The 2002 Farm Bill: Comparison and Commodity Support Provisions with the House and Senate Proposals, and Prior Law

Report for Congress
The 2002 Farm Bill: Comparison of Commodity
Support Provisions with the House and Senate
Proposals, and Prior Law
August 1, 2002
Jasper Womach
Agriculture Policy Specialist
Resources, Science, and Industry Division

Congressional Research Service ˜ The Library of Congress

The 2002 Farm Bill: Comparison of Commodity Support
Provisions with the House and Senate Proposals, and
Prior Law
Summary
A new farm bill, the Farm Security and Rural Investment Act of 2002 (P.L. 107-
171), covering crop years 2002-2007, was signed into law May 13, 2002. Conferees
resolved the differences between the H.R. 2646 and S. 1731 and the conference
report (H.Rept. 107-424) was adopted by the House on May 2 and the Senate on May
8. The previous farm bill (now prior law) was the Federal Agriculture Improvement
and Reform Act of 1996 (P.L. 104-127), popularly called the FAIR Act. Commodity
support authority in the FAIR Act (Title I, Agricultural Market Transition Act
(AMTA)) was set to expire after crop year 2002.
This report provides a side-by-side comparison of prior law (AMTA), with most
commodity support provisions of Title I of the new law, and the House and Senate
farm bills. There are important similarities and differences between the various
versions.
The new law takes effect immediately and applies to crops harvested in 2002.
While the House bill would have authorized support programs through 2011 (10
years), and the Senate bill 2006 (5 years), conferees agreed to authorize support
through 2007 (6 years). As proposed in both bills, conferees agreed to continue
marketing assistance loans, first adopted in the 1985 farm bill and extended by
AMTA. The new law will continue the annual fixed, decoupled contract payments
first adopted under AMTA in 1996. And, as both bills proposed, the new law will
restore the counter-cyclical payments (target price deficiency payments) discontinued
by AMTA. The peanut support program is transformed to mirror the program for
grains and oilseeds. At the more detailed level of commodity loan rates, contract
payment rates, counter-cyclical target prices, and payment limitations, the conference
report made compromises between the two bills that were adopted as new law.

Contents
Commodity Support Provisions (Title I) of Prior Law, the House Farm Bill,
the Senate Farm Bill, and New Law...........................2
A.) Wheat, Corn, Grain Sorghum, Barley, Oats, Upland Cotton,
Rice, Soybeans and Other Oilseeds........................2
1.) Sign-Up
2.) Base Acres and Payment Acres
3.) Payment Yield
4.) Producer Contract/Agreement
4.) Direct Fixed, Decoupled Payments
2.) Counter-Cyclical Deficiency Payments and Target Prices
3.) Marketing Assistance Loans and LDPs
B.) Wool and Mohair.....................................13
1.) Marketing Loans and LDPs
C.) Honey..............................................14
1.) Marketing Assistance Loans and LDPs
D.) Extra Long Staple (ELS) cotton, Dry Peas, Lentils and Chickpeas
...................................................15
1.) Marketing Assistance Loans and LDPs
E.) Grazed Wheat, Barley, Oats, and Triticale..................16
1.) Payments in Lieu of LDPs
F.) High Moisture Corn and Sorghum.........................16
1.) Recourse Loans
G.) ELS and Upland Seed Cotton............................17
1.) Recourse Loans
H.) Hard White Wheat Incentive Payments....................17
1.) Incentive Payments
I.) Upland Cotton Competitiveness Provisions for Processors
and Exporters........................................17
1.) Marketing Certificates
2.) Import Quotas
J.) ELS Cotton Competitiveness Provisions for Processors and
Exporters ...........................................18
K.) Peanuts.............................................19
1.) Poundage Quotas and Quota compensation
2.) Nonrecourse Loans / Marketing Assistance Loans
3.) Fixed Payments, Counter-Cyclical Payments, and
Marketing Assistance Loans
4.) Payment Limits
L.) Sugar...............................................22
1.) Price Support Loans
2.) No Net Cost Mandate
3.) Loan Forfeiture Penalty
4.) Import Quotas
5.) Marketing Allotments
6.) In-Kind Payments
7.) Marketing Assessment
8.) Interest Rate on Loans

9.) Storage Facility Loans

1.) Milk Price Support
2.) Processor Recourse Loans
4.) Northeast Dairy Compact
5.) Dairy Market Loss Payments
6.) Dairy Export Incentive Program
7.) Dairy Indemnity Program
8.) Fluid Milk Processor Promotion Program
9.) Dairy Product Mandatory Reporting
10.) Dairy Promotion and Research Assessment
11.) Dairy Studies and Reports
N.) Tobacco.............................................30
1.) Flue-cured Quota
2.) Flue-cured Farm Reconstitutions
O.) Specialty Crops.......................................31
1.) Mandatory CCC Purchases
P.) Payment Limits.......................................32
1.) Fixed Payments, and Counter-Cyclical Payments
2.) Marketing Loan Benefits
3.) Spouse Benefit and 3 Entity Rule
4.) Adjusted Gross Income Limit
5.) Payment Limitation Commission
Q.) Livestock Assistance...................................34
R.) Farm Income Estimates.................................34
S.) CCC Commodity Operations............................35
T.) Implementing Regulations..............................35
U.) Counter-Cyclical Farm Savings Accounts..................35
V.) WTO Limits on Allowable Domestic Support...............36
List of Tables
Table 1. Fixed Payments: Comparison of Prior Law, New Law, House,
and Senate Bills..............................................37
Table 2. Counter-Cyclical Target Prices: Comparison of Prior Law,
New Law, House Bill, and Senate Bill............................38
Table 3. Loan Rates: Comparison of Prior Law, New Law, House Bill,
and Senate Bill...............................................39
Table 4. Loan/Purchase Rates for Other Commodities: Comparison of
Prior Law, New Law, House Bill, and Senate Bill...................40
Table 5. Commodity Program Cost Estimates Compared to
Baseline Budget Authority......................................41
Table 6. 2002 Farm Bill, 6-Year Cost Estimates........................42

The 2002 Farm Bill: Comparison of
Commodity Support Provisions with the
House and Senate Proposals, and Prior Law
Commodity support programs originated in the 1930s and are permanently
authorized by the Agriculture Adjustment Act of 1938 (P.L. 75-430, as amended, 7
U.S.C. 1281 et seq.) and the Agriculture Act of 1949 (7 U.S.C. 1421 et seq.).
Spending for these programs is mandatory and funding is carried out through the
Commodity Credit Corporation (CCC) (P.L. 80-806, as amended, 15 U.S.C. 714 et
seq.). Periodically, the permanent authorities are amended, by what is popularly
called a farm bill, to establish new policies for a specified limited future time. That
legislation is now replaced by Title I of the Farm Security and Rural Investment Act
(FSRIA) of 2002, P.L. 107-171. Commodity and farm income support in the new
farm bill is a compromise between a 10-year House bill (H.R. 2646) and 5-year
Senate farm bill (S. 1731), resulting in a 6-year bill, covering crop years 2002
through 2007 (Conference report H. Rept. 107-424). The new law replaces the
Agricultural Market Transition Act (AMTA, Title I of the Federal Agriculture
Improvement and Reform Act, P.L. 104-127, 7 U.S.C. 7201 et seq.), which
established commodity support policy for crop years 1996 through 2002.
The CCC borrows the money it needs to meet mandatory program spending
requirements from the U.S. Treasury. Subsequently, Congress appropriates funds
that CCC uses to repay the Treasury. Other programs to facilitate marketing of farm
commodities, encourage domestic consumption, and promote exports are authorized
in other laws. Furthermore, the USDA has broad powers to support the farm sector
and has implemented new programs on occasion without specific legislative
direction.
The methods of support for wheat, grain sorghum, barley, oats, upland cotton,
and rice have long been nearly identical and together these commodities were
referred to as the “program crops.” Under AMTA, these crops were brought together
under a single support framework and were called “contract commodities” because
farmers signed Production Flexibility Contracts (PFC) with the CCC. The new
FSRIA establishes a “commodity agreement” framework for grains and upland cotton
and also makes oilseeds (soybeans and other oilseeds including sunflower seed,
rapeseed, canola, safflower, flaxseed, and mustard seed) into “covered commodities.”
The support program for peanuts also is made almost identical to that for the covered
commodities.
The following side-by-side compares policy rather than legislative language.
Therefore, the phrase “same as” does not mean “identical to.” Rather, “same as”
means the same or very similar policy framework or design. Prior law (P.L. 104-127)
is compared to H.R. 2646, as individually approved by the House and the Senate, and
to the new law (P.L. 107-171).

CRS-2
Support Provisions (Title I) of Prior Law, the House Farm Bill, the Senate Farm Bill, and New Law
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
A.) Wheat, Corn, Grain
, Oats,
beans and Other

1.) Sign-Up.

ⁱ^{ki/CRS-RL31524}
^g/wn-up period is required toEstablishes a sign-up period, lastingEstablishes a sign-up period, thatUSDA is to provide notice to
^s^.orin not later than 45 days afternot more than 180 days afterbegins not less 45 days after enactmentfarmers, as soon as practical after
^le^akand end August 1, 1996.enactment, during which producersand lasts for 180 days, during whichenactment, of the opportunity
ibility contractssign “agreements” covering cropproducers sign “contracts” coveringsign agreements and establish
^://wikiCs) cover 7 years, 1996 thruyears 2002 thru 2011 (10 years).crop years 2002 thru 2006 (5 years).base acres for direct and counter-
^h^ttp[Section 112][Section 110][Section 111 as it amends Section 112cyclical payments. [Section
of FAIR Act]1101]
2.) Base Acres and
Acres.
’s base acres and paymentThe base acres for each crop areSame as House bill. [Section 111 as itSame as House and Senate bills.
elds are used to calculate theeither the acres specified in existingamends Section 111 of FAIR Act][Section 1101]

ram benefits to the producer.PFC contracts, or average acres
yields forplanted to eligible crops from 1998
ible crops are those that wouldthru 2001. Accommodation is
applied in 1996 under the thenmade for double cropping, peanut
piring program. Under theacres, and CRP acres. Base acres
piring program, the “acreagecannot exceed total cropland on a

CRS-3
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
se” for each program crop is thefarm. [Section 103]
e acres planted/considered
anted the prior 5 years for wheat,Payment acres equal 85% of basePayment acres equal 100% of baseSame as House bill. [Section
rains and the prior 3 years foracres in calculating paymentacres in calculating payment amounts.1101(f)]
amounts. [Section 100(9) and[Section 111 as it amends Section 111

103(f)]of FAIR]

3.) Payment Yield.

ⁱ^{ki/CRS-RL31524}ogram payment yields for eachfrozen at 1986 programThe program payment yield foreach crop is the: payment yield inThe program payment yield is either:the yield specified in existingSimilar to House bill. Paymentyield is the yield established for
^g/w[Section 102]effect for 2002 under an existingcontracts, or average yield from 1998the 1995 crop. Oilseed payment
^s^.or
^le^akproduction flexibility contract; or athru 2001. There is no requirement toyield is the average yield from
: Soybeans and other oilseedssimilarly appropriate yield for farmsadjust yields back to an 1981-851998-01, adjusted back to the
^://wiki eligible crops and there arewithout past contracts. Oilseedequivalent. [Section 111 as it amendsnational average from 1981-85.
^h^ttpvisions for establishing baseyield is the average yield fromSection 111 of FAIR Act]Yields for counter-cyclical
ields for oilseeds.1998-01, adjusted back to a 1981-payments may be updated using
85 equivalent. [Section 102]specified formulas. [Section

1102]

4.) Producer
ontract/Agreement.
a.) Requirements.
ible producers must sign aProducers must agree during eachSame as old law. Producers signAdopts House bill provision.
ract that includes specificcrop year to certain requirements incontracts. [Section 111 as it amends[Section 1105]

rements in order to receiveorder to receive fixed, decoupledSection 111 of FAIR Act]
ments. [Section 111]direct payments and counter-
cyclical payments. [Section 106]

CRS-4
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
1.) Conservation and
Wetlands Compliance
oducers are required to complySame as old law. [Section 106]Same as old law. [Section 111 as itSame House and Senate bills and
lready existing conservationamends Section 111 of FAIR Act]old law. [Section 1105(1)(A)
quirements on highly erodibleand (B)]
nd and with already existing
wetlands
f crop production.
ⁱ^{ki/CRS-RL31524}pliance requirements do
^g/w new obligations on
^s^.or[Section 111]
^le^ak
2.) Planting Flexibility
^://wikiand Limitations
^h^ttp
ers are allowed to plant anySame planting flexibility allowanceSame planting flexibility allowance asSame as House bill, except if
cept fruits and vegetablesas old law, but wild rice is added toold law, but wild rice is added toprohibited crops are planted they
r than lentils, mung beans, andexceptions. [Section 107]exceptions beginning in 2003.may be destroyed before harvest,
peas) on contract acreage and[Section 113]and planting trees or other
ere are no planting restrictions onperennial crop producing plants
e. Cropland notis prohibited on base acres.
devoted to a[Section 1106]
use to prevent erosion
d can not be converted to non-
ricultural uses. [Section 118]
tions of planting flexibilityNo provisions for violations.For first time unintentional violationsSame as House bill.

itations generally result inof planting flexibility limitations, the
rmination of the contract on eachpenalty shall be a refund or reduction

CRS-5
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
e producer has anof future payments amounting to twice
rest. [Section 116]the payment amount on the involved
acres. [Section 112]
3.) Change in Farm
Ownership or Operator
ontract obligations can beSame as old law. [Section 106(c)]Same as House bill. [Section 111 as itSame as old law, and House and
sumed by new owners.amends Section 111 of FAIR Act]Senate bills. [Section 1105(b)]
ⁱ^{ki/CRS-RL31524}therwise the contract isd. Changing operators
^g/wes not affect program acres or
^s^.or
^le^akelds. [Section 117]
^://wiki4.) Direct Fixed,
^h^ttp
a.) Eligibility.
ibility for PFC contracts isFarms with existing PFC contracts,Same as House bill. [Section 111 as itSame as House and Senate bills
tended to producers previouslyand other producers with a historyamends Section 111 of FAIR Act]except that these crops are to be
rolled in a grain or cottonof contract crop or oilseedknow as “covered crops.”
ram in at least 1 of the 1991-95production from 1998-01 areProvision is made for expiring
ears. Conservation Reserveeligible for fixed, decoupledCRP acres to be added to the
ogram cropland expiring orpayments on their base acres andagreements. [Section 1103]

an. 1, 1995 isyields. Soybeans and other oilseeds
ible. Soybeans and otheralso are made eligible. These crops
eds are not eligible PFCare to be known as “agreement
mmodities. [Section 111]crops.” Provision is made for
expiring CRP acres to be added to

CRS-6
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
the agreements. [Section 101(a)
and 103(a)]
b.) Payment Rates.
rmers who sign productionSimilar framework to old law.Similar framework to old law.Same as House bill. [Section
ibility contracts (PFCs) in 1996Farmers who sign “agreements”Farmers who sign contracts receive1105]
ed annual payments for 7receive direct fixed, decoupledfixed, decoupled annual payments,
ated to crops or acreageannual payments, unrelated to cropsunrelated to crops or acreage actually
ⁱ^{ki/CRS-RL31524} planted. The payment for each commodity isor acreage actually planted. Thepayment amount for eachplanted. The payment quantity foreach commodity is 100% of payment
^g/whe contract acreage timescommodity is payment acres (85%acres times the payment yield times
^s^.or
^le^ake payment yield times theof base acres) times the paymentthe payment rate.
ment rate. [Section 114]yield times the payment rate.
^://wiki
^h^ttpmentPayment rates are specified for allPayments rates are specified forPayment rates differ slightly
years as follows:2002/03, 2004/05, 2006 as follows:from House bill as follows:
heat, $0.46/buWheat, $0.53/buWheat, $0.45, $0.225, $0.113/buWheat, $0.52/bu
Corn, $0.30/buCorn, $0.27, $0.135, $0.068/buCorn, $0.28/bu
hum, $0.31/buSorghum, $0.36/buSorghum, $0.31/$0.27, $0.135,Sorghum, $0.35/bu
rley, $0.20/buBarley, $0.25/bu$0.068/buBarley, $0.24/bu
Oats, $0.025/buBarley, $0.20, $0.10, $0.05/buOats, $0.024/bu
Cotton, $0.0667/lbOats, $0.05, 0.$025, $0.013/buCotton, $0.0667/lb
Rice, $2.35/cwtCotton, $0.13, $0.065, $0.0325/lbRice, $2.35/cwt
ybeans, not a contract cropSoybeans, $0.42/buRice, $2.45, $2.40, $2.40/cwtSoybeans, $0.44/bu
Other Oilseeds, $0.0074/lbSoybeans, $0.55, $0.275, $0.138/buOther Oilseeds, $0.008/lb
[Section 104]Other Oilseeds, $0.01, $0.005, [Section 1103(b)]

$0.0025/lb
[Section 111 as it amends Section 113
of FAIR Act]

CRS-7
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
aw does not specify actualTotal payments are to be reduced byNo comparable provision.Same as Senate, no provision to
yment rates, but states the total$100 million on a pro rata basisreduce spending and devote
ble each year and the(about 2% based on CBO estimates)funds elsewhere.
location share for eachand these funds are to be devoted to
mmodity. [Section 113]specified rural development
programs. [Section 943]
c.) Time of Payment.
ⁱ^{ki/CRS-RL31524}to receivement on Dec. 15 orFY2002 PFC payments under oldlaw are to be discontinued afterNo explicit reference is made todiscontinuing payments under PFCSimilar to House bill. [Section1107]
^g/wn. 15 and the remainder not laterenactment, and any amount alreadycontracts, or to payments already made
^s^.or
^le^akan September 30 of each fiscalpaid is to be deducted from theunder to old law.
[Section 112(d)(1 & 2)]amount due under this Act.
^://wiki[Section 108] Fixed, decoupled
^h^ttppayments are to be made not later
than September 30 of each fiscal
year. [Section 104(d)]
, for FY1999-02, theThe producer can choose to receiveSame as House bill. [Section 111 as itSame as House and Senate bills
oducer can choose to receive thean advance of 50% of the paymentamends Section 113(d) of FAIR Act]except xxx [Section 1103(d)]

r portions at timeson or after December 1. [Section
ng the fiscal year chosen by the104(d)]
[Section 112(d)(3) as

CRS-8
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
2.) Counter-Cyclical
eficiency Payments and
Prices.
a.) Eligibility.
clical targetRestores counter-cyclical targetSame as House bill. [Section 111 as itSame as House and Senate bills.
ce deficiency payments that wereprice deficiency payments thatamends Section 111(a) of the FAIR [Section 1104]
nctionedended in 1995. Farms that haveAct]
ⁱ^{ki/CRS-RL31524}h 1995. When effective,id the differencesigned agreements will receivecounter-cyclical payments if
^g/wween the target price and a loweraverage market prices are less than
^s^.or
^le^ake farm price on atarget prices. [Section 101]
cified proportion of a farm’s
^://wiki
^h^ttp
b.) Target Prices and
ent Rates.
ot applicable.The payment rate for counter-Same as House bill, except that theSame as House bill. [Section
cyclical payments is the differencepayment amount for each commodity1001(10)]

between the “target price” and theis 100% of base acres times the
“effective price.” The effectivepayment yield times the payment rate.
price is the higher of (1)the national
season average price or (2)the loan
rate, plus the direct fixed,
decoupled payment rate. The
payment amount is the payment rate
times the payment acres times the
payment yield. Payment acres are

CRS-9
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007

85% of base acres.

Target prices are for all years areTarget prices are for all years areTarget prices for 2002-03/2004-
specified as follows:specified as follows:07 are specified as follows:
Wheat, $4.04/buWheat, $3.446/buWheat, $3.86/$2.92/bu
Corn, $2.78/buCorn, $2.3472/buCorn, $2.60/$2.63/bu
Sorghum, $2.64/buSorghum, $2.3472/buSorghum, $2.54/$2.57/bu
Barley, $2.39/buBarley, $2.1973/buBarley, $2.21/$2.24/bu
Oats, $1.47/buOats, $1.5480/buOats, $1.40/$1.44/bu
ⁱ^{ki/CRS-RL31524}Upland Cotton, $0.736/lbUpland Cotton, $0.6793/lbUpland Cotton, $0.724/$0.724/lb
^g/wRice, $10.82/cwtRice, $9.2914/cwtRice, $10.50/$10.50/cwt
^s^.orSoybeans, $5.86/buSoybeans, $5.7431/buSoybeans, $5.80/$5.80/bu
^le^akOther Oilseeds, $0.1036/lbOther Oilseeds, $0.1049/lbOther Oilseeds,
[Section 105][Section 171 as it amends Section$0.098/$0.1010/lb
^://wiki111,which amends Section 114 of[Section 1104(c)]
^h^ttpFAIR Act]
3.) Marketing
ssistance Loans and LDPs.
a.) Eligibility.
wheat, feed grains, uplandMarketing assistance loans and loanSame as House bill. [Section 121]Similar to House and Senate
ce produced on PFCdeficiency payments (LDPs) arebills, except the list of loan
rms is eligible for marketingavailable for agreement cropscommodities differs. [Section
stance loans or LDPs, whether(grains, upland cotton, oilseeds) on1201] The phrase “loan
ontractall farms where they are produced,commodities” is defined to
res. These commodities are notwhether or not they have signedinclude wheat, corn, grain
ible for loan or LDPs ifagreements). [Section 121]sorghum, barley, oats, upland
cotton, extra long staple cotton,

CRS-10
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
cts. Any oilseed is eligiblerice, soybeans, other oilseed,
arketing assistance loans orwool, mohair, honey, dry peas,
Ps, whether or not the farm haslentils, and small chickpeas.
ract. [Section 131][Section 1001]
b.) Term of Loans.
ans on grains and oilseeds are forSame as old law. [Section 123]Same as old law. [Section 121]Similar to old law, and House
inning on the first ofand Senate bills, except the term
ⁱ^{ki/CRS-RL31524} month after the loan date.ans on upland cotton are for 10for each commodity, includingcotton, is 9 months beginning on
^g/winning on the first of thethe first day of the month after
^s^.or
^le^akloan is made. [Section 1203]
^://wikic.) Loan Repayment.
^h^ttpr grains and oilseeds, marketingSimilar to old law. [Section 124]Similar to old law. [Section 121]Similar to old law, and House
stance loans can be repaid at theand Senate bills. Repayment
sser of the loan rate plus interest,rules for wool, mohair, honey,
the rate determined by USDAdry peas, lentils, and small
t minimize forfeitures, minimizechickpeas are the same as for
accumulation of CCC-ownedgrains and oilseeds. [Section
ks, minimize the cost of1204]

orage, and allow for free and
mpetitive domestic and
rnational marketing. [Section
paid at the lesser of the loan rate

CRS-11
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
rest, or the prevailing world
arket price adjusted to U.S.
and location. Additional
justments to the world price are
ade when the world price declines
loan rate , and when the
ce of U.S. cotton exceeds the
e of competing cotton in the
[Section 134]
ⁱ^{ki/CRS-RL31524}
^g/w the event of a default on a loan at
^s^.or maturity date, the commodity
^le^akdged as collateral reverts to CCC
^://wiki
^h^ttpken against the borrower because
arketing assistance loans are
[Section 131]
d.) Loan Deficiency
ents (LDPs).
oducers with grain, upland cotton,Same as old law. [Section 125]Same as old law. [Section 121]Similar to old law, and House
eds eligible for marketingand Senate bills. LDPs are
available for all loan
receive loan deficiencycommodities with the exception
yments. The LDP is theof ELS cotton. [Section 1204]

fference between the loan rate and
loan repayment rate established
the USDA. [Section 135]

CRS-12
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
e.) Loan Rates.
ing assistance loans and loanMarketing assistance loans and loanSame as House bill. [Section 121]Same as House and Senate bills.
ciency payments (LDPs)deficiency payments (LDPs) are[Section 1201]
in 1995.available for loan commodities on
is provided for USDA toall farms (not limited to farms with
r the loan rates when stocksagreements for fixed and counter-
ulate.cyclical payments) and any quantity
produced on the farm. [Section
ⁱ^{ki/CRS-RL31524} 121(b)]
^g/wan rates generally are to be notLoan rates generally are to be notFixed, specific loan rates are asFixed, specific loan rates are as
^s^.or
^le^akthan 85% of the moving 5-yearless than 85% of the moving 5-yearfollows:follows:
ympic average of prices receivedOlympic average of prices receivedWheat, $2.9960/buWheat, $2.80/$2.75/bu
^://wiki producers, or more than:by producers, or more than:Corn, $2.0772/buCorn, $1.98/$1.95/bu
^h^ttpheat, $2.58/buWheat, $2.58/buSorghum, $2.0772/buSorghum, $1.98/$1.95/bu
Corn, $1.89/buBarley, $1.9973/buBarley, $1.88/$1.85/bu
hum, $1.69/buSorghum, $1.89/buOats, $1.4980/buOats, $1.35/$1.33/bu
rley, $1.71/buFeed Barley, $1.70/buCotton, $0.5493/lbCotton, $0.52/$0.52/lb
Malting Barley, $1.65/buRice, $6.4914/cwtRice, $6.50/$6.50/cwt
Oats, $1.21/buSoybeans, $5.1931/buSoybeans, $5.00/$5.00/bu
Cotton, max $0.5192-min $0.50/lbMinor Oilseeds, $0.0949/lbMinor Oilseeds, $0.096/$0.93/lb
& min $6.50/cwtRice, must equal $6.50/cwt[Section 171 as it amends Section 121,ELS Cotton, $0.7977, $0.7977/lb
beans, max $5.26, min $4.92/buSoybeans, $4.92/buwhich amends Section 132 of the FAIR(ELS Cotton is not eligible for
$0.093, minMinor Oilseeds, $0.087/lbAct]LDPs)
[Section 122]Dry Peas, $6.33, $6.22/cwt
Lentils, $11.94, $11.72/cwt
Small Chickpeas, $7.56,
$7.43/cwt.
Graded Wool, $1.00/lb

CRS-13
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
Nongraded Wool and Unshorn
Pelts, 40¢/lb
Mohair, $4.20/lb
[Section 1202]
. 106-224, Section 206(a)(2)Retroactively, for the 2001 crops, asSame as House bill. [Section 169]Same as House and Senate bills.
d (3), made loans and LDPswas the case for 2000, LDPs are[Section 1205(f)(2)]
non-PFC farms onlyavailable on non-PFC farms that
ear 2000.)produced contract crops and
ⁱ^{ki/CRS-RL31524}oilseeds. [Section 125(f)]
^g/wyment limits are covered below
^s^.or
^le^ak
B.) Wool and Mohair.
^://wiki
^h^ttp1.) Marketing Loans and
ool and mohair support wasMarketing loans and LDPs areSimilar to House bill, but no supportSimilar to House bill, except
ased out and ended in 1996 byavailable to all producers at thefor mohair. Marketing loans andunshorn pelts are eligible for
. 103-130, Section 1, whichfollowing rates:LDPs are available to all producers at:LDPs only.
pealed the National Wool Act of
support wasGraded Wool, $1.00/lbGraded Wool, $1.00/lbGraded Wool, $1.00/lb
ed in several subsequentNongraded Wool, 40¢/lbNongraded Wool and Unshorn Pelts,Nongraded Wool and Unshorn
. 106-78 Section 801(h),Mohair, $4.20/lb40¢/lbPelts, 40¢/lb
ed recourse loans on 1999[Section 130]Mohair, naMohair, $4.20/lb
mohair. P.L. 106-224, Section[Section 171 as it amends Section 111,[Section 1201, 1202]
ated payments onwhich amends Section 132 of the FAIR
Act]Marketing loan gains and LDPs
. 106-387,[While Section 123 provides no loanare limited to $75,000 per person

CRS-14
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
ed paymentsfor mohair, Section 171 includes aper year for wool, and separately
wool and $0.40loan for mohair, but the claimed intent$75,000 for mohair. [Section
for crop year 2000, up toaccording to Committee staff is to not1603]
ain for crop yearsupport mohair]
. 107-25, Section 5,
ion in direct
ments for wool and mohair at
tes determined by USDA.
ⁱ^{ki/CRS-RL31524}C.) Honey.
^g/w1.) Marketing
^s^.or
^le^akssistance Loans and LDPs.
^://wiki support is repealed. [SectionMarketing loans and LDPs atMarketing loans and LDPs at $0.60/lb.Same as House bill. [Section
^h^ttp This action followed several$0.60/lb. The term of a loan is 12The term of the loan is 9 months,1201,1202] The payment limit is
riculture appropriationsmonths, beginning the first day ofbeginning the first day of the month$75,000 per person per year.
nguage that prevented USDAthe month after the loan is obtained.after the loan is obtained. [Section[Section 1603]

arrying out the mandatory[Section 131]124, which amends Section 133 of the
marketing loan program.FAIR Act]
, recourse loans were
ed for the 1998, 1999, and
respectively P.L.

5-227, Section 1122; P.L. 106-

. 106-224,
. 106-387, Section
eting assistance
d LDPs available on 2000
honey at $0.65/lb and

CRS-15
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
recourse loans were
ed to nonrecourse marketing
ns.
D.) Extra Long Staple
LS) cotton, Dry Peas,
ils and Chickpeas.
1.) Marketing Assistance
ⁱ^{ki/CRS-RL31524}
^g/wS cotton is eligible forSame as old law.Marketing loans and LDPs areSimilar to Senate bill, except
^s^.ors, but not LDPs.available on all production at thelarge chickpeas are not included.
^le^akections 132 and 134]following rates:[Section 1201-1205].. Loan rates
^://wikirized for dryfor 2002-03, and 2004-07 are:
^h^ttpas, lentils, large chickpeas, small
ckpeas.ELS Cotton, $0.7965ELS Cotton, $0.7977, $0.7977/lb
(ELS cotton is not eligible for LDPs)(ELS cotton is not eligible for
Dry Peas, $6.78/cwtLDPs)
Lentils, $12.79/cwtDry Peas, $6.33, $6.22/cwt
Large Chickpeas, $17.44/cwtLentils, $11.94, $11.72/cwt
Small Chickpeas, $8.10/cwtSmall Chickpeas, $7.56,
$7.43/cwt.
[Section 1202]

The term of each loan is 9 months,
beginning the first day of the month
after the loan is obtained. [Section 171
as it amends Section 111, which
amends Section 132 of the FAIR Act]

CRS-16
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
E.) Grazed Wheat, Barley,
1.) Payments in Lieu of
. 104-127 made no provision forWheat, barley, and oats that areSimilar to House bill, but includesSimilar to House bill, except
Ps on grazed wheat, barley andgrazed and not harvested, but wouldgrain sorghum along with wheat,grazed triticale (a genetic cross
acreage. P.L. 106-224, Sectionbe eligible for LDPs if harvested,barley and oats as eligible crops.of wheat and rye) also is
ⁱ^{ki/CRS-RL31524}DPs on grazed for 2001 crops.will receive LDPs under similarrules to those that apply to[Section 127]covered. [Section 1206]
^g/wharvested crops. Federal crop
^s^.or
^le^akinsurance is not allowed on grazed
land agreements. [Section 126]
^://wiki
^h^ttpF.) High Moisture Corn

1.) Recourse Loans.

ecourse loans are available onFor farms that normally harvestSame as House bill. [Section 121(a)]Same as House bill. [Section
h moisture corn and graincorn or sorghum in a high moisture1209(a)]

rghum. Loan rates arecondition, recourse loans are
termined by the USDA. Onlyavailable at rates set by the USDA.
C contracts areFarms need not have signed
ible. [Section 137(a)]“agreements.” [Section 129(a)]

CRS-17
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
G.) ELS and Upland Seed

1.) Recourse Loans.

ecourse loans are available onRecourse loans are available forNo provision is made to support seedSame as House bill. [Section
all upland and ELS seed cotton, atcotton.1209(b)]
C contracts, and on any farmrates set by the USDA. Farms
ELS seed cotton.need not have signed
ⁱ^{ki/CRS-RL31524}b)]“agreements.” [Section 129(b)]
^g/wH.) Hard White Wheat
^s^.orive Payments.
^le^ak
^://wiki1.) Incentive Payments.
^h^ttpSame as old law, no supportFor crop year 2003 through 2005, anSimilar to Senate bill, but
provision is available for hard whiteadditional $40 million is to be paid tofunding is set at $20 million for
hard white wheat, like allwheat.producers to ensure that hard whitethe 3 year period. [Section
wheat, does qualify forwheat on not more than 2 million acres1616]
ments and marketingmeets minimum quality standards.
ram benefits.[Section 167]
I.) Upland Cotton
ompetitiveness Provisions
r Processors and

1.) Marketing Certificates.

ing certificates or cashSome changes from old law.Same as old law. [Section 121(b)]Same as House bill for upland
yments are made to domesticMarketing certificates or cashcotton. Applies through July 31,

CRS-18
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
s and exporters of upland cottonpayments are made to domestic2008. [Section 1207(a)]
he 4-week price of U.S.users and exporters of upland cotton
gets too high compared towhenever the 4-week price of U.S.
orld cotton price (i.e., 1.25¢/lbcotton is too high or not high
her), or is not high enoughenough (i.e., when the U.S. price
pared to the U.S. cotton loan(1) exceeds the world price by
te (i.e., less than 130% higher).1.25¢/lb, or (2) does not exceed the
a)]U.S. cotton loan rate by at least

134%). [Section 127(a)]

ⁱ^{ki/CRS-RL31524}
^g/w2.) Import Quotas.
^s^.or
^le^akis imposedA special import quota is imposedSame as old law. [Section 121(b)]Same as House bill. [Section
pland cotton when U.S. priceson upland cotton when U.S. prices1207(b)]
^://wikiceed world prices by 1.25¢ for 10exceed world prices by 1.25¢ for 4
^h^ttp[Section 136(b)]weeks. [Section 127(b)]
ed global import quota isSame as old law. [Section 127(b)]Same as old law. [Section 121(b)]Same as old law, and House and
otton whenSenate bills. [Section 1207(c)]
prices average 130% of the
ous 3-year average of U.S.
ces. [Section 136(c) ]
J.) ELS Cotton
ompetitiveness Provisions
r Processors and Exporters.
A special competitiveness programNo provision.Same as House bill. Applies
is created for ELS cotton withthrough July 31, 2008. [Section
marketing certificates or cash1208]

payments to domestic users and

CRS-19
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
exporters under market conditions
like those that apply to upland
cotton. [Section 128]
K.) Peanuts.
1.) Poundage Quotas
a compensation.
undage quota is set toPeanut quotas are terminated andSimilar to House bill, but theRepeals all quota provisions, and
ⁱ^{ki/CRS-RL31524}ect the projected domesticfarmers are compensated $1,000/toncompensation is $1,100 (55¢/lb)adopts Senate quota
^g/w The(50¢/lb) ($200/ton/year for 5 years).($220/ton/yr for 5 years). [Sectioncompensation level of $1,100
^s^.orice of peanuts sold for domestic[Section 170]152](55¢/lb or $220 /ton/year for 5
^le^ak(quota peanuts)years). [Section 1309]
^://wiki
^h^ttpans at $610/ton (30.5¢/lb). The
e of additional peanuts
peanuts, those exported
oil and meal) is
USDA at $132/ton, 6.6¢/lb, in
[Section 155]

2.) Nonrecourse Loans /

arketing Assistance Loans.
Nonrecourse loans are replaced bySame as House bill except that theNonrecourse loans are replaced
marketing assistance loans. Loansmarketing assistance loan rate is set atby marketing assistance loans.
are set at $350/ton (17.5¢/lb)$400/ton (20/lb). [Section 151]Loans are set at $355/ton
available for all peanuts produced(17.75¢/lb) available for all

CRS-20
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
without distinction of end use.peanuts produced without
[Section 167]distinction of end use. [Section

1307]

3.) Fixed Payments,

arketing Assistance
ⁱ^{ki/CRS-RL31524}ed payments orclical payments.Support for peanuts designed likethat for grains, cotton, and oilseeds.Similar to House bill. [Section 151 asit establishes Section 158B in the FAIRAdopts House peanut programdesigned like that for grains,
^g/wRules regarding eligibility, sign-up,Act]cotton, and oilseeds. Rules
^s^.or
^le^akconservation and wetlandsregarding eligibility, sign-up,
compliance, planting flexibility,conservation and wetlands , base
^://wikibase acres, payment yields, etc., areacres, payment yields, etc., are
^h^ttpsimilar to those that apply to grains,similar to those that apply to
cotton, and oilseeds. [Sections 162,grains, cotton, and oilseeds.
165, 166][Section 1302] Adopts unique
conference provisions on
compliance and planting
flexibility. [Section 1305, 1306]
The assignment of each farm’sSame as House bill. [Section 151 as itAdopts House provision with
acres and yield to cropland selectedestablishes Section 158B(b) in therevision specifying that
by the producer is done on a one-FAIR Act]assignment must be done by
time basis. [Section 162(b)]March 31, 2003, among other
provisions. [Section 1302(b)]
Fixed, decoupled annual paymentsFixed, decoupled contract paymentsFixed, decoupled annual

CRS-21
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
at the rate of $36/ton (1.8¢/lb) areare the same as House bill. [Sectionpayments at the rate of $36/ton
made on 85% of each farms history151 as it establishes Section 158C in(1.8¢/lb) are made on 85% of
of peanut production. [Section 163]the FAIR Act]each farms history of peanut
production. [Section 1303]
Counter-cyclical deficiencyCounter-cyclical deficiency paymentsCounter-cyclical deficiency
payments against a $480/tonagainst a $520/ton (26¢/lb) target pricepayments are made when
(24¢/lb) target price are made onare made on 85% of each farms historymarketing year prices average
85% of each farm’s history ofof peanut production. [Section 151 asless than the target price of
ⁱ^{ki/CRS-RL31524}peanut production. [Section 164]it establishes Section 158D in the$495/ton (24.75¢/lb). Payments
^g/wFAIR Act]are made on 85% of each farm’s
^s^.orhistory of peanut production.
^le^akPartial payments may be made in
advance. [Section 1304]
^://wiki
^h^ttpMarketing assistance loans (set atMarketing assistance loan rate set atSimilar to House and Senate
$350/ton (17.5¢/lb) available for all$400/ton (20¢/lb) available for allbills, except the marketing
peanut production withoutpeanut production without distinctionassistance loan rate is set at
distinction of end use. [Sectionof end use. [Section 151 as it$355/ton (17.75¢/lb) available
167]establishes Section 158G in the FAIRfor all peanuts. [Section
Act]1307(b)]

4.) Payment Limits.

ments limits are not applicablePayments limits for peanuts arePayments received for support ofPayments limits for peanuts are
separate from other commodities.peanuts are subject to the same limitsseparate from other
[Section 169] Fixed, decoupledas other crops. Peanuts are not treatedcommodities. Fixed, decoupled
peanut payments are subject to aseparately. For all crops, thepeanut payments are subject to a
limit of $50,000 per person, percombination of fixed, decoupledlimit of $40,000 per person, per
year. The limit on counter-cyclicalpayments and counter-cyclicalyear. The limit on counter-

CRS-22
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
target price deficiency payments ispayments is limited to $75,000 percyclical target price deficiency
$75,000, and the limit on marketingindividual, per year. Marketing loanpayments is $65,000, and the
loan benefits is $150,000. [Sectionbenefits are limited to $150,000.limit on marketing loan benefits

169][Section 169]is $75,000. [Section 1603]

L.) Sugar.

1.) Price Support Loans.

aw cane sugar and refined beetSame nonrecourse loan rates as oldSame loan rates as old law. [SectionRetains old rates for non-
ⁱ^{ki/CRS-RL31524}ar are supported withlaw, 18¢/lb. raw cane, and 22.9¢/lb.141(i)] Same in-process sugar loansrecourse loans -18¢/lb. raw cane,
^g/wrefined beet. [Section 151(a)] In-as House bill. [Section 141(e)] Sameand 22.9¢/lb. refined beet. In-
^s^.orively. [Sectionprocess sugar is newly eligible forauthority to reduce loan rates as Houseprocess sugar is newly eligible
^le^aka) and (b)] The loan rates mayloan at 80% of full loan rates.bill. [Section 141(a)]for loan at 80% of full loan rates.
^://wikinegotiated reductions[Section 151(e)] Loan rates may beLoan rates may be reduced if
^h^ttprreduced if competing nationscompeting nations sufficiently
ar countries. [Section ]156(c)]sufficiently reduce support. [Sectionreduce support. [Section
rse loan program when the151(c)]1401(a) restates FAIR Act
riff rate quota on imports is lessprovisions, and adds new
1.5 million short tons wassubsection for in-process sugar
P.L. 106-387, Sectionloans]

2.) No Net Cost Mandate.

ng no netLoan program is to be operated atSame no cost policy as House bill.Loan program is to be operated
.no net cost by avoiding forfeitures.[Section 141(f)]at no net cost by avoiding
[Section 151(f)] forfeitures. [Section 1401(a)
adds new subsection to FAIR
Act]

CRS-23
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
3.) Loan Forfeiture
y.
of 1¢ per poundForfeiture penalty is retained byThe loan forfeiture penalty isSame as Senate bill. Elimination
ane sugar (an equivalentpreserving Section 156(g) of theeliminated. [Section 141(d)]of forfeiture penalty takes effect
ar) is assessedFAIR Act.upon enactment. [Section
n forfeitures. This effectively1401(a) drops provision from
FAIR Act] Change effectively
g)]increases support level.
ⁱ^{ki/CRS-RL31524}4.) Import Quotas.
^g/w
^s^.orlobal import quota of not lessSame as old law.Same as House bill, except authorizesMaintains existing import quota
^le^akUSTR in consultation with USDA tosystem, and adopts Senate
^://wikiear by USDA under authorityreallocate any shortfall of onereallocation provision giving any
^h^ttped Tariff Schedulecountry’s shipments to the other quota-shortfall of on country’s
ates. The quota isholding countries. [Section 144]shipments to the other quota-
countries by U.S.holding countries. [Section
epresentative. [HTSUS,1403]
additional U.S. note5.
STR announces a separate
ation for additional sugar
tering from Mexico as agreed in
sugar side letter to NAFTA]

5.) Marketing Allotments.

authority to impose mandatorySugar marketing allotments areSimilar to House bill, but provision isSugar marketing allotments are
rketing allotments on domesticrestored and are to be sharedmade for new cane processor entrantsrestored and are to be shared
ar production is suspended.between beet sugar and raw cane at(including mainland states notbetween beet sugar and raw cane

CRS-24
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
a)(1)(E)]54.35% and 45.65%. Allotmentspreviously producing cane). [Sectionat 54.35% and 45.65%.
are suspended when imports exceed143]Allotments are suspended when
1.532 million short tons. [Sectionimports exceed 1.532 million
152]short tons. Adds authority for
USDA to assign unused cane and
beet sugar allotments first to
sales of sugar in CCC inventory
and then to imports under certain
conditions. Makes allotment
ⁱ^{ki/CRS-RL31524}authority effective beginning
^g/wOctober 1, 2002. [Section 1403]
^s^.or
^le^ak6.) In-Kind Payments.
^://wikiovision.CCC is authorized to make in-kindSame authority to make in-kindAuthorizes CCC to make in-kind
^h^ttpcommodity payments from storedpayments for reduced production aspayments from stored
inventories to processors inHouse bill. [Section 141(f)]inventories in exchange for
exchange for reduced sugarreduced production as laid out in
production. [Section 151(j)]House and Senate provisions.
[Section 1401(a) adds new
subsection to FAIR Act]
7.) Marketing
ssessment.
must pay an assessmentThe assessment on all sugarSame as House bill. [Section 141(c)]Terminates the sugar marketings
ll marketings of sugar to CCCmarketings is eliminated. [Sectionassessment retroactive to
ual to a specified percentage of151(b)]October 1, 2001. [Section
loan rate. [Section 156(f)] P.L.1401(b)]

-78, Section 803(b), suspended

CRS-25
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
e assessment for FY2000 and

2001. P.L. 107-76, Section 749,

s remittance of 2002
ssments until September 2,
8.) Interest Rate on
ⁱ^{ki/CRS-RL31524} interest rate on loans is 1% the CCC cost of borrowingInterest rate on loans is equal toCCC cost of funds. This is 1% lessSame interest rate on loans as Housebill. [Section 141(j)]Reduces interest rate on pricesupport loans to sugar processors
^g/w. [Section 163]than the interest rate for otherby 1%, as in House and Senate
^s^.or
^le^akcommodities. [Section 151(h)]bills. [Section 1401(c)]
^://wiki9.) Storage Facility
^h^ttp
facilityStorage facility construction andSame as House bill. [Section 142]Authorizes storage facility loans,
ns.improvement loans are to be madeas in House and Senate bills.
available to processors. [Section[Section 1402]

153]

M.) Dairy.

1.) Milk Price Support.

farm price of milk is indirectlyContinues milk price support atSimilar to House bill. Continues milkSame as House bill. [Section
at $9.90/cwt. Support is$9.90/cwt. through purchases ofprice support at $9.90/cwt. through1501]

h CCC purchases ofdairy products, as under old law.purchases of dairy products. However,
dry milkAlso, as under old law, USDA isUSDA is required to adjust purchase
specific prices. [Section 141]permitted to adjust purchase priceprice relationships between butter and

CRS-26
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
to end afterrelationships between butter and drydry milk twice annually to minimize
milk twice annually to minimizeexpenditures.[Section 131]
thru 2000 by P.L. 106-78,expenditures. [Section 141]
P.L.
Section 742; and thru May
2 by P.L. 107-76, section
purchase price relationships
tween butter and dry milk twice
ⁱ^{ki/CRS-RL31524} to minimize expenditures.
^g/w
^s^.or2.) Processor Recourse
^le^ak
^://wikicourse loans for commercialHouse bill repeals processorSame as House bill.Same as House and Senate bills.
^h^ttpsors are to be availablerecourse loans, but they are already
inning in 2001, immediatelyrepealed by P.L. 107-76.
[Section 142] This was
P.L. 107-76, section
efore it could be
mented.
4.) Northeast Dairy
ompact.
heast Dairy Compact isNo provisions.No provision.Same as House bill.

ed, allowing six New
land states to require processors
y regulated minimum prices

CRS-27
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
Class I (fluid) milk (set by the
4 in 1997. The
ompact authority expired on

30, 2001. [Section 147]

5.) Dairy Market Loss
s.
. 104-127 did not provide forNo provisions.New counter-cyclical market lossSimilar to Senate bill, except a
ⁱ^{ki/CRS-RL31524}deficiency payments are made on up to8 million pounds of each farm’s annualsingle national target price of$16.94/cwt is established.
^g/w, ad hoc emergencyproduction. The total expenditureProducers receive monthly
^s^.or
^le^ak$200limit for the life of the programdeficiency payments equal to
for FY1999(December 1, 2001, thru September45% of the price difference on
^://wiki. 105-277), $125 million for30, 2005) is $500 million for 12up to 2.4 million pounds of
^h^ttp2000, (P.L. 106-78), and $473northeast states, and $1.5 billion for allproduction per year. The
for FY2001 (P.L. 106-387).other states. For the 12 northeastprogram is authorized from
states, as an alternative to the expiredDecember 1, 2001 through
Northeast Dairy Compact, paymentsSeptember 30, 2005. [Section
are made when the monthly average1502]

farm price of Class I milk (fluid use
milk) falls below the reference price
(target price) of $16.94. The payment
rate is equal to 45% of the market
price deficiency. For all other states,
payments are made when the quarterly
average market price falls below the 5-
year average for the same quarter. The
payment rate is 40% of the deficiency.
[Section 132]

CRS-28
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
6.) Dairy Export Incentive
ry Export IncentiveExtends old law. [Section 143(a)]Same as House bill. [Section 133(a)]Same as old law, and House and
ram (DEIP) is reauthorized.Senate bills. [Section 1503(a)]
ram, first authorized by the
s exporters cash
bonuses to enable
em to meet the prices of
ⁱ^{ki/CRS-RL31524}mpetitors subsidized sales and to
^g/w[Section
^s^.or
^le^ak
7.) Dairy Indemnity
^://wiki
^h^ttp
Indemnity ProgramAuthorizes the Dairy IndemnitySame as House bill through SeptemberSame as old law, and House and
pired September 30, 1995, and isProgram through September 30,30, 2006. [Section 133(b)]Senate bills except producer can
orized by P.L. 104-127.2011. [Section 143(b)]choose an advance of any
ver, appropriations made eachamount “up to” 50% of the direct
he program operating.payment. Applicable through
program indemnifies farmersSeptember 30, 2007. [Section

1503(b)]

pesticides and certain other
ics.

CRS-29
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
8.) Fluid Milk Processor
luid Milk Promotion isAuthorizes the Fluid MilkSame as House bill, except that fluidSame as Senate bill. [Section
tended thru December 31, 2002.Promotion program as a permanentmilk delivered directly to consumer1506]
is research and promotionprogram, replaces the old statutoryresidences does not count toward the 3
ram is funded by an assessmentdefinition of fluid milk product withmillion pound minimum requirement
of more than 500,000the definition promulgated infor the processor assessment. [Section
USDA regulations, and applies the134]
ⁱ^{ki/CRS-RL31524}assessment to processors of 3
^g/wmillion pounds per month or more.
^s^.or[Section 144]
^le^ak
9.) Dairy Product
^://wiki
^h^ttp
e Dairy Market EnhancementMakes a technical change in theSame as House bill with technicalSame as Senate bill. [Section
of 2000 (P.L. 106-532)definition of dairy products tochanges to definition of manufactured1504]
tablished a mandatory reportingrequire milk manufacturers todairy products. [Section 135]
stem on dairy product inventoriesinclude substantially identical
products in their reports to USDA.
[Section 145]
10.) Dairy Promotion
esearch Assessment.
r FY1997 thru FY2001, theExtends the assessment to importedSame as House bill. [Section 136]Same as House bill. [Section
tional Dairy Promotion anddairy products. Imports are given 21505]

esearch Board is authorized toseats on the Board. None of the
end funds to develop internationalimporter funds may be used for
rkets and promote U.S. milk inexport promotion. [Section 146]

CRS-30
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
[Section 152]
dened the activities of the
ard, which is funded by a $0.15
ht assessment on
marketed in
e 48 states.
11.) Dairy Studies and
ⁱ^{ki/CRS-RL31524}
^g/w andRequires USDA to prepare aRequires USDA to study and report noAdopts both House and Senate
^s^.or
^le^akport on the impact on milk prices,comprehensive evaluation oflater than September 30, 2002, on 1)provisions. [Section 1508]
ducer income, and federalnational dairy policies (i.e., pricethe impacts of terminating all federal
^://wikiram costs caused bysupports, marketing orders, over-price support and supply management
^h^ttpcreased imports of cheese underorder premiums and state pricingprograms while enabling the states to
ommitments. [Section 151]programs, dairy compacts, andmanage milk prices and supply, and on
export programs). [Section 147]2) the impacts of changing the
standard of identity for fluid milk to
require a minimum content
commensurate with the average
protein content of farm milk. [Section

137]

N.) Tobacco.

1.) Flue-cured Quota.

Same as old law.Reduces the reserve stock level forSimilar to Senate, except the
flue-cured in the quota determinationreserve stock is 60 million

CRS-31
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
formula from the greater of 100pounds. [Section 1610]
million pounds or 10% of the national
marketing quota, to the greater of

75,000 pounds or 10%. [Section 162]

2.) Flue-cured Farm
constitutions.
o provisionsSame as old law.Allows, for the 2002 crop only, forSame as Senate bill. [Section
ⁱ^{ki/CRS-RL31524}special farm reconstitutions thatotherwise would violate the1611]
^g/wprohibition on flue-cured lease and
^s^.or
^le^aktransfer of quota. Requires a study of
the prohibition of flue-cured quota
^://wikilease and transfer. [Section 163]
^h^ttp
O.) Specialty Crops.
1.) Mandatory CCC
. 104-127No provision.Mandated specialty crop purchasesThe amount of Section 32 funds
cifically authorize or mandateusing CCC funds: $100 million in eachthat can be carried across fiscal
for specialty crops.of FY2002 and FY2003, $120 millionyears for use in emergency
, emergency ad hocin FY2004, $140 million in FY2005,removals of surplus commodities
was mandated forand $170 million in FY2006.is increased from $300 million to
crops. P.L. 106-224,Mandated purchases of other$500 million. [Section 1602]
mandated the CCCunspecified commodities, at $30
million each year. [Section 166]Section 32 purchases of fruits,
nd vegetables with lowvegetables, and specialty crops
ces in 1998 and 1999, includingshall amount to not less than

CRS-32
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
es, black-eyed peas, cherries,$200 million each fiscal year.
ranberries, onions, melons,[Section 10603]
.L. 106-
tion 816
espectively $100 million
ments to apple growers and
to cranberry growers to
mpensate for low prices. P.L.
, mandated the
ⁱ^{ki/CRS-RL31524} $133.4 million to
^g/wfor support of specialty crops.
^s^.or
^le^akP.) Payment Limits.
^://wiki1.) Fixed Payments, and
^h^ttp
xed contract payments are subjectCombined fixed, decoupledFixed, decoupled commodityFixed, decoupled payments for
earpayments for grains, cotton, andpayments combined with counter-grains and oilseeds limited to
[Section 115]oilseeds are limited to $50,000 percyclical target price deficiency$40,000 per year per person.
tching market loss paymentsyear per person. [Section 109]payments for grains, cotton, oilseedsCounter-cyclical payments
rgency assistanceSeparately, fixed, decoupledand peanuts are subject to a $75,000limited to $65,000. The same
re not subject to payment limits,payments for peanuts are limited toper person, per year limit. [Sectionlimits separately apply to
practical result effectively$50,000. [Section 169]169]peanuts. [Section 1603]

the potential doubling of theCounter-cyclical payments for
ment limit to $80,000.grains, cotton, and oilseeds are
subject to a $75,000 per person, per
year limit. [Section 109]
Separately, counter-cyclical
payments for peanuts are limited to
$75,000. [Section 169]

CRS-33
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
Marketing Loan Benefits.
rketing loan benefits (marketingMarketing loan benefits for grains,Marketing loan benefits for allMarketing loan benefits for
n gains and LDPs) for all cropscotton, and oilseeds combined arecommodities (grains, cotton, oilseeds,covered crops (grains and
subject to a $150,000 per person,dry peas, lentils, chickpeas, wool,oilseeds), lentils, dry peas, and
per year limit. [Sectionper year limit. [Section 183]honey, and peanuts) combined aresmall chickpeas limited to
The limit was raised toSeparately, marketing loan benefitssubject to $150,000 per individual, per$75,000. Peanuts, wool, mohair,
ears 1999, 2000,for peanuts are limited to $150,000.year limit. Included in this limit areand honey each have separate
ⁱ^{ki/CRS-RL31524} respectively P.L. 106-[Section 169] Separately,marketing loan gains, LDPs, loanmarketing loan benefit limits of
^g/w. 106-387, sec.marketing loan benefits for woolforfeiture gains, and commodity$75,000. [Section 1603]
^s^.or. 107-25, sec. 10).and mohair are limited to $150,000.certificate gains. [Section 169]
^le^akempt from payment limits are[Section 130(f)] Separately,
rketing certificates sold tomarketing loan benefits for honey
^://wikirmers at the posted county priceare limited to $150,000. [Section
^h^ttpd to pay off marketing131(f)]
stance loans (authorized by P.L.
empt for
re gains from the forfeiture
ommodities at loan maturity.
3.) Spouse Benefit and 3
ntity Rule.
ange is made to existingSame as old law.A spouse allowance of an additionalSame as old law and House bill.

that allows a spouse to be$50,000 is created. The 3-entity rule is
rson orreplaced by applying the limits to
lows one person to receivepayments from all sources (the so-
ments from 2 additional farms.called direct attribution rule.) [Section
the limit169]
ments.

CRS-34
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
4.) Adjusted Gross
Same as old law.A person with adjusted gross incomeSame as Senate bill. [Section
in excess of $2.5 million is not eligible1603]
for payments (unless 75% or more of
income is from farming, ranching, or
forestry). [Section 169]
ⁱ^{ki/CRS-RL31524}5.) Payment Limitation
^g/w
^s^.orNo provision.Creates a 1-year Commission on theSame as Senate bill. [Section
^le^akApplication of Payment Limitations1605]
^://wikifor Agriculture to analyze and make
^h^ttprecommendations on payment limits.
[Sections 181-187]
Q.) Livestock Assistance.
o provision.No provision.Authorizes appropriations up $500Authorizes appropriation of such
million per year for FY2003-2008 forsums as necessary for livestock
livestock assistance. [Section 168]assistance. [Section 10104]
R.) Farm Income
stimates.
No provision.Requires USDA to make farm incomeSame as Senate bill. [Section
estimates for commercial producers1615]

separate from all farms. [Section 173]

CRS-35
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
S.) CCC Commodity
ions.
o provision.No provision.CCC is authorized to use privateSame as Senate bill. [Section
business to carry out commodity1609]
purchases and sales. [Section 174]
T.) Implementing
ⁱ^{ki/CRS-RL31524}gulations to implement Title IRegulations to implement Title INo provision.Same as House bill. [Section
^g/wll be issued not later than 90shall be issued not later than 901601(c)] (The 90 periods ends
^s^.ors after enactment (August 12,days after enactment. [Sectionon August 12, 2002).
^le^akSection 161(d)]181(c)]
^://wikiU.) Counter-Cyclical
^h^ttpings Accounts.
Same as old law.Farm counter-cyclical savingsSame as old law and House bill.

accounts are authorized as a pilot
program in 3 states. Farms with
adjusted gross revenue from
commodities of at least $50,000 would
be able to contribute an unlimited
amount into a savings account with
limited matching federal contributions
(up to $5,000 per fiscal year).
Withdrawals are permitted when
adjusted gross revenue is less than

90% of the previous 5-year average.

[Section 114]

CRS-36
P^RIO^RL^AW/P^OLIC^YH^OU^SEB^ILL,S^EN^A^TES^UB^S^T^IT^UT^E,N^EWL^AW
(P.L.104-127)(H.R.2646)(S.1731^AME^NDE^D)(P.L.107-171)
C^OV^ER^S1996-2002C^OV^ER^S2002-2011C^OV^ER^S2002-2006C^OV^ER^S2002-2007
V.) WTO Limits on
llowable Domestic Support.
ay RoundIf USDA determines that totalIf USDA notifies Congress thatSame as House bill, except the
reement on Agriculture, the U.S.spending for commodity supportsupport program spending will exceedUSDA is instructed to make
reed to an annual limit of $19.1will exceed the limits accepted bythe allowed limits and that adjustmentsadjustments to ensure
lion on spending for domesticthe United States in the Uruguaywill be made, all spending on thecompliance. [Section 1601]

de-distorting subsidies. There isRound Agreement on Agriculture,designated programs will be suspended
r limit in the law oradjustments may be made to reduceafter 18 months unless Congress
ⁱ^{ki/CRS-RL31524}ion of trade distortingspending to the limits but not belowdisallows the adjustments. [Section
^g/ws.the allowable limits. [Section164]
^s^.or 181(e)]
^le^ak
^://wiki
^h^ttp

CRS-37
Table 1. Fixed Payments: Comparison of Prior Law, New Law,
House, and Senate Bills
^Fix^e^d^Pa^ym^eⁿ^{t Ra}^te^s
^Pr^io^r^La^w^P.L^.^107-¹⁷¹^H^o^u^s^e^B^ill^Seⁿ^a^te^B^ill
²⁰⁰²⁽^2002-^03/⁽^2002-¹¹⁾⁽^2002-⁰⁶⁾
^C^r^op,^uni^t^2004-⁰⁷⁾
^W^h^e^a^t^{, $/bu}^0.46^0.52^0.53^{0.45/0.225/0.113}
^C^o^rⁿ^{, $/bu}^0.26^0.28^0.30^{0.27/0.135/0.068}
^G^r^aⁱ^{n Sor}^g^hum^{, $/bu}^0.31^0.³⁵^0.36^0.31-^{0.27/0.135/ 0.068}
^B^a^r^l^e^y^{, $/bu}^0.19^0.²⁴^0.25^{0.20/0.10/0.05}
^O^a^ts^{, $/bu}^0.020^0.024^0.025^{0.05/0.025/0.013}
^U^p^la^{nd C}^o^{tton, $/lb}^0.0554^0.0667^0.0667^0.^{13/0.065/0.0325}
^Rⁱ^c^e^,^$/c^w^t²^.05²^.35²^.35²^{.45/1.225/0.6125}
^Soy^b^e^aⁿ^s^,^$/bu^none^0.⁴⁴^0.42^{0.55/0.275/0.138}
^Minor^O^ils^e^e^d^s^,^$/lb^none^0.008^0.74^{0.01/0.005/0.0025}
^P^e^a^nuts^,^$/ton^none^36.00³⁶^al^l^y^ears,³⁶
^($/lb)⁽⁰^.018)⁽⁰^.018)⁽⁰^.018)
^Source:^Fⁱ^x^e^{d, decou}^p^l^e^{d pay}^m^en^t^sⁱⁿ^ol^d^l^a^w^(P.L^.^104-^{127), con}^f^eren^{ce report}^H^.^R^e^pt^{. 107-}^424,
^H.R^.^{2646; an}^{d S. 1731. P}^a^y^m^en^{t bas}^e^s^dif^f^e^{r betw}^een^th^{e bills}^{. T}^h^{e con}^f^eren^{ce report m}^a^k^e^s
^pay^m^en^ts^on⁸⁵^%^o^f^t^h^e^pay^m^en^{t acres}^tim^es^th^{e pay}^m^en^{t y}ⁱ^{eld, an}^{d g}^eⁿ^e^rally^th^{e y}ⁱ^{eld is}^th^at
^es^tablis^h^e^d^f^o^r^1995.^H.R^.²⁶⁴⁶^u^s^{e th}^{e s}^a^m^e^pay^m^en^{t bas}^e^as^{old law}^(85%^of^recen^t^acreag^e^an^d
^yⁱ^{eld av}^erag^es^f^r^om^th^{e 1980s}^{). S}^.^{1731 m}^a^k^e^s^pay^m^en^ts^on^100%^of^recen^t^acreag^e^an^d^recen^t^yⁱ^eld
^lev^e^ls.

CRS-38
Table 2. Counter-Cyclical Target Prices: Comparison of Prior
Law, New Law, House Bill, and Senate Bill
^Targ^{et P}^rⁱ^ces
^Pr^io^r^La^w^P.L^.^107-¹⁷¹^H^o^u^s^e^B^ill^Seⁿ^a^te^B^ill
⁽^{1995 L}^e^v^e^ls^,⁽^2002-^03/⁽^2002-¹¹⁾⁽^2002-⁰⁶⁾
^Not^2004-⁰⁷⁾
^Ap^p^lic^a^b^le
^C^r^op,^uni^t^1996-²⁰⁰²⁾
^W^h^e^a^t^{, $/bu}^4.00^3.86/3.92^4.04^3.4460
^C^o^rⁿ^{, $/bu}^2.75^2.60/2.63^2.78^2.3472
^G^r^aⁱ^{n Sor}^g^hum^{, $/bu}^2.61^2.54/2.57^2.64^2.3472
^B^a^r^l^e^y^{, $/bu}^2.36^2.21/2.24^2.39^2.1973
^O^a^ts^{, $/bu}^1.45^1.40/1.44^1.47^1.5480
^U^p^la^{nd C}^o^{tton, $/lb}^0.729^0.724/0.724^0.736^0.6739
^Rⁱ^c^e^,^$/c^w^t^10.71^10.50/10.50^10.82^9.2914
^Soy^b^e^aⁿ^s^,^$/bu^none^5.80/5.80^5.86^5.7431
^Minor^O^ils^e^e^d^s^,^$/lb^none^0.098/0.101^10.36^0.1049
^P^e^a^nuts^,^$/ton^none^495/495⁴⁸⁰⁵²⁰
^($/lb)⁽^24.75/24.75)⁽²⁴⁾⁽²⁶⁾
^Source:^T^a^rg^et^pri^cesⁱⁿ^ol^{d l}^a^w^(P.L^{. 104-}^{127, con}^f^eren^{ce report}^H^.^R^e^pt^.^107-^424,^H^.^R^.^2646,^an^d^a
^S^.^1731.^P^a^y^m^en^{t b}^a^{ses d}ⁱ^f^f^er^b^e^tw^een^th^{e b}^{ills. T}^h^{e co}ⁿ^f^er^en^{ce r}^e^p^o^r^{t m}^a^k^e^{s p}^a^y^m^en^{ts o}ⁿ⁸⁵^%
^of^t^h^{e pay}^m^en^t^acres^tⁱ^m^e^s^t^h^e^pay^m^en^t^yⁱ^el^{d, an}^{d g}^eⁿ^e^ral^l^y^t^h^{e y}ⁱ^el^{d i}^s^t^h^at^es^t^a^blⁱ^s^h^e^{d f}^o^{r 1995.}
^H.R^.^{2646 u}^s^{e th}^{e s}^a^m^e^pay^m^en^{t bas}^e^as^old^law^(85%^of^recen^{t acreag}^{e an}^{d y}ⁱ^{eld av}^erag^es^f^r^om^th^e
^1980s^{). S}^.^{1731 m}^a^k^e^s^pay^m^en^ts^on^100%^of^recen^{t acreag}^{e an}^{d recen}^{t y}ⁱ^{eld lev}^e^ls^.

CRS-39
Table 3. Loan Rates: Comparison of Prior Law, New Law,
House Bill, and Senate Bill
^L^{oan Rat}^e^s
^Pr^io^r^La^w^a^P.L^.^107-¹⁷¹^H^o^u^s^e^B^ill^Seⁿ^a^te^B^ill
^1996-⁰²^2002-^03/^2002-¹¹^2002-⁰⁶
^C^r^op,^uni^t^2004-⁰⁷
^W^h^e^a^t^{, $/bu}^2.58^2.80/2.75^2.58^2.9960
^C^o^rⁿ^{, $/bu}^1.89^1.98/1.95^1.89^2.0772
^G^r^aⁱ^{n Sor}^g^hum^{, $/bu}^1.69^1.98/1.95^1.89^2.0772
^B^a^r^l^e^y^{, $/bu}^1.71^1.88/1.85^1.65^1.9973
^O^a^ts^{, $/bu}^1.14^1.35/1.33^1.21^1.4980
^U^p^la^{nd C}^o^{tton, $/lb}^0.5192^0.52/0.52^0.5192^0.5493
^Rⁱ^c^e^,^$/c^w^t⁶^.50⁶^.50/6.50^6.50^6.4914
^Soy^b^e^aⁿ^s^,^$/bu^5.26^5.00/5.00^4.92^5.1931
^Minor^O^ils^e^e^d^s^,^$/lb^0.093^0.096/0.093^0.087^0.0949
^P^e^a^nuts^,^$/ton⁶¹⁰^b³⁵⁵³⁵⁰⁴⁰⁰
^{( $/lb)}⁽^30.5)⁽^17.75)⁽^17.5)⁽²⁰⁾
^Source:^L^o^an^rat^e^sⁱⁿ^ol^{d l}^a^w^(P.L^{. 104-}^{127), as}^adopt^{ed i}ⁿ^con^f^eren^{ce report}^H^.^R^e^pt^{. 107-}^{424, H}^.^R^.^a^b
^2646;^an^{d S}^.^1731.^L^o^an^rates^{are m}^a^xⁱ^m^u^m^allow^a^{ble lev}^e^ls^.^S^u^pport^l^e^v^e^l^f^o^{r qu}^ot^{a pean}^u^t^s^,^t^h^e
^s^u^pport^l^e^v^e^l^f^o^{r n}^oⁿ^q^u^o^t^a^pean^u^t^sⁱ^s^$174/^t^oⁿ^($0.087/^l^b⁾

Table 4. Loan/Purchase Rates for Other Commodities: Comparison of
Prior Law, New Law, House Bill, and Senate Bill
Loan/Purchase Rates
CropPrior LawP.L. 107-171House BillSenate Bill
2002 2002-03/04-07 2002-11 2002-06
ELS cotton, $/lb0.79700.7977/0.79770.79650.7965
Wool, graded, $/lb0.40 ^a1.00/1.001.001.00
Wool, nongraded, $/lbna0.40/0.400.400.40
Mohair $/lb0.40 ^a4.20/4.204.20na ^b
Honey, $/lb0.65 ^c0.60/0.600.600.60
Peas, dry, $/cwtna6.33/6.22na6.78
Lentils, $/cwtna11.94/11.72na12.79
Chickpeas, large, $/cwtna7.56/7.43na17.44
Chickpeas, small, $/cwtna7.56/7.43na8.10
Sugar, raw cane, $/lb0.180.18/0.180.180.18
Sugar, beet, $/lb0.2290.229/0.180.2290.229
Milk, $/cwt ^d9.90 ^d9.90/9.90^d9.90 ^e9.90
(target 16.94) (target 16.94
and rolling^f
average)
Tobacco, $/lb(adjusted(adjusted(adjusted(adjusted
yearl y) yearl y) yearl y) yearl y)
Fl ue-cured 1.656 1.656 1.656 1.656
Bu rl ey 1.835 1.835 1.835 1.835
^So^urce^:^L^o^an^/^p^u^r^ch^as^{e rat}^e^s^f^o^{r ol}^{d l}^a^w^(P.L^{. 104-}^{127) con}^f^eren^{ce R}^e^port^107-^{424, H}^.^R^.^{2646, an}^{d S}^.^1731.^a^b
^S^u^pport^f^o^{r w}^ool^an^{d m}^o^h^aⁱ^r^{are prov}ⁱ^d^{ed by}^P.L^.^107-^{25 (s}^{ec5) f}^o^{r t}^h^{e 2001 crop on}^l^y^.^T^h^{e Sen}^a^{te b}^ill
^ex^cl^u^d^es^m^o^h^aⁱ^rⁱⁿ^S^ectⁱ^oⁿ^{123, bu}^tⁱⁿ^cl^u^d^esⁱ^tⁱⁿ^S^ectⁱ^oⁿ^{171, bu}^t^t^h^e^cl^ai^m^e^dⁱⁿ^t^eⁿ^tⁱ^s^t^oⁿ^o^t^provⁱ^d^{e l}^o^an^s^f^o^r^c
^mo^h^aⁱ^r^.^Hon^e^y^receiv^e^{d em}^erg^eⁿ^c^y^s^u^{pport in}^{2000 u}ⁿ^d^er^P^.^L^.^106-^387(S^ection^812),^bu^tⁿ^o^t^s^u^bs^equ^eⁿ^tly^.^d
^T^h^{e f}^a^rm^pri^{ce of}^mⁱ^l^kⁱ^s^s^u^pport^e^{d at}^$9.90^t^h^ro^{ugh p}^u^r^c^ha^se^{s o}^f^st^o^r^a^b^l^e^no^nfa^t^d^r^y^mⁱ^l^k^,^b^u^t^t^e^r^,^aⁿ^d^c^h^e^e^s^e^.^e^f
^T^h^{e s}^u^pport^pri^{ce i}^s^m^a^{de perm}^an^en^t^and^a^t^a^r^g^e^t^p^rⁱ^{ce i}^s^es^t^a^blⁱ^s^h^e^{d f}^o^{r 3.5 y}^ears^.^S^.^{1731 es}^t^a^blⁱ^s^h^e^s^a
^targ^{et price f}^o^{r m}^ilkⁱⁿ^{12 n}^o^rth^eas^tern^s^t^ates^an^{d a rollin}^g^av^erag^{e m}^a^rk^{et price f}^o^{r all oth}^e^{r s}^t^ates^.

CRS-41
Table 5. Commodity Program Cost Estimates Compared to Baseline Budget Authority
(in millions of dollars)
Baseline BudgetCost Estimate Above Baseline
Commodity Support ProgramsAuthorityConference ReportHouse BillSenate Bill
5 Years10 Years5 Years10 Years5 Years10 Years5 Years10 Years
ments 19,741 39,481 3,676 9,947 6,435 12,866 9,491 2,731
Cyclical Paymentsnana15,79829,33219,24937,1795,23219,081
eting Assistance Loans21,85926,0881,5001,675(3,419)(5,825)10,77218,321
Mohair na na 99 205 94 202 87 189
( 9) (9) 61 101 61 101 61 101
ⁱ^{ki/CRS-RL31524} 659 1,246 1,657 2,056 374 773 2,273 2,284
^g/w
^s^.ora r 229 900 154 430 (15) (18) 254 530
^le^ak ( 5) (5) 2,582 3,935 2,281 3,483 2,724 4,365
^://wikiPs for Gazingnana212817241724
^h^ttpy Peas/Lentils/Chickpeasnana58116nana75150
ncentive Paymentsnana2020nana4040
et Loss Assistancenana9494nana100100
Crop Purchasesnana56106nana780780
ustment thru 7/31/03nana7575nana3636
ment and Income Limitsnana(114)(252)nana(454)(784)
rams na na 50 103 na na (925) (1,874)
OT AL 42,474 67,701 25,787 47,971 25,077 48,785 30,563 46,074
^B^a^s^e^lin^{e es}^tim^ates^{are f}^r^om^C^oⁿ^g^r^es^sⁱ^on^{al B}^u^dg^et^Of^fⁱ^ce,^A^p^r^{il 9, 2001, calcu}^lation^s^{. B}^{ill com}^p^aris^on^{data are categ}^{orized b}^y^C^R^S^,^bas^e^d^on^pri^m^ary^dat^a^f^r^om^C^oⁿ^g^r^es^sⁱ^on^al
^et^O^f^fⁱ^{ce es}^tⁱ^m^at^es^.^T^h^e^5-^y^ear^tⁱ^m^e^peri^odⁱ^s^F^Y^2002-^2006,^an^{d t}^h^{e 10-}^y^{ear t}ⁱ^m^{e peri}^{od i}^s^F^Y^2002-^{2011. T}^o^t^a^l^s^p^en^diⁿ^g^f^o^{r a com}^m^odi^t^y^prog^ramⁱ^s^t^h^{e s}^u^m^of^bas^e^lⁱⁿ^{e bu}^dg^et
^o^r^ity^p^l^u^s^th^{e co}^{st ab}^o^v^{e b}^a^selin^{e. n}^a^{, n}^o^{t ap}^p^licab^{le b}^ecau^{se cu}^rren^{t law}^o^r^th^{e b}^{ill d}^o^e^{s n}^o^{t p}^r^o^v^id^{e au}^th^o^r^ity^f^o^{r th}^e^lⁱ^s^t^e^{d prog}^ram^.

CRS-42
Table 6. 2002 Farm Bill, 6-Year Cost Estimates
(budget authority in millions of dollars)
^A^p^ri^l^{2001 Bas}^e^lⁱⁿ^e^M^arch^{2002 Bas}^e^lⁱⁿ^e
^B^a^s^e^lin^e^N^ew^Spen^din^g^T^o^{tal P}^r^oj^ected^B^a^s^e^lin^e^N^ew^Spen^din^g^T^o^{tal P}^r^oj^ected
^Sp^endⁱ^ng^Sp^endⁱ^ng
^m^m^odi^t^y^S^u^pport^55,534^31,169^86,703^61,337^37,587^98,924
ⁿ^s^erv^a^tⁱ^oⁿ^11,583^9,198^20,781^12,075^9,198^21,273
^ade¹^,566⁵³²^2,098^1,572⁵³²^2,104
ⁱ^{ki/CRS-RL31524}^tr^itioⁿ⁽¹⁾134,5562,657137,213146,8202,793149,613
^g/w
^s^.or 0 870 870 160 870 1,030
^le^ak
240 520 760 240 520 760
^://wiki
^h^ttp 0 8 5 8 5 0 85 85
y03663660405405

0 (336) (336) 0 (303) (303)

ears 203,479 45,061 248,540 222,204 51,687 273,891
ressional Budget Office data.
arm bill changes to nutrition spending include changes to food stamps, the emergency food assistance program, and child nutrition programs, as well
for demonstration programs. Child nutrition programs are not included in baseline, since their reauthorization is not addressed by the
Other Provisions” in the farm bill primarily consist of savings associated with the federal crop insurance program. However, crop insurance is not
luded in the baseline, since the reauthorization of the program is not part of the farm bill.