANUTS- Each importer of peanuts for domestic edible use produced outside of the United States shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to the product obtained by multiplying the number of pounds of peanuts imported by the importer by 1.2 percent of the national average support rate for domestic edible peanuts.

      ‘(4) OTHER PRIVATE MARKETINGS- In the case of a private marketing by a producer directly to a consumer through a retail or wholesale outlet or in the case of a marketing by the producer outside of the continental United States, the producer shall be responsible for the full amount of the assessment and shall remit the assessment by such time as is specified by the Secretary.

      ‘(5) LOAN PEANUTS- In the case of peanuts that are pledged as collateral for a price support loan made under this section, one-half of the assessment shall be deducted from the proceeds of the loan. The remainder of the assessment shall be paid by the first purchaser of the peanuts. For purposes of computing net gains on peanuts under this section, the reduction in loan proceeds shall be treated as having been paid to the producer.

      ‘(6) PENALTIES- If any person fails to collect or remit an assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

        ‘(A) the quantity of peanuts involved in the violation; by

        ‘(B) the national average quota peanut price support level for the applicable crop year.

      ‘(7) ENFORCEMENT- The Secretary may enforce this subsection in the courts of the United States.

    ‘(h) CROPS- Notwithstanding any other provision of law, this section shall be effective only for the 1996 through 2002 crops of peanuts.’.

    (f) REPORTS AND RECORDS- Effective only for the 1996 through 2002 crops of peanuts, the first sentence of section 373(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1373(a)) is amended by inserting before ‘all brokers and dealers in peanuts’ the following: ‘all producers engaged in the production of peanuts,’.

    (g) SUSPENSION OF CERTAIN PRICE SUPPORT PROVISIONS- Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1996 through 2002 crops of peanuts.

    (h) REGULATIONS- The Secretary of Agriculture shall issue such regulations as are necessary to carry out this Act and the amendments made by this Act. In issuing the regulations, the Secretary--

      (1) is encouraged to comply with subchapter II of chapter 5 of title 5, United States Code;

      (2) shall provide public notice through the Federal Register of any such proposed regulations; and

      (3) shall allow adequate time for written public comment prior to the formulation and issuance of any final regulations.

    (i) FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990- Title VIII of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3459) is amended--

      (1) in section 801 (104 Stat. 3459), by striking ‘1995’ and inserting ‘2000’;

      (2) in section 807 (104 Stat. 3478), by striking ‘1995’ and inserting ‘2000’; and

      (3) in section 808 (7 U.S.C. 1441 note), by striking ‘1995’ and inserting ‘2000’.

SEC. 206. SUGAR PROGRAM.

    (a) ASSURANCE OF SUGAR SUPPLY- Section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g) is amended to read as follows:

‘SEC. 206. ASSURANCE OF SUGAR SUPPLY.

    ‘(a) IN GENERAL- The price of each crop of sugar beets and sugarcane, respectively, shall be supported in accordance with this section.

    ‘(b) SUGARCANE- Subject to subsection (d), the Secretary shall support the price of domestically grown sugarcane through loans at 18 cents per pound for raw cane sugar.

    ‘(c) SUGAR BEETS- Subject to subsection (d), the Secretary shall support the price of each crop of domestically grown sugar beets through loans at the level provided for refined beet sugar produced from the 1995 crop of domestically grown sugar beets.

    ‘(d) ADJUSTMENT IN SUPPORT LEVEL-

      ‘(1) DOWNWARD ADJUSTMENT IN SUPPORT LEVEL-

        ‘(A) IN GENERAL- The Secretary shall decrease the support price of domestically grown sugarcane and sugar beets from the price determined for the preceding crop, as established under this section, if negotiated reductions in export subsidies and domestic subsidies provided for sugar of the European Union and other major sugar growing, producing, and exporting countries (‘major countries’) in the aggregate exceed the commitments made as part of the Uruguay Round Agreements.

        ‘(B) EXTENT OF REDUCTION- The Secretary shall not reduce the support price under this section below a level that provides an equal measure of support to that provided by any other major country or customs union based on an examination of both domestic and export subsidies subject to reduction in the Agreement on Agriculture referenced in 19 U.S.C. 3511(d)(2).

        ‘(C) MAJOR COUNTRIES- For purposes of this subsection, the term ‘major countries’ includes all countries allocated a share of the tariff rate quota for imported sugars and syrups by the United States Trade Representative pursuant to additional U.S. note 5 of chapter 17 of the Harmonized Tariff Schedule, all countries of the European Union, and the People’s Republic of China.

      ‘(2) INCREASES IN SUPPORT LEVEL- The Secretary may increase the support level for each crop of domestically grown sugarcane and sugar beets from the level determined for the preceding crop based on such factors as the Secretary determines appropriate, including changes (during the 2 crop years immediately preceding the crop year for which the determination is made) in the cost of sugar products, the cost of domestic sugar production, the amount of any applicable assessments, and other factors or circumstances that may adversely affect domestic sugar production.

    ‘(e) LOAN TYPE; PROCESSOR ASSURANCES-

      ‘(1) IN GENERAL- Subject to paragraph (2), the Secretary shall carry out this section through the use of recourse loans.

      ‘(2) MODIFICATION- During any fiscal year in which the tariff rate quota for imports of sugar into the United States is set at or is increased to a level that exceeds the minimum level for such imports committed to by the United States under the Agreement on Agriculture contained in the Uruguay Round of Agreements of the General Agreement on Tariffs and Trade, the Secretary shall carry out this section by making available nonrecourse loans. Any recourse loan previously made available by the Secretary under this section during such fiscal year

shall be modified by the Secretary into a nonrecourse loan.

      ‘(3) PROCESSOR ASSURANCES- In order to effectively support the prices of sugar beets and sugarcane received by the producer, the Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate that, if the Secretary is required under paragraph (2) to make nonrecourse loans available, or modify recourse loans into nonrecourse loans, each producer served by the processor will receive the appropriate minimum payment for sugar beets and sugarcane delivered by the producer, as determined by the Secretary.

    ‘(f) ANNOUNCEMENTS- In order to ensure the efficient administration of the program under this section and the effective support of the price of sugar, the Secretary shall announce the type of loans available and the loan rates for beet sugar and cane sugar for any fiscal year under this section as far in advance as is practicable.

    ‘(g) LOAN TERM-

      ‘(1) IN GENERAL- Except as provided in paragraph (2) and subsection (h), loans under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the end of 3 months.

      ‘(2) EXTENSION- The maturity of a loan under this section may be extended for up to 2 additional 3-month periods, at the option of the borrower, upon written request to the Commodity Credit Corporation. The maturity of a loan may not be extended under this paragraph beyond the end of the fiscal year.

    ‘(h) SUPPLEMENTARY LOANS- Subject to subsection (d), the Secretary shall make available to eligible processors price support loans with respect to sugar processed from sugar beets and sugarcane harvested in the last 3 months of a fiscal year. Such loans shall mature at the end of the fiscal year. The processor may repledge the sugar as collateral for a price support loan in the subsequent fiscal year, except that the second loan shall--

      ‘(1) be made at the loan rate in effect at the time the second loan is made; and

      ‘(2) mature in not more than 9 months less the quantity of time that the first loan was in effect.

    ‘(i) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.

    ‘(j) MARKETING ASSESSMENTS- The following assessments shall be collected with respect to all sugar marketed within the United States during the 1996 through 2003 fiscal years:

      ‘(1) BEET SUGAR- The first seller of beet sugar produced from sugar beets or sugar beet molasses, or refined sugar refined outside of the United States, shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.1794 percent of the loan level established under subsection (b) per pound of sugar marketed.

      ‘(2) CANE SUGAR- The first seller of raw cane sugar produced from sugarcane or sugarcane molasses, shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to 1.1 percent of the loan level established under subsection (b) per pound of sugar marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing).

      ‘(3) COLLECTION-

        ‘(A) TIMING- Marketing assessments required under this subsection shall be collected and remitted to the Commodity Credit Corporation within 30 days of the date that the sugar is marketed.

        ‘(B) MANNER- Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.

      ‘(4) PENALTIES- If any person fails to remit an assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying--

        ‘(A) the quantity of sugar involved in the violation; by

        ‘(B) the loan level for the applicable crop of sugarcane or sugar beets from which the sugar is produced.

    For the purposes of this paragraph, refined sugar shall be treated as produced from sugar beets.

      ‘(5) ENFORCEMENT- The Secretary may enforce this subsection in the courts of the United States.

      ‘(6) REGULATIONS- The Secretary shall promulgate regulations to carry out this subsection.

    ‘(k) Information Reporting-

      ‘(1) DUTY OF PROCESSORS AND REFINERS TO REPORT- All sugarcane processors, cane sugar refiners, and sugar beet processors shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.

      ‘(2) DUTY OF PRODUCERS TO REPORT- In order to efficiently and effectively carry out the program under this section, the Secretary may require a producer of sugarcane or sugar beets to report, in the manner prescribed by the Secretary, the producer’s sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively.

      ‘(3) PENALTY- Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.

      ‘(4) MONTHLY REPORTS- Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.

    ‘(l) SUGAR ESTIMATES-

      ‘(1) DOMESTIC REQUIREMENT- Before the beginning of each fiscal year, the Secretary shall estimate the domestic sugar requirement of the United States equal to Total Estimated Disappearance minus the quantity of sugar that will be available from carry-in stocks.

      ‘(2) TOTAL DISAPPEARANCE- For the purposes of this subsection, the term ‘total estimated disappearance’ means the quantity of sugar, as estimated by the Secretary, that will be consumed in the United States during the fiscal year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in sugar containing products) plus the quantity of sugar that would provide for adequate carryover stocks.

      ‘(3) QUARTERLY REESTIMATES- The Secretary shall make quarterly reestimates of sugar consumption, stocks, production, and imports for a fiscal year no later than the beginning of each of the second through fourth quarters of the fiscal year.

    ‘(m) DEFINITION OF MARKET- For purposes of this section, the term ‘market’ means to sell or otherwise dispose of in commerce in the United States (including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process) and deliver to a buyer.

    ‘(n) CROPS- This section shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.’.

    (b) CONFORMING AMENDMENT- Part VII ob subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa, et seq.) is repealed.

SEC. 207. EFFECT OF AMENDMENTS ON 1991 THROUGH 1995 CROPS.

    The amendments made by this tile shall not affect the authority of the Secretary of Agriculture to carry out a price support, production adjustment, or payment program for any of the 1991 through 1995 crops of an agricultural commodity established under a provision of law as in effect immediately before the enactment of this Act.

TITLE III--GENERAL COMMODITY PROVISIONS

SEC. 301. EXTENSION OF SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY.

    Section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 302. EXTENSION OF DEFICIENCY AND LAND DIVERSION PAYMENTS.

    Section 114 of the Agricultural Act of 1949 (7 U.S.C. 1445j) is amended--

      (1) in subsections (a)(1) and (c), by striking ‘1997’ each place it appears and inserting ‘2002’; and

      (2) in subsection (b), by striking ‘1995’ and inserting ‘2002’.

SEC. 303. EXTENSION OF AUTHORITY TO ADJUST ESTABLISHED PRICES.

    Section 402(b) of the Agricultural Act of 1949 (7 U.S.C. 1422(b)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 304. EXTENSION OF LIMITATION ON ADJUSTMENTS OF SUPPORT PRICES.

    Section 403(c) of the Agricultural Act of 1949 (7 U.S.C. 1423(c)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 305. EXTENSION OF OPTION TO EXTEND PROGRAMS.

    Section 406(b) of the Agricultural Act of 1949 (7 U.S.C. 1426(b)) is amended--

      (1) by striking ‘1995’ each place it appears and inserting ‘2002’;

      (2) by striking ‘1996’ each place it appears and inserting ‘2003’; and

      (3) in paragraph (4), by striking ‘November 28, 1990’ and inserting ‘January 1, 1995’.

SEC. 306. REFERENCES TO TERMS REGARDING PRICE SUPPORT.

    Section 408(k)(3) of the Agricultural Act of 1949 (7 U.S.C. 1428(k)(3)) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 307. EXTENSION OF ACREAGE BASE AND YIELD SYSTEM.

    Title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) is amended--

      (1) in subsections (c)(3) and (h)(2)(A) of section 503 (7 U.S.C. 1463), by striking ‘1997’ each place it appears and inserting ‘2002’;

      (2) in paragraphs (1) and (2) of section 505(b) (7 U.S.C. 1465(b)), by striking ‘1997’ each place it appears and inserting ‘2002’; and

      (3) in section 509 (7 U.S.C. 1469), by striking ‘1997’ and inserting ‘2002’.

SEC. 308. NORMALLY PLANTED ACREAGE.

    Section 1001 of the Food and Agriculture Act of 1977 (7 U.S.C. 1309) is amended in subsections (a), (b)(1), and (c) by striking ‘1995’ each place it appears and inserting ‘2002’.

SEC. 309. EXTENSION OF NATIONAL AGRICULTURAL COST OF PRODUCTION STANDARDS REVIEW BOARD.

    Section 1014 of the Agriculture and Food Act of 1981 (7 U.S.C. 4110) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 310. EXTENSION OF PAYMENT LIMITATIONS.

    Title X of the Food Security Act of 1985 (Public Law 99-198; 99 Stat. 1444) is amended--

      (1) in paragraphs (1)(A), (1)(B), and (2)(A) of section 1001 (7 U.S.C. 1308), by striking ‘1997’ each place it appears and inserting ‘2002’; and

      (2) in section 1001C(a) (7 U.S.C. 1308-3(a)), by striking ‘1997’ both places it appears and inserting ‘2002’.

SEC. 311. EXTENSION OF REQUIREMENTS FOR NOTICE AND PUBLIC PARTICIPATION IN SECRETARY DETERMINATIONS.

    Section 1017(b) of the Food Security Act of 1985 (7 U.S.C. 1385 note) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 312. DETERMINATION OF NORMAL SUPPLY.

    Section 1019 of the Food Security Act of 1985 (7 U.S.C. 1310a) is amended by striking ‘1995’ and inserting ‘2002’.

SEC. 313. EXTENSION OF OPTIONS PILOT PROGRAM.

    The Options Pilot Program Act of 1990 (subtitle E of title XI of Public Law 101-624; 104 Stat. 3518; 7 U.S.C. 1421 note) is amended--

      (1) in subsections (a) and (b) of section 1153, by striking ‘1995’ each place it appears and inserting ‘2002’; and

      (2) in section 1154(b)(1)(A), by striking ‘1995’ both places it appears and inserting ‘2002’.

TITLE IV--REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM

SEC. 401. REPEAL OF EMERGENCY LIVESTOCK FEED ASSISTANCE PROGRAM.

    (a) REPEAL- The Emergency Livestock Feed Assistance Act of 1988 (title VI of the Agricultural Act of 1949; 7 U.S.C. 1471-1471j) is repealed.

    (b) EFFECT OF REPEAL ON APPROVED APPLICATIONS FOR ASSISTANCE- The repeal of the Emergency Livestock Feed Assistance Act of 1988 by subsection (a) shall not affect the provision of payments or benefits under such Act pursuant to a completed application approved by the Secretary of Agriculture before the date of the enactment of this Act. The Emergency Livestock Feed Assistance Act of 1988, as in effect on the day before the date of the enactment of this Act, shall continue to apply to the provision of payments or benefits pursuant to such an application.

TITLE V--FEDERAL CROP INSURANCE

SEC. 501. CONVERSION OF CATASTROPHIC RISK PROTECTION PROGRAM TO A VOLUNTARY PROGRAM.

    Section 508(b)(7) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) is amended--

      (1) by redesignating subparagraph (B) as subparagraph (C); and

      (2) by inserting after subparagraph (A) the following new subparagraph:

        ‘(B) EXCEPTION- Notwithstanding subparagraph (A), a producer may decline to obtain catastrophic risk protection, yet remain eligible for any price support or production adjustment program, the conservation reserve program, or any benefit described in section 371 of the Consolidated Farm and Rural Development Act, if the producer agrees in writing to waive any eligibility for emergency crop loss assistance in connection with losses to any crop for which the producer declines to obtain catastrophic risk protection.’.

TITLE VI--MISCELLANEOUS PROGRAMS

SEC. 601. REDUCTION IN FUNDING LEVELS FOR EXPORT ENHANCEMENT PROGRAM.

    Section 301(e) of the Trade Act of 1978 (7 U.S.C. 5651(e)) is amended by striking paragraph (1) and inserting the following new paragraph:

      ‘(1) IN GENERAL- To carry out the program established under this section, the Commodity Credit Corporation shall make available--

        ‘(A) for each of the fiscal years 1991 through 1995, not less than $500,000,000 of the funds or commodities of the Commodity Credit Corporation; and

        ‘(B) for each of the fiscal years 1996 through 2002, not more than $400,000,000 of the funds or commodities of the Commodity Credit Corporation.’.

SEC. 602. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.

    Title XII of the Food Security Act of 1985 is amended by inserting after section 1236 (16 U.S.C. 3836) the following new section:

‘SEC. 1236A. SPENDING LIMITATIONS ON CONSERVATION RESERVE PROGRAM.

    ‘The Secretary shall ensure that expenditures under this subchapter for the conservation reserve program do not exceed the following amounts:

      ‘(1) $1,852,000,000 during fiscal year 1997.

      ‘(2) $1,385,000,000 during fiscal year 1998.

      ‘(3) $1,106,000,000 during fiscal year 1999.

      ‘(4) $918,000,000 during fiscal year 2000.

      ‘(5) $779,000,000 during fiscal year 2001.

      ‘(6) $753,000,000 during fiscal year 2002.’.

TITLE VII--COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

SEC. 701. ESTABLISHMENT.

    There is hereby established a commission to be known as the ‘Commission on 21st Century Production Agriculture’ (hereinafter in this title referred to as the ‘Commission’).

SEC. 702. COMPOSITION.

    (a) APPOINTMENT- The Commission shall be composed of 11 members, appointed as follows:

      (1) Three members shall be appointed by the President.

      (2) Four members shall be appointed by the Chairman of the Committee on Agriculture of the House of Representatives in consultation with the ranking minority member of the Committee.

      (3) Four members shall be appointed by the Chairman of the Committee on Agriculture, Nutrition, and Forestry of the Senate in consultation with the ranking minority member of the Committee.

    (b) QUALIFICATIONS- The members of the Commission shall be appointed from among persons having knowledge and experience in agricultural production, marketing, finance, or trade.

    (c) TERM OF MEMBERS; VACANCIES- Members of the Commission shall be appointed for the life of the Commission. A vacancy on the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment was made.

    (d) TIME FOR APPOINTMENT; FIRST MEETING- The members of the Commission shall be appointed not later than October 1, 1997. The Commission shall convene its first meeting to carry out its duties under this title 30 days after six members of the Commission have been appointed.

    (e) CHAIRMAN- The chairman of the Commission shall be designated jointly by the Chairman of the Committee on Agriculture of the House of Representatives and the Chairman of the Committee on Agriculture, Nutrition, and Forestry of the Senate from among the members of the Commission.

SEC. 703. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION AGRICULTURE.

    (a) INITIAL REVIEW- The Commission shall conduct a comprehensive review of changes in the condition of production agriculture in the United States since the date of the enactment of this Act and the extent to which such changes are the result of the amendments made by this Act. The review shall include the following:

      (1) An assessment of the success of farm programs under the Agricultural Act of 1949 in supporting the economic viability of farming in the United States.

      (2) An assessment of the food security situation in the United States in the areas of trade, consumer prices, international competitiveness of United States production agriculture, food supplies, and humanitarian relief.

      (3) An assessment of the changes in farm land values and agricultural producer incomes since the date of the enactment of this Act.

      (4) An assessment of the extent to which regulatory relief for agricultural producers has been enacted and implemented, including the application of cost/benefit principles in the issuance of agricultural regulations.

      (5) An assessment of the extent to which tax relief for agricultural producers has been enacted in the form of capital gains tax reductions, estate tax exemptions, and mechanisms to average tax loads over high and low income years.

      (6) An assessment of the effect of any Government interference in agricultural export markets, such as the imposition of trade embargoes, and the degree of implementation and success of international trade agreements.

    (b) SUBSEQUENT REVIEW- The Commission shall conduct a comprehensive review of the future of production agriculture in the United States and the appropriate role of the Federal Government in support of production agriculture. The review shall include the following:

      (1) An assessment of changes in the condition of production agriculture in the United States since the initial review conducted under subsection (a).

      (2) Identification of the appropriate future relationship of the Federal Government with production agriculture after 2002.

      (3) An assessment of the manpower and infrastructure requirements of the Department of Agriculture necessary to support the future relationship of the Federal Government with production agriculture.

    (c) RECOMMENDATIONS- In carrying out the subsequent review under subsection (b), the Commission shall develop specific recommendations for legislation to achieve the appropriate future relationship of the Federal Government with production agriculture identified under subsection (a)(2).

SEC. 704. REPORTS.

    (a) REPORT ON INITIAL REVIEW- Not later than January 1, 1999, the Commission shall submit to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report containing the results of the initial review conducted under section 703(a).

    (b) REPORT ON SUBSEQUENT REVIEW- Not later than January 1, 2001, the Commission shall submit to the President and the congressional committees specified in subsection (a) a report containing the results of the subsequent review conducted under section 703(b).

SEC. 705. POWERS.

    (a) HEARINGS- The Commission may, for the purpose of carrying out this title, conduct such hearings, sit and act at such times, take such testimony, and receive such evidence, as the Commission considers appropriate.

    (b) ASSISTANCE FROM OTHER AGENCIES- The Commission may secure directly from any department or agency of the Federal Government such information, relevant to its duties under this title, as may be necessary to carry out such duties. Upon request of the chairman of the Commission, the head of the department or agency shall, to the extent permitted by law, furnish such information to the Commission.

    (c) MAIL- The Commission may use the United States mails in the same manner and under the same conditions as the departments and agencies of the Federal Government.

    (d) ASSISTANCE FROM SECRETARY- The Secretary of Agriculture shall provide to the Commission appropriate office space and such reasonable administrative and support services as the Commission may request.

SEC. 706. COMMISSION PROCEDURES.

    (a) MEETINGS- The Commission shall meet on a regular basis (as determined by the chairman) and at the call of the chairman or a majority of its members.

    (b) QUORUM- A majority of the members of the Commission shall constitute a quorum for the transaction of business.

SEC. 707. PERSONNEL MATTERS.

    (a) COMPENSATION- Each member of the Commission shall serve without compensation, but shall be allowed travel expenses including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, when engaged in the performance of Commission duties.

    (b) STAFF- The Commission shall appoint a staff director, who shall be paid at a rate not to exceed the maximum rate of basic pay under section 5376 of title 5, United States Code, and such professional and clerical personnel as may be reasonable and necessary to enable the Commission to carry out its duties under this title without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title, or any other provision of law, relating to the number, classification, and General Schedule rates. No employee appointed under this subsection (other than the staff director) may be compensated at a rate to exceed the maximum rate applicable to level 15 of the General Schedule.

    (c) DETAILED PERSONNEL- Upon request of the chairman of the Commission, the head of any department or agency of the Federal Government is authorized to detail, without reimbursement, any personnel of such department or agency to the Commission to assist the Commission in carrying out its duties under this section. The detail of any such personnel may not result in the interruption or loss of civil service status or privilege of such personnel.

SEC. 708. TERMINATION OF COMMISSION.

    The Commission shall terminate upon submission of the final report required by section 704.