Summary: H.R.6590 — 97th Congress (1981-1982)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Passed Senate amended (07/14/1982)

(Measure passed Senate, amended, roll call #213 (77-17))

No Net Cost Tobacco Program Act of 1982 - Title I: Modification of Tobacco Price Support Program - Amends the Agricultural Act of 1949 to authorize the Secretary of Agriculture to carry out tobacco price supports through Commodity Credit Corporation loan agreements with producer-owned cooperative marketing associations, which will in turn make loans to producers.

Requires each association to establish a separate capital account, to be known as a No Net Cost Tobacco Fund (Fund), consisting of contributions from producers of quota tobacco and, for associations handling Flue-cured tobacco, from persons who, beginning with the 1983 crop, lease allotments and quotas to others. Requires such contributions for price support eligibility.

Authorizes an association to set contribution rates subject to the Secretary's approval. Prohibits the Secretary from approving a contribution rate not high enough to reimburse the Corporation for any net loan losses that the association may incur.

Permits an association to invest Fund moneys and to issue capital stock or certifications to investors. Requires that any earnings on Fund investments become a part of the Fund.

States that net gains from the sale of an association's loan collateral tobacco shall go to the Corporation to be used to offset future losses or to reduce outstanding loan debts.

Authorizes the Secretary to release excess gains to the associations.

Authorizes the Secretary to adjust the support rates for different grades of tobacco to avoid market excesses.

Establishes penalties for marketing tobacco in excess of marketing quotas and for marketing tobacco that is not eligible for price support.

Title II: Modification of Flue-Cured Tobacco Marketing Quota System - Amends the Agricultural Adjustment Act of 1938 to permit the leasing of Flue-cured tobacco acreage allotments or quotas. Prohibits such agreements after June 15 of the crop year, except in cases of natural disaster damage, but limits them to the same county or adjoining counties within the same State.

Requires all arrangements in connection with a lease to be exclusively between lessor and lessee, or an agent who regularly represents either party in nontobacco-related business transactions. Prohibits subleasing.

Requires each party to file a certificate of compliance with the county committee in order for the lease to take effect. Makes loss of price supports for the affected acreage the penalty for false statements made in such certificate.

Provides that the Flue-cured tobacco acreage allotment for a farm to which an allotment is transferred by sale or lease may not exceed 50 percent of such farm's tillable cropland.

Permits the sale of allotments or quotas, but only to active or future producers (as defined in this Act) in the same county.

Requires a producer to sell by December 1, 1983, or forfeit any Flue-cured tobacco allotment: (1) which exceeds 50 percent of the farm's tillable cropland; or (2) in which no risk-sharing is involved.

Requires a nonagricultural entity (other than an individual) which before enactment of this Act owns a Flue-cured tobacco farm but is not significantly involved in its management to sell its Flue-cured tobacco allotments or quotas by December 1, 1983, or forfeit them.

Requires the national yield factor for Flue-cured tobacco to be adjusted in 1983, and at five-year intervals thereafter, to the past five years' moving average. Permits individual adjustments.

Exempts nonquota tobacco produced in an area in which not more than 20 acres of quota tobacco are planted from quotas.

Subjects tobacco marketed in excess of quota to a lien until such penalty is paid. Counts falsely identified tobacco as part of the producer's quota.

Title III: Miscellaneous Provisions Relating to Burley Tobacco and Other Kinds of Tobacco - Amends the Agricultural Act of 1949 to authorize the Secretary to make price supports available to all tobacco (except Flue-cured tobacco) producers through their associations (as provided for in title I of this Act) or through an optional No Net Cost Tobacco Account established within the Commodity Credit Corporation. Finances such Account through producer (or warehouseman) marketing assessments, as determined by the Secretary.

Amends the Agricultural Adjustment Act of 1938 to require the mandatory sale by December 1, 1983, of burley acreage allotments and quotas held before enactment of this Act by nonagricultural entities which own burley tobacco farms but are not significantly involved in their management. Requires that such sales be to active or future producers in the same county. Provides that if such purchasers do not maintain a financial interest in such tobacco they must sell or forfeit such quota.

Treats fire-cured tobacco types 22 and 23 as one "kind of tobacco" for purposes of burley poundage quotas.

Directs the Secretary to proclaim and determine national marketing quotas for dark air-cured tobacco and for fire-cured (types 22 and 23) tobacco for the 1983 and 1984 marketing years by February 1, 1983.

Requires the Secretary to conduct a referendum among the producers of such tobacco to determine whether they favor marketing quotas based on poundage for the 1983 through 1985 marketing years (if not then such quotas will be based on acreage for the 1983 and 1984 marketing years).

Bases preliminary farm market quotas on the 1982 marketing year.

Increases from 15,000 to 30,000 pounds the amount of burley that may be leased. Provides for access to certain agricultural data.

Expresses the sense of the Congress that the President should immediately resume negotiations with the Soviet Union to extend the long-term grain sales agreement, and to require the Soviet Union to make specified minimum annual grain purchases.

Limits the sale of tobacco floor sweepings. Subjects violators to civil penalties.

Title IV: The ASC County and Community Committee System - Expresses the sense of Congress that the Secretary should ensure that the structure and operations of the agricultural stabilization and conservation county and community committees be preserved and strengthened.