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Subtitle D—Environmental Conservation

Acreage Reserve Program Sec. 331. Environmental conservation acre

age reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
Sec. 334. Environmental quality incentives

program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.
Subtitle E-Conservation Funding and

Administration
Sec. 341. Conservation funding and adminis-

tration. Sec. 342. State technical committees. Sec. 343. Public notice and comment for re

visions to certain State tech

nical guides. Subtitle F-National Natural Resources

Conservation Foundation Sec. 351. Short title. Sec. 352. Definitions. Sec. 353. National Natural Resources Con

servation Foundation. Sec. 354. Composition and operation, Sec. 355. Officers and employees. Sec. 356. Corporate powers and obligations

of the Foundation. Sec. 357. Administrative services and sup

port. Sec. 358. Audits and petition of Attorney

General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.

Subtitle G-Forestry
Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection,

management, and improvement

of National Forest System. Sec. 373. Forestry incentives program. Sec. 374. Optional State grants for forest

legacy program. Subtitle H-Miscellaneous Conservation

Provisions Sec. 381. Conservation activities of Com

modity Credit Corporation. Sec. 382. Floodplain easements. Sec. 383. Resource conservation and develop

ment program. Sec. 384. Repeal of report requirement. Sec. 385. Flood risk reduction. Sec. 386. Conservation of private grazing

land. Sec. 387. Wildlife habitat incentives pro

gram. Sec. 388. Farmland protection program. Sec. 389. Interim moratorium on bypass

flows. Sec. 390. Everglades ecosystem restoration. Sec. 391. Agricultural air quality research

oversight. TITLE IV-NUTRITION ASSISTANCE Sec. 401. Food stamp program. Sec. 402. Commodity distribution program;

commodity supplemental food

program. Sec. 403. Emergency food assistance pro

gram. Sec. 404. Soup kitchen and food bank pro

gram. Sec. 405. National commodity processing. TITLE V-AGRICULTURAL PROMOTION Subtitle A-Commodity Promotion and

Evaluation Sec. 501. Commodity promotion and evalua

tion. Subtitle B—Issuance of Orders for Pro

motion, Research, and Information Activi

ties Regarding Agricultural Commodities Sec. 511. Short title. Sec. 512. Findings and purpose. Sec. 513. Definitions. Sec. 514. Issuance of orders. Sec. 515. Required terms in orders. Sec. 516. Permissive terms in orders.

Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to sub-

poena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
Sec. 526. Authorization of appropriations.

Subtitle C-Canola and Rapeseed
Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to sub-

poena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.

Subtitle D—Kiwifruit
Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to sub-

poena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.

Subtitle E-Popcorn
Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to sub-

poena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.

Subtitle F-Miscellaneous
Sec. 591. Maintenance of records for honey

promotion program.

TITLE VI–CREDIT Subtitle A-Farm Ownership Loans Sec. 601. Limitation on direct farm owner

ship loans. Sec. 602. Purposes of loans. Sec. 603. Soil and water conservation and

protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.

Subtitle B—Operating Loans
Sec. 611. Limitation on direct operating

loans. Sec. 612. Purposes of operating loans. Sec. 613. Participation in loans. Sec. 614. Line-of-credit loans. Sec. 615. Insurance of operating loans. Sec. 616. Special assistance for beginning

farmers and ranchers. Sec. 617. Limitation on period for which bor

rowers are eligible for guaran

teed assistance.

Subtitle C-Emergency Loans Sec. 621. Hazard insurance requirement. Sec. 622. Narrowing of authority to waive

application of the credit elsewhere test.

Sec. 623. Linking of emergency loans for

crop or livestock changes to

natural disasters. Sec. 624. Maximum emergency loan indebt

edness. Sec. 625. Establishment of date for emer

gency loan asset valuation. Sec. 626. Insurance of emergency loans.

Subtitle D-Administrative Provisions Sec. 631. Temporary authority to enter into

contracts. Sec. 632. Use of collection agencies. Sec. 633. Notice of loan service programs. Sec. 634. Clarification of written statement

required of borrowers. Sec. 635. Annual review of the credit his

tory, business operation, and continued eligibility of a bor

rower. Sec. 636. Extension of veterans preference. Sec. 637. Verification of the credit elsewhere

test. Sec. 638. Sale of property. Sec. 639. Easements on inventoried property. Sec. 640. Definitions. Sec. 641. Authorization for loans. Sec. 642. Contracts on loan security prop

erties. Sec. 643. List of certified lenders and inven

tory property demonstration

project. Sec. 644. Homestead property. Sec. 645. Restructuring. Sec. 646. Transfer of inventory land for con

servation purposes. Sec. 647. Implementation of target partici

pation rates. Sec. 648. Delinquent borrowers. Sec. 649. Short form certification of farm

program borrower compliance. Sec. 650. Credit study.

Subtitle E-General Provisions Sec. 661. Conforming amendments. Sec. 662. Electronic filing of effective financ

ing statements under the clear title provisions of the Food Se

curity Act of 1985. Sec. 663. Effective date.

TITLE VII–RURAL DEVELOPMENT Subtitle A-Amendments to the Food, Agri

culture, Conservation, and Trade Act of 1990

CHAPTER 1–GENERAL PROVISIONS Sec. 701. Rural investment partnerships. Sec. 702. Water and waste facility financing. Sec. 703. Rural wastewater circuit rider pro

gram. Sec. 704. Telemedicine and distance learning

services in rural areas. Sec. 705. Limitation on authorization of ap

propriations for rural tech

nology grants. Sec. 706. Demonstration projects. Sec. 707. Monitoring the economic progress

of rural America. Sec. 708. Analysis by Office of Technology

Assessment. Sec. 709. Rural health infrastructure im

provement. Sec. 710. Census of agriculture. Sec. 711. Study of the transportation of fer

tilizer and agricultural chemi

cals to farmers. CHAPTER 2—ALTERNATIVE AGRICULTURAL

RESEARCH AND COMMERCIALIZATION Sec. 721. Definitions. Sec. 722. Alternative Agricultural Research

and Commercialization Cor

poration. Sec. 723. Board of directors, employees, and

facilities. Sec. 724. Research and development grants,

contracts, and agreements. Sec. 725. Commercialization assistance. Sec. 726. General rules regarding the provi

sion of assistance.

Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research

and Commercialization Revolv

ing Fund. Sec. 729. Procurement preferences for prod

ucts receiving Corporation as

sistance. Sec. 730. Business plan and feasibility study

and report. Subtitle B—Amendments to the Consolidated Farm and Rural Development Act

CHAPTER 1-GENERAL PROVISIONS Sec. 741. Water and waste facility loans and

grants. Sec. 742. Emergency community water as

sistance grant program for

small communities. Sec. 743. Emergency community water as

sistance grant program for

smallest communities. Sec. 744. Agricultural Credit Insurance

Fund. Sec. 745. Rural Development Insurance

Fund. Sec. 746. Insured watershed and resource

conservation and development

loans. Sec. 747. Rural industrialization assistance. Sec. 748. Administration. Sec. 749. Authorization of appropriations. Sec. 750. Testimony before congressional

committees. Sec. 751. Prohibition on use of loans for cer

tain purposes. Sec. 752. Rural development certified lend

ers program. Sec. 753. System for delivery of certain rural

development programs. Sec. 754. State rural economic development

review panel Sec. 755. Limited transfer authority of loan

amounts. Sec. 756. Allocation and transfer of loan

guarantee authority. Sec. 757. Water systems for rural and Native

villages in Alaska. Sec. 758. Application requirements relating

to water and waste disposal

loan and grant programs. Sec. 759. National Sheep Industry Improve

ment Center. Sec. 759 A. Cooperative agreements. Sec. 759B. Eligibility for grants to broad

casting systems. CHAPTER 2-RURAL COMMUNITY ADVANCEMENT

PROGRAM Sec. 761. Rural community advancement

program. Sec. 762. Simplified, uniform application for

assistance from all Federal

rural development programs. Sec. 763. Community facilities grant pro

gram.
Subtitle C—Amendments to the Rural

Electrification Act of 1936
Sec. 771. Purposes; investigations and re-

ports. Sec. 772. Authorization of appropriations. Sec. 773. Loans for electrical plants and

transmission lines. Sec. 774. Loans for electrical and plumbing

equipment. Sec. 775. Testimony on budget requests. Sec. 776. Transfer of functions of adminis

tration created by Executive

order. Sec. 777. Annual report. Sec. 778. Prohibition on restricting water

and waste facility services to

electric customers. Sec. 779. Telephone loan terms and condi

tions. Sec. 780. Privatization program. Sec. 781. Rural Business Incubator Fund.

Subtitle D-Miscellaneous Rural

Development Provisions Sec. 791. Interest rate formula.

Sec. 792. Grants for financially stressed

farmers, dislocated farmers,

and rural families. Sec. 793. Fund for Rural America. Sec. 794. Under Secretary of Agriculture for

Rural Economic and Community Development renamed the Under Secretary of Agriculture

for Rural Development. TITLE VIII–RESEARCH, EXTENSION,

AND EDUCATION Subtitle A-Modification and Extension of

Activities Under 1977 Act Sec. 801. Purposes of agricultural research,

extension, and education. Sec. 802. National Agricultural Research,

Extension, Education, and Eco

nomics Advisory Board. Sec. 803. Federal Advisory Committee Act

exemption for Federal-State co

operative programs. Sec. 804. Coordination and planning of agri

cultural research, extension,

and education. Sec. 805. Grants and fellowships for food and

agricultural sciences education. Sec. 806. Grants for research on the produc

tion and marketing of alcohols and industrial hydrocarbons from agricultural commodities

and forest products. Sec. 807. Policy research centers. Sec. 808. Human nutrition intervention and

health promotion research pro

gram. Sec. 809. Food and nutrition education pro

gram. Sec. 810. Purposes and findings relating to

animal health and disease re

search. Sec. 811. Animal health and disease con

tinuing research. Sec. 812. Animal health and disease national

or regional research. Sec. 813. Grant program to upgrade agricul

tural and food sciences facili

ties at 1890 land-grant colleges. Sec. 814. National research and training cen

tennial centers. Sec. 815. Programs for Hispanic-serving in

stitutions. Sec. 816. International agricultural research

and extension. Sec. 817. Authorization of appropriations for

agricultural research programs. Sec. 818. Authorization of appropriations for

extension education. Sec. 819. Supplemental and alternative crops

research. Sec. 820. Aquaculture assistance programs. Sec. 821. Authorization of appropriations for

rangeland research. Subtitle B—Modification and Extension of

Activities Under 1990 Act Sec. 831. Water quality research, education,

and coordination. Sec. 832. National genetics resources pro

gram. Sec. 833. National agricultural weather in

formation system. Sec. 834. Livestock product safety and in

spection program. Sec. 835. Plant genome mapping program. Sec. 836. Certain specialized research pro

grams. Sec. 837. Agricultural telecommunications

program. Sec. 838. National centers for agricultural

product quality research. Sec. 839. Red meat safety research center. Sec. 840. Indian reservation extension agent

program. Sec. 841. Assistive technology program for

farmers with disabilities. Sec. 842. National rural information center

clearinghouse. Sec. 843. Global climate change.

Subtitle C-Repeal of Certain Activities and

Authorities Sec. 851. Subcommittee on Food, Agricul

tural, and Forestry Research. Sec. 852. Joint Council on Food and Agricul

tural Sciences. Sec. 853. Agricultural Science and Tech

nology Review Board. Sec. 854. Animal Health Science Research

Advisory Board. Sec. 855. Resident instruction program at

1890 land-grant colleges. Sec. 856. Grants to States for international

trade development centers. Sec. 857. Rangeland research. Sec. 858. Composting research and extension

program. Sec. 859. Education program regarding han

dling of agricultural chemicals and agricultural chemical con

tainers. Sec. 860. Program administration regarding

sustainable agriculture re

search and education. Sec. 861. Research regarding production,

preparation processing, handling, and storage of agricul

tural products. Sec. 862. Plant and animal pest and disease

control program. Sec. 863. Certain specialized research pro

grams. Sec. 864. Commission on agricultural re

search facilities. Sec. 865. Special grant to study constraints

on agricultural trade. Sec. 866. Pilot project to coordinate food and

nutrition education programs. Sec. 867. Demonstration areas for rural eco

nomic development. Sec. 868. Technical advisory Committee re

garding global climate change. Sec. 869. Committee of nine under Hatch Act

of 1887. Sec. 870. Cotton crop reports. Sec. 871. Rural economic and business devel

opment and additional research grants under title V of Rural

Development Act of 1972. Sec. 872. Human nutrition research. Sec. 873. Grants to upgrade 1890 land-grant

college extension facilities. Sec. 874. Indian subsistence farming dem

onstration grant program. Subtitle D_Miscellaneous Research

Provisions Sec. 881. Critical agricultural materials re

search. Sec. 882. Memorandum of agreement regard

ing 1994 Institutions. Sec. 883. Smith-Lever Act funding for 1890

land-grant colleges, including

Tuskegee University. Sec. 884. Agricultural research facilities. Sec. 885. National competitive research ini

tiative. Sec. 886. Rural development research and

education. Sec. 887. Dairy goat research program. Sec. 888. Competitive grants for research to

eradicate and control brown citrus aphid and citrus tristeza

virus. Sec. 889. Stuttgart National Aquaculture

Research Center. Sec. 890. Expansion of authorities related to

National Arboretum. Sec. 891. Transfer of aquacultural research

center. Sec. 892. Use of remote sensing data and

other data to anticipate potential food, feed, and fiber shortages or excesses and to provide timely information to assist farmers with planting deci

sions. Sec. 893. Sense of Senate regarding methyl

bromide alternative research and extension activities.

Subtitle E-Research Authority After Fiscal

Year 1997 Sec. 897. Authorization of appropriations. Sec. 898. Activities subject to availability of

appropriations. TITLE IX_MISCELLANEOUS Subtitle A-Commercial Transportation of

Equine for Slaughter Sec. 901. Findings. Sec. 902. Definitions. Sec. 903. Regulation of commercial trans

portation of equine for slaugh

ter. Sec. 904. Limitation of authority to equine

for slaughter. Sec. 905. Effective date.

Subtitle B-General Provisions Sec. 911. Interstate quarantine. Sec. 912. Cotton classification services. Sec. 913. Plant variety protection for certain

tuber propagated plant vari

eties. Sec. 914. Swine health protection. Sec. 915. Designation of Mount Pleasant Na

tional Scenic Area. Sec. 916. Pseudorabies eradication program. Sec. 917. Collection and use of agricultural

quarantine and inspection fees. Sec. 918. Meat and poultry inspection. Sec. 919. Reimbursable agreements. Sec. 920. Overseas tort claims. Sec. 921. Operation of Graduate School of

Department of Agriculture as nonappropriated fund instru

mentality. Sec. 922. Student internship programs. Sec. 923. Conveyance of excess Federal per

sonal property. Sec. 924. Conveyance of land to White Oak

Cemetery. Sec. 925. Sale of land by the University of

Arkansas. Sec. 926. Designation of Dale Bumpers Small

Farms Research Center. Sec. 927. Department of Agriculture Wash

ington Area Strategic Space

Plan.
Sec. 928. Severability.
TITLE I-AGRICULTURAL MARKET

TRANSITION ACT
Subtitle A-Short Title, Purpose, and

Definitions
SEC. 101. SHORT TITLE AND PURPOSE.

(a) SHORT TITLE.—This title may be cited as the “Agricultural Market Transition Act”.

(b) PURPOSE.-It is the purpose of this title

(1) to authorize the use of binding production flexibility contracts between the United States and agricultural producers to support farming certainty and flexibility while ensuring continued compliance with farm conservation and wetland protection requirements;

(2) to make nonrecourse marketing assistance loans and loan deficiency payments available for certain crops;

(3) to improve the operation of farm programs for milk, peanuts, and sugar; and

(4) to establish a commission to undertake a comprehensive review of past and future production agriculture in the United States. SEC. 102. DEFINITIONS.

In this title:

(1) AGRICULTURAL ACT OF 1949.-Except in section 171, the term “Agricultural Act of 1949” means the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as in effect prior to the suspensions under section 171(b)(1).

(2) CONSIDERED PLANTED.-The term “considered planted” means acreage that is considered planted under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) and such other acreage as the Secretary considers fair and equitable.

(3) CONTRACT.-The terms “contract” and "production flexibility contract” mean production flexibility contract entered into under section 111.

(4) CONTRACT ACREAGE.—The term “contract acreage” means 1 or more crop acreage bases established for contract commodities under title V of the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) that would have been in effect for the 1996 crop (but for suspension under section 171(b)(1)).

(5) CONTRACT COMMODITY.-The term “contract commodity” means wheat, corn, grain sorghum, barley, oats, upland cotton, and rice.

(6) CONTRACT PAYMENT.—The term “contract payment” means a payment made under this subtitle pursuant to a contract.

(7) DEPARTMENT.-The term “Department" means the Department of Agriculture.

(8) EXTRA LONG STAPLE, COTTON.—The term "extra long staple cotton" means cotton that

(A) is produced from pure strain varieties of the Barbadense species or any hybrid thereof, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which United States upland cotton is not suitable and grown in irrigated cottongrowing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and

(B) is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.

(9) FARM PROGRAM PAYMENT YIELD.-The term “farm program payment yield” means the farm program payment yield established for the 1995 crop of a contract commodity under section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary shall adjust the farm program payment yield for the 1995 crop of a contract commodity to account for any additional yield payments made with respect to that crop under subsection (b)(2) of the section.

(10) LOAN COMMODITY.-The term “loan commodity” means each contract commodity, extra long staple cotton, and oilseed.

(11) OILSEED.—The term "oilseed” means a crop of soybeans, sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, or, if designated by the Secretary, other oilseeds.

(12) PRODUCER.—The term "producer means an owner, operator, landlord, tenant, or sharecropper who shares in the risk of producing a crop and who is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. In determining whether a grower of hybrid seed is a producer, the Secretary shall not take into consideration the existence of a hybrid seed contract.

(13) SECRETARY.-The term "Secretary" means the Secretary of Agriculture.

(14) STATE.-The term “State” means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States.

(15) UNITED STATES.—The term “United States”, when used in a geographical sense, means all of the States. Subtitle B-Production Flexibility Contracts SEC. 111. AUTHORIZATION FOR USE OF PRODUC

TION FLEXIBILITY CONTRACTS. (a) OFFER AND TERMS.—The Secretary shall offer to enter into a production flexibility contract with an eligible owner or producer described in subsection (b) on a farm containing eligible cropland. Under the terms of a contract, the owner or producer shall agree, in exchange for annual contract payments, to

(1) comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);

(2) comply with applicable wetland protection requirements under subtitle of title XII of the Act (16 U.S.C. 3821 et seq.);

(3) comply with the planting flexibility requirements of section 118; and

(4) use the land subject to the contract for an agricultural or related activity, but not for a nonagricultural commercial or industrial use, as determined by the Secretary.

(b) ELIGIBLE OWNERS AND PRODUCERS DESCRIBED.-The following producers and owners shall be eligible to enter into a contract:

(1) An owner of eligible cropland who assumes all or a part of the risk of producing a crop.

(2) A producer (other than an owner) on eligible cropland with a share-rent lease of the eligible cropland, regardless of the length of the lease, if the owner enters into the same contract.

(3) A producer (other than an owner) on eligible cropland who cash rents the eligible cropland under a lease expiring on or after September 30, 2002, in which case the owner is not required to enter into the contract.

(4) A producer (other than an owner) on eligible cropland who cash rents the eligible cropland under a lease expiring before September 30, 2002. The owner of the eligible cropland may also enter into the same contract. If the producer elects to enroll less than 100 percent of the eligible cropland in the contract, the consent of the owner is required.

(5) An owner of eligible cropland who cash rents the eligible cropland and the lease term expires before September 30, 2002, if the tenant declines to enter into a contract. In the case of an owner covered by this paragraph, contract payments shall not begin under a contract until the lease held by the tenant ends.

(6) An owner or producer described in any preceding paragraph regardless of whether the owner or producer purchased catastrophic risk protection for a 1996 crop under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)).

(c) TENANTS AND SHARECROPPERS.-In carrying out this subtitle, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.

(d) ELIGIBLE CROPLAND DESCRIBED.-Land shall be considered to be cropland eligible for coverage under a contract only if the land has contract acreage attributable to the land and

(1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was enrolled in the acreage reduction program authorized for a crop of a contract commodity under section 101B, 103B, 105B, or 107B of the Agricultural Act of 1949 or was considered planted;

(2) was subject to a conservation reserve contract under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) whose term expired, or was voluntarily terminated, on or after January 1, 1995; or

(3) is released from coverage under a conservation reserve contract by the Secretary during the period beginning on January 1, 1995, and ending on the date specified in section 112(a)(2).

(e) QUANTITY OF ELIGIBLE CROPLAND COVERED BY CONTRACT.-Subject to subsection (b)(4), an owner or producer may enroll as contract acreage all or a portion of the eligible cropland on the farm.

(f) VOLUNTARY REDUCTION IN CONTRACT ACREAGE.-Subject to subsection (b)(4), an owner or producer who enters into a contract may subsequently reduce the quantity of contract acreage covered by the contract.

SEC. 112. ELEMENTS OF CONTRACTS.

(a) TIME FOR CONTRACTING.

(1) COMMENCEMENT.-To the extent practicable, the Secretary shall commence entering into contracts not later than 45 days after the date of enactment of this title.

(2) DEADLINE.-Except as provided in paragraph (3), the Secretary may not enter into a contract after August 1, 1996.

(3) CONSERVATION RESERVE LANDS.

(A) IN GENERAL.-At the beginning of each fiscal year, the Secretary shall allow an eligible owner or producer on a farm covered by a conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) that terminates after the date specified in paragraph (2) to enter into or expand a production flexibility contract to cover the contract acreage of the farm that was subject to the former conservation reserve contract.

(B) AMOUNT.—Contract payments made for contract acreage under this paragraph shall be made at the rate and amount applicable to the annual contract payment level for the applicable crop. For the fiscal year in which the conservation reserve contract is terminated, the owner or producer subject to the production flexibility contract may elect to receive either contract payments or a prorated payment under the conservation reserve contract, but not both.

(b) DURATION OF CONTRACT.

(1) BEGINNING DATE.—The term of a contract shall begin with

(A) the 1996 crop of a contract commodity; or

(B) in the case of acreage that was subject to a conservation reserve contract described in subsection (a)(3), the date the production flexibility contract was entered into or expanded to cover the acreage.

(2) ENDING DATE.—The term of a contract shall extend through the 2002 crop, unless earlier terminated by the owner or producer.

(C) ESTIMATION OF CONTRACT PAYMENTS.At the time the Secretary enters into a contract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made.

(d) TIME FOR PAYMENT.

(1) IN GENERAL.-An annual contract payment shall be made not later than September 30 of each of fiscal years 1996 through 2002.

(2) ADVANCE PAYMENTS.-

(A) FISCAL YEAR 1996.–At the option of the owner or producer, 50 percent of the contract payment for fiscal year 1996 shall be made not later than 30 days after the date on which the contract is entered into and approved by the Secretary and the owner or producer.

(B) SUBSEQUENT FISCAL YEARS.-At the option of the owner or producer for fiscal year 1997 and each subsequent fiscal year, 50 percent of the annual contract payment shall be made on December 15 or January 15 of the fiscal year. The owner or producer may change the date selected under this subparagraph for a subsequent fiscal year by providing advance notice to the Secretary. SEC. 113. AMOUNTS AVAILABLE FOR CONTRACT

PAYMENTS. (a) FISCAL YEAR AMOUNTS.—The Secretary shall, to the maximum extent practicable, expend the following amounts to satisfy the obligations of the Secretary under all contracts:

(1) For fiscal year 1996, $5,570,000,000. (2) For fiscal year 1997, $5,385,000,000. (3) For fiscal year 1998, $5,800,000,000. (4) For fiscal year 1999, $5,603,000,000. (5) For fiscal year 2000, $5,130,000,000. (6) For fiscal year 2001, $4,130,000,000. (7) For fiscal year 2002, $4,008,000,000.

(b) ALLOCATION.—The amount made available for a fiscal year under subsection (a) shall be allocated as follows:

(1) For wheat, 26.26 percent.
(2) For corn, 46.22 percent.
(3) For grain sorghum, 5.11 percent.
(4) For barley, 2.16 percent.
(5) For oats, 0.15 percent.
(6) For upland cotton, 11.63 percent.
(7) For rice, 8.47 percent.

(c) ADJUSTMENT.—The Secretary shall adjust the amounts allocated for each contract commodity under subsection (b) for a particular fiscal year by

(1) adding an amount equal to the sum of all repayments of deficiency payments required under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the commodity;

(2) adding an amount equal to the sum of all refunds of contract payments received during the preceding fiscal year under section 116 for the commodity; and

(3) subtracting an amount equal to the amount, if any, necessary during that fiscal year to satisfy payment requirements for the commodity under sections 103B, 105B, or 107B of the Agricultural Act of 1949 for the 1994 and 1995 crop years.

(d) ADDITIONAL RICE ALLOCATION.-In addition to the adjustments required under subsection (c), the amount allocated under subsection (b) for rice contract payments shall be increased by $8,500,000 for each of fiscal years 1997 through 2002.

(e) EXCLUSION OF CERTAIN AMOUNTS FROM CONTRACT PAYMENTS.—Any amount added pursuant to paragraphs (1) and (2) of subsection (c) to the amount available under subsection (a) for a fiscal year and paid to owners and producers under a contract shall not be treated as a contract payment for purposes of section 115(a) of this title or section 1001(1) of the Food Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of a payment covered by this subsection may not exceed $50,000 per person.

(f) EFFECT OF PAYMENT LIMITATION.—The amount available under subsection (a) for a fiscal year shall be reduced by an amount equal to the total amount of contract payments for the fiscal year that owners and producers forgo as a result of operation of the payment limitation under section 1001(1) of the Food Security Act of 1985 (7 U.S.C. 1308(1)). SEC. 114. DETERMINATION OF CONTRACT PAY.

MENTS UNDER CONTRACTS. (a) INDIVIDUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES.–For each contract, the payment quantity of a contract commodity for each fiscal year shall be equal to the product of

(1) 85 percent of the contract acreage; and (2) the farm program payment yield.

(b) ANNUAL PAYMENT QUANTITY OF CONTRACT COMMODITIES.-The payment quantity of each contract commodity covered by all contracts for each fiscal year shall be equal to the sum of the amounts calculated under subsection (a) for each individual contract.

(c) ANNUAL PAYMENT RATE.-The payment rate for a contract commodity for each fiscal year shall be equal to

(1) the amount made available under section 113 for the contract commodity for the fiscal year; divided by

(2) the amount determined under subsection (b) for the fiscal year.

(d) ANNUAL PAYMENT AMOUNT.-The amount to be paid under a contract in effect for each fiscal year with respect to all contract commodities covered by the contract shall be equal to the sum of the products of

(1) the payment quantity determined under subsection (a) for each of the contract commodities covered by the contract; and

(2) the corresponding payment rate for the contract commodity in effect under subsection (c).

(e) REDUCTION IN PAYMENT AMOUNT.—The contract payment determined under subsection (d) for an owner or producer for a fiscal year shall be immediately reduced by the amount of any repayment of deficiency payments that is required under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid as of the date the contract payment is determined. The Secretary shall be required to collect the required repayment, or any claim based on the required repayment, as soon as the contract payment is determined.

(f) ASSIGNMENT OF CONTRACT PAYMENTS.The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment of payments) shall apply to contract payments under this section. The owner or producer making the assignment, or the assignee, shall provide the Secretary with notice, in such manner as the Secretary may require in the contract, of any assignment made under this subsection.

(g) SHARING OF CONTRACT PAYMENTS.—The Secretary shall provide for the sharing of contract payments among the owners and producers subject to the contract on a fair and equitable basis. SEC. 115. PAYMENT LIMITATIONS.

(a) APPLICABILITY OF PAYMENT LIMITATIONS.-Sections 1001 through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 through 1308–3), as amended by this section, shall be applicable to contract payments made under this subtitle.

(b) PAYMENT LIMITATIONS.-Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) through (4) and inserting the following:

“(1) LIMITATION ON PAYMENTS UNDER PRODUCTION FLEXIBILITY CONTRACTS.—The total amount of contract payments made under the Agricultural Market Transition Act to a person under 1 or more production flexibility contracts during any fiscal year may not exceed $40,000.

“(2) LIMITATION ON MARKETING LOAN GAINS AND LOAN DEFICIENCY PAYMENTS.—The total amount of the payments specified in paragraph (3) that a person shall be entitled to receive under the Agricultural Market Transition Act for 1 or more contract commodities and oilseeds during any crop year may not exceed $75,000.

“(3) DESCRIPTION OF PAYMENTS SUBJECT TO LIMITATION.—The payments referred to in paragraph (2) are the following:

"(A) Any gain realized by a producer from repaying a marketing assistance loan under section 131 of the Agricultural Market Transition Act for a crop of any loan commodity at a lower level than the original loan rate established for the loan commodity under section 132 of the Act.

"(B) Any loan deficiency payment received for a loan commodity under section 135 of the Act.

“(4) DEFINITIONS.-In this title, the terms 'contract commodity', 'contract payment', 'loan commodity', 'oilseed', and 'production flexibility contract' have the meaning given those terms in section 102 of the Agricultural Market Transition Act.".

(c) CONFORMING AMENDMENTS.

(1) Section 1001A of the Food Security Act of 1985 (7 U.S.C. 1308–1) is amended

(A) in subsection (a)(1), by striking "under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)"; and

(B) in subsection (b)(1), by striking "under the Agricultural Act of 1949”.

(2) Section 1001C(a) of the Act (7 U.S.C. 1308–3(a)) is amended

(A) by striking “For each of the 1991 through 1997 crops, any” and inserting "Any”;

(B) by striking "production adjustment payments, price support program loans, payments, or benefits made available under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.),” and inserting “loans or payments made available under the Agricultural Market Transition Act,”; and

(C) by striking "during the 1989 through 1997 crop years”. SEC. 116. VIOLATIONS OF CONTRACT.

(a) TERMINATION OF CONTRACT FOR VIOLATION.--Except as provided in subsection (b), if an owner or producer subject to a contract violates a requirement of the contract specified in section 111(a), the Secretary shall terminate the contract with respect to the owner or producer on each farm in which the owner or producer has an interest. On the termination, the owner or producer shall forfeit all rights to receive future contract payments on each farm in which the owner or producer has an interest and shall refund to the Secretary all contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary.

(b) REFUND OR ADJUSTMENT.-If the Secretary determines that a violation does not warrant termination of the contract under subsection (a), the Secretary may require the owner or producer subject to the contract

(1) to refund to the Secretary that part of the contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary; or

(2) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.

(c) FORECLOSURE.

(1) EFFECT OF FORECLOSURE.-An owner or producer subject to a contract may not be required to make repayments to the Secretary of amounts received under the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate to provide fair and equitable treatment.

(2) RESUMPTION OF OPERATION.—This subsection shall not void the responsibilities of the owner or producer under the contract if the owner or producer continues or resumes operation, or control, of the contract acreage. On the resumption of operation or control over the contract acreage by the owner or producer, the provisions of the contract in effect on the date of the foreclosure shall apply.

(d) REVIEW.-A determination of the Secretary under this section shall be considered to be an adverse decision for purposes of the availability of administrative review of the determination. SEC. 117. TRANSFER OR CHANGE OF INTEREST IN

LANDS SUBJECT TO CONTRACT. (a) TERMINATION.—Except as provided in subsection (c), a transfer of (or change in) the interest of an owner or producer subject to a contract in the contract acreage covered by the contract shall result in the termination of the contract with respect to the acreage, unless the transferee or owner of the acreage agrees to assume all obligations under the contract. The termination shall be effective on the date of the transfer or change.

(b) MODIFICATION.–At the request of the transferee or owner, the Secretary may modify the contract if the modifications are consistent with the objectives of this subtitle, as determined by the Secretary.

(c) EXCEPTION.-If an owner or producer who is entitled to a contract payment dies,

becomes incompetent, or is otherwise unable to receive the contract payment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary. SEC. 118. PLANTING FLEXIBILITY.

(a) PERMITTED CROPS.-Subject to subsection (b), any commodity or crop may be planted on contract acreage on a farm.

(b) LIMITATIONS AND EXCEPTIONS REGARDING FRUITS AND VEGETABLES.

(1) LIMITATIONS.—The planting of fruits and vegetables (other than lentils, mung beans, and dry peas) shall be prohibited on contract acreage.

(2) EXCEPTIONS.-Paragraph (1) shall not limit the planting of a fruit or vegetable

(A) in any region in which there is a history of double-cropping of contract commodities with fruits or vegetables, as determined by the Secretary, in which case the doublecropping shall be permitted;

(B) on a farm that the Secretary determines has a history of planting fruits or vegetables on contract acreage, except that a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable; or

(C) by a producer who the Secretary determines has an established planting history of a specific fruit or vegetable, except that

(i) the quantity planted may not exceed the producer's average annual planting history of the fruit or vegetable in the 1991 through 1995 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and

(ii) a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable. Subtitle C-Nonrecourse Marketing Assist

ance Loans and Loan Deficiency Payments SEC. 131. AVAILABILITY OF NONRECOURSE MAR

KETING ASSISTANCE LOANS. (a) NONRECOURSE LOANS AVAILABLE.-For each of the 1996 through 2002 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 132 for the loan commodity.

(b) ELIGIBLE PRODUCTION.—The following production shall be eligible for a marketing assistance loan under subsection (a):

(1) In the case of a marketing assistance loan for a contract commodity, any production by a producer on a farm containing eligible cropland covered by a production flexibility contract.

(2) In the case of a marketing assistance loan for extra long staple cotton and oilseeds, any production.

(c) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIREMENTS.-As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during the term of the loan.

(d) ADDITIONAL OUTLAYS PROHIBITED.-The Secretary shall carry out this subtitle in such a manner that there are no additional outlays under this subtitle as a result of the reconstitution of a farm that occurs as a result of the combination of another farm that does not contain eligible cropland covered by a production flexibility contract. SEC. 132. LOAN RATES FOR MARKETING ASSIST.

ANCE LOANS. (a) WHEAT.

(1) LOAN RATE.-Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for wheat shall be

(A) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

(B) not more than $2.58 per bushel.

(2) STOCKS TO USE RATIO ADJUSTMENT.—If the Secretary estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be

(A) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year;

(B) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or

(C) less than 15 percent, the Secretary may not reduce the loan rate for wheat for the corresponding crop.

(b) FEED GRAINS.

(1) LOAN RATE FOR CORN.-Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for corn shall be

(A) not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but

(B) not more than $1.89 per bushel.

(2) STOCKS TO USE RATIO ADJUSTMENT.-If the Secretary estimates for any marketing year that the ratio of ending stocks of corn to total use for the marketing year will be

(A) equal to or greater than 25 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 10 percent in any year;

(B) less than 25 percent but not less than 12.5 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 5 percent in any year; or

(C) less than 12.5 percent, the Secretary may not reduce the loan rate for corn for the corresponding crop.

(3) OTHER FEED GRAINS.—The loan rate for a marketing assistance loan under section 131 for grain sorghum, barley, and oats, respectively, shall be established at such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn.

(C) UPLAND COTTON.

(1) LOAN RATE.-Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for upland cotton shall be established by the Secretary at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the Secretary, at average locations in the United States a rate that is not less than the smaller of,

(A) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or

(B) 90 percent of the average, for the 15week period beginning July 1 of the year pre

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