Text: H.R.3950 — 101st Congress (1989-1990)All Information (Except Text)

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Union Calendar No. 375
101st CONGRESS
2d Session
H. R. 3950
[Report No. 101-569, Parts I, II, III, IV, and V]
A BILL
Entitled the `Food and Agricultural Resources Act of 1990'.
July 16, 1990
Reported from the Committee on Foreign Affairs with amendments and with
instruction
July 18, 1990
Reported from the Committee on Education and Labor with amendments
July 18, 1990
Reported from the Committee on Ways and Means with amendments
July 18, 1990
Committee on Merchant Marine and Fisheries discharged; committed to the
Committee of the Whole House on the State of the Union, and ordered to
be printed
HR 3950 RH2
Union Calendar No. 375
101st CONGRESS
2d Session
 H. R. 3950
[Report No. 101-569, Parts I, II, III, IV, and V]
Entitled the `Food and Agricultural Resources Act of 1990'.
IN THE HOUSE OF REPRESENTATIVES
February 5, 1990
Mr. DE LA GARZA (for himself and Mr. MADIGAN) introduced the following bill;
which was referred to the Committee on Agriculture
July 3, 1990
Reported with an amendment and referred to the Committees on Education and
Labor, Foreign Affairs, and Ways and Means for a period ending not later than
July 18, 1990, for consideration of such provisions of the bill and amendment
as fall within the jurisdiction of those committees pursuant to clause 1 (g),
(i), and (v), rule X
[Strike out all after the enacting clause and insert the part printed
in italic]
July 16, 1990
Reported from the Committee on Foreign Affairs with amendments and referred
to the Committee on Merchant Marine and Fisheries for a period ending
not later than July 18, 1990, for consideration of such provisions of the
amendments recommended by the Committee on Foreign Affairs as fall within
the jurisdiction of the Committee on Merchant Marine and Fisheries pursuant
to clause 1(n), rule X
[Omit the part in boldface brackets and insert the part printed in boldface
roman]
July 18, 1990
Reported from the Committee on Education and Labor with amendments
[Omit the part struck through in italic and insert the part printed in roman]
July 18, 1990
Reported from the Committee on Ways and Means with amendments
[Omit the part in bold parentheses and insert the part printed in boldface
italic]
July 18, 1990
Committee on Merchant Marine and Fisheries discharged; committed to the
Committee of the Whole House  on the State of the Union, and ordered to
be printed
[For text of introduced bill, see copy of bill as introduced on February
5, 1990]
A BILL
Entitled the `Food and Agricultural Resources Act of 1990'.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1.  SHORT TITLE AND TABLE OF CONTENTS.
  (a) SHORT TITLE- This Act may be cited as the`Food and Agricultural
  Resources Act of 1990'.
  (b)  TABLE OF CONTENTS- The table of contents is as follows:
TITLE I--COTTON
Sec. 101. Loan rates, target prices, disaster payments, Acreage Limitation
Program, and land diversion for the 1991 through 1995 crops of upland cotton.
Sec. 102. Suspension of base acreage allotments, marketing quotas, and
related provisions.
Sec. 103. Commodity credit corporation sales price restrictions.
Sec. 104. Nonapplicability of section 103(a) of the Agricultural Act of 1949
to the 1991 through 1995 crops of upland cotton.
Sec. 105. Skiprow practices.
Sec. 106. Preliminary allotments for 1996 crop of upland cotton.
Sec. 107. Extra long staple cotton.
Sec. 108. Adjustment of support prices.
Sec. 109. Cottonseed and cottonseed oil price support.
TITLE II--SUGAR
Subtitle A--Price Support and Marketing Allotments
Sec. 201. Sugar program extension.
Sec. 202. Information reporting.
Sec. 203. Marketing allotments for sugar and crystalline fructose.
Sec. 204. Establishment of marketing allotments.
Sec. 205. Allocation of marketing allotments.
Sec. 206. Assignments of deficits.
Sec. 207. Provisions applicable to producers.
Sec. 208. Special rules.
Sec. 209. Regulations; violations; publication of Secretary's determinations;
jurisdiction of the courts; United States  attorneys.
Sec. 210. Appeals.
Sec. 211. Administration.
 ( Subtitle B--Sugar for Re-Export
 ( Sec. 221. Definitions.
 ( Sec. 222. Establishment of program.
 ( Sec. 223. Imports of sugar.
 ( Sec. 224. Exports of sugar.
 ( Sec. 225. Marketing certificates.
 ( Sec. 226. Regulations.
 ( Sec. 227. Records and reports.
 ( Sec. 228. Enforcement.
 ( Subtitle C )  Subtitle B--Miscellaneous
Sec.  ( 231. )  221. Sugarcane disaster assistance.
Sec.  ( 232. )  222. Reports on quota allocations to countries importing sugar.
Subtitle C--Import Treatment of Sugars, Syrups, and Molasses
Sec. 231. Findings and purpose.
Sec. 232. Tariff treatment when tariff-rate quotas not in effect.
Sec. 233. Tariff-rate quotas.
Sec. 234. Applicable statutory authorities.
Sec. 235. Definitions.
Sec. 236. Conforming amendments to HTS.
Sec. 237. Effective date; termination.
TITLE III--RICE
Sec. 301. Loan rates, target prices, disaster payments, Acreage Limitation
Program, and land diversion for the 1991 through 1995 crops of rice.
Sec. 302. Marketing certificates.
TITLE IV--DAIRY
Sec. 401. Findings.
Sec. 402. Milk Price Support and Inventory Management Program for calendar
years 1991 through 1995.
Sec. 403. Milk manufacturing margin study.
Sec. 404. Minnesota-Wisconsin price series reform.
Sec. 405. Hearings on Federal milk marketing orders.
Sec. 406. Report of dairy product purchases.
Sec. 407. Application of support price for milk.
Sec. 408. Application of amendments.
Sec. 409. Adjustments for seasonal production; hearings on amendments;
determination of milk prices.
Sec. 410. Transfer of dairy products to the military and veterans hospitals.
Sec. 411. Extension of the Dairy Indemnity Program.
Sec. 412. Export sales of dairy products.
Sec. 413. Component pricing of milk.
Sec. 414. Adjustments in payments by handlers.
Sec. 415. Dairy Export Incentive Program.
Sec. 416. Amendment to the Packers and Stockyards Act, 1921, to provide for
the establishment of trusts for the benefit of milk producers.
Sec. 417. Status of producer handlers.
TITLE V--WOOL AND MOHAIR
Sec. 501. Extension of Price Support Program.
Sec. 502. Promotion program.
Sec. 503. Payment limitation.
TITLE VI--HONEY
Subtitle A--Beekeeping Stabilization
Sec. 601. Short title.
Sec. 602. Findings and policy.
Sec. 603. Honey price support.
Subtitle B--Honey Research, Promotion, and Consumer Information
Sec. 611. Short title.
Sec. 612. Definitions.
Sec. 613. Required terms in orders.
Sec. 614. Assessments.
Sec. 615. First reconfirmation referendum.
Sec. 616. Investigations and power to subpoena.
Sec. 617. Conforming amendment to order.
TITLE VII--OILSEEDS
Sec. 701. Oilseed price support.
TITLE VIII--PEANUTS
Sec. 801. Suspension of marketing quotas and acreage allotments.
Sec. 802. National poundage quota and farm poundage quota.
Sec. 803. Sale, lease, or transfer of farm poundage quota.
Sec. 804. Marketing penalties; disposition of additional peanuts.
Sec. 805. Price support program.
Sec. 806. Reports and records.
Sec. 807. Suspension of certain price support provisions.
Sec. 808. Experimental and research programs for peanuts.
Sec. 809. Conforming changes.
TITLE IX--WHEAT
Sec. 901. Loan rates, target prices, disaster payments, Acreage Limitation
Program, and land diversion for the 1991 through 1995 crops of wheat.
Sec. 902. Nonapplicability of certificate requirements.
Sec. 903. Suspension of land use, wheat marketing allocation, and producer
certificate provisions.
Sec. 904. Suspension of certain quota provisions.
Sec. 905. Nonapplicability of section 107 of the Agricultural Act of 1949
to the 1991 through 1995 crops of wheat.
TITLE X--FEED GRAINS
Sec. 1001. Loan rates, target prices, disaster payments, Acreage Limitation
Program, and land diversion for the 1991 through 1995 crops of feed grains.
Sec. 1002. Price support for high moisture feed grains.
Sec. 1003. Nonapplicability of section 105 of the Agricultural Act of 1949
to the 1991 through 1995 crops of feed grains.
Sec. 1004. Calculation of refunds of advance established price  payments by
producers of the 1988 or 1989 crops of feed barley.
TITLE XI--GENERAL COMMODITY PROVISIONS
Subtitle A--Miscellaneous Commodity Provisions
Sec. 1101. Payment limitations.
Sec. 1102. Hybrid seed corn producers.
Sec. 1103. Advance deficiency and diversion payments.
Sec. 1104. Commodity credit corporation sales price restrictions.
Sec. 1105. Disaster payments for 1991 through 1995 crops of peanuts, soybeans,
sugar beets, and sugarcane.
Sec. 1106. Extension and enhancement of authority for multiyear set-aside
contracts.
Sec. 1107. Establishment of cover crop.
Sec. 1108. Supplemental set-aside and acreage limitation authority.
Sec. 1109.  [Struck out][ Extension ][/Struck out]  Replenishments of
the food security wheat reserve.
Sec. 1110. Extension of normally planted acreage provisions.
Sec. 1111. Extension of provisions regarding the advance announcement of
programs.
Sec. 1112. Extension of provisions regarding certain determinations of
the Secretary.
Sec. 1113. Application of terms in the Agricultural Act of 1949.
Sec. 1114. Normal supply determination.
Sec. 1115. National agricultural cost of production standards review board.
Sec. 1116. Producer reserve program for wheat and feed grains.
Sec. 1117. Certificates.
Sec. 1118. Procedural requirements.
Sec. 1119. Financial impact assessment.
Sec. 1120. Survey of program participants.
Subtitle B--Uniform Base Acreage and Yield Provisions
Sec. 1121. Acreage base and program yield system for the wheat, feed grain,
upland cotton, and rice programs.
 [Struck out][ TITLE XII--TRADE
 [Struck out][ Subtitle A--Public Law 480, Food for Progress
 [Struck out][ Sec. 1201. Amendment of Agricultural Trade Development and
 Assistance Act of 1954.
 [Struck out][ Sec. 1202. Extension of authorities.
 [Struck out][ Sec. 1203. Amendment to section 3.
 [Struck out][ Sec. 1204. Amendments to title I.
 [Struck out][ Sec. 1205. Amendments to title II.
 [Struck out][ Sec. 1206. Repeal of title III.
 [Struck out][ Sec. 1207. Amendments to title IV.
 [Struck out][ Sec. 1208. Program regulations.
 [Struck out][ Sec. 1209. Food for progress.
 [Struck out][ Sec. 1210. Amendment to section 416.
 [Struck out][ Subtitle B--Export Promotion
 [Struck out][ Sec. 1211. Amendment to the Agricultural Trade Act of 1978.
 [Struck out][ Sec. 1212. Amendments relating to export credit programs.
 [Struck out][ Sec. 1213. Market development task force.
 [Struck out][ Subtitle C--Agricultural Trade With and Fellowships for
 Emerging Democracies and Middle-Income Countries
 [Struck out][ Sec. 1221. Promotion of agricultural exports to emerging
 democracies.
 [Struck out][ Sec. 1222. Agricultural Fellowship Program for middle-income
 countries and emerging democracies.
 [Struck out][ Subtitle D--Studies and Reports
 [Struck out][ Sec. 1231. Study of North American free trade area.
 [Struck out][ Sec. 1232. Report on wood export promotion.
 [Struck out][ Sec. 1233. Rose and flower study.
 [Struck out][ Sec. 1234. Commodity transportation and technology assessment
 and report.
 [Struck out][ Sec. 1235. Red tart cherry study.
 [Struck out][ Sec. 1236. Report on section 22 suspension or termination.
 [Struck out][ Subtitle E--Effective Dates and Conforming Changes
 [Struck out][ Sec. 1241. Effective dates.
 [Struck out][ Sec. 1242. Conforming changes. ][/Struck out]
TITLE XII--AGRICULTURAL TRADE AND ASSISTANCE
Subtitle A--Public Law 480 and Related Programs
Sec. 1201. Short title.
Sec. 1202. Amendment of Agricultural Trade Development and Assistance Act
of 1954.
Sec. 1203. Extension of authorities.
Sec. 1204. Amendment to section 2.
Sec. 1205. Amendment to section 3.
Sec. 1206. Amendments to title I.
Sec. 1207. Amendments to title II.
Sec. 1208. Amendment to title III.
Sec. 1209. Amendments to title IV.
Sec. 1210. Revision of regulations.
Sec. 1211. Independent evaluation of Public Law 480 programs.
Sec. 1212. Amendment to section 416(b) of 1949 Act.
Sec. 1213. Food for progress.
Sec. 1214. Extension of food security wheat reserve.
Sec. 1215. Great Lakes set-aside.
Subtitle B--Export Promotion
Sec. 1221. Amendment to the Agricultural Trade Act of 1978.
Sec. 1222. Amendments relating to export credit programs.
Sec. 1223. Market development task force.
Subtitle C--Agricultural Trade With and Fellowships for Emerging Democracies
and Middle-Income Countries
Sec. 1231. Promotion of agricultural exports to emerging democracies.
Sec. 1232. Agricultural fellowship program for middle-income countries and
emerging democracies.
Subtitle D--Studies, Reports, and Other Provisions
Sec. 1241. Study of North American free trade area.
Sec. 1242. Report on wood export promotion.
Sec. 1243. Rose and flower study.
Sec. 1244. Commodity transportation and technology assessment and report.
Sec. 1245. Red tart cherry study.
Sec. 1246. Report on section 22 suspension or termination.
Sec. 1247. Agricultural exports to the European Community.
Sec. 1248. Language proficiency and evaluation of Foreign Agricultural
Service Officers.
Subtitle E--Other Foreign Affairs Matters
Sec. 1261. Encouraging improvements in the human rights conditions of Haitian
sugar cane harvesters in the Dominican Republic.
Sec. 1262. Use of economic assistance funds for agricultural and industrial
alternatives to narcotics production in major coca producing countries.
Subtitle F--Effective Dates and Conforming Changes
Sec. 1271. Effective dates.
Sec. 1272. Conforming changes.
TITLE XIII--RESEARCH
Subtitle A--Extensions and Changes to Existing Programs
Sec. 1301. Increased authorizations for, and the extension of, existing
programs.
Sec. 1302. Findings of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977.
Sec. 1303. Definition of sustainable agriculture.
Sec. 1304. Joint council on food and agricultural sciences and national
agricultural research and extension users advisory  board.
Sec. 1305. Federal-State partnership and coordination.
Sec. 1306. Grants to enhance research capacity in schools of veterinary
medicine.
Sec. 1307. Grants and fellowships for food and agricultural sciences education.
Sec. 1308. Grants for research on the production and marketing of alcohols
and industrial hydrocarbons from agricultural commodities and forest products.
Sec. 1309. Joint contract for assessment of food science and human nutrition
research.
Sec. 1310. Animal health and disease research study and animal health science
research advisory board.
Sec. 1311. Grant programs for 1890 land-grant colleges, including Tuskegee
University.
Sec. 1312. International agricultural research and extension and international
trade development centers.
Sec. 1313. Reauthorization of extension education and pilot project to
coordinate food and nutrition education  programs.
Sec. 1314. Aquaculture assistance programs.
Sec. 1315. Program of competitive, special, and facilities grants for
agricultural research.
Sec. 1316. Minimization of conflicts of interest of employees of colleges
receiving funds under the Smith-Lever Act.
Sec. 1317. Grants for financially stressed farmers, dislocated farmers,
and rural families.
Subtitle B--Sustainable Agriculture Research and Education Program
Sec. 1321. Purpose and definitions.
Sec. 1322. Research and extension projects.
Sec. 1323. Program administration.
Sec. 1324. Federal-State Matching Grant Program.
Sec. 1325. Integrated management systems research and education.
Sec. 1326. Technical guides and handbooks.
Sec. 1327. Education and training.
Sec. 1328. Authorization for appropriations.
Sec. 1329. Repeal of agricultural productivity research provisions.
Subtitle C--National Genetics Resources Program
Sec. 1331. Establishment, purpose, and functions of the National Genetic
Resources Program.
Sec. 1332. Appointment and authority of director.
Sec. 1333. Advisory council.
Sec. 1334. Definitions and authorization of appropriations.
Subtitle D--National Agricultural Library
Sec. 1335. Establishment, purposes, and functions of the National Agricultural
Library.
Sec. 1336. Gifts.
Sec. 1337. Board of Regents.
Sec. 1338. Definitions and authorization of appropriations.
Subtitle E--National Agricultural Weather Information System
Sec. 1339. Short title, findings, and purposes.
Sec. 1340. Agricultural Weather Office.
Sec. 1341. National Advisory Board on Agricultural Weather.
Sec. 1342. State agricultural weather information systems.
Sec. 1343. Funding.
Subtitle F--Plant and Animal Pest and Disease Control Program
Sec. 1344. Findings and definitions.
Sec. 1345. Establishment of office.
Sec. 1346. Plant and Animal Pest and Disease Control Program.
Sec. 1347. Pest and disease control data base and pesticide resistance
monitoring.
Sec. 1348. Research on exotic pests.
Sec. 1349. Authorization of appropriations.
Subtitle G--Research Regarding the Production, Preparation, Processing,
Handling, and Storage of Agricultural Products
Sec. 1351. Findings, purpose, and definition.
Sec. 1352. Research and Grant Program.
Sec. 1353. Advisory committee and grant process.
Sec. 1354. Reports to Congress.
Sec. 1355. Authorization of Appropriations.
Subtitle H--National Institute for Alternative Agricultural Products
Sec. 1356. Short title, purposes, and definitions.
Sec. 1357. National Institute for Alternative Agricultural Products.
Sec. 1358. National Alternative Agricultural Products Board.
Sec. 1359. Research and development grants, contracts, and agreements.
Sec. 1360. Commercialization assistance.
Sec. 1361. General rules regarding the provision of assistance.
Sec. 1362. Regional centers.
Sec. 1363. Alternative Agricultural Products Technology Revolving Fund.
Subtitle I--Agriculture and Water Policy Coordination
PART 1--Short Title, Definitions, Water Quality Policy, Coordination,
Research and Information
Sec. 1364. Short title, purpose, definitions, and authorization of
appropriations.
Sec. 1365. Policy with respect to agrichemicals.
Sec. 1366. State Water Quality Coordination Program.
Sec. 1367. Water quality research.
Sec. 1368. Nutrient management research.
Sec. 1369. Repository of agriculture and water quality planning information.
Sec. 1370. Data base on State plans and programs.
Sec. 1371. National Agriculture and Water Data Base.
PART 2--Experimental Water Quality Enhancement Program
Sec. 1372. Program eligibility.
Sec. 1373. Duties of owners and operators.
Sec. 1374. Duties of the secretary.
Sec. 1375. Water quality management plans.
Sec. 1376. Agreements.
Subtitle J--Miscellaneous Research Provisions
Sec. 1377. Biotechnology risk assessment research.
Sec. 1378. Graduate school of the United States Department of Agriculture.
Sec. 1379. Pesticide Impact Response Program.
Sec. 1380. Collection of pesticide use information.
Sec. 1381. Disposal of agricultural chemicals and agricultural chemical
containers.
Sec. 1382. National farm safety study.
Sec. 1383. Plant Genome Mapping Program.
Sec. 1384. Composting Research and Extension Program.
Sec. 1385. Aflatoxin Research Program.
Sec. 1386. Agricultural Telecommunications Program.
Sec. 1387. Study of the transportation of fertilizer and agricultural
chemicals to farmers.
Sec. 1388. Special grant to study constraints on agricultural trade.
Sec. 1389. Special grants for mesquite and prickly pear research.
Sec. 1390. National centers for food safety research.
Sec. 1391. Immunoassy Research Program.
Sec. 1392. Rural development research.
Sec. 1393. Outreach and assistance for socially disadvantaged farmers.
Sec. 1394. Grants for Niche market development.
Sec. 1395. Miscellaneous agricultural research centers.
Sec. 1396. Agricultural assistance program for farmers with disabilities.
TITLE XIV--MARKETING
Subtitle A--Fruits and Vegetables
Sec. 1401. Findings.
Sec. 1402. Purposes.
Sec. 1403. Declaration.
Sec. 1404. Study of the fruit and vegetable industry.
Subtitle B--Marketing
Sec. 1411. Amendment to the Perishable Agricultural Commodities Act.
Sec. 1412. Enforcement of handler assessments.
Sec. 1413. Wine and winegrape industry study.
Sec. 1414. Producer research and promotion board accountability.
Subtitle C--Commodity Promotion
Part 1--Pecan Promotion
Sec. 1421. Short title.
Sec. 1422. Findings and declaration of policy.
Sec. 1423. Definitions.
Sec. 1424. Issuance of plans.
Sec. 1425. Regulations.
Sec. 1426. Required terms in plans.
Sec. 1427. Permissive terms in plans.
Sec. 1428. Assessment.
Sec. 1429. Petition and review.
Sec. 1430. Enforcement.
Sec. 1431. Investigations and power to subpoena.
Sec. 1432. Requirement of referendum.
Sec. 1433. Suspension or termination of plan.
Sec. 1434. Authorization of appropriations.
Part 2--Mushrooms
Sec. 1441. Short title.
Sec. 1442. Findings and declaration of policy.
Sec. 1443. Definitions.
Sec. 1444. Issuance of orders.
Sec. 1445. Required terms in orders.
Sec. 1446. Referenda.
Sec. 1447. Petition and review.
Sec. 1448. Enforcement.
Sec. 1449. Investigations and power to subpoena.
Sec. 1450. Savings provision.
Sec. 1451. Suspension or termination of orders.
Sec. 1452. Authorization of appropriations.
Sec. 1453. Regulations.
Part 3--Potatoes
Sec. 1461. Short title.
Sec. 1462. Findings and declaration of policy.
Sec. 1463. Definitions.
Sec. 1464. Authority to issue a plan.
Sec. 1465. Notice and hearings.
Sec. 1466. Required terms in plans.
Sec. 1467. Permissive terms in plans.
Sec. 1468. Assessments.
Sec. 1469. Investigation and power to subpoena.
Sec. 1470. Requirement of referendum.
Sec. 1471. Suspension or termination of plans.
Sec. 1472. Amendment procedure.
Part 4--Cotton
Sec. 1473. Short title.
Sec. 1474. Findings and declaration of policy.
Sec. 1475. Required terms in order; cotton imports.
Sec. 1476. Requirements for referenda.
Sec. 1477. Suspension and termination of orders.
Sec. 1478. Amendments to the order.
Sec. 1479. Producer refunds.
Sec. 1480. Definitions.
Part 5--Limes
Sec. 1481. Short title.
Sec. 1482. Findings, purposes, and limitations.
Sec. 1483. Definitions.
Sec. 1484. Issuance of orders.
Sec. 1485. Required terms in orders.
Sec. 1486. Permissive terms in orders.
Sec. 1487. Petition and review.
Sec. 1488. Enforcement.
Sec. 1489. Investigations and power to subpoena.
Sec. 1490. Initial referendum.
Sec. 1491. Suspension and termination.
Sec. 1492. Authorization of appropriations.
Sec. 1493. Regulations.
Part 6--Application of Commodity Research and Promotion Programs to Imports
Sec. 1499. Consistency with international obligations of the United States.
TITLE XV--STATE AND PRIVATE FORESTRY
Sec. 1501. Firefighting preparedness and mobilization assistance.
Sec. 1502. Insect control.
Sec. 1503. Disaster assistance.
Sec. 1504. Research and utilization.
Sec. 1505. Forest Reserve Program.
Sec. 1506. Forest land protection studies.
Sec. 1507. Forest resources management improvement stewardship and
reforestation project.
Sec. 1508. Urban and community forestry.
Sec. 1509. America the Beautiful Foundation.
Sec. 1510. Presidential Commission on State and Private Forests.
Sec. 1511. Blue Mountain Natural Resource Institute.
Sec. 1512. International Forest Resources Institute.
TITLE XVI--CONSERVATION
Sec. 1601. Modification of Highly Erodible Land Program.
Sec. 1602. Modification of Wetlands Program.
Sec. 1603. Conservation Reserve Program.
Sec. 1604. Tree planting initiative.
Sec. 1605. Natural Resource Loan Program.
Sec. 1606. State technical committee.
Sec. 1607. Water quality protection.
Sec. 1608. Wetland and environmental easements.
Sec. 1609. Administration of conservation programs.
Sec. 1610. Office of Environmental Quality.
Sec. 1611. Integrated farm management program option.
Sec. 1612. Soil and water activities.
Sec. 1613. Cost sharing for soil enhancement.
Sec. 1614. Extension of Great Plains Conservation Program.
Sec. 1615. Amendment to the Watershed Protection and Flood Prevention Act.
Sec. 1616. Resource Conservation and Development Program eligibility.
Sec. 1617. Amendment to the Noxious Weed Act.
TITLE XVII--FOOD STAMP AND RELATED PROVISIONS
Sec. 1700. Short title; presumption of reference to Food Stamp Act of 1977.
Subtitle A--Reducing Childhood Hunger
Sec. 1701. Households with high shelter expenses.
Sec. 1702. Basic benefit level.
Sec. 1703. Continuing benefits to eligible households.
Sec. 1704. Emergency food for disaster victims.
Sec. 1705. Clothing allowances and general assistance vendor payments.
Sec. 1706. Participants in demonstration projects.
Sec. 1707. Alternate method of issuance.
Sec. 1708. Improving assistance to the homeless.
Sec. 1709. Reduced paperwork for homeless households.
Subtitle B--Promoting Self-Sufficiency
Sec. 1711. Child support.
Sec. 1712. Limitation on resources.
Sec. 1713. State option to reduce unnecessary paperwork.
Sec. 1714. Combined households.
Sec. 1715. Employment and training program expansion.
Sec. 1716. Employment and training allocation.
Sec. 1717. Helping low-income students achieve self-sufficiency.
Sec. 1718. Families in transitional housing.
Subtitle C--Simplifying Program Administration
Sec. 1721. Relatives living together.
Sec. 1722. AFDC/Food stamp simplification.
Sec. 1723. Simplifying resource and eligibility determinations.
Sec. 1724. Simplified application signing requirements.
Sec. 1725. Categorical eligibility for recipients of State general assistance.
Sec. 1726. Fraud claims repayment.
Sec. 1727. Commission on coordination of family support and food stamp
policies.
Sec. 1728. Dependent care expenses.
Sec. 1729. State flexibility in budgeting methods.
Sec. 1730. Enhanced waiver authority for demonstration projects.
Subtitle D--Hunger in Rural America
Sec. 1731. Simplified issuance procedures in rural areas.
Sec. 1732. Flexibility for State informational activities.
Sec. 1733. Vehicles necessary to carry fuel or water.
Sec. 1734. Grants to improve food stamp participation of rural Americans,
minorities, elderly and homeless.
Subtitle E--Promoting Access for the Elderly and Disabled
Sec. 1741. Clarifying amendment concerning simplified procedure for claiming
excess medical deduction.
Sec. 1742. Value of minimum benefit.
Sec. 1743. Procedures for issuing aggregate allotments.
Sec. 1744. Applicants for supplemental security income.
Sec. 1745. Asset Limits for the disabled.
Sec. 1746. Extension of pilot projects.
Subtitle F--Program Administration by State Agencies
Sec. 1751. Quality control sanctions with respect to disallowances before
fiscal year 1991.
Sec. 1752. Food stamp automation.
Subtitle G--Food Stamp Program Integrity
Sec. 1761. Authorization of wholesale food concerns.
 ( Sec. 1762. Required submission of social security numbers and taxpayer
 identifying numbers of retail food stores and wholesale food concerns. )
Sec.  ( 1763. )  1762. Biennial reauthorization of retail food stores.
Sec.  ( 1764. )  1763. Per-violation civil money penalty for coupon
trafficking; permanent disqualification for certain abuses.
Sec.  ( 1765. )  1764. Fines for retail food stores and wholesale food
concerns that accept loose coupons.
Sec.  ( 1766. )  1765. Fines for unauthorized third parties that accept
food stamps.
Sec.  ( 1767. )  1766. Computer fraud penalties.
Sec.  ( 1768. )  1767. Unlawful use of coupons in laundering monetary
instruments.
Sec.  ( 1769. )  1768. Issuance of warning letters.
Subtitle H--Commodity Distribution Programs
Sec. 1771. TEFAP commodity availability.
Sec. 1772. Food bank projects.
Sec. 1773. Authorizing a Commodity Supplemental Food Program for the elderly
and increasing administrative funding.
Sec. 1774. Food Distribution Program--advance funding for State option
contracts (SOCS).
Sec. 1775. Clarifying amendment.
Sec. 1776. Distribution of milk.
Sec. 1777. Commodity assistance for infants and children.
Subtitle I--Reauthorization of Programs
Sec. 1781. Reauthorization of Food Stamp Program and elimination of specified
authorization levels.
Sec. 1782. Reauthorization of Nutrition Assistance Program for Puerto Rico.
Sec. 1783. Reauthorization of Temporary Emergency Food Assistance Program.
Sec. 1784. Soup kitchens and food banks.
Sec. 1785. Reauthorization of Commodity Supplemental Food Program and other
food donation programs.
Sec. 1786. Processing agreements.
Sec. 1787. Nutrition education authorization.
Subtitle J--Miscellaneous; Effective Dates
Sec. 1791. Gleaning assistance.
Sec. 1792. Welfare Simplification and Coordination Advisory Committee.
Sec. 1793. Nutrition education improvements.
Sec. 1794. Effective dates.
Sec. 1795. Special provisions in case of sequestration.
TITLE XVIII--IMPROVEMENT OF AGRICULTURAL ECONOMY
Subtitle A--Grain Quality Improvements
Sec. 1801. Committee on grain quality and grain quality coordinator.
Sec. 1802. Benefits and costs associated with grain quality.
Sec. 1803. Classification, grades, and standards design framework.
Sec. 1804. Improving the cleanliness of grain.
Sec. 1805. Grade determining factors related to physical soundness and purity.
Sec. 1806. Testing for aflatoxin contamination of corn shipped in foreign
commerce; domestic testing standards and procedures.
Sec. 1807. Cargo loading requirements.
Sec. 1808. Prohibition of contamination.
Sec. 1809. Sense of Congress concerning tests for purity.
Sec. 1810. Sense of Congress concerning cooperative enforcement of Federal
grain purity requirements.
Sec. 1811. Entry quality standards for all farmer-owned reserve grains.
Sec. 1812. Price support loan incentives for quality grain.
Sec. 1813. Quality requirements for commodity credit Corporation-owned grain.
Sec. 1814. Establishing quality as a goal for Commodity Credit Corporation
programs.
Sec. 1815. Seed variety information.
Sec. 1816. Survey of grain varieties.
Sec. 1817. Analysis of Variety Survey Data.
Sec. 1818. Sense of Congress concerning end-use performance research.
Sec. 1819. Sense of Congress concerning cooperation in objective testing.
Sec. 1820. Authority to assist farmers and elevator operators.
Sec. 1821. Standardizing commercial inspections.
Subtitle B--Agricultural Cooperation and Development
Sec. 1831. Control and eradication of plant pests.
Sec. 1832. Cooperation in animal disease control.
Sec. 1833. Debt for agricultural development exchanges.
Subtitle C--Other Provisions
Sec. 1841. Agricultural product promotion and enhancement.
Sec. 1842. Agricultural Assistance Program for farmers with disabilities.
Sec. 1843. Emergency grants to assist low-income migrant and seasonal
farmworkers.
Sec. 1844. Narrowing the defense exception to the Farmland Protection
Policy Act.
Sec. 1845. Forage rangeland inventory survey.
Sec. 1846. Accurate tracking of costs of Commodity Certificate Program.
Sec. 1847. Improving the accuracy of Commodity Program budget forecasts.
Subtitle D--Reports and Studies
Sec. 1851. Pass through of savings.
Sec. 1852. Farm value of agricultural products.
Sec. 1853. Study of the concentration of the meat packing industry.
TITLE I--COTTON
SEC. 101. LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE  LIMITATION
PROGRAM, AND LAND DIVERSION FOR THE 1991 THROUGH 1995 CROPS OF UPLAND COTTON.
  Effective only for the 1991 through 1995 crops of upland cotton, the
  Agricultural Act of 1949 is amended by inserting after section 103A (7
  U.S.C. 1444-1) the following new section:
  `SEC. 103B. (a) LOANS- (1) IN GENERAL- Except as provided in paragraph
  (2), the Secretary shall, on presentation of warehouse receipts or other
  acceptable evidence of title, as determined by the Secretary, reflecting
  accrued storage charges of not more than 60 days, make available for the
  1991 through 1995 crops of upland cotton to producers nonrecourse loans for
  a term of 10 months from the first day of the month in which the loan is
  made at such loan level, per pound, as will reflect for the base quality
  of upland cotton, as determined by the Secretary, at average location in
  the United States a level that is not less than the smaller of--
  `(A) 85 percent of the average price (weighted by market and month) of
  such base quality of cotton as quoted in the designated United States spot
  markets during 3 years of the 5-year period ending July 31 in the year in
  which the level of price support is announced, excluding the year in which
  the average price was the highest and the year in which the average price
  was the lowest in such period; or
  `(B) 90 percent of the average, for the 15-week period beginning July
  1 of the year in which the level of price support is announced, of
  the 5 lowest-priced growths of the growths quoted for Middling one and
  three-thirty-seconds inch cotton C.I.F. Northern Europe (adjusted downward
  by the average difference during the period April 15 through October 15
  of the year in which the loan is announced between such average northern
  European price quotation of such quality of cotton and the market quotations
  in the designated United States spot markets for the base quality of upland
  cotton, as determined by the Secretary).
For purposes of perfecting a security interest under any State law, the
evidence of title approved by the Secretary under this paragraph shall be
considered to be a warehouse receipt.
  `(2) ADJUSTMENTS TO LOAN LEVEL- (A) LIMITATION ON DECREASE IN LOAN LEVEL-
  The loan level for any crop determined under paragraph (1) may not be reduced
  by more than 5 percent from the level determined for the preceding crop,
  nor may such loan level be reduced below 50 cents per pound.
  `(B) LIMITATION ON INCREASE IN LOAN LEVEL- If for any crop the average
  northern European price determined under paragraph (1)(B) is less than the
  average United States spot market price determined under paragraph (1)(A),
  the Secretary may increase the loan level to such level as the Secretary
  may deem appropriate, not in excess of the average United States spot
  market price determined under paragraph (1)(A).
  `(3) ANNOUNCEMENT OF LOAN LEVEL- The loan level for any crop of upland
  cotton shall be determined and announced by the Secretary not later than
  November 1 of the calendar year preceding the marketing year for which such
  loan is to be effective.  Such loan level shall not thereafter be changed.
  `(4) LENGTH OF TERMS OF NONRECOURSE LOANS- (A) EXTENSION OF TERMS- Except
  as provided in subparagraph (B), nonrecourse loans provided for in this
  section shall, on request of the producer during the 10th month of the loan
  period for the cotton, be made available for an additional term of 8 months.
  `(B) LIMITATION ON EXTENSIONS- A request to extend the loan period shall not
  be approved in any month in which the average price of the base quality of
  upland cotton, as determined by the Secretary, in the designated spot markets
  for the preceding month exceeded 130 percent of the average price of such
  base quality of cotton in such markets for the preceding 36-month period.
  `(5) COMPETITIVE POSITION DETERMINATION- (A) IN GENERAL- If the Secretary
  determines that the prevailing world market price for upland cotton
  (adjusted to United States quality and location) is below the loan level
  determined under the foregoing provisions of this subsection, in order
  to make United States upland cotton competitive in world markets, the
  Secretary shall implement the provisions of Plan A or Plan B in accordance
  with this paragraph.
  `(B) REDUCED LOAN REPAYMENT LEVEL- If the Secretary elects to implement
  Plan A, the Secretary shall permit a producer to repay a loan made for
  any crop at a level determined and announced by the Secretary at the same
  time the Secretary announces the loan level for such crop as determined
  under paragraph (3).  Such repayment level for loans on such crops shall
  not be less than 80 percent of the loan level determined for the crop.
  Such repayment level, once announced for the crop, shall not thereafter
  be changed.
  `(C) MARKETING LOAN- (i) If the Secretary elects to implement Plan B,
  except as provided in clause (ii), the Secretary shall permit a producer
  to repay a loan made for any crop at a level that is the lesser of--
  `(I) the loan level determined for such crop; or
  `(II) the prevailing world market price for upland cotton (adjusted to
  United States quality and location), as determined by the Secretary.
  `(ii) For each of the 1991 through 1995 crops of cotton, if the prevailing
  world market price for upland cotton (adjusted to United States quality
  and location) as determined by the Secretary, is less than 80 percent
  of the loan level determined for such crop, the Secretary may permit a
  producer to repay a loan made under this subsection for a crop at such level
  (not in excess of 80 percent of the loan level determined for such crop)
  as the Secretary determines will--
  `(I) minimize potential loan forfeitures;
  `(II) minimize the accumulation of cotton stocks by the Federal Government;
  `(III) minimize the cost incurred by the Federal Government in storing
  cotton; and
  `(IV) allow cotton produced in the United States to be marketed freely
  and competitively, both domestically and internationally.
  `(D) FIRST HANDLER NEGOTIABLE MARKETING CERTIFICATES- (i) During the
  period beginning August 1, 1991, and ending July 31, 1996, if a program
  carried out under Plan A or Plan B fails to make United States upland
  cotton fully competitive in world markets and the prevailing world market
  price of upland cotton (adjusted to United States quality and location),
  as determined by the Secretary, is below the current loan repayment rate
  for upland cotton determined under subparagraph (A), then in order to make
  United States upland cotton competitive in world markets and to maintain
  and expand domestic consumption and exports of upland cotton produced
  in the United States, the Secretary shall provide for the issuance of
  negotiable marketing certificates in accordance with this subparagraph.
  `(ii) The Commodity Credit Corporation, under such regulations as the
  Secretary may prescribe, shall make payments, through the issuance of
  negotiable marketing certificates, to first handlers of cotton (persons
  regularly engaged in buying or selling upland cotton) who have entered
  into an agreement with the Commodity Credit Corporation to participate in
  the program established under this subparagraph.  Such payments shall be
  made in such monetary amounts and subject to such terms and conditions as
  the Secretary determines will make upland cotton produced in the United
  States available at competitive prices, consistent with the purposes of
  this subparagraph.
  `(iii) The value of each certificate issued under clause (ii) shall be
  based on the difference between--
  `(I) the loan repayment rate for upland cotton under Plan A or Plan B,
  as the case may be; and
  `(II) the prevailing world market price of upland cotton (adjusted to
  United States quality and location), as determined by the Secretary.
  `(iv) The Commodity Credit Corporation, under regulations prescribed by the
  Secretary, may assist any person receiving marketing certificates under this
  subparagraph in the redemption of certificates for cash, or marketing or
  exchange of such certificates for agricultural commodities or the products
  thereof owned by the Commodity Credit Corporation, at such times, in such
  manner, and at such price levels as the Secretary determines will best
  effectuate the purposes of the program established under this subparagraph.
  Any price restrictions that may otherwise apply to the disposition of
  agricultural commodities by the Commodity Credit Corporation shall not
  apply to the redemption of certificates under this subparagraph.
  `(v) Insofar as practicable, the Secretary shall permit owners of
  certificates to designate the commodities and the products thereof,
  including storage sites thereof, such owners would prefer to receive
  in exchange for certificates.  If any certificate is not presented for
  redemption, marketing, or exchange within a reasonable number of days
  after the issuance of such certificate (as determined by the Secretary),
  reasonable costs of storage and other carrying charges, as determined by the
  Secretary, shall be deducted from the value of the certificate for the period
  beginning after such reasonable number of days and ending with the date
  of the presentation of such certificate to the Commodity Credit Corporation.
  `(vi) The Secretary shall take such measures as may be necessary to prevent
  the marketing or exchange of agricultural commodities and products for
  certificates under this subsection from adversely affecting the income of
  producers of such commodities or products.
  `(vii) Under regulations prescribed by the Secretary, certificates issued
  to cotton handlers under this subparagraph may be transferred to other
  handlers and persons approved by the Secretary.
  `(E) DETERMINATION OF PREVAILING WORLD MARKET PRICE- (i) The Secretary
  shall prescribe by regulation--
  `(I) a formula to define the prevailing world market price for upland cotton
  (adjusted to United States quality and location); and
  `(II) a mechanism by which the Secretary shall announce periodically the
  prevailing world market price for upland cotton (adjusted to United States
  quality and location).
  `(ii) The prevailing world market price for upland cotton (adjusted to United
  States quality and location) established under this subparagraph shall
  be used for purposes of both Plan A and Plan B and marketing certificates
  under subparagraph (D).
  `(F) ADJUSTMENT TO PREVAILING WORLD MARKET PRICE- (i) During the period
  beginning August 1, 1991, and ending July 31, 1996, the prevailing world
  market price for upland cotton (adjusted to United States quality and
  location) established under subparagraph (E) shall be further adjusted if:
  `(I) such adjusted prevailing world market price is less than 115 percent
  of the current crop year loan level for the base quality of upland cotton,
  as determined by the Secretary; and
  `(II) the Friday through Thursday average price quotation for the
  lowest-priced United States growth as quoted for Middling (M) one
  and three-thirty seconds inch cotton delivered C.I.F.  Northern Europe
  is greater than the Friday through Thursday average price of the five
  lowest-priced growths of upland cotton, as quoted for Middling (M) one
  and three-thirty seconds inch cotton, delivered C.I.F. Northern Europe
  (hereafter referred to as `the Northern Europe price').
  `(ii) Such adjusted prevailing world market price shall be further adjusted
  on the basis of some or all of the following data, as available:
  `(I) the United States share of world exports;
  `(II) the current level of cotton export sales and cotton export shipments;
  and
  `(III) other data determined by the Secretary, or a designee of the
  Secretary, to be relevant in establishing an accurate prevailing world market
  price for upland cotton (adjusted to United States quality and location).
  `(iii) The adjustment may not exceed the difference between the Friday
  through Thursday average price for the lowest-priced United States growth
  as quoted for Middling one and three-thirty seconds inch cotton delivered
  C.I.F. Northern Europe and the Northern Europe price.
  `(G) COTTON USER NEGOTIABLE MARKETING CERTIFICATES- During the period
  beginning August 1, 1991, and ending July 31, 1996, if for any consecutive
  four-week period, the Friday through Thursday average price quotation for
  the lowest-priced United States growth, as quoted for Middling (M) one
  and three-thirty seconds inch cotton, delivered C.I.F. Northern Europe
  exceeds the Northern Europe price by more than 1.25 cents per pound,
  the Secretary shall issue negotiable marketing certificates to domestic
  users or exporters for documented sales made in the week following such
  consecutive four-week period.  The value of such negotiable marketing
  certificates shall be based on the amount of the difference, reduced by 1.25
  cents per pound, in such prices during the fourth week of the consecutive
  four-week period multiplied by the quantity of upland cotton included in
  such documented sales.  The provisions of subparagraphs (D)(iv) through
  (vii) shall apply to negotiable marketing certificates issued under this
  subparagraph, and any such certificates may be transferred to other persons
  approved by the Secretary under regulations prescribed by the Secretary.
  `(H) SPECIAL IMPORT QUOTA; ONE WEEK'S MILL CONSUMPTION- (i) The President
  shall, within 60 days after the date of enactment of this section,
  establish an import quota program which shall provide that whenever
  the Secretary determines and announces that for any consecutive ten
  week period, the Friday through Thursday average price quotation for
  the lowest-priced United States growth, as quoted for Middling (M) one
  and three-thirty seconds inch cotton, delivered C.I.F. Northern Europe,
  adjusted for the value of any certificates issued under subparagraph
  (F), exceeds the Northern Europe price by more than 1.25 cents per pound,
  there shall immediately be in effect a special limited global import quota.
  `(ii) Such quota shall be equal to one week's consumption of upland cotton
  by domestic mills at the seasonally adjusted average rate of the most
  recent 3 months for which data are available.
  `(iii) Such quota shall apply to upland cotton purchased not later than
  90 days after the date of the Secretary's announcement under clause (i)
  and entered into the United States not later than 180 days after such date.
  `(iv) A special quota period may be established that overlaps any existing
  quota period if required by the provisions of clause (i), except that
  a special quota period may not be established under this paragraph if a
  special quota period has been established under subsection (n).
  `(6) RECOURSE SEED COTTON LOANS- In order to encourage and assist producers
  in the orderly ginning and marketing of their production of upland cotton,
  the Secretary shall make recourse loans available to such producers on
  seed cotton in accordance with authority vested in the Secretary under
  the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.).
  `(b) PAYMENTS FOR FORGOING LOAN- (1) IN GENERAL- The Secretary shall, for
  each of the 1991 through 1995 crops of upland cotton, make payments available
  to producers who, although eligible to obtain a loan under subsection (a),
  agree to forgo obtaining such loan in return for such payments.
  `(2) COMPUTATION- A payment under this subsection shall be computed by
  multiplying--
  `(A) the loan payment rate; by
  `(B) the quantity of upland cotton on which the producer requests payment.
  `(3) QUANTITY ELIGIBLE- For purposes of this subsection, the quantity of
  upland cotton eligible for payment may not exceed the product obtained
  by multiplying--
  `(A) the individual farm program acreage for the crop; by
  `(B) the actual yield per harvested acre established for the farm.
  `(4) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment
  rate shall be the amount by which--
  `(A) the loan level determined for such crop under subsection (a) exceeds
  `(B) the level at which a loan may be repaid under subsection (a).
  `(5) PAYMENT IN NEGOTIABLE MARKETING CERTIFICATES- The Secretary may make
  up to one-half the amount of a payment under this subsection available in
  the form of negotiable marketing certificates, subject to the terms and
  conditions provided in subsection (a)(5)(D).
  `(c) DEFICIENCY PAYMENTS- (1) IN GENERAL- (A) COMPUTATION- The Secretary
  shall make available to producers payments (to be known as `deficiency
  payments') for each of the 1991 through 1995 crops of upland cotton in an
  amount computed by multiplying--
  `(i) the payment rate; by
  `(ii) the individual farm program acreage; by
  `(iii) the farm program payment yield established for the crop for the farm.
  `(B) 0/92 AND 50/92 PROGRAMS- (i) If an acreage limitation program under
  subsection (e)(2) is in effect for a crop of upland cotton and the producers
  on a farm devote a portion of the permitted upland cotton acreage of the
  farm (as determined in accordance with subsection (e)(2)(A)) equal to more
  than 8 percent of the permitted upland cotton acreage of the farm for the
  crop to conservation uses (except as provided in subparagraph (F))--
  `(I) such portion of the permitted upland cotton acreage in excess of 8
  percent of such acreage devoted to conservation uses (except as provided
  in subparagraph (F)) shall be considered to be planted to upland cotton
  for the purpose of determining the individual farm program acreage in
  accordance with subsection (e)(2)(E) and for the purpose of determining
  the acreage on the farm required to be devoted to conservation uses in
  accordance with subsection (e)(2)(D); and
  `(II) the producers shall be eligible for payments under this paragraph
  on such acreage, subject to the compliance of the producers with clause (ii).
  `(ii)(I) To be eligible for payments under clause (i), except as provided
  in subclause (II) and clause (iv), the producers on a farm must actually
  plant upland cotton for harvest on at least 50 percent of the permitted
  upland cotton acreage of the farm.
  `(II) The Secretary may waive the 50 percent planting requirement in
  subclause (I) for any crop of upland cotton.
  `(iii) Notwithstanding any other provision of this section, any producer
  who elects to devote a portion (or, where the Secretary exercises the waiver
  authority under clause (ii)(II), all) of the permitted upland cotton acreage
  of 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 such crop at a rate established
  by the Secretary, except that such rate may not be established at less
  than the projected deficiency payment rate for the crop, as determined by
  the Secretary.  Such projected payment rate for the crop shall be announced
  by the Secretary prior to the period during which upland cotton producers
  may agree to participate in the program for such crop.
  `(iv) If a State or local agency has imposed in an area of a State or
  county a quarantine on the planting of upland cotton for harvest on farms in
  such area, the State committee established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) may recommend
  to the Secretary that payments be made under this paragraph to producers
  in such area who were required to forgo the planting of upland cotton
  for harvest on acreage to alleviate or eliminate the condition requiring
  such quarantine.  If the Secretary determines that such condition exists,
  the Secretary may make payments under this paragraph to such producers.
  To be eligible for payments under this clause, such producers must devote
  such acreage to conservation uses (except as provided in subparagraph (F)).
  `(v) If an acreage limitation program under subsection (e) is in effect for
  any crop of upland cotton and if the Secretary determines that producers on
  a farm are prevented from planting the acreage intended for upland cotton
  to upland cotton because of drought, flood, or other natural disaster, or
  other condition beyond the control of the producers, the Secretary shall
  make available to such producers payments computed as provided in paragraph
  (1)(A).  Producers shall be eligible for such payments if a portion (or all)
  of the permitted upland cotton acreage of the farm is devoted to conservation
  uses (except as provided in paragraph (F)).  Such acreage equal to more
  than 8 percent of the permitted upland cotton acreage of the farm for the
  crop shall be considered to be planted to upland cotton for the purpose of
  determining the individual farm program acreage in accordance with subsection
  (e)(2)(E) and for the purpose of determining the acreage on the farm required
  to be devoted to conservation uses in accordance with subsection (e)(2)(D).
  The provisions of clauses (iii) and (vi) shall apply to any such producers.
  `(vi) The upland cotton crop acreage base and upland cotton farm program
  payment yield of the farm shall not be reduced due to the fact that such
  portion (or all) of the permitted acreage of the farm was devoted to
  conserving uses (except as provided in subparagraph (F)).
  `(vii) Other than as provided in clauses (i) through (v), payments may
  not be made under this paragraph for any crop on a greater acreage than
  the acreage actually planted to upland cotton.
  `(viii) Any acreage considered to be planted to upland cotton in accordance
  with clauses (i) and (v) may not also be designated as conservation use
  acreage for the purpose of fulfilling any provisions under any acreage
  limitation or land diversion program requiring that the producers devote
  a specified acreage to conservation uses.
  `(C) PAYMENT RATE- The payment rate for upland cotton shall be the amount
  by which the established price for the crop of upland cotton exceeds the
  higher of--
  `(i) the national average market price received by producers during the
  calendar year that includes the first 5 months of the marketing year for
  such crop, as determined by the Secretary; or
  `(ii) the loan level determined for such crop.
  `(D) MINIMUM ESTABLISHED PRICE- The established price for upland cotton
  shall not be less than $0.729 per pound.
  `(E) REDUCTION FOR DISASTER PAYMENTS- The total quantity of upland cotton
  on which payments would otherwise be payable to a producer on a farm for
  any crop under this paragraph shall be reduced by the quantity on which any
  disaster payment is made to the producer for the crop under paragraph (2).
  `(F) ALTERNATIVE CROPS- The Secretary may permit, subject to such terms
  and conditions as the Secretary may prescribe, all or any part of acreage
  otherwise required to be devoted to conservation uses as a condition of
  qualifying for payments under subparagraph (B) to be devoted to sweet
  sorghum or the production of guar, sesame, safflower, sunflower, rapeseed,
  castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale,
  rye, commodities for which no substantial domestic production or market
  exists but that could yield industrial raw material being imported, or
  likely to be imported, into the United States, or commodities grown for
  experimental purposes (including kenaf), subject to the following sentence.
  The Secretary may permit such acreage to be devoted to such production
  only if the Secretary determines that--
  `(i) the production is not likely to increase the cost of the price support
  program and will not affect farm income adversely; and
  `(ii) the production is needed to provide an adequate supply of the
  commodity, or, in the case of commodities for which no substantial domestic
  production or market exists but that could yield industrial raw materials,
  the production is needed to encourage domestic manufacture of such raw
  material and could lead to increased industrial use of such raw material
  to the long-term benefit of United States industry.
  `(2) DISASTER ASSISTANCE- (A) PREVENTED PLANTING PAYMENTS- Except as provided
  in subparagraph (C), if the Secretary determines that the producers on
  a farm are prevented from planting any portion (or all) of the acreage
  intended for upland cotton to upland cotton or other nonconserving crops
  because of drought, flood, or other natural disaster, or other condition
  beyond the control of the producers, the Secretary shall make a prevented
  planting disaster payment to the producers in an amount equal to the
  product obtained by multiplying--
  `(I) the number of acres so affected but not to exceed the acreage planted
  to upland cotton for harvest (including any acreage that the producers were
  prevented from planting to upland cotton or other nonconserving crops in
  lieu of upland cotton because of drought, flood, or other natural disaster,
  or other condition beyond the control of the producers) in the immediately
  preceding year; by
  `(II) 75 percent of the farm program payment yield established for the
  farm by the Secretary; by
  `(III) a payment rate equal to 33 1/3  percent of the established price
  for the crop.
  `(ii) Payments made by the Secretary under this subparagraph may be made
  in the form of cash or in such other form as the Secretary is authorized
  by law to make.
  `(B) REDUCED YIELD PAYMENTS- Except as provided in subparagraph (C),
  if the Secretary determines that because of drought, flood, or other
  natural disaster, or other condition beyond the control of the producers,
  the total quantity of upland cotton that the producers are able to harvest
  on any farm is less than the result of multiplying 75 percent of the farm
  program payment yield established for the farm for such crop by the acreage
  planted for harvest for such crop, the Secretary shall make a reduced yield
  disaster payment to the producers at a rate equal to 33 1/3  percent of
  the established price for the crop for the deficiency in production below
  75 percent for the crop.
  `(C) LIMITATION DUE TO CROP INSURANCE- Producers on a farm shall not be
  eligible for--
  `(i) prevented planting disaster payments under subparagraph (A), if
  prevented planting crop insurance is available to the producers under the
  Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with respect to the
  upland cotton acreage of the producers; or
  `(ii) reduced yield disaster payments under subparagraph (B), if reduced
  yield crop insurance is available to the producers under such Act with
  respect to the upland cotton acreage of the producers.
  `(D) EXCEPTION FROM LIMITATION- (i) Notwithstanding subparagraph (C),
  the Secretary may make a disaster payment to producers on a farm under
  this paragraph if the Secretary determines that--
  `(I) as the result of drought, flood, or other natural disaster, or other
  condition beyond the control of the producers, the producers have suffered
  substantial losses of production either from being prevented from planting
  upland cotton or other nonconserving crops or from reduced yields;
  `(II) such losses have created an economic emergency for the producers;
  `(III) crop insurance indemnity payments under the Federal Crop Insurance
  Act (7 U.S.C. 1501 et seq.) and other forms of assistance made available by
  the Federal Government to such producers for such losses are insufficient
  to alleviate such economic emergency; and
  `(IV) additional assistance must be made available to such producers to
  alleviate such economic emergency.
  `(ii) The Secretary may make such adjustments in the amount of payments
  made available under this paragraph with respect to an individual farm so
  as to assure the equitable allotment of such payments among producers,
  taking into account other forms of Federal disaster assistance provided
  to the producers for the crop involved.
  `(d) FARM PROGRAM PAYMENT YIELDS- The farm program payment yields for
  farms for each crop of upland cotton shall be determined under title V.
  `(e) PROGRAMS TO REDUCE ACREAGE- (1) IN GENERAL- (A) EXCESSIVE SUPPLY-
  Notwithstanding any other provision of this Act, if the Secretary determines
  that the total supply of upland cotton, in the absence of an acreage
  limitation program, will be excessive taking into account the need for an
  adequate carry-over to maintain reasonable and stable supplies and prices
  and to meet a national emergency, the Secretary may provide for any crop
  of upland cotton an acreage limitation program as described in paragraph (2).
  `(B) CONSIDERATION OF CONSERVATION RESERVE- In making a determination
  under subparagraph (A), the Secretary shall take into consideration the
  number of acres placed in the conservation acreage reserve established
  under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831).
  `(C) ANNOUNCEMENT OF PROGRAM- (i) If the Secretary elects to put an acreage
  limitation program into effect for any crop year, the Secretary shall make
  a preliminary announcement of any such program not later than November
  1 of the calendar year preceding the year in which the crop is harvested.
  Such announcement shall include, among other information determined necessary
  by the Secretary, an announcement of the uniform percentage reduction in
  the upland cotton crop acreage base described in paragraph (2)(A).
  `(ii) Not later than January 1 of the calendar year in which the crop is
  harvested, the Secretary shall make a final announcement of such program.
  Such announcement shall include, among other information determined
  necessary by the Secretary, an announcement of the uniform percentage
  reduction in the upland cotton crop described in paragraph (2)(A).
  `(iii) The Secretary shall allow producers in early planting areas to
  elect to participate in the program on the terms of the acreage limitation
  program--
  `(I) first announced for the crop under subparagraph (C)(i); or
  `(II) as subsequently revised under subparagraph (C)(ii)
if the Secretary determines that such producers may be unfairly disadvantaged
by such revision.
  `(D) RATIO OF CARRY-OVER TO TOTAL DISAPPEARANCE- The Secretary shall carry
  out an acreage limitation program described in paragraph (2) for a crop
  of upland cotton in a manner that will result in a ratio of carry-over to
  total disappearance (domestic use plus exports) of 30 percent, based on the
  Secretary's most recent projection of carry-over and total disappearance
  at the time of announcement of the acreage limitation program.
  `(2) ACREAGE LIMITATION PROGRAM- (A) UNIFORM PERCENTAGE REDUCTION- If an
  upland cotton acreage limitation program is announced under paragraph (1),
  such limitation shall be achieved by applying a uniform percentage reduction
  (not to exceed 25 percent) to the upland cotton crop acreage base for the
  crop for each upland cotton-producing farm.
  `(B) ENFORCEMENT- Except as provided in subsection (g), producers who
  knowingly produce upland cotton in excess of the permitted upland cotton
  acreage for the farm, as established in accordance with subparagraph (A),
  shall be ineligible for upland cotton loans and payments with respect to
  that farm.
  `(C) CROP ACREAGE BASES- Upland cotton crop acreage bases for each crop
  of upland cotton shall be determined under title V.
  `(D) CONSERVATION USE ACREAGE- (i) A number of acres on the farm shall
  be devoted to conservation uses, in accordance with regulations issued by
  the Secretary.  Such number shall be determined by dividing--
  `(I) the product obtained by multiplying the number of acres required
  to be withdrawn from the production of upland cotton times the number of
  acres planted to such commodity; by
  `(II) the number of acres authorized to be planted to such commodity under
  the limitation established by the Secretary.
  `(ii) The number of acres determined under clause (i) is hereafter in this
  subsection referred to as `reduced acreage'.
  `(E) FARM PROGRAM ACREAGE- Except as provided in subsection (c)(1)(B), the
  individual farm program acreage shall be the acreage planted on the farm
  to upland cotton for harvest within the permitted upland cotton acreage
  for the farm as established under this paragraph.
  `(3) USE OF CONSERVATION ACREAGE- (A) PROTECTION FROM WEEDS AND EROSION-
  The regulations issued by the Secretary under paragraph (2) with respect to
  acreage required to be devoted to conservation uses shall assure protection
  of such acreage from weeds and wind and water erosion.
  `(B) PERMITTED PLANTINGS- The Secretary may permit, subject to such
  terms and conditions as the Secretary may prescribe, all or any part of
  such acreage to be devoted to sweet sorghum, or the production of guar,
  sesame, safflower, sunflower, rapeseed, castor beans, mustard seed,
  crambe, plantago ovato, flaxseed, triticale, rye, or other commodity,
  if the Secretary determines that such production is needed to provide an
  adequate supply of such commodities, is not likely to increase the cost
  of the price support program, and will not affect farm income adversely.
  `(C) HAYING AND GRAZING- (i) Except as provided in clause (ii) haying and
  grazing of acreage designated as conservation use acreage for the purpose
  of meeting any requirements established under an acreage limitation
  program (including a program conducted under subsection (c)(1)(B)), or
  land diversion program established under this section shall be permitted,
  except during any consecutive 5-month period that is established by the
  State committee established under section 8(b) of the Soil Conservation
  and Domestic Allotment Act (16 U.S.C. 590h(b)) for a State.  Such 5-month
  period shall be established during the period beginning April 1, and ending
  October 31, of a year.
  `(ii) In the case of a natural disaster, the Secretary may permit unlimited
  haying and grazing on such acreage.
  `(4) LAND DIVERSION PROGRAM- (A) PAYMENTS- (i) The Secretary may make
  land diversion payments to producers of upland cotton, whether or not an
  acreage limitation program for upland cotton is in effect, if the Secretary
  determines that such land diversion payments are necessary to assist in
  adjusting the total national acreage of upland cotton to desirable goals.
  Such land diversion payments shall be made to producers who, to the extent
  prescribed by the Secretary, devote to approved conservation uses an acreage
  of cropland on the farm in accordance with land diversion contracts entered
  into by the Secretary with such producers.
  `(ii) If, at the time of final announcement of the acreage limitation
  program established under this subsection, the projected carry-over of
  upland cotton for the crop year is equal to or greater than 8 million
  bales, the Secretary shall offer a paid land diversion program to producers
  of upland cotton.  Payments to producers under such a program shall be
  determined by multiplying--
  `(I) the payment rate, of not less than 35 cents per pound of cotton,
  established by the Secretary; by
  `(II) the program payment yield established for the crop for the farm; by
  `(III) the number of permitted upland cotton acres diverted on the farm.
  `(B) BIDS FOR CONTRACTS- The amounts payable to producers under land
  diversion contracts may be determined through the submission of bids for
  such contracts by producers in such manner as the Secretary may prescribe
  or through such other means as the Secretary determines appropriate. In
  determining the acceptability of contract offers, the Secretary shall
  take into consideration the extent of the diversion to be undertaken by
  the producers and the productivity of the acreage diverted.
  `(C) LIMITATION ON DIVERTED ACREAGE- The Secretary shall limit the total
  acreage to be diverted under this paragraph--
  `(i) to not more than 15 percent of the upland cotton crop acreage base
  for a farm; and
  `(ii) under agreements in any county or local community so as not to affect
  adversely the economy of the county or local community.
The Secretary may allow producers to participate in a land diversion program
under this paragraph at a level lower than the maximum level announced by
the Secretary, at the option of the producer, if the Secretary determines
that it will increase participation in such program.
  `(5) WILDLIFE USES FOR REDUCED AND DIVERTED ACREAGE- (A) IN GENERAL- The
  reduced acreage and additional diverted acreage may be devoted to wildlife
  food plots or wildlife habitat in conformity with standards established
  by the Secretary in consultation with wildlife agencies.
  `(B) COST SHARING- The Secretary may pay an appropriate share of the cost
  of practices designed to carry out the purposes of subparagraph (A).
  `(C) ENCOURAGEMENT OF PUBLIC ACCESS- The Secretary may provide for an
  additional payment on such acreage in an amount determined by the Secretary
  to be appropriate in relation to the benefit to the general public if the
  producer agrees to permit, without other compensation, access to all or
  such portion of the farm, as the Secretary may prescribe, by the general
  public, for hunting, trapping, fishing, and hiking, subject to applicable
  State and Federal regulations.
  `(6) PARTICIPATION AGREEMENTS- (A) IN GENERAL- An operator of a farm desiring
  to participate in the program conducted under this subsection shall execute
  an agreement with the Secretary providing for such participation not later
  than such date as the Secretary may prescribe.
  `(B) MODIFICATION OR TERMINATION- The Secretary may, by mutual agreement
  with producers on a farm, terminate or modify any such agreement if the
  Secretary determines such action necessary because of an emergency created
  by drought or other disaster or to prevent or alleviate a shortage in the
  supply of agricultural commodities.
  `(f) ONE-HALF ACREAGE REDUCTION PROGRAM- (1) IN GENERAL- The Secretary may,
  for each of the 1991 through 1995 crops of upland cotton, make payments
  available to producers who meet the requirements of this subsection.
  `(2) FORM OF PAYMENT- Such payments may be--
  `(A) made in the form of upland cotton owned by the Commodity Credit
  Corporation;  or
  `(B) made in such other form as the Secretary is authorized by law to make.
  `(3) DETERMINATION OF PAYMENT- (A) IN GENERAL- Payments under this subsection
  shall be determined in the same manner as provided in subsection (b).
  `(B) QUANTITY OF COTTON MADE AVAILABLE- The quantity of upland cotton to
  be made available to a producer under this subsection shall be equal in
  value to the payments so determined under such subsection.
  `(4) ELIGIBILITY- A producer shall be eligible to receive a payment under
  this subsection for a crop if the producer--
  `(A) agrees to forgo obtaining a loan under subsection (a);
  `(B) agrees to forgo receiving payments under subsection (c);
  `(C) does not plant upland cotton for harvest in excess of the crop
  acreage base reduced by one-half of any acreage required to be diverted
  from production under subsection (f); and
  `(D) otherwise complies with this section.
  `(g) EQUITABLE RELIEF- (1) LOANS AND PAYMENTS- If the failure of a producer
  to comply fully with the terms and conditions of the program formulated under
  this section precludes the making of loans and payments, the Secretary may,
  nevertheless, make such loans and payments in such amounts as the Secretary
  determines are equitable in relation to the seriousness of the failure.
  The Secretary may consider whether the producer made a good faith effort to
  comply fully with the terms and conditions of such program in determining
  whether equitable relief is warranted under this paragraph.
  `(2) DEADLINES AND PROGRAM REQUIREMENTS- The Secretary may authorize the
  county and State committees established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or
  modify deadlines and other program requirements in cases in which lateness
  or failure to meet such other requirements does not affect adversely the
  operation of the program.
  `(h) REGULATIONS- The Secretary may issue such regulations as the Secretary
  determines necessary to carry out this section.
  `(i) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the
  program authorized by this section through the Commodity Credit Corporation.
  `(j) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to
  assignment of payments) shall apply to payments under this section.
  `(k) EQUITABLE SHARING OF PAYMENTS- The Secretary shall provide for the
  sharing of payments made under this section for any farm among the producers
  on the farm on a fair and equitable basis.
  `(l) TENANTS AND SHARECROPPERS- The Secretary shall provide adequate
  safeguards to protect the interests of tenants and sharecroppers.
  `(m) PROHIBITIONS- (1) CROSS COMPLIANCE- (A) IN GENERAL- Compliance on
  a farm with the terms and conditions of any other commodity program or
  compliance with crop acreage base requirements for any other commodity
  may not be required as a condition of eligibility for loans or payments
  under this section.
  `(B) CROP ACREAGE BASE INCREASES- If a producer on a farm is participating
  in the cotton program under this section, the crop acreage base for any
  other commodity for the farm may not be increased if such commodity is
  produced on the farm in a manner that is not in compliance with--
  `(i) the terms and conditions of the applicable commodity program for such
  commodity; or
  `(ii) the crop acreage base requirements of the applicable commodity
  program for such commodity.
  `(2) OFFSETTING COMPLIANCE- The Secretary may not require producers on a
  farm, as a condition of eligibility for loans or payments under this section
  for such farm, to comply with the terms and conditions of the upland cotton
  program with respect to any other farm operated by such producers.
  `(n) SPECIAL IMPORT QUOTA; 21 DAY'S MILL CONSUMPTION- (1) DETERMINATION-
  Whenever the Secretary determines that the average price of the base quality
  of upland cotton, as determined by the Secretary, in the designated spot
  markets for a month exceeded 130 percent of the average price of such quality
  of cotton in such markets for the preceding 36 months, notwithstanding
  any other provision of law, the President shall immediately establish and
  proclaim a special limited global import quota for upland cotton subject
  to the following conditions:
  `(A) QUANTITY OF QUOTA- The quantity of the special quota shall be
  equal to 21 days of domestic mill consumption of upland cotton at the
  seasonally adjusted average rate of the most recent 3 months for which
  data are available.
  `(B) QUANTITY IN EVENT OF PRIOR QUOTA- If a special quota has been
  established under this subsection during the preceding 12 months, the
  quantity of the quotas next established hereunder shall be the smaller of 21
  days of domestic mill consumption calculated as set forth in subparagraph (A)
  or the quantity required to increase the supply to 130 percent of the demand.
  `(C) DEFINITIONS- As used in subparagraph (B):
  `(i) The term `supply' means, using the latest official data of the Bureau
  of the Census, the Department of Agriculture, and the Department of the
  Treasury--
  `(I) the carry-over of upland cotton at the beginning of the marketing year
  (adjusted to 480-pound bales) in which the special quota is established; plus
  `(II) production of the current crop; plus
  `(III) imports to the latest date available during the marketing year.
  `(ii) The term `demand' means--
  `(I) the average seasonally adjusted annual rate of domestic mill consumption
  in the most recent 3 months for which data are available; plus
  `(II) the larger of either the average exports of upland cotton for the
  preceding 6 marketing years, or the cumulative exports of upland cotton
  plus outstanding export sales for the marketing year in which the special
  quota is established.
  `(D) QUOTA ENTRY PERIOD- When a special quota is established under this
  subsection, cotton may be entered under such quota during the 90-day period
  beginning on the effective date of the proclamation.
  `(2) PROHIBITION- Notwithstanding paragraph (1), a special quota period
  may not be established--
  `(A) that overlaps an existing quota period; or
  `(B) when a special quota period has been established under subsection
  (a)(5)(H).'.
SEC. 102. 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 1991 through 1995 crops of upland cotton.
SEC. 103. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.
  Effective only with respect to the period beginning August 1, 1991,
  and ending July 31, 1996, the tenth sentence of section 407 of the
  Agricultural Act of 1949 (7 U.S.C. 1427) is amended by striking all of
  that sentence through the words `110 per centum of the loan rate, and
  (2)' and inserting the following: `Notwithstanding any other provision
  of law, (1) the Commodity Credit Corporation shall sell upland cotton
  for unrestricted use at the same prices as it sells upland cotton for
  export; such sales shall be made on a competitive bid basis, but in no
  event, however, at less than 115 percent of the lower of the loan rate
  or the loan repayment rate in effect for the week in which it is sold
  for the base quality of upland cotton, as determined by the Secretary,
  adjusted for such current market differentials reflecting grade, quality,
  location, and other value factors as the Secretary determines appropriate
  plus reasonable carrying charges, and (2)'.
SEC. 104. NONAPPLICABILITY OF SECTION 103(a) OF THE AGRICULTURAL ACT OF 1949
TO THE 1991 THROUGH 1995 CROPS OF UPLAND COTTON.
  Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall
  not be applicable to the 1991 through 1995 crops.
SEC. 105. SKIPROW PRACTICES.
  Section 374(a) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1374(a))
  is amended by striking `1990 crops' and inserting `1995 crops.  However,
  for the 1991 through 1995 crops, the rules shall allow 30 inch rows to be
  taken into account for classifying the acreage planted to cotton and the
  area skipped'.
SEC. 106. PRELIMINARY ALLOTMENTS FOR 1996 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 1996 crop.
SEC. 107. EXTRA LONG STAPLE COTTON.
  Section 103(h) of the Agricultural Act of 1949 (7 U.S.C. 1444(h))
  is amended--
  (1) in paragraph (16)(B) by striking `each of the 1989 and 1990' and
  inserting `the 1989 and subsequent'; and
  (2) in paragraph (16)(C) by striking `each of the 1987 through 1990'
  and inserting `the 1987 and subsequent'; and
  (3) in paragraph (19) by striking `1991' and inserting `1996'.
SEC. 108. ADJUSTMENT OF SUPPORT PRICES.
  Section 403 of the Agricultural Act of 1949 (7 U.S.C. 1423) is amended to
  read as follows:
`SEC. 403. ADJUSTMENT OF SUPPORT PRICES.
  `(a)  CROPS OTHER THAN COTTON- Appropriate adjustments may be made in the
  support price for any commodity except cotton for differences in grade,
  type, quality, location and other factors.  Such adjustments shall, so
  far as practicable, be made in such manner that the average support price
  for such commodity will, on the basis of the anticipated incidence of such
  factors be equal to the level of support determined as provided in this Act.
  `(b) COTTON- Appropriate adjustments may be made in the support price for
  cotton for differences in quality factors and location.  Beginning with
  the 1991 crop, the quality differences (premiums and discounts for quality
  factors) for the upland cotton loan program shall be established by the
  Secretary by giving equal weight to (1) loan differences for the preceding
  crop and (2) market differences for such crop in the designated United
  States spot markets.'.
SEC. 109. COTTONSEED AND COTTONSEED OIL PRICE SUPPORT.
  Effective only for the 1991 through 1995 crops of upland cotton, section
  203 of the Agricultural Act of 1949 (7 U.S.C. 1446d) is amended to read
  as follows:
`SEC. 203. COTTONSEED AND COTTONSEED OIL PRICE SUPPORT.
  `If the Secretary determines that any oilseed program or programs cause,
  or are likely to cause, a reduction in prices received by producers for
  cottonseed or by processors for cottonseed oil, the Secretary shall take
  such actions as are necessary to offset the actual or anticipated impact
  of such program on prices for cottonseed or cottonseed oil.  Such actions
  shall only include actions to stabilize or increase the price of cottonseed,
  and shall not include actions to decrease the prices of other oilseeds.'.
TITLE II--SUGAR
Subtitle A--Price Support and Marketing Allotments
SEC. 201.  SUGAR PROGRAM EXTENSION.
  (a)  AMENDMENT TO THE AGRICULTURAL ACT OF 1949- Effective only for the
  1991 through 1995 crops of sugar beets and sugarcane, section 201 of the
  Agricultural Act of 1949 (7 U.S.C. 1446) is amended by--
  (1) striking `honey, and milk' in the first sentence and inserting `honey,
  milk, sugar beets, and sugarcane'; and
  (2) amending subsection (h) to read as follows:
  `(h)(1) The price of each of the 1991 through 1995 crops of sugar beets
  and sugarcane, respectively, shall be supported in accordance with this
  subsection.
  `(2)(A) The Secretary shall support the price of domestically grown
  sugarcane through nonrecourse loans at such level as the Secretary determines
  appropriate but not less than 18 cents per pound for raw cane sugar.
  `(B) The Secretary may increase the support price for each of the 1991
  through 1995 crops of domestically grown sugarcane and sugar beets from
  the price 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,
  and other circumstances that may adversely affect domestic sugar production.
  `(C) If the Secretary makes a determination not to increase the support
  price under subparagraph (B), the Secretary shall submit a report containing
  the findings, decision, and supporting data for such determination to the
  Committee on Agriculture of the House of Representatives and the Committee
  on Agriculture, Nutrition, and Forestry of the Senate.
  `(3) The Secretary shall support the price of each of the 1991 through
  1995 crops of domestically grown sugar beets through nonrecourse loans at
  such level for each such crop as the Secretary determines to reflect--
  `(A) an amount that bears the same relation to the support level for such
  crop of sugarcane under paragraph (2) as the weighted average of producer
  returns for sugar beets bears to the weighted average of producer returns
  for sugarcane, expressed on a cents per pound basis for refined beet sugar
  and raw cane sugar, for the most recent 5 year period for which data are
  available, plus
  `(B) an amount that covers sugar beet processor fixed marketing expenses.
  `(4) The Secretary shall announce the loan rate to be applicable during
  any fiscal year under this subsection as far in advance of the beginning
  of that fiscal year as is practicable consistent with the purposes of
  this subsection.
  `(5)  Loans under this subsection during any fiscal year shall be made
  available not earlier than the beginning of such fiscal year and shall
  mature at the earlier of--
  `(A) the end of 9 months or
  `(B) before the end of such fiscal year.
  `(6)  With respect to those sugar beet producing areas in which sugar
  beets normally are harvested during the last 3 months of a fiscal year,
  the Secretary shall make available, to each borrower under a loan made
  under this subsection during the last 3 months of the fiscal year on sugar
  processed from sugar beets so harvested, a supplementary nonrecourse loan in
  addition to the initial loan.  In each case, the supplementary loan shall--
  `(A) be made available to the borrower as of the first day of the following
  fiscal year;
  `(B) be made at the same loan rate as the initial loan; and
  `(C) mature in 9 months less the amount of time that the initial loan was
  in effect.'.
  (b) REPORT BY COMPTROLLER GENERAL- The Comptroller General of the United
  States shall provide, not later than 12 months after the date of enactment of
  this Act, a report advising the Committee on Agriculture and the Committee
  on Ways and Means of the House of Representatives and the Committee on
  Agriculture, Nutrition, and Forestry of the Senate on the progress the
  various agencies of the United States Government have made in addressing
  the concerns raised by the General Accounting Office in its official report,
  RCED-88-146, dated June 1988.
SEC. 202.  INFORMATION REPORTING.
  (a)  DUTY TO REPORT- All cane sugar refiners and sugar beet processors
  and all manufacturers of crystalline fructose from corn (hereinafter in
  this subtitle referred to as `crystalline fructose') shall furnish the
  Secretary of Agriculture (hereinafter in this subtitle referred to as the
  `Secretary'), on a monthly basis, such information as the Secretary may
  require with respect to such person's importation, distribution, and stock
  levels of sugar or crystalline fructose, respectively.
  (b)  PENALTY- Any person willfully failing or refusing to furnish such
  information, or furnishing willfully any false information, shall be
  subject to a civil penalty of not more than $10,000 for each such violation.
  (c) MONTHLY REPORTS- Using the information received under subsection (a),
  the Secretary shall publish on a monthly basis composite data on imports,
  distribution, and stock levels of sugar and crystalline fructose.
SEC. 203.  MARKETING ALLOTMENTS FOR SUGAR AND CRYSTALLINE
FRUCTOSE.
  (a)  SUGAR ESTIMATES- (1) IN GENERAL- Before the beginning of each of the
  fiscal years 1992 through 1996, the Secretary shall estimate the amount of
  sugar that will be consumed in the United States during such fiscal year
  (other than sugar imported for purposes other than human consumption),
  and the amount of sugar that will be available from carryin stocks or
  from domestically-produced sugarcane and sugar beets for consumption in
  the United States during such year.  The Secretary shall also estimate the
  amount of sugar that will be imported for such consumption during such year
  (other than sugar imported for purposes other than human consumption),
  based on the difference between the amount of estimated consumption and
  the amount of sugar estimated to be available from domestically-produced
  sugarcane, sugar beets and carryin stocks.
  (2) QUARTERLY REESTIMATES- The Secretary shall make quarterly reestimates
  of sugar consumption, availability, and imports for a fiscal year no later
  than the beginning of each of the second through fourth quarters of such
  fiscal year.
  (b)  SUGAR ALLOTMENTS- For any fiscal year in which the Secretary
  estimates, under subsection (a), that imports of sugar for consumption
  in the United States will be less than 1,250,000 short tons, raw value,
  the Secretary shall establish for that year appropriate allotments under
  section 204 for the marketing by processors of sugar processed from
  domestically-produced sugarcane and sugar beets in a manner that is fair,
  efficient, and equitable to producers, processors, and refiners, at a level
  that the Secretary estimates will result in imports of sugar of not less
  that 1,250,000 short tons, raw value, for that year.
  (c) CRYSTALLINE FRUCTOSE ALLOTMENTS- In general, for any fiscal year in which
  the Secretary establishes allotments for the marketing of sugar under section
  204, the Secretary shall establish for that year appropriate allotments for
  the marketing by manufacturers of crystalline fructose manufactured from
  corn, at a level not to exceed the equivalent of 200,000 tons of sugar,
  raw value, during such fiscal year, in a manner that is fair, efficient,
  and equitable to manufacturers.
  (d)  PROHIBITION- (1) SUGAR- (A) EXCEEDING ALLOCATION- At any time allotments
  are in effect and allocated to processors under section 205, the total of--
  (i) the amount of sugar marketed by a processor plus
  (ii) the amount of sugar pledged as collateral for a price support loan
  under section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446)
shall not exceed the amount of the allocation of the allotment made to
such processor.
  (B) EXCEPTIONS- Subparagraph (A) shall not apply--
  (i) to the marketing during a fiscal year of sugar pledged in that
  fiscal year as collateral for a price support loan under section 201 of
  the Agricultural Act of 1949 (7 U.S.C. 1446) after such sugar has been
  subsequently redeemed; or
  (ii) any sale of sugar by a sugar beet processor to another sugar beet
  processor made to enable such other sugar beet processor to fulfill the
  amount of the allocation of the allotment made to such other processor.
  (2) CRYSTALLINE FRUCTOSE- At any time crystalline fructose allotments
  are in effect for manufacturers under subsection (c), no manufacturer may
  exceed the allotment made to it.  No restrictions or allotments shall be
  established on the marketings of any liquid fructose.
  (3) CIVIL PENALTY- Any processor who violates paragraph (1) or
  manufacturer who violates paragraph (2) shall be liable to the Commodity
  Credit Corporation for a civil penalty in an amount equal to 3 times
  the U.S. market value, at the time of the commission of the violation,
  of that quantity of sugar or crystalline fructose involved in the violation.
  (4) DEFINITION OF MARKET- For purposes of this subtitle, the term `market'
  shall mean to sell or otherwise dispose of in commerce in the United States.
SEC. 204.  ESTABLISHMENT OF MARKETING ALLOTMENTS.
  The Secretary shall establish marketing allotments for sugar for any fiscal
  year in which such allotments are required under section 203(b) as follows:
  (1)  The Secretary shall establish the overall quantity of sugar to be
  allotted for such fiscal year (hereafter in this subtitle referred to
  as the `overall allotment amount') by deducting from the estimated sugar
  consumption for such fiscal year, as determined under section 203(a)--
  (A) 1,250,000 short tons, raw value (representing minimum imports of sugar
  for consumption in the United States during such fiscal year), and
  (B) carryin stocks of sugar, including sugar in Commodity Credit Corporation
  inventory.
The Secretary shall adjust the overall allotment amount to the maximum extent
practicable to prevent the accumulation of sugar acquired by the Commodity
Credit Corporation.
  (2)  The overall allotment amount for the fiscal year shall be allotted
  among--
  (A)  sugar derived from sugar beets; and
  (B)  sugar derived from sugarcane.
  (3)(A) The Secretary shall establish percentage factors for the overall beet
  sugar and cane sugar allotments applicable for a fiscal year.  The Secretary
  shall establish such percentage factors in a fair and equitable manner
  on the basis of past marketings of sugar (considering for such purposes
  the marketings of sugar processed from sugarcane and sugar beets of any or
  all of the 1985 through 1989 crops), processing and refining capacity, and
  the ability of processors to market the sugar covered under the allotments.
  (B) The Secretary shall publish these percentage factors in the Federal
  Register, along with a description of the Secretary's reasons for
  establishing the factors, as provided in section 202(c).
  (4) The marketing allotment for sugar derived from sugarcane and the
  marketing allotment for sugar derived from sugar beets for a fiscal year,
  in each case, shall be an amount equal to the product of multiplying the
  overall allotment amount for the fiscal year by the percentage established
  by the Secretary under paragraph (3)(A) for such allotment.
  (5) The allotment for sugar derived from sugarcane shall be further allotted
  among the four States in the United States in which sugarcane is produced,
  and Puerto Rico (hereafter in this subtitle the term `State' shall include
  Puerto Rico), in a fair and equitable manner on the basis of past marketings
  of sugar (considering for such purposes the average of marketings of sugar
  processed from sugarcane in the 2 highest years of production from each State
  from the 1985 through 1989 crops), processing and refining capacity, and
  the ability of processors to market the sugar covered under the allotments.
  (6)(A) The Secretary shall, based on reestimates under section 203(a)(2),
  adjust upward or downward marketing allotments established under paragraphs
  (1) through (5) in a fair and equitable manner, or suspend such allotments,
  as the Secretary determines appropriate, to reflect changes in estimated
  sugar consumption, availability, or imports.
  (B) In the case of any increase or decrease in an allotment, each allocation
  to a processor of the allotment under section 205, and each proportionate
  share established with respect to the allotment under section 207(b),
  shall be increased or decreased by the same percentage that the allotment
  is increased or decreased.
  (C) Whenever a marketing allotment for a fiscal year is required to be
  reduced during such fiscal year under this paragraph--
  (i)  if the amount of the sugar marketed, including pledged as collateral
  for a price support loan under section 201 of the Agricultural Act of 1949
  (7 U.S.C. 1446), for such fiscal year at the time of such reduction under
  the allotment by all processors covered by the allotment exceeds the reduced
  allotment, the amount of the excess sugar marketed shall be  deducted--
  (I) if beet sugar is involved, from the marketing allotment, if any,
  next established for beet sugar, or
  (II) if cane sugar is involved, from the marketing allotment next established
  for the State; and
   (ii) if the amount of sugar marketed, including pledged as collateral for
   a price support loan under section 201 of the Agricultural Act of 1949
   (7 U.S.C. 1446), for such fiscal year at the time of the reduction by
   any individual processor covered by the allotment exceeds the processor's
   allocation, the amount of the excess sugar marketed shall be deducted from
   the allocation of an allotment, if any, next established for the processor.
  (7) Except as otherwise provided in section 206, each marketing allotment
  of sugarcane established under this section may only be filled with sugar
  processed from domestically grown sugarcane, and each marketing allotment
  of sugar beets established under this section may only be filled with
  sugar processed from domestically grown sugar beets.
SEC. 205.  ALLOCATION OF MARKETING ALLOTMENTS.
  (a)  IN GENERAL- (1) ALLOCATION TO PROCESSORS- Whenever marketing allotments
  are established for a fiscal year under section 204, in order to afford
  all interested persons an equitable opportunity to market sugar processed
  under an allotment, the Secretary shall allocate each such allotment among
  the processors covered by the allotment.
  (2) HEARING AND NOTICE- (A) CANE SUGAR- The Secretary shall make allocations
  for cane sugar after such hearing and on such notice as the Secretary
  by regulation may prescribe, in such manner and in such quantities as to
  provide a fair, efficient, and equitable distribution of such allocations
  by taking into consideration processing capacity, past marketings of sugar,
  and the ability of each processor to market sugar covered by that portion
  of the allotment allocated.  Each such allocation shall be subject to
  adjustment under section 204(6)(B).
  (B) BEET SUGAR- The Secretary shall make allocations for beet sugar
  after such hearing and on such notice as the Secretary by regulation may
  prescribe, in such manner and in such quantities as to provide a fair,
  efficient, and equitable distribution of such allocations by taking into
  consideration processing capacity, past marketings of sugar (considering
  for such purposes the marketings of sugar processed from sugar beets of any
  or all of the 1985 through 1989 crops), and the ability of each processor
  to market sugar covered by that portion of the allotment allocated.
  Each such allocation shall be subject to adjustment under section 204(6)(B).
  (b)  FILLING CANE SUGAR ALLOTMENTS- Except as otherwise provided in section
  206, the marketing allotment established for cane sugar under this subtitle
  for a fiscal year may be filled only with sugar processed from sugarcane
  grown in the State covered by the allotment.
SEC. 206.  ASSIGNMENTS OF DEFICITS.
  (a) ESTIMATES OF MARKETING- At any time allotments are in effect under
  this subtitle, the Secretary, from time to time, shall determine whether
  (in view of then-current inventories of sugar, the estimated production of
  sugar and expected marketings, and other pertinent factors) processors of
  sugarcane in each State covered by an allotment will be able to market the
  sugar covered by the allotment applicable to them and whether processors
  of sugar beets will be able to market sugar covered by the portion of the
  beet sugar allotment applicable to them.
  (b) REASSIGNMENT OF DEFICITS- (1) CANE SUGAR- If the Secretary determines
  that the sugarcane processors subject to a State allotment will be unable
  to market the State's allotment for the fiscal year--
  (A) the Secretary first shall reassign the estimated quantity of the
  deficit proportionately to the allotments for other cane sugar States,
  depending on the capacity of each other State to fill the portion of the
  deficit to be assigned to it, with such reassigned amount to each State to
  be allocated among processors in that State in proportion to the allocations
  of such processors; and
  (B) if after such reassignments, the deficit cannot be completely eliminated,
  the Secretary shall reassign the remainder to imports.
  (2) BEET SUGAR- If the Secretary determines that a sugar beet processor
  subject to an allotment will be unable to market that allotment--
  (A) the Secretary first shall reassign the estimated quantity of the
  deficit proportionately to the allotments for other sugar beet processors,
  depending on the capacity of each other processor to fill the portion of
  the deficit to be assigned to it; and
  (B) if after such reassignments, the deficit cannot be completely eliminated,
  the Secretary shall reassign the remainder to imports.
  (3) CORRESPONDING INCREASE- The allocation of each processor receiving a
  reassigned amount of an allotment under this subsection for a fiscal year
  shall be increased to reflect such reassignment.
SEC. 207. PROVISIONS APPLICABLE TO PRODUCERS.
  (a) PROCESSOR ASSURANCES- Whenever allotments for a fiscal year are
  allocated to processors under section 205, the Secretary shall obtain from
  the processors such assurances as the Secretary deems adequate that the
  allocation will be shared among producers served by the processor in a
  fair and equitable manner that adequately reflects producers' production
  histories.  Any dispute between a processor and a producer, or group of
  producers, with respect to the sharing of the processor's allocation shall be
  resolved through arbitration by the Secretary on the request of either party.
  (b) PROPORTIONATE SHARES OF CERTAIN ALLOTMENTS- (1) IN GENERAL- (A) STATES
  AFFECTED- In any case in which a State allotment is established under section
  204(5) and there are in excess of 250 producers in the State to which it
  applies, the Secretary shall make a determination under subparagraph (B).
  (B) DETERMINATION- The Secretary shall determine, for each State allotment
  described in subparagraph (A), whether the production of sugar, in the
  absence of proportionate shares, will be greater than the quantity needed
  to enable processors to fill the allotment and provide a normal carryover
  inventory.
  (2) ESTABLISHMENT OF PROPORTIONATE SHARES- If the Secretary determines that
  the amount of sugar processed from all crops by all processors covered by a
  State allotment for a fiscal year will be in excess of the quantity needed
  to enable processors to fill the allotment for such fiscal year and provide
  a normal carryover inventory, the Secretary shall establish proportionate
  shares for the crop of sugarcane that is harvested during the fiscal year
  the allotment is in effect as provided in this subsection.  Each such
  proportionate share shall be subject to adjustment under section 204(6)(B).
  (3) METHOD OF DETERMINING- For purposes of determining proportionate shares
  for any crop of sugarcane--
  (A) The Secretary shall convert the State allotment for the fiscal year
  involved into a State acreage allotment for the crop by dividing the State
  allotment by the per-acre yield goal for the State, as established under
  subparagraph (B).
  (B) The Secretary shall establish the State's per-acre yield goal for a
  crop at a level (not less than the average per-acre yield in the State for
  the preceding 5 years, as determined by the Secretary) that will ensure
  an adequate net return per pound to producers in such State, taking into
  consideration any available production research data that the Secretary
  deems relevant.
  (C) The Secretary shall establish a uniform reduction percentage for
  the crop by dividing the State acreage allotment, as determined for such
  crop under subparagraph (A), by the number of acres in the State that the
  Secretary estimates would otherwise be harvested for the production of
  such crop of sugarcane.
  (D) The uniform reduction percentage for such crop, as determined under
  subparagraph (C), shall be applied to the acreage base for each farm
  covered by the State allotment to determine the farm's proportionate share
  for the crop.
  (4) ACREAGE BASE- For purposes of this subsection, the acreage base for each
  sugarcane-producing farm shall be determined by the Secretary, as follows:
  (A) The acreage base for any crop shall be the weighted average number
  of acres on the farm on which sugarcane was harvested for sugar or seed
  during each of the 5 preceding crops.
  (B) In weighting past production of sugarcane, the 5 crops being considered
  shall be given the following weights:
    Past crop
--Weight factor
 Most recent preceding crop
--1
 Second most recent preceding crop
--2
 Third most recent preceding crop
--3
 Fourth most recent preceding crop
--4
 Fifth most recent preceding crop
--5
  (C) Acreage that producers on a farm were unable to harvest to sugarcane
  for sugar or seed because of drought, flood, other natural disaster, or
  other condition beyond the control of the producers shall be considered
  as harvested to sugarcane for sugar or seed for purposes of this paragraph.
  (5) VIOLATION- (A) IN GENERAL- Whenever proportionate shares are in effect
  in a State for a crop of sugarcane, no producer in the State knowingly
  may harvest for sugar or seed an acreage of sugarcane of such crop in
  excess of the farm's proportionate share for the crop or otherwise violate
  proportionate share regulations issued by the Secretary under section 209(a).
  (B) CIVIL PENALTY- Any producer who violates subparagraph (A) shall be liable
  to the Commodity Credit Corporation for a civil penalty in an amount equal
  to 3 times the United States market value, at the time of the commission
  of the violation, of that quantity of sugar involved in the violation.
  The quantity of sugar involved shall be determined based on the per-acre
  yield goal established under paragraph (3).
  (6) WAIVER- Notwithstanding the preceding subparagraph, the Secretary may
  authorize the county and State committees established under section 8(b)
  of the Soil Conservation and Domestic Allotment Act to waive or modify
  deadlines and other proportionate share requirements in cases in which
  lateness or failure to meet such other requirements does not affect
  adversely the operation of proportionate shares.
SEC. 208.  SPECIAL RULES.
  (a) TRANSFER OF PRODUCTION HISTORY- For the purpose of establishing
  proportionate shares for producers under section 207, the Secretary, on
  application of any producer, may transfer the production history of land
  owned, operated, or controlled by such producers to any other parcels of
  land of such applicant.
  (b) RESERVATION OF PRODUCTION HISTORY- If for reasons beyond the control
  of the owner of a farm, the owner is unable to use all or a portion of
  the proportionate share established for the farm under section 207, the
  Secretary may reserve for a period of not more than 3 consecutive years
  the production history of such farm to the extent of the proportionate
  share involved.  Such proportionate share may be redistributed to other
  farm owners or operators, but no production history shall accrue to such
  other farm owners or operators, by virtue of such redistribution of the
  proportionate share so redistributed.
  (c) REVISIONS OF ALLOCATIONS AND PROPORTIONATE SHARES- The Secretary, after
  such hearing and notice as the Secretary by regulation may prescribe, may
  revise or amend any allocation of a marketing allotment under section 205,
  or any proportionate share established for a farm under section 207, on the
  same basis as the initial allocation or proportionate share was established.
SEC. 209. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S
DETERMINATIONS; JURISDICTION OF THE COURTS; U.S. ATTORNEYS.
  (a) REGULATIONS- (1) IN GENERAL- The Secretary shall issue such regulations
  as may be necessary to carry out the powers vested in the Secretary in
  administering the marketing allotment program under this subtitle.
  (2) PRIOR CONSULTATIONS REQUIRED- In addition to taking such other action as
  may be required under section 551 through 559 of title 5, United States Code,
  prior to proposing any regulations under paragraph (1), the Secretary shall
  consult with representatives of domestic sugar processors and producers
  with regard to ensuring that such regulations achieve the objectives of
  this subtitle.  The results of such consultations shall be published in
  the Federal Register, along with the proposed regulations.
  (b) VIOLATION- Any person knowingly violating any regulation of the
  Secretary issued under subsection (a) shall be subject to a civil penalty
  of not more than $5,000 for each violation.
  (c) PUBLICATION IN FEDERAL REGISTER- Each determination issued by the
  Secretary to establish, adjust or suspend allotments under this subtitle
  shall be promptly published in the Federal Register and shall be accompanied
  by a statement of the reasons for such determination.
  (d) JURISDICTION OF COURTS; UNITED STATES ATTORNEYS- (1) The several district
  courts of the United States are vested with jurisdiction specifically
  to enforce, and to prevent and restrain any person from violating, this
  subtitle or any regulation issued thereunder.
  (2) Whenever the Secretary shall so request, it shall be the duty of
  the several United States attorneys, in their respective districts, to
  institute proceedings to enforce the remedies and to collect the penalties
  and forfeitures provided for in this subtitle.  The Secretary may elect
  not to refer to a United States attorney any violation of this subtitle
  or regulation when the Secretary determines that the administration and
  enforcement of this subtitle would be adequately served by written notice
  or warning to any person committing the violation.
  (e) NONEXCLUSIVITY OF REMEDIES- The remedies and penalties provided for in
  this subtitle shall be in addition to, and not exclusive of, any remedies
  or penalties existing at law or in equity.
SEC. 210.  APPEALS.
  (a) IN GENERAL- An appeal may be taken to the Secretary from any decision
  under section 205 establishing allocations of marketing allotments, or under
  section 207, by any person adversely affected by reason of any such decision.
  (b) PROCEDURE- Any such appeal shall be taken by filing with the Secretary,
  within 20 days after the decision complained of is effective, notice in
  writing of the appeal and a statement of the reasons therefor.  Unless a
  later date is specified by the Secretary as part of the Secretary's decision,
  the decision complained of shall be considered to be effective as of the date
  on which announcement of the decision is made.  The Secretary shall deliver
  a copy of any notice of appeal to each person shown by the records of the
  Secretary to be adversely affected by reason of the decision appealed,
  and shall at all times thereafter permit any such person to inspect and
  make copies of appellant's reasons for the appeal and shall on application
  permit such person to intervene in the appeal.  The Secretary shall provide
  each appellant an opportunity for a hearing.  The Secretary shall appoint
  an administrative law judge to conduct a hearing on the record on each
  appeal under this section.  In all other respects, each appeal under this
  section shall be subject to the provisions of section 551 through 559,
  and 701 through 706, of title 5, United States Code.
SEC. 211.  ADMINISTRATION.
  (a) USE OF CERTAIN AGENCIES- In carrying out the provisions of sections 202
  through 210 of this subtitle, the Secretary may use the services of local
  committees of sugar beet or sugarcane producers, sugarcane processors,
  or sugar beet processors, State and county committees established under
  section 8(b) of the Soil Conservation and Domestic Allotment Act, and the
  departments and agencies of the United States Government.
  (b) USE OF COMMODITY CREDIT CORPORATION- The Secretary shall use the
  services, facilities, funds, and authorities of the Commodity Credit
  Corporation to carry out the provisions of sections 202 through 210 of
  this subtitle.
 ( Subtitle B--Sugar for Re-Export
 ( SEC. 221.  DEFINITIONS.
   ( For purposes of this subtitle, the term--
   ( (1) `Corporation' shall mean the Commodity Credit Corporation.
   ( (2) `eligible country' shall mean--
   ( (A) any country whose per capita gross national product was less than
   $1500 in 1987 if such country received an allocation under Additional
   United States Note 3. (c)(i) of chapter 17 of the Harmonized Tariff
   Schedule of the United States as of April 1, 1990; and
   ( (B) any beneficiary country, as defined in section 212 of the Caribbean
   Basin Economic Recovery Act (19 U.S.C. 2702).
   ( (3) `market' means to sell or otherwise dispose of in commerce.
   ( (4) `processor' shall mean any person engaged in the processing of--
   ( (A) sugarcane to produce raw cane sugar;
   ( (B) sugar beets; or
   ( (C) corn to produce a corn sweetener.
   ( (5) `program' shall mean the special sugar re-export program required
   to be established and implemented pursuant to section 222.
   ( (6) `Secretary' shall mean the Secretary of Agriculture.
   ( (7) `United States' shall consist of each of the States, the District
   of Columbia, and Puerto Rico.
 ( SEC. 222.  ESTABLISHMENT OF PROGRAM.
   ( (a) IN GENERAL- (1) The Secretary, in accordance with the provisions of
   this subtitle, shall establish and implement a special sugar re-export
   program for sugar imported from eligible countries.  Such program shall
   be operated--
   ( (A) during each of the fiscal years 1992 through 1996, as required
   under paragraph (2); and
   ( (B) using the funds and facilities of the Corporation.
   ( (2)(A) Subject to the limitation under subsection (b), the program shall
   be implemented for a fiscal year whenever the Secretary determines that
   imports of sugar into the United States for domestic human consumption
   during such fiscal year will be less than 1,700,000 short tons, raw value.
   The Secretary shall make such determination for a fiscal year, and publish
   such determination in the Federal Register, not later than 30 days prior
   to the beginning of such fiscal year.
   ( (B) In implementing the program for a fiscal year, the Secretary shall
   ensure, to the extent practicable, if funds are available for such purpose
   under section 225 and there are acceptable bids, that there is imported and
   re-exported during such fiscal year under the program a quantity of sugar
   that, when combined with the quantity of sugar otherwise imported into
   the United States for domestic human consumption during such fiscal year,
   will cause the total quantity of sugar imported into the United States
   during such fiscal year to be 1,750,000 short tons. In no event may the
   quantity imported and re-exported under the program for the fiscal year be
   less than 100,000 short tons, raw value, or more than 500,000 short tons,
   raw value, subject to such availability of funds and acceptable bids.
   ( (b) LIMITATION- The program implemented for a fiscal year shall be
   suspended whenever the Secretary determines that the 10-day moving average
   future price for raw cane sugar under the Number 11 contract, New York basis
   (or successor contract), of the closest trading month equals or exceeds
   the current national average loan rate for raw cane sugar, as established
   under section 201(h) of the Agricultural Act of 1949.  The program shall
   remain in suspension until such time as the 10-day moving average Number 11
   or successor contract price, as determined under the preceding sentence,
   falls below such national average loan rate.  Any such suspension shall
   not affect any bid already accepted by the Secretary under the program.
   If the Number 11 or successor contract price is not available, the
   Secretary may use an equivalent price, as determined by the Secretary.
 ( SEC. 223.  IMPORTS OF SUGAR.
   ( (a) PAYMENTS- (1) The Corporation shall make payments available under
   the program each fiscal year, as provided in section 222, in connection
   with the importation of sugar from eligible countries.  Such payments
   for a fiscal year shall be--
   ( (A) made out of the fund established under section 225(d); and
   ( (B) in a total amount not to exceed the amount of funds available in
   such fund at the beginning of the fiscal year, less administrative expenses.
   ( (2) The payment to any sugar processor, operator, or refiner for an
   importation under the program shall be--
   ( (A) in an amount determined on a competitive bid basis; and
   ( (B) in an amount determined by the Secretary to be sufficient to
   permit the payment of the premium specified in subsection (b) and the
   re-exportation of an equivalent quantity of sugar under this subtitle.
   ( (3) For purposes of ranking bids received from sugar processors,
   operators, and refiners, the Secretary shall make appropriate adjustments
   in such bids to reflect differing transportation costs based on refinery
   and factory location.
   ( (b) PREMIUM- The Secretary shall ensure that the price paid for the
   sugar imported into the United States to the person exporting the sugar
   to the United States under the program reflects a premium above the world
   market price, as determined by the Secretary, equal to the lesser of--
   ( (1) 7 cents per pound, or
   ( (2) the current national average loan rate for raw cane sugar,
   as established under section 201(h) of the Agricultural Act of 1949,
   less the world market price (but in no event less than zero), where such
   difference is computed as of the time of the bid.
   ( (c) EXEMPTION- Imports of sugar from an eligible country under the program
   shall be exempt from any provision of law restricting the importation of
   sugar and shall not be included in determining the amount of any sugar
   imported for purposes of any such law.
   ( (d) PRORATION- The Secretary shall prorate imports under the program
   among eligible countries based on those countries' share of total imports
   of sugar to the United States during a previous representative period,
   taking into consideration any special factors that may have affected or
   be affecting such trade.
 ( SEC. 224. EXPORTS OF SUGAR.
   ( The Secretary shall ensure that, no later than 60 days after a quantity
   of sugar is imported under the program, an equivalent quantity has been
   exported under the program.
 ( SEC. 225. MARKETING CERTIFICATES.
   ( (a) IN GENERAL- Effective for each of the fiscal years 1991 through
   1995, no processor may market in the United States any sugar or fructose
   sweetener processed by such processor unless such processor has a marketing
   certificate for such sugar or fructose sweetener under this section.
   ( (b) PURCHASE OF CERTIFICATES- A processor shall acquire each marketing
   certificate by purchase from the Corporation.  The price of each such
   certificate shall be an amount computed by multiplying the pounds of sugar
   or equivalent amount of fructose sweetener covered by the certificate by
   a uniform per pound rate that the Secretary determines will ensure that
   the total amount collected from certificates purchased during the fiscal
   year will equal--
   ( (1) one-third cent times the number of pounds of sugar or equivalent
   amount of fructose sweetener the Secretary estimates will be marketed
   from domestic sources during such fiscal year, minus
   ( (2) any amount in the fund established under subsection (d) as of the
   beginning of the fiscal year.
In no event may the price of any certificate exceed one-third cent per pound
for each pound of sugar or equivalent amount of fructose sweetener covered
by the certificate.
   ( (c) NON-TRANSFERABILITY OF CERTIFICATES- Marketing certificates under
   this section may not be transferred.
   ( (d) PROCEEDS FROM SALE- The Corporation shall establish a separate
   interest-bearing fund into which it shall deposit the proceeds from all
   sales of marketing certificates under this section.  Such fund may be
   used only to make payments under section 223 or to pay the administrative
   costs of operating the program.
   ( (e) REMAINING FUNDS- Any money remaining in the fund established under
   subsection (d) after all re-export agreements under the program have been
   honored shall be available for use in any successor program or, if no
   successor program is in effect when such agreements have been honored,
   shall be covered into the general account of the Corporation.
 ( SEC. 226.  REGULATIONS.
   ( (a)  REQUIREMENT- The Secretary shall promulgate, after notice and an
   opportunity for public comment, regulations to implement this subtitle.
   Such regulations shall require, among other things, that--
   ( (1) a certification be provided from an appropriate agency of the
   government of the eligible country exporting sugar to the United States
   that the exporter of the sugar was paid the premium under section 223
   for the sugar; and
   ( (2) a performance bond be provided to the Corporation with respect to the
   importation of sugar under this subtitle, in an amount equal to the value
   of a quantity of refined sugar equivalent to the corresponding quantity
   of sugar imported under this subtitle, conditioned on the export of sugar
   from the United States in accordance with the provisions of this subtitle.
   ( (b)  DEADLINE FOR ISSUANCE- The Secretary shall issue proposed
   regulations to implement this subtitle no later than 180 days after the
   date of enactment of this Act.
 ( SEC. 227.  RECORDS AND REPORTS.
   ( This section shall apply to all persons required to obtain marketing
   certificates pursuant to section 225 and to all persons importing sugar
   or exporting sugar under the program.  Any such person shall keep such
   records and, from time to time on request of the Secretary, report to
   the Secretary such information, as the Secretary finds to be necessary
   to enable the Secretary to carry out the provisions of this subtitle.
   Such information shall be reported and such records shall be kept in such
   manner as the Secretary shall prescribe.  The Secretary is authorized
   to examine such books, records, accounts, or any other documents as the
   Secretary has reason to believe are relevant and are within the control
   of any such person for purposes of implementing this subtitle.
 ( SEC. 228.  ENFORCEMENT.
   ( (a)  CIVIL PENALTIES- The Program Fraud Civil Remedies Act of 1986
   (31 U.S.C. 3801 et seq.) shall be applicable to the program carried out
   pursuant to subtitle B.
   ( (b)  CRIMINAL PENALTIES- Any person who knowingly violates or attempts
   to violate or who knowingly participates or aids in the violation of
   any provision of this subtitle or of any regulation issued under the
   authority of this subtitle or who knowingly fails to make any report or
   keep any records as required by this subtitle shall be deemed guilty of
   a misdemeanor and upon conviction thereof shall be subject to a fine of
   not more than $5,000 for each violation.
 ( Subtitle C )  Subtitle B--Miscellaneous
SEC.  ( 231. )  221. SUGARCANE DISASTER ASSISTANCE.
  (a)  1990 CROP- Effective only for the 1990 crop of sugarcane, section
  201(k)(2) of the Agricultural Act of 1949 (7 U.S.C. 1446(k)(2)) is
  amended by--
  (1) inserting `(A)' after `(2)'; and
  (2) inserting the following subparagraph:
  `(B) If, because of frost, freeze, or related condition in 1989 constituting
  a major disaster or emergency declared by the President in the State of
  Louisiana under the Disaster Relief Act of 1974 (42 U.S.C. 5121 et seq.),
  the total quantity of the 1990 crop of sugarcane that the producers are
  able to harvest on any farm is less than--
  `(1) 60 percent of the county average yield, as determined by the Secretary
  of Agriculture, for such crop, multiplied by
  `(2) the acreage planted for harvest to such crop, the Secretary shall make
  a reduced yield disaster payment to the producers at a rate equal to 50
  percent of the loan level for the crop for the deficiency in production
  greater than percent for the crop.  The Secretary shall ensure that no
  producer receives duplicative payments under this subsection.'.
  (b) 1989 CROP CLARIFICATION- (1) DETERMINATION- Section 103 of the Disaster
  Assistance Act of 1989 (7 U.S.C. 1421 note) is amended by adding at the
  end the following new subsection:
  `(f) SPECIAL RULE FOR SUGARCANE- For purposes of determining the total
  quantity of the 1989 crop of sugarcane that the producers on a farm are
  able to harvest, the Secretary shall make the determination based on the
  quantity of recoverable sugar.'.
  (2) DEADLINE- Section 152(a)(2) of the Disaster Assistance Act of 1989
  (7 U.S.C. 1421 note) is amended by adding at the end the following:  `In
  the case of producers described in section 103(f), the Secretary shall
  permit such producers to apply for assistance no later than January 15,
  1991 and shall, in the case of applications received prior to the date of
  enactment of the Food and Agricultural Resources Act of 1990, re-compute
  in accordance with section 103(f) the amount of any assistance due no
  later than 90 days after such date of enactment.'.
SEC.  ( 232. )  222. REPORTS ON QUOTA ALLOCATIONS TO COUNTRIES IMPORTING
SUGAR.
  Section 902(c) of the Food Security Act of 1985 (7 U.S.C. 1446 note)
  is amended by inserting `(1)' after `(c)' and inserting the following
  new paragraph:
  `(2)(A) Effective 90 days after the date of enactment of the Food and
  Agricultural Resources Act of 1990 and by August 1 of each year thereafter
  through 1995, the Secretary of Agriculture shall report to the President
  and the Congress the extent, if any, of sugar imports from the country
  named in paragraph (1) by the countries described in paragraph (1).
  `(B) Commencing with the quota year for sugar imports after the 1990-1991
  quota year, the President shall report to the Congress by January 1 the
  identity of the countries that are net importers of sugar derived from
  sugarcane or sugar beets who have a quota for the current quota year, the
  identity of such countries who have verified that they do not import for
  reexport to the United States any sugar produced in the country named in
  paragraph (1), and the action, if any, taken by the President with respect
  to countries reported by the Secretary of Agriculture as net importers of
  sugar derived from sugarcane or sugar beets who imported such sugar from
  the country named in paragraph (1) who reexported such sugar to the United
  States during the previous quota year under a sugar quota allocation.'.
Subtitle C--Import Treatment of Sugars, Syrups, and Molasses
SEC. 231. FINDINGS AND PURPOSE.
  (a) FINDINGS- The Congress finds that--
  (1) the current administration of import quotas on imports of sugar has been
  found to be inconsistent with obligations of the United States under the
  General Agreement on Tariffs and Trade (GATT) by a GATT panel established
  pursuant to a dispute settlement proceeding instituted against the United
  States by the Government of Australia;
  (2) the United States has accepted the findings of the GATT panel report,
  and the GATT panel report has been adopted by the GATT Council;
  (3) the United States now has an international obligation to bring its
  regime of import restrictions on sugar into conformity with the GATT rules;
  (4) the conversion of the current regime of import quotas to a regime of
  tariff-rate quotas would comply with our international obligations; and
  (5) a GATT-consistent regime of regulating sugar imports should be
  implemented not later than October 1, 1990.
  (b) PURPOSE- The purpose of this subtitle is to provide for the
  implementation on October 1, 1990, of tariff-rate quotas on imports of
  sugar, molasses, and syrups that are consistent with the international
  obligations of the United States.
SEC. 232. TARIFF TREATMENT WHEN TARIFF-RATE QUOTAS NOT IN EFFECT.
  The rates of duty under column 1-general and column 2 of the HTS on sugars,
  syrups, and molasses that are entered during any period after September 30,
  1990, when a tariff-rate quota provided for under section 233 is not in
  effect are the respective rates of duty that were applicable to sugars,
  syrups, and molasses entered on January 1, 1990.
SEC. 233. TARIFF-RATE QUOTAS.
  (a) IN GENERAL-
  (1) Subject to paragraph (3), the President--
  (A) may establish for any quota year beginning after September 30, 1990,
  a tariff rate quota on sugars, syrups, and molasses; and
  (B) shall by proclamation implement each tariff-rate quota established
  under subparagraph (A).
  (2) The President, or a designee of the President, may make such intra-annual
  adjustments to any tariff-rate quota established under paragraph (1)
  as may be necessary or appropriate.
  (3) LIMITATIONS-
  (A) If the United States Trade Representative determines at any time that
  the application of a tariff-rate quota under this subtitle to any sugar,
  syrup, or molasses is inconsistent with the obligations of the United States
  under any trade agreement, such tariff-rate quota may not be applied to
  such sugar, syrup, or molasses.
  (B) No tariff-rate quota may be implemented under paragraph (1) on or after
  the effective date specified in section 237(a) until the United States
  Trade Representative determines whether or not a limitation described in
  subparagraph (A) applies.
  (b) REQUIREMENTS APPLICABLE TO TARIFF-RATE QUOTAS- A tariff-rate quota
  established under subsection (a) for any quota year, and any intra-annual
  adjustment thereto, is subject to the following requirements:
  (1) The interests in the United States sugar market of domestic producers,
  domestic consumers, and materially affected contracting parties to the
  General Agreement on Tariffs and Trade must be given due consideration.
  (2) The United States Trade Representative shall allocate among supplier
  countries their respective shares of the tariff-rate quota established
  for the quota year. In making such allocations, the United States Trade
  Representative shall take into account--
  (A) the percentage distributions allocated to supplier countries under
  Additional U.S. Note 3 to chapter 17 of the HTS for the quota period ending
  on September 30, 1990;
  (B) in the case of supplier countries not included under subparagraph (A),
  the access of such countries to the United States sugar market during a
  representative period;
  (C) the obligations of the United States under trade agreements; and
  (D) any prohibition or limitation imposed under law as a political or
  economic sanction on the importation into, or export to, the United States
  of sugars, syrups, or molasses.
The United States Trade Representative may, from time to time, make such
adjustments to allocations made under this paragraph as may be necessary.
  (3) The rates of duty on sugars, syrups, and molasses that--
  (A) are the product of any supplier country; and
  (B) are certified upon entry as being included within the allocation made
  to such country for the quota year pursuant to paragraph (2);
are the respective rates that were applicable to sugars, syrups, and molasses
entered on January 1, 1990.
  (4) No rate of duty that exceeds 40 cents per kilogram may be imposed on
  sugars, syrups, or molasses that--
  (A) are the product of any supplier country; but
  (B) are not certified upon entry as being within the allocation made to
  such country for such year pursuant to paragraph (2).
  (5)(A) The rates of duty referred to in paragraph (3) may be applied to
  all sugars, syrups, and molasses that are--
  (i) entered for use only in the production (other than by distillation)
  of polyhedric alcohols, except polyhedric alcohols for use as a substitute
  for sugar in human food consumption; or
  (ii) reexported in refined form or in sugar-containing products.
  (B) The Secretary of Agriculture, after consultation with the United
  States Trade Representative, shall impose such licensing requirements,
  terms, conditions, bonds, or other limitations as may be necessary or
  appropriate to ensure that--
  (i) sugars, syrups, and molasses to which subparagraph (A) is applied are
  utilized in accordance with the purposes stated in that subparagraph; and
  (ii) reexportations are not used for the purpose of obtaining refunds
  and drawbacks of duties at rates applicable in circumstances described in
  paragraph (4)(B).
The Secretary of Agriculture shall consult with the Secretary of the Treasury
regarding the implementation of clause (ii).
  (c) REGULATIONS- The United States Trade Representative and the Secretary
  of Agriculture are each authorized to prescribe such regulations as may be
  necessary or appropriate to carry out, with respect to the implementation
  of tariff-rate quotas established under this subtitle, the respective
  functions that each had in implementing the quota program established under
  Additional U.S. Note 3 to chapter 17 of the HTS for the quota period ending
  September 30, 1990.
  (d) TIMING REQUIREMENTS; NOTICE- If a tariff-rate quota for any quota year,
  or any intra-annual adjustment to a tariff-rate quota, is established
  under subsection (a)--
  (1) the tariff--rate quota shall be established, and notice thereof
  published in the Federal Register, not later than the 15th-day before the
  date on which the tariff-rate quota is to take effect; and
  (2) such adjustment shall be established, and notice thereof published in
  the Federal Register, not later than the 2nd day before the date on which
  the adjustment is to take effect.
SEC. 234. APPLICABLE STATUTORY AUTHORITIES.
  After September 30, 1990, no quantitative limitation or duty on the
  entry, or withdrawal from warehouse for consumption, of sugars, syrups,
  and molasses may be imposed or modified except under the authority of--
  (1) this subtitle;
  (2) title II or III of the Trade Act of 1974;
  (3) title VII of the Tariff Act of 1930;
  (4) section 22 of the Agricultural Adjustment Act of 1933, as amended; or
  (5) any statute, enacted after the date of the enactment of this Act,
  that specifically authorizes such an imposition or modification.
SEC. 235. DEFINITIONS.
  As used in this subtitle:
  (1) The term `entered' means entered, or withdrawn from warehouse for
  consumption, in the customs territory of the United States.
  (2) The term `HTS' means the Harmonized Tariff Schedule of the United States.
  (3) The term `sugars, syrups, and molasses' means articles described in
  subheadings 1701.11, 1701.12, 1701.91.20, 1701.99, 1702.90.30, 1806.10.40,
  and 2106.90.10 of the HTS.
  (4) The term `quota year' means an annual period beginning on October 1
  of any year and ending at the close of September 30 of the succeeding year.
SEC. 236. CONFORMING AMENDMENTS TO HTS.
  Chapter 17 of the HTS is amended--
  (1) by striking out Additional U.S. Notes 2, 3, and 4; and
  (2) by redesignating Additional U.S. Note 5 as Additional U.S. Note 2.
SEC. 237. EFFECTIVE DATE; TERMINATION.
  (a) EFFECTIVE DATE- This subtitle, and the amendments made by it, apply
  to sugars, syrups, and molasses that are entered after September 30, 1990.
  (b) TERMINATION- The authority to establish tariff-rate quotas under the
  authority of this subtitle expires on September 30, 1996.
TITLE III--RICE
SEC. 301. LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE
LIMITATION PROGRAM, AND LAND DIVERSION FOR THE 1991             THROUGH 1995
CROPS OF RICE.
  Effective only for the 1991 through 1995 crops of rice, the Agricultural
  Act of 1949 is amended by inserting after section 101A (7 U.S.C. 1441-1)
  the following new section:
  `SEC. 101B. (a) LOANS AND PURCHASES- (1) IN GENERAL- Except as provided in
  paragraph (2), the Secretary shall make available to producers nonrecourse
  loans and purchases for each of the 1991 through 1995 crops of rice at a
  level that is not less than the higher of--
  `(A) 85 percent of the simple average price received by producers, as
  determined by the Secretary, during the marketing years for the immediately
  preceding 5 crops of rice, excluding the year in which the average price
  was the highest and the year in which the average price was the lowest in
  such period; or
  `(B) $6.50 per hundredweight.
  `(2) LIMITATION ON DECREASE IN LOAN LEVEL- The loan level for any crop
  of rice determined under paragraph (1) may not be reduced by more than 5
  percent from the level determined for the preceding crop.
  `(3) ANNOUNCEMENT OF LOAN LEVEL AND ESTABLISHED PRICE- The loan and purchase
  level and the established price for each of the 1991 through 1995 crops
  of rice shall be announced not later than January 31 of each calendar year
  for the crop harvested in such calendar year.
  `(4) LENGTH OF TERMS OF NONRECOURSE LOANS- A loan made under this section
  shall have a term of not more than 9 months beginning after the month in
  which the application for the loan is made.
  `(5) MARKETING LOAN- (A) IN GENERAL- The Secretary shall permit a producer
  to repay a loan made under paragraph (1) for a crop at a level that is
  the lesser of--
  `(i) the loan level determined for such crop; or
  `(ii) the higher of--
  `(I) the loan level determined for such crop multiplied by 70 percent; or
  `(II) the prevailing world market price for rice, as determined by the
  Secretary.
  `(B) DETERMINATION OF PREVAILING WORLD MARKET PRICE- The Secretary shall
  prescribe by regulation--
  `(i) a formula to define the prevailing world market price for rice; and
  `(ii) a mechanism by which the Secretary shall announce periodically the
  prevailing world market price for rice.
  `(C) PRODUCER PURCHASE OF NEGOTIABLE MARKETING CERTIFICATES- (i)
  As a condition of permitting a producer to repay a loan as provided
  in subparagraph (A), the Secretary may require a producer to purchase
  marketing certificates equal in value to an amount that does not exceed
  one-half the difference, as determined by the Secretary, between the
  amount of the loan obtained by the producer and the amount of the loan
  repayment. Such certificates shall be negotiable.
  `(ii) Such certificates shall be redeemable for agricultural commodities
  or products thereof owned by the Commodity Credit Corporation valued at
  the prevailing market price, as determined by the Secretary.
  `(iii) The Commodity Credit Corporation, under regulations prescribed by
  the Secretary, shall assist any person receiving marketing certificates
  under this subparagraph in the redemption or marketing of such certificates.
  Insofar as practicable, the Secretary shall permit an owner of a certificate
  to designate the storage facility at which such owner would prefer to
  receive agricultural commodities or products thereof in exchange for
  such certificate.
  `(iv) If any such certificate is not presented for redemption or marketing
  within a reasonable number of days after issuance, as determined by
  the Secretary, reasonable costs of storage and other carrying charges,
  as determined by the Secretary, shall be deducted from the value of the
  certificate for the period beginning after such reasonable number of days
  and ending with the date of the presentation of such certificate to the
  Commodity Credit Corporation.
  `(6) SIMPLE AVERAGE PRICE DETERMINATION- For purposes of this section, the
  simple average price received by producers for the immediately preceding
  marketing year shall be based on the latest information available to the
  Secretary at the time of the determination.
  `(b) PAYMENTS FOR FORGOING LOAN OR PURCHASE- (1) IN GENERAL- The Secretary
  shall, for each of the 1991 through 1995 crops of rice, make payments
  available to producers who, although eligible to obtain a loan or purchase
  agreement under subsection (a), agree to forgo obtaining such loan or
  agreement in return for such payments.
  `(2) COMPUTATION- A payment under this subsection shall be computed by
  multiplying--
  `(A) the loan payment rate; by
  `(B) the quantity of rice the producer is eligible to place under loan.
  `(3) QUANTITY ELIGIBLE- For purposes of this subsection, the quantity of
  rice eligible to be placed under loan may not exceed the product obtained
  by multiplying--
  `(A) the individual farm program acreage for the crop; by
  `(B) the actual yield per harvested acre for the farm.
  `(4) LOAN PAYMENT RATE- For purposes of this subsection, the loan payment
  rate shall be the amount by which--
  `(A) the loan level determined for such crop under subsection (a); exceeds
  `(B) the level at which a loan may be repaid under subsection (a).
  `(5) PAYMENT IN NEGOTIABLE MARKETING CERTIFICATES- The Secretary may make
  up to one-half the amount of a payment under this subsection available in
  the form of negotiable marketing certificates, subject to the terms and
  conditions provided in subsection (a)(5)(C).
  `(c) DEFICIENCY PAYMENTS- (1) IN GENERAL- (A) COMPUTATION- The Secretary
  shall make available to producers payments (to be known as `deficiency
  payments') for each of the 1991 through 1995 crops of rice in an amount
  computed by multiplying--
  `(i) the payment rate; by
  `(ii) the individual farm program acreage; by
  `(iii) the farm program payment yield established for the crop for the farm.
  `(B) 0/92 AND 50/92 PROGRAMS- (i) If an acreage limitation program under
  subsection (e)(2) is in effect for a crop of rice and the producers on a farm
  devote a portion of the permitted rice acreage of the farm (as determined
  in accordance with subsection (e)(2)(A)) equal to more than 8 percent of
  the permitted rice acreage of the farm for the crop to conservation uses
  (except as provided in subparagraph (F))--
  `(I) such portion of the permitted rice acreage in excess of 8 percent of
  such acreage devoted to conservation uses (except as provided in subparagraph
  (F)) shall be considered to be planted to rice for the purpose of determining
  the individual farm program acreage in accordance with subsection (e)(2)(E)
  and for the purpose of determining the acreage on the farm required to be
  devoted to conservation uses in accordance with subsection (e)(2)(D); and
  `(II) the producers shall be eligible for payments under this paragraph
  on such acreage, subject to the compliance of the producers with clause (ii).
  `(ii)(I) To be eligible for payments under clause (i), except as provided
  in subclause (II) and clause (iv), the producers on a farm must actually
  plant rice for harvest on at least 50 percent of the permitted rice acreage
  of the farm.
  `(II) The Secretary may waive the 50 percent planting requirement in
  subclause (I) for any crop of rice.
  `(iii) Notwithstanding any other provision of this section, any producer
  who elects to devote a portion (or, where the Secretary exercises the waiver
  authority under clause (ii)(II), all) of the permitted rice acreage of 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 such crop at a rate established by the Secretary,
  except that such rate may not be established at less than the projected
  deficiency payment rate for the crop, as determined by the Secretary.
  Such projected payment rate for the crop shall be announced by the Secretary
  prior to the period during which rice producers may agree to participate
  in the program for such crop.
  `(iv) If a State or local agency has imposed in an area of a State or
  county a quarantine on the planting of rice for harvest on farms in such
  area, the State committee established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) may recommend
  to the Secretary that payments be made under this paragraph to producers
  in such area who were required to forgo the planting of rice for harvest on
  acreage to alleviate or eliminate the condition requiring such quarantine.
  If the Secretary determines that such condition exists, the Secretary may
  make payments under this paragraph to such producers.  To be eligible for
  payments under this clause, such producers must devote such acreage to
  conservation uses (except as provided in subparagraph (F)).
  `(v) If an acreage limitation program under subsection (e) is in effect
  for any crop of rice and if the Secretary determines that producers on
  a farm are prevented from planting the acreage intended for rice to rice
  because of drought, flood, or other natural disaster, or other condition
  beyond the control of the producers, the Secretary shall make available
  to such producers payments computed as provided in paragraph (1)(A).
  Producers shall be eligible for such payments if a portion (or all) of
  the permitted rice acreage of the farm is devoted to conservation uses
  (except as provided in paragraph (F)).  Such acreage equal to more than
  8 percent of the permitted rice acreage of the farm for the crop shall
  be considered to be planted to rice for the purpose of determining the
  individual farm program acreage in accordance with subsection (e)(2)(E)
  and for the purpose of determining the acreage on the farm required to
  be devoted to conservation uses in accordance with subsection (e)(2)(D).
  The provisions of clauses (iii) and (vi) shall apply to any such producers.
  `(vi) The rice crop acreage base and rice farm program payment yield of
  the farm shall not be reduced due to the fact that such portion (or all)
  of the permitted acreage of the farm was devoted to conserving uses
  (except as provided in subparagraph (F)).
  `(vii) Other than as provided in clauses (i) through (v), payments may
  not be made under this paragraph for any crop on a greater acreage than
  the acreage actually planted to rice.
  `(viii) Any acreage considered to be planted to rice in accordance with
  clauses (i) and (v) may not also be designated as conservation use acreage
  for the purpose of fulfilling any provisions under any acreage limitation
  or land diversion program requiring that the producers devote a specified
  acreage to conservation uses.
  `(C) PAYMENT RATE- The payment rate for rice shall be the amount by which
  the established price for the crop of rice exceeds the higher of--
  `(i) the national average market price received by producers during the
  first 5 months of the marketing year for such crop, as determined by the
  Secretary; or
  `(ii) the loan level determined for such crop.
  `(D) MINIMUM ESTABLISHED PRICE- The established price for rice shall not
  be less than $10.71 per hundredweight.
  `(E) REDUCTION FOR DISASTER PAYMENTS- The total quantity of rice on which
  payments would otherwise be payable to a producer on a farm for any crop
  under this paragraph shall be reduced by the quantity on which any disaster
  payment is made to the producer for the crop under paragraph (2).
  `(F) ALTERNATIVE CROPS- The Secretary may permit, subject to such terms
  and conditions as the Secretary may prescribe, all or any part of acreage
  otherwise required to be devoted to conservation uses as a condition of
  qualifying for payments under subparagraph (B) to be devoted to sweet
  sorghum or the production of guar, sesame, safflower, sunflower, rapeseed,
  castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale,
  rye, commodities for which no substantial domestic production or market
  exists but that could yield industrial raw material being imported, or
  likely to be imported, into the United States, or commodities grown for
  experimental purposes (including kenaf), subject to the following sentence.
  The Secretary may permit such acreage to be devoted to such production
  only if the Secretary determines that--
  `(i) the production is not likely to increase the cost of the price support
  program and will not affect farm income adversely; and
  `(ii) the production is needed to provide an adequate supply of the
  commodity, or, in the case of commodities for which no substantial domestic
  production or market exists but that could yield industrial raw materials,
  the production is needed to encourage domestic manufacture of such raw
  material and could lead to increased industrial use of such raw material
  to the long-term benefit of United States industry.
  `(2) DISASTER ASSISTANCE- (A) PREVENTED PLANTING PAYMENTS- (i) Except as
  provided in subparagraph (C), if the Secretary determines that the producers
  on a farm are prevented from planting any portion (or all) of the acreage
  intended for rice to rice or other nonconserving crops because of drought,
  flood, or other natural disaster, or other condition beyond the control of
  the producers, the Secretary shall make a prevented planting disaster payment
  to the producers in an amount equal to the product obtained by multiplying--
  `(I) the number of acres so affected but not to exceed the acreage planted
  to rice for harvest (including any acreage that the producers were prevented
  from planting to rice or other nonconserving crops in lieu of rice because
  of drought, flood, or other natural disaster, or other condition beyond
  the control of the producers) in the immediately preceding year; by
  `(II) 75 percent of the farm program payment yield established for the
  farm by the Secretary; by
  `(III) a payment rate equal to 33 1/3  percent of the established price
  for the crop.
  `(ii) Payments made by the Secretary under this subparagraph may be made
  in the form of cash or  in such other form as the Secretary is authorized
  by law to make.
  `(B) REDUCED YIELD PAYMENTS- Except as provided in subparagraph (C), if
  the Secretary determines that because of drought, flood, or other natural
  disaster, or other condition beyond the control of the producers, the total
  quantity of rice that the producers are able to harvest on any farm is less
  than the result of multiplying 75 percent of the farm program payment yield
  established for the farm for such crop by the acreage planted for harvest
  for such crop, the Secretary shall make a reduced yield disaster payment to
  the producers at a rate equal to 33 1/3  percent of the established price
  for the crop for the deficiency in production below 75 percent for the crop.
  `(C) LIMITATION DUE TO CROP INSURANCE- Producers on a farm shall not be
  eligible for--
  `(i) prevented planting disaster payments under subparagraph (A), if
  prevented planting crop insurance is available to the producers under the
  Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with respect to the
  rice acreage of the producers; or
  `(ii) reduced yield disaster payments under subparagraph (B), if reduced
  yield crop insurance is available to the producers under such Act with
  respect to the rice acreage of the producers.
  `(D) EXCEPTION FROM LIMITATION- (i) Notwithstanding subparagraph (C),
  the Secretary may make a disaster payment to producers on a farm under
  this paragraph if the Secretary determines that--
  `(I) as the result of drought, flood, or other natural disaster, or other
  condition beyond the control of the producers, the producers have suffered
  substantial losses of production either from being prevented from planting
  rice or other nonconserving crops or from reduced yields;
  `(II) such losses have created an economic emergency for the producers;
  `(III) crop insurance indemnity payments under the Federal Crop Insurance
  Act (7 U.S.C. 1501 et seq.) and other forms of assistance made available
  by the Federal Government to such producers for such losses is insufficient
  to alleviate such economic emergency; and
  `(IV) additional assistance must be made available to such producers to
  alleviate such economic emergency.
  `(ii) The Secretary may make such adjustments in the amount of payments
  made available under this paragraph with respect to an individual farm so
  as to assure the equitable allotment of such payments among producers,
  taking into account other forms of Federal disaster assistance provided
  to the producers for the crop involved.
  `(d) FARM PROGRAM PAYMENT YIELDS- The farm program payment yields for
  farms for each crop of rice shall be determined under title V.
  `(e) PROGRAMS TO REDUCE ACREAGE- (1) IN GENERAL- (A) EXCESSIVE SUPPLY-
  Notwithstanding any other provision of this Act, if the Secretary determines
  that the total supply of rice, in the absence of an acreage limitation
  program, will be excessive taking into account the need for an adequate
  carry-over to maintain reasonable and stable supplies and prices and to
  meet a national emergency, the Secretary may provide for any crop of rice
  an acreage limitation program as described in paragraph (2).
  `(B) CONSIDERATION OF CONSERVATION RESERVE- In making a determination
  under subparagraph (A), the Secretary shall take into consideration the
  number of acres placed in the conservation acreage reserve established
  under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831).
  `(C) ANNOUNCEMENT OF PROGRAM- If the Secretary elects to put an acreage
  limitation program into effect for any crop year, the Secretary shall
  announce any such program not later than January 31 of the calendar year
  in which the crop is harvested.
  `(D) RATIO OF CARRY-OVER TO TOTAL DISAPPEARANCE- The Secretary shall
  carry out an acreage limitation program described in paragraph (2) for
  a crop of rice in a manner that will result in carry-over stocks equal
  to between sixteen and one-half and twenty percent of the simple average
  of the total disappearance of rice for each of the three marketing years
  preceding the year for which the announcement is made.  For the purpose
  of this subparagraph, `total disappearance' means all rice utilization,
  including total domestic, total export, and total residual disappearance.
  `(2) ACREAGE LIMITATION PROGRAM- (A) UNIFORM PERCENTAGE REDUCTION- If a
  rice acreage limitation program is announced under paragraph (1), such
  limitation shall be achieved by applying a uniform percentage reduction
  (not to exceed 35 percent) to the rice crop acreage base for the crop for
  each rice-producing farm.
  `(B) ENFORCEMENT- Except as provided in subsection (g), producers who
  knowingly produce rice in excess of the permitted rice acreage for the farm,
  as established in accordance with subparagraph (A), shall be ineligible
  for rice loans, purchases, and payments with respect to that farm.
  `(C) CROP ACREAGE BASES- Rice crop acreage bases for each crop of rice
  shall be determined under title V.
  `(D) CONSERVATION USE ACREAGE- (i) A number of acres on the farm shall
  be devoted to conservation uses, in accordance with regulations issued by
  the Secretary.  Such number shall be determined by dividing--
  `(I) the product obtained by multiplying the number of acres required to
  be withdrawn from the production of rice times the number of acres planted
  to such commodity; by
  `(II) the number of acres authorized to be planted to such commodity under
  the limitation established by the Secretary.
  `(ii) The number of acres determined under clause (i) is hereafter in this
  subsection referred to as `reduced acreage'.
  `(E) FARM PROGRAM ACREAGE- Except as provided in subsection (c)(1)(B),
  the individual farm program acreage shall be the acreage planted on the
  farm to rice for harvest within the permitted rice acreage for the farm
  as established under this paragraph.
  `(3) USE OF CONSERVATION ACREAGE- (A) PROTECTION FROM WEEDS AND EROSION-
  The regulations issued by the Secretary under paragraph (2) with respect to
  acreage required to be devoted to conservation uses shall assure protection
  of such acreage from weeds and wind and water erosion.
  `(B) PERMITTED PLANTINGS- The Secretary may permit, subject to such
  terms and conditions as the Secretary may prescribe, all or any part of
  such acreage to be devoted to sweet sorghum, or the production of guar,
  sesame, safflower, sunflower, rapeseed, castor beans, mustard seed,
  crambe, plantago ovato, flaxseed, triticale, rye, or other commodity,
  if the Secretary determines that such production is needed to provide an
  adequate supply of such commodities, is not likely to increase the cost
  of the price support program, and will not affect farm income adversely.
  `(C) HAYING AND GRAZING- (i) Except as provided in clause (ii), haying
  and grazing of acreage designated as conservation use acreage for the
  purpose of meeting any requirements established under an acreage limitation
  program (including a program conducted under subsection (c)(1)(B)),  or
  land diversion program established under this section shall be permitted,
  except during any consecutive 5-month period that is established by the
  State committee established under section 8(b) of the Soil Conservation
  and Domestic Allotment Act (16 U.S.C. 590h(b)) for a State.  Such 5-month
  period shall be established during the period beginning April 1, and ending
  October 31, of a year.
  `(ii) In the case of a natural disaster, the Secretary may permit unlimited
  haying and grazing on such acreage.
  `(4) LAND DIVERSION PROGRAM- (A) PAYMENTS- The Secretary may make land
  diversion payments to producers of rice, whether or not an acreage limitation
  program for rice is in effect, if the Secretary determines that such land
  diversion payments are necessary to assist in adjusting the total national
  acreage of rice to desirable goals.  Such land diversion payments shall
  be made to producers who, to the extent prescribed by the Secretary,
  devote to approved conservation uses an acreage of cropland on the farm
  in accordance with land diversion contracts entered into by the Secretary
  with such producers.
  `(B) BIDS FOR CONTRACTS- The amounts payable to producers under land
  diversion contracts may be determined through the submission of bids for
  such contracts by producers in such manner as the Secretary may prescribe
  or through such other means as the Secretary determines appropriate.
  In determining the acceptability of contract offers, the Secretary shall
  take into consideration the extent of the diversion to be undertaken by
  the producers and the productivity of the acreage diverted.
  `(C) LIMITATION ON DIVERTED ACREAGE- The Secretary shall limit the total
  acreage to be diverted under agreements in any county or local community
  so as not to affect adversely the economy of the county or local community.
  `(5) WILDLIFE USES FOR REDUCED AND DIVERTED ACREAGE- (A) IN GENERAL- The
  reduced acreage and additional diverted acreage may be devoted to wildlife
  food plots or wildlife habitat in conformity with standards established
  by the Secretary in consultation with wildlife agencies.
  `(B) COST SHARING- The Secretary may pay an appropriate share of the cost
  of practices designed to carry out the purposes of subparagraph (A).
  `(C) ENCOURAGEMENT OF PUBLIC ACCESS- The Secretary may provide for an
  additional payment on such acreage in an amount determined by the Secretary
  to be appropriate in relation to the benefit to the general public if the
  producer agrees to permit, without other compensation, access to all or
  such portion of the farm, as the Secretary may prescribe, by the general
  public, for hunting, trapping, fishing, and hiking, subject to applicable
  State and Federal regulations.
  `(6) PARTICIPATION AGREEMENTS- (A) IN GENERAL- An operator of a farm desiring
  to participate in the program conducted under this subsection shall execute
  an agreement with the Secretary providing for such participation not later
  than such date as the Secretary may prescribe.
  `(B) MODIFICATION OR TERMINATION- The Secretary may, by mutual agreement
  with producers on a farm, terminate or modify any such agreement if the
  Secretary determines such action necessary because of an emergency created
  by drought or other disaster or to prevent or alleviate a shortage in the
  supply of agricultural commodities.
  `(f) ONE-HALF ACREAGE REDUCTION PROGRAM- (1) IN GENERAL- The Secretary may,
  for each of the 1991 through 1995 crops of rice, make payments available
  to producers who meet the requirements of this subsection.
  `(2) FORM OF PAYMENT- Such payments may be--
  `(A) made in the form of rice owned by the Commodity Credit Corporation;  or
  `(B) made in such other form as the Secretary is authorized by law to make.
  `(3) DETERMINATION OF PAYMENT- (A) IN GENERAL- Payments under this subsection
  shall be determined in the same manner as provided in subsection (b).
  `(B) QUANTITY OF RICE MADE AVAILABLE- The quantity of rice to be made
  available to a producer under this subsection shall be equal in value to
  the payments so determined under such subsection.
  `(4) ELIGIBILITY- A producer shall be eligible to receive a payment under
  this subsection for a crop if the producer--
  `(A) agrees to forgo obtaining a loan or purchase agreement under subsection
  (a);
  `(B) agrees to forgo receiving payments under subsection (c);
  `(C) does not plant rice for harvest in excess of the crop acreage base
  reduced by one-half of any acreage required to be diverted from production
  under subsection (f); and
  `(D) otherwise complies with this section.
  `(g) EQUITABLE RELIEF- (1) LOANS AND PAYMENTS- If the failure of a
  producer to comply fully with the terms and conditions of the program
  formulated under this section precludes the making of loans, purchases,
  and payments, the Secretary may, nevertheless, make such loans, purchases,
  and payments in such amounts as the Secretary determines are equitable in
  relation to the seriousness of the failure.  The Secretary may consider
  whether the producer made a good faith effort to comply fully with the
  terms and conditions of such program in determining whether equitable
  relief is warranted under this paragraph.
  `(2) DEADLINES AND PROGRAM REQUIREMENTS- The Secretary may authorize the
  county and State committees established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or
  modify deadlines and other program requirements in cases in which lateness
  or failure to meet such other requirements does not affect adversely the
  operation of the program.
  `(h) REGULATIONS- The Secretary may issue such regulations as the Secretary
  determines necessary to carry out this section.
  `(i) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the
  program authorized by this section through the Commodity Credit Corporation.
  `(j) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to
  assignment of payments) shall apply to payments under this section.
  `(k) EQUITABLE SHARING OF PAYMENTS- The Secretary shall provide for the
  sharing of payments made under this section for any farm among the producers
  on the farm on a fair and equitable basis.
  `(l) TENANTS AND SHARECROPPERS- The Secretary shall provide adequate
  safeguards to protect the interests of tenants and sharecroppers.
  (m) PROHIBITIONS- (1) CROSS COMPLIANCE- (A) IN GENERAL- Notwithstanding any
  other provision of law, compliance on a farm with the terms and conditions
  of any other commodity program, or compliance with crop base acreage
  requirements for any other commodity, may not be required as a condition
  of eligibility for loans, purchases, or payments under this section.
  `(B) CROP ACREAGE BASE INCREASES- If a producer on a farm is participating
  in the rice program under this section, the crop acreage base for any other
  commodity for the farm may not be increased if such commodity is produced
  on the farm in a manner that is not in compliance with--
  `(i) the terms and conditions of the applicable commodity program for such
  commodity; or
  `(ii) the crop acreage base requirements of the applicable commodity
  program for such commodity.
  `(2) OFFSETTING COMPLIANCE- The Secretary may not require producers on a
  farm, as a condition of eligibility for loans, purchases, or payments under
  this section for such farm, to comply with the terms and conditions of
  the rice program with respect to any other farm operated by such producers.'.
SEC. 302. MARKETING CERTIFICATES.
  (a) IN GENERAL- Notwithstanding any other provision of law, whenever,
  during the period beginning August 1, 1991, and ending July 31, 1996,
  the world price for a class of rice (adjusted to United States qualities
  and location), as determined by the Secretary of Agriculture, is below the
  current loan repayment rate for that class of rice, to make United States
  rice competitive in world markets and to maintain and expand exports of rice
  produced in the United States, the Commodity Credit Corporation, under such
  regulations as the Secretary may prescribe, shall make payments, through the
  issuance of negotiable marketing certificates, to persons who have entered
  into an agreement with the Commodity Credit Corporation to participate
  in the program established under this section.  Such payments shall be
  made in such monetary amounts and subject to such terms and conditions
  as the Secretary determines will make rice produced in the United States
  available at competitive prices consistent with the purposes of this section.
  (b) VALUE OF CERTIFICATES- The value of each certificate issued under
  subsection (a) shall be based on the difference between--
  (1) the loan repayment rate for the class of rice; and
  (2) the prevailing world market price for the class of rice, as determined
  by the Secretary of Agriculture under a published formula submitted for
  public comment before its adoption.
  (c) REDEMPTION OF CERTIFICATES- The Commodity Credit Corporation, under
  regulations prescribed by the Secretary of Agriculture, shall assist any
  person receiving marketing certificates under this section in the redemption
  of certificates for cash, or marketing or exchange of such certificates for
  agricultural commodities or the products thereof owned by the Commodity
  Credit Corporation, at such times, in such manner, and at such price
  levels as the Secretary determines will best effectuate the purposes of
  the program established under this section.  Notwithstanding any other
  provision of law, any price restrictions that may otherwise apply to the
  disposition of agricultural commodities by the Commodity Credit Corporation
  shall not apply to the redemption of certificates under this section.
  (d) COMMODITY DESIGNATION; STORAGE COSTS- Insofar as practicable, the
  Secretary shall permit owners of certificates to designate the commodities
  and the products thereof, including storage sites thereof, such owners
  would prefer to receive in exchange for certificates.  If any certificate
  is not presented for redemption, marketing, or exchange within a reasonable
  number of days after the issuance of such certificate (as determined by
  the Secretary), reasonable costs of storage and other carrying charges,
  as determined by the Secretary, shall be deducted from the value of the
  certificate for the period beginning after such reasonable number of days
  and ending with the date of the presentation of such certificate to the
  Commodity Credit Corporation.
  (e) PREVENTION OF POTENTIAL ADVERSE AFFECTS- The Secretary of Agriculture
  shall take such measures as may be necessary to prevent the marketing
  or exchange of agricultural commodities and the products thereof for
  certificates under this section from adversely affecting the income of
  producers of such commodities or products.
  (f) TRANSFERABILITY- Under regulations prescribed by the Secretary of
  Agriculture, certificates issued to rice exporters under this section may
  be transferred to other exporters and persons approved by the Secretary.
TITLE IV--DAIRY
SEC. 401.  FINDINGS.
  Congress finds that--
  (1) United States dairy policy should foster an economic environment in
  which milk producers have the opportunity to receive a satisfactory return
  for their labor and investment;
  (2) the Federal support price should establish a minimum price which
  guarantees an adequate supply of wholesome milk;
  (3) the Federal dairy program should foster the use of a component based
  price support system to more readily reflect market demands and better
  communicate the economic composition of milk and products derived from milk;
  (4) market forces, together with appropriate adjustments in the government
  support price and standby milk production reduction programs, should
  balance supply and demand for milk and dairy products;
  (5) Federal dairy support programs should embody the notion that the market
  for dairy products is national in scope;
  (6) United States milk producers should be treated equally under Federal
  laws that compel the Secretary to purchase dairy products under the price
  support program;
  (7) an alternative milk production reduction program should be used only when
  price changes alone will not balance supply with demand within a reasonable
  time period without greatly disrupting the market for dairy products; and
  (8) factors such as the cost of the program, the program's effect on other
  agricultural segments, the economic conditions in agriculture and fiscal
  goals should be considered when an alternative inventory management program
  is considered.
SEC. 402. MILK PRICE SUPPORT AND INVENTORY MANAGEMENT PROGRAM              FOR
CALENDAR YEARS 1991 THROUGH 1995.
  Section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended by
  amending subsection (e) to read as follows:
  `(e) Notwithstanding any other provision of law--
  `(1) During the period beginning on January 1, 1991 and ending on
  December 31, 1995, the price of milk shall be supported as provided in
  this subsection.
  `(2)(A) During the period beginning on January 1, 1991 and ending on
  December 31, 1995, the price of milk shall be supported at a rate not less
  than $10.10 per hundredweight for milk containing 3.67 percent milkfat.
  `(B)(i) The price of milk shall be supported through the  purchase of milk
  and the products of milk.
  `(ii) The Commodity Credit Corporation price support for each of the
  products butter, cheese and nonfat dry milk, respectively, announced by
  the Corporation shall be the same for all of that product sold by persons
  offering to sell such product to the Corporation.  Such purchase prices
  shall be sufficient to enable plants of average efficiency receiving such
  prices for dairy products to pay producers, on average, a price not less
  than the rate of price support for milk in effect during such twelve-month
  period under this paragraph.
  `(iii) In carrying out this section, the Secretary shall offer to purchase
  butter for not more than an amount per pound of $0.8150 in fiscal years 1991
  through 1993, and $0.7875 in fiscal years 1994 and 1995, and shall offer
  to purchase nonfat dry milk at such a level that results in milk being
  supported at the level prescribed in subparagraph (A) as adjusted under
  paragraph (3), except that the Secretary may allocate the rate of price
  support between the purchase prices for nonfat dry milk and butter in such
  other manner as the Secretary determines will result in the lowest level
  of expenditures by the Commodity Credit Corporation and shall notify the
  Committee on Agriculture of the House of Representatives and the Committee
  on Agriculture, Nutrition, and Forestry of the Senate of such determination.
  `(3)(A)(i) If for any of the fiscal years 1992 through 1996, the level
  of purchases of milk and the products of milk by the Commodity Credit
  Corporation under this subsection (less sales under section 407 for
  unrestricted use), as estimated by the Secretary on August 1 of the
  preceding fiscal year, will exceed 5 billion pounds, milk equivalent,
  total milk solids basis, the Secretary shall decrease by an amount per
  hundredweight of at least $0.25 but not more than $0.50 the rate of price
  support for milk in effect for such fiscal year.
  `(ii) The Secretary shall, by August 1 of the preceding fiscal year,
  notify the Committee on Agriculture of the House of Representatives and
  the Committee on Agriculture, Nutrition, and Forestry of the Senate of
  any proposed decrease in price support under this subparagraph.
  `(B)(i) If for any of the fiscal years 1992 through 1996, the level
  of purchases of milk and the products of milk by the Commodity Credit
  Corporation under this subsection (less sales under section 407 for
  unrestricted use), as estimated by the Secretary on August 1 of the preceding
  fiscal year, will not exceed 3.5 billion pounds, milk equivalent, total milk
  solids basis, the Secretary shall increase by an amount per hundredweight
  of at least $0.25 the rate of price support for milk in effect for such
  fiscal year.
  `(ii)  The Secretary shall, by August 1 of the preceding fiscal year,
  notify the Committee on Agriculture of the House of Representatives and
  the Committee on Agriculture, Nutrition, and Forestry of the Senate of
  any proposed increase in price support under this subparagraph.
  `(C) If for any of the fiscal years 1992 through 1996, the level of purchases
  of milk and the products of milk by the Commodity Credit Corporation
  under this subsection (less sales under section 407 for unrestricted use),
  as estimated by the Secretary on August 1 of the preceding fiscal year,
  will be less than 5 billion pounds, milk equivalent, total milk solids
  basis, but more than 3.5 billion pounds of milk equivalent, total milk
  solids basis, the Secretary shall not decrease the rate of price support
  for milk in effect for such fiscal year.
  `(D) Notwithstanding any other provision of this subsection, in no event
  shall the price of milk be supported at less than $10.10 per hundredweight.
  `(E)(i) As used in this subsection, the term `milk equivalent, total
  milk solids basis', of milk and the products of milk purchased by the
  Commodity Credit Corporation shall be equal to the weighted-average
  of the milk equivalents, as computed on a milkfat basis, and on a milk
  solids not fat basis, of such products, with weighting factors equal to
  not more than 40 percent for the milk equivalent, milkfat basis, and not
  more than 70 percent for the milk equivalent, milk solids not fat basis.
  Such weighting factors shall total 100 percent.
  `(ii) The Secretary shall issue a proposed rule defining `total milk
  solids basis' no later than 30 days after enactment of this subsection,
  shall provide notice and reasonable opportunity for public comment, and
  shall issue a final rule defining `total milk solids basis' no later than
  90 days after enactment of this subsection.
  `(iii) In estimating the level of purchases of milk and the products of
  milk under this subsection, the Secretary shall deduct the amount, if
  any, by which the level of imports into the United States of milk and the
  products of milk during the most recent calendar year exceeds the annual
  average level of imports into the United States of milk and the products
  of milk during the period January 1, 1986, through December 31, 1990,
  milk equivalent, total milk solids basis.
  `(4)(A) Within 180 days of enactment of this subsection, the Secretary shall
  submit to the Committee on Agriculture of the House of Representatives
  and the Committee on Agriculture, Nutrition, and Forestry of the Senate,
  a report that--
  `(i) recommends an inventory management program to be implemented when
  Commodity Credit Corporation purchases of milk and the products of milk
  are projected to exceed 7 billion pounds of milk equivalent, total milk
  solids basis, in any fiscal year;
  `(ii) evaluates two-tier pricing systems, or a plan to achieve equivalent
  results;
  `(iii) does not evaluate any termination or diversion program;
  `(iv) does not evaluate the use of assessments as a mechanism to decrease
  price support levels; and
  `(v) seeks, among other things, methods to reduce any excessive surplus
  of milk, lower costs to the Commodity Credit Corporation, and to provide
  for the orderly marketing of surplus milk.
  `(B) The report submitted under subparagraph (A) shall include, but is
  not limited to, the following topics:
  `(i) the difficulties and possible resolutions associated with the
  disposition and orderly marketing of milk priced at a price lower than
  the world market price through various marketing channels including export
  markets and domestic donation feeding programs;
  `(ii) the establishment of a Class IV price for milk;
  `(iii) the impact of a Class IV system on the Federal milk marketing
  order system;
  `(iv) the impact of a system similar to the Class IV  system on non-Federal
  milk marketing order milk; and
  `(v) plans to achieve desired results other than through a two-tiered
  pricing system.
  `(C)(i) If for any of the fiscal years 1992 through 1995, the level
  of purchases of milk and the products of milk by the Commodity Credit
  Corporation under this subsection (less sales under section 407 for
  unrestricted use), as estimated by the Secretary on August 1 of the
  preceding fiscal year, will exceed 7 billion pounds of milk equivalent,
  total milk solids basis, the Secretary shall, except as provided in clause
  (ii), implement for such fiscal year the inventory management program
  recommended in subparagraph (A).
  `(ii) The Secretary shall not implement the inventory management program
  recommended in subparagraph (A) before the later of January 1, 1992,
  or the date 6 months after the submission of the report required under
  subparagraph (A).
  `(iii) If the Secretary is required to implement during a fiscal year
  an inventory management program, the Secretary shall, by August 1 of the
  preceding fiscal year, notify the Committee on Agriculture of the House of
  Representatives and the Committee on Agriculture, Nutrition, and Forestry
  of the Senate of the type of inventory management program to be implemented.
  `(iv) Not later than January 1 of any fiscal year that an inventory
  management program is in effect, the Secretary shall submit to the
  Committee on Agriculture of the House of Representatives and the Committee
  on Agriculture, Nutrition, and Forestry of the Senate a certification,
  including a statement of facts in support of such certification, that such
  inventory management program will achieve a reduction in the production
  or marketing of milk for commercial purposes by program participants such
  that purchases of milk and the products of milk by the Commodity Credit
  Corporation, as estimated by the Secretary, for the fiscal year will not
  be greater than 7 billion pounds, milk equivalent, total milk solids basis.
  `(D) If the Secretary is required to establish and carry out an inventory
  management program for milk, the Secretary shall not offer to enter into
  a contract with any producer of milk in the United States for the purpose
  of selling for slaughter any dairy cattle in which such producer owns
  an interest.'.
SEC. 403.  MILK MANUFACTURING MARGIN STUDY.
  (a) STUDY- The Secretary of Agriculture shall direct the Agricultural
  Marketing Service of the United States Department of Agriculture to conduct
  a study of state milk pricing programs for submission to the Committee
  on Agriculture of the House of Representatives and the Committee on
  Agriculture, Nutrition, and Forestry of the Senate, not later than one
  year after enactment of this Act.
  (b) EVALUATION- The study submitted under subsection (a) shall evaluate--
  (1) the objectives, rational, and operation of State milk pricing programs;
  (2) the impacts on Federal Government programs, the dairy industry,
  and consumers, of State manufacturing allowances in States currently
  operating under State milk pricing programs, including a comparative
  analysis under the alternative allowance levels of farm and retail level
  prices, production levels, the supply-demand balance, and the cost of the
  Federal dairy price support program;
  (3) the extent to which over-order premiums under federal milk marketing
  orders compensate for the low federal manufacturing allowances; and
  (4) comparative plant operating cost data, including labor, utilities
  and product yields and other specialized factors in any State that has a
  manufacturing allowance different from the Federal manufacturing allowance.
  (c) PROHIBITION- If the Secretary finds, as a result of the study conducted
  pursuant to subsection (a), and after considering all the factors enumerated
  in subsection (b), that a State's use of a manufacturing allowance that
  is different from the Federal manufacturing allowance used for purposes of
  price support purchases under section 201 of the Agricultural Act of 1949
  (7 U.S.C. 1446) has an adverse effect on the operation of the Federal dairy
  program, and that manufacturing cost and yield data from that same State,
  audited by that State and presented at public hearings in that State do
  not justify different manufacturing allowances in that State, then the
  Secretary may, after conducting public hearings and providing for a public
  comment period not less than 90 days from the conclusion of such hearings,
  prohibit that State from using an allowance which is different from the
  Federal manufacturing allowance to establish a price for Grade A milk for
  manufacturing butter, non-fat dry milk, or cheese.
  (d) APPEAL- Any State that is prohibited from establishing a manufacturing
  allowance different from the Federal manufacturing allowance may file an
  appeal with the Secretary under procedures provided for under title 5 of
  the United States Code 556 et seq.
SEC. 404.  MINNESOTA-WISCONSIN PRICE SERIES REFORM.
  (a) INITIATE REFORM- Within 60 days of enactment of this Act, the Secretary
  of Agriculture shall commence to accept alternative pricing formula
  recommendations, as they may relate to the Minnesota-Wisconsin price series
  used to determine the minimum prices paid under milk marketing orders, in
  order to amend such milk marketing orders authorized under section 8c of the
  Agricultural Adjustment Act, reenacted with amendments by the Agricultural
  Marketing Agreement Act of 1937.  Among the alternative pricing formulas
  to be considered by the Secretary shall be a price series based on prices
  paid by milk processors for Grade A milk and manufacturing grade milk that
  is used in the manufacture of dairy products.
  (b) AVAILABILITY OF DATA- The Secretary shall compile and make available to
  the public the historical and current data used to compare the alternative
  pricing formulas submitted and recommended as provided in subsection (a)
  with the existing Minnesota-Wisconsin price series.
  (c) DEADLINE- (1) Not later than October 1, 1991, the Secretary shall publish
  in the Federal Register a proposed replacement price series and shall
  give notice and 30 days for public comment on such proposal.  At the end
  of the comment period the Secretary shall publish a final rule and report
  such rule to the Committee on Agriculture of the House of Representatives
  and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
  Not less than 30 legislative days after publication of the final rule,
  the Secretary shall implement the new Minnesota-Wisconsin price series
  in the federal milk marketing orders as provided under section 8c of the
  Agricultural Adjustment Act, reenacted with amendments by the Agricultural
  Marketing Agreement Act of 1937.
  (2) For purposes of this section `legislative day' shall mean a day on
  which either House of Congress is in session.
SEC. 405.  HEARINGS ON FEDERAL MILK MARKETING ORDERS.
  The Secretary of Agriculture shall conclude the national hearings announced
  by the Secretary on March 29, 1990, regarding possible changes in the
  pricing provisions of federal milk marketing orders in order to effect any
  changes in the federal orders setting minimum prices that milk processors
  must pay for Grade A milk received from producers, by January 1, 1992.
SEC. 406.  REPORT OF DAIRY PRODUCT PURCHASES.
  The Secretary of Agriculture shall make available to the public quarterly
  evaluations of the acquisition and disposal of Commodity Credit Corporation
  purchases of dairy products.
SEC. 407.  APPLICATION OF SUPPORT PRICE FOR MILK.
  For purposes of supporting the price of milk under section 201(e) of the
  Agricultural Act of 1949 (7 U.S.C. 1446(e)), the Secretary of Agriculture
  may not take into consideration any market value of whey.
SEC. 408.  APPLICATION OF AMENDMENTS.
  The amendments made by this title shall not affect any liability of any
  person under section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446)
  as in effect before the date of the enactment of this Act.
SEC. 409. ADJUSTMENTS FOR SEASONAL PRODUCTION; HEARINGS ON AMENDMENTS;
DETERMINATION OF MILK PRICES.
  Section 101(b) of the Agriculture and Food Act of 1981 (7 U.S.C. 608c note)
  is amended by striking `1990'and inserting `1995'.
SEC. 410. TRANSFER OF DAIRY PRODUCTS TO THE MILITARY AND VETERANS HOSPITALS.
  Subsections (a) and (b) of section 202 of the Agricultural Act of 1949
  (7 U.S.C. 1446a) are each amended by striking `1990' and inserting `1995'.
SEC. 411.  EXTENSION OF THE DAIRY INDEMNITY PROGRAM.
  Section 3 of the Act entitled `An Act to provide indemnity payments to
  dairy farmers' (7 U.S.C. 450l), approved August 13, 1968, is amended by
  striking `1990' and inserting `1995'.
SEC. 412.  EXPORT SALES OF DAIRY PRODUCTS.
  (a) IN GENERAL- In each of the fiscal years 1991 through 1995, the Secretary
  of Agriculture shall sell for export, at such prices as the Secretary
  determines appropriate, not less than 150,000 metric tons of dairy products
  owned by the Commodity Credit Corporation, of which not less than 100,000
  metric tons shall be butter and not less than 20,000 metric tons shall be
  cheese, if that disposition of such commodities will not interfere with
  the usual marketings of the United States nor disrupt world prices of
  agricultural commodities and normal patterns of commercial trade.
  (b) SALES- Such sales shall be made through the Commodity Credit Corporation.
  (c) REPORT- Through September 30, 1995, the Secretary shall report
  semiannually to the Committee on Agriculture of the House of Representatives
  and the Committee on Agriculture, Nutrition, and Forestry of the Senate
  on the volume of sales made under this section.
SEC. 413.  COMPONENT PRICING OF MILK.
  Section 8c(5)(B) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)(B)),
  reenacted with amendments by the Agricultural Marketing Agreement Act of
  1937, is amended by striking out `and' at the end of clause (ii)(d) and
  adding before the final period at the end of the clause, the following:
  `and, (f) a further adjustment, equitably to apportion the total value of
  milk purchased by any handler or by all handlers among producers on the
  basis of the milk components contained in their marketings of milk.'.
SEC. 414.  ADJUSTMENTS IN PAYMENTS BY HANDLERS.
  Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)),
  reenacted with amendments by the Agricultural Marketing Agreement Act of
  1937, is amended by adding at the end the following:
  `(L) Providing that adjustments in payments by handlers under paragraph
  (A) need not be the same as adjustments to producers under paragraph (B)
  with regard to adjustments authorized by subparagraph (A) (2) and (3)
  and clauses (B)(ii) (b), (c), and (d).'.
SEC. 415.  DAIRY EXPORT INCENTIVE PROGRAM.
  Section 153 of the Food Security Act of 1985 (15 U.S.C. 713a-14) is amended
  by striking `September 30, 1990' and inserting `December 31, 1995'.
SEC. 416. AMENDMENT TO THE PACKERS AND STOCKYARDS ACT, 1921, TO
PROVIDE FOR THE ESTABLISHMENT OF TRUSTS FOR THE  BENEFIT OF MILK PRODUCERS.
  (a) DEFINITIONS- Section 2(a) of the Packers and Stockyards Act, 1921
  (7 U.S.C. 182) is amended--
  (1) in paragraph (10) by striking `and' at the end;
  (2) by redesignating paragraph (11) as paragraph (15), and
  (3) by inserting after paragraph (10) the following:
  `(11) The term `milk' means cow's milk;
  `(12) The term `milk product' means any product or by product from
  processing milk;
  `(13) The term `milk producer' means any person who produces milk;
  `(14) The term `handler' means any person who, in commerce, receives or
  otherwise acquires milk, processes, prepares or arranges for marketing,
  or markets the milk; and'.
  (b) STATUTORY TRUST ESTABLISHED- The Packers and Stockyards Act, 1921 (7
  U.S.C. 181 et seq.) is amended by inserting after section 207 the following:
`SEC. 208. STATUTORY TRUST ESTABLISHED; MILK.
  `(a) PROTECTION OF PUBLIC INTEREST FROM INADEQUATE FINANCING ARRANGEMENTS-
  (1) It is hereby found that a burden on commerce in milk, and an obstruction
  to commerce in milk is caused by financing arrangements under which handlers
  encumber, give lenders security interest in, or have liens placed on milk
  purchased or received by a handler, on inventories of milk, on receivables
  or proceeds from milk, or on products derived from milk when payment is not
  made for the milk.  Such arrangements are contrary to the public interest.
  `(2) This section is intended to remedy such burden on commerce in milk
  and obstruction to commerce in milk and to protect the public interest.
  `(b) TRUSTS- All milk purchased or received by a handler, all inventories
  of milk or milk products, and all receivables or proceeds from milk or
  milk products, shall be held by such handler in trust for the benefit of
  all unpaid milk producers of such milk or milk products or unpaid handlers
  until full payment has been received by such unpaid milk producer or handler.
  `(c) EFFECT OF DISHONORED INSTRUMENTS- Payment shall  not be considered
  to have been made if the milk producer or handler receives a payment
  instrument which is dishonored.
  `(d) PRESERVATION OF TRUST BENEFITS BY MILK PRODUCER OR HANDLER- The
  unpaid milk producer or unpaid handler shall lose the benefit of such
  trust if such milk producer or handler has not preserved his trust under
  this section by giving written notice to the debtor handler and by filing
  such notice with the Secretary--
  `(1) within thirty days of the final date for making a payment for milk
  when a payment instrument has not been received, or
  `(2) within fifteen business days after the milk producer or handler has
  received notice if the payment instrument promptly presented for payment
  has been dishonored.
  `(e) DISTRICT COURTS- The several district courts of the United States
  are vested with jurisdiction specifically to entertain--
  `(1) actions by trust beneficiaries to enforce payment from the trust; and
  `(2) actions by the Secretary to prevent and restrain dissipation of
  the trust.'.
  (c) RECORDS AND RESPONSIBILITY- (1) Section 401 of the Packers and Stockyards
  Act, 1921 (7 U.S.C. 221), is amended by inserting `, milk handler' after
  `any live poultry dealer'.
  (2) Section 403 of the Packers and Stockyards Act, 1921 (7 U.S.C. 223),
  is amended by inserting `, milk handler' after `any live poultry dealer'.
  (d) EFFECTIVE DATE- The amendments made by this section shall take effect
  90 days after the date of the enactment of this Act.
  (e) AUTHORIZATION- Such sums are authorized to be appropriated as may be
  necessary for the administration of this section.
SEC. 417.  STATUS OF PRODUCER HANDLERS.
  The legal status of producer handlers of milk under the Agricultural
  Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the
  Agricultural Marketing Agreement Act of 1937, shall be the same after the
  amendments made by this title take effect as it was before the effective
  date of such amendments.
TITLE V--WOOL AND MOHAIR
SEC. 501.  EXTENSION OF PRICE SUPPORT PROGRAM.
  Section 703 of the National Wool Act of 1954 (7 U.S.C. 1782) is amended by--
  (1) striking `1990' in subsection (a) and inserting `1995'; and
  (2) striking `1990' in subsection (b) and inserting `1995'.
SEC. 502.  PROMOTION PROGRAM.
  Section 708 of the National Wool Act of 1954 (7 U.S.C. 1787) is amended by
  striking `at least two-thirds' wherever it appears and inserting `a majority'
  and by striking `two-thirds' wherever it appears and inserting `a majority'.
SEC. 503.  PAYMENT LIMITATION.
  Section 704 of the National Wool Act of 1954 (7 U.S.C. 1783) is amended by--
  (1) inserting immediately after the section designation `(a) USE OF PAYMENTS-
  '; and
  (2)  adding at the end the following new subsection:
  `(b)  PAYMENT LIMITATION- The total amount of payments that any one producer
  is entitled to receive under this Act for any marketing year that begins
  after the date of enactment of this sentence shall not exceed $250,000.'.
TITLE VI--HONEY
Subtitle A--Beekeeping Stabilization
SEC. 601.  SHORT TITLE.
  This subtitle may be cited as the `Beekeeping Industry Stabilization Act
  of 1990'.
SEC. 602.  FINDINGS AND POLICY.
  (a) FINDINGS- Congress finds that--
  (1) honeybees serve a vital function for United States agriculture by
  pollinating millions of acres of fruits, vegetables, oilseeds, and legume
  seed crops annually;
  (2) pollination by honeybees adds an estimated $9.7 billion annually to the
  value of the crops pollinated in the United States and has many additional
  indirect benefits to  agriculture and horticulture, and such pollination
  has increased in importance to farmers in recent years as urbanization
  and other pressures on the environment have lessened the availability of
  other natural pollinators;
  (3) while the value of honeybees to agriculture as pollinators far exceeds
  the value of the honey produced by bees, the income from honey production
  is essential to most beekeepers' operations since their income from honey
  production far exceeds the fees they receive for pollination services;
  (4) honey production provides the incentive for beekeepers to maintain
  strong colonies of bees during the many months of the year that bees are
  not involved in commercial pollination; and
  (5) the honey price support program has enabled beekeepers to continue
  operations and provide vital pollinating services while also assuring
  consumers of a stable supply of nutritious honey at reasonable prices.
  (b) POLICY- It, therefore, is declared to be the policy of Congress that
  the provisions of this Act to extend the honey price support program are
  necessary to preserve a viable beekeeping industry in the United States.
SEC. 603. HONEY PRICE SUPPORT.
  Effective only for the 1991 through 1995 crops of honey, subsection (b)
  of section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended
  to read as follows:
  `(b)(1) For each of the 1991 through 1995 crops of honey, the price of
  honey shall be supported through loans, purchases, or other operations at
  not less than 53.8 cents per pound.
  `(2) The Secretary may permit a producer to repay a loan made to the
  producer under this subsection for a crop at a level that is the lesser of--
  `(A) the loan level determined for such crop; or
  `(B) such level as the Secretary determines will--
  `(i) minimize the number of loan forfeitures;
  `(ii) not result in excessive total stocks of honey;
  `(iii) reduce the costs incurred by the Federal  Government in storing
  honey; and
  `(iv) maintain the competitiveness of honey in the  domestic and export
  markets.
  `(3)(A) If the Secretary determines that a person has knowingly pledged
  adulterated or imported honey as collateral to secure a loan made under
  this subsection, such person, in addition to any other penalty or sanction
  prescribed by law, shall be ineligible for a loan, purchase, or payment
  under this subsection for the 3 crop years succeeding such determination.
  `(B) For purposes of subparagraph (A), honey shall be considered adulterated
  if--
  `(i) any substance has been substituted wholly or in part for such honey;
  `(ii) such honey contains a poisonous or deleterious substance that may
  render such honey injurious to health, except that in any case in which such
  substance is not added to such honey, such honey shall not be considered
  adulterated if the quantity of such substance in or on such honey does
  not ordinarily render it injurious to health; or
  `(iii) for any other reason, such honey is unsound, unhealthy, unwholesome,
  or otherwise unfit for human consumption.'.
Subtitle B--Research, Promotion, and Consumer Information
SEC. 611. SHORT TITLE.
  This title may be cited as the `Honey Research, Promotion, and Consumer
  Information Act Amendments of 1990'.
SEC. 612.  DEFINITIONS.
  Section 3 of the Honey Research, Promotion, and Consumer Information Act
  (7 U.S.C. 4602) is amended by--
  (1) in paragraph (8)--
  (A) striking `or who acts' and inserting `or acts'; and
  (B) inserting before the period at the end the following:  `and who is
  listed in the import records as the importer of record for such honey or
  honey products'; and
  (2) adding at the end the following new paragraph:
  `(18) The term `exporter' means any person who exports honey or honey
  products from the United States.'.
SEC. 613.  REQUIRED TERMS IN ORDERS.
  Section 7 of the Honey Research, Promotion, and Consumer Information Act
  (7 U.S.C. 4606) is amended--
  (1) in subsection (c)--
  (A) by amending paragraph (2)(C) to read as follows:
  `(C) two members who are either importers or exporters, of which at least
  one shall be an importer, appointed from nominations submitted by the
  Committee from recommendations by industry organizations representing
  importer and exporter interests;';
  (B) in the matter following paragraph (2)(E), by  striking `nominate an
  alternate or alternates' and inserting `submit nominations for an alternate';
  (C) at the end of paragraph (2), by adding the following sentence: `However,
  no producer-packer who, during any three of the preceding five years,
  purchased for resale more honey than such producer-packer produced shall
  be eligible for nomination or appointment to the Honey Board as a producer
  described in subparagraph (A) or as an alternate to such producer.'; and
  (D) in paragraph (4), inserting before the period at the end the following:
  `, except that if, as a result of the adjustment of the boundaries of the
  regions established under paragraph (2)(A), a producer member or alternate is
  no longer from the region from which such person was appointed, such member
  or alternate may serve out the term for which such person was appointed'; and
  (2) by adding at the end the following new subsection:
  `(k) Any patent on any product, copyright on any material, or any invention,
  product formulation or publication developed through the use of funds
  collected by the Honey Board shall be the property of the Honey Board.
  The funds generated from any such patent, copyright, invention, product
  formulation, or publication shall inure to the benefit of the Honey Board.'.
SEC. 614.  ASSESSMENTS.
  (a) Assessment Rate and Exemptions- Section 7 of the Honey Research,
  Promotion, and Consumer Information Act (7 U.S.C. 4606) is further amended--
  (1) in subsection (e)(1) by striking the second and third sentences and
  inserting the following:  `The assessment rate shall be $0.01 per pound,
  with payment to be made in the manner described in section 9.'; and
  (2) by striking subsection (e)(2) and inserting the following:
  `(2)(A) Honey that is consumed at home by the producer or importer or
  donated by the producer or importer to a nonprofit, government, or other
  entity, as determined appropriate by the Secretary, rather than sold shall
  be exempt from assessment under the order, except that donated honey that
  later is sold in a commercial outlet by a donee or a donee's assignee
  shall be subject to assessment on such sale.
  `(B)(i) A producer, producer-packer, or importer who produces or imports
  during any year less than 6,000 pounds of honey shall be eligible for
  an exemption in such year from paying an assessment on honey such person
  distributes directly through local retail outlets, as determined by the
  Secretary, during such year.
  `(ii) In order to claim an exemption under this subparagraph, a person
  shall submit an application to the Honey Board stating the basis on which
  the person claims the exemption for such year.
  `(iii) If, after a person claims an exemption from assessments for any year
  under this subparagraph, such person no longer meets the requirements of
  this subparagraph for an exemption, such person shall file a report with
  the Honey Board in the form and manner prescribed by the Board and pay
  an assessment on or before March 15 of the subsequent year on all honey
  produced or imported by such person during the year for which the person
  claimed the exemption.
  `(3) If a producer, producer-packer, or importer does not pay any assessments
  under this Act due to the applicability to such person of the exemptions from
  assessments provided in paragraph (2), then such producer, producer-packer,
  or importer shall not be considered a producer or importer for purposes
  of voting in any referendum conducted under this Act during the period
  the person's exemption from all assessments is in effect.'.
  (b) COLLECTION OF ASSESSMENTS; REFUNDS- Section 9 of the Honey Research,
  Promotion, and Consumer Information Act (7 U.S.C. 4608) is amended--
  (1) in subsection (a), by striking `and (e)' and inserting `(e), and (i)';
  (2) by amending subsection (d) to read as follows:
  `(d) In any case in which a loan is made with respect to honey under the
  honey price support loan program established under the Agricultural Act of
  1949, or successor statute, the Secretary shall provide for the assessment
  to be deducted from the disbursement of any loan funds made to the producer
  and for the amount of such assessment to be forwarded to the Honey Board.
  The Secretary shall provide for the producer to receive a statement of the
  amount of the assessment deducted from the loan funds promptly after each
  occasion when an assessment is deducted from any such loan funds under
  this subsection.';
  (3) in subsection (f), by inserting after `assessments' the following: `,
  and persons receiving an exemption from assessments under section 7(e)(2),';
  (4) in subsection (h), by--
  (A) striking `Any' and inserting `(1)(A) Except as otherwise provided in
  paragraph (2), any';
  (B) striking `to importers' and inserting `an importer';
  (C) striking `from importers' and inserting `from such importer'; and
  (D) adding at the end the following:
  `(B) A producer that has obtained a honey price support loan under the
  Agricultural Act of 1949, or successor statute, may obtain a refund if the
  producer has submitted to the Honey Board the statement received under
  subsection (d) of the amount of assessment deducted from the loan funds
  and has otherwise complied with this subsection, even though the loan with
  respect to which the assessment was collected may still be outstanding
  and final settlement has not been made.
  `(2) With respect to the order in effect on the date of the enactment of
  this paragraph, following the referendum on such order required under section
  13(b)(2), a producer or importer may obtain a refund of an assessment under
  such order as provided in paragraph (1) only if the Secretary determines
  that the proposal to terminate refunds under the order is defeated in such
  referendum.'; and
  (5) by inserting after subsection (h) the following:
  `(i) If a first handler or the Secretary fails to collect an assessment
  from a producer under this section, the producer shall be responsible for
  the payment of the assessment to the Honey Board.'.
SEC. 615.  FIRST RECONFIRMATION REFERENDUM.
  (a) IN GENERAL- Section 13(b) of the Honey Research, Promotion, and Consumer
  Information Act (7 U.S.C. 4612) is amended by--
  (1) striking `Five' and inserting `(1) Except as otherwise provided in
  paragraph (2), five';
  (2) striking `continuation, termination,' and inserting `termination'; and
  (3) inserting at the end the following:
  `(2)(A) In lieu of the first referendum otherwise required to be conducted
  under paragraph (1) for the order in effect on the date of the enactment
  of this paragraph, the Secretary shall conduct a referendum to determine
  if honey producers and importers favor--
  `(i) the continuation of the order; and
  `(ii) termination of the authority for producers and importers to obtain
  a refund of assessments under section 9(h)(1).
The referendum shall be conducted at the time the first referendum otherwise
required under paragraph (1) would have been conducted, except for the
operation of this paragraph.
  `(B)(i) The Secretary shall terminate such order at the end of the marketing
  year during which such referendum is conducted, if the Secretary determines
  that termination of the order is approved or favored by not less than a
  majority of the producers and importers voting in the referendum and that
  the producers and importers comprising this majority produce and import
  more than 50 percent of the volume of honey produced and imported by those
  voting in the referendum.
  `(ii) If the Secretary determines that termination of the authority
  for producers and importers to receive refunds of assessments under
  section 9(h)(1) is favored or approved by a majority of the producers and
  importers voting in such referendum and that the producers and importers
  comprising this majority produce and import more than 50 percent of the
  volume of honey produced and imported by those voting in the referendum,
  then the Secretary shall amend such order as necessary to reflect the vote
  of producers and importers.  Such amendment to the order shall become
  effective on the date it is issued, but in no case more than 180 days
  after the conduct of such referendum.'.
  (b) CONFORMING AMENDMENT- Section 13(d) of the Honey Research, Promotion,
  and Consumer Information Act (7 U.S.C. 4612) is amended by--
  (1) striking `such order' and inserting `an order';
  (2) inserting `in which a referendum is conducted under subsection (b) or
  (c)' after `marketing year'; and
  (3) striking `of the order'.
SEC. 616.  INVESTIGATIONS AND POWER TO SUBPOENA.
  The Honey Research, Promotion, and Consumer Information Act is amended by
  inserting after section 11 (7 U.S.C. 4610) the following new section:
`INVESTIGATIONS AND POWER TO SUBPOENA
  `SEC. 11A. (a) IN GENERAL- The Secretary may make such investigations as
  the Secretary deems necessary--
  `(1) for the effective administration of this Act; or
  `(2) to determine whether a person has engaged or is engaging in any act
  or practice that constitutes a violation of any provision of this Act,
  or of any order, rule, or regulation issued under this Act.
  `(b) POWER TO SUBPOENA- (1) INVESTIGATIONS- For the purpose of an
  investigation made under subsection (a), the Secretary is authorized to
  administer oaths and affirmations and to issue a subpoena to require the
  production of any records that are relevant to the inquiry.  The production
  of any such records may be required from any place in the United States.
  `(2) ADMINISTRATIVE HEARINGS- For the purpose of an administrative hearing
  held under section 10 or section 11, the presiding officer is authorized
  to administer oaths and affirmations, subpoena witnesses, compel their
  attendance, take evidence, and require the production of any records that
  are relevant to the inquiry.  Such attendance of witnesses and the production
  of any such records may be required from any place in the United States.
  `(c) AID OF COURTS- In case of contumacy by, or refusal to obey a subpoena
  issued to, any person, the Secretary may invoke the aid of any court of
  the United States within the jurisdiction of which such investigation
  or proceeding is carried on, or where such person resides or carries on
  business, in order to enforce a subpoena issued by the Secretary under
  subsection (b).  The court may issue an order requiring such person to
  comply with such a subpoena.
  `(d) CONTEMPT- Any failure to obey such order of the court may be punished
  by such court as a contempt thereof.
  `(e) PROCESS- Process in any such case may be served in the judicial
  district in which such person resides or conducts business or wherever
  such person may be found.
  `(f) HEARING SITE- The site of any hearings held under this section shall
  be within the judicial district where such person resides or has a principal
  place of business.'.
SEC. 617.  CONFORMING AMENDMENT TO ORDER.
  Notwithstanding any provision of the Honey Research, Promotion, and Consumer
  Information Act (7 U.S.C. 4601 et seq.), the Secretary of Agriculture,
  after notice and opportunity for public comment, shall issue an amendment
  to the order in effect under such Act on the date of the enactment of this
  Act to conform such order to the amendments made by this title, which shall
  become effective on the date of the publication of such amendment to the
  order in the Federal Register without a referendum thereon (except for the
  referendum specifically provided for under section    05).  The Secretary
  shall issue such amendment to the order in final form not later than 150
  days after the date of the enactment of this Act.
TITLE VII--OILSEEDS
SEC. 701.  OILSEED PRICE SUPPORT.
  Effective only for the 1991 through 1995 crops of oilseeds, including
  soybeans, sunflower, canola, rapeseed, safflower, flaxseed, and mustard seed,
  section 201 of the Agricultural Act of 1949 (7 U.S.C. 1446) is amended by--
  (1) inserting after `tung nuts,' in the first sentence `oilseeds (including
  soybeans, sunflower, canola, rapeseed, safflower, flaxseed, and mustard
  seed),' and
  (2) amending subsection (g) to read as follows:
  `(g)(1)(A) The Secretary shall support the price of soybeans, sunflowers,
  canola, rapeseed, safflower, flaxseed, mustard seed, and any other oilseeds
  the Secretary may designate, through loans and purchases in each of the
  1991 through 1995 marketing years as provided in this subsection.
  `(B) Except as provided in paragraph (2), the level of price support --
  `(i) in the case of the 1991 and 1992 crops of soybeans shall not be less
  than $5.25 per bushel; and
  `(ii) in the case of the 1991 through 1995 crops of sunflower, canola,
  rapeseed, safflower, flaxseed, mustard seed, and other oilseeds the
  Secretary may designate, shall be set for each such oilseed at such level
  as the Secretary determines is fair and reasonable in relation to the
  level of price support  available for soybeans, including any adjustment
  made pursuant to paragraph (2), but, except in the case of cottonseed,
  in no event less than the level established for soybeans on a per-pound
  basis for the same crop year.
  `(2) In the case of each of the 1993 through 1995 crops of soybeans and
  other oilseeds for which a price support program is in effect under this
  subsection, if the Secretary estimates for the marketing year for such
  crop that the ratio of ending stocks of soybeans or such other oilseeds
  to total use for the marketing year will be--
  `(A) more than 25 percent, the Secretary may reduce the level of price
  support determined under paragraph (1)(B) for soybeans or such other oilseeds
  for the marketing year by an amount not to exceed 5 percent in any year.
  `(B) more than 20 percent but not more than 25 percent, the Secretary may
  not reduce the level of price support  determined under paragraph (1)(B)
  for soybeans or such other oilseeds for the marketing year.
  `(C) equal to or less than 20 percent, the Secretary shall increase the
  level of price support determined under paragraph (1)(B) for soybeans
  or such other oilseed for the marketing year by 5 percent in any year.
  In no case may the level of price support for the 1993 crop of soybeans
  be more than $5.40 per bushel.
Any change in the level of price support for soybeans or such other oilseed
under this paragraph shall not be considered in determining such level of
price support for subsequent years.
  `(3)(A) If the Secretary adjusts the level of price support  for soybeans
  or other oilseeds under paragraph (2), the Secretary shall submit to the
  Committee on Agriculture of the House of Representatives and the Committee
  on Agriculture, Nutrition, and Forestry of the Senate a report--
  `(i) certifying such adjustment as necessary to prevent the build-up of
  stocks or to encourage production; and
  `(ii) containing a description of the need for such adjustment.
  `(B) Such adjustment shall become effective no earlier than 60 calendar
  days after the date of submission of such report to such committees.
  `(4)(A) The Secretary shall permit a producer to repay a loan made under
  this subsection for any crop of soybeans, sunflower, canola, rapeseed,
  safflower, flaxseed, mustard seed, and other oilseeds that the Secretary
  may designate, at a level that is the lesser of--
  `(i) the loan level determined for such crop; or
  `(ii) the prevailing world market price for such crop, as determined by
  the Secretary.
  `(B) The Secretary shall prescribe by regulation--
  `(i) a formula to define the prevailing world market price for such
  crops; and
  `(ii) a mechanism by which the Secretary shall periodically announce the
  prevailing world market price for such crops.
  `(5)(A) The Secretary shall, for each of the 1991 through 1995 crops of
  soybeans, sunflower, canola, rapeseed, safflower, flaxseed, mustard seed,
  and other oilseeds the Secretary may designate, make payments available
  to producers who, although eligible to obtain a loan under paragraph (1),
  agree to forgo obtaining such loan in return for such payments.
  `(B) A payment under this paragraph shall be computed by multiplying--
  `(i) the loan payment rate; by
  `(ii) the quantity of such crop that the producer is eligible to place
  under loan.
  `(C) For purposes of this paragraph, the quantity of such crops eligible
  to be placed under loan may not exceed the product obtained by multiplying--
  `(i) the individual farm acreage for such crops actually harvested; by
  `(ii) the actual yield per harvested acre established for the farm.
  `(D) For purposes of this paragraph, the loan payment rate shall be the
  amount by which--
  `(i) the loan level determined for such crop under paragraph (1) exceeds
  `(ii) the level at which a loan may be repaid under paragraph (4).
  `(E)(i) The Secretary may make payments under this subsection available in
  the form of certificates redeemable for any agricultural commodity owned
  by the Commodity Credit Corporation.
  `(ii) The Secretary shall make certificates available under clause (i)
  in such a manner so as to minimize the accumulation of oilseeds stocks.
  `(6) For purposes of this subsection, the marketing year for--
  `(A) soybeans, sunflower, or safflower is the 12-month period beginning
  on September 1 of the calendar year in which the crop of the commodity
  is harvested;
  `(B) canola and rapeseed is the 12-month period beginning on May 1 of the
  calendar year in which the crop of the commodity is harvested; and
  `(C) flaxseed, mustard seed, and any other oilseeds the Secretary may
  designate is such period as prescribed by the Secretary by regulation.
  `(7)(A) The Secretary shall make a preliminary announcement of the support
  price for each crop--
  `(i) of soybeans, sunflower, and safflower not later than November 1
  preceding the beginning of the marketing year for the crop,
  `(ii) of canola and rapeseed not later than July 1 preceding the beginning
  of the marketing year for the crop, and
  `(iii) of flaxseed, mustard seed, and other oilseeds the Secretary may
  designate not later than 10 months preceding the beginning of the marketing
  year for such crop.
  `(B) The Secretary shall make a final announcement of the level of price
  support for each crop of soybeans, sunflower, canola, rapeseed, safflower,
  flaxseed, mustard seed, and other oilseeds the Secretary may designate not
  later than 30 days after the beginning of the marketing year for such crop.
  The final support price may not be less than the support price provided
  for in the preliminary announcement.
  `(8) Loans for each crop of soybeans, sunflower, canola, rapeseed, safflower,
  flaxseed, mustard seed, and other oilseeds the Secretary may designate
  shall be made available not earlier than the beginning of the marketing
  year for the crop and shall mature nine months from the date of the loan.
  `(9) Notwithstanding any other provision of law the Secretary may not require
  participation in any production adjustment program for any commodity as
  a condition of eligibility for price support under this subsection.'.
TITLE VIII--PEANUTS
SEC. 801. SUSPENSION OF MARKETING QUOTAS AND ACREAGE ALLOTMENTS.
  The following provisions of the Agricultural Adjustment Act of 1938 shall
  not be applicable to the 1991 through 1995 crops of peanuts:
  (1) Subsections (a) through (j) of section 358 (7 U.S.C. 1358(a)-(j)).
  (2) Subsections (a) through (h) of section 358a (7 U.S.C. 1358a(a)-(h)).
  (3) Subsections (a), (b), (d), and (e) of section 359 (7 U.S.C. 1359 (a),
  (b), (d), (e)).
  (4) Part I of subtitle C of title III (7 U.S.C. 1361 et seq.).
  (5) Section 371 (7 U.S.C. 1371).
SEC. 802. NATIONAL POUNDAGE QUOTA AND FARM POUNDAGE QUOTA.
  Effective only for the 1991 through 1995 crops of peanuts, subsections
  (k) through (p) of section 358 of the Agricultural Adjustment Act of 1938
  (7 U.S.C. 1358(k) through (p)) are amended to read as follows:
  `(k)(1) The national poundage quota for peanuts for each of the 1991
  through 1995 marketing years 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,
  seed, and related uses, except that the national poundage quota for any
  such marketing year shall not be less than 1,350,000 tons.
  `(2) The national poundage quota for a marketing year shall be announced
  by the Secretary not later than December 15 preceding such marketing year.
  `(l) The national poundage quota established under subsection (k) shall
  be apportioned among the States based upon the percentage of the national
  poundage quota allocated to farms in each such State for 1990.
  `(m)(1)(A) A farm poundage quota for each of the 1991 through 1995 marketing
  years shall be established--
  `(i) for each farm that had a farm poundage quota for peanuts for the 1990
  marketing year;
  `(ii) if the poundage quota apportioned to a State under subsection (l)
  for any such marketing year is larger than such 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) for institutions specified in section 358b, as approved and determined
  by the Secretary pursuant to that section.
  `(B) The farm poundage quota for each of the 1991 through 1995 marketing
  years for each farm described in subparagraph (A)(i) of the preceding
  sentence shall be the same as the farm poundage quota for such farm for
  the immediately preceding marketing year, as adjusted under paragraph (2),
  but not including--
  `(i) any increases for undermarketings from previous years; or
  `(ii) any increases resulting from the allocation of quotas voluntarily
  released for 1 year under paragraph (9).
The farm poundage quota, if any, for each of the 1991 through 1995 marketing
years for each farm described in subparagraph (A)(ii) shall be equal to the
poundage quota allocated to such farm for such year under paragraph (2)(A).
  `(C) For purposes of this paragraph, if the farm poundage quota, or any
  part thereof, is permanently transferred in accordance with section 358a,
  the receiving farm shall be considered as possessing the farm poundage
  quotas (or portion thereof) of the transferring farm for all subsequent
  marketing years.
  `(2)(A) Except as provided in paragraph (3), if the poundage quota
  apportioned to a State under subsection (l) for any of the 1991 through
  1995 marketing years is increased over the poundage quota apportioned
  to the State for the immediately preceding marketing year, such increase
  shall be allocated proportionately, based on farm production history for
  the 3 immediately preceding years, among--
  `(i) all farms in the State for 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 which peanuts were produced in at least
  2 of the 3 immediately preceding crop years, as determined by the Secretary.
  `(B) If the poundage quota apportioned to a State under subsection (l)
  for any of the 1991 through 1995 marketing years is decreased from the
  poundage quota apportioned to the State under such subsection for the
  immediately preceding marketing year, such decrease shall be allocated
  among all the farms in the State for which a farm poundage quota was
  established for such immediately preceding marketing year.
  `(3)(A) Notwithstanding the foregoing provisions of this subsection, in
  the case of the State of Texas only and subject to terms and conditions
  prescribed by the Secretary, beginning with the 1991 marketing year 33
  percent of the increased poundage quota referred to in paragraph (2)(A)
  for any year (hereafter in this section referred to as the `reserve share')
  shall be allocated according to this paragraph.
  `(B) The Secretary shall distribute the reserve share to counties in which
  the production of additional peanuts exceeded the total poundage quota
  allocated to farms in such counties for the 1989 marketing year (hereafter
  in this paragraph referred to as `eligible counties').  The amount of such
  reserve share distributed to each eligible county shall be proportional to--
  `(i)(I) the total additional peanuts produced in such eligible county for
  the 1988 crop; divided by
  `(II) the total amount of additional peanuts produced in all such eligible
  counties for the 1988 crop; multiplied by
  `(ii) the reserve share.
  `(C) In the case of eligible counties where more than 10,000 tons of poundage
  quota was allocated to all farms in the county for the 1989 marketing year,
  the total poundage quota distributed to any such county under this paragraph
  and paragraph (8) shall not increase the total poundage quota allocated to
  all farms in such county to a level of more than 100 percent of the total
  poundage quota allocated to farms in such county for the 1989 marketing
  year.  In the event the amount of total poundage quota allocated to all
  farms in any such county is increased to 100 percent of the total poundage
  quota allocated to all farms in such county for the 1989 marketing year,
  the remainder of the reserve share distributed to such county shall be
  redistributed to other eligible counties in accordance with subparagraph (B).
  `(D) The portion of reserve share distributed to each eligible county
  under this paragraph shall be allocated in accordance with subparagraph
  (E) within such county only to farms (hereafter in this paragraph referred
  to as `eligible farms')--
  `(i) having a poundage quota for the 1990 marketing year; and
  `(ii) from which additional peanuts were delivered under contract with
  handlers for the marketing year immediately preceding the marketing year
  for which the allocation is being made.
  `(E) The portion of reserve share distributed to each eligible county shall
  be allocated among eligible farms in each such county on the following basis:
  `(i) A factor shall be established for each eligible farm by dividing the
  amount of additional peanuts contracted and delivered to handlers from
  the farm by the total amount of remaining peanuts produced on such farm
  for the marketing year immediately preceding the marketing year for which
  the allocation is being made.
  `(ii) Each eligible farm shall be entitled to that proportion of the
  reserve share as its factor bears to the total of such factors for all
  eligible farms in such county.
  `(F) The remaining 67 percent of such increased poundage quota referred to
  in paragraph (2)(A) shall be allocated to farms pursuant to paragraph (2)(A).
  `(4)(A) 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 of the 1991 through 1995 marketing years 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) For the purposes of this paragraph, the farm poundage quota for any
  such preceding marketing year shall not include--
  `(i) any increases for undermarketing of quota peanuts from previous
  years; or
  `(ii) any increase resulting from the allocation of quotas voluntarily
  released for one year under paragraph (9).
  `(5) For purposes of this subsection, the farm poundage quota shall be
  considered produced on a farm for a particular marketing year 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;
  `(B) the farm poundage quota for the farm was released voluntarily under
  paragraph (9) for only 1 of the 3 immediately preceding marketing years; or
  `(C) the farm poundage quota or any portion thereof was leased to another
  owner or operator of a farm within the same county for transfer to such
  farm for only 1 of the 3 immediately preceeding years.
  `(6)(A) The farm poundage quota established for a farm under this subsection,
  or any part of such quota, may be permanently released by the owner of
  the farm, or the operator with the permission of the owner.
  `(B) The poundage quota for the farm for which such quota is released
  shall be adjusted downward to reflect the quota that is so released.
  `(7)(A) Except as provided in subparagraph (B) and paragraph (8), the
  total amount of the farm poundage quotas reduced or permanently released
  from farms in a State for any marketing year under paragraphs (4) and (6)
  shall be allocated proportionately, based on farm production history for
  the 3 immediately preceding years, to other farms in the State on which
  peanuts were produced in at least 2 of such years.
  `(B)(i) Subject to clause (ii) the Secretary shall allocate to each farm
  for which no poundage quota was established for the immediately preceding
  year's crop an amount of quota from the total amount of farm poundage
  quota reduced or permanently released in the State equal to such farm's
  average production for the 3 immediately preceeding years during which
  peanuts were produced on such farm.
  `(ii) The Secretary shall allocate under clause (i) a maximum of 25 percent
  of the total amount of farm poundage quota reduced or permanently released
  in the State to such farms and if the sum of such average production for
  such farms exceeds this maximum the Secretary shall allocate such maximum to
  such farms  in proportion to such average production for the 3 immediately
  preceeding years during which peanuts were produced on such farm.
  `(8)(A) In the case of the State of Texas only and subject to terms and
  conditions prescribed by the Secretary, beginning with the 1991 marketing
  year, the farm poundage quota reduced from farms in the State of Texas as
  provided in paragraph (4), except the percent allocated to new farms as
  provided in paragraph (7), (hereafter in this section referred to as the
  `release share'), shall be allocated according to this paragraph to other
  farms that had a peanut quota for the 1990 marketing year.
  `(B) The Secretary shall distribute the release share to counties in which
  the production of additional peanuts exceeded the total poundage quota
  allocated to farms in such counties for the 1989 marketing year (hereafter
  in this paragraph referred to as `eligible counties').  The amount of such
  release share distributed to each eligible county shall be proportional to--
  `(i)(I) the total additional peanuts produced in such eligible county for
  the 1988 crop; divided by
  `(II) the total amount of additional peanuts produced in all such eligible
  counties for the 1988 crop; multiplied by
  `(ii) the release share.
  `(C) In the case of eligible counties where more than 10,000 tons of poundage
  quota was allocated to all farms in the county for the 1989 marketing year,
  the total poundage quota distributed to any such county under this paragraph
  and paragraph (3) shall not increase the total poundage quota allocated to
  all farms in such county to a level of more than 100 percent of the total
  poundage quota allocated to farms in such county for the 1989 marketing
  year.  In the event the amount of total poundage quota allocated to all
  farms in any such county is increased to 100 percent of the total poundage
  quota allocated to all farms in such county for the 1989 marketing year,
  the remainder of the release share distributed to such county shall be
  redistributed to other eligible counties in accordance with subparagraph (B).
  `(D) The portion of release share distributed to each eligible county
  under this paragraph shall be allocated in accordance with subparagraph
  (E) within such county only to farms (hereafter in this paragraph referred
  to as `eligible farms')--
  `(i) having a poundage quota for the 1990 marketing year; and
  `(ii) from which additional peanuts were delivered under contract with
  handlers for the marketing year immediately preceding the marketing year
  for which the allocation is being made.
  `(E) The portion of release share distributed to each eligible county shall
  be allocated among eligible farms in each such county on the following basis:
  `(i) A factor shall be established for each eligible farm by dividing the
  amount of additional peanuts contracted and delivered to handlers from
  the farm by the total amount of remaining peanuts produced on such farm
  for the marketing year immediately preceding the marketing year for which
  the allocation is being made.
  `(ii) Each eligible farm shall be entitled to that proportion of the
  release share as its factor bears to the total of such factors for all
  eligible farms in such county.
  `(9)(A) 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 such 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) Any adjustment in the 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 such quota was released for any subsequent
  marketing year.
  `(10)(A) Except as provided in subparagraph (B), the poundage quota for a
  farm for any marketing year shall be increased by the number of pounds by
  which the total marketings of quota peanuts from the farm during previous
  marketing years (excluding any marketing year before the marketing year for
  the 1989 crop) were less than the total amount of applicable farm poundage
  quotas (disregarding adjustments for undermarketings from previous marketing
  years) for such marketing years.
  `(B) For purposes of subparagraph (A), no increase for undermarketings in
  previous marketing years shall be made to the poundage quota for any farm
  to the extent that the poundage quota for such farm for the marketing year
  was reduced under paragraph (4) for failure to produce.
  `(C) Any increases in farm poundage quotas under this paragraph shall not be
  counted against the national poundage quota for the marketing year involved.
  `(D) Any increase in the farm poundage quota for a farm for a marketing year
  under this paragraph may be used during the marketing year by the transfer
  of additional peanuts produced on the farm to the quota loan pool for pricing
  purposes on such basis as the Secretary shall by regulation prescribe.
  `(11) Notwithstanding the foregoing provisions of this subsection, if the
  total of all increases in individual farm poundage quotas under paragraph
  (10) exceeds 10 percent of the national poundage quota for the marketing
  year in which such increases shall be applicable, the Secretary shall
  adjust such increases so that the total of all such increases does not
  exceed 10 percent of the national poundage quota.
  `(n)(1) For each farm for which a farm poundage quota is established under
  subsection (m), and when necessary for purposes of this Act, an average
  farm yield of peanuts shall be determined for each such farm.
  `(2) Such 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) If peanuts were not produced on the farm in at least 3 years during
  such 5-year period or there was a substantial change in the operation
  of the farm during such period (including, but not limited to, 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 amount 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.
  `(o)(1) 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 such producers are in favor of or opposed to poundage quotas
  with respect to the crops of peanuts produced in the five 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) The Secretary shall proclaim the result of the referendum within 30
  days after the date on which it is held.
  `(3) 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.
  `(p) For the purposes of this part and title I of the Agricultural Act
  of 1949:
  `(1) 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 such farm for such year; and
  `(B) all peanuts marketed from a farm for which no farm poundage quota
  has been established in accordance with subsection (m).
  `(2) 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) The term `domestic edible use' means use for milling to produce domestic
  food peanuts (other than those described in paragraph (2)), seed, 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 359(c),
  are unique strains, and are not commercially available.
  `(4) The term `quota peanuts' means, for any marketing year, any peanuts
  produced on a farm having a farm poundage quota, as determined in subsection
  (m), 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 such farm for such year.'.
SEC. 803. SALE, LEASE, OR TRANSFER OF FARM POUNDAGE QUOTA.
  Effective only for the 1991 through 1995 crops of peanuts, subsections
  (i) and (j) of section 358a of the Agricultural Adjustment Act of 1938
  (7 U.S.C. 1358a) are amended to read as follows:
  `(i)(1) Subject to such terms, conditions, or limitations as the Secretary
  may prescribe, the owner, or the operator with 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 such poundage quota to any
  other owner or operator of a farm within the same county for transfer to
  such farm, except that any such lease of poundage quota may be entered
  into in the fall or after the normal planting season only--
  `(A) if not less than 90 percent of the farm quota exclusive of
  undermarketings and 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 leased; and
  `(B) 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 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.
  `(2) The owner or operator of a farm may transfer all or any part of the
  farm poundage quota for such farm to any other farm owned or controlled by
  such owner or operator that is in the same county or in a county contiguous
  to such county in the same State and that had a farm poundage quota for
  the preceding year's crop.  Any farm poundage quota transferred under this
  paragraph shall not result in any reduction in the farm poundage quota for
  the transferring farm if such transferred quota is produced or considered
  produced on the receiving farm.
  `(3) Notwithstanding paragraphs (1) and (2), in the case of any State for
  which the poundage quota opportioned 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 in one
  county to a farm in another county in the same State.
  `(j) Transfers (including transfer by sale or lease) of farm poundage quotas
  under this section shall be subject to all of the following conditions:
  `(1) 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.
  `(2) No transfer of the farm poundage quota shall be permitted if the local
  county committee established under section 8(b) of the Soil Conservation
  and Domestic Allotment Act (hereafter in this section referred to as the
  `county committee') determines that the receiving farm does not have
  adequate tillable cropland to produce the transferred farm poundage quota.
  `(3) No transfer of the farm poundage quota shall be effective until a
  record thereof is filed with the county committee of the county to which
  such transfer is made and such committee determines that the transfer
  complies with this section.
  `(4) Such other terms and conditions that the Secretary may by regulation
  prescribe.'.
SEC. 804. MARKETING PENALTIES; DISPOSITION OF ADDITIONAL PEANUTS.
  Effective only for the 1991 through 1995 crops of peanuts, subsections
  (f) through (l) of section 359 of the Agricultural Adjustment Act of 1938
  (7 U.S.C. 1359) are amended to read as follows:
  `(f)(1)(A) The marketing of any peanuts for domestic edible use in excess
  of the farm poundage quota for the farm on which such peanuts are produced
  shall be subject to penalty at a rate equal to 140 percent of the support
  price for quota peanuts on the quantity of such excess amount of peanuts
  for the marketing year in which such marketing occurs.
  `(B) For purposes of this section, the marketing year for peanuts shall
  be the 12-month period beginning August 1 and ending July 31.
  `(C) The marketing of any additional peanuts from a farm shall be subject
  to the same penalty unless such peanuts, in accordance with regulations
  established by the Secretary, are--
  `(i) placed under loan at the additional loan rate in effect for such
  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 108A(c)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445
  c-1(c)(1)); or
  `(iii) marketed under contracts between handlers and producers pursuant
  to subsection (j).
  `(2) Such 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 such agent.
  Such person or agent may deduct an amount equivalent to the penalty from
  the price paid to the producer.
  `(3) If the person required to collect the penalty fails to collect such
  penalty, such person and all persons entitled to share in the peanuts
  marketed from the farm or the proceeds thereof shall be jointly and
  severally liable for the amount of the penalty.
  `(4) Peanuts produced in a calendar year in which farm poundage quotas
  are in effect for the marketing year beginning therein shall be subject
  to such quotas even though the peanuts are marketed prior to the date on
  which such marketing year begins.
  `(5) If any producer falsely identifies or fails to certify planted acres
  or fails to account for the disposition of any peanuts produced on such
  planted acres, an amount of peanuts equal to the farm's average yield,
  as determined under section 358(n), 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) 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 to waive or reduce marketing
  penalties provided for under this subsection in cases in which such
  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) 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.
  `(g)(1) Only quota peanuts may be retained for use as seed or for other
  uses on a farm.  When so retained, quota peanuts shall be considered as
  marketings of quota peanuts, except that the Secretary may exempt from
  consideration as marketings of quota peanuts seeds of peanuts that are
  used to produce peanuts excluded under subsection (c), are unique strains,
  and are not commercially available.
  `(2) 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 (k).
  `(3) 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.
  `(h) 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, and quality of the
  quota peanuts acquired by such handler from such crop for such marketing,
  such 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.
  `(i)(1) 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 108A(c)(1) of the Agricultural Act of 1949 (7 U.S.C. 1445c-1(c)(1)).
  `(2)(A) 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 such peanuts, to comply
  with regulations that the Secretary shall issue.
  `(B) The regulations issued by the Secretary under subparagraph (A) shall
  include, but need not be limited to, the following provisions:
  `(i) 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 purchased by the handler as additional
  peanuts to which a mandated deduction with respect to the price paid to
  the producer of such peanuts is applied due to the percentage of such
  sound splits.
  `(II)  Sound mature kernel peanuts (which term includes sound split kernel
  peanuts and sound whole kernel peanuts) in an amount equal to the poundage
  of such peanuts purchased by the handler as additional peanuts less the
  total poundage of sound split kernel peanuts described in subclause (I).
  `(III)  The remaining quantity of total kernel content of peanuts purchased
  by the handler as additional peanuts.
  `(ii) 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) 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
  such 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 such year.
  `(iv)(I) 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 such allowance
  shall not be less than 4 percent, except as provided in sub-clause (II).
  `(II) The Secretary may provide a lower shrinkage allowance for a handler
  who fails to comply with restrictions on the use of peanuts, as may be
  specified by the Commodity Credit Corporation, to take into account common
  industry practices.
  `(3) A handler shall submit to the Secretary adequate financial guarantees,
  as well as evidence of adequate facilities and assets, to ensure the
  handler's compliance with the obligation to export or crush peanuts.
  `(4) 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)(A) Except as provided in subparagraph (B), the failure of 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
  equal to 140 percent of the loan level for quota peanuts on the quantity
  of peanuts involved in such failure to comply.
  `(B) A handler shall not be subject to a penalty for failure to export or
  crush additional peanuts if such peanuts were not delivered to the handler.
  `(6) If any 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 equal to 140 percent
  of the loan level for quota peanuts on the quantity of peanuts reentered.
  `(j)(1) Handlers may, under such regulations as the Secretary may issue,
  contract with producers for the purchase of additional peanuts for crushing,
  export, or both.
  `(2)(A) Any such contract shall be completed and submitted to the Secretary
  (or if designated by the Secretary, the area marketing association) for
  approval before August 1 of the year in which the crop is produced.
  `(B) Such 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 such additional peanuts,
  including the identity of the contracting parties, the poundage and
  category of the peanuts, the disclosure of any liens on such peanuts,
  and the intended disposition of the peanuts.
  `(C) 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 (i)
  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.
  `(3) 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 such peanuts for domestic edible or seed use.
  `(4)  Notwithstanding any other provision of this Act, if the President
  issues a proclamation under section 22 of the Agricultural Adjustment Act
  temporarily suspending restrictions on, or increasing any quota for, the
  importation of peanuts, the Secretary shall permit a handler, subject to
  such terms and conditions as the Secretary may prescribe, with the written
  consent of the producer, to purchase additional peanuts from any producer
  who contracted with the handler and to offer such peanuts for sale for
  domestic edible, seed or related uses.
  `(k)(1) 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 such 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)(A) 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 such additional peanuts were harvested, the
  area marketing association designated pursuant to section 108A(c)(1) of the
  Agricultural Act of 1949 (7 U.S.C. 1445c-1(c)(1)) 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
  Commodity Credit Corporation may sell its stocks of additional peanuts.
  `(B) The area marketing association and the Commodity Credit Corporation
  may agree to modify the authority granted by subparagraph (A) to facilitate
  the orderly marketing of additional peanuts.
  `(l)(1) 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 such penalty became due.
  `(2) 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 such farm do not share in the peanuts
  produced on any other farm.
  `(3) Until the amount of the penalty provided by this section is paid, a
  lien on the crop of peanuts with respect to which such 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)(A) 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) 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 such determination was made in conformity
  with the applicable law and regulations.
  `(C) All penalties imposed under this section shall for all purposes be
  considered civil penalties.
  `(5)(A) 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, reducing the penalty to zero, 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) The amount of any penalty imposed on a handler under this section
  that resulted from the failure to export contracted additional peanuts
  may not be reduced by the Secretary.'.
SEC. 805. PRICE SUPPORT PROGRAM.
  Effective only for the 1991 through 1995 crops of peanuts, section 108A
  of the Agricultural Act of 1949 (7 U.S.C. 1445c-1) is amended to read
  as follows:
`PRICE SUPPORT FOR 1991 THROUGH 1995 CROPS OF PEANUTS
  `SEC. 108A. (a)(1) The Secretary shall make price support available to
  producers through loans, purchases, and other operations on quota peanuts
  for each of the 1991 through 1995 crops.
  `(2) The national average quota support rate for each of the 1991 through
  1995 crops of quota peanuts shall be the national average quota support
  rate for the immediately preceding crop, adjusted to reflect any increase,
  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, except that in no event shall the national average quota support
  rate for any such crop exceed by more than 6 percent the national average
  quota support rate for the preceding crop.
  `(3) The levels of support so announced shall not be reduced by any
  deductions for inspection, handling, or storage.
  `(4) The Secretary may make adjustments for location of peanuts and such
  other factors as are authorized by section 403.
  `(5) 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)(1) The Secretary shall make price support available to producers
  through loans, purchases, or other operations on additional peanuts for
  each of the 1991 through 1995 crops 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 such peanuts.
  `(2) 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)(1)(A) In carrying out subsection (a) and (b), the Secretary shall
  make warehouse storage loans available in each of the three producing areas
  (described in section 1446.60 of title 7 of the Code of Federal Regulations
  (January 1, 1985)) 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 such loan activities.  The Secretary
  may not make warehouse storage loans available to any cooperative that is
  engaged in operations or activities concerning peanuts other than those
  operations and activities specified in this section and section 359 of
  the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359).
  `(B) Such area marketing associations shall be used in administrative and
  supervisory activities relating to price support and marketing activities
  under this section and section 359 of the Agricultural Adjustment Act of
  1938 (7 U.S.C. 1359).
  `(C) Loans made 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 section 359 of the Agricultural
  Adjustment Act of 1938 (7 U.S.C. 1359).
  `(2)(A) 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.  Bright hull and dark hull
  Valencia peanuts shall be considered as separate types for the purpose of
  establishing such pools.
  `(B) Net gains on peanuts in each pool, unless otherwise approved by the
  Secretary, shall be distributed only to producers who placed peanuts in the
  pool and shall be distributed in proportion to the value of the peanuts
  placed in the pool by each producer.  Net gains for peanuts in each pool
  shall consist of the following:
  `(i) For quota peanuts, the net gains over and above the loan indebtedness
  and other costs or losses incurred on peanuts placed in such 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) 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) Notwithstanding any other provision of this section:
  `(1) 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)(A) 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 under section 358(m)(10)
  of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358 (m)(10)).
  `(B) Losses in area quota pools, other than losses incurred as a result
  of transfers from additional loan pools to quota loan pools under section
  358(m)(10) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358
  (m)(10)), shall be offset by any gains or profits from pools in other
  production areas (other than separate type pools established under subsection
  (c)(2)(A) for Valencia peanuts produced in New Mexico) in such manner as
  the Secretary shall by regulation prescribe.
  `(e) 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(o) of the Agricultural Adjustment Act of 1938 (7
  U.S.C. 1358(o).'.
SEC. 806. REPORTS AND RECORDS.
  Effective only for the 1991 through 1995 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,'.
SEC. 807. 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 1991 through 1995 crops of peanuts.
SEC. 808.  EXPERIMENTAL AND RESEARCH PROGRAMS FOR PEANUTS.
  Effective only for the 1991 through 1995 crops of peanuts, the Agricultural
  Adjustment Act of 1938 is amended by inserting after section 358a the
  following:
`QUOTA FOR RESEARCH
  `SEC. 358b.  Notwithstanding any other provision of this Act, the Secretary
  may permit a portion of the poundage quota for peanuts apportioned to
  any State to be allocated from such State's quota reserve to land-grant
  institutions identified in the Act of May 8, 1914 (7 U.S.C. 341 et seq.),
  and colleges eligible to receive funds under the Act of August 30, 1890 (7
  U.S.C. 321-326 and 328), including Tuskegee Institute and, as appropriate,
  the Agricultural Research Service of the Department of Agriculture to
  be used for experimental and research purposes in an amount equal to
  that amount of quota held by each such institution during 1985 up to one
  tenth of one percent of such State's basic quota.  The responsibility
  for complying with the duties of the farm operator with respect to the
  production of such quota peanuts shall be vested in the director of the
  Agricultural Experiment Station for the State.'.
SEC. 809. CONFORMING CHANGES.
  Section 8b of the Agricultural Adjustment Act (7 U.S.C. 608b), reenacted
  with amendments by the Agricultural Marketing Agreement Act of 1937,
  is amended in subsection (b)(2) by striking `section 108B of'.
TITLE IX--WHEAT
SEC. 901. LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE
LIMITATION PROGRAM, AND LAND DIVERSION FOR THE 1991 THROUGH 1995 CROPS
OF WHEAT.
  Effective only for the 1991 through 1995 crops of wheat, section 107A of
  the Agricultural Act of 1949 (7 U.S.C. 1445b) is amended to read as follows:
`SEC. 107A. ANNUAL PROGRAM FOR 1991 THROUGH 1995 CROPS OF WHEAT.
  `(a) LOANS AND PURCHASES- (1) IN GENERAL- Except as provided in paragraphs
  (2), (3), and (4), the Secretary shall make available to producers loans and
  purchases for each of the 1991 through 1995 crops of wheat at such level
  as the Secretary determines will maintain the competitive relationship
  of wheat to other grains in domestic and export markets after taking into
  consideration the cost of producing wheat, supply and demand conditions,
  and world prices for wheat.
  `(2) MINIMUM LOAN AND PURCHASE LEVEL- (A) 1991 CROP TRANSITION RULE- From
  June 1, 1991 to September 30, 1991, the loan and purchase level for the 1991
  crop of wheat shall be not less than $1.93 per bushel.  Beginning October
  1, 1991, the Secretary shall make available to producers who pledged 1991
  crop wheat as collateral for a price support loan, or whose 1991 crop wheat
  was purchased by the Secretary, at the $1.93 level an increase in the loan
  or purchase amount such that the loan and purchase level is equal to the
  level described in subparagraph (B).
  `(B) 1991 THROUGH 1995 CROPS- Except as provided in subparagraph A and
  paragraphs (3) and (4), the loan and purchase level determined under
  paragraph (1) shall not be 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 such period, except that the loan and
  purchase level for a crop determined under this paragraph may not be reduced
  by more than 5 percent from the level determined for the preceding crop.
  `(3) ADJUSTMENTS TO SUPPORT LEVEL- (A) STOCKS TO USE  RATIO- 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--
  `(i) equal to or greater than 30 percent, the Secretary may reduce the
  loan and purchase level for wheat for the corresponding crop by an amount
  not to exceed 10 percent.
  `(ii) or less than 30 percent but not less than 15 percent, the Secretary
  may reduce the loan and purchase level for wheat for the corresponding
  crop by an amount not to exceed 5 percent.
  `(iii) less than 15 percent, the Secretary may not reduce the loan and
  purchase level for wheat for the corresponding.
  `(B)  REPORT TO CONGRESS- (i) If the Secretary adjusts the level of loans
  and purchases for wheat under subparagraph (A), the Secretary shall submit
  to the Committee on Agriculture of the House of Representatives and the
  Committee on Agriculture, Nutrition, and Forestry of the Senate a report--
  `(I) certifying such adjustment as necessary to prevent the build-up of
  stocks and to retain market share; and
  `(II) containing a description of the need for such adjustment.
  `(ii) Such adjustment shall become effective no earlier than 60 calendar
  days after the date of submission of such report to such committees.
  `(C) COMPETITIVE POSITION- Notwithstanding the provisions of subparagraph
  (A), if the Secretary determines, not later than 60 days prior to the
  beginning of a marketing year for a crop, that the effective loan rate
  established for such crop will not maintain a competitive market position
  for wheat, the Secretary may reduce the loan and purchase level for wheat
  for the marketing year by an amount, in addition to any reduction under
  subparagraph (A), not to exceed 5 percent in any year.
  `(D) NO EFFECT ON FUTURE YEARS- Any reduction in the loan and purchase level
  for wheat under this paragraph shall not be considered in determining the
  loan and purchase level for wheat for subsequent years.
  `(4) MARKETING LOAN- (A) IN GENERAL- The Secretary may permit a producer
  to repay a loan made under paragraph (1) for a crop at a level that is
  the lesser of--
  `(i) the loan level determined for such crop; or
  `(ii) the higher of--
  `(I) 70 percent of such level;
  `(II) if the loan level for a crop was reduced under paragraph (3),
  70 percent of the loan level that would have been in effect but for the
  reduction under paragraph (3); or
  `(III) the prevailing world market price for wheat, as determined by
  the Secretary.
  `(B) WORLD PRICE FORMULA- If the Secretary permits a producer to repay a
  loan in accordance with subparagraph (A), the Secretary shall prescribe
  by regulation--
  `(i) a formula to define the prevailing world market price for wheat; and
  `(ii) a mechanism by which the Secretary shall announce periodically the
  prevailing world market price for wheat.
  `(5) SIMPLE AVERAGE PRICE- For purposes of this section, the Secretary
  in determining the simple average price received by producers for the
  immediately preceding marketing year shall use the latest information
  available to the Secretary at the time of the determination.
  `(b)  PAYMENTS FOR FORGOING LOAN OR PURCHASE- (1) IN GENERAL- The
  Secretary may, for each of the 1991 through 1995 crops of wheat, make
  payments available to producers who, although eligible to obtain a loan
  or purchase agreement under subsection (a), agree to forgo obtaining such
  loan or agreement in return for such payments.
  `(2) COMPUTATION- A payment under this subsection shall be computed by
  multiplying--
  `(A) the loan payment rate; by
  `(B) the quantity of wheat the producer is eligible to place under loan.
  `(3) QUANTITY ELIGIBLE- For purposes of this subsection, the quantity of
  wheat eligible to be placed under loan may not exceed the product obtained
  by multiplying--
  `(A) the individual farm program acreage for the crop; by
  `(B) the farm program payment yield established for the farm.
  `(4) PAYMENT RATE- For purposes of this subsection, the loan payment rate
  shall be the amount by which--
  `(A) the loan level determined for such crop under subsection (a); exceeds
  `(B) the level at which a loan may be repaid under subsection (a).
  `(c) DEFICIENCY PAYMENTS- (1) IN GENERAL- (A) COMPUTATION- The Secretary
  shall make available to producers payments to be known as `deficiency
  payments' for each of the 1991 through 1995 crops of wheat in an amount
  computed by multiplying--
  `(i) the payment rate; by
  `(ii) the individual farm program acreage for the crop; by
  `(iii) the farm program payment yield for the crop for the farm.
  `(B) 0/92 PROGRAM- (i) If an acreage limitation program under subsection
  (f)(2) is in effect for a crop of wheat and the producers on a farm devote
  a portion of the permitted wheat acreage of the farm (as determined in
  accordance with subsection (f)(2)(A)) equal to more than 8 percent of
  the permitted wheat acreage of the farm for the crop to conservation uses
  (except as provided in subparagraph (G))--
  `(I) such portion of the permitted wheat acreage of the farm in excess of
  8 percent of such acreage devoted to conservation uses (except as provided
  in subparagraph (G)) shall be considered to be planted to wheat for the
  purpose of determining the individual farm program acreage in accordance
  with subsection (f)(2)(F) and for the purpose of determining the acreage
  on the farm required to be devoted to conservation uses in accordance with
  subsection (f)(2)(D); and
  `(II) the producers shall be eligible for payments under this paragraph
  on such acreage.
  `(ii) Notwithstanding any other provision of this section, any producer
  who elects to devote all or a portion of the permitted wheat acreage of
  the farm to conservation uses (or other uses as provided in subparagraph
  (G)) 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 such crop at a per-bushel rate established by
  the Secretary, except that such rate may not be established at less than
  the projected deficiency payment rate for the crop, as determined by the
  Secretary.  Such projected payment rate for the crop shall be announced by
  the Secretary prior to the period during which wheat producers may agree
  to participate in the program for such crop.
  `(iii) The Secretary shall implement this subparagraph in such a manner as to
  minimize the adverse effect on agribusiness and other agriculturally related
  economic interests within any county, State, or region.  In carrying out
  this subparagraph, the Secretary may restrict the total amount of wheat
  acreage that may be taken out of production under this subparagraph,
  taking into consideration the total amount of wheat acreage that has or
  will be removed from production under other price support, production
  adjustment, or conservation program activities.  No restrictions on the
  amount of acreage that may be taken out of production in accordance with
  this subparagraph in a crop year shall be imposed in the case of a county
  in which producers were eligible to receive disaster emergency loans
  under section 321 of the Consolidated Farm and Rural Development Act (7
  U.S.C. 1961) as a result of a disaster that occurred during such crop year.
  `(iv) The wheat crop acreage base and wheat farm program payment yield of
  the farm shall not be reduced due to the fact that such portion of the
  permitted acreage of the farm was devoted to conserving uses (except as
  provided in subparagraph (G)).
  `(v) Other than as provided in clauses (i) through (iv), payments may not
  be made under this paragraph for any crop on a greater acreage than the
  acreage actually planted to wheat.
  `(vi) Any acreage considered to be planted to wheat in accordance with
  clause (i) may not also be designated as conservation use acreage for
  the purpose of fulfilling any provisions under any acreage limitation,
  set-aside, or land diversion program requiring that the producers devote
  a specified acreage to conservation uses.
  `(C) PAYMENT RATE- The payment rate for wheat shall be the amount by which
  the established price for the crop of wheat exceeds the higher of--
  `(i) the national weighted average market price received by producers during
  the first 6 months of the marketing year for such crop, as determined by
  the Secretary; or
  `(ii) the loan level determined for such crop, prior to any adjustment
  made under subsection (a)(3) for the marketing year for such crop of wheat.
  `(D) COMPENSATION FOR SUPPORT LEVEL ADJUSTMENT- (i) Notwithstanding the
  foregoing provisions of this section, if the Secretary adjusts the level
  of loans and purchases for wheat under subsection (a)(3), the Secretary
  shall provide emergency compensation by increasing the payments for wheat
  by such amount as the Secretary determines necessary to provide the same
  total return to producers as if the adjustment in the level of loans and
  purchases had not been made.
  `(ii) In determining the payment rate, per bushel, for payments for a crop
  of wheat under this subparagraph, the Secretary shall use the national
  weighted average market price, per bushel of wheat, received by producers
  during the marketing year for such crop, as determined by the Secretary.
  `(iii) Notwithstanding any other provision of this Act the Secretary shall--
  `(I) by December 1 of the marketing year for the crop estimate the national
  weighted average market price, per bushel of wheat, received by producers
  during such marketing year;
  `(II) by December 15 of such marketing year use the estimate to make
  available to producers who have elected the payment option authorized by
  this clause not less than 75 percent of the increase in payments estimated
  to be payable with respect to such crop under this subparagraph; and
  `(III) adjust the amount of each final payment for wheat to reflect any
  difference between the amount of any estimated payment made under this
  clause and the amount of actual payment due under this subparagraph.
  `(iv) Producers shall elect the payment option authorized by clause (iii)
  at the time of entering into a contract to participate in the program
  established by this section for the crop.
  `(E)(i) MINIMUM ESTABLISHED PRICE- The established price for wheat shall
  not be less than $4 per bushel.
  (ii) ESTABLISHED PRICE INCREASE- If in any crop year the Secretary announces
  an acreage limitation program under subsection (H)(2) or a set-aside program
  under subsection (F)(3) for farms under which the percentage reduction
  or set-aside is in excess of 7.5 percent (10 percent in the case of the
  1994 and 1995 crops), then the established price for such crop shall be
  increased by an amount not less than 2.55 percent of the established price
  for such crop for each 2.5 percent incremental increase of such percentage
  reduction or set aside in excess of 7.5 percent (10 percent in the case
  of the 1994 and 1995 crops).
  `(F) REDUCTION FOR DISASTER PAYMENTS- The total quantity of wheat on which
  payments would otherwise be payable to a producer on a farm for any crop
  under this paragraph shall be reduced by the quantity on which any disaster
  payment is made to the producer for the crop under paragraph (2).
  `(G) ALTERNATIVE CROPS- The Secretary may permit, subject to such terms
  and conditions as the Secretary may prescribe, all or any part of acreage
  otherwise required to be devoted to conservation uses as a condition
  of qualifying for payments under subparagraph (B) to be devoted to
  sweet sorghum or the production of guar, sesame, safflower, sunflower,
  castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale,
  rye, commodities for which no substantial domestic production or market
  exists but that could yield industrial raw material being imported, or
  likely to be imported, into the United States, or commodities grown for
  experimental purposes (including kenaf), subject to the following sentence.
  The Secretary may permit such acreage to be devoted to such production
  only if the Secretary determines that--
  `(i) the production is not likely to increase the cost of the price support
  program and will not affect farm income adversely; and
  `(ii) the production is needed to provide an adequate supply of the
  commodity, or, in the case of commodities for which no substantial domestic
  production or market exists but that could yield industrial raw materials,
  the production is needed to encourage domestic manufacture of such raw
  material and could lead to increased industrial use of such raw material
  to the long-term benefit of United States industry.
  `(H)(i) TARGET OPTION PROGRAM- Subject to clauses (ii) and (iii), if an
  acreage limitation program under subsection (f)(2) is in effect for a crop
  of wheat and the producers on a farm devote a portion of the permitted
  wheat acreage of the farm (as determined in accordance with subsection
  (f)(2)(A)) to conservation uses, the producers shall be eligible for an
  increase of up to one percent in the established price of wheat, on the
  acreage on the farm actually planted to wheat, for each one percent of
  the permitted wheat acreage of the farm devoted to conservation uses.
  `(ii) The portion of permitted wheat acreage of the farm devoted to
  conservation uses under clause (i) shall not exceed 10 percent of the crop
  acreage base of the farm.
  `(iii) Such increase in the established price shall not result in a producer
  receiving more in payments than the maximum amount such producers would
  be eligible to receive under section 107A(c)(1)(B).
  `(iv) The wheat crop acreage base and the wheat farm program payment yield
  for the farm may not be reduced due to the fact that such portion of the
  permitted acreage of the farm was devoted to conserving uses.
  `(2) DISASTER ASSISTANCE- (A) PREVENTED PLANTING  PAYMENTS- (i) Except as
  provided in subparagraph (C), if the Secretary determines that the producers
  on a farm are prevented from planting any portion of the acreage intended
  for wheat to wheat or other nonconserving crops because of drought, flood,
  or other natural disaster, or other condition beyond the control of the
  producers, the Secretary shall make a prevented planting disaster payment
  to the producers in an amount equal to the product obtained by multiplying--
  `(I) the number of acres so affected but not to exceed the acreage planted to
  wheat for harvest (including any acreage that the producers were prevented
  from planting to wheat or other nonconserving crops in lieu of wheat
  because of drought, flood, or other natural disaster, or other condition
  beyond the control of the producers) in the immediately preceding year; by
  `(II) 75 percent of the farm program payment yield established by the
  Secretary; by
  `(III) a payment rate equal to 33 1/3  percent of the average of the
  established prices for the crop.
  `(ii) Payments made by the Secretary under this subparagraph may be made
  in the form of cash or from stocks of wheat held by the Commodity Credit
  Corporation.
  `(B) REDUCED YIELD PAYMENTS- Except as provided in subparagraph (C), if
  the Secretary determines that because of drought, flood, or other natural
  disaster, or other condition beyond the control of the producers, the total
  quantity of wheat that the producers are able to harvest on any farm is less
  than the result of multiplying 60 percent of the farm program payment yield
  established by the Secretary for such crop by the acreage planted for harvest
  for such crop, the Secretary shall make a reduced yield disaster payment
  to the producers at a rate equal to 50 percent of the established price
  for the crop for the deficiency in production below 60 percent for the crop.
  `(C) LIMITATION DUE TO CROP INSURANCE- Producers on a farm shall not be
  eligible for--
  `(i) prevented planting disaster payments under subparagraph (A), if
  prevented planting crop insurance is available to the producers under the
  Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with respect to the
  wheat acreage of the producers; or
  `(ii) reduced yield disaster payments under subparagraph (B), if reduced
  yield crop insurance is available to the producers under such Act with
  respect to the wheat acreage of the producers.
  `(D) EXCEPTION FROM LIMITATION- (i) Notwithstanding subparagraph (C),
  the Secretary may make a disaster payment to producers on a farm under
  this paragraph if the Secretary determines that--
  `(I) as the result of drought, flood, or other natural disaster, or other
  condition beyond the control of the producers, the producers on a farm have
  suffered substantial losses of production either from being prevented from
  planting wheat or other nonconserving crops or from reduced yields;
  `(II) such losses have created an economic emergency for the producers;
  `(III) crop insurance indemnity payments under the Federal Crop Insurance
  Act (7 U.S.C. 1501 et seq.) and other forms of assistance made available by
  the Federal Government to such producers for such losses are insufficient
  to alleviate such economic emergency; and
  `(IV) additional assistance must be made available to such producers to
  alleviate such economic emergency.
  `(ii) The Secretary may make such adjustments in the amount of payments
  made available under this subparagraph with respect to an individual farm
  so as to assure the equitable allotment of such payments among producers,
  taking into account other forms of Federal disaster assistance provided
  to the producers for the crop involved.
  `(d) NATIONAL PROGRAM ACREAGE- (1) IN GENERAL- (A) PROCLAMATION- Except
  for a crop with respect to which there is an acreage limitation program in
  effect under subsection (f), the Secretary shall proclaim a national program
  acreage.  The proclamation shall be made not later than June 1 of each
  calendar year for the crop harvested in the next succeeding calendar year.
  `(B) REVISION- The Secretary may revise the national program acreage first
  proclaimed for any crop year for the purpose of determining the allocation
  factor under paragraph (2) if the Secretary determines it necessary based
  on the latest information.  The Secretary shall proclaim such revised
  national program acreage as soon as such revision is made.
  `(C) AMOUNT OF ACREAGE- The national program acreage for wheat shall be
  the number of harvested acres that the Secretary determines (on the basis
  of the weighted national average of the farm program payment yields for
  the crop for which the determination is made) will produce the quantity
  (less imports) that the Secretary estimates will be utilized domestically
  and for export during the marketing year for such crop.
  `(D) ADJUSTMENT FOR CARRYOVER- If the Secretary determines that carryover
  stocks of wheat are excessive or an increase in stocks is needed to assure
  desirable carryover, the Secretary may adjust the national program acreage by
  the quantity the Secretary determines will accomplish the desired increase
  or decrease in carryover stocks.
  `(2) PROGRAM ALLOCATION FACTOR- The Secretary shall determine a program
  allocation factor for each crop of wheat, if the Secretary proclaims a
  national program acreage for such crop.  The allocation factor for wheat
  shall be determined by dividing the national program acreage for the crop
  by the number of acres that the Secretary estimates will be harvested for
  such crop, except that in no event shall the allocation factor for any
  crop of wheat be more than 100 percent nor less than 80 percent.
  `(3) FARM PROGRAM ACREAGE- (A) DETERMINATION- Except as provided in
  subsection (f)(2), the individual farm program acreage for each crop of
  wheat shall be determined by multiplying the allocation factor by the
  acreage of wheat planted for harvest on the farms for which individual
  farm program acreages are required to be determined.
  `(B) LIMITATION ON REDUCTION- The individual farm program acreage shall
  not be further reduced by application of the allocation factor if the
  producers on a farm reduce the acreage of wheat planted for harvest on the
  farm from the crop acreage base established for the farm under title V by
  at least the percentage recommended by the Secretary in the proclamation
  of the national program acreage.
  `(C) FAIR AND EQUITABLE TREATMENT- The Secretary shall provide fair and
  equitable treatment for producers on farms on which the acreage of wheat
  planted for harvest is less than the crop acreage base established for the
  farm under title V, but for which the reduction is insufficient to exempt
  the farm from the application of the allocation factor.
  `(D) ADJUSTMENT FOR EXEMPTIONS- In establishing the allocation factor
  for wheat, the Secretary may make such adjustment as the Secretary deems
  necessary to take into account the extent of exemption of farms under the
  foregoing provisions of this paragraph.
  `(e) FARM PROGRAM PAYMENT YIELDS- The farm program payment yields for
  farms for each crop of wheat shall be determined under title V.
  `(f) PROGRAMS TO REDUCE ACREAGE- (1) IN GENERAL- (A) EXCESSIVE SUPPLY-
  (i) Notwithstanding any other provision of this Act, except as provided
  in subparagraphs (B) and (C), if the Secretary determines that the total
  supply of wheat, in the absence of an acreage limitation or set-aside
  program, will be excessive taking into account the need for an adequate
  carryover to maintain reasonable and stable supplies and prices and to
  meet a national emergency, the Secretary may provide for any crop of
  wheat either an acreage limitation program as described in paragraph (2)
  or a set-aside program as described in paragraph (3).
  `(ii) In making a determination under clause (i), the Secretary shall take
  into consideration the number of acres placed in the conservation acreage
  reserve established under section 1231 of the Food Security Act of 1985
  (16 U.S.C. 3831).
  `(iii) If the Secretary elects to put either of such programs into effect
  for any crop year, the Secretary shall announce any such program not later
  than June 1 prior to the calendar year in which the crop is harvested.
  `(iv) Not later than July 31 of the year previous to the year in which
  the crop is harvested, the Secretary may make adjustments in the program
  announced under clause (iii) if the Secretary determines that there has
  been a significant change in the total supply of wheat since the program
  was first announced.
  `(B) AMOUNT OF ACREAGE LIMITATION- In the case of each of the 1991 through
  1995 crops of wheat, if the Secretary estimates for a marketing year for
  the crop that the ratio of ending stocks of wheat to total use of wheat
  for the marketing year will be--
  `(i) more than 40 percent, the Secretary shall provide for an acreage
  limitation program (as described in paragraph (2)) under which the acreage
  planted to wheat for harvest on a farm would be limited to the wheat crop
  acreage base for the farm for the crop reduced by not less than 20 percent
  nor more than 30 percent; or
  `(ii) equal to or less than 40 percent, the Secretary may provide for such
  an acreage limitation program under which the acreage planted to wheat for
  harvest on a farm would be limited to the wheat crop acreage base for the
  farm for the crop reduced by not more than 20 percent.
  `(C) CONDITION FOR ELIGIBILITY- As a condition of eligibility for loans,
  purchases, and payments for any such crop of wheat, except as provided
  in subsection (g), the producers on a farm must comply with the terms and
  conditions of the acreage limitation program and, if applicable, any land
  diversion program, as provided in paragraph (5).
  `(2) ACREAGE LIMITATION PROGRAM- (A) UNIFORM  PERCENTAGE- If a wheat acreage
  limitation program is announced under paragraph (1), such limitation shall
  be achieved by applying a uniform percentage reduction to the wheat crop
  acreage base for the crop for each wheat-producing farm.
  `(B) ENFORCEMENT- Except as provided in subsection (g), producers who
  knowingly produce wheat in excess of the permitted wheat acreage for the
  farm shall be ineligible for wheat loans, purchases, and payments with
  respect to that farm.
  `(C) WHEAT CROP ACREAGE BASE- Wheat crop acreage bases for each crop of
  wheat shall be determined under title V.
  `(D) DETERMINATION OF CONSERVATION USE ACREAGE- (i) A number of acres on the
  farm shall be devoted to conservation uses, in accordance with regulations
  issued by the Secretary.  Such number shall be determined by dividing--
  `(I) the product obtained by multiplying the number of acres required
  to be withdrawn from the production of wheat times the number of acres
  planted to such commodity; by
  `(II) the number of acres authorized to be planted to such commodity under
  the limitation established by the Secretary.
  `(ii) The number of acres so determined is hereafter in this subsection
  referred to as `reduced acreage'.
  `(E) INAPPLICABILITY OF NATIONAL PROGRAM ACREAGE- If an acreage limitation
  program is announced under paragraph (1) for a crop of wheat, subsection
  (d) shall not be applicable to such crop, including any prior announcement
  that may have been made under such subsection with respect to such crop.
  `(F) INDIVIDUAL FARM PROGRAM ACREAGE- Except as otherwise provided in
  subsections (c)(1)(B) and (c)(1)(H), the individual farm program acreage
  shall be the acreage planted on the farm to wheat for harvest within the
  permitted wheat acreage for the farm as established under this paragraph.
  `(3) SET-ASIDE PROGRAM- (A) IN GENERAL- If a set-aside program is announced
  under paragraph (1), as a condition of eligibility for loans, purchases,
  and payments for wheat authorized by this Act (except as provided in
  subsection (g)), the producers on a farm shall--
  `(i) set aside and devote to conservation uses an acreage of cropland
  equal to a specified percentage, as determined by the Secretary, of the
  acreage of wheat planted for harvest for the crop for which the set-aside
  is in effect; and
  `(ii) otherwise comply with the terms of such program.
  `(B) CONSERVATION USE REQUIRED- The set-aside acreage shall be devoted to
  conservation uses, in accordance with regulations issued by the Secretary.
  `(C) UNIFORM ACREAGE LIMITATION- If a set-aside program is established,
  the Secretary may limit the acreage planted to wheat.  Such limitation
  shall be applied on a uniform basis to all wheat-producing farms.
  `(D) ADJUSTMENTS TO SET-ASIDE- The Secretary may make such adjustments
  in individual set-aside acreages under this paragraph as the Secretary
  determines necessary--
  `(i) to correct for abnormal factors affecting production; and
  `(ii) to give due consideration to tillable acreage, crop-rotation practices,
  types of soil, soil and water conservation measures, topography, and such
  other factors as the Secretary determines necessary.
  `(4) USE OF CONSERVATION ACREAGE- (A) PROTECTION FROM WEEDS AND EROSION-
  The regulations issued by the Secretary under paragraphs (2) and (3) with
  respect to acreage required to be devoted to conservation uses shall assure
  protection of such acreage from weeds and wind and water erosion.
  `(B) PERMITTED PLANTINGS- The Secretary may permit, subject to such terms and
  conditions as the Secretary may prescribe, all or any part of such acreage to
  be devoted to sweet sorghum, or the production of guar, sesame, safflower,
  sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed,
  triticale, rye, or other commodity, if the Secretary determines that such
  production is needed to provide an adequate supply of such commodities,
  is not likely to increase the cost of the price support program, and will
  not affect farm income adversely.
  `(C) HAYING AND GRAZING- (i) Except as provided in clause (ii), haying and
  grazing of acreage designated as conservation use acreage for the purpose
  of meeting any requirements established under an acreage limitation program
  (including a program conducted under subsection (c)(1)(B) or subsection
  (c)(1)(H)), set-aside program, or land diversion program established under
  this section shall be permitted, except during any consecutive 5-month period
  that is established by the State committee established under section 8(b)
  of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b))
  for a State.  Such 5-month period shall be established during the period
  beginning April 1, and ending October 31, of a year.
  `(ii) In the case of a natural disaster, the Secretary may permit unlimited
  haying and grazing on such acreage.
  `(D) SUMMER FALLOW- In determining the quantity of land to be devoted
  to conservation uses under an acreage limitation or set-aside program
  with respect to land that has been farmed under summer fallow practices,
  as defined by the Secretary, the Secretary shall consider the effects of
  soil erosion and such other factors as the Secretary considers appropriate.
  `(5) LAND DIVERSION PROGRAM- (A) PAYMENTS- The Secretary may make land
  diversion payments to producers of wheat, whether or not an acreage
  limitation or set-aside program for wheat is in effect, if the Secretary
  determines that such land diversion payments are necessary to assist
  in adjusting the total national acreage of wheat to desirable goals.
  Such land diversion payments shall be made to producers who, to the extent
  prescribed by the Secretary, devote to approved conservation uses an acreage
  of cropland on the farm in accordance with land diversion contracts entered
  into by the Secretary with such producers.
  `(B) BIDS FOR CONTRACTS- The amounts payable to producers under land
  diversion contracts may be determined through the submission of bids for
  such contracts by producers in such manner as the Secretary may prescribe
  or through such other means as the Secretary determines appropriate.
  In determining the acceptability of contract offers, the Secretary shall
  take into consideration the extent of the diversion to be undertaken by
  the producers and the productivity of the acreage diverted.
  `(C) LIMITATION ON DIVERTED ACREAGE- The Secretary shall limit the total
  acreage to be diverted under agreements in any county  so as not to affect
  adversely the economy of the county.
  `(6) WILDLIFE USES FOR REDUCED AND DIVERTED ACREAGE- (A) IN GENERAL-
  Any reduced acreage, set-aside acreage, and additional diverted acreage
  may be devoted to wildlife food plots or wildlife habitat in conformity
  with standards established by the Secretary in consultation with wildlife
  agencies.
  `(B) WILDLIFE USE COST SHARING- The Secretary may pay an appropriate share of
  the cost of practices designed to carry out the purposes of subparagraph (A).
  `(C) CONSERVATION COST SHARING- The Secretary may also pay an appropriate
  share of the cost of approved soil and water conservation practices
  (including practices that may be effective for a number of years)
  established by the producer on reduced acreage, set-aside acreage, or
  additional diverted acreage.
  `(D) ENCOURAGEMENT OF PUBLIC ACCESS- The Secretary may provide for an
  additional payment on such acreage in an amount determined by the Secretary
  to be appropriate in relation to the benefit to the general public if the
  producer agrees to permit, without other compensation, access to all or
  such portion of the farm, as the Secretary may prescribe, by the general
  public, for hunting, trapping, fishing, and hiking, subject to applicable
  State and Federal regulations.
  `(7) PARTICIPATION AGREEMENTS- (A) IN GENERAL- An operator of a farm desiring
  to participate in the program conducted under this subsection shall execute
  an agreement with the Secretary providing for such participation not later
  than such date as the Secretary may prescribe.
  `(B) MODIFICATION OR TERMINATION- The Secretary may, by mutual agreement
  with producers on a farm, terminate or modify any such agreement if the
  Secretary determines such action necessary because of an emergency created
  by drought or other disaster or to prevent or alleviate a shortage in the
  supply of agricultural commodities.
  `(8) BUSHEL PRODUCTION TARGETS- Notwithstanding the foregoing provisions of
  this subsection, in carrying out the program conducted under this subsection,
  the Secretary may prescribe production targets for participating farms
  expressed in bushels of production so that all participating farms achieve
  the same pro rata reduction in production as prescribed by the national
  production targets.
  `(9) SPECIAL OATS PLANTINGS- (A) IN GENERAL- In any crop year that the
  Secretary determines that projected domestic production of oats will not
  fulfill the projected domestic demand for oats the Secretary, notwithstanding
  the foregoing provisions of this subsection--
  `(i) shall, subject to subparagraph (B), provide that any reduced acreage
  and set-aside acreage may be planted to oats for harvest;
  `(ii) may make program benefits (including, but not limited to, loans,
  purchases, and payments) available under the annual program for oats under
  section 105A available to producers with respect to acreage planted to
  oats under this paragraph; and
  `(iii) shall not make program benefits other than the benefits  specified
  in clause (ii) available to producers with respect to acreage planted to
  oats under this paragraph.
  `(B) LIMITATION- (i) If the Secretary estimates that oats planted to such
  acreage will result in projected domestic production of oats exceeding the
  projected domestic demand of oats, the Secretary shall limit the amount of
  such acreage that  producers may plant to oats for harvest under subparagraph
  (A) to an amount that will result in projected domestic production fulfilling
  projected domestic demand.
  `(ii) Such limitation may be achieved by applying a uniform percentage
  reduction to such acreage for each farm.
  `(g) EXCEPTIONS TO PROGRAMS TO REDUCE ACREAGE- (1) ONE-HALF ACREAGE REDUCTION
  PROGRAM- (A) IN GENERAL- The Secretary may, for each of the 1991 through
  1995 crops of wheat, make payments available to producers who meet the
  requirements of this  paragraph.
  `(B) FORM OF PAYMENT- Such payments shall be--
  `(i) made in the form of wheat owned by the Commodity Credit Corporation; and
  `(ii) subject to the availability of such wheat.
  `(C) DETERMINATION OF PAYMENT- (i) Payments under this subsection shall
  be determined in the same manner as provided in subsection (b).
  `(ii) The quantity of wheat to be made available to a producer under this
  subsection shall be equal in value to the payments so determined under
  such subsection.
  `(D) ELIGIBILITY- A producer shall be eligible to receive a payment under
  this subsection for a crop if the producer--
  `(i) agrees to forgo obtaining a loan or purchase agreement under subsection
  (a);
  `(ii) agrees to forgo receiving payments under subsection (c);
  `(iii) does not plant wheat for harvest in excess of the crop acreage base
  reduced by one-half of any acreage required to be diverted from production
  under subsection (f); and
  `(iv) otherwise complies with this section.
  `(2) ACRE-FOR-ACRE REDUCTION--(A) IN GENERAL- The Secretary may permit
  producers on a farm to plant wheat on a portion of the acreage otherwise
  required to be devoted to conservation uses under subsection (f) if the
  producers agree to a corresponding reduction, on an acre-for-acre basis,
  in the farm program acreage used to compute deficiency payments under
  subsection (c)(1)(A)(ii).
  `(B) LIMITATION- If the Secretary exercises the authority provided under
  subparagraph (A), then the Secretary shall implement this paragraph in
  such a manner that no greater outlays by the Commodity Credit Corporation
  result from its implementation.
  `(C) BASES AND YIELDS UNAFFECTED- The wheat crop acreage base and the wheat
  farm program payment yield for the farm may not be increased or reduced
  due to the fact that such portion of the conserving use acres for the farm
  was planted to wheat as authorized under this subparagraph.
  `(h) EQUITABLE RELIEF- (1) LOANS, PURCHASES, AND PAYMENTS- If the failure
  of a producer to comply fully with the terms and conditions of the program
  conducted under this section precludes the making of loans, purchases,
  and payments, the Secretary may, nevertheless, make such loans, purchases,
  and payments in such amounts as the Secretary determines are equitable in
  relation to the seriousness of the failure.  The Secretary may consider
  whether the producer made a good faith effort to comply fully with the
  terms and conditions of such program in determining whether equitable
  relief is warranted under this paragraph.
  `(2) DEADLINES AND PROGRAM REQUIREMENTS- The Secretary may authorize the
  county and State committees established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or
  modify deadlines and other program requirements in cases in which lateness
  or failure to meet such other requirements does not affect adversely the
  operation of the program.
  `(i) REGULATIONS- The Secretary may issue such regulations as the Secretary
  determines necessary to carry out this section.
  `(j) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the
  program authorized by this section through the Commodity Credit Corporation.
  `(k) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to
  assignment of payments) shall apply to payments under this section.
  `(l) EQUITABLE SHARING OF PAYMENTS- The Secretary shall provide for the
  sharing of payments made under this section for any farm among the producers
  on the farm on a fair and equitable basis.
  `(m) TENANTS AND SHARECROPPERS- The Secretary shall provide adequate
  safeguards to protect the interests of tenants and sharecroppers.
  `(n) PROHIBITIONS- (1) CROSS COMPLIANCE- (A) IN GENERAL- Compliance on
  a farm with the terms and conditions of any other commodity program, or
  compliance with crop acreage base requirements for any other commodity,
  may not be required as a condition of eligibility for loans or payments
  under this section.
  `(B) BASE INCREASES- If a producer on a farm is participating in the wheat
  program under this section, the crop acreage base for any other commodity
  for the farm may not be increased if such commodity is produced on the
  farm in a manner that is not in compliance with--
  `(i) the terms and conditions of the applicable commodity program for such
  commodity; or
  `(ii) the crop acreage base requirements of the applicable commodity
  program for such commodity.
  `(2) OFFSETTING COMPLIANCE- The Secretary may not require producers on a
  farm, as a condition of eligibility for loans, purchases, or payments under
  this section for such farm, to comply with the terms and conditions of
  the wheat program with respect to any other farm operated by such producers.'
SEC. 902. NONAPPLICABILITY OF CERTIFICATE REQUIREMENTS.
  Sections 379d, 379e, 379f, 379g, 379h, 379i, and 379j of the Agricultural
  Adjustment Act of 1938 (7 U.S.C. 1379d-1379j) (relating to marketing
  certificate requirements for processors and exporters) shall not be
  applicable to wheat processors or exporters during the period June 1,
  1991, through May 31, 1996.
SEC. 903. SUSPENSION OF LAND USE, WHEAT MARKETING ALLOCATION, AND PRODUCER
CERTIFICATE PROVISIONS.
  Sections 331, 332, 333, 334, 335, 336, 338, 339, 379b, and 379c of the
  Agricultural Adjustment Act of 1938 (7 U.S.C. 1331-1336, 1338, 1339, 1379b,
  and 1379c) shall not be applicable to the 1991 through 1995 crops of wheat.
SEC. 904. 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 1991 through 1995.
SEC. 905. NONAPPLICABILITY OF SECTION 107 OF THE AGRICULTURAL ACT OF 1949
TO THE 1991 THROUGH 1995 CROPS OF WHEAT.
  Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be
  applicable to the 1991 through 1995 crops of wheat.
TITLE X--FEED GRAINS
SEC. 1001. LOAN RATES, TARGET PRICES, DISASTER PAYMENTS, ACREAGE LIMITATION
PROGRAM, AND LAND DIVERSION FOR THE 1991 THROUGH 1995 CROPS OF FEED GRAINS.
  Effective only for the 1991 through 1995 crops of feed grains, section
  105A of the Agricultural Act of 1949 (7 U.S.C. 1444c) is amended to read
  as follows:
  `SEC. 105A. (a) LOANS AND PURCHASES- (1) IN GENERAL- Except as provided
  in paragraphs (2), (3), and (4) the Secretary shall make available to
  producers loans and purchases for each of the 1991 through 1995 crops
  of corn at such level as the Secretary determines will encourage the
  exportation of feed grains and not result in excessive total stocks of
  feed grains after taking into consideration the cost of producing corn,
  supply and demand conditions, and world prices for corn.
  `(2) MINIMUM LOAN LEVEL- Except as provided in paragraphs (3) and (4),
  the loan and purchase level determined under paragraph (1) shall not be
  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 such period, except that the loan and purchase level for a
  crop determined under this  paragraph may not be reduced by more than 5
  percent from the level determined for the preceding crop.
  `(3) ADJUSTMENTS TO SUPPORT LEVEL- (A) STOCKS TO USE RATIO-  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--
  `(i) equal to or greater than 25 percent, the Secretary may reduce the
  loan and purchase level for corn for the marketing year by an amount not
  to exceed 10 percent in any year;
  `(ii) less than 25 percent but not less than 12.5 percent, the Secretary
  may reduce the loan and purchase level for corn for the marketing year by
  an amount not to exceed 5 percent in any year;
  `(iii) less than 12.5 percent the Secretary may not reduce the loan and
  purchase level for corn for the marketing year.
  `(B) REPORT TO CONGRESS- (i) If the Secretary adjusts the level of loans
  and purchases for corn under subparagraph (A), the Secretary shall submit
  to the Committee on Agriculture of the House of Representatives and the
  Committee on Agriculture, Nutrition, and Forestry of the Senate a report--
  `(I) certifying such adjustment as necessary to prevent the build-up of
  stocks and to retain market share; and
  `(II) containing a description of the need for such adjustment.
  `(ii) Such adjustment shall become effective no earlier than 60 calendar
  days after the date of submission of such report to such committees.
  `(C) COMPETITIVE POSITION- Notwithstanding the provisions of subparagraph
  (A), if the Secretary determines, not later than 60 days prior to the
  beginning of a marketing year for a crop, that the effective loan rate
  established for such crop will not maintain a competitive market position
  for corn, the Secretary may reduce the loan and purchase level for corn
  for the marketing year by an amount, in addition to any reduction under
  subparagraph (A), not to exceed 5 percent in any year.
  `(D) NO EFFECT ON FUTURE YEARS- Any reduction in the loan and purchase
  level for corn under this paragraph shall not be considered in determining
  the loan and purchase level for corn for subsequent years.
  `(4) MARKETING LOAN- (A) IN GENERAL- The Secretary may permit a producer
  to repay a loan made under paragraphs (1) or (6) for a crop at a level
  that is the lesser of--
  `(i) the loan level determined for such crop; or
  `(ii) the higher of--
  `(I) 70 percent of such level;
  `(II) if the loan level  for a crop was reduced under paragraph (3),
  70 percent of the loan level that would have been in effect but for the
  reduction under paragraph (3); or
  `(III) the prevailing world market price for feed grains, as determined
  by the Secretary.
  `(B) WORLD PRICE FORMULA- If the Secretary permits a producer to repay a
  loan in accordance with subparagraph (A), the Secretary shall prescribe
  by regulation--
  `(i) a formula to define the prevailing world market price for feed
  grains; and
  `(ii) a mechanism by which the Secretary shall announce periodically the
  prevailing world market price for feed grains.
  `(5) SIMPLE AVERAGE PRICE- For purposes of this section, the Secretary
  in determining the simple average price received by producers for the
  immediately preceding marketing year shall use the latest information
  available to the Secretary at the time of the determination.
  `(6) LOAN LEVELS FOR OTHER FEED GRAINS- The Secretary shall make available
  to producers loans and purchases for each of the 1991 through 1995 crops of
  grain sorghum, barley, oats, and rye, respectively, at such level as the
  Secretary determines is fair and reasonable in relation to the level that
  loans and purchases are made available for corn, taking into consideration
  the feeding value of such commodity in relation to corn and other factors
  specified in section 401(b).
  `(b) PAYMENTS FOR FORGOING LOAN OR PURCHASE- (1) IN GENERAL- The Secretary
  may, for each of the 1991 through 1995 crops of corn, grain sorghum,
  barley, oats, and rye, make payments available to producers who, although
  eligible to obtain a loan or purchase agreement under subsection (a),
  agree to forgo obtaining such loan or agreement in return for such payments.
  `(2) COMPUTATION- A payment under this subsection shall be computed by
  multiplying--
  `(A) the loan payment rate; by
  `(B) the quantity of such feed grains the producer is eligible to place
  under loan.
  `(3) QUANTITY ELIGIBLE- For purposes of this subsection, the quantity of
  feed grains eligible to be placed under loan may not exceed the product
  obtained by multiplying--
  `(A) the individual farm program acreage for the crop; by
  `(B) the farm program payment yield established for the farm.
  `(4) PAYMENT RATE- For purposes of this subsection, the loan payment rate
  shall be the amount by which--
  `(A) the loan level determined for such crop under subsection (a); exceeds
  `(B) the level at which a loan may be repaid under subsection (a).
  `(c) DEFICIENCY PAYMENTS- (1) IN GENERAL- (A) COMPUTATION- The Secretary
  shall make available to producers payments (to be known as `deficiency
  payments') for each of the 1991 through 1995 crops of corn, grain sorghum,
  oats, and barley in an amount computed by multiplying--
  `(i) the payment rate; by
  `(ii) the individual farm program acreage for the crop; by
  `(iii) the farm program payment yield for the crop for the farm.
  `(B) 0/92 PROGRAM- (i) If an acreage limitation program under subsection
  (f)(2) is in effect for a crop of feed grains and the producers on a
  farm devote a portion of the permitted feed grain acreage of the farm (as
  determined in accordance with subsection (f)(2)(A)) equal to more than 8
  percent of the permitted feed grain acreage of the farm for the crop to
  conservation uses (except as provided in subparagraph (H))--
  `(I) such portion of the permitted feed grain acreage of the farm in
  excess of 8 percent of such acreage devoted to conservation uses (except
  as provided in subparagraph (H)) shall be considered to be planted to feed
  grains for the purpose of determining the individual farm program acreage
  in accordance with subsection (f)(2)(G) and for the purpose of determining
  the acreage on the farm required to be devoted to conservation uses in
  accordance with subsection (f)(2)(E); and
  `(II) the producers shall be eligible for payments under this paragraph
  on such acreage.
  `(ii) Notwithstanding any other provision of this section, any producer who
  elects to devote all or a portion of the permitted feed grain acreage of the
  farm to conservation uses (or other uses as provided in subparagraph (H))
  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 such crop at a per-bushel rate established by
  the Secretary, except that such rate may not be established at less than
  the projected deficiency payment rate for the crop, as determined by the
  Secretary.  Such projected payment rate for the crop shall be announced
  by the Secretary prior to the period during which feed grain producers
  may agree to participate in the program for such crop.
  `(iii) The Secretary shall implement this subparagraph in such a manner
  as to minimize the adverse effect on agribusiness and other agriculturally
  related economic interests within any county, State, or region.  In carrying
  out this subparagraph, the Secretary may restrict the total amount of feed
  grain acreage that may be taken out of production under this subparagraph,
  taking into consideration the total amount of feed grain acreage that has
  or will be removed from production under other price support, production
  adjustment, or conservation program activities.  No restrictions on the
  amount of acreage that may be taken out of production in accordance with
  this subparagraph in a crop year shall be imposed in the case of a county
  in which producers were eligible to receive disaster emergency loans
  under section 321 of the Consolidated Farm and Rural Development Act (7
  U.S.C. 1961) as a result of a disaster that occurred during such crop year.
  `(iv) The feed grain crop acreage base and feed grain program payment yield
  of the farm shall not be reduced due to the fact that such portion of the
  permitted acreage of the farm was devoted to conserving uses (except as
  provided in subparagraph (H)).
  `(v) Other than as provided in clauses (i) through (iv), payments may not
  be made under this paragraph for any crop on a greater acreage than the
  acreage actually planted to feed grains.
  `(vi) Any acreage considered to be planted to feed grains in accordance
  with clause (i) may not also be designated as conservation use acreage
  for the purpose of fulfilling any provisions under any acreage limitation,
  set-aside, or land diversion program requiring that the producers devote
  a specified acreage to conservation uses.
  `(C) PAYMENT RATE- The payment rate for each crop of feed grains shall
  be the amount by which the established price for such crop of feed grains
  exceeds the higher of--
  `(i) the national weighted average market price received by producers during
  the first 6 months of the marketing year for such crop, as determined by
  the Secretary; or
  `(ii) the loan level determined for such crop, prior to any adjustment
  made under subsection (a)(3) for the marketing year for such crop.
  `(D) COMPENSATION FOR SUPPORT LEVEL ADJUSTMENT- (i) Notwithstanding the
  foregoing provisions of this section, if the Secretary adjusts the level of
  loans and purchases for feed grains under subsection (a)(3), the Secretary
  shall provide emergency compensation by increasing the deficiency payments
  for feed grains by such amount as the Secretary determines necessary to
  provide the same total return to producers as if the adjustment in the
  level of loans and purchases had not been made.
  `(ii) In determining the payment rate, per bushel, for deficiency payments
  for a crop of feed grains under this subparagraph, the Secretary shall
  use the national weighted average market price, per bushel of such crop of
  feed grains, received by producers during the marketing year for such crop,
  as determined by the Secretary.
  `(E) ESTABLISHED FOR CORN-
  `(i) MINIMUM PRICE- The established price for corn shall not be less than
  $2.75 per bushel.
  `(ii) ESTABLISHED PRICE INCREASE FOR FEED GRAINS- If in any crop year the
  Secretary announces an acreage limitation program under subsection (f)(2)
  or a set-aside program under subsection (f)(3) for farms under which the
  percentage reduction or set aside for a crop of feedgrains is in excess
  of 15 percent, then the established price for such crop shall be increased
  by an amount not less than 2.55 percent of the established price for such
  crop for each 2.5 percent incremental increase of such percentage reduction
  or set-aside in excess of 15 percent.
  `(F) ESTABLISHED PRICE FOR OTHER FEED GRAINS- (i) The established price
  for grain sorghum shall be such price as the Secretary determines is fair
  and reasonable in relation to the established price for corn.
  `(ii) The established price for oats shall be such price as the Secretary
  determines is fair and reasonable in relation to the established price
  for corn, but not less than $1.45 per bushel.
  `(iii) The established price for barley shall be such price  as the Secretary
  determines is fair and reasonable in relation to the established price for
  corn, taking into consideration the various feed and food uses for barley,
  and provided that the ratio of such established price for barley shall
  not be less than 85.8 percent of the established price for corn.
  `(G) REDUCTION FOR DISASTER PAYMENTS- The total quantity on which payments
  would otherwise be payable to a producer on a farm for any crop under this
  paragraph shall be reduced by the quantity on which any disaster payment
  is made to the producer for the crop under paragraph (2).
  `(H) ALTERNATIVE CROPS- The Secretary may permit, subject to such terms
  and conditions as the Secretary may prescribe, all or any part of acreage
  otherwise required to be devoted to conservation uses as a condition
  of qualifying for payments under subparagraph (B) to be devoted to
  sweet sorghum or the production of guar, sesame, safflower, sunflower,
  castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale,
  rye, commodities for which no substantial domestic production or market
  exists but that could yield industrial raw material being imported, or
  likely to be imported, into the United States, or commodities grown for
  experimental purposes (including kenaf), subject to the following sentence.
  The Secretary may permit such acreage to be devoted to such production
  only if the Secretary determines that--
  `(i) the production is not likely to increase the cost of the price support
  program and will not affect farm income adversely; and
  `(ii) the production is needed to provide an adequate supply of the
  commodity, or, in the case of commodities for which no substantial domestic
  production or market exists but that could yield industrial raw materials,
  the production is needed to encourage domestic manufacture of such raw
  material and could lead to increased industrial use of such raw material
  to the long-term benefit of United States industry.
  `(I)(i) TARGET OPTION PROGRAM- Subject to clauses (ii) and (iii), if an
  acreage limitation program under subsection (f)(2) is in effect for a
  crop of feed grains and the producers on a farm devote a portion of the
  permitted feed grain acreage of the farm (as determined in accordance
  with subsection (f)(2)(A)) to conservation uses, the producers shall be
  eligible for an increase of up to one percent in the established price of
  the crop of feed grains, on the acreage on the farm actually planted to
  feed grains, for each one percent of the permitted feed grain acreage of
  the farm devoted to conservation uses.
  `(ii) The portion of permitted feed grain acreage of the farm devoted to
  conservation uses under clause (i) shall not exceed 10 percent of the crop
  acreage base of the farm.
  `(iii) Such increase in the established price shall not result in a producer
  receiving more in payments than the maximum amount such producer would be
  eligible to receive under section 105A(C)(1)(B).
  `(iv) The feed grain crop acreage base and the feed grain farm program
  payment yield for the farm may not be reduced due to the fact that such
  portion of the permitted acreage of the farm was devoted to conserving uses.
  `(J)(i) BARLEY CALCULATIONS- The Secretary shall, for purposes of determining
  the payment rate for barley under subparagraphs (C)(i) and (D)(ii), use
  the national weighted average market price received by producers of barley
  sold primarily for feed purposes.
  `(ii)(I) In the case of the 1991 crop of barley, the Secretary shall, for
  purposes of determining any advance deficiency payment made to the producers
  of barley under section 107C, use the national weighted average market
  price received by producers for all barley, as determined by the Secretary.
  `(II) In implementing this subsection, the Secretary shall ensure that
  producers of the 1991 crop of barley, notwithstanding the method of
  calculation or the amount of the advance deficiency payment, shall be
  equal to receive the total amount of payments as calculated under clause (i).
  `(2) DISASTER ASSISTANCE- (A) PREVENTED PLANTING PAYMENTS- (i) Except as
  provided in subparagraph (C), if the Secretary determines that the producers
  on a farm are prevented from planting any portion of the acreage intended for
  feed grains to feed grains or other nonconserving crops because of drought,
  flood, or other natural disaster, or other condition beyond the control of
  the producers, the Secretary shall make a prevented planting disaster payment
  to the producers in an amount equal to the product obtained by multiplying--
  `(I) the number of acres so affected but not to exceed the acreage planted
  to feed grains for harvest (including any acreage that the producers were
  prevented from planting to feed grains or other nonconserving crops in
  lieu of feed grains because of drought, flood, or other natural disaster,
  or other condition beyond the control of the producers) in the immediately
  preceding year; by
  `(II) 75 percent of the farm program payment yield established by the
  Secretary; by
  `(III) a payment rate equal to 33 1/3  percent of the established price
  for the crop.
  `(ii) Payments made by the Secretary under this subparagraph may be made
  in the form of cash or from stocks of feed grains held by the Commodity
  Credit Corporation.
  `(B) REDUCED YIELD PAYMENTS- Except as provided in subparagraph (C), if
  the Secretary determines that because of drought, flood, or other natural
  disaster, or other condition beyond the control of the producers, the total
  quantity of feed grains that the producers are able to harvest on any farm
  is less than the result of multiplying 60 percent of the farm program
  payment yield established by the Secretary for such crop by the acreage
  planted for harvest for such crop, the Secretary shall make a reduced
  yield disaster payment to the producers at a rate equal to 50 percent of
  the established price for the crop for the deficiency in production below
  60 percent for the crop.
  `(C) LIMITATION DUE TO CROP INSURANCE- Producers on a farm shall not be
  eligible for--
  `(i) prevented planting disaster payments under subparagraph (A), if
  prevented planting crop insurance is available to the producers under the
  Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with respect to the
  feed grain acreage of the producers; or
  `(ii) reduced yield disaster payments under subparagraph (B), if reduced
  yield crop insurance is available to the producers under such Act with
  respect to the feed grain acreage of the producers.
  `(D) EXCEPTION FROM LIMITATION- (i) Notwithstanding subparagraph (C),
  the Secretary may make a disaster payment to the producers on a farm under
  this paragraph if the Secretary determines that--
  `(I) as the result of drought, flood, or other natural disaster, or other
  condition beyond the control of the producers, the producers on a farm have
  suffered substantial losses of production either from being prevented from
  planting feed grains or other nonconserving crops or from reduced yields;
  `(II) such losses have created an economic emergency for the producers;
  `(III) crop insurance indemnity payments under the Federal Crop Insurance
  Act (7 U.S.C. 1501 et seq.) and other forms of assistance made available by
  the Federal Government to such producers for such losses are insufficient
  to alleviate such economic emergency; and
  `(IV) additional assistance must be made available to such producers to
  alleviate such economic emergency.
  `(ii) The Secretary may make such adjustments in the amount of payments
  made available under this subparagraph with respect to an individual farm
  so as to assure the equitable allotment of such payments among producers,
  taking into account other forms of Federal disaster assistance provided
  to the producers for the crop involved.
  `(d) NATIONAL PROGRAM ACREAGE- (1) IN GENERAL- (A) PROCLAMATION- Except
  for a crop with respect to which there is an acreage limitation program
  in effect under subsection (f), the Secretary shall proclaim a national
  program acreage for each of the 1991 through 1995 crops of feed grains.
  The proclamation shall be made not later than September 30 of each calendar
  year for the crop harvested in the next succeeding calendar year.
  `(B) REVISION- The Secretary may revise the national program acreage first
  proclaimed for any crop year for the purpose of determining the allocation
  factor under paragraph (2) if the Secretary determines it necessary based
  on the latest information.  The Secretary shall proclaim such revised
  national program acreage as soon as such revision is made.
  `(C) AMOUNT OF ACREAGE- The national program acreage for feed grains shall
  be the number of harvested acres that the Secretary determines (on the
  basis of the weighted national average of the farm program payment yields
  for the crop for which the determination is made) will produce the quantity
  (less imports) that the Secretary estimates will be utilized domestically
  and for export during the marketing year for such crop.
  `(D) ADJUSTMENT FOR CARRYOVER- If the Secretary determines that carryover
  stocks of feed grains are excessive or an increase in stocks is needed
  to assure desirable carryover, the Secretary may adjust the national
  program acreage by the quantity the Secretary determines will accomplish
  the desired increase or decrease in carryover stocks.
  `(E) INAPPLICABILITY TO OATS- This subsection shall not apply to the 1991
  through 1995 crop of oats.
  `(2) PROGRAM ALLOCATION FACTOR- The Secretary shall determine a program
  allocation factor for each crop of feed grains, if the Secretary proclaims
  a national program acreage for such crop.  The allocation factor for feed
  grains shall be determined by dividing the national program acreage for the
  crop by the number of acres that the Secretary estimates will be harvested
  for such crop, except that in no event shall the allocation factor for
  any crop of feed grains be more than 100 percent nor less than 80 percent.
  `(3) FARM PROGRAM ACREAGE- (A) DETERMINATION- Except as provided in
  subsection (f)(2), the individual farm program acreage for each crop of
  feed grains shall be determined by multiplying the allocation factor by
  the acreage of feed grains planted for harvest on the farms for which
  individual farm program acreages are required to be determined.
  `(B) LIMITATION ON REDUCTION- The individual farm program acreage shall
  not be further reduced by application of the allocation factor if the
  producers reduce the acreage of feed grains planted for harvest on the
  farm from the crop acreage base established for the farm under title V by
  at least the percentage recommended by the Secretary in the proclamation
  of the national program acreage.
  `(C) FAIR AND EQUITABLE TREATMENT- The Secretary shall provide fair and
  equitable treatment for producers on farms on which the acreage of feed
  grains planted for harvest is less than the crop acreage base established
  for the farm under title V, but for which the reduction is insufficient
  to exempt the farm from the application of the allocation factor.
  `(D) ADJUSTMENT FOR EXEMPTIONS- In establishing the allocation factor for
  feed grains, the Secretary may make such adjustment as the Secretary deems
  necessary to take into account the extent of exemption of farms under the
  foregoing provisions of this paragraph.
  `(e) FARM PROGRAM PAYMENT YIELDS- The farm program payment yields for
  farms for each crop of feed grains shall be determined under title V.
  `(f) PROGRAMS TO REDUCE ACREAGE- (1) IN GENERAL- (A) EXCESSIVE SUPPLY-
  (i) Notwithstanding any other provision of this Act, except as provided
  in subparagraphs (B) through (D), if the Secretary determines that the
  total supply of feed grains, in the absence of an acreage limitation or
  set-aside program, will be excessive taking into account the need for an
  adequate carryover to maintain reasonable and stable supplies and prices
  and to meet a national emergency, the Secretary may provide for any crop of
  feed grains either an acreage limitation program as described in paragraph
  (2) or a set-aside program as described in paragraph (3).
  `(ii) In making a determination under clause (i), the Secretary shall take
  into consideration the number of acres placed in the conservation acreage
  reserve established under section 1231 of the Food Security Act of 1985
  (16 U.S.C. 3831).
  `(iii) If the Secretary elects to put either of such programs into effect
  for any crop year, the Secretary shall announce any such program not later
  than September 30 prior to the calendar year in which the crop is harvested.
  `(iv) Not later than November 15 of the year previous to the year in which
  the crop is harvested, the Secretary may make adjustments in an announcement
  made under clause (iii) if the Secretary determines that there has been
  a significant change in the total supply of feed grains since the program
  was first announced.
  `(B) AMOUNT OF ACREAGE REDUCTION- In the case of each of the 1991 through
  1995 crops of feed grains, if the Secretary estimates for a marketing year
  for the crop that the ratio of ending stocks of corn to total use of corn
  for the preceding marketing year will be--
  `(i) more than 25 percent, the Secretary shall provide for an acreage
  limitation program (as described in paragraph (2)) under which the acreage
  planted to feed grains for harvest on a farm would be limited to the feed
  grain crop acreage base for the farm for the crop reduced by not less than
  12.5 percent nor more than 20 percent; or
  `(ii) 25 percent or less, the Secretary may provide for an acreage limitation
  program (as described in paragraph (2)) under which the acreage planted to
  feed grains for harvest on a farm would be limited to the feed grain crop
  acreage base for the farm for the crop reduced by not more than 12.5 percent.
  `(C) CONDITION FOR ELIGIBILITY FOR FEED GRAINS- As a condition of eligibility
  for loans, purchases, and payments for any such crop of feed grains, except
  as provided in subsection (g), the producers on a farm must comply with the
  terms and conditions of the acreage limitation program and, if applicable,
  the land diversion program, as provided in paragraph (5).
  `(D) CONDITION FOR ELIGIBILITY FOR OATS- Except as provided in paragraph
  (9), as a condition of eligibility for loans, purchases, and payments for
  the 1991 through 1995 crop of oats, the producers of oats on a farm may
  not plant oats in excess of the crop acreage base for the farm.
  `(2) ACREAGE LIMITATION PROGRAM- (A) UNIFORM PERCENTAGE- If a feed grain
  acreage limitation program is announced under paragraph (1), such limitation
  shall be achieved by applying a uniform percentage reduction to the feed
  grain crop acreage base for the crop for each feed grain-producing farm.
  `(B) ENFORCEMENT- Except as provided in subsection (g), producers who
  knowingly produce feed grains in excess of the permitted feed grain
  acreage for the farm shall be ineligible for feed grain loans, purchases,
  and payments with respect to that farm.
  `(C) EXCEPTION FOR MALTING BARLEY- The Secretary may provide that no producer
  of malting barley shall be required as a condition of eligibility for feed
  grain loans, purchases, and payments to comply with any acreage limitation
  under this paragraph if such producer has previously produced a malting
  variety of barley for harvest, plants barley only of an acceptable malting
  variety for harvest, and meets such other conditions as the Secretary
  may prescribe.
  `(D) FEED GRAIN CROP ACREAGE BASE- Feed grain crop acreage bases for each
  crop of feed grains shall be determined under title V.
  `(E) DETERMINATION OF CONSERVATION USE ACREAGE- (i) A number of acres on the
  farm shall be devoted to conservation uses, in accordance with regulations
  issued by the Secretary.  Such number shall be determined by dividing--
  `(I) the product obtained by multiplying the number of acres required to
  be withdrawn from the production of feed grains times the number of acres
  planted to such commodity; by
  `(II) the number of acres authorized to be planted to such commodity under
  the limitation established by the Secretary.
  `(ii) The number of acres so determined is hereafter in this subsection
  referred to as 'reduced acreage'.
  `(F) INAPPLICABILITY OF NATIONAL PROGRAM ACREAGE- If an acreage limitation
  program is announced under paragraph (1) for a crop of feed grains,
  subsection (d) shall not be applicable to such crop, including any prior
  announcement that may have been made under such subsection with respect
  to such crop.
  `(G) INDIVIDUAL FARM PROGRAM ACREAGE- Except as otherwise provided in
  subsection (c)(1)(B) and (c)(1)(I), the individual farm program acreage
  shall be the acreage planted on the farm to feed grains for harvest within
  the permitted feed grain acreage for the farm as established under this
  paragraph.
  `(H) LIMITATION ON OATS ACREAGE REDUCTION- In the case of the 1991 through
  1995 crops of oats, the Secretary--
  `(i) shall not establish a percentage reduction in accordance with paragraph
  (1) in excess of 5 percent, unless the Secretary determines that the supply
  of oats will be excessive without a greater percentage reduction than 5
  percent; and
  `(ii) may establish a percentage reduction for oats in accordance with
  paragraph (1) of less than 5 percent.  If the Secretary does not establish
  a percentage reduction requirement for oats, the Secretary shall ensure
  that the crop acreage bases established for the farm and the farm acreage
  base are not increased as a result of this clause.
  `(3) SET-ASIDE REQUIRED- (A) IN GENERAL- If a set-aside program is announced
  under paragraph (1), as a condition of eligibility for loans, purchases,
  and payments for feed grains authorized by this Act (except as provided
  in subsection (g)), the producers on a farm shall--
  `(i) set aside and devote to conservation uses an acreage of cropland equal
  to a specified percentage, as determined by the Secretary, of the acreage
  of feed grains planted for harvest for the crop for which the set-aside
  is in effect; and
  `(ii) otherwise comply with the terms of such program.
  `(B) CONSERVATION USE REQUIRED- The set-aside acreage shall be devoted to
  conservation uses, in accordance with regulations issued by the Secretary.
  `(C) UNIFORM ACREAGE LIMITATION- If a set-aside program is established,
  the Secretary may limit the acreage planted to feed grains.  Such limitation
  shall be applied on a uniform basis to all feed grain-producing farms.
  `(D) ADJUSTMENTS TO SET-ASIDE- The Secretary may make such adjustments
  in individual set-aside acreages under this section as the Secretary
  determines necessary--
  `(i) to correct for abnormal factors affecting production; and
  `(ii) to give due consideration to tillable acreage, crop-rotation practices,
  types of soil, soil and water conservation measures, topography, and such
  other factors as the Secretary determines necessary.
  `(4) USE OF CONSERVATION ACREAGE- (A) PROTECTION FROM WEEDS AND EROSION-
  The regulations issued by the Secretary under paragraphs (2) and (3) with
  respect to acreage required to be devoted to conservation uses shall assure
  protection of such acreage from weeds and wind and water erosion.
  `(B) PERMITTED PLANTINGS- The Secretary may permit, subject to such terms and
  conditions as the Secretary may prescribe, all or any part of such acreage to
  be devoted to sweet sorghum, or the production of guar, sesame, safflower,
  sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed,
  triticale, rye, or other commodities, if the Secretary determines that such
  production is needed to provide an adequate supply of such commodities,
  is not likely to increase the cost of the price support program, and will
  not affect farm income adversely.
  `(C) HAYING AND GRAZING- (i) Except as provided in clause (ii), haying and
  grazing of acreage designated as conservation use acreage for the purpose
  of meeting any requirements established under an acreage limitation program
  (including a program conducted under subsection (c)(1)(B) or subsection
  (c)(1)(I)), set-aside program, or land diversion program established under
  this section shall be permitted, except during any consecutive 5-month period
  that is established by the State committee established under section 8(b)
  of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b))
  for a State.  Such 5-month period shall be established during the period
  beginning April 1, and ending October 31, of a year.
  `(ii) In the case of a natural disaster, the Secretary may permit unlimited
  haying and grazing on such acreage.
  `(D) SUMMER FALLOW- In determining the quantity of land to be devoted
  to conservation uses under an acreage limitation or set-aside program
  with respect to land that has been farmed under summer fallow practices,
  as defined by the Secretary, the Secretary shall consider the effects of
  soil erosion and such other factors as the Secretary considers appropriate.
  `(5) LAND DIVERSION PROGRAM- (A) PAYMENTS- The Secretary may make land
  diversion payments to producers of feed grains, whether or not an acreage
  limitation or set-aside program for feed grains is in effect, if the
  Secretary determines that such land diversion payments are necessary to
  assist in adjusting the total national acreage of feed grains to desirable
  goals.  Such land diversion payments shall be made to producers who, to
  the extent prescribed by the Secretary, devote to approved conservation
  uses an acreage of cropland on the farm in accordance with land diversion
  contracts entered into by the Secretary with such producers.
  `(B) BIDS FOR CONTRACTS- The amounts payable to producers under land
  diversion contracts may be determined through the submission of bids
  for such contracts by producers in such manner as the Secretary may
  prescribe or such other means as the Secretary determines appropriate.
  In determining the acceptability of contract offers, the Secretary shall
  take into consideration the extent of the diversion to be undertaken by
  the producers and the productivity of the acreage diverted.
  `(C) LIMITATION ON DIVERTED ACREAGE- The Secretary shall limit the total
  acreage to be diverted under agreements in any county or local community
  so as not to affect adversely the economy of the county or local community.
  `(6) WILDLIFE USES FOR REDUCED AND DIVERTED ACREAGE- (A) IN GENERAL-
  Any reduced acreage, set-aside acreage, and additional diverted acreage
  may be devoted to wildlife food plots or wildlife habitat in conformity
  with standards established by the Secretary in consultation with wildlife
  agencies.
  `(B) WILDLIFE USE COST SHARING- The Secretary may pay an appropriate share of
  the cost of practices designed to carry out the purposes of subparagraph (A).
  `(C) CONSERVATION COST SHARING- The Secretary may also pay an appropriate
  share of the cost of approved soil and water conservation practices
  (including practices that may be effective for a number of years)
  established by the producer on reduced acreage, set-aside acreage, or
  additional diverted acreage.
  `(D) ENCOURAGEMENT OF PUBLIC ACCESS- The Secretary may provide for an
  additional payment on such acreage in an amount determined by the Secretary
  to be appropriate in relation to the benefit to the general public if the
  producer agrees to permit, without other compensation, access to all or
  such portion of the farm, as the Secretary may prescribe, by the general
  public, for hunting, trapping, fishing, and hiking, subject to applicable
  State and Federal regulations.
  `(7) PARTICIPATION AGREEMENTS- (A) IN GENERAL- An operator of a farm desiring
  to participate in the program conducted under this subsection shall execute
  an agreement with the Secretary providing for such participation not later
  than such date as the Secretary may prescribe.
  `(B) MODIFICATION OR TERMINATION- The Secretary may, by mutual agreement
  with producers on a farm, terminate or modify any such agreement if the
  Secretary determines such action necessary because of an emergency created
  by drought or other disaster or to prevent or alleviate a shortage in the
  supply of agricultural commodities.
  `(8) BUSHEL PRODUCTION TARGETS- Notwithstanding the foregoing provisions of
  this subsection, in carrying out the program conducted under this subsection,
  the Secretary may prescribe production targets for participating farms
  expressed in bushels of production so that all participating farms achieve
  the same pro rata reduction in production as prescribed by the national
  production targets.
  `(9)(A) In any crop year that the Secretary determines that projected
  domestic production of oats will not fulfill the projected domestic demand
  for oats the Secretary, notwithstanding the foregoing provisions of this
  subsection--
  `(i) shall, subject to subparagraph (B), provide that any reduced acreage
  and set-aside acreage may be planted to oats for harvest;
  `(ii) may make program benefits (including, but not limited to, loans,
  purchases, and payments) available under the annual program for oats under
  this title available to producers with respect to acreage planted to oats
  under this paragraph; and
  `(iii) shall not make program benefits other than the benefits  specified
  in clause (ii) available to producers with respect to acreage planted to
  oats under this paragraph.
  `(B) LIMITATION- (i) If the Secretary estimates that oats planted to such
  acreage will result in projected domestic production of oats exceeding the
  projected domestic demand of oats, the Secretary shall limit the amount of
  such acreage that  producers may plant to oats for harvest under subparagraph
  (A) to an amount that will result in projected domestic production fulfilling
  projected domestic demand.
  `(ii) Such limitation may be achieved by applying a uniform percentage
  reduction to such acreage for each farm.
  `(g) EXCEPTIONS TO PROGRAMS TO REDUCE ACREAGE- (1) ONE-HALF ACREAGE
  REDUCTION PROGRAM- (A) IN GENERAL- The Secretary may, for each of the 1991
  through 1995 crops of corn, grain sorghum, oats, and barley, make payments
  available to producers who meet the requirements of this paragraph.
  `(B) FORM OF PAYMENT- Such payments shall be--
  `(i) made in the form of such feed grains, respectively, owned by the
  Commodity Credit Corporation; and
  `(ii) subject to the availability of such feed grains.
  `(C) DETERMINATION OF PAYMENT- (i) Payments under this subsection shall
  be determined in the same manner as provided in subsection (b).
  `(ii) The quantity of feed grains to be made available to a producer under
  this subsection shall be equal in value to the payments so determined
  under such subsection.
  `(D) ELIGIBILITY- A producer shall be eligible to receive a payment under
  this subsection for a crop if the producer--
  `(i) agrees to forgo obtaining a loan or purchase agreement under subsection
  (a);
  `(ii) agrees to forgo receiving payments under subsection (c);
  `(iii) does not plant feed grains for harvest in excess of the crop
  acreage base reduced by one-half of any acreage required to be diverted
  from production under subsection (f); and
  `(iv) otherwise complies with this section.
  `(2) ACRE-FOR-ACRE REDUCTION- (A) IN GENERAL- The Secretary may permit
  producers on a farm to plant feed grains on a portion of the acreage
  otherwise required to be devoted to conservation uses under subsection (f)
  if the producers agree to a corresponding reduction, on an acre-for-acre
  basis, in the farm program acreage used to compute deficiency payments
  under subsection (c)(1)(A)(ii).
  `(B) LIMITATION- If the Secretary exercises the authority provided under
  subparagraph (A), then the Secretary shall implement this paragraph in
  such a manner that no greater outlays by the Commodity Credit Corporation
  result from its implementation.
  `(C) BASES AND YIELDS UNAFFECTED- The feed grain crop acreage base and the
  feed grain farm program payment yield for the farm may not be increased or
  reduced due to the fact that such portion of the conserving use acres for
  the farm was planted to feed grains as authorized under this subparagraph.
  `(h) EQUITABLE RELIEF- (1) LOANS, PURCHASES, AND PAYMENTS- If the failure
  of a producer to comply fully with the terms and conditions of the program
  conducted under this section precludes the making of loans, purchases,
  and payments, the Secretary may, nevertheless, make such loans, purchases,
  and payments in such amounts as the Secretary determines are equitable in
  relation to the seriousness of the failure.  The Secretary may consider
  whether the producer made a good faith effort to comply fully with the
  terms and conditions of such program in determining whether equitable
  relief is warranted under this paragraph.
  `(2) DEADLINES AND PROGRAM REQUIREMENTS- The Secretary may authorize the
  county and State committees established under section 8(b) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or
  modify deadlines and other program requirements in cases in which lateness
  or failure to meet such other requirements does not affect adversely the
  operation of the program.
  `(i) REGULATIONS- The Secretary may issue such regulations as the Secretary
  determines necessary to carry out this section.
  `(j) COMMODITY CREDIT CORPORATION- The Secretary shall carry out the
  program authorized by this section through the Commodity Credit Corporation.
  `(k) ASSIGNMENT OF PAYMENTS- The provisions of section 8(g) of the Soil
  Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to
  assignment of payments) shall apply to payments under this section.
  `(l) EQUITABLE SHARING OF PAYMENTS- The Secretary shall provide for the
  sharing of payments made under this section for any farm among the producers
  on the farm on a fair and equitable basis.
  `(m) TENANTS AND SHARECROPPERS- The Secretary shall provide adequate
  safeguards to protect the interests of tenants and sharecroppers.
  `(n) PROHIBITIONS- (1) CROSS COMPLIANCE- (A) IN GENERAL- Compliance on
  a farm with the terms and conditions of any other commodity program, or
  compliance with crop acreage base requirements for any other commodity,
  may not be required as a condition of eligibility for loans or payments
  under this section.
  `(B) CROP ACREAGE BASE INCREASES- If a producer on a farm is participating
  in the feed grains program under this section, the crop acreage base for
  any other commodity for the farm may not be increased if such commodity
  is produced on the farm in a manner that is not in compliance with--
  `(i) the terms and conditions of the applicable commodity program for such
  commodity; or
  `(ii) the crop acreage base requirements of the applicable commodity
  program for such commodity.
  `(2) OFFSETTING COMPLIANCE- The Secretary may not require producers on
  a farm, as a condition of eligibility for loans, purchases, or payments
  under this section for such farm, to comply with the terms and conditions
  of the feed grains program with respect to any other farm operated by
  such producers.'.
SEC. 1002. PRICE SUPPORT FOR HIGH MOISTURE FEED GRAINS.
  (a) RECOURSE LOANS- Notwithstanding any other provision of law, effective
  for each of the 1991 through 1995 crops of feed grains, the Secretary
  of Agriculture shall make available recourse loans as determined by the
  Secretary, as provided in this section, to producers on a farm who--
  (1) normally harvest all or a portion of their crop of feed grains in a high
  moisture state (herein defined as a feed grain having a moisture content
  in excess of Commodity Credit Corporation standards for loans made by the
  Secretary under sections 105A(a)(1) and (6) of the Agricultural Act of 1949);
  (2)(A) present certified scale tickets from an inspected, certified
  commercial scale, including licensed warehouses, feedlots, feed mills,
  distilleries, or other similar entities approved by the Secretary, pursuant
  to regulations issued by the Secretary; or
  (B) present field or other physical measurements of the standing or stored
  feed grain crop in regions of the country, as determined by the Secretary,
  that do not have certified commercial scales from which certified scale
  tickets may be obtained within reasonable proximity of harvest operation;
  (3) certify that they were the owners of the feed grain at the time
  of delivery to, and that the amount to be placed under loan was in fact
  harvested on the farm and delivered to, a feedlot, feed mill, or commercial
  or on-farm high-moisture storage facility, or to such facilities maintained
  by the users of such high-moisture feed grain;
  (4) comply with deadlines established by the Secretary for harvesting the
  feed grain and submit applications for loans within deadlines established
  by the Secretary; and
  (5) participate in an acreage limitation or set-aside program for such
  crop of feed grains established by the Secretary.
  (b) ELIGIBILITY OF ACQUIRED FEED GRAINS- Such loans shall be made on a
  quantity of feed grains of the same crop acquired by the producer equivalent
  to a quantity determined by multiplying--
  (1) the acreage of the feed grain in a high moisture state harvested on
  the producer's farm; by
  (2) the lower of the farm program payment yield or the actual yield on a
  field, as determined by the Secretary, that is similar to the field from
  which such high moisture feed grain was obtained.
SEC. 1003. NONAPPLICABILITY OF SECTION 105 OF THE AGRICULTURAL ACT OF 1949
TO THE 1991 THROUGH 1995 CROPS OF FEED GRAINS.
  Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be
  applicable to the 1991 through 1995 crops of feed grains.
SEC. 1004. CALCULATION OF REFUNDS OF ADVANCE ESTABLISHED PRICE PAYMENTS BY
PRODUCERS OF THE 1988 OR 1989 CROPS OF FEED BARLEY.
  (a) MANDATORY CALCULATION OF REFUND- (1) IN GENERAL- Not later than 45
  days after the date of enactment of this Act, the Secretary of Agriculture
  shall calculate, for informational purposes only (except as provided in the
  discretionary authority under subsection (b)), the amount of the refund of
  any advance deficiency payment a producer of barley who participated in the
  1988 or 1989 Federal barley price support program would be required to make
  pursuant to section 107C of the Agricultural Act of 1949 (7 U.S.C. 1445b-2)
  based on a formula that includes the human food values of barley in all
  components of the calculations used to determine the amount of refund of
  the advance deficiency payment required of such producer.
  (2) DISCLOSURE- (A) TO THE PUBLIC- The Secretary shall publish in the
  Federal Register--
  (i) the formula used to perform the calculations described in paragraph (1);
  (ii) the aggregate results that the use of such calculation would have
  pursuant to subsection (b), in terms of--
  (I) the total reduction in the amount of refunds,
  (II) the number of producers affected, and
  (III) any other information the Secretary determines appropriate;
  (iii) a declaration of the Secretary's decision whether to use such
  calculation to recalculate barley producer's refunds pursuant to subsection
  (b); and
  (iv) a statement of the Secretary's reasons for the decision described in
  clause (iii).
  (B) TO PRODUCERS- The Secretary shall make available to each producer of
  1988 or 1989 crop barley, upon request, a statement detailing the effect of
  the calculation of refunds described in paragraph (1) upon such producer's
  1988 or 1989 refund.
  (b) DISCRETIONARY USE OF CALCULATION- (1) IN GENERAL- The Secretary may
  use the calculation described in subsection (a) to determine whether or
  not to reduce the total refund owed by a producer of 1988 or 1989 crop
  barley under section 107C of the Agricultural Act of 1949.
  (2) PROCEDURE FOR USE OF CALCULATION- If the Secretary decides to use the
  calculation described in subsection (a) as provided under paragraph (1),
  then, in the case of a producer of 1988 or 1989 crop barley who paid the
  refund of the advance deficiency payment for such crop calculated prior to
  the enactment of this Act (or any amount of refund in excess of the amount
  of the refund determined in accordance with paragraph (1)), the Secretary --
  (i) shall, before May 31, 1991, reimburse the producer the amount of refund
  paid by the producer in excess of the refund determined in accordance with
  this section;
  (ii) shall have the option to make such reimbursement in a lump sum or
  in installments;
  (iii) shall, not later than 45 days after the date of enactment of this
  Act, notify producers who are eligible to receive such reimbursement of
  their 1988 or 1989 advance deficiency payment refund under this section--
  (I) of the timing of the payment of such reimbursement (either in lump
  sum or in installments),
  (II) that the amount of such reimbursement shall not bear interest if paid
  before October 15, 1990, and
  (III) that the amount of such reimbursement paid after October 15, 1990
  shall bear interest at a rate of at least 7 percent per annum; and
  (iv) may elect to pay such reimbursement in a lump sum with negotiable
  generic certificates redeemable for commodities owned by the Commodity
  Credit Corporation if such reimbursement is paid in full not later than
  60 days after the date of enactment of this Act.
TITLE XI--GENERAL COMMODITY PROVISIONS
Subtitle A--Miscellaneous Commodity Provisions
SEC. 1101. PAYMENT LIMITATIONS.
  (a) AMENDMENTS TO SECTION 1001 OF THE FOOD SECURITY ACT OF 1985- Effective
  beginning with the 1991 crops, section 1001 of the Food Security Act of 1985
  (7 U.S.C. 1308) is amended--
  (1) in paragraph (1) by striking `1990' and inserting `1995';
  (2) in paragraph (2)(A) by striking `1990' and inserting `1995';
  (3) in paragraph (2)(B)(iii)(I) by striking `under section' and all that
  follows through `respectively' and inserting `under section 107A(a)(4),
  105A(a)(4), 103B(a)(5), 101B(a)(5), or 201(b)(2), respectively,';
  (4) in paragraph (2)(B)(iv) by striking `under section' and all that follows
  through `such Act' and inserting `under section 107A(c)(1) or 105A(c)(1),
  respectively, of the Agricultural Act of 1949 as the result of a reduction
  of the loan level for such crop under section 107A(a)(3) or 105A(a)(3)
  of such Act';
  (5) in paragraph (2)(B)(v) by striking `107D(b), 105C(b), 103A(b), or
  101A(b),' and inserting `107A(b), 105A(b), 103B(b), or 101B(b),'; and
  (6) in paragraph (2)(B)(vi) by striking `107D(g), 105C(g), 103A(g), or
  101A(g)' and inserting `107A(g)(1), 105A(g)(1), 103B(f), or 101B(f)'.
  (b) CONFORMING AMENDMENT- Section 2 of the Act of December 11, 1989 (Public
  Law 101-217) is amended by striking `Effective only for' and inserting
  `Effective beginning with'.
  (c) AMENDMENT TO SECTION 1001C OF THE FOOD SECURITY ACT OF 1985- Section
  1001C(a) of the Food Security Act of 1985 (7 U.S.C. 1308-3(a)) is amended
  by striking `and 1990' and inserting `through 1995'.
  (d) TREATMENT OF MULTI-YEAR FARM PROGRAM CONTRACT PAYMENTS- Effective
  beginning with the 1989 crops, the Food Security Act of 1985 is amended
  by inserting after section 1001C (7 U.S.C. 1308-C) the following new section:
`SEC. 1001D. TREATMENT OF MULTI-YEAR FARM PROGRAM CONTRACT PAYMENTS.
  `(a) IN GENERAL- Notwithstanding any other provision of law, in the event
  of a transfer of ownership of a farming operation (or an ownership interest
  in a farming operation) by way of gift (in anticipation of death or upon
  disability of the donor), devise, or descent, the Secretary of Agriculture
  shall continue to make to the new owner or owners all payments which may
  become due and payable by virtue of any multi-year program contract which
  was in effect at the time of the gift or the death of the prior owner.
  `(b) LIMITATION ON INCREASE IN PAYMENTS- Payments made pursuant to this
  section shall not exceed the amount to which the previous owner was entitled
  to receive under the terms of the contract at the time of the gift or the
  death of the prior owner.
  `(c) LIMITATION ON DECREASE IN PAYMENTS- Payments shall be made pursuant
  to this section to the new owner or owners of a farming operation (or an
  ownership interest in a farming operation) without regard to any limitation
  on farm program payments received by such new owner or owners in their
  capacity as separate persons actively engaged in farming with regard to any
  other farming operation, including the operation subject to the multi-year
  program payment contract which is the basis of this section.'.
SEC. 1102. HYBRID SEED CORN PRODUCERS.
  (a) DEFINITION- For the purposes of the Agricultural Adjustment Act of 1938
  (7 U.S.C. 1281 et seq.) and the Agricultural Act of 1949 (7 U.S.C. 1421
  et seq.) the terms `producer' and `producers' shall include a grower of
  hybrid seed corn under contract, and the grower's interest in the crop
  shall be determined as though any contract for growing such hybrid seed
  corn did not exist.
  (b) DETERMINATION OF ACTIVELY ENGAGED STATUS- Section 1001A(b) of the Food
  Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended by adding at the end
  the following paragraph:
  `(6) GROWERS OF HYBRID SEED- To determine whether a person growing hybrid
  seed under contract shall be considered to be actively engaged in farming,
  the Secretary shall not take into consideration the existence of any
  contract for growing such hybrid seed.'.
SEC. 1103. ADVANCE DEFICIENCY AND DIVERSION PAYMENTS.
  Effective only for the 1991 through 1995 crops of wheat, feed grains,
  upland cotton, and rice, section 107C of the Agricultural Act of 1949
  (7 U.S.C. 1445b-2) is amended to read as follows:
  `SEC. 107C. (a)(1) If the Secretary establishes an acreage limitation
  or set-aside program for any of the 1991 through 1995 crops of wheat,
  feed grains, upland cotton, or rice under this Act and determines that
  deficiency payments will likely be made for such commodity for such crop,
  the Secretary shall make advance deficiency payments available to producers
  for each of such crops.
  `(2) Advance deficiency payments under paragraph (1) shall be made to the
  producer under the following terms and conditions:
  `(A) Such payments may be made available in the form of--
  `(i) cash;
  `(ii) commodities owned by the Commodity Credit Corporation and negotiable
  certificates redeemable in  a commodity owned by the Commodity Credit
  Corporation, except that not more than 50 percent of such payments may be
  made in commodities or such certificates in the case of any producer; or
  `(iii) any combination of clauses (i) and (ii).
  `(B) If payments are made available to producers as provided for under
  subparagraph (A)(ii), such producers may elect to receive such payments
  either in the form of--
  `(i) such commodities; or
  `(ii) such certificates.
  `(C) Such a certificate shall be redeemable for a period not to exceed 3
  years from the date such certificate is issued.
  `(D) The Commodity Credit Corporation shall pay the cost of storing a
  commodity that may be received under such a certificate until such time
  as the certificate is redeemed.
  `(E) Such payments shall be made available as soon as practicable after
  the producer enters into a contract with the Secretary to participate in
  such program.
  `(F) Such payments shall be made available in such amounts as the Secretary
  determines appropriate to encourage adequate participation in such program,
  except that such amount may not exceed an amount determined by multiplying--
  `(i) the estimated farm program acreage for the crop, by
  `(ii) the farm program payment yield for the crop, by
  `(iii)(I) in the case of wheat and feed grains, not less than 40 percent,
  nor more than 50 percent, of the projected payment rate; and
  `(II) in the case of rice and upland cotton, not less than 30 percent,
  nor more than 50 percent, of the projected payment rate,
as determined by the Secretary.
  `(G) If the deficiency payment payable to a producer for a crop, as finally
  determined by the Secretary under this Act, is less than the amount paid
  to the producer as an advance deficiency payment for the crop under this
  subsection, the producer shall refund an amount equal to the difference
  between the amount advanced and the amount finally determined by the
  Secretary to be payable to the producer as a deficiency payment for the
  crop concerned.
  `(H) If the Secretary determines under this Act that deficiency payments
  will not be made available to producers on a crop with respect to which
  advance deficiency payments already have been made under this subsection,
  the producers who received such advance payments shall refund such payments.
  `(I) Any refund required under subparagraph (G) or (H) shall be due at the
  end of the marketing year for the crop with respect to which such payments
  were made.
  `(J) If a producer fails to comply with requirements established under
  the acreage limitation or set-aside program involved after obtaining an
  advance deficiency payment under this subsection, the producer shall repay
  immediately the amount of the advance, plus interest thereon in such amount
  as the Secretary shall prescribe by regulation.
  `(3) The Secretary may issue such regulations as the Secretary determines
  necessary to carry out this section.
  `(4) The Secretary shall carry out the program authorized by this section
  through the Commodity Credit Corporation.
  `(5) The authority provided in this section shall be in addition to, and
  not in place of, any authority granted to the Secretary or the Commodity
  Credit Corporation under any other provisions of law.
  `(b) If the Secretary makes land diversion payments under this Act to assist
  in adjusting the total national acreage of any of the 1991 through 1995
  crops of wheat, feed grains, upland cotton, or rice to desirable levels,
  the Secretary may make at least 50 percent of such payments available to
  a producer as soon as possible after the producer agrees to undertake the
  diversion of land in return for such payments.'.
SEC. 1104. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.
  Effective only for the marketing years for the 1991 through 1995 crops,
  section 407 of the Agricultural Act of 1949 (7 U.S.C. 1427) is amended by--
  (1) in the third sentence, striking the language following the third colon
  and inserting the following: `Provided, That, notwithstanding any other
  provision of law, the Corporation may not sell any of its stocks of wheat,
  corn, grain sorghum, barley, oats, and rye at less than (A) 150 percent
  of the current national average loan rate for the commodity, adjusted for
  such current market differentials reflecting grade, quality, location, and
  other value factors as the Secretary determines appropriate plus reasonable
  carrying charges, or (B) if the Secretary permits the repayment of loans
  made for a crop of the commodity at a rate that is less than the loan level
  determined for such crop, 150 percent of the average loan repayment rate
  that is determined for such crop during the period of such loans.'; and
  (2) in the seventh sentence, striking `, but in no event shall the purchase
  price exceed the then current support price for such commodities' and
  inserting `or unduly affecting market prices, but in no event shall the
  purchase price exceed the Corporation's minimum sales price for such
  commodities for unrestricted use'.
SEC. 1105. DISASTER PAYMENTS FOR 1991 THROUGH 1995 CROPS OF
PEANUTS, SOYBEANS, SUGAR BEETS, AND SUGARCANE.
  (a) EXTENSION OF AMENDMENT TO SECTION 201 OF THE AGRICULTURAL ACT OF 1949-
  Section 1008 of the Food Security Act of 1985 is amended by striking `1990'
  and inserting `1995'.
  (b) TECHNICAL CORRECTION- Section 201(k)(1) of the Agricultural Act of
  1949 (7 U.S.C. 1446(k)(1)) is amended by striking `Secetary' and inserting
  `Secretary'.
SEC. 1106. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR MULTIYEAR
SET-ASIDE CONTRACTS.
  Section 1010 of the Food Security Act of 1985 (7 U.S.C. 1445i) is amended--
  (1) in paragraph (1) by--
  (A) striking `The Secretary of Agriculture may' and inserting `The Secretary
  of Agriculture shall';
  (B) striking `beyond the 1990' and inserting `beyond the 1995';
  (C) striking `through 1990' and inserting `through 1995';
  (D) striking `the set-aside acreage to vegetative cover capable' and all
  that follows through `natural beauty.' and inserting `50 percent of the
  set-aside acreage to a perennial cover crop or an annual cover crop each
  year that is capable of naturally improving water quality, improving habitat
  for wildlife, or making forage available for drought emergencies, unless
  water conservation considerations or other crop management considerations
  identified in a conservation plan prepared for such land require otherwise.
  Seasonal flooding with shallow water shall be considered to be acceptable
  cover crop for the purpose of this section.';
  (E) striking `Grazing' and inserting `Haying or grazing'; and
  (F) striking `grazing' and inserting `haying or grazing'; and
  (2) by adding at the end the following:
  `(5) To be eligible to enter into a multi-year set-aside agreement and
  receive cost share assistance under this section a producer shall designate
  the same cropland each crop year for all agricultural set-aside and acreage
  limitation programs that are involved in multi-year set-aside programs,
  except that those croplands necessary for normal crop rotation or those lands
  used for changes in farm operations shall be exempt from this requirement.
  Each producer shall establish on such acreage a perennial cover crop or an
  annual cover crop that is capable of naturally improving soil fertility,
  reducing water problems, improving water quality, improving habitat
  for wildlife or making forage available for drought emergencies, unless
  water conservation considerations or other crop management considerations
  identified in a conservation plan for such land require otherwise.'.
SEC. 1107.  ESTABLISHMENT OF COVER CROP.
  (a) IN GENERAL- The Secretary should encourage producers who participate in
  an acreage reduction program established for a crop of wheat, feed grains,
  cotton or rice under the Agricultural Act of 1949 to plant an annual or
  perennial vegetative cover on reduced acreage that provides full season
  coverage capable of naturally improving soil fertility, reducing erosion,
  improving soil quality, enhancing wildlife, and making forage available for
  drought emergencies on all acreage required to be devoted to conservation
  uses, unless water conservation considerations or other crop management
  considerations identified in a conservation plan prepared for such land
  require otherwise.
  (b) PARTICIPATION VOLUNTARY- Participation by a producer in any program
  of encouragement under subsection (a) shall be at the discretion of the
  producer.  Failure to participate in any such program shall not be used to
  determine eligibility for any other Federal program, unless specifically
  authorized by law.
  (c) CONSIDERATION OF MANAGEMENT PRACTICES- In any program of encouragement
  authorized under this section the Secretary shall provide for the planting
  of annual or vegetative cover crops consistent with normal crop rotation
  management practices, such as summer fallow or other conserving use
  management practices, traditionally practiced in the area.
SEC. 1108. SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY.
  Effective for the 1991 through 1995 crops of wheat and feed grains,
  section 113 of the Agricultural Act of 1949 (7 U.S.C. 1445h) is amended
  to read as follows:
`SUPPLEMENTAL SET-ASIDE AND ACREAGE LIMITATION AUTHORITY
  `SEC. 113. Notwithstanding any other provision of law or prior announcement
  made by the Secretary to the contrary, the Secretary may announce and
  provide for a set-aside or acreage limitation program under section 105A
  or 107A for one or more of the 1991 through 1995 crops of wheat and feed
  grains if the Secretary determines that such action is in the public
  interest as a result of the imposition of restrictions on the export
  of any such commodity by the President or other member of the executive
  branch of the Federal Government.  To carry out effectively a set-aside or
  acreage limitation program authorized under this section, the Secretary may
  make such modifications and adjustments in such program as the Secretary
  determines necessary because of any delay in instituting such program.'.
 [Struck out][ SEC. 1109. EXTENSION OF THE FOOD SECURITY WHEAT RESERVE.
   [Struck out][ Section 302 of the Food Security Wheat Reserve Act of 1980
   (7 U.S.C. 1736f-1) is amended--
   [Struck out][ (1) in subsection (b)(2)--
   [Struck out][ (A) by designating the current paragraph (2) as subparagraph
   (2)(A);
   [Struck out][ (B) by striking `(A)' and `(B)' and inserting `(i)' and
   `(ii)', respectively; and
   [Struck out][ (C) by adding the following new subparagraph: ][