A New Farm Bill: Comparing the 2002 Law with Previous Law and House and Senate Bills

CRS Report for Congress
A New Farm Bill: Comparing the 2002 Law with
Previous Law and House and Senate Bills
January 21, 2003
Agriculture & Food Supply Section
Coordinated by Jean Yavis Jones
Resources, Science, and Industry Division

Congressional Research Service ˜ The Library of Congress

A New Farm Bill: Comparing 2002 Law with Previous
Law and House and Senate Bills
Summary
On May 13, 2002, President Bush signed a new farm bill — The Farm Security and
Rural Investment Act of 2002 (P.L.107-171). This comprehensive new law contains ten titles
covering commodity support, conservation, nutrition, trade, research, credit, rural
development and other related programs. It makes significant changes to commodity,
conservation and nutrition programs, and is intended to guide most federal farm and food
policies through FY2007. The Congressional Budget Office (CBO) estimates (using the
March 2002 baseline) place the total cost of the new bill (i.e., baseline plus new funding) at
just under $274 billion over its six-year life-span. The total reflects an increase of $51.6
billion in federal spending, $37.6 billion of which is projected to be used to increase farm
commodity program spending.
Of the $274 billion in total 6-year budget authority for programs under the new law, it
is estimated that some $99 billion will go for direct subsidies to about 600,000 farmers.
Just under $150 billion will support the cost of food stamps and commodity assistance for
some 17 million low-income Americans. The remaining $25 billion is expected to be spent
on conservation ($21 billion), trade ($2.1 billion), rural development ($1 billion), and
research, forestry and energy ($2.5 billion) programs.
The new farm bill has been hailed by supporters as a corrective to previous policy that
was criticized for not providing a “safety net” for farmers, and that prompted some $35
billion in ad hoc emergency farm spending laws between fiscal years 1999 and 2002. Critics
of the new farm law expressed concern about its cost and its resurrection of old policy
mechanisms that they contend encourage overproduction that will further depress farm
prices. There also is concern that the generous farm subsidies in the new law conflict with
U.S. trade agreements and/or impede U.S. efforts to get other countries to cut their farm
subsidies.
The House approved its original farm bill (H.R. 2646, the Farm Security Act of 2001)
on October 5, 2001. The Senate version of this legislation (The Agriculture, Conservation,
and Rural Enhancement Act, or ACRE) was approved on February 13, 2002, and was nearly
three times the size of the House bill. Despite this, the commodity policy changes in both
bills reflected a similar policy direction. Both chambers’ bills maintained marketing loan
assistance and fixed, decoupled annual farm payments, although at different levels. They
both also added target prices and counter-cyclical income support (or deficiency payments)
for major field crops. Conservation and nutrition programs were enhanced by both bills,
although more so in the Senate bill. Other differences between the House and Senate
included: the pace of new spending; the amount of new funding for commodity programs
versus other USDA activities (e.g., conservation, food assistance, etc.); how much to fund
each of the commodity support programs; and the federal caps on farm payments. The final
law adopted the more evenly paced annual spending of the House bill; spent most (73%) new
money on farm commodity programs; split the differences over funding for each of the three
major commodity programs; and set new farm payment caps that lowered base limits but
maintained rules allowing payments for up to three entities, spouses, and unlimited
commodity certificates. This report will not be updated.

Contents
Overview ........................................................1
Economic and Policy Setting.....................................2
1996 Farm Law...........................................2
The 107th Congress........................................4
Administration Views......................................4
House and Senate Action........................................5
Narrative Comparison: Summary.....................................8
Spending ................................................9
Commodity Programs.....................................10
Nutrition Programs........................................11
Selected Conference Issues.........................................12
Commodity Programs.........................................12
Program Crops...........................................12
Peanuts .................................................13
Dairy...................................................13
Farm Payment Limits......................................13
Federal Budget and Trade Agreements............................16
Conservation Programs........................................17
Concentration in the Livestock Sector.............................17
Comparison Caveats..............................................18
SIDE by SIDE COMPARISON: Old Law, House and Senate Bills, New Law
...........................................................19
I. COMMODITY PROGRAMS.....................................19
Title: .......................................................19
Definitions: .................................................19
A. Wheat, Corn Grain Sorghum, Barley, Oats, Upland Cotton, Rice, Soybeans
and other Oilseeds.........................................22
1. General...................................................22
2. Direct Fixed, Decoupled Payments.............................25
3. Counter-Cyclical Deficiency Payments and Target Prices...........28
4. Marketing Assistance Loans and LDPs.........................29
B. Wool and Mohair..........................................33
C. Honey...................................................33
D. Extra Long Staple (ELS) cotton, Dry Peas, Lentils and Chickpeas....34
E. Grazed Wheat, Barley, Oats, and Triticale...................35
F. High Moisture Corn and Sorghum..............................35
G. ELS and Upland Seed Cotton.................................36
H. Hard White Wheat Incentive Payments.......................36
I. Upland Cotton Competitiveness for Processors and Exporters........36
J. ELS Cotton Competitiveness for Processors and Exporters..........37
K. Peanuts..................................................38
L. Sugar...................................................40

1. Dairy Price Support Program (DPSP).......................43
2. The Northeast Dairy Compact and Counter-Cyclical Payments for
Dairy Farmers .......................................44
3. Recourse Loan Program.................................45
4. Dairy Export Incentive Program...........................46
5. Dairy Indemnity Program................................46
6. Fluid Milk Processor Promotion Program ...................46
7. Dairy Promotion and Research Program.....................47
8. Dairy Product Mandatory Reporting........................48
9. Dairy Studies..........................................48
N. Tobacco.................................................49
1. Flue-cured Tobacco.....................................49
2. Flue-cured Farm Reconstitutions...........................49
O. Specialty Crops...........................................49
P. Payment Limits............................................50
Q. Livestock Assistance.......................................52
R. Farm Income Estimates.....................................53
S. CCC Commodity Operations..................................53
T. Implementing Regulations...................................53
U. Counter-Cyclical Farm Savings Accounts.......................53
V. WTO Limits on Allowable Domestic Support...................54
II. CONSERVATION.............................................55
A. Environmental Conservation Acreage Program (ECARP)..........55
B. Conservation Reserve Program (CRP)..........................56
C. Wetlands Reserve Program (WRP.............................60
D. Environmental Quality Incentives Program......................62
E. Wildlife Habitat Incentives Program (WHIP.....................66
F. Farmland Protection Program (FPP)............................67
G. Other Programs (Including Technical Assistance)................69
H. New Programs.............................................72
III. AGRICULTURAL TRADE AND AID.............................85
A. Agricultural Export Assistance Programs.......................85
B. Food Aid Programs........................................89
C. Other Trade Provisions......................................98
IV. NUTRITION PROGRAMS.....................................103
A. Food Stamp Program,......................................103
B. Commodity Assistance Programs.............................119
C. Child Nutrition Programs ...................................122
D. Special Projects...........................................124
E. Effective Dates and Cost Estimates............................129
V. FARM CREDIT..............................................133
A. Farm Ownership/Real Estate Loans...........................133
B. Operating Loans..........................................135
C. Emergency Loans.........................................136
D. Administrative Provisions...................................137
E. Department of Agriculture Reorganization Act of 1994............142
F. Farm Credit System........................................142

VI. RURAL DEVELOPMENT.....................................146
A. Rural Community Advancement Program ......................146
B. Fund for Rural America....................................146
C. Telecommunications ......................................147
D. Value-added Agriculture Development........................148
E. Water and Waste Treatment Programs .........................149
F. Rural Entrepreneur and Business Investment Programs ............151
G. Strategic Rural and Regional Planning Programs.................152
H. Rural America Infrastructure Account.........................153
I. Other Rural Development Programs............................154
VII. RESEARCH................................................158
A. Funding Authority: University Research and Cooperative Extension
......................................................158
B. The Initiative for Future Agriculture and Food Systems...........158
C. Land Grant Institutions in Insular Areas.......................159
D. 1890 Land Grant Universities...............................160
E. 1994 Institutions (Tribally Controlled Land Grant Institutions......161
F. Priority Research..........................................162
G. International Research .....................................164
H. Biotechnology............................................164
I. Research Facilities.........................................164
J. Competitive Research Grants Administration ...................165
K. Biosecurity..............................................166
L. Research related to Rural and Beginning Farmers................167
M. Miscellaneous Research Provisions..........................169
VIII. FORESTRY...............................................171
A. Forest Landowner Assistance................................171
B. Suburban and Community Forestry...........................172
C. Watershed Forestry........................................172
D. Fire Protection ...........................................173
E. Forest Health Protection ...................................174
F. Forestry Research .........................................174
G. Renewable Resources (RREA...............................175
H. International Forestry......................................175
I. Tribal Forestry............................................175
J. National Forest Management ................................176
IX. MISCELLANEOUS PROVISIONS..............................177
A. Federal Crop Insurance.....................................177
B. Noninsured Assistance.....................................181
C. Emergency Crop Disaster and Income Loss Assistance............182
D. Market Loss Assistance.....................................183
E. Livestock Assistance.......................................183
F. Migrant and Seasonal Farmworker Assistance...................185
G. Tree Assistance and Caneberries.............................185
H. Energy .................................................186
I. Anti-trust and Competition...................................194
J. Animal Transport, Inspection and Health.......................196

L. Pseudorabies Eradication ...................................204
M. Preclearance Quarantine Inspections for Hawaii.................204
N. Non-Ambulatory Farm Animals..............................205
O. Animal Welfare Act (nonfarm animals).......................206
P. Genetically Engineered Products..............................209
Q. Pesticides and School Pesticide Management Plans...............210
R. Socially Disadvantaged Farmers and Ranchers...................211
S. Geographically Disadvantaged Farmers and Ranchers.............213
T. Assistant Secretary of Agriculture for Civil Rights ...............213
U. Farm Marketing Programs ..............................214
V.Organic Certification .......................................215
W. Food Safety Commission...................................215
X. Miscellaneous Studies, Reports and Task Forces................216

This report reflects the contributions of the following CRS analysts:
Farm Bill ProvisionsCRS Contributors
Summary, Overview, andJean Yavis Jones (7-7331)
Narrative Comparison
Commodity Programs:
Wheat, feedgrains, cotton, oilseeds, Jasper Womach (7-7237)
tobacco, and general rules
DairyRalph Chite (7-7296)
Peanuts and SugarRemy Jurenas (7-7281)
Specialty crops
Fruits, vegetables, nuts, floraBrenda Branaman (7-4277)
Honey, wool, mohairCarol Canada (7-7619)
ConservationJeffrey Zinn (7-7257)
Agricultural Trade and AidGeoffrey Becker (7-7287)
Nutrition ProgramsJoe Richardson (7-7325)
Farm CreditJerry Heykoop (7-0248)
Rural DevelopmentTadlock Cowan (7-7600)
ResearchJean Rawson (7-7283)
ForestryRoss Gorte (7-7266)
Federal Crop InsuranceRalph Chite (7-7296)
EnergyBrent Yacobucci (7-9662)
Animal WelfareAlex Segarra (7-9664)
Genetically Engineered Food
PesticidesLinda Schierow (7-7279)
For more information, see CRS Report RL31195, The 2002 Farm Bill: Overview and
Status; CRS Report RS21233, The 2002 Farm Law at a Glance.
Individual topic comparisons include the following CRS reports: CRS Report RL31524,
The 2002 Farm Bill: Comparison of Commodity Support Provisions with House and
Senate Proposals and Prior Law, by Jasper Womach; CRS Report RL31486, Resource
Conservation Title of the 2002 Farm Bill: Comparison of New Law with Bills passed by
the Senate and Prior Law, by Jeffrey Zinn; and CRS Report RL31271, Energy Provisions
the Farm Bill: Comparison of the New Law with Previous Law and House and Senate
Bills, by Brent Yacobucci.

A New Farm Law: Comparing the 2002 Law
with Previous Law and the House and
Senate Bills
Overview
President Bush signed a new farm law (P.L. 107-171, the Farm Security and
Rural Investment Act of 2002, on May 13, 2002. This followed almost two years
of hearings, committee deliberations, and floor debates. The House passed its bill
(H.R. 2646) on October 5, 2001. The Senate passed its version of this legislation on
February 13, 2002. The House and Senate conferees began formal meetings on
April 9, 2002 and reached agreement on their differences on April 22, 2002. The
House approved the conference agreement (H.R. 2646, H.Rept. 107-424). on May

2, 2002 by a vote of 280-141; the Senate approved it on May 8, 2002 by a vote of 64-

35.

The final law contains ten titles: Commodity Programs, Conservation, Trade,
Nutrition Programs, Credit, Rural Development, Research and Related Matters,
Energy, and Miscellaneous. At the time of its enactment, the new law was projected
to add $73.5 billion to federal funding for food and agriculture programs over 10
years.¹ This included new funding for farm commodity programs (+$47.8 billion);
conservation programs (+$17.1 billion); trade (+$1.1 billion); nutrition programs
(+$6.4 billion); research (+$1.3 billion); and rural development (+$870 million).
April 2002 CBO estimates projected new federal costs for the new law at $82.8
billion.
Total budget authority for programs in the new law (that is, baseline spending
plus new spending) was projected by the Congressional Budget Office (CBO) when
the legislation was approved to be $274 billion over its six-year life span. Of this
amount some $99 billion was expected to go to about 600,000 farmers in the form
of direct payments; $150 billion to support the cost of food stamps and commodity
assistance to some 17 million low income persons; and the remaining $25 billion for
conservation ( $21 billion), trade ($2.1 billion), rural development ($1 billion), and
research, forestry and energy ($2.5 billion) programs.

¹ Based on March 2001 CBO baseline estimates. March 2002 baseline estimates brought
the estimated new cost to a total of $82.8 billion over 10 years.

Economic and Policy Setting
Consideration of new farm policy began in 2001, more than a year before the
major provisions of the 1996 farm bill were due to expire. The early timing was
driven in large measure by the persistence of low prices for many major field
commodities, and the desire to address farm income problems through changes to
underlying farm policy, rather than by annual multi-billion dollar farm aid packages
like those enacted between 1998 and 2001.
The economic environment in 2001 was quite different from that existing in
1995-96 when the previous farm bill was considered. In 1995, world commodity
supplies were low, demand was growing, and prices for most program commodities
were at near record highs. This favorable economic climate, along with growing
pressure to bring federal spending under control, changed party control of the
Congress, and trade agreements to cut back domestic farm support, made the time
propitious for major policy changes. By 1998, however, prices for many major
commodities had begun to fall as previous growth markets overseas suffered
financial crisis and supplies overtook demand. When the House and Senate began
examining new farm policy options early in 2001, this followed three years of
stagnant commodity prices and “emergency” farm aid packages totaling over $ 33
billion. The economic environment made it easier for the Congress to approve a
congressional budget resolution that contained allowances for some $73.5 billion in
new farm bill spending. Subsequently, however, the rosy budget scenario changed.
A mild recession, declining revenues, and the mounting costs of the U.S. war
against terrorism precipitated by the events of September 11, 2001, have combined
to deplete the budget surplus. Some pointed to pending deficits as a reason to rethink
the wisdom of substantial increases in farm spending. Others, mostly farm groups
and their legislators, pushed for quick farm bill action fearing the loss of the allowed
increases. Still others worried about the implications of not passing legislation in
time for farmers’ spring planting decisions, and about the potentially costly
consequences of legislating in an election year. Different party control of each
chamber of Congress, a new administration reluctant to push for an early farm bill,
and other national events delayed completion of the new farm bill until May 2002.
1996 Farm Law. When the previous farm bill was being formulated in 1995
and 1996, the farm economy was enjoying a boom. Prices for most commodities
were at record highs, as was farm income. Moreover, foreign demand for U.S.
agricultural goods was expanding, particularly in Asia and Latin America. At that
time legislators in the Congress were also facing constraints because of severe budget
deficits and trade initiatives that added pressure for changes to farm policy that would
better control farm program spending and adapt U.S. policies to trade agreements.
The Federal Agricultural Improvement and Reform (FAIR) Act of 1996 (or
1996 Farm bill, P.L. 104-127) was enacted in April, 1996. This followed nearly two
years of deliberations and the extension for one year of previous law provisions

beyond their original 1995 expiration date.² The Agricultural Market Transition Act
(AMTA), Title I of the FAIR Act, contained commodity program provisions that
capped federal spending, ended land set-asides and target prices for most
commodities, and created a new farm income support system replacing target price
supports. Wheat, feedgrain, cotton, and rice farmers choosing to participate in this
new program were to receive fixed, gradually declining, decoupled annual payments
(so-called production flexibility contract (PFC) payments, sometimes called AMTA
payments).³ These were provided each year in lump sums, irrespective of market
prices or farmers’ planting decisions. The expectation was that over time the amount
of AMTA payments would decline and end completely after 2002, by which time
farmers would have adjusted to a free market, and would receive payments only
under the capped marketing loan assistance program.
Opponents of this gradual phase-out of federal assistance worried about what
would happen if prices and markets declined, as began to happen in late 1997 and
early 1998. Proponents pointed out that farmers getting PFC/AMTA payments in
good economic times would be able to put them away for a rainy day to soften the
impact of losses during low price periods. This point also was made in response to
those who objected to giving farmers payments when prices were high (as they were
in 1996) and economic conditions were good. Moreover, bill promoters pointed out
that there was still counter-cyclical income relief in the form of the marketing loan
assistance program, although it was capped.
When the 1996 farm bill was enacted, prices for most major commodities were
at record highs; demand was high and growing, and commodity supplies were tight.
By 1998, however, conditions in the farm economy had deteriorated. Demand for
many major commodities began to decline as a financial crisis hit Asia and Latin
America (two of the fastest growth markets for U.S. goods). Moreover, several
years of good worldwide growing conditions had increased supplies, and the value
of the American dollar was high relative to other countries, making U.S. goods
expensive compared to competitors. Farm income began to decline and the Congress
stepped in. The concept of self-sufficiency and independence from federal farm
programs eroded as the Congress approved, and the President signed seven
emergency farm aid bills in 1999, 2000, and 2001. These adhoc “emergency”
spending measures provided some $33 billion to agriculture (primarily to wheat,
feedgrain, oilseed, cotton and rice farmers). This assistance helped to stabilize farm
income for those receiving payments (primarily wheat, feedgrain, cotton and rice
farmers) It also helped to keep average farm family income higher than the national
average for all U.S. households.

² The transition in 1994 from Democratic to Republican control of the House and Senate
and a new congressional agenda and leaders, delayed completion of a new farm in 1995. The
Congress extended the expiring provisions of the 1990 law (P.L. 104-624) for an additional
year until another farm law could be enacted in 1996. Many of the key policy changes made
by the 1996 law were authorized through 2002.
³ Payment levels were “decoupled” from target prices and production, which, in the past,
were used to make payments to farmers when market prices fell below specified targets.

The 107th Congress. As the proportion of net farm income drawn from
federal subsidies grew, many in Congress and elsewhere began to push for longer
term changes to underlying farm policy that would offer more certainty to farmers
than does reliance on ad hoc annual financial aid packages. Thus, shortly after^th
coming into session in 2001, the 107 Congress began to examine agriculture policy
and solicit proposals from the various producer groups. Hearings were held by the
House and Senate, and testimony was presented both in Washington D.C. and in field
hearings throughout much of 2001. The House passed a bill (H.R. 2646) in October,
2001; the Senate began debate on its farm bill (S. 1731) in early December, but was
unable to reach agreement before the adjournment of the first session on December
19, 2001. A much revised Senate bill was passed on February 13, 2002. House and
Senate conferees agreed to a compromise bill, renamed the Farm Security and Rural
Investment Act of 2002, in late April. The House approved the conference agreement
on May 2; the Senate approved it on May 8, 2002. The President signed the measure
on May 13, 2002 (P.L. 107-171).
Administration Views. Like its predecessor, the Bush Administration did not
put forward a new farm bill. In its first year (2001), the Bush Administration took the
position that Congress should give careful consideration to major farm policy
changes before rushing through new legislation. In other words, it contended that a
new farm bill could wait until 2002. On September 19, 2001, as the House
Agriculture Committee prepared to mark up its farm bill, the Administration issued
a report that laid out a set of “principles” for farm policy.⁴ These principles focused
on: (1) the wide differences among farms and farming practices and the need for
better tailored policy to reflect these differences; (2) the tilt in existing policy toward
highly efficient commercial farms with no direct relationship between federal
benefits and a farm’s financial need; and (3) the need to rely on market rather than
government forces over the long term, with short term aid for “unexpected events”
beyond a farmer’s control.
In early October 2001, as the House began floor debate on its farm bill, the
Office of Management and Budget (OMB) issued a Statement of Administration
Policy (SAP) that opposed this legislation. It contended that the House bill
encouraged overproduction of commodities, did not target benefits to farmers most
in need, jeopardized global markets, and increased federal spending at a time of
economic uncertainty.
The Administration also objected to the Senate Agriculture Committee farm bill
(S. 1731) reported in late November, renewing its concerns about stimulating
overproduction and poor targeting of farm payments. It also expressed concern about
the bill’s potential to undermine U.S. efforts to phase out foreign countries’ export
subsidies and U.S. ability to meet current trade obligations. Finally, the
Administration took the position that the Senate-reported bill would authorize costly
and ineffective conservation programs, weaken accountability in domestic nutrition
programs, and result in unknown budget costs.

⁴ Food and Agriculture Policy: Taking Stock for the New Century.

In early January 2002, USDA officials indicated that they expected Congress
and the Bush Administration to agree on a farm bill by early March, 2002. OMB
officials informed Congress that the President now supported the $73.5 billion in
additional farm spending over ten years that was permitted by the FY2002 year
congressional budget resolution. This appeared to remove some of the concern that
failure to enact a new farm bill before the next budget resolution could risk loss of
new funding for farm bill programs.
In late February, 2002, following passage of the Senate farm bill, the
Administration indicated that it preferred the House bill’s more gradual approach to
new spending to the quicker expenditure of funds in the Senate amendment.
Administration officials feared the Senate approach would exhaust federal farm
support in the early years and force substantial amounts of new spending in later
years. They also preferred the lower marketing loan rates of the House bill. On the
other hand, USDA officials were concerned about the large proportion of new
funding in the House bill for farm commodity programs compared to the Senate bill,
and appeared to favor some of the more expansive nutrition program provisions of
the Senate bill. As time went on, some USDA officials expressed reservations about
Senate bill provisions that added marketing loan assistance for pulse crops (e.g. dried
beans, chick peas, lentils) and to the bill’s restriction on meat packer ownership of
livestock. The Administration offered no public alternatives to the House and Senate
proposals, but continued to press the conferees on the importance of U.S. trade
negotiating objectives (e.g., getting other countries to reduce their domestic
commodity supports), and the risk of exceeding the $19 billion limit on trade-
distorting domestic support that the U.S. agreed to under the WTO Uruguay Round
Agreement. The Administration also refused to take a public position on the
controversial payment limitation issue that was debated at length in the Senate.
By the time Congress approved the farm bill in May, 2002, the Spring planting
season was already under way. Moreover, mid-term elections were rapidly
approaching and several farm states/districts were viewed as keys to control of the
House and Senate. Thus, despite earlier reservations by Administration officials,
President Bush signed the new farm law on May 13,2002, saying “This bill is
generous and will provide a safety net for farmers. And it will do so without
encouraging overproduction and depressing prices. It will allow farmers and
ranchers to plan and operate based on market realities, not government dictates.”
House and Senate Action
The House Agriculture Committee farm bill (H.R. 2646) was introduced on
July 26, 2001. The Committee marked up this bill on July 27 and amended and
reported it on August 2. It was sequentially referred to the House International
Relations Committee, which reported it with amendments on September 10. Floor
debate on H.R. 2646 began on October 2 and continued through October 5 when the
bill was passed by a vote of 291-120. The bill was engrossed and sent to the Senate
on October 9, 2001.
On November 15, 2001, the Senate Agriculture, Nutrition and Forestry
Committee ordered reported an original bill (S. 1731) in lieu of S. 1628, a farm bill

introduced on November 2 by Committee Chairman Harkin. S. 1731 was adopted
by the Committee and reported to the Senate on November 27, and placed on the
legislative calendar.⁵ On November 30, the Senate began debate on a motion to
proceed to the consideration of S. 1731. Efforts to speed up consideration and obtain
a vote for final passage on this measure prior to the end of the first session were
unsuccessful.⁶ Several substitute amendments or alternatives to the Committee bill
were offered during debate in the first session. Among these was the Daschle
Amendment (S.Amdt. 2471), substituting for the Committee-reported bill. Offered
on December 11, it was the pending vehicle at the end of the first session.
Several substitutes to the Daschle substitute were offered and tabled (i.e.,
effectively rejected) in the first session. The rejected alternatives included:
^!An amendment offered by Senator Lugar (S.Amdt. 2473) that would
have replaced and completely revised the commodity provisions of
the Daschle substitute and substantially increased spending for
nutrition programs⁷;
^!A substitute amendment offered by Senators Roberts and Cochran
(S.Amdt. 2671) that would have modified the Daschle substitute to
reflect some of the concerns expressed by the Administration
(discussed previously), and
^!A substitute amendment (S.Admt. 2678) by Senator Hutchinson
(Ark.) offering the House-passed farm bill (H.R. 2646) as a
substitute.
Early in the second session of the 107^th Congress, debate was renewed over the
Senate farm bill (Daschle Substitute Amendment S.Amdt. 2471). On February 13,

2002, a substantially revised bill was approved by the Senate. This version,

renumbered as the Senate amendment to H.R. 2646, reflected some 31 amendments,
one of which, the so-called Managers’ Amendment (S.Amdt. 2859), was 397 pages
(longer than the entire House bill of 379 pages). Among the more controversial of
the many floor amendments agreed to was one that lowered limits or caps on farm
payments, and used the savings to increase spending for nutrition programs in ways
similar to those proposed by the previously rejected Lugar amendment. Less
controversial amendments added livestock feed assistance, another $2.4 billion in

⁵ The Committee filed a written report on S. 1731 on December 7, 2001 (H.Rept. 107-117)
⁶ Several efforts to invoke cloture in order to cut off debate on this legislation failed. The
first (a test vote on the motion to proceed to consideration) failed by a vote of 73-26.
Subsequent cloture votes failed by lesser votes - 53-45 and 54-43.
⁷ The Lugar proposal would have established, in lieu of the Senate bill’s target price and
income support provisions, a “whole-farm” income insurance program, available to all crop
and livestock farmers (i.e. livestock and fruit and vegetable growers not now receiving direct
payments). It would have provided for a federal payment equaling 6% of a farm’s receipts
that could be used to pay insurance premiums for guarantees of 80% of average income for
farmers. A pilot project testing this approach in a limited number of states was authorized
in the finally-approved Senate bill.

additional “emergency” farm assistance for FY2002⁸, and a myriad of new
conservation, rural development, research, and animal health and welfare provisions.
One formal and several informal meetings of House-Senate conferees ⁹and staff
took place prior to the spring recess. Resolution of the differences was not reached
before Congress left for the Easter and Passover holidays. However, press accounts
reported that at that time there was a tentative agreement on the amounts of new
funding to add to the major farm bill titles ($46 billion for commodity programs;
$17.1 billion for conservation programs; $6.4 billion for nutrition programs; $3.3.
billion for remaining titles — research, rural development, forestry, farm credit,
trade, etc.; and a $2.6 billion “cushion fund.” ) Assuming some $1.9 billion in crop
insurance program savings, this informal agreement kept total new spending in line
with the budget resolution allowance ($73.5 billion), according to press reports. The
amounts reportedly allocated by title were not officially substantiated, and whatever
agreement was reached at that time was subject to subsequent change when the
conferees resumed conference deliberations after the spring recess.
Staff meetings during the recess worked out minor, noncontroversial differences
between the bills, and developed options or alternative proposals that the members
might consider to resolve major differences when conference negotiations resumed.
The Conference Committee formally reconvened on April 9, 2002, and many
minor differences were quickly resolved. Less easy to resolve were differences over
how spending was to be allocated among the various titles, the marketing loan rates
and eligibility requirement, the pace of new spending, limits on farm payments, new
dairy policy, and meat packer concentration. Pressure to complete action came from
policy analysts who suggested that a new bill would have to be enacted quickly if its
policies were to apply to crop year 2002 production. There also was pressure from
political analysts closely watching contested elections in key agriculture states. They
predicted that the outcome of the farm bill debate could determine the outcome of the
mid-term elections and party control of the House and Senate, and that the legislation
could become more expensive in light of the election year timing.¹⁰ As time passed
without legislation, the USDA began to be pressured to publish the 2002 loan rates.
This was resisted by the Administration and others, who recognized the political
unacceptability of the existing law rates and the likely election year repercussions,
as well as the possibility that putting out the rates might delay congressional action
on a new law. Another pressure point came when a multi-billion dollar farm aid bill
for FY2002 was introduced by Senator Roberts (S. 2040) in case a new farm bill was
not enacted in time for the 2002 crops.

⁸ Funding designated as “emergency” does not require budget offsets.
⁹ Senate conferees were Senators Harkin (Iowa), Leahy (Vt.), Conrad (N.D.), Daschle
(S.D.), Lugar (Ind.), Helms (N.C.), and Cochran (Miss). House conferees were
Representatives Combest (Texas), Boehner (Ohio), Goodlatte (Va.), Pombo (Calif.), Everett
(Ala.) Lucas (Okla.), Chambliss (Ga.), Moran (Kansas), Stenholm (Texas), Condit (Calif.),
Peterson (Minn.), Dooley (Calif.), Clayton (N.C.) and Holden (Pa.).
¹⁰ Typically, farm bills are scheduled to expire in off-election (or odd) years in order to
avoid the pressure of election politics. This was not the case with the 1996 farm law and this
year’s bill, although in both cases, there were efforts to get legislation approved a year early.

In late April, after several weeks of negotiations, the House-Senate conferees
reached a conference agreement. The House approved the Conference Report (107-
424) on this bill on May 2. The Senate approved it on May 8, and the President
signed it on May 13 (P.L.107-171). Titled the Farm Security and Rural Investment
Act of 2002, the new law provides for $73.5 billion in new spending for food and
agriculture programs, based on 2001 baseline estimates by CBO. ¹¹ Using 2002
baseline estimates, CBO subsequently projected that budget authority added by the
new law would total $82.8 billion over ten years, bringing overall total spending for
these programs to $451 billion over the next ten years. More recent program cost
estimates, based on higher than expected commodity prices, suggest that the cost
might be lower.
Narrative Comparison: Summary
Although the House and Senate proposed farm bills varied from one another in
many respects, there were common features to both. First, although farm commodity
support was the main focus of each bill and generally got the most attention, the
measures proposed and finally approved contained much more than farm commodity
provisions. Other titles addressed conservation, trade, nutrition programs, credit,
rural development, research, and forestry. Moreover, both bills and the final law
restored some provisions struck by earlier law (e.g. federal target prices; the wool,
mohair, and honey programs) and added new programs (e.g. countercyclical
payments and payments for dairy and pulse crops).¹² The two chambers’ bills also
substantially increased funding for farm commodity programs, but differed over how
much of the increased funding should go for each of the payment vehicles (i.e., fixed
payments, marketing loan assistance, or countercyclical income support).
The House-passed farm bill had a 10-year life span; the Senate bill authorized
its programs for 5 years. The time span in the House bill related to provisions in the
FY2002 Congressional Budget Resolution (H.Con.Res. 83) that provided room for
some $73.5 billion in additional spending over the period 2002-2011 for a new farm
bill. The Senate 5-year authorization reflected a more traditional time-frame for
multi-year farm bills. The Conferees agreed to a six year farm bill.
Both bills proposed changes that utilized the $73.5 billion in increased funding
allowed by the budget resolution, although the Senate bill was re-estimated to spend
$6.1 billion more than that amount when CBO discovered in early March 2002 that
it had made an estimating error in its original calculations. The Senate measure also
used up its 10-year funding total more quickly than did the House, and added another
$2.45 billion in farm aid for FY2002, although this cost was not counted because it

¹¹ March 2002 CBO estimates (using updated baseline from April 2001) calculate that the
new budget authority added by the Farm law will total $82.8 billion.
¹² The Federal Agriculture Improvement and Reform (FAIR) Act of 1996, P.L. 104-127,
was amended several times to extend the planned expiration date for the dairy price support
program. Congress also temporarily restored federal aid for the honey, wool and mohair
programs as part of several “emergency” funding packages enacted to shore up farm income.

was designated as “emergency” spending. The conferees agreed to a more measured
pace of new spending than the Senate bill, and dropped the additional “emergency”
spending. The $73.5 billion mark allowed for new spending was met by the
conference agreement (although subsequent updated cost projections by the CBO
now estimate over $82 billion in new costs).
The House and Senate bills also continued a trend toward increasing federal
support for a broader array of conservation efforts and expanding payments to
farmers who engage in environmentally sensitive farming practices, although the
Senate provisions were more generous in this regard (+ $21.3 billion compared to
$15.7 billion in the House bill). The conferees agreed to split the difference,
increasing conservation funding by $17.1 billion over ten years.
The Senate bill also provided significantly more funding for domestic food
programs (+$9.3 billion) than the House (+$3.7 billion), with much of the difference
related to Senate provisions restoring food stamp eligibility to certain legal aliens.
Both bills also made changes to the food stamp program to assist states in
conforming program rules to those of other welfare programs and increase
commodity donations to domestic food programs. The conference agreement
adopted the Senate proposals regarding legal alien eligibility for food stamps. This
brought new10-year funding increases estimated at $6.4 billion for this program and
several commodity distribution programs, according to CBO, 2001 baseline
estimates. The Senate bill also contained extensive energy (ethanol) provisions that
were not in the House version. Some of these remained in the final version. Finally,
the Senate bill was more generous than the House with respect to funding for
research and rural development. In the end, funding increases for both of these
categories were reduced to shore up spending for farm commodity and food
assistance programs.
Some of these and other significant differences between the bills are described
in more detail below.
Spending. The FY2002 Congressional Budget Resolution (H.Con.Res. 83)
adopted in 2001 made room for additional agriculture spending of $5.5 billion for
FY2001, $7.35 billion in FY2002, and $66.15 billion over the following nine years
for food and agriculture programs. This provided for a total of $73.5 billion in new
budget authority for FY2002-2011above baseline spending. The expectation was that
this new money would be used to finance new policies and that most of it would go
for farm commodity programs, although this was not required. FY2001 money was
spent for emergency assistance. The allowable spending for FY2002 and beyond was¹³
intended either for emergency farm assistance or a new farm bill.
Both the House and Senate bills originally were estimated by CBO to cost $73.5
billion over the 10-year period, FY2002-2011. This included funding for farm

¹³ As noted above, the Senate approved a floor amendment to its farm bill that adds $2.4
billion in “emergency” farm assistance. A waiver to the budget rules requiring offsets of
additional spending for “emergency” reasons was approved by a voice vote so that this
additional spending is not counted against the Senate farm bill for FY2002.

commodity programs as well as nutrition programs, trade, research, conservation, and
rural development, among other things. It did not reflect the additional $2.45 billion
in farm “emergency” assistance for FY2002 that the Senate added to its bill.¹⁴ It also
did not reflect some $6.1 billion in higher costs that the CBO later said were left out
of earlier Senate bill projections of commodity program costs because of an error in
the original calculations. The revised estimates brought new spending in the Senate-
passed bill to a total of $79.6 billion. The final conference agreement brought
additional 10-year spending back to the $73.5 billion total allowed by the budget
resolution, based on 2001 baseline estimates. When CBO re-estimated baseline
spending in March 2002, the total new spending provided by the new farm bill rose
to $82.8 billion.
The additional funding in the new farm bill, when added to April 2002 baseline
estimates (i.e. spending estimated without any change in previous law), will bring
total spending for all of the programs in the farm bill to $273.9 billion over the next
six years (the life of the bill), according to CBO estimates. This represents an
estimated $222.2 billion in baseline spending and $51.7 billion in new spending.
Of the 6-year total spending (baseline plus increases), CBO estimated that the
new law will provide:
^!$98.9 billion for commodity support programs;
^!$21.3 billion for conservation;
^!$149.6 billion for nutrition programs, mostly food stamps;
^!$2.1 billion for agricultural trade;
^! $1 billion for rural development;
^!$760 million for research;
^!$405 million for energy related provisions, and
^!$85 million for forestry
Commodity Programs. Under both the House and Senate bills, well over
half of the new spending would have gone for commodity programs — $48.8 billion¹⁵
under the House bill and $46 billion under the Senate bill. However, the bills
differed with respect to how much of this commodity program spending should go
for fixed annual “contract” payments, new counter-cyclical income relief, or higher
marketing loan assistance (i.e., loan deficiency payments).
Based on 2002 baseline estimates, the House bill would have added an
estimated $25.1 billion to commodity program budget authority over 5 years, and
$48.8 billion over 10 years ($7.7 billion more than the originally estimated Senate
bill). Initial estimates for the Senate farm bill showed it raising total commodity
program spending (Title I) by $26.8 billion over five years and by $41.1 billion over

¹⁴ A voice vote to waive this additional funding as “emergency” assistance was approved
by the Senate as part of an amendment (S.Amdt. 2839; this designation means that the
additional funding does not require offsets in spending elsewhere to conform to budget
rules.
¹⁵ This amount assumes the $38.9 billion originally estimated by CBO plus the $6.1 billion
CBO has indicated it underestimated for the cost of the commodity provisions in that bill.

ten years. Adjusting for the $6.1 billion calculating error by CBO, the Senate farm
bill’s commodity program costs would have risen by $30.5 billion (over five years)
and just under $46 billion over 10 years. This does not count the additional $2.4
billion in FY2002 “emergency” farm assistance the Senate added since this was
designated “emergency spending” and not subject to budget offsetting rules for new
spending.
The final law (Conference agreement) increased spending for commodity
programs by a total of $25.6 billion and $47.8 billion, respectively, over five and ten
years — more than the 10-year added cost of the Senate bill commodity provisions
($46.1 billion), and slightly less than the House bill ($47.97 billion). Based on new
(2002) baseline estimates for the six-year life span of the new law, CBO projected
that the government would spend $37.6 billion more for commodity programs under
the new farm bill. This represented 73% of the new funding for all of the titles of the
new farm law. Total spending for farm commodity programs (i.e., baseline plus new
spending) will be $98.9 billion over 6 years, according to CBO estimates, and
represents 36% of spending for all of the programs in the new farm law.
The House and Senate proposed about the same amount of new funding ($12.7-
$12.9 billion) for fixed (formerly called “contract,” ) payments to “program” farmers
(i.e., wheat, feedgrain, cotton, rice, and oilseed farmers). The conferees agreed to
less than was proposed by the House and Senate bills ($9.9 billion) for fixed
payments. The new counter-cyclical program proposed in the House bill was
projected to cost $37.2 billion over ten years; the Senate’s counterpart was less
generous ( $19.1 billion). The conferees more or less split the difference, agreeing
to new spending of $29.4 billion for counter-cyclical income support. More
extensive differences were in each chamber’s marketing loan assistance provisions.
The Senate bill would have added to marketing loan assistance, proposing changes
that would have increased spending by $18.7 billion over ten years. The House, on
the other hand, proposed to reduce spending for marketing loan payments by some
$5.8 billion over ten years. The conferees agreed to an increase of $2.2 billion in
marketing loan assistance over ten years.
Nutrition Programs. The Senate proposed to raise spending for nutrition
programs (primarily, the food stamp program) by $9.3 billion over 10 years,
compared to an increase of $3.7 billion for these programs in the House bill. The
conferees compromised on a 10-year spending increase of $6.4 billion for these
programs (9% of all new spending in the bill), and adopted the Senate proposal to
restore food stamp eligibility to many legal aliens cut off by the 1996 welfare reform
law. Under the six-year life span of this legislation, nutrition programs are projected
by CBO to cost a total of $149.6 billion. This includes an increase of $2.8 billion
(1.9% in funding) over the 6-year period.
The large funding increases for nutrition programs in the Senate bill were
derived, in part, from savings in commodity program spending due to a provision that
would have substantially lowered the limit on commodity payments to farmers.
According to CBO estimates, the payment limit reduction in the Senate bill would
have lowered commodity program spending by $695 million over 10 years. [The
payment limit is discussed in more detail later in this report in the selected issues
section.]

Selected Conference Issues
Commodity Programs
Program Crops. Both the House and Senate bills maintained the system of
fixed annual payments to wheat, feedgrain, cotton and rice farmers that replaced
target price supports in 1996. Both bills also added soybeans and peanuts to the crops
that are eligible for these fixed payments. The House bill provided more funding for
contract payments than did the Senate. Both bills also maintained marketing loan
assistance (adding peanuts, as well), but the House bill set loan rates at, or slightly
below, those set by previous law, thus reducing spending for this program by $5.8
billion over 10 years, according to CBO. The Senate substantially raised these rates,
adding some $18.3 billion for marketing loan assistance. Both bills added a new
program of counter-cyclical income support (which also included peanuts). In sum,
the House approach tended to rely more heavily on fixed annual payments and
greater levels of counter-cyclical income support than the Senate, which put more of
its new funding into substantially raising marketing loan assistance. In overall
spending for commodity programs, the conferees agreed to spend just under $48
billion over ten years, coming closer to the House mark ($48.7 billion) than the
Senate ($46 billion). The conference agreement approved 10-year funding increases
among the three commodity programs as follows:
^!$9.9 billion in fixed payments (less than both House and
Senate bills);
^! $29.4 billion for counter-cyclical income support (
versus $37 billion in the House bill and $19 billion in
the Senate bill); and
^!$1.7 billion in marketing loan assistance (the House bill
would have reduced this assistance by $5.8 billion; the
Senate bill would have added $18.3 billion in new
spending).
Both bills maintained the 1996 policy changes that provide broad planting
flexibility to farmers and remove annual cropland set-aside tools formerly used to
reduce surplus production and/or control federal farm spending. To protect the
interests of fruit and vegetable producers (who do not receive federal subsidies and
who worried that some of the subsidized crop producers might plant these alternative
crops as well as their subsidized program crops) both the House and Senate bills
maintained the planting restriction on most fruits and vegetables by program farmers.
Although some farm groups supported the types of production controls in place
before the 1996 law, most did not, and these were not restored under the new farm
law.
Another commodity proposal was tested by a Senate bill provision that added
pulse crops (dried peas, lentils, chickpeas) to the mix of commodities eligible for
marketing loan assistance. Proponents contended that these crops should receive the

same benefits as other field crops and that this would encourage production and
greater rotation of other crops (e.g., wheat and feedgrains). Objection to this came
from some who saw the addition of new crops as moving in the wrong direction, that
is, expanding federal support and market interference in farm policy. Provisions in
both bills added soybean eligibility for fixed payments and countercyclical income
support; restored previously discontinued farm support payments for honey and
wool (the Senate bill also added mohair), and added new direct payment programs
for peanuts and fluid milk. The conferees adopted provisions adding most pulse
crops, soybeans, peanuts, honey, wool and mohair to the list of commodities eligible
for direct farm payments.
Peanuts. Both bills terminated the peanut poundage quotas and nonrecourse
loans and created a compensation plan for peanut quota holders, set at a much lower
loan rate, and, as noted above, made peanut producers eligible for marketing loan
assistance and fixed and counter-cyclical payments. The end of the quota program,
despite the generous buy-out provisions ($220/ton/year for five years) in the
conference agreement, drew objections from some in certain peanut producing
districts. Among the concerns expressed were the impact of this on small growers
and on those retired farmers and/or spouses who relied on leasing quota for their
income. Despite these objections, the quota buyout (in both bills) was agreed to by
the conferees.
Dairy. Disagreement about the extension, or reauthorization of the expired
Northeast Dairy Compact and its possible expansion to other regions of the country
split along regional lines. The House farm bill did not extend the Northeast (NE)
Dairy Compact (which expired September 30, 2001). Efforts to include an extension
of this compact in S. 1731 threatened to delay or stop deliberations in the Senate and
a compromise proposal was included in the final Senate bill. This would have
replaced the NE Dairy Compact with a new counter-cyclical payment program for
dairy farmers in all states, with one quarter of the $2 billion in funding allotted going
to Northeast states. The earmark of funds for the Northeast was intended to offset
the loss of the higher farm milk prices permitted by the defunct Compact in that
region. The conferees agreed to a revised counter-cyclical payment program for dairy
farmers, without the set-a-side for Northeast farmers. Instead of earmarking $500
million of its $2 billion cost for Northeast states as in the Senate bill, the Conference
agreement will make payments to all dairy farmers whenever the monthly price of
fluid farm milk in Boston falls below $6.94. The payments will be available on up
to 2.4 million pounds of annual production, thus targeting benefits to small and mid-
sized operations. This compromise was crafted largely by Northeast legislators
representing generally small dairy operations. It, as well as earlier efforts to extend
the NE Dairy Compact, was opposed by many from the Midwest, who regard this
as a support system that will continue to encourage price-depressing overproduction,
and continue an unwise policy that favors regions with small producers to the
detriment of mid-western, and western producers. Those favoring countercyclical
income assistance contend that it will benefit all farmers by reducing the impact of
volatile prices, and that it will be available to all dairy farmers, not just those in one
region. Some, however, are concerned about the budget implications of a new
“uncontrollable” farm support program and its implications for U.S. efforts to get
European and other trading competitors to reduce their domestic support programs.

Farm Payment Limits. Current law limits on payments to farmers were
revised and applied to new programs under both the House and Senate farm bills.
The Senate limitations, which were more stringent than those in the House bill, were
opposed by many farm groups. Proponents of lowering the payment cap contend
that farm programs benefit most (in terms of federal dollars) those who need aid the
least (i.e., larger, wealthier farmers), while smaller, high-risk farmers or those
ineligible for direct payments (such as fruit, vegetable, and livestock producers) get
little or nothing. They also charge that the current system encourages the growth of
large corporate farms and helps to drive small and mid-sized farms out of business.
Some also assert that “excessive” payments undermine the credibility of and popular
support for a farm policy that purports to be designed to help small and mid-sized
farmers. Opponents of payment limits (which include nearly all of the farm
commodity groups) contend that farm policy should be based on productivity and
efficiency and that payment limits discourage both. They suggest that basing farm
payments on income or need would mean rewarding many farmers who are
inefficient or unwise in their farm management, and would discourage farmers from
making profitable efficiencies. Moreover, they point out that many of the farms
receiving large payments also have similarly large costs of production and might not
operate as efficiently or productively if federal support was not tied in some way to
output.
The farm payment limits first imposed in 1970 generally have been high enough
so that they rarely resulted in any cut-off of farm payments. Moreover, mechanisms
for getting around the caps have been available. In the late 1990s, however, when it
appeared that loan deficiency payments to some farmers might exceed the limits then
in place, Congress doubled the limit on these payments. ¹⁶ The doubled levels have
been operable for the past several years. A list of farmer payments released by the
Environmental Working Group (EWG) rejuvenated interest in the farm payment
limit issue. The EWG data show a large proportion of federal farm payments,
sometimes in very large amounts, going to small numbers of large farms and also to
some wealthy absentee landlords. This study was widely reported by the media and
reportedly influenced proposals for the more stringent payment limits that were¹⁷
added to the Senate farm bill during floor debate.
The House bill raised the current law overall limit on commodity program
payments from a total of some $460,000 per year, per farmer, to $550,000, but did¹⁸
not apply this limit to the value of commodity certificates. It also provided a

¹⁶ From $75,000 to $150,000. This followed substantial increases in farm spending enacted
under several multi-billion farm “emergency” aid packages.
¹⁷ New York Times, May 18, 2001, Farm Subsidies: Who Gets Fed? Washington Post,
January 24, 2002, More Subsidy Money Going to Fewer Farms. See also, the Environmental
Working Group Farm Subsidy Database at www.ewg.org
¹⁸ The previous law amount reflects the total allowance, including additional amounts
provided by emergency market loss payments in previous years, and allowances for the
three-entity rule and spouses. The amount shown reflects the fixed contract payment limit
of $40,000 set by the 1996 farm law, plus an additional $40,000 cap for emergency market
loss payments for a total of $80,000. To this is added the $150,000 limit on marketing loan
(continued...)

separate payment limit for peanuts. The Senate bill lowered the current law payment
limit to $275,000 for all crops (including peanuts and other newly covered crops) and
included the value of marketing certificates under this limit. Under the House and
Senate proposals the limits would have worked as follows:
^!Fixed payments and counter-cyclical payments. The House bill
set a maximum of $50,000 per farmer per year for fixed “contract”
payments, and $75,000 per farmer per year for newly created
counter-cyclical payments for regular program crops (grains, cotton,
rice, oilseeds). Thus, the House bill set the payment cap for both
these programs at $125,000. A separate $75,000 limit for counter-
cyclical payments applied to the new peanut program. The Senate
bill set a combined maximum per person payment of $75,000 for
both fixed payments and counter-cyclical payments, and applied this
limit to all eligible crops, including the newly eligible peanuts.
^!Marketing Loan Payments. Under the House bill, marketing loan
assistance would have been capped at $150,000 for wheat,
feedgrains, oilseeds, cotton and rice, and there would have been
separate payment limits of $150,000 for each of the peanut, honey,
wool, and mohair programs.¹⁹ The Senate bill establishes one limit
of $150,000 in marketing loan benefits for all of the eligible
commodities (wheat, feedgrains, oilseeds, cotton, rice, honey, wool,
lentils, dry peas, and chick peas)²⁰. It also applied this limit to the
value of commodity certificates and loan forfeitures which, under
previous law and the House bill, are not counted toward the payment
limits.
^!Three-entity Rule and Spouse Allowance. The House bill
maintained the former law three-entity rule and spouse allowance.
These permit a spouse to qualify for payments, and permit additional
payments for up to two additional farms (at half the first farm cap).
In effect, the House bill allows for an additional $275,000 in
commodity program payments for a qualifying farmer. The Senate
bill maintains the spouse benefit, capped at $50,000, but eliminates
the separate payment cap for additional farms. Under the Senate bill,
all payments to an individual farmer, regardless of the number of
farms, are counted toward the $225,000 payment limit.

¹⁸ (...continued)
benefits (doubled from 1996 farm law by subsequent congressional actions) and the three-
entity rule and spouse allowance which is capped at a total of $230,000 (or half the payment
allowance) for a maximum of $460,000 per farmer. (See CRS report RS21138 for more
information on payment limits.)
¹⁹ The 1996 farm bill set $75,000 as payment limit for LDPs, but this was doubled by
subsequent legislation when the cap would have cut some farmers off payments at that level.
²⁰ The Senate bill does not contain assistance for mohair.

^!Wealthy Individuals. The Senate bill contains language that would
prohibit those with adjusted gross incomes above $2.5 million
annually from receiving any farm payments. This provision was
intended to counter media and other critics who often point to
receipt of farm payments by wealthy public figures (e.g.,
professional athletes and movie stars) as an illustration of poor farm²¹
policies. There is no comparable provision in the House bill.
The 10-year savings from the Senate payment limit provision, which was used
by the Senate bill to help fund a food stamp program expansion, was estimated by the²²
CBO at $784 million ($454 million over 5 years). Most analysts predicted that the
impact of the Senate payment limit would have been the greatest for large rice and
cotton farmers whose federal payments generally tend to be larger than those
producing other field crops. The conference agreement to allow unlimited gains from
commodity certificates helped to reach a compromise on payment limits. The
conference agreement included:
(1) new payment caps that will apply to the 2003 crops (not 2002 crops);
(2) fixed payments that will be capped at $40,000;
(3) counter-cyclical payments limited to $65,000;
(4) marketing loans capped at $75,000 per farmer per year;
(5) allowance for payments for up to two additional farms and spouses;
(6) no limits on the value of commodity certificates; and
(7) a prohibition on farm payments if a person’s gross income (from non-farm
income) exceeds $2.5 million annually.
[For more detailed information on this topic and the crops it would affect, see CRS
Report RS21138, Farm Commodity Payment Limits: Comparison of Proposal]
Federal Budget and Trade Agreements
The return of deficit spending or at least substantially depleted budget surpluses
because of the War on Terrorism and an economic slowdown, raised questions about
how much funding would be available for changes in farm policy by the time
Congress approved legislation. There was some concern about whether the
additional money agreed to in the past budget resolution ($73.5 billion) would be
honored if a farm bill was not passed before the next budget resolution (May 2002).
Both the Administration and congressional leaders indicated their intention to honor
the additional money provided for farm policy changes that was allowed by last
year’s congressional budget resolution — some $73.5 billion in additional funding

²¹ The lower payment limits were added during Senate floor debate under an amendment
(S.Admt. 2826) offered by Senators Dorgan and Grassley.
²² These figures, changed from the previous report, represent the most recent CBO revisions
of Senate bill costs. Some Senate proponents of the payment limit suggest that these savings
estimates are understated because the CBO did not fully account for the savings associated
with counting the value of marketing loan writeoffs. See [http://www.agweb.com], April 10,

2002.

over ten years. Despite this agreement, concern about the cost of the bills remained.
Budget-conscious policymakers watching budget surpluses turn into deficits
expressed concern about the cost of the legislation, and their doubts were reinforced
when the CBO discovered that it had underestimated the cost of the Senate-passed
bill by over $6 billion. In the end, the conference agreement held to the allowed
$73.5 billion (although subsequent CBO estimates using March 2002 baselines
project that it will cost over $82 billion). More recent estimates of commodity
market prices by the USDA suggest that commodity program provisions may cost
less than originally estimated. Efforts in the 107^th Congress seeking to use the savings
from the revised program costs to pay for some $6 billion to additional agriculture
spending for disaster relief. This was not approved.
The Administration was concerned that the new commodity program spending
in both the House and Senate Farm bills might exceed the $19 billion cap on
spending for market-distorting domestic farm support that the U.S. agreed to in the
Uruguay Round WTO trade agreements. To deflect this concern, both bills contained
provisions (adopted in conference) that require the Secretary of Agriculture to make
adjustments if the spending cap is breached. Some policy analysts question the
mechanics of the adjustment provisions and their practical application. Strong
criticism of the new subsidies in the farm bill has come from some of our trading
partners (particularly the EU and Japan) who are being pressured by U.S. negotiators
to substantially reduce their domestic support programs. Other criticism has come
from less developed countries and their supporters who contend that the generous
farm subsidies in the U.S. (as well as the EU and Japan) are harming economic
development and agricultural productivity in those nations.
Conservation Programs
Both the House and Senate bills increased spending on conservation programs,
as did the finally-approved version. Major points of difference between the chambers
included how much additional funding should be provided for these programs versus
farm commodity programs, what portion, if any, of the funding should be mandatory,
whether new programs or benefits should be created, and how much funding they
should receive. The Senate bill provided significantly more money (some $6 billion)
for conservation programs than the House bill. In the House, an attempt (Kind-
Boehlert Amendment) to add more spending for conservation programs by taking
away some of the new funding for commodity programs was unsuccessful. The
difference in spending between the House and Senate bills for conservation programs
was a difficult issue in the Conference Committee, and was made worse when CBO
discovered that it had underestimated the overall cost of the Senate bill by some $6
billion. The conferees compromised on the funding difference between the House
and Senate, essentially cutting the difference in half.
A Senate provision, strenuously opposed by some farm groups who feared the
potential loss of state and local control of water rights to the federal government
through farmer participation in wetlands and other conservation programs, was
dropped in conference. Environmentalists objected to the changes made to the
Senate measure. In their view, the conference agreement weakened the environmental
and conservation standards for participating in the programs. Concern also was raised
by some trading partners who fear that the environmental payments are a cover for

further domestic farm support. Some USDA officials also questioned the cost-
effectiveness and environmental benefits of some of the new conservation programs.
Concentration in the Livestock Sector
A livestock packers amendment offered by Senator Tim Johnson and others
was accepted during Senate floor debate. It would have prohibited meat packers
from owning or controlling livestock within 14 days of slaughter. Designed to help
protect livestock producers from price manipulation by large meat packing
companies, this amendment drew fire from some. Opposition centered on the fact
that the amendment did not apply to poultry (a strong competitor to beef and pork),
and that it might endanger the use of marketing contracts. Some believe that these
contracts help producers and processors plan and market their goods to the benefit
of both. However, there are others who see contracts (especially the confidentiality
clauses in them) as a way for processors to unfairly manipulate livestock prices to
producers to keep them low. The Senate-proposed restriction on packer ownership
was supported by the American Farm Bureau and Iowa Pork Producers Association,
two major farm interest groups. It was opposed by most meat processors and the
National Cattle and Beef Association and National Pork Producers Council. An
amendment modifying the meat packer restrictions to clarify that they did not affect
livestock under marketing contracts was adopted during Senate deliberations. The
restrictions on packer ownership were a sticking point in conference deliberations.
Several reports analyzing the proposed restrictions questioned their likelihood of
reducing concentration in the livestock sector or raising prices for producers, which
are the intended goal of this legislation. There was stiff opposition in the House to
the packer ownership restriction and it was dropped from the finally enacted law.
Predictions by economists that meat prices will remain low in 2003 make it likely
that this issue will be revisited in the 108^th Congress. [For more information on this
issue, see CRS Report RL31553, Livestock: A Ban on Ownership and Control by
Packers.]
Comparison Caveats
The following table compares provisions of previous law to those in the House-
passed farm bill (H.R. 2646), the Senate-passed bill (an amendment to H.R. 2646)
and the finally enacted law (P.L. 107-171). It supercedes an earlier CRS report that
compared only the House and Senate-passed bills to then-current law. The report
is intended to identify the major differences from previous law and new law and
between the House and Senate, and to provide an historical record of the issues that
legislators grappled with as they pursued a 2002 farm bill. It is designed to assist
those interested in the major issues surrounding the various titles of the farm bill and
their resolution by the House-Senate Conferees. Although the report is quite
extensive, it does not cover every provision in the proposed farm bills and new law,
largely because of the enormous size of the various bills and final law. ²³ It does,

²³ The USDA Department of Agriculture (USDA) website includes comprehensive
(continued...)

however, cover most of the significant or controversial changes that were proposed
and those where there were major difference between each of the chambers’ bills and
previous and new law. Judgments about which provisions to include were made by
each of the CRS specialists covering the relevant title, with some modifications and
additions by the coordinator. The comparison is presented under topic headings,
using the titles of the House and Senate farm bills as the general organizing theme
(although this does not work in all cases because of the differences in the bills’
configurations, and because topically related provisions are not all in the same
sections). Funding information in this report is based on CBO estimates, unless
otherwise noted.

²³ (...continued)
comparisons for programs by agency as well as comparisons by the USDA-Economic
Research Service. [http://www.USDA.gov].

SIDE by SIDE COMPARISON: Old Law, House and Senate Bills, New Law
I. COMMODITY PROGRAMS
COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ricultural Market Transition ActFarm Security Act (FSA) ofAgriculture, Conservation andThe Farm Security and Rural
I of the Federal2001, Title I, Subtitles A, B,Rural Enhancement (ACRE) ActInvestment Act of 2002
riculture Improvement and Reformand D.of 2001, Title 1, Subtitles A and
, C, D, and E,B.
riculture laws.
le:
ⁱ^{ki/CRS-RL31704}ederal Agriculture Improvement andFarm Security Act of 2001.Agriculture Conservation andThe Farm Security and Rural
^g/wAIR) Act of 1996 (P.L. 104-[Section 1]Rural Enhancement (ACRE) ActInvestment Act of 2002 (P.L. 107-171)
^s^.or [ Section 101]of 2001. [Section 1]
^le^ak
^://wikii n i tion s:
^h^ttp
“Considered Planted” is defined1. No provision1.”Considered Planted” is1. No provision.

IR Act to mean “acreagerevised to mean any acreage
planted that producers were
ricultural Act of 1949, and otherprevented from planting because
reage the Secretary considers fair andof a drought, flood, or other
natural disaster or condition
any reduced or divertedbeyond control of the owner or
e; (b) acreage that could not beproducer, as determined by the
of drought, flood or otherSecretary, and any acreage not
r condition beyond farmerplanted to another contract
rol; (c) acreage equal to the differencecommodity (except for a contract
tween permitted acreage for a crop andcommodity produced under an
planted crop if it is devoted toestablished practice of double
cropping). [Section 102]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ommodities permitted under programs for
ears 1991-1997; (d) any acreage the
ecretary determines is necessary to
ablish a fair crop acreage base; (e)
eage up to 20 percent of crop acreage
rains or wheat if planted to
peas and lentils; and (f) the crop
base if producers forego farm
ments and do not plant to the crop or
fruit or vegetable not designated as
dustrial or experimental. [Sec. 102(2)of
AIR Act and Section 503(c) of the
ⁱ^{ki/CRS-RL31704}ricultural Act of 1949 (which is one of
^g/waws whose provisions
^s^.or
^le^akemporarily or
revised or amended by farm
^://wiki
^h^ttp
“Contract” and “Production2. No Provision2. Defines “Contract” as a2. No provision
lexibility Contract” defined to mean acontract entered into under
to under the terms ofsubtitle B, Nonrecourse
ection 111 of the FAIR Act of 1996,Marketing Assistance Loans and
ed , annual, lump sumLoan Deficiency Payments.
ayments to farmers. [Section 102(3) of[Section 102]
]
“Contract Acreage” is defined to3. No Provision3. Redefines “contract acreage”3. Uses phrase “Base Acres” and
ean one or more crop acreage basesto mean the acreage determineddefines it with respect to a covered
ed for contract commodities underunder section 111(f) of the bill,commodity to mean the number of
riculture Act of 1949 thatwhich refers to “direct andacres established under section 1101
been in effect for the 1996counter-cyclical payments.”(Establishment of base acres and
isting(Section 102(4)]payments acres). [Section 1001]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
rget price support programs under
air Act of
[Section 102]
“Contract Commodity” is defined to4. “Covered Commodity”4. “Contract Commodity” is4. House Provision [Section 1001]
rain sorghum, barley,replaces “covered” forredefined to add oilseeds to
[Section 102]“contract” and addscurrent law. [Section 102]
soybeans, and other oilseeds
to current law . [Section

100]

“Contract Payment” is defined to5. No provision5. “ Contract Payment” is a5. No provision
ⁱ^{ki/CRS-RL31704}ibility contractpayment made to wheat, corn,
^g/wments to wheat, corn, grain, barley,grain sorghum, barley, oats,
^s^.or
^le^akats, upland cotton and rice farmersupland cotton, rice and oilseed
farmers under Subtitle B,
^://wikiNonrecourse marketing assistance
^h^ttploans and loan deficiency
payments. [Section 102]
“Counter-cyclical Payment”6.”Counter-cyclical6. No definition6. House Provision [Section 1001]
Payment” means a payment
made to producers under
section 105, Availability of
Counter-cyclical Payments.
[Section 100]
“Fixed Decoupled Payment” 7. “Fixed Decoupled7. No definition.7. Replaces “fixed decoupled payment”
Payment” means a paymentwith “direct payment.” [Section 1001]

made to producers under
section 104 Availability of

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
Fixed Decoupled Payments.
[Section 100]
“Farm Program Payment Yield”8. “Payment Yield” is the8. “Payment Yield” means the8. In general, “payment yield” means
eans the farm program payment yieldyield established underpayment yield determined underthe yield established under section 1102
crop of a contractsection 102 for a coveredSection 111(g) [Section 102] for a farm for a covered commodity.
under section 505 of thecommodity. [Section 100]“Updated Yield” means the payment
riculture Act of 1949 [Section 101]yield elected by the owner of a farm to
be used in calculating counter-cyclical
payments. [Section 1001]
“Loan Commodity” means each9. No Provision9. “Loan Commodity” means9. Senate provision amended to
ⁱ^{ki/CRS-RL31704}ract commodity, extra long staplewheat, corn, grain, sorghum,substitute “soybeans and other oilseeds”
^g/w[Section 102]barley, oats, upland cotton, estrafor “oilseeds,” specify “small
^s^.or
^le^aklong staple cotton, rise, oilseeds,chickpeas,” and add “mohair.”
wool, honey, dry peas, lentils and[Section 1001]
^://wikichick peas. [Section 102]
^h^ttp
“Target price”10. “Target Price”means10. No provision10. House definition. [Section 1001]
the price per bushel (or other
ted for most fieldappropriate unit) of a
the AMTA of 1996.covered commodity used to
determine the payment rate
for counter-cyclical
payments.[Section 100]
at, Corn Grain Sorghum, Barley, Oats, Upland Cotton, Rice, Soybeans and other Oilseeds.
eneral
Sign-up period is required to begin notEstablishes a sign-up period,Establishes a sign-up period, thatUSDA is to provide notice to farmers,
ter than 45 days after enactment and endlasting not more than 180begins not less 45 days afteras soon as practical after enactment, of

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ust 1, 1996. Production flexibilitydays after enactment, duringenactment and lasts for 180 days,the opportunity to sign agreements and
Cs) cover 7 years, 1996 thruwhich producers signduring which producers signestablish base acres for direct and
[Section 112]“agreements” covering crop“contracts” covering crop yearscounter-cyclical payments. [Section
years 2002 thru 2011 (102002 thru 2006 (5 years).1101]
years). [Section 110][Section 111]
ase Acres and Payment Acres
’s base acres and payment yieldsThe base acres for each cropSame as House bill. [SectionSame as House and Senate bills.
o calculate the program benefitsare either the acres specified111][Section 1101]
the producer. The base acres and yieldsin existing PFC contracts, or
ible crops are those that would haveaverage acres planted to
ⁱ^{ki/CRS-RL31704}piringeligible crops from 1998 thru
^g/wram. Under the expiring program, the2001. Accommodation is
^s^.ore base” for each program crop ismade for double cropping,
^le^ake average acres planted/consideredpeanut acres, and CRP acres.
^://wikianted the prior 5 years for wheat, feedrains and the prior 3 years for uplandBase acres cannot exceedtotal cropland on a farm.
^h^ttp[Sections 111 and 112][Section 103]
Payment acres equal 85% ofPayment acres equal 100% ofSame as House bill. [Section 1101(f)]
base acres in calculatingbase acres in calculating payment
payment amounts. [Sectionamounts. [Section 111]

100(9) and 103(f)]

ayment Yield
rogram payment yields for each crop areProgram payment yield forProgram payment yield is either:Similar to House bill. Payment yield is
en at 1986 program levels. [Sectioneach crop is the: paymentthe yield specified in existingthe yield established for the 1995 crop.
yield in effect for 2002 undercontracts, or average yield fromOilseed payment yield is the average
an existing production1998 thru 2001. There is noyield from 1998-01, adjusted back to
e: Soybeans and other oilseeds are notflexibility contract; or arequirement to adjust yields backthe national average from 1981-85.
ible crops and there are no provisionssimilarly appropriate yieldto an 1981-85 equivalent.Yields for counter-cyclical payments

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
base acres and yields forfor farms without past[Section 111]may be updated using specified
eds.contracts. Oilseed yield isformulas. [Section 1102]
the average yield from 1998-

01, adjusted back to a 1981-

85 equivalent. [Section 102]

reement)
(1.) Requirements.
igible producers must sign a contractProducers must agree duringSame as old law. Producers signSame as House bill. [Section 1105]
fic requirements in ordereach crop year to certaincontracts. [Section 111 ]
ⁱ^{ki/CRS-RL31704} receive payments. [Section 111]requirements in order toreceive fixed, decoupled
^g/w
^s^.ordirect payments and counter-
^le^akcyclical payments. [Section

106]

^://wiki
^h^ttpa.) Conservation and Wetlands
Compliance
roducers are required to comply withSame as old law. [SectionSame as old law. [Section 111]Same House and Senate bills and old
lready existing conservation requirements106]law. [Section 1105(1)(A) and (B)]
hly erodible land and with already
isting prohibitions on draining wetlands
r purposes of crop production. These
mpose
new obligations on producers.
b.) Planting Flexibility and
Limitations
armers are allowed to plant any cropSame planting flexibilitySame planting flexibilitySame as House bill, except allows that

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
cept fruits and vegetables (other thanallowance as old law, butallowance as old law, but wildif prohibited crops are planted they may
ntils, mung beans, and dry peas) onwild rice is added torice is added to exceptionsbe destroyed before harvest, and
ract acreage and there are no plantingexceptions. [Section 107]beginning in 2003. [Section 113]planting trees or other perennial crop
e.producing plants is prohibited on base
has to be devoted toacres. [Section 1106]
use to prevent erosion and
ricultural
[Section 118]
tions of planting flexibilityNo provision.For first time unintentionalSame as House bill.
tions generally result in terminationviolations of planting flexibility
f the contract on each farm in which thelimitations, the penalty shall be a
ⁱ^{ki/CRS-RL31704}[Section 116]refund or reduction of future
^g/wpayments amounting to twice the
^s^.orpayment amount on the involved
^le^akacres. [Section 112]
^://wiki
^h^ttpc.) Change in Farm Ownership
or Operator
ations can be assumed bySame as old law. [SectionSame as House bill. [SectionSame as old law, and House and Senate

106(c)]111]bills. [Section 1105(b)]

Changing operators does not
program acres or yields. [Section

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
rect Fixed, Decoupled Payments
a.) Eligibility.
ibility for PFC contracts is extended toFarms with existing PFCSame as House bill. [SectionSame as House and Senate bills except
enrolled in a grain orcontracts, and other111]that these crops are to be known as
program in at least 1 of the 1991-95producers with a history of“covered crops.” [Section 1103]
ears. Conservation Reservecontract crop or oilseed
ram cropland expiring or terminatedproduction from 1998-01 are
er Jan. 1, 1995 is eligible. Soybeanseligible for fixed, decoupled
nd other oilseeds are not eligible PFCpayments on their base acres
ommodities. [Section 111]and yields. Soybeans and
ⁱ^{ki/CRS-RL31704}other oilseeds also are made
^g/weligible. These crops are to
^s^.orbe known as “agreement
^le^akcrops.” Provision is made
^://wikifor expiring CRP acres to beadded to the agreements.
^h^ttp[Section 101(a) and 103(a)]
b.) Payment Rates.
armers who sign production flexibilitySimilar framework to oldSimilar framework to old law.Same as House bill. [Section 1105]

Cs) in 1996 receive fixedlaw. Farmers who signFarmers who sign contracts
ments for 7 years, unrelated to“agreements” receive directreceive fixed, decoupled annual
rops or acreage actually planted. Thefixed, decoupled annualpayments, unrelated to crops or
ment quantity for each commodity ispayments, unrelated to cropsacreage actually planted. The
he contract acreage times theor acreage actually planted.payment quantity for each
yment yield times the payment rate.The payment amount forcommodity is 100% of payment
each commodity is paymentacres times the payment yield
acres (85% of base acres)times the payment rate.
times the payment yield
times the payment rate.

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
payment rates:Payment rates are specifiedPayment rates are specified forPayment rates differ slightly from
for all years as follows:2002/03, 2004/05, 2006 asHouse bill as follows:
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
arley, $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
oybeans, 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,Other Oilseeds, $0.008/lb
ⁱ^{ki/CRS-RL31704}[Section 104]$0.138/bu [Section 1103(b)]
^g/wOther Oilseeds, $0.01, $0.005,
^s^.or
^le^ak $0.0025/lb
[Section 111]
^://wiki
^h^ttpaw does not specify actual paymentTotal payments are to beNo comparable provision.Same as Senate.
lablereduced by $100 million on aNote: no provision to reduce spending
year and the allocation share for eachpro rata basis (about 2%and devote funds elsewhere.
ommodity. [Section 113]based on CBO estimates)
and these funds are to be
devoted to specified rural
development programs.
[Section 943]
c.) Time of Payment.
e to receive 50%FY2002 PFC paymentsNo explicit reference is made toSimilar to House bill. [Section 1107]

ment on Dec. 15 or Jan. 15 andunder old law are to bediscontinuing payments under
remainder not later than September 30discontinued after enactment,PFC contracts, or to payments
f each fiscal year. [Section 112(d)(1 &and any amount already paidalready made under old law.

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
]is to be deducted from the
amount due under this Act.
[Section 108] Fixed,
decoupled payments are to
be made not later than
September 30 of each fiscal
year. [Section 104(d)]
ternatively, for FY1999-02, theThe producer can choose toSame as House bill. [Section 111Same as House and Senate bills except
roducer can choose to receive the fullreceive an advance of 50% ofas it amends Section 113(d) ofthe producer can choose to receive any
mes during thethe payment on or afterFAIR Act]amount up to 50% of the direct
scal year chosen by the producer.December 1. [Sectionpayment. [Section 1103(d)]
ⁱ^{ki/CRS-RL31704}ction 112(d)(3) as added by PL 105-104(d)]
^g/w
^s^.or
^le^ak. Counter-Cyclical Deficiency
^://wikiayments and Target Prices
^h^ttpa.) Eligibility.
clical target priceRestores counter-cyclicalSame as House bill. [Section 111Same as House and Senate bills.
ciency payments that were enacted intarget price deficiencyas it amends Section 111(a) of the[Section 1104]
functioned through 1995. Whenpayments that ended in 1995.FAIR Act]
were paid the differenceFarms that have signed
ween the target price and a loweragreements receive counter-
e farm price on a specifiedcyclical payments if average
crop base acres.market prices are less than
target prices. [Section 101]
b.) Target Prices and Payment
tes.
applicable.The payment rate forSame as House bill, except thatSame as House bill. [Section 1001(10)]

counter-cyclical payments isthe payment amount for each

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
the difference between thecommodity is 100% of base acres
“target price” and thetimes the payment yield times the
“effective price.” Thepayment rate.
effective 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
ⁱ^{ki/CRS-RL31704}acres are 85% of base acres.
^g/w
^s^.orTarget prices are for all yearsTarget prices are for all years areTarget prices for 2002-03/2004-07 are
^le^akare specified as follows:specified as follows:specified as follows:
^://wikiWheat, $4.04/buWheat, $3.446/buWheat, $3.86/$2.92/bu
^h^ttpCorn, $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
Upland Cotton, $0.736/lbUpland Cotton, $0.6793/lbUpland Cotton, $0.724/$0.724/lb
Rice, $10.82/cwtRice, $9.2914/cwtRice, $10.50/$10.50/cwt
Soybeans, $5.86/buSoybeans, $5.7431/buSoybeans, $5.80/$5.80/bu
Other Oilseeds, $0.1036/lbOther Oilseeds, $0.1049/lbOther Oilseeds, $0.098/$0.1010/lb
[Section 105][Section 171][Section 1104(c)]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
eting Assistance Loans and
s
a.) Eligibility.
wheat, feed grains, upland cotton, andMarketing assistance loansSame as House bill. [SectionSimilar to House and Senate bills,
e produced on PFC farms is eligible forand loan deficiency121]except the list of loan commodities
arketing assistance loans or LDPs,payments (LDPs) arediffers. [Section 1201] Loan
t it is produced on contractavailable for agreementcommodities are defined to include
cres. These commodities are not eligiblecrops (grains, upland cotton,wheat, corn, grain sorghum, barley,
DPs if produced on farmsoilseeds) on all farms whereoats, upland cotton, extra long staple
contracts. Any oilseed is eligiblethey are produced, whethercotton, rice, soybeans, other oilseed,
ⁱ^{ki/CRS-RL31704}arketing assistance loans or LDPs,or not they have signedwool, mohair, honey, dry peas, lentils,
^g/w contract.agreements). [Section 121]and small chickpeas. [Section 1001]
^s^.or
^le^ak
b.) Term of Loans.
^://wiki
^h^ttpoans on grains and oilseeds are for 9Same as old law. [SectionSame as old law. [Section 121]Similar to old law, and House and
inning on the first of the month123]Senate bills, except the term for each
er the loan date. Loans on uplandcommodity is 9 months beginning on
inning on thethe first day of the month after loan is
ore the loanmade. [Section 1203]
[Section 133]
c.) Loan Repayment.
or grains and oilseeds, marketingSimilar to old law. [SectionSimilar to old law. [Section 121]Similar to old law, and House and
stance loans can be repaid at the lesser124]Senate bills. Repayment rules for wool,
loan rate plus interest, or the ratemohair, honey, dry peas, lentils, and
termined by USDA that minimizesmall chickpeas are the same as for
e the accumulation ofgrains and oilseeds. [Section 1204]

owned stocks, minimize the cost of
ge, and allow for free and competitive

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
stic and international marketing.
or upland cotton, loans can be repaid at
lesser of the loan rate plus interest, or
prevailing world market price adjusted
and location. Additional
djustments to the world price are made
hen the world price declines to near the
an rate , and when the price of U.S.
ton exceeds the price of competing
otton in the world market. [Section 134]
ⁱ^{ki/CRS-RL31704}
^g/wn the event of a default on a loan at the
^s^.or
^le^akturity date, the commodity pledged as
ollateral reverts to CCC ownership. No
^://wikiainst the borrower
^h^ttparketing assistance loans are
[Section 131]
d.) Loan Deficiency Payments
rain, upland cotton, orSame as old law. [SectionSame as old law. [Section 121]Similar to old law, and House and
eds eligible for marketing assistance125]Senate bills. LDPs are available for all
ive loanloan commodities with the exception of
eficiency payments. The LDP is theELS cotton. [Section 1204]

fference between the loan rate and the
n repayment rate established by the
DA. [Section 135]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
e.) Loan Rates.
ing assistance loans and loanMarketing assistance loansSame as House bill. [SectionSame as House and Senate bills.
ciency payments (LDPs) continue atand loan deficiency121][Section 1201]
uthority ispayments (LDPs) are
d for USDA to lower the loan ratesavailable for loan
ocks accumulate. [Section 132]commodities on all farms
(not limited to farms with
agreements for fixed and
counter-cyclical payments)
and any quantity produced
on the farm. [Section
ⁱ^{ki/CRS-RL31704} 121(b)]
^g/w
^s^.oroan rates generally are to be not less thanLoan rates generally are toFixed, specific loan rates are asFixed, specific loan rates are as follows:
^le^ak5% of the moving 5-year Olympicbe not less than 85% of thefollows:Wheat, $2.80/$2.75/bu
^://wikie of prices received by producers, or than:moving 5-year Olympicaverage of prices received byWheat, $2.9960/buCorn, $2.0772/buCorn, $1.98/$1.95/buSorghum, $1.98/$1.95/bu
^h^ttpheat, $2.58/buproducers, or more than:Sorghum, $2.0772/buBarley, $1.88/$1.85/bu
Wheat, $2.58/buBarley, $1.9973/buOats, $1.35/$1.33/bu
hum, $1.69/buCorn, $1.89/buOats, $1.4980/buCotton, $0.52/$0.52/lb
arley, $1.71/buSorghum, $1.89/buCotton, $0.5493/lbRice, $6.50/$6.50/cwt
Feed Barley, $1.70/buRice, $6.4914/cwtSoybeans, $5.00/$5.00/bu
Malting Barley, $1.65/buSoybeans, $5.1931/buMinor Oilseeds, $0.096/$0.93/lb
Oats, $1.21/buMinor Oilseeds, $0.0949/lbELS Cotton, $0.7977, $0.7977/lb
& min $6.50/cwtCotton, max $0.5192-min[Section 171](ELS Cotton is not eligible for LDPs)
beans, max $5.26, min $4.92/bu$0.50/lbDry Peas, $6.33, $6.22/cwt
$0.093, min $0.87/lbRice, must equal $6.50/cwtLentils, $11.94, $11.72/cwt
Section132]Soybeans, $4.92/buSmall Chickpeas, $7.56, $7.43/cwt.
Minor Oilseeds, $0.087/lbGraded Wool, $1.00/lb
[Section 122]Nongraded Wool and Unshorn Pelts,

40¢/lb

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
Mohair, $4.20/lb
[Section 1202]
. 106-224, Section 206(a)(2) and (3),Retroactively, for the 2001Same as House bill. [SectionSame as House and Senate bills.
de loans and LDPs available on non-crops, as was the case for169][Section 1205(f)(2)]
C farms only for crop year 2000.)2000, LDPs are available on
non-PFC farms that
: Payment limits are covered below inproduced contract crops and
oilseeds. [Section 125(f)]
ⁱ^{ki/CRS-RL31704}1.) Marketing Loans and LDPs.
^g/w
^s^.orn FAIR Act)Marketing loans and LDPsSimilar to House bill, but noSimilar to House bill, except unshorn
^le^akare available to all producerssupport for mohair. Marketingpelts are eligible for LDPs only.
^://wikiool and mohair support wasat the following rates:loans and LDPs are available to
^h^ttp P.L. 103-all producers at:
Graded Wool, $1.00/lbGraded Wool, $1.00/lbGraded Wool, $1.00/lb
ional Wool Act of 1954. However,Nongraded Wool, 40¢/lbNongraded Wool and UnshornNongraded Wool and Unshorn Pelts,
thorized in severalMohair, $4.20/lbPelts, 40¢/lb40¢/lb
ears. P.L. 106-78 Section[Section 130]Mohair, naMohair, $4.20/lb
authorized recourse loans on 1999[Section 171][Section 1201, 1202]
. 106-224, SectionNote: While Section 123 provides
payments on 1999 cropno loan for mohair, Section 171Marketing loan gains and LDPs are
on mohair of $0.40/lb.includes a loan for mohair. Thelimited to $75,000 per person per year
. 106-387, Section 814, authorizedreported intent was not to supportfor wool, and separately $75,000 for
ments of $0.20/lb for wool and $0.40mohair]mohair. [Section 1603]

year 2000, up to $20
ain for crop year 2001, P.L.
thorized $16.9
ct payments for wool and

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
termined by USDA.
1.) Marketing Assistance
support is repealed. [Section 171]Marketing loans and LDPs atMarketing loans and LDPs atSame as House bill. [Section
$0.60/lb. The term of a loan$0.60/lb. The term of the loan is1201,1202] The payment limit is
: This action followed several years ofis 12 months, beginning the9 months, beginning the first day$75,000 per person per year. [Section
griculture appropriations bill languagefirst day of the month afterof the month after the loan is1603]
t prevented USDA from carrying outthe loan is obtained.obtained. [Section 124]
ⁱ^{ki/CRS-RL31704} honey marketing loanram.[Section 131]
^g/w
^s^.or, recourse loans were
^le^akuthorized for the 1998, 1999, and 2000
respectively P.L. 105-227,
^://wikiction 1122; P.L. 106-78, Section 801;
^h^ttpP.L. 106-224, Section 204. P.L. 106-
, Section 812, made marketing
stance loans and LDPs available on
000 crop honey at $0.65/lb and
recourse loans were converted
loans.
xtra Long Staple (ELS) cotton, Dry Peas, Lentils and Chickpeas
1.) Marketing Assistance
S cotton is eligible for nonrecourseSame as old law.Marketing loans and LDPs areSimilar to Senate bill, except large
DPs. [Sections 132 andavailable on all production at thechickpeas are not included. [Section
following rates:1201-1205]. Loan rates for 2002-03,
and 2004-07 are:

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
rized for dryELS Cotton, $0.7965ELS Cotton, $0.7977, $0.7977/lb
as, lentils, large chickpeas, small(ELS cotton is not eligible for(ELS cotton is not eligible for LDPs)
ckpeas.LDPs)Dry Peas, $6.33, $6.22/cwt
Dry Peas, $6.78/cwtLentils, $11.94, $11.72/cwt
Lentils, $12.79/cwtSmall Chickpeas, $7.56, $7.43/cwt.
Large Chickpeas, $17.44/cwt[Section 1202]
Small Chickpeas, $8.10/cwt
The term of each loan is 9
months, beginning the first day of
the month after the loan is
obtained. [Section 171 ]
ⁱ^{ki/CRS-RL31704}
^g/w
^s^.orrazed Wheat, Barley, Oats, and Triticale
^le^ak
^://wiki1.) Payments in Lieu of LDPs.
^h^ttp. 104-127 made no provision for LDPsWheat, barley, and oats thatSimilar to House bill, but includesSimilar to House bill, except grazed
grazed wheat, barley and oat acreage.are grazed and not harvested,grain sorghum along with wheat,triticale also is covered. [Section 1206]
. 106-224, Section 205, provided forbut would be eligible forbarley and oats as eligible crops.
DPs on grazed acres only for 2001 crops.LDPs if harvested, will[Section 127]
receive LDPs under similar
rules to those that apply to
harvested crops. Federal
crop insurance is not allowed
on grazed land agreements.
[Section 126]
. High Moisture Corn and Sorghum

1.) Recourse Loans.

129(a)]

. ELS and Upland Seed Cotton

1.) Recourse Loans.

ⁱ^{ki/CRS-RL31704}ecourse loans are available on uplandRecourse loans areNo provision is made to supportSame as House bill. [Section 1209(b)]
^g/w
^s^.orwith PFC contracts,available for all upland andseed cotton.
^le^aky farm producing ELS seedELS seed cotton, at rates set
[Section 137(b)]by the USDA. Farms need
^://wikinot have signed
^h^ttp“agreements.” [Section

129(b)]

d White Wheat Incentive Payments

1.) Incentive Payments.

special support provision is added forSame as old law, no supportFor crop year 2003 through 2005,Similar to Senate bill, but funding is set
teprovision is available foran additional $40 million is to beat $20 million for the 3 year period.
eat, does qualifyhard white wheat.paid to producers to ensure that[Section 1616]
ract payments and marketing loanhard white wheat on not more
ram benefits.than 2 million acres meets
minimum quality standards.
[Section 167]
land Cotton Competitiveness for Processors and Exporters

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011

1.) Marketing Certificates.

ing certificates or cash paymentsSome changes from old law.Same as old law. [SectionSame as House bill for upland cotton.
estic users and exportersMarketing certificates or121(b)]Applies through July 31, 2008.
and cotton whenever the 4-weekcash payments are made to[Section 1207(a)]
ets too highdomestic users and exporters
pared to world cotton price (i.e.,of upland cotton whenever
lb higher), or is not high enoughthe 4-week price of U.S.
pared to the U.S. cotton loan rate (i.e.,cotton is too high or not high
her). [Section 136(a)]enough (i.e., when the U.S.
price (1) exceeds the world
price by 1.25¢/lb, or (2) does
ⁱ^{ki/CRS-RL31704}not exceed the U.S. cotton
^g/wloan rate by at least 134%).
^s^.or[Section 127(a)]
^le^ak
^://wiki2.) Import Quotas.
^h^ttpimposed onA special import quota isSame as old law. [SectionSame as House bill. [Section 1207(b)]
and cotton when U.S. prices exceedimposed on upland cotton121(b)]
1.25¢ for 10 weeks.when U.S. prices exceed
b)]world prices by 1.25¢ for 4
weeks. [Section 127(b)]
lobal import quota is imposedSame as old law. [SectionSame as old law. [SectionSame as old law, and House and Senate
average127(b)]121(b)]bills. [Section 1207(c)]
ear average of
. [Section 136(c) ]
LS Cotton Competitiveness for Processors and Exporters
o provision.A special competitivenessNo provision.Same as House bill. Applies through
program is created for ELSJuly 31, 2008. [Section 1208]

cotton with marketing

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
certificates or cash payments
to domestic users and
exporters under market
conditions like those that
apply to upland cotton.
[Section 128]
. Peanuts
1.) Poundage Quotas and
a Compensation.
ⁱ^{ki/CRS-RL31704}dage quota is set to reflectPeanut quotas are terminatedSimilar to House bill, but theRepeals all quota provisions, and adopts
^g/w
^s^.oribleand quota holders arecompensation is $1,100 (55¢/lb)Senate quota compensation level of
^le^akcompensated $1,000/ton($220/ton/yr for 5 years).$1,100 (55¢/lb or $220 /ton/year for 5
mption (quota(50¢/lb) ($200/ton/year for 5[Section 152]years). [Section 1309]
^://wikid through nonrecourseyears). [Section 170]
^h^ttpat $610/ton (30.5¢/lb). The price of
al peanuts (nonquota peanuts,
ported or crushed for oil and meal)
at a competitive level (set by
/ton, 6.6¢/lb, in 2001).
2.) Nonrecourse Loans and
arketing Assistance Loans.
Nonrecourse loans areSame as House bill except that theNonrecourse loans are replaced by
replaced by marketingmarketing assistance loan rate ismarketing assistance loans. Loans are
assistance loans. Loans areset at $400/ton (20cents/lb) for allset at $355/ton (17.75¢/lb) available for
set at $350/ton (17.5¢/lb)peanut production withoutall peanuts produced without distinction
available for all peanutsdistinction for end use. [Sectionof end use. [Section 1307b]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
produced without distinction151, as it establishes section
of end use. [Section 167]158D in the FAIR Act.]

3.) Fixed Payments, Counter-

yclical Payments, and Marketing
ssistance Loans.
ns for fixed payments or forSupport for peanuts designedSimilar to House bill. [SectionAdopts House peanut program designed
clical payments.like that for grains, cotton,151 as it establishes Section 158Blike that for grains, cotton, and oilseeds.
and oilseeds. Rulesin the FAIR Act]Rules regarding eligibility, sign-up,
regarding eligibility, sign-up,conservation and wetlands , base acres,
conservation and wetlandspayment yields, etc., are similar to
ⁱ^{ki/CRS-RL31704}compliance, plantingthose that apply to grains, cotton, and
^g/wflexibility, base acres,oilseeds. [Section 1302] Adopts
^s^.orpayment yields, etc., areunique conference provisions on
^le^aksimilar to those that apply tocompliance and planting flexibility.
^://wikigrains, cotton, and oilseeds.[Sections 162, 165, 166][Section 1305, 1306]
^h^ttp
The assignment of eachSame as House bill. [Section 151Adopts House provision with revision
farm’s acres and yield toas it establishes Section 158B(b)specifying that assignment must be
cropland selected by thein the FAIR Act]done by March 31, 2003, among other
producer is done on a one-provisions. [Section 1302(b)]
time basis. [Section 162(b)]
Fixed, decoupled annualFixed, decoupled contractFixed, decoupled annual payments at
payments at the rate ofpayments are the same as Housethe rate of $36/ton (1.8¢/lb) are made
$36/ton (1.8¢/lb) are madebill. [Section 151 as it establisheson 85% of each farm’s history of peanut
on 85% of each farm’sSection 158C in the FAIR Act]production. [Section 1303]
history of peanut production.
[Section 163]
Counter-cyclical deficiencyCounter-cyclical deficiencyCounter-cyclical deficiency payments

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
payments against a $480/tonpayments against a $520/tonare made when marketing year prices
(24¢/lb) target price are(26¢/lb) target price are made onaverage less than the target price of
made on 85% of each farm’s85% of each farm’s history of$495/ton (24.75¢/lb). Payments are
history of peanut production.peanut production. [Section 151made on 85% of each farm’s history of
[Section 164]as it establishes Section 158D inpeanut production. Partial payments
the FAIR Act]may be made in advance. [Section

1304]

Marketing assistance loansMarketing assistance loan rate setSimilar to House and Senate bills,
set at $350/ton) (17.5at $400/ton (20 cents/lb) availableexcept the marketing assistance loan
cents/lb available for allfor all peanut production withoutrate is set at $355/ton (17.75/lb)
peanut production withoutdistinction of end use. [Sectionavailable for all peanuts. [Section
ⁱ^{ki/CRS-RL31704}distinction of end use.151 as it establishes Section1307(b)]
^g/w[Section 167]158G in the Fair Act.]
^s^.or
^le^ak4.) Payment Limits.
^://wikio provision for peanuts.Payments limits for peanutsPayments received for support ofHouse provision, amended. Payments
^h^ttpare separate from otherpeanuts are subject to the samelimits for peanuts are separate from
commodities.limits as other crops. Peanuts areother commodities but fixed, decoupled
Fixed, decoupled peanutnot treated separately. peanut payments are subject to a limit
payments for are subject to aFor all crops, the combination ofof $40,000 per person, per year;
limit of $50,000 per person,fixed, decoupled payments andcounter-cyclical target price deficiency
per year. The limit oncounter-cyclical payments ispayments are limited to $65,000, and
counter-cyclical target pricelimited to $75,000 per individual,marketing loan benefits are limited to
deficiency payments isper year. Marketing loan benefits$75,000.
$75,000, and the limit onare limited to $150,000. [Section 1603]

marketing loan benefits is[Section 169]
$150,000.
[Section 169]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011

1.) Price Support Loans.

aw cane sugar and refined beet sugar areSame nonrecourse loan ratesSame loan rates as old law.Retains old rates for non-recourse loans
course loans at 18¢as old law, 18¢/lb. raw cane,[Section 141(i)] -18¢/lb. raw cane, and 22.9¢/lb. refined

22.9¢/lb respectively. [Section 156(a)and 22.9¢/lb. refined beet.beet sugar.

b)] [Section 151(a)]
loan rates are to be reduced ifIn-process sugar is newlySame in-process sugar loans as In-process sugar is newly eligible for
otiated reductions in support areeligible for loan at 80% ofHouse bill. [Section 141(e)] loan at 80% of full loan rates.
ar countries.full loan rates. [Section
c)] 151(e)]
Same authority to reduce loanLoan rates may be reduced if competing
: A recourse loan program when theLoan rates may be reduced ifrates as House bill. [Sectionnations sufficiently reduce support.
ⁱ^{ki/CRS-RL31704}is less than 1.5competing nations141(a)][Section 1401(a) restates FAIR Act
^g/wn short tons was eliminated by P.L.sufficiently reduce support.provisions, and adds new subsection for
^s^.or[Section 151(c)]in-process sugar loans]
^le^ak
^://wiki2.) No Net Cost Mandate.
^h^ttpprovisionLoan program is to beSame no cost policy as HouseLoan program is to be operated at no
operated at no net cost bybill. [Section 141(f)]net cost by avoiding forfeitures.
avoiding forfeitures.[Section 1401(a) adds new subsection
[Section 151(f)] to FAIR Act]

3.) Loan Forfeiture Penalty.

forfeiture penalty of 1¢ per pound onForfeiture penalty is retainedThe loan forfeiture penalty isSame as Senate bill and takes effect
ugar (an equivalent amount forby preserving Section 156(g)eliminated. [Section 141(d)]upon enactment. [Section 1401(a)
ar) is assessed on loan forfeitures.of the FAIR Act.drops provision from FAIR Act]
his effectively reduces the level of
[Section 156(g)]Note: Change increases effective
support level.

4.) Import Quotas.

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
lobal import quota of not less thanSame as old law.Same as House bill, exceptReaffirms existing import quota system,
million short tons is set each year byauthorizes USTR in consultationand adopts Senate reallocation
of the Harmonizedwith USDA to reallocate anyprovision giving any shortfall of one
of the United States. Theshortfall of one country’scountry’s shipments to the other quota-
countries by U.S.shipments to other quota-holdingholding countries. [Section 1403]
epresentative. [HTSUS, chaptercountries. [Section 144]
ditional U.S. note5. USTR
location for
ar entering from Mexico as
reed in
sugar side letter to NAFTA]
ⁱ^{ki/CRS-RL31704}5.) Marketing Allotments.
^g/w
^s^.or authority to impose mandatorySugar marketing allotmentsSimilar to House bill, butSugar marketing allotments are restored
^le^akrketing allotments on domestic sugarare restored and are to beprovision is made for new caneand are to be shared between beet sugar
^://wikied. [Sectiona)(1)(E)]shared between beet sugarand raw cane at 54.35% andprocessor entrants (includingmainland states not previouslyand raw cane at 54.35% and 45.65%.Allotments are suspended when imports
^h^ttp45.65%. Allotments areproducing cane). [Section 143]exceed 1.532 million short tons. Adds
suspended when importsauthority for USDA to assign unused
exceed 1.532 million shortcane and beet sugar allotments first to
tons. [Section 152]sales of sugar in CCC inventory and
then to imports under certain
conditions. Makes allotment authority
effective beginning October 1, 2002.
[Section 1403]

6.) In-Kind Payments.

o provision.CCC is authorized to makeSame authority to make in-kindAuthorizes CCC to make in-kind
in-kind commodity paymentspayments for reduced productionpayments from stored inventories in
from stored inventories toas House bill. [Section 141(f)]exchange for reduced production as laid
processors in exchange forout in House and Senate provisions.

7.) Marketing Assessment.

an assessment on allThe assessment on all sugarSame as House bill. [SectionTerminates the sugar marketings
rketings of sugar to CCC equal to amarketings is eliminated.141(c)]assessment retroactive to October 1,
fied percentage of the loan rate.[Section 151(b)]2001. [Section 1401(b)]
f)] P.L. 106-78, Section
assessment for
ⁱ^{ki/CRS-RL31704}Y2000 and FY2001. P.L. 107-76,
^g/ws remittance of 2002
^s^.or
^le^ak
^://wiki8.) Interest Rate on Loans.
^h^ttp
ans is 1% above theInterest rate on loans is equalSame interest rate on loans asReduces interest rate on price support
ost of borrowing money. [Sectionto CCC cost of funds. ThisHouse bill. [Section 141(j)]loans to sugar processors by 1%, as in
is 1% less than the interestHouse and Senate bills. [Section
rate for other commodities.1401(c)]
[Section 151(h)]

9.) Storage Facility Loans.

o provisions for storage facility loans.Storage facility constructionSame as House bill. [SectionAuthorizes storage facility loans, as in
and improvement loans are142]House and Senate bills. [Section 1402]

to be made available to
processors. [Section 153]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ry
rice Support Program
DPSP)
1996 farm bill (P.L. 104-127), asExtends the DPSP throughExtends the DPSP throughExtends the DPSP through December
mended, reauthorized the DPSP at theDecember 31, 2011 at theDecember 31, 2006 at the current31, 2007 at the current level of support
of support ($9.90 percurrent level of supportlevel of support ($9.90 per cwt.).($9.90 per cwt.). The Secretary is
ht (cwt.) of milk). The DPSP($9.90 per cwt.). TheThe Secretary would be requiredpermitted to adjust purchase prices of
supports the farm price of milkSecretary would beto adjust purchase prices of butterbutter and nonfat dry milk twice
h USDA purchases of surpluspermitted to adjust purchaseand nonfat dry milk twiceannually to minimize government
milkprices of butter and nonfatannually to minimize governmentexpenditures on the program. [Section
ⁱ^{ki/CRS-RL31704}aw allows the Secretary ofdry milk twice annually toexpenditures on the program.1501}
^g/wgriculture to adjust government purchaseminimize government[Section 131]
^s^.ornd powder twice annuallyexpenditures on the program.
^le^ak order to minimize government[Section 141]
^://wikipenditures. [Section 141]
^h^ttpe FY2002 agriculture appropriations act
. 107-76) extended the DPSP through

31, 2002 [Section 772(a)]

ry Compact and
nter-Cyclical Payments for Dairy
armers
P.L. 104-127) gaveNo provisions.Authorizes a new counter-cyclicalAuthorizes a new counter-cyclical
ontingent authority for the six Newpayment program for dairypayment program for dairy farmers
land states to create an interstate dairyfarmers through September 30,through September 30, 2005. Whenever
pact. [Section 147] The compact2005. Whenever the minimumthe minimum monthly fluid farm milk
quired fluid milk processors in Newprice for fluid farm milk fallsprice in Boston falls below $16.94 per
land to pay a minimum price for farmbelow a target price of $16.94 percwt., all eligible farmers nationwide

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
d for fluid consumption that ishundredweight (cwt.) in 12will receive a direct government
her than the minimum price establishedNortheast states (ME, NH, VT,payment equal to 45% of the difference
ulation. Compact wasCT, RI, MA, NY, NJ, PA, MD,between $16.94 and the lower Boston
at a minimum price ofDE, WV), farmers in these statesprice. Payments to individual farmers
undredweight (cwt.).would receive a directcan be received on up to 2.4 million lbs.
egislative authority expired ongovernment payment toof annual production. Retroactive
compensate for 45% of thepayments will be made for each month
difference between the targetback to December 2001. No budget
, emergency authority includedprice and the monthly minimumlimitations on how much can be spent
agriculture appropriations acts ofmarket price for fluid farm milk.each year or in total. At the time of
Y1999 (P.L. 105-277), FY2000 (P.L.Farmers in all other states wouldenactment, the CBO estimated the total
Y2001 (P.L. 106-387)receive a federal payment whencost of the program at $1.3 billion over
ⁱ^{ki/CRS-RL31704}ad-hoc direct governmentthe average market price for farmthe life of the program. [Section 1502]
^g/wments to all dairy farmers in responsemilk in any quarter falls short of a
^s^.or
^le^aktile farm milk prices.5-year average market price for
that quarter. Each producer would
^://wikireceive a payment equal to 40%
^h^ttpof the market price shortfall from
the 5-year average. Total funding
over the life of the program is
$500 million for the Northeast
states, and $1.5 billion for all
other states. Payments could be
received by a farmer on up to 8
million lbs. of annual milk
production. [Section 132]
rogram
. 104-127 permanently authorized aRepeals authority for aNo provision.No provision.

recourse loan program to help dairyrecourse loan program.
inventories, to be[Section 142]

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
price support(Subsequent to House
ogram (DPSP) expires. [Section 142]passage of H.R. 2646, P.L.
. 104-127 originally required the107-76 was enacted which
limination of the DPSP on January 1,repealed authority for the
quent legislationrecourse loan program.
xtended price support authority.
an program was never
mented, and its authority was
P.L. 107-76. [Section 772(b)]
rogram
ⁱ^{ki/CRS-RL31704}. 99-198) firstExtends program authorityExtends program authorityExtends program authority through
^g/wuthorized the dairy export incentivethrough 2011. [Sectionthrough 2006. [Section 133(a)]2007.
^s^.orram, which helps U.S. exporters143(a)][Section 1503(a)]
^le^aked sales by foreign
^://wikiompetitors through cash or commodity
^h^ttp[Section 153]
rogram has been reauthorized
riodically in subsequent farm bills.
ost recently, the 1996 farm bill (P.L.
ed the program
h 2002. [Section 148]
nity Program
ed in 1964, the dairy indemnityReauthorizes the programReauthorizes the program throughReauthorizes the program through
ram indemnifies dairy farmers andthrough September 30, 2011.September 30, 2006. [SectionSeptember 30, 2007. [Section 1503(b)]

h no fault of their[Section 143(b)]133(b)]
osses due to
or dairy products
pesticides and certain other

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ic substances. Legislative authority
pired September 30, 1995. However,
have been made
ram expiration.
luid Milk Processor Promotion
rogram
luid Milk Promotion Act of 19901) Gives permanent authoritySame as House bill, except thatSame as Senate bill.
.to the fluid milk promotionfluid milk delivered directly to[Section 1506]
mended, authorized aprogram; 2) strikes theconsumer residences does not
promotion program for fluidstatutory definition of a fluidcount toward the 3 million pound
ⁱ^{ki/CRS-RL31704}[Sections 1999A-1999R]milk product and use theminimum requirement for the
^g/whe program is funded through andefinition promulgated inprocessor assessment. [Section
^s^.orssessment on fluid milk processors whoUSDA regulations; and 3)134]
^le^akandle more than 500,000 lbs. of fluidchanges the definition of a
^://wikiproducts each month. The 1996 farmfluid milk processor for the
^h^ttpP.L. 101-624) extended programpurpose of the required
through December 31, 2002.assessment, to exclude any
fluid processor that handles
less than 3 million pounds of
fluid milk products each
month. [Section 144]
romotion and Research
rogram
Extends the 15-centSame as the House bill. [SectionSame as the House bill, with some
Dairy Producer Stabilization Act ofassessment to imported dairy136] modifications, including a requirement
ed a national dairy producerproducts. The 15-centthat importers be represented on the
ram for generic dairy productassessment is to be paid toBoard in the same proportion that
esearch, and nutritionU.S. Customs by theimported dairy products comprise the
program is funded throughimporter on the equivalent oftotal U.S. dairy market. Also, Secretary

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
mandatory 15-cent per hundredweightmilk that went into theis required to consult with the U.S.
manufacturing of theTrade Representative to determine
uous 48 states.imported product. Dairywhether this provision is compatible
iry farmers administer the programimporters are allowed up to 2with U.S. trade obligations; and dairy
h the National Dairy Promotion andseats on the national Dairyproducts must be promoted without
esearch Board. Board. None of theregard to the country of origin of the
importer-collected funds canproduct. [Section 1505]
be used for foreign market
promotion. [Section 146]
airy Product Mandatory Reporting
ⁱ^{ki/CRS-RL31704}
^g/wairy Market Enhancement Act ofAmends the 2000 act toEffectively similar to the HouseSame as Senate bill.
^s^.or. 106-532) established ainclude “substantiallybill, except that it changes the [Section 1504]
^le^akndatory reporting system for dairyidentical products designateddefinition of a covered dairy
^://wikiprices. It requiresby the Secretary (ofproduct to include “substantially
^h^ttptional Agricultural StatisticsAgriculture)” as part of theidentical products designated by
rvice to regularly collect data on themandatory reporting system.the Secretary.” [Section 135]
of cheese, butter and[Section 145]
dry milk sold by dairy
Requires the Secretary ofRequires the Secretary ofAdopts both the House and Senate
Agriculture to submit toAgriculture to conduct studies toprovisions, thus requiring the Secretary
Congress a comprehensivebe reported to the House andto conduct two dairy studies. Both
economic evaluation ofSenate Agriculture Committeesstudies are due within one year of
national dairy policies (i.e.,on: 1) the market effects ofenactment of this bill. [Section 1508]

the price support program,terminating all federal dairy
federal milk marketing order,programs relating to price support
over-order premiums andand supply management; and 2)

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
state pricing programs, dairythe effects of changing the
compacts and exportstandard of identity for fluid milk
programs) and their effect onso that the required minimum
the farm and rural economy,protein content of fluid milk is
domestic food and nutritioncommensurate with the average
programs, and consumernonfat solids contents of farm
costs. [Section 147]milk directly from the cow.
[Section 137]
[Note: California has a standard
of identity for fluid milk that
requires a nonfat solids content
ⁱ^{ki/CRS-RL31704}higher than the national
^g/wrequirement and higher than the
^s^.or
^le^akaverage content of raw milk from
the cow.]
^://wiki
^h^ttpob acco
lue-cured TobaccoNo ProvisionReduces the reserve stock levelSimilar to Senate, except the reserve
for flue-cured in the quotastock is 60 million pounds. [Section
determination formula from the1610]
greater of 100 million pounds or
10% of the national marketing
quota, to the greater of 75,000
pounds or 10%. [Section 162]
lue-cured Farm Reconstitutions
o provisionsNo ProvisionAllows, for the 2002 crop only,Same as Senate bill. [Section 1611]

for special farm reconstitutions
that otherwise would violate the
prohibition on flue-cured lease

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
and transfer of quota. Requires a
study of the prohibition of flue-
cured quota lease and transfer.
[Section 163]
ee also Miscellaneous section of this report).

1.) Mandatory CCC Purchases.

. 104-127 specificallyNo provision.Mandated specialty cropThe amount of Section 32 funds that
e or mandate support for specialtypurchases using CCC funds: $100can be carried across fiscal years for use
ⁱ^{ki/CRS-RL31704}, emergency ad hocmillion in each of FY2002 andin emergency removals of surplus
^g/wstance was mandated for specialtyFY2003, $120 million in FY2004,commodities is increased from $300
^s^.orrops. P.L. 106-224, Section 203(d),$140 million in FY2005, andmillion to $500 million. [Section 1602]
^le^akndated the CCC spend $200 million for$170 million in FY2006.
^://wikiegetables withMandated purchases of otherSection 32 purchases of fruits,
^h^ttpludingunspecified commodities, at $30vegetables, and specialty crops shall
ed peas, cherries, citrus,million each year. [Section 166]amount to not less than $200 million
es, onions, melons, peaches, andeach fiscal year. [Section 10603]
. 106-387, Section 811 and
d respectively $100
yments to apple growers and
20 million to cranberry growers to
for low prices. P.L. 107-25,
CCC to
states for
crops.
. Payment Limits

1.) Fixed Payments, and

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
xed contract payments are subject to aCombined fixed, decoupledFixed, decoupled commodityFixed, decoupled payments for grains
ear limit.payments for grains, cotton,payments combined with counter-and oilseeds limited to $40,000 per year
and oilseeds are limited tocyclical target price deficiencyper person. Counter-cyclical payments
: Matching market loss payments$50,000 per year per person.payments for grains, cotton,limited to $65,000. The same limits
ency assistance were not[Section 109] Separately,oilseeds and peanuts are subjectseparately apply to peanuts. [Section
ct to payment limits, with thefixed, decoupled paymentsto a $75,000 per person, per year1603]
ctical result effectively being thefor peanuts are limited tolimit. [Section 169]
of the contract payment$50,000. [Section 169]
Counter-cyclical payments
for grains, cotton, and
ⁱ^{ki/CRS-RL31704}oilseeds are subject to a
^g/w$75,000 per person, per year
^s^.orlimit. [Section 109]
^le^akSeparately, counter-cyclical
^://wikipayments for peanuts are
^h^ttplimited to $75,000. [Section

169]

2.) Marketing Loan Benefits.

rketing loan benefits (marketing loanMarketing loan benefits forMarketing loan benefits for allMarketing loan benefits for covered
ains and LDPs) for all crops combinedgrains, cotton, and oilseedscommodities (grains, cotton,crops (grains and oilseeds), lentils, dry
to a $75,000 per person, percombined are subject to aoilseeds, dry peas, lentils,peas, and small chickpeas limited to
ear limit. [Section 115] The limit was$150,000 per person, perchickpeas, wool, honey, and$75,000. Peanuts, wool, mohair, and
years 1999,year limit. [Section 183]peanuts) combined are subject tohoney each have separate marketing
respectively P.L. 106-Separately, marketing loan$150,000 per individual, per yearloan benefit limits of $75,000. [Section
. 106-387, sec. 837; andbenefits for peanuts arelimit. Included in this limit are1603]

. 107-25, sec. 10). Exempt fromlimited to $150,000.marketing loan gains, LDPs, loan
yment limits are marketing certificates[Section 169] Separately,forfeiture gains, and commodity
rs at the posted county pricemarketing loan benefits forcertificate gains. [Section 169]
o pay off marketing assistancewool and mohair are limited

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
ed by P.L. 106-78, sec.to $150,000. [Section
empt for limits are gains130(f)] Separately,
forfeiture of commodities at loanmarketing loan benefits for
turity.honey are limited to
$150,000. [Section 131(f)]
3.) Spouse Benefit and 3 Entity
.
change is made to existing policy thatSame as old law.A spouse allowance of anSame as old law and House bill.
additional $50,000 is created.
lows one person to receiveThe 3-entity rule is replaced by
ⁱ^{ki/CRS-RL31704}yments from 2 additional farms. Eitherapplying the limits to payments
^g/wments.from all sources (the so-called
^s^.ordirect attribution rule.) [Section
^le^ak 169]
^://wiki4.) Adjusted Gross Income
^h^ttp
Same as old law.A person with adjusted grossSame as Senate bill. [Section 1603]
income in excess of $2.5 million
is not eligible for payments
(unless 75% or more of income is
from farming, ranching, or
forestry). [Section 169]
5.) Payment Limitation
No provision.Creates a 1-year Commission onSame as Senate bill. [Section 1605]

the Application of Payment
Limitations for Agriculture to
analyze and make

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
recommendations on payment
limits. [Sections 181-187]
No provision.Authorizes appropriations upAuthorizes appropriations of such sums
$500 million per year foras are necessary for livestock
FY2003-2008 for livestockassistance. Prohibits use of CCC funds
assistance. [Section 168]to make such payments. [Section

10104]

arm Income Estimates
ⁱ^{ki/CRS-RL31704}No provision.Requires USDA to make farmSame as Senate bill. [Section 1615]
^g/wincome estimates for commercial
^s^.orproducers separate from all farms.
^le^ak[Section 173]
^://wiki. CCC Commodity Operations
^h^ttp
ovision.No provision.CCC is authorized to use privateSame as Senate bill. [Section 1609]
business to carry out commodity
purchases and sales. [Section

174]

plementing Regulations
gulations to implement Title I shall beRegulations to implementNo provision.Same as House bill. [Section 1601(c)]
d not later than 90 days afterTitle I shall be issued not(The 90 periods ends on August 12,
ust 12, 2002). [Sectionlater than 90 days after2002).
enactment. [Section 181(c)]
arm Savings Accounts

COMMODITYPROGRAMSH^OU^SEB^ILLS^EN^A^TEA^ME^NDME^N^TNEWLAW(P.L.107-171),
P^RIO^RL^AW/P^O^L^ICY(P.L.104-127),(H.R.2646)C^OV^ER^S2002-2006C^OV^ER^S2002-2007
C^OV^ER^S1996-2002C^OV^ER^S2002-2011
o provisions in current law.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
ⁱ^{ki/CRS-RL31704}90% of the previous 5-year
^g/waverage. [Section 114]
^s^.or
^le^ak. WTO Limits on Allowable Domestic Support
^://wikiin the law forIf USDA determines thatIf USDA notifies Congress thatSame as House bill, except the USDA
^h^ttp on commodity support programs.total spending forsupport program spending willis instructed to make adjustments to
uay Roundcommodity support willexceed the allowed limits and thatensure compliance. [Section 1601]

reement on Agriculture annual limit ofexceed the limits accepted byadjustments will be made, all
the United States in thespending on the designated
subsidies.Uruguay Round Agreementprograms will be suspended after
on Agriculture, adjustments18 months unless Congress
may be made to reducedisallows the adjustments.
spending to the limits but not[Section 164]
below the allowable limits.
[Section 181(e)]

II. CONSERVATION
ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
vironmental Conservation Acreage Program (ECARP)
VII of Food Security Act (FSA)Title II, Farm Security Act of 2001.Title II of the Agriculture,Title II of the Farm Security and

1985 as amended by Title III of theConservation, and RuralRural Investment Act of 2002.

deral Agriculture ImprovementEnhancement Act of 2001.
AIR) Act of 1996.
Purpose and Programs.No provisions.Renames ECARP theAdopts Senate Amendment
ⁱ^{ki/CRS-RL31704}uthorizes program through longComprehensive Conservation[Section 2006]
^g/wtion ofEnhancement Program (CCEP)and
^s^.orents, to be implementedplaces new name throughout Section
^le^akh the Conservation Reserve1230. [Section 207(a)]
^://wikiogram (CRP), Wetlands Reserveram (WRP), and EnvironmentalAmends Section 1230(a) to reflectchanged placement of conservation
^h^ttplity Incentive Program (EQIP).programs in 1985 FSA. [Section
a) of the 1985 FSA as211(a)]
ended by Section 331 of the 1996Repeals Section 1230A. [Section
]207(c)]
aith protection provisions[Note: Section 1230A is replacedNOTE: “Good Faith provisions
ection 755 of the FY2001with new good faith provisions,in Commodity Programs title
riculture Appropriations. [Sectiondiscussed below in H (13) (a).](Administration subtitle) apply
byto both conservation and
commodity programs [Section

1631]

e: ECARP is an umbrella under
RP, and EQIP are

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
riority Areas. Permits theRepeals section 1230(c). [SectionAdds a new subsection givingAdopts the House Provision
nate watershed,201(2)]priority to areas where projects could[Section 2006(c)]
te areas, or areas of specialbe completed most rapidly. [SectionNote: National Priority area for
nmental sensitivity for211(b)] the CRS are reaffirmed
elsewhere in the bill]
h the CRP, WRP, and EQIP.
c) of the 1985 FSA as
331 of the 1996
]
rogram (CRP)
ⁱ^{ki/CRS-RL31704} Period of Authorization andReauthorizes CRP through FY2011.Reauthorizes CRP through FY2006Adopts House provision on
^g/wrposes. Authorizes program[Section 211(a)][Section 212(a)]wildlife resources, with a
^s^.orh FY2002, and states theAdds wildlife resources to the purposesmodification to reauthorize the
^le^akof the program. [Section 211(b)]CRP through FY2007 [Section
^://wikiion1231 (a) of the 1985 FSA as2101(a)]
^h^ttpy Section322(a)(1) of the
]
Makes certain highlyRepeals the limit on enrolling marginalMakes eligible land that has aAdopts Senate amendment with
, marginal pastureland,pastureland to less than 10% of the totalcropping history for 3 of the 6 yearsmodifications, including that
ible. [Sectionenrolled acres, expands the definitionpreceding enactment (and landland must have been cropped in
b) of the 1985 FSA] of other eligible cropland to includeenrolled in the CRP on that date),4 of the 6 years before enactment
threats to soil and air quality, andand adds a new subsection thatto be eligible, and many new
makes eligible land in production for atmakes land enrolled under thespecific details on types of
least 4 years that would contribute tocontinuous signup and the buffereligible lands, such as allowing
conservation of ground and surfaceinitiative eligible for the regularproducers to enroll entire fields
water. [Section 212(a)] Adds a newprogram. [Section 212(b)] when more than 50% if eligible
Section1231(i) that requires balanceand the remainder of the field in
between soil erosion, water quality, and“infeasible” to farm . [Section
wildlife habitat when reviewing bids,2101]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
with implementing regulations to be
issued within 180 days of enactment.
[Section 212(d)]
Enrollment Ceiling AuthorizesRaises ceiling to 39.2 million acres.Raises ceiling to 41.1 million acres.Adopts House provision [Section
at 36.4 million[Section 212(b)] [Section 212(c)]2101(a)]
Section 1231(d) of the 1985
Section 332(b) of[Note: Section 215(a) water
.]conservation provisions lower the
CRP enrollment ceiling to 40.0
million acres; Section 215(b) allows
an additional 500,000 acres to be
ⁱ^{ki/CRS-RL31704}enrolled in the state Conservation
^g/wReserve Enhancement Program,
^s^.orbringing total enrollment to 40.5
^le^akmillion acres.]
^://wiki Contract. AllowsNo provisions. Amends Section 1231(e)(2) to allowAdopts Senate amendment
^h^ttpthe Secretary to extend contracts onallowing automatic 1-year
hardwood forests for up to 15 yearsextension for contracts expiring
ldlife corridors to beand limits annual payments to 50%in 2002 for land planted to
er than the 10 to 15 years allowedof the original contract amount, andhardwood trees. Adopts House
her contracts. [Sectionallow new contracts of 10 to 30provision requiring participants
e)(2) of the 1985 FSA]years. [Section 212(d)]to bid to reenroll land [Section

2101(a)]

servation Priority Areas.Allows land enrolled under thisGives priority to areas whereRetains priority areas language
ish, atsubchapter to be eligible to reenroll indesignation would lead to the mostof current law [section 2101(a)]

e request of a state, prioritythe CRP. [Section 212(c)]rapid completion of projects.
ersheds in specified and other[Section 212(b)]
eas where enrollment would
aximize water quality and habitat
Section 1231(f) of the 1985

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
]
ollment Subcategories.Expands the pilot program to all statesDeletes “pilot”, reauthorizes theAdopts House provision with
es a 500,000 acre pilotand limits enrollment in any state toprogram through FY2006, andmodifications to: limit total
ram, with enrollment limited to150,000 acres. [Section 215]increases the maximum size ofenrollment to 1 million acres and
state for smalleligible sites from 5 acres to 10 acresto 100,000 acres in any state.
lands(less than 5 acres) and(but only up to 5 acres are eligibleAdopts Senate amendment
in 6 specified upperfor payments). [Section 212(e)]increasing the maximum size of
dwestern states. [A neweligible sites. [section 2101(a)]
h), enacted in Title XI of
e FY2001 Agriculture
P.L. 106-387]
ⁱ^{ki/CRS-RL31704}
^g/ws of Owners andAllows certain economic uses ofAdds a new subsection that allowsAdopts House provision with
^s^.orperators. Sets limits on commercialenrolled lands if consistent with soil,irrigated land to be enrolled throughmodifications such as requiring
^le^aklands in the CRP, but allowswater, and wildlife conservation. Thesethe buffer initiative or the CREP atconsideration of the impacts on
^://wiki Section to permit harvesting orazing under very limiteduses include managed grazing andhaying (with reduced payments), sitingthe irrigated land rate. [Section212(f)] wildlife when locating windturbines. [Section 2101(a)]

^h^ttprcumstances. [Section 1232(a)(7)] of wind turbines, and harvestingAllows participants to plant native
a goal of planting 1/8 of the landbiomass to produce energy (withprairie grasses on enrolled marginal
led each year to trees or habitat.reduced payments). Deletespastureland, to permit harvesting or
c)] subsections (c) and (d). [Section 213] grazing for maintenance purposes on
llows alley-cropping. [Sectionlands enrolled through the buffer
d)] [Section1232(a) (7) of theinitiative or the CREP, and adds a
e 1990new subsection that makes crop
c) of the 1985production on other highly erodible
d) of the 1985land a violation of a CRP contract
ively] unless it has a cropping history or
was a building site when it was
purchased. [Section 212(g)]
Adds a new subsection that permits
wind turbines on CRP land (except

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
land enrolled in the continuous
enrollment), with payments reduced
based on the diminished value for
CRP. [Section 212(h)]
ayments. Lays out the terms andNo provisions.Adds a new subsection to provideGenerally restates existing law.
nditions for CRP payments.enrollment and cost sharing
f the 1985 FSA aspayments to producers who enroll
4(a) of theland in the buffer initiative or
)through a CREP. [Section 212(i)]
yments for easements limited toExempts payments for land enrolled
ⁱ^{ki/CRS-RL31704}ear. [Section 1239C(f)]in the buffer initiative or through a
^g/wCREP from the payment limit for
^s^.oreasements. [Section 212(j)]
^le^ak
^://wikient Limits.mits enrollment in the CRP andRepeals the provision allowing theSecretary to exceed the countyExempts land enrolled under thecontinuous signup from countyNo provision
^h^ttpRP to 25% of county cropland, andenrollment limit if operators are havingenrollment limit. [Section 212(k)]
asements to 10%; limits maydifficulty meeting compliance
exceeded if it would not adverselyrequirements. [Section 244(a)]
or if
erators are having difficulty
eting compliance requirements.
43(b) of the 1985 FSA as
1 of the 1996
]
unding and Administration.Reauthorizes mandatory fundingReauthorizes funding from the CCCReauthorizes mandatory funding
funding throughthrough FY2011. [Section241]through FY2006, and includesfrom FY2002 through FY2007,
CCC. [Section1241(a) of the 1985funding for technical assistance inincluding funding for technical
as amended by Section341 of thesupport this program. [Sectionassistance. [Section 2101(b)]

]211(c)]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Economic Effects. NoNo provisions.Requires the Secretary to report toAdopts Senate language with
the House and Senate Agriculturemodifications that require the
Committees on the economic andstudy to be submitted in 18
social effects of the CRP on ruralmonths and to include the
communities within 270 days ofeconomic value of recreation
enactment. Specifies 3 componentsopportunities. [Section 2101(b)]
of the analysis. [Section 212(l)]
rogram (WRP)
ment. The 1990 FACTAAllows enrollment of up to 150,000Authorizes WRP enrollment throughAdopts Senate amendment with
ⁱ^{ki/CRS-RL31704}ew Section1237 to the 1985acres per calendar year starting incalendar year 2006. [Section 214(c)]modifications raising the
^g/wA establishing the WRP and2002, with any acres up to the annualSets a maximum enrollment ceilingenrollment cap to 2.275 million
^s^.or enrollment at 975,000 acres.limit that is not enrolled can be enrolledof 2,225,000 acres, and an annualacres and authorizing the
^le^ak] Enrollment allowedin succeeding years, through FY2011.enrollment ceiling of 250,000 acres,program through 2007. [sections
^://wikih calendar year 2002. [Sectionb)(1) of the 1996FAIR] [Section 221(a)] Authorizes enrollment through FY2011.of which up to 25,000 acres can beenrolled in the new Wetland Reserve2201 and 2202]
^h^ttpnt ceiling increased from[Section 221(c)}Enhancement Program. [Section

75,000 acres.)214(b)]

Y2001
culture Appropriations (P.L. 106-
]
ollment Options. RequiresDeletes the 1/3 requirement, and theCreates a new Wetland ReserveModifies law to permit the use of
enrollment each using permanentdistinction between permanent andEnhancement Program that allowspermanent easements, temporary
ents, 30 year easements, andtemporary easements. [Section 221(b]agreements with state and localeasements, and cost-sharing
-term agreements.government, and non-governmentalagreements in any combination
b) of the 1985 FSA asorganizations to restore wetlands onbased on producer interest.
ded by Section333(a) of theland in or eligible to be enrolled in[Section 2202]

]the WRP. [Section 214(d)]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
asements and Agreements.Replaces the 4 specific prohibitionsNo provisions.Deletes subsection 1237A(h)
scribes the general terms ofwith a general statement to allow onlywhich allows restoration cost-
ents and agreements. Prohibitschanges permitted in the plan. Deletessharing agreements without an
ring habitat, spraying chemicalssubsection (e), which distinguishes 3easement. [Note: characterized
d mowing, any activity thatlengths of easements, and subsectionby conference Committee as
rades the land, and any other(h), which can require wetlands to beredundant.]
ty that counters the purpose ofrestored if there is no easement.
easement, unless permitted in the[Section 222]
Section 1237A of the 1985 FSA
Section333(d)(1) of
]
ⁱ^{ki/CRS-RL31704}ecretarial Duties, includingDeletes subsection (d), which requiresAmends Section 1237C(a) to provideNo provisions.
^g/wechnical Assistance. Describesthe Secretary to give priority to usingfunds from the CCC for technical
^s^.or sharing and technicalpermanent easements. [Section 223]assistance in support of the WRP.[Note: technical assistance
^le^aknce will be provided; and how[Section 214(a)] provided for elsewhere —
^://wikis will be set for determiningAmends Section1237C(a)(2) to addfunding subsection, below]
^h^ttpch bids to accept. [Section1237Cmonitoring and maintenance to the
] types of technical assistance
provided to participants. [Section

214(e)]

nership. LimitsReplaces 1990 acquisition date inNo provisions.Adopts House amendment, with
ogram entry if ownership changesSection1237E(a)(2) with provision tomodifications to address changes
the previous year,make eligible at any time land acquiredin ownership resulting from
s under whichthrough foreclosure where the previousforeclosure. [Section 2204]
ents can be modified orowner exercised a right of redemption.
rminated. [Section1237E of the[Section 224]
]
unding. Funding from the CCCReauthorizes mandatory fundingReauthorizes funding from the CCCReauthorizes mandatory funding
uthorized to implement the WRP.through FY2011. [Section 241]through FY2006, and includesfrom FY2002 through FY2007,
a) of the 1985 FSA] funding for technical assistance inincluding for technical

211(c)]

onmental Quality Incentives Program (EQIP)
rogram Purposes. Identifies 4Deletes reference to the programs thatSpecifies that EQIP is to promoteAdopts Senate Amendment with
ograms that EQIP replaces.were replaced; replaces the purpose ofproduction and environmentalmodifications that restate the
cifies that EQIP maximizeresponding to environmental threatsquality while maximizingpurpose of EQIP [Section 2301]
fits per dollarwith the purpose of providingenvironmental benefits per dollarDeletes definition of “maximum
ent while meeting 4 purposes.environmental benefits; and expandsspent by assisting producers to meetbenefit per dollar expended”
the benefits to include air quality.6 specified purposes. [Section[Section 2301] to conform to
][Section 231]213(a)]provision in section 2301
ⁱ^{ki/CRS-RL31704}striking the requirement for
^g/wmaximum benefit per dollar.
^s^.or
^le^akinitions. Defines “eligibleAdds non-industrial private forest landAdds definitions of “beginningAdopts Senate definitions of
nd”, “land management practice”,to “eligible land”, and replaces thefarmer or rancher”, “comprehensive“beginning farmer,” “land
^://wikiivestock”, “producer”, andnotion of posing an environmentalnutrient management”, “innovativemanagement practice,”
^h^ttpructural practice”. [Section 1240Athreat with the notion of providingtechnology”, “managed grazing”,“livestock,” “structural practice’”
]environmental benefits in that“maximum environmental benefitsand a modified definition of
definition; and “producer” is expandedper dollar expended”, “practice”, and“eligible land.”[Section 2301]
to include non-industrial private“program”. [Section 213(a)]
forestry. [Section 232]
rogram Administration.Reauthorizes EQIP through FY2011;Reauthorizes EQIP through FY2006;Adopts Senate provisions
es EQIP through 2002;authorizes contracts of 1 to 10 years;adds comprehensive nutrientmodified to: reauthorize EQIP
igible practices include structuralrepeals requirement that structuralmanagement planning to the list ofthrough Fy2007, to provide
agement practices;practices be selected to maximizeeligible practices; allows theincentive payments for
horizes contracts of 5 to 10 years;environmental benefits per dollar spent;Secretary to provide conservationcomprehensive nutrient
re of not more thandeletes limitation on payments to largeeducation to producers; authorizesmanagement plans; to permit
structural practices; prohibitslivestock operations to construct animalcontracts of 3 to 10 years; limitscontracts as short as 1 year; to
st sharing to large livestockwaste management facilities; and addsproducers to 1 contract for structuralprohibit the bidding down prices;
rations to construct animal wastea new provision to make incentivepractices to manage livestockand to provide higher cost share

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
anagement facilities; providespayments at an amount and rate tonutrients through FY2006; limitspayments to participating
entive payments for landencourage multiple land managementlarge livestock operators to 1beginning and limited resource
ement practices; providespractices, with emphasis on paymentscontract for a waste storage orfarmers. Adopts House
(not to exceed projectedfor practices that address “residue,treatment facility; authorizesprovisions eliminating the
s) for technical assistance; andnutrient, pest, invasive species, and airapplication and evaluationrequirement to maximize the
pes of private sources toquality management.” [Section 233]procedures for selecting applicants;environmental benefits per dollar
de technical assistance. prohibits bidding down; limits costspend. [Section 2301]
] sharing payments to 75% (up to 90%
for limited resource and beginning
farmers, or to address a natural
disaster); prohibits duplicate cost
sharing payments for the same
ⁱ^{ki/CRS-RL31704}practice; eliminates (by not
^g/wincluding) the limitation on cost-
^s^.or
^le^aksharing with large confined livestock
operations for waste management
^://wikifacilities; permits incentive
^h^ttppayments for technical assistance to
certified individuals to develop
comprehensive nutrient management
plans; and specifies circumstances
for terminating contracts. [Section

213(a)]

Offers. RequiresReplaces these provisions with generalAdds higher priority also to be givenAdopts Senate Amendment with
e Secretary to give higher priority tolanguage about aiding farmers tofor special projects initiated by amodifications giving higher
stance in priority areas, or tocomply with environmental laws andnew partnership program to addresspriority to applications that use
ions, or conservationencourage conservation, maximizingenvironmental issues placed incost-effective conservation
ority areas where states orthe benefits of using manure and otherSection 1243(f), and to innovativepractices and that address
calities are active partners, andsoil amendments, and encouragingtechnologies for structural or landnational conservation priorities.
ximize environmental benefits persustainable grazing systems. [Sectionmanagement practices. [Section[Section 2301]

r spent. [Section1240C of the234] 213(a)]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
]
ties of Producers. Lists 5No provisions.Almost identical to current law,Adopts the Senate amendment
is a prohibition againstexcept gives the Section greaterwith a modification to delete
counter the purposes oflatitude in determining theconfined livestock feeding
P. [Section1240D of the 1985appropriate penalty for violations.operations listing requirement in
] [Section 213(a)]the Senate bill [Section 2301]
rogram Plan. Lists the generalReplaces mention of management andAlmost identical to current law.Adopts Senate amendment with
structural practices with providing[Section 213(a)]modifications and adds a
t to the Section togreater environmental benefits. [Sectionrequirement that all recipients of
rticipate. [Section1240E of the235]funds for animal waste manure
ⁱ^{ki/CRS-RL31704}] systems must have
^g/wcomprehensive nutrient
^s^.ormanagement plans. [Section
^le^ak 2310]
^://wikiecretarial Duties. Assigns 5Deletes incentive payments fromAlmost identical to current law,Adopts Senate amendment
^h^ttpo provideimplementing structural and landexcept that it deletes (by not[Section 2301]
cal assistance and cost-share ormanagement practices. [Section 236]including) the duty of providing an
centive payments for structural andeligibility assessment. [Section
ement practices; another is213(a)]
pare an eligibility assessment.
]
ayment Limits and Timing.Limits payments to $50,000 annuallyLimits total payments under allAdopts the House provision,
payments to $10,000 annuallyand $200,000 per contract; deletescontracts to $30,000 annually.modified to limit total EQIP
ct; specifieslanguage allowing annual limits to beLimits 3 year contracts to $90,000 ,payments to any individual or
ceeded toexceeded to provide maximum$120,000 for a 4 year contract, andentity through FY2007 to
ximize the environmental benefitsenvironmental benefit per dollar spent,$150,000 for a contract that is 4$450,000 [Section 2301]

elays federaland repeals provisions to delay federalyears or longer. The Secretary can
penditures until the year after theexpenditures until the year after theexceed the $30,000 payment limit
ned. [Sectioncontract has been signed. [Section 237]under certain circumstances. [Section

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
]213(a)]
r Provisions. Lays outReplaces current language in SectionReplaces current language inAdopts the House amendments
porary transition provisions as1240H, with provisions that provideSection1240H with provisions thatwith modifications to restate the
P replaces 4 repealed programs.$30 million, in FY2002, $45 million inprovide $100 million annually fromactivities to be funded through
]FY2003, and $60 million annually inEQIP funds, starting in FY2003, forthe new ground and surface
FY2004-11 from the CCC for costcompetitive innovative matchingwater conservation program and
share payments and low interest loansgrants and specifies examples toto provide competitive
to encourage ground and surface waterinclude market systems for pollutioninnovation matching grants as
conservation. [Section 238] reduction, promoting carbondescribed in the Senate bill.
sequestration in soil and other BestProvides $25 million in FY2002,
Management Practices, and$45 million in FY2003, and $60
ⁱ^{ki/CRS-RL31704}protecting drinking water quality;million annually thereafter
^g/wpermits funds from other sources;through FY2007 for the water
^s^.orlimits funding to 50% of cost; fundsconservation program, with $50
^le^akunobligated by April 1 each year canmillion of the total going to
^://wikibe spent on other EQIP purposes.Adds new program as Section 1240Iconservation activities in theKlamath Basin. Provides no
^h^ttpfor groundwater conservation in thefunding or authorization for the
southern high plains to improveinnovative grants [section 2301]

irrigation efficiency and reduce
water use using EQIP funds. ($15
million in FY2003, $25 million in
FY2004-5, $35 million in FY2006,
and $0 in FY2007) Adds new pilot
programs as Section 1240J for
drinking water supplies, and for
nutrient reduction in the Chesapeake
Bay watershed using EQIP funds.
($10 million in FY2003, $15 million
in FY2004, $20 million in FY2005,
$25 million in FY2006, and $0 in

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
FY2007) [Section 213(a)]
unding and Administration.Authorizes mandatory spendingProvides $.5 billion in FY2002, $1.3Reauthorizes mandatory funding
through the CCC through FY2011.billion in FY2003, $1.45 billion infrom the CCC as follows: $400
h FY2002 from the CCC for[Section 241] FY2004-5, $1.5 billion in FY2006,million in FY2002, $700 million
P, with 50% of the total going toProvides $.2 billion for FY2001, $1.025and $.85 billion in FY2007; providesin FY2003, $1 billion in
actices related to livestockbillion for FY2002-3, $1.2 billion forfunding for technical assistance fromFY2004, $1.2 billion in FY2005
Section 1241 of the 1985FY2004-6, $1.4 billion for FY2007-9,the CCC. [Section 241(b)] and FY2006, and $1.3 billion on
A as amended by several annualand $1.5 billion for FY2010-11.Reauthorizes funding from the CCCFY2007. Funding for technical
][Section 242] through FY2006, and includesassistance is included in the
Reauthorizes the livestock provisionfunding for technical assistance intotal. 60% of funds are to be
through FY2011. [Section 243] support of this program. [Sectionprovided for practices related to
ⁱ^{ki/CRS-RL31704}211(c)] livestock and 40% for practices
^g/wrelates to crops. [Section 2701]
^s^.or
^le^ake Habitat Incentives Program (WHIP)
^://wiki Period of Authorization.Reauthorizes funding from the CCC atMoves WHIP to Section1240M ofAdopts House provision with
^h^ttp$25 million in FY2002, $30 million inthe 1985 FSA, reauthorizes fundingmodification to move WHIP to
unding) by theFY2003-4, $35 million in FY2005-6,from the CCC at: $50 million inthe 1985 FSA, making it subject
Y2002. [Section387(c) of the$40 million in FY2007, $45 million inFY2002; $225 million in FY2003;to compliance, and to require
]FY2008-9, and $50 million in FY2010-$275 million in FY2004; $325that the Secretary recognize
11. [Section 252]million in FY2005; $355 million inregional issues of concern when
FY2006; and $50 million indistributing funds. [Section
FY2007; all funding to remain2502]
available until spent. ProvidesReauthorizes mandatory funding
funding for technical assistance fromfrom the CCC: $15 million in
the CCC. [Section 217(g)]FY2002, $30 million in FY2003,
$60 million in FY2004, and $85
million annually in FY2005-
FY2007. [Section 2701]
No provisions.Requires consultation with STCs toAdopts Senate amendment

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
establish WHIP. [Section 217(b)]
ost-sharing Payments.No provisions.Requires the Secretary to use at leastNo provisions
horizes cost sharing payments for15% of the cost-sharing funds on
Sectionendangered and threatened species.
b)][Section 217(c)]
articipation Related to PublicNo provisions.Makes individuals and organizationsNo provisions
No provisions.leasing public lands eligible for
grants. [Section 217(e)]
Allows funds to be used on public
lands if they will benefit private
ⁱ^{ki/CRS-RL31704}lands. [Section 217(f)]
^g/wilot Program. No provisions.No provisions.Allows the Secretary to use up toAdopts the Senate amendment
^s^.or15% of the funds to enroll land for at[Section 2501]
^le^akleast 15 years to protect “essential
^://wikiplant and animal habitat.” [Section
^h^ttp 217(d)]
Farmland Protection Program (FPP)
unding Level. Provides up to aProvides up to $50 million annuallyMoves the FPP to Section 1238H-JAdopts the Senate amendment to
l of $35 million from the CCC bythrough FY2011 from the CCC.of the 1985 FSA[Section 218(a)],mover the FPP to the 1985 FSA.
2002. [Section388(c) of the 1996[Section 253(b)]and repeals Section 388 of the 1996Reauthorizes mandatory funding
]FAIR. [Section 218(c)] from the CCC: $50 million in
Provides from the CCC: $150FY2002, $100 million in FY203,
million in FY2002; $250 million in$125 million in FY2004 and
FY2003; $400 million in FY2004;FY2005, $100 million in
$450 million in FY2005; $500FY2006, and $97 million in
million in FY2006; and $100 millionFY2007. [Section 2701]

in FY2007; provides funding for
technical assistance from the CCC;
limits the federal share to 50%,

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
limits the portion of the non federal
share provided by the landowner or
in inkind goods and services to 25%,
and prohibits bidding down. [Section

218(b)]

Land. Makes betweenDeletes the maximum and minimumSame as Section 253(a); and alsoAdopts the Senate amendment
340,000 acresacreage limits, and makes historic anddefines eligible land to includewith a clarification that forest
ible if the soil is prime, unique orarchaeological sites eligible. [Sectioncropland, rangeland, grassland,land must be an incidental part of
uctive, and an offer is pending253(a)]pasture land and forest land that isan agricultural operation.
state or local government topart of an agricultural operation.[Section 2503]
ricultural uses. [Section[Section 218]
ⁱ^{ki/CRS-RL31704}a) of the 1996 FAIR]
^g/w Conservation Planning.No provisions.Identical to current law. [SectionSame as current law [Section
^s^.or
^le^akon plan if the218]2503]
hly erodible; the Section
^://wikision of land to a
^h^ttpss intensive use in the plan.
b) of the 1996 FAIR]
Participants. MakesExpands eligibility to also includeIdentical to Section 253(c). [SectionAdopts House provision [Section
igible any state or local agency thatfederally recognized Indian tribes, and218(a)]2503]
s made an offer to purchase anon profit organizations that meet
ion easement. [Sectionspecified qualifications. [Section
a) of the 1996 FAIR] 253(c)]
Program Options. NoNo provisions.Allows up to $10 million to be spentAdopts Senate amendments,
annually to provide matching grantsmodified, calling it a farm
for market development, andviability program and
technical assistance to participants.authorizing appropriation of
[Section 218(a)]necessary funds for FY2002
through 2007. [Section 2503]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
. Other Programs (Including Technical Assistance)
rce Conservation andPermanently reauthorizes program, andPermanently reauthorizes program,Adopts the Senate amendment,
ent Program (RC&D).makes numerous other, mostly minor orand makes numerous other, mostlymodifies to prohibit RC&D
ovides assistance to encourage andtechnical amendments. [Section 254]minor or technical amendments.Councils from using another
prove the capacity of state and[Note: Many of the changes in the two[Section 216]person or entity to assist in
overnments and non profits inbills are different from each other, but[Note: Many of the changes in thedeveloping or implementing an
l areas to develop and implementthey do not change the basic intent ortwo bills are different from eacharea plan.[Section 2504]
rams. Authorizedoperation of the program.]other, but they do not change the
h FY2002. [Title III of thebasic intent or operation of the
rm Tenant Act asprogram.]
ded by §1528-1538 of the 1981
ⁱ^{ki/CRS-RL31704}]
^g/wall Watershed RehabilitationAuthorizes $15 million annually inNo provisions.Adopts House provision,
^s^.or
^le^akogram. Provides financial and“FY2002 and each succeeding year” tomodified to authorize mandatory
chnical assistance to rehabilitatefund the Small Watershedfunding from the CCC at: $45
^://wikier structures that are nearing orRehabilitation Program. [Section 257] million in FY2003, $50 million
^h^ttpn life. in FY2004, $55 million in
es appropriations of $5FY2005, $60 million in FY2006,
illion in FY2001, $10 million in$65 million in FY2007.
2002, $15 million in FY2003, $25Additional funding from
Y2004, and $35 millionappropriations also was
Y2005. [Authorized in Sectionauthorized at $45 million in
FY2003, $55 million in FY2004,
arehouse Improvement Act of 2000]$65 million in FY2005, $75
million in FY2006 and $85
million in FY2007. [Section

2505]

of Private GrazingAdds encouraging the use ofMoves the program to a new SectionAdopts Senate amendment,
ands. Provide coordinatedsustainable grazing systems to the list1240P of the 1985 FSA and, makesmodified to delete the findings
nical, educational, relatedof activities for which assistance can benumerous other, mostly minor,section and reauthorized the

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
sistance to preserve and enhanceprovided. [Section 251]changes, and authorizes $60 millionprogram through FY2007.
-owned grazing lands;annually through FY2006. [Section[Section 2502]
es 2 demonstration districts,217(a)]
inRepeals provisions establishing
1996, $40 million in FY1997, andprogram in Section 386 of the 1996
FY1998 and eachFAIR. [Section 217(b)]
ear. [Section 386 of the
]
echnical Assistance. AllowsAllows producers to seek assistanceAdds a new Section 1244(f) to theAdopts the House amendment,
ns who need and apply afrom third parties, who have the1985 FSA f) requiring the Secretarymodified to: require that funding
iance plan tospecified expertise, and requires theto create a certification program forfor technical assistance for each
ⁱ^{ki/CRS-RL31704}ain technical assistance fromSecretary to develop a system forthird parties to provide technicalprogram under the
^g/wapproving qualified third parties whoassistance, specifies standards forComprehensive Conservation
^s^.or Section must document a rejectionprovide technical assistance to EQIPcertification, permits the Section toEnhancement Program come
^le^akstance from those sourcesparticipants within 6 months ofrepay landowners who use thirdfrom CCC funds; implement a
^://wikid) of the 1985 FSA] enactment. [Section 244(b)]parties, and establishes an advisorycommittee for the certificationprogram for certifying andpaying third party technical
^h^ttpprogram. [Section 204]assistance providers within 180
days of enactment; and specify
eligible expertise, sources of
assistance in the interim, and
permits assistance by non-federal
entities. [Section 2701]
tate Technical CommitteesNo provisions.Expands membership in STCs toNo provision

TC) Creates STCs , lists theinclude expertise in forestry, restates
its responsibilities to mesh with
“information,other changes this legislation makes
sis, and recommendations” onto conservation programs, and makes
menting conservationsubcommittees and local working
ovisions (including severalgroups working on STC business
fied topics) to the stateexempt from FACA. [Section 221]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
empts the STC
ACA meeting requirements.
]
Conservation Compliance.No provisionsNo provisionsMakes technical changes and
t federal farm programprohibits the Secretary from
nefits for producers who cultivatedelegating authority to make
hly erodible lands without anhighly erodible land and wetland
and implementeddeterminations to a private
ation plan or who alterperson or entity. [Section 2002]
rops. [Section
ⁱ^{ki/CRS-RL31704}d) of the 1985 FSA]
^g/wricultural ManagementNo provisionsNo ProvisionsLists permitted types of
^s^.or
^le^akProvides cost-sharingconservation practices; retains
stance to producers to applythe $50,000 annual payment
^://wikiservation in 15 specified stateslimit, and permanently
^h^ttpFederal Crop Insuranceappropriates mandatory funding
ram participation has beenfrom the CCC, with $20 million
ally low. [Section 524 of theannually in FY2003 through
ricultural Risk Protection Act ofFY2007 and $10 million
annually thereafter. [Section

2501]

Authorized ProgramsRepeals provisions: creating theRepeals numerous conservationAdopts Senate provisions.

d Activities. No provisions.Wetlands Mitigation Banking Programprograms in current law and
[Section 1222(k) of the 1985 FSA];reauthorizes them in other sections
exempting CRP payments from anyof farm law, as noted in the entries
limits under the 1985 FSA, the 1990above.
FACTA, and the 1949 AA [Section
1234(f)(3)]; protecting the base history

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
of land enrolled in the CRP [Section
1236 of the 1985 FSA]; exempting
WRP payments from any limits under
the 1985 FSA, the 1990 FACTA, and
the 1949 AA [Section 1237D(c)(3)] and
; creating the Environmental Easement
Program [Section1239 of the 1985
FSA], the Conservation Farm Option
[Section 1240M of the 1985 FSA], and
the Tree Planting Initiative
[Section1256 of the 1985 FSA] [Section
261] Repeals the National Natural
ⁱ^{ki/CRS-RL31704}Resources Conservation Foundation
^g/w[Section 351-360 of the 1996 FAIR]
^s^.or[Section 262]
^le^ak
^://wiki Programs
^h^ttp
rograma. Places GRP in Section 1238 of thea. Places GRP in Section 1238N-P ofAdopts House provision
). 1985 FSA creating a 2 million acrethe 1985 FSA, creating a 2 millionmodified to enroll of up to 2
e. No provisions.grasslands reserve, split evenly betweenacre grasslands reserve, of which upmillion acres in tracts of 40 acres
restored grasslands and virgin (neverto 500,000 acres will be nativeor more, and permits the
cultivated) grasslands. Sectiongrasslands in tracts of 40 acres orSecretary to waive the minimum
1238(b)(1) sets minimum size forless. Section 1238N sets minimumacre per site limit. [Section
enrolled parcels at 50 contiguous acressize at 40 contiguous acres east of2401]
east of the 90^th meridian and 100the 98^th meridian and 100 contiguous
contiguous acres west of the 90^thacres west of the 98^th meridian
meridian. [Section 255(a)] [Section 219(a)]
ible Lands. No provisions.b. Defines eligible land to includeb. Same definition of eligible land asb. Adopts Senate provision
natural grass and shrub land that has ain H.R. 2646, except that it alsomodified to include restored,
potential to serve as important plant orenrolls incidental additional land thatimproved, or natural grassland,

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
animal habitat, or has been historicallyis necessary for the administrativerangeland, or pasture land,
dominated by natural grass orefficiency of an easement.[Sectionincluding prairie. [Section 2401]
shrubland. [Section 255(a)]219(a)]
Enrollment Options. Noc. Spends at least 2/3 of funds onc. Allows permanent easements, 30c. Adopts Senate provision,
contracts of 10 to 20 years, and theyear easements, the longestmodified to enroll 40% of
remainder on 30 year or permanenteasements allowed by state law, andacreage in 10, 15 or 20 tear
easements. [Section 255(a)]30 year rental agreements. Allowsrental agreements, and 60% in 30
the Secretary to delegate easementsyear rental agreements, or 30
to private conservationyear permanent easements.
organizations, land trusts, and state[Section 2401]
ⁱ^{ki/CRS-RL31704}agencies. [Section 219(a)]
^g/w
^s^.or Permitted and Prohibited Uses ofd. Permits contract holders to used. Similar to H.R. 2646 for permittedd. Adopts House provision
^le^akands. No provisions.common grazing practices, and permitsand prohibited uses of enrolledmodified to also permit fire
^://wikihaying and mowing outside the birdlands. [Section 219(a)]rehabilitation and construction of
^h^ttpnesting season, but prohibits allfire breaks and fences. [Section
agricultural production (except hay) and2401]
almost all practices that require
disturbing the land surface in section

1238(A)(b). [Section 255(a)]

Criteria for Bids. Noe. Requires the Secretary to develope. Requires the Secretary to worke. Adopts House provision
ranking criteria for reviewingwith STCs in developing rankingmodified to also emphasize land
applications, with emphasis on supportcriteria, and to give priority tounder the greatest threat of
for native vegetation, grazinggrazing operations, maintaining orconversion. [Section 2401]

operations, and plant and animalrestoring biodiversity, and land
diversity, and to set the terms forunder the greatest threat of
restoration. [Section 255(a)]conversion. [Section 219(a)]
f. Describes how payment levels are tof. Describes how payment levels are

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
ment Levels. No provisions.be set for each form of participation,to be set for each form off. Adopts House provision
sets cost sharing payments forparticipation, provides that rentalmodified to use State formula for
restoration at 90% for virgin grasslandsagreements be reviewed and adjusted30 year agreements and all
and 75% for restored grasslands, andat least once every 5 years, limitseasements, and moves support
provides technical assistance. [Sectioncost-sharing payments to 75% forfor technical assistance to the
255(a)]restoration, and provides technicalfunding subsection of the
assistance. [Section 219(a)] conservation title [Section 2401]
Penalties for Violation.g. No provisions.g. Describes the roles of the
Secretary and the landowner ing. Provides that agreements
implementing restorationremain in force but that owner
agreements, and lists the penaltiesmay be required to refund
ⁱ^{ki/CRS-RL31704}for violations, and allows periodicpayments, with interests.
^g/wsite inspections. [Section 219(a)][Section 2401]
^s^.or
^le^akunding. No provisions.h. Amends Section 1241 of the 1985h. Amends Section 1241 of the 1985
^://wikiFSA to provide a total of up to $254FSA to provide such CCC sums ash. Adopts House provision,
^h^ttpmillion through the CCC throughnecessary to implement thismodified to provide up to $254
FY2011 to implement this program.program. [Section 219(b)]million in mandatory funding
[Section 255(b)]from the CCC for FY2003-2007,
and provide technical assistance.
[Section 2701]
armland StewardshipAdds this program as a new SectionNo provisions.No provision

ogram. No provisions.1239 to the 1985 FSA. It is to be
administered by NRCS “to more
precisely tailor and target” current
conservation programs, using program
funding on a watershed basis, where
possible. Participation requires
matching funds, and can involve other
agencies. Participants submit a

256]

[Note: No appropriations are authorized
for this program, so all funding would
come from existing programs]
Conservation Security ProgramNo provisions.Conservation Security ProgramAdopt Senate amendment
P). No provisions.(CSP). Authorizes a CSP inmodified to: authorize the
Section 1238 — 1238B of the 1985programs through FY2007,
FSA. It defines 22 terms and listsdecrease the maximum tier II
ⁱ^{ki/CRS-RL31704}13 program purposes. Topayment to $45,000, make
^g/wparticipate, producers must have anparticipants subject to
^s^.orapproved plan for eligible landscompliance, and delete the state
^le^ak(land in the CRP and WRP, or thatpilot program provisions.
^://wikihas not been in production at least 3of the preceding 10 years, is[Section 2001]

^h^ttpineligible). Producers can receive an
advance payment when they enroll,
base payments, and bonus payments
for certain practices. Practices
required for each of 3 tiers of
participation are specified, and
minimum requirements for each will
be determined at the state level and
approved by the Secretary. Land in
an approved plan will be enrolled in
a contract between FY2003 and
FY2006; Tier 1 contracts will be 5
years; Tier II and III contracts will
be 5 to 10 years, and contracts can be

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
renewed. Total annual payments are
limited to $20,000 for Tier I,
$35,000 for Tier II, and $50,000 for
Tier III. Specified practices are
ineligible. State pilot programs are
authorized. [Section 201] Amends
Section 1241 of the 1985 FSA by
adding a new subsection (c) to
provide “such funds as are
necessary” from the CCC through
FY2006. [Section 202]
Allows implementation to start on
ⁱ^{ki/CRS-RL31704}the date of enactment. [Section 206]
^g/w
^s^.orartnerships and Cooperation.No provisions.Adds a new Section 1242(f) to theAdopts Senate amendment
^le^ak1985 FSA to allow special projectsmodified to provide funds to
^://wikias recommended by a stateconservationist, which can respondaddress natural resourceproblems related to agricultural
^h^ttpto meeting the requirements ofproduction, delete identification
specified federal laws or addressingof specified federal laws, and
watersheds or other areas withprovide funding by using up to
significant environmental problems.5% of all mandatory
Participants agree to a plan to adjustconservation program funding.
implementation of conservation[Section 2002]
programs to increase environmental
benefits. Funding uses 5% of EQIP
funds annually, with any unused
funds to go to other EQIP activities
that year. [Section 203]
No provisions.Authorizes $15 million annuallyNo provision

ogram. No provisions.through FY2006 to implement a new
program to purchase floodplain

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
easements at Section1240N of the

1985 FSA. [Section 217(a)]

Great Lakes Basin Soil ErosionNo provisions.Authorizes $5 million annuallyAdopts Senate provisions
diment Control Program.through FY2006 to implement a newmodified, and authorizes
soil erosion and sediment controlappropriations of $5 million
program for the Great Lakes basin atannually from FY2002-2007.
Section 1240O of the 1985 FSA.[Section 2502]
[Section 217(a)] Note: Conference Committee
report states that funding is to be
provided through FY2006.]
ⁱ^{ki/CRS-RL31704}n Program.No provisions.Reduces CRP enrollment ceilingfrom 41.1 million acres to 40.0No provisions.

^g/wmillion acres. [Section 215(a)]
^s^.or
^le^akAuthorizes two programs. One will
allow up to 500,000 acres to be
^://wikienrolled in state CREPs to contribute
^h^ttpto the restoration of a watercourse or
lake, and permit purchasing or
leasing water rights. Priority given
to places where more than 20% of
the cost would be paid from non
federal sources, and promotes any of
4 specified benefits for wildlife, fish
and plants. Protection of state water
laws are specified. Eligible states
are Nevada, California, New
Mexico, Washington, Oregon, New
Hampshire, and Maine; others can
apply to participate. [Section 215(b)]
Authorizes a new Water
Conservation Program in Section

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
1240R of the 1985 FSA. NRCS will
provide cost sharing assistance to
increase irrigation efficiency,
convert production to less water-
intensive crops, and acquire water
rights. Protection of state and other
water laws required. Nebraska and
South Dakota are ineligible, while
the same 7 states as in the program
above are eligible, and others may
apply. Authorizes funding from the
CCC at $25 million in FY2002, $52
ⁱ^{ki/CRS-RL31704}million in FY2003, and $100 million
^g/win FY2004-FY2006, with $5 million
^s^.orallocated each year to monitoring
^le^akactivities. [Section 215(c)]
^://wiki
^h^ttpSource WaterNo provisions.Authorizes $5 million annuallyAdopts Senate provision,
otection Program. No provisions.through FY2006 in Section 1240Qmodified to authorize
of the 1985 FSA for a new programappropriations of $5 million
to use technical assistanceannually from FY2002-2007.
capabilities of state rural water[Section 2502]
associations that operate wellhead orNote: Conference Committee
groundwater protection programs.report says funding is provided
[Section 217(a)]through FY2006]
rganic Agriculture ResearchNo provisions.Provides $50 million from the CCCNo provision

ust Fund. No provisions.in FY2003, to remain available until
spent and to accrue interest, in
FY2003 to establish a new research
fund on organic products. [Section

231]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
No provisions.Establishes a National OrganicNo provision
ndowment Institute. NoResearch Endowment Institute to
develop and implement a plan for
research on organic products using
the trust fund (established in Section

231). [Section 232]

berry Acreage Reserve.No provisions.Authorizes purchase of permanentAdopts Senate provision but
easements on wetlands and buffermoves to Miscellaneous
strips that are part of a cranberryProvision section of bill [Section
operation from willing sellers.10608]
Authorizes $10 million annually for
ⁱ^{ki/CRS-RL31704}this activity. [Section 261]
^g/wlamath Basin. No provisions.No provisions.Authorizes the Secretary to create aNo separate provision, but
^s^.or
^le^akfederal task force (membershipprovides $50 million to assist
specified) to develop a coordinatedproducers in this basin as soon as
^://wikifederal effort to manage waterpossible under the new Ground
^h^ttpresources in this basin (6 dutiesand Surface Water Conservation
specified). In addition to usingprogram under EQIP placed in
existing programs, the task force willSection 2301.

establish a grant program to carry
out its responsibilities. [Section

262(a) and (b)]

The task force will develop an initial
report within 180 days of enactment,
a draft 5-year plan to implement its
duties within 60 days thereafter, and
a final plan within 1 year of
enactment. Eight items to be
considered in the plan are specified.
[Section 262(c)]
Consultation with specified non-

262(d)]

Authorizes a total of $175 million
from the CCC from FY2003 through
FY2006, and specifies where a small
portion of the funds are to be spent.
Funds may not be obligated after
September 30, 2006. [Section

262(e)]

inal LakesNo provisionNo provisionAdds new provision providing
ⁱ^{ki/CRS-RL31704}$200 million in mandatory
^g/wfunding from the CCC to the
^s^.orBureau of Reclamation ro
^le^akprovide water to at-risk natural
^://wikidesert terminal lakes; specifiedthat no funds can be used to
^h^ttppurchase or lease water rights.
[Section 2507]
vation CorridorNo provisionNo provisionAdds new provision establishing
onstration Program.a program on the Delmarva
Peninsula to demonstrate local
conservation and economic
cooperation using existing
USDA programs, based on a
plan developed by 1 or more of
the eligible states or local
governments. Criteria and time
limits for USDA review of
proposals are specified.
Programs are 3-5 years long and

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
a progress report is required after
3 years. Authorizes
appropriations as necessary
annually from FY2002-2007
with the federal portion to pay
for up to half of the total cost
[Section 2601]
inistrative Requirements
r Conservation Programs
aith Actions. NoNo provisions.a. Adds a new Section 1244(a) to thea. Good faith provisions in the
1985 FSA giving the Secretary theAdministration subtitle of the
ⁱ^{ki/CRS-RL31704}option of granting relief toCommodity programs title apply
^g/wconservation program participantsto both conservation and
^s^.orwho act in good faith under acommodity programs. [Section
^le^akcontract, and are subsequently1613]
^://wikidetermined to be in violation. Typesof relief and exceptions are
^h^ttpspecified. [Section 204]
nce for Limited ResourceNo provisions.b. Adds a new Section 1244(b)Adopts Senate provisions,
which provides necessary funds frommodified to provide this
the CCC to assist certain limitedassistance to foster new farming
resource, socially disadvantaged, andopportunities and to enhance
beginning producers, and Indianenvironmental stewardship
tribes to participate in conservation[Section 2004(a)]

programs. The Secretary may
contract with other entities to
provide these services. Adds a new
Section 1244(c) allowing the
Secretary to provide incentives to
these producers(except socially-

204]

c. No provision
Data Collection and ProgramNo provisions.c. Adds a new Section 1244(d)
which requires the Secretary to
collect data that would permit
evaluation of conservation programs
[Section 204]
d. No provisions
No provisions.d. Adds a new Section 1244(e)
which requires the Secretary to
ⁱ^{ki/CRS-RL31704}provide mediation services when an
^g/wadverse decision is made about a
^s^.orconservation program. [Section 204]
^le^ak[Note: Section 1244(f), on technical
^://wikiassistance, is discussed above in
^h^ttp G4.]
Adopts Senate provisions,
of Personal Information.No provisions.e. Adds a new Section 1244(g) tomodified to protect information
protect the privacy of personalat natural resource inventory
information about individuals relatedcollection data points.
to conservation programs (not[Section 2004(a)]
including public information on
payments, etc). [Section 204]
No provision, but law includes a
ands. No provisions.No provisions.f. Adds a new Section 1244(h) whichsection in the Miscellaneous title
requires the Secretary to cooperatethat requires the Secretary to
with a tribal government whenreview the operation of programs
carrying out conservation programsincluding conservation programs
on tribal lands. [Section 204] available to producers on tribal
and trust lands. [Section 10910]

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
g. Adopts Senate provision,
Regional Equity of ConservationNo provisions.g. Requires that each state receive amodifies to give priority to
. No provisions.total of $12 million annually fromproviding funds, excluding CPR,
FY2002 through FY2006, inWRP, and CSP) in states that
conservation funds. Of the total, $5have not received $12 million by
million is to be used for EQIP, andApril 1 of each year.
$7 million is to be used for other[Section 2701]
conservation programs, with any
portion not obligated by April 1of
the fiscal year to be reobligated to
other specified programs. [Section

241]

ⁱ^{ki/CRS-RL31704}
^g/w
^s^.or
^le^akplementation. No provisionsNo ProvisionsRequires all implementing
^://wikielevant to newregulations for conservation,unless otherwise specified, to be
^h^ttpissued within 90 days of
enactment. [Section 2702]
ent of ConservationNo Provisions.Assessment of ConservationAdopts Senate provision,
ograms. No provisions. Programs. Requires the Secretarymodified to require that the
to develop a plan to better coordinatereport, with implementing
and consolidate the implementationproposals be submitted to the
of conservation programs. [SectionCommittees by December
205(a)] 32,2005. Provisions related to
Requires the Secretary to provide thethe implementation of the Soil
plan (and recommendations) to bothand Water Conservation Act and
agriculture committees within 180updating technical standards are
days of enactment. [Section 205(b)]deleted. [Section 2005]

Requires the Secretary to provide a
plan (with a cost estimate) for

ERVATION HOUSE BILLSENATE AMENDMENTNEW LAW
PRIOR LAW/POLICYH.R. 2646(S. 1731, AMENDED)(P.L.107-171)
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
updating the national conservation
program required by the Soil and
Water Resources Conservation Act
of 1977 to both agriculture
committees within 180 days of
enactment, and to report to both
committees of the status of plan
implementation by April 30, 2005.
[Section 205(c)]
Requires the Secretary to revise
conservation technical standards
within 180 days of enactment , and
ⁱ^{ki/CRS-RL31704}to update them at least once every 5
^g/wyears. [Section 205(d)]
^s^.or
^le^ak
^://wiki
^h^ttp

III. AGRICULTURAL TRADE AND AID
RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
rograms
rogram (MAP)
MAP helps exporters (mainlya. Extends current law, except ita. Extends current law, excepta. Extends current law through
t industry trade associations, whoincreases mandatory funding to notthat in addition to any fundsFY2007 at the following
s includingmore than $200 million yearly inspecifically appropriated for themandatory funding levels: $100
ricultural cooperatives and smallCCC funds through FY2011.program, mandatory funding ofmillion for FY2002; $110 for
sses) finance promotional activities[Section 301]not more than $100 million forFY2003; $125 million for
for more consumer-FY2002; $120 million forFY2004; $140 million for
ⁱ^{ki/CRS-RL31704}her value products).FY2003; $140 million forFY2005; $200 million for
^g/w) funding of notFY2004; $180 million forFY2006; $200 million for
^s^.or than $90 million yearly in CCCFY2005; and $200 million forFY2007. [Section 3103]
^le^akh FY2002. [AgriculturalFY2006 (in CCC funds or
^://wikiAct of 1978 as amended by SectionAgriculture Improvementequivalent CCC commodities).[Section 322]
^h^ttpFAIR) Act of 1996]
b. No provision.b. Priority, for funds in excess ofb. In providing funds in excess
$90 million in any year, forof FY2001 levels (i.e., $90
eligible organizations that havemillion) Secretary shall, for
not participated in the past, andproposals from new program
for programs in emergingparticipants and for emerging
markets. [Section 322]markets, give consideration
equal to that given to current
participants. [Section 3103]
c. No provision.c. New U.S. Quality Export
Initiative (using appropriatedc. No provision.

MAP, FMDP funds), to promote
U.S. products with a new “U.S.

322]

. Foreign Market Development
rogram (FMDP)
DP helps U.S. exporters (mainlya. Extends current law, except setsa. Extends current law, excepta. Extends current law, excepts
h commodity based trademandatory funding at $37 million insets mandatory funding of $37.5sets mandatory funding at $34.5
CCC funds yearly through FY2011.million for FY2002; $40 millionmillion annually from FY2002
ctivities overseas. Statutory authority (at[Section 305]for FY2003; and $42.5 million forto FY2007. [Section 3105]
h sums as necessary) through FY2002;FY2004 and subsequent years (in
g is $28 million per year.CCC funds or equivalent CCC

8 ascommodities). [Section 324]

ⁱ^{ki/CRS-RL31704}of FAIR Act of
^g/w
^s^.or
^le^akMDP has focused on promotingb. New emphasis on exporting value-b. Establishes a priority, forb. In providing funds in excess
^://wiki bulk and partially processedmmodities, targeted to foreignadded products to emerging markets.Requires annual report to Congressfunds above $35 million in anyyear, for eligible organizationsof FY2001 levels (i.e., $28million) Secretary shall, for
^h^ttp— although about aon program. [Section 305]that have not participated in theproposals from new program
d of program promotes value-addedpast, and for programs inparticipants and for emerging
emerging markets. [Section 324]markets, give consideration
equal to that given to current
participants. Calls for “a
continued significant emphasis”
on value-added products to
emerging markets. Requires
annual report to Congress.
[Section 3105]
ort Enhancement Program
EEP)
authorizes cash payments or CCCa. Current law extended througha. Current law extended througha. Current law extended through
s subsidies to helpFY2011, at current level of up toFY2006 at current level of up toFY2007, at current level of up

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
porters sell agricultural products$478 million per year. [Section 304]$478 million per year. [Sectionto $478 million per year.
h not statutorily prescriptive,323][Section 3104]
wheat and other grains have used
more competitive prices in
rgeted foreign markets. Authority
h FY2002, with CCC funding at up
million per year. [Agricultural
Act of 1978 as amended by Section
y be used to help mitigate or b. No expanded definition. b. Expands the definition of unfair b. Expands definition of unfair
the effects of unfair trade practices,trade practices to include: (1)trade practices to include: (1) an
ⁱ^{ki/CRS-RL31704} foreign act or policypricing practices by an exportingexporting STE that prices its
^g/wt “violates, or is inconsistent with, thestate trading enterprise (STE) thatcommodities inconsistently vs.
^s^.ornies“are not consistent with soundsound commercial practice; (2)
^le^akUnited States under, anycommercial practices conductedprovision of subsidies that
^://wikireement...” or “is unjustifiable,in the ordinary course of trade,”decrease U.S. export market
^h^ttpasonable, or discriminatory andor (2) changing U.S. “exportopportunities or unfairly distort
or restricts United Statesterms of trade through amarket opportunities to the
ommerce.” [Agricultural Trade Act ofdeliberate change in the dollardetriment of U.S. exporters; (3)
exchange rate of a competingunfair technical barriers to trade
exporter.” [Section 323]including commercial
requirements adversely
affecting new technology like
biotechnology and unjustified
sanitary or phytosanitary
restrictions; (4) unfair
implementation of tariff rate
quota rules; (5) failure to meet
trade agreement obligations
with the United States. [Section

3104]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
ogram
IP)
P authorizes cash or CCCExtends current law through 2011.Extends current law throughExtends current law through
to help[Title I-C, Section 143]FY2006. [Title I-C, Section 133]2007. [Title I- E, Section 1503]
porters sell specified dairy products at
competitive prices in targeted
ign markets. Authority through
Y2002, with CCC funding to provide
ommodities to the maximum levels
onsistent with U.S. obligations as a
ⁱ^{ki/CRS-RL31704}mber of the World Trade
^g/wanization. [Food Security Act of 1985
^s^.or the FAIR
^le^ak
^://wiki
^h^ttpuarantees (GSM)
through FY2002 with CCCa. Extends current law througha. Extends current law througha. Extends current law through
ng, where USDA guaranteesFY2011. [Section 306]FY2006. Requires a report toFY2007. Instead of report,
ommercial financing of not less thanCongress within 1 year on therequires regular consultations
annually of U.S. agriculturalstatus of multilateral negotiationswith Congress on the status of
ports. Financing can be used for short-regarding agricultural exportmultilateral negotiations
3 years;credit programs. [Section 321]regarding agricultural export
-term credit (GSM-103), forcredit programs. [Section
ears. GSM programs are used in3102]

untries where needed financing may
ot be available without the CCC
redit
uarantees must be to promote processed
h-value agricultural products.)
Agricultural Trade Act of 1978 as

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
b. No change in supplier credit term.b. Permits guarantees of supplierb. Permits supplier credit
r Credits feature permits CCCcredits for up to 12 months.guarantees for up to 360 days,
issue credit guarantees for repayment[Section 321]subject to appropriations for any
t made available by a U.S.loan terms longer than the
porter to a foreign buyer for up to 180current 180 days. [Section
s. [Agricultural Trade Act of 1978 as3102]
of the FAIR Act]
erging Markets Program
. Requires CCC through FY2002 toa. Extends current law througha. Extends current law througha. Extends current law through
ⁱ^{ki/CRS-RL31704}r no less than $1 billion per year inFY2011. [Section 308]FY2006. [Section 332]FY2007. [Section 3203]
^g/wrect credit, or credit guarantees, for
^s^.orports to emerging markets (formerly
^le^akerging democracies). [Food,
^://wikiTrade Act
^h^ttp
quires CCC to provide $10 millionb. Increases this funding to $13b. No increase.b. No increase.
ually through FY2002 to send U.S.million annually. [Section 308]
sors to emerging markets. Food,
Conservation and Trade Act
by Section 277 of
ood Aid Programs
.L. 480 (Food for Peace) General
combat hunger and encouragea. Extends P.L. 480 (i.e., authoritya. Extends P.L. 480 througha. Extends P.L. 480 authority
velopment overseas. Title I makesto enter into new agreements)FY2006. [Section 311]through FY2007. [Section
port credit available on concessionalthrough FY2011. [Section 307]3012]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
(e.g. low interest rates for up to 30
ears); Title II authorizes donations for
gency food aid and non-emergency
anitarian assistance. Authority to
L. 480 agreements
are funded mainly through annual
riations) is through FY2002.
Agricultural
rade Development and Assistance Act of
as amended by Section 217 of the
ⁱ^{ki/CRS-RL31704}ress has stated five specificb. Adds “conflict prevention” as ab. Same as House bill [Sectionb. Adds “prevent conflicts” as a
^g/w. 480 (e.g. combat hunger,new purpose. [Section 307]301]new purpose. [Section 3001]
^s^.orpand international trade, etc.). [Section
^le^ak
^://wiki
^h^ttpood Aid Consultative groupc. Extends Food Aid Consultativec. Extends Food Aidc. Extends Food Aid
sting of specified federal officials,Group through FY2006; clarifiesConsultative Group throughConsultative Group through
voluntarywhat the group is to review toFY2006. [Section 305]FY2007. [Section 3005]
anizations (PVOs), foreign non-include policies and guidelines.
overnment organizations, and[Section 307]
griculture producer groups, is authorized
h FY2002. [Section 205 of P.L.
.L.480 Assistance Levels anda. Increases the minimum level ofa. Increases the minimum levela. Increases the minimum level
undingcommodities to 2.25MMT per yearof commodities to 2.1 MMT inof commodities to 2.5MMT
Title II assistance is 2.025through FY2011. [Section 307]FY2002, 2.2MMT in FY2003, 2.3annually beginning in FY2002.
tric tons (MMT) of agriculturalMMT in FY2004, 2.4 MMT inChanges the sub-minimum
ear through FY2002;FY2005, and 2.5 MMT inrequirement for non-emergency
D Administrator has some authority toFY2006. [Section 304]programs to 1.875 MMT

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
ive minimum. Subminimumannually. [Section 3004]
ency programs
[Section 204 of P.L. 480]
imits CCC Title II costs to $1 billionb. Removes limit on CCC Title IIb. Doubles limit on CCC Title II
early; some Presidential waivercosts. [Section 307]costs to $2 billion per year.b. Removes limit on CCC Title
. [Section 206 of P.L. 480] [Section 306]II costs. [Section 3006]
$10 million butc. Replaces dollar designations byc. Replaces dollar designations
than $28 million of Title IIsetting support for eligibleby setting support for eligiblec. Replaces dollar designations
g per year shall be use to supportorganizations at not less than 5% andorganizations at not less than 5%by setting support for eligible
ligible organizations (PVOs,not more then 10% of Title IIand not more than 10% of Title IIorganizations at not less than
ⁱ^{ki/CRS-RL31704}anizations like thefunding. [Section 307]funding. [Section 302]5% and not more than 10% of
^g/world Food Program, etc.) in conductingTitle II funding. [Section 3002]
^s^.or
^le^ak II activities. [Section 202 of P.L.
^://wiki
^h^ttp. P.L. 480 Operation &
ministrationa. Authorizes the use of U.S. dollarsa. Similar to House [Sectionsa. Monetization language
. Permits PVOs to sell Title IIand other currencies for303, 310, & 325]. Also, a foodsimilar to House and Senate.
t country (ormonetization in P.L. 480 — and alsoaid commodity sale is to be “at aAdopts Senate’s “reasonable
country) to finance commodityFood for Progress and Section 416reasonable market price in themarket price” language.
ansportation, storage, etc., and localprograms; permits PVOs to submiteconomy” where the commodityContains language encouraging
s (“monetization”).multi-country proposals; and permitsis to be sold. [Section 310]multi-country proposals, from
food aid monetization in more thanall eligible organizations, not
one country in the region. [Sectionsjust PVOs. [Sections 3003;

302; 303; 307]3009; 3106]

D Administrator has 45 days tob. Increases the time for decisionsb. Increases, to 120 days, timeb. Increases, to 120 days, time
I proposals submitted byfrom 45 to 120 days. [Section 307]the Administrator has to decidethe Administrator has to decide
ible organizations or U.S. fieldon Title II proposals. Containson Title II proposals; clarifies
[Section 207 of P.L. 480]other timelines for finalizingthat the period begins after

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
program agreements andsubmission of the proposal to
announcing programs each year.AID Administrator, who is
Permits USDA to approve anencouraged to make decisions
agreement that provides for directon proposals within that period.
delivery of commodities toDeletes Senate provision on
foreign milling or processingdirect delivery of commodities.
facilities that are more than 50%[Section 3007]
U.S.-owned, with cash proceeds
transferred to eligible
organizations for carrying out
projects. [Section 307]
ⁱ^{ki/CRS-RL31704}. Authorizes $2 million in each ofc. Extends authorization throughc. Extends authorization throughc. Extends authorization
^g/wY2001 and FY2002 to “preposition”FY2011. [Section 307]FY2006. [Section 311]through FY2007. [Section
^s^.or
^le^akid commodities in the U.S. and3010]
n countries. [Section 407 of P.L.
^://wiki
^h^ttp
Authorizes appropriations of up to $3d. Extends authorization throughd. Extends authorization throughd. Extends authorization
through FY2002 forFY2011. [Section 307]FY2006. [Section 308]through FY2007. [Section
rants to PVOs and U.S. non-profits for3008]
kpiling shelf-stable, pre-packaged
[Section 208 of P.L. 480]
equires USDA (if feasible) toe. No provision.e. Extends the authorization as ane. Adopts the Senate provision
ablish a “micronutrient fortification”ongoing program throughthrough FY2007 with technical
ram; authority expires inFY2006. [Section 313]corrections, and includes
Y2002. [Section 415 of P.L. 480]language aimed at improving
and insuring quality of fortified
food aid commodities. [Section

3013]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
. Lamb to Afghanistan . No provision.f. No provision.f. Permits President to establish,f. As part of required report to
under Title II, a “pilot emergencyCongress within 120 days on
relief program to provide liveuse of perishable commodities,
lamb to Afghanistan.” [SectionSecretary of Agriculture must
309.]report on feasibility of
transporting lambs and other
live animals in food aid
programs. [Section 3207]
rtified Institutional Partners
No provision.Requires AID or USDA, asFor Title II Food for Peace,
es generally mustapplicable, to establish a processAID Administrator must
ⁱ^{ki/CRS-RL31704}o the same application proceduresenabling PVOs and cooperativesestablish, within 1 year,
^g/wous food aidthat can demonstrate theirstreamlined guidelines and
^s^.orrams each time they apply.capacity to carry out the programsapplication procedures and, by
^le^ak(under P.L. 480; Section 416; orFY2004, incorporate, to the
^://wikiFood for Progress) to qualify asmaximum extent practicable,
^h^ttp“certified institutional partners,”the changes. Requires
which would entitle them to useconsultation with stakeholders
streamlined applicationand Congress, and a report to
procedures, including expeditedCongress within 270 days on
review and approval to receiveimprovements. [Section 3002].
commodities for use in more than For Food for Progress and
one country. [Sections 302; 325;Section 416, requires,
334]respectively, the President and
Secretary of Agriculture, within
270 days, to review and make
any needed changes in rules and
procedures aimed at
streamlining application
procedures, including
consideration of pre-screening

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
organizations and proposals;
requires consultations with
Congress. [Section 3106;
Section 3201].
armer-to-Farmer Program
t no less than 0.4% of P.L.Extends funding authority at currentExtends funding authorityExtends funding authority
provide U.S.0.4% through FY2011. [Sectionthrough FY2006, and increasesthrough FY2007, and increases
ricultural experts307]minimum funding to 0.5% of P.L.minimum funding to 0.5% of
chnical assistance in developing, middle480 funds. [Section 314]P.L. 480 funds. Farmers for
ing market countries.Africa and Caribbean Basin
Title V of P.L. 480 as amended byProgram is incorporated into
ⁱ^{ki/CRS-RL31704}IR Act ofthis title (see No. 10, below, for
^g/wdetails). [Section 3014]
^s^.or[Note: renames program “John
^le^akOgonowski Farmer-to-Farmer
^://wiki Program.”]
^h^ttp rplus
ations
ermanent law authorizes the use ofMaintains current law, and requiresMaintains current law, andAdopts House language
owned surplus commodities forUSDA to publish in the Federalpermits USDA to approve anregarding October 31 and
[Section 416(b) ofRegister, by each October 31, anagreement that provides for directDecember 31 deadlines. Omits
of 1949 as amended]estimate of Section 416 commoditiesdelivery of commodities toSenate provision on direct
to be made available for the fiscalforeign milling or processingdelivery of commodities.
year. Also encourages Section 416facilities that are more than 50%[Section 3201]
program agreements to be finalizedU.S.-owned, with cash proceeds
by December 31. [Section 303] transferred to eligible
organizations for carrying out
projects. [Section 334]
erson Humanitarian Trust
uthorizes, through FY2002, a trustExtends the Trust through FY2011.Extends the Trust throughExtends the Trust through

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
ling not more than 4MMT of wheat,[Section 309]FY2006. [Section 331]FY2007. [Section 3202]
hum, or any combination
ely to meet emergency
food needs. [Bill Emerson
umanitarian Trust Act of 1998, which
the Agricultural Act
as amended (Food Security
]
. Food for Progress (FFP)
to supporta. Reauthorizes FFP througha. Reauthorizes FFP under a newa. Reauthorizes FFP through
ⁱ^{ki/CRS-RL31704}to expandFY2011. [Section 302] Title VIII of the 1978FY2007 under existing law (i.e.,
^g/wgriculturalAgricultural Trade Act callednot a new Title VII).
^s^.orconomies; commodities may be“Food for Progress and EducationEncourages President to finalize
^le^akovided under Title I of P.L. 480 orPrograms,” authorized throughagreements before beginning of
^://wiki416(b) authorities, or using CCCFY2006. Permits USDA torelevant fiscal year. Requires
^h^ttp expires December 31,provide agricultural commoditieshim to submit to Congress by
[Section 1110 of the Food Securityto support introduction oreach December 1 a list of
expansion of free trade enterprisesprograms, countries, eligible
in recipient country economies,commodities, and transportation
and to provide food or nutritionand administrative costs for the
assistance. [Section 325]year. Defines eligible
commodities. Incorporates a
definition section into the
statute; establishes program
purposes and quality assurance
requirements; and requires
President to ensure that eligible
organizations are optimizing
use of donated commodities.
[Section 3106]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
limits on CCC funds forb. Increases annual limits onb. Permits up to $55 million perb. Increases annual limits on
dministrative costs and for commodityadministrative costs to $15 million,year to be used for transportation,administrative costs to $15
and on transportation costs to $40administrative, processing, andmillion, and on transportation
. million. [Section 302]related costs. [Section 325]costs to $40 million. [Section

3106]

assistancec. Increases annual limit onc. Sets an annual minimumc. Annual minimum tonnage
commodities to 1 million MT. Also,tonnage requirement for FFP ofrequirement: “not less than
excludes from the tonnage limit400,000MT through FY2006,400,00MT may be provided”
those commodities furnished on ausing the CCC. In addition,through CCC. Excludes, from
grant basis or on credit terms underauthorizes the appropriation ofthe current annual tonnage
Title I. [Section 302]such sums as may be necessary tolimits, those commodities
ⁱ^{ki/CRS-RL31704}carry out FFP, plus permits thefurnished on a grant basis or on
^g/wuse of P.L. 480 Title I funds. Allcredit terms under P.L. 480
^s^.or
^le^akcommodities and related expensesTitle I. [Section 3106]
must be in addition to any other
^://wikiP.L. 480 assistance. [Section
^h^ttp 325]
ood for Education
and child nutritionAuthorizes George McGovern-Requires establishment of anPermits President to establish
e been operated withinRobert Dole International Food forInternational Food for Educationthe McGovern-Dole
O and United Nations WorldEducation and Child Nutritionand Nutrition Program wherebyInternational Food for
ood Program (WFP) food aid portfolios.Program whereby the President isthe Secretary of Agriculture mayEducation and Child Nutrition
linton Administration initiated a pilotpermitted to direct the provision ofprovide commodities andProgram, with mandatory
lobal food for education initiativeU.S. agricultural commodities andtechnical and nutrition assistancefunding from CCC of $100
hereby USDA has committed to providefinancial and technical assistance forfor programs that improve foodmillion in FY2003 to continue
foreign preschool and school feedingsecurity and enhance educationalexisting pilot projects; and
thority) for commodities andprograms to reduce hunger andopportunities for preschool andsubject to appropriations in
tation costs for school and pre-improve literacy (particularly amongprimary school children inFY2004-2007. Eligible costs
ects and relatedgirls), and nutrition programs forrecipient countries. CCCinclude commodity acquisition,
ivities in developing countries.pregnant and nursing women andauthority and funds of not moreprocessing, transportation,

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
onducted through theyoung children. Authorizes thethan $150 million shall be used inhandling (including specified
P, PVOs, and eligible foreignappropriation of such sums as mayeach of FY2002-2005. Eligiblein-country costs if President
overnments using USDA discretionarybe necessary each year throughorganizations include PVOs,makes certain determinations).
uthorities. [General authority underFY2011. Gives President authoritycooperatives, nongovernmentalEligible organizations:
to designate the federal agency toorganizations, and foreigncooperatives, PVO’s,
administer program; defines eligiblecountries, which are subject to aintergovernmental
recipients to include PVOs,“graduation requirement” toorganizations, governments of
cooperatives, intergovernmentalprovide for continuation ofdeveloping countries and their
organizations, governments and theirprogram after end of funding.agencies, and other
agencies, and other organizations.[Section 325]organizations. Includes Senate
[Section 312]graduation requirement;
program funding priorities and
ⁱ^{ki/CRS-RL31704}application guidelines;
^g/wassurances that recipient
^s^.or
^le^akcountry production and
marketing are not disrupted.
^://wiki[Section 3107]
^h^ttp
armers for Africa & Caribbean
Creates a Farmers for Africa andNo provision.House provision is incorporated
Caribbean Basin Program offeringinto the John Ogonowski
grants to eligible organizations toFarmer-to-Farmer Program,
conduct bilateral exchange programswith authorization for
utilizing African-American and otherappropriations of up to $10
U.S. farmers and agriculturalmillion annually through
specialists. Authorizes $10 million inFY2007. Up to 5% of
annual appropriations annuallyappropriation can be used for
through FY2011. [Section 311]administrative expenses.
[Section 3014]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
and Foreign Assistance
No provision.Sense of Senate that U.S. foreignSense of Congress that U.S.
aid should play increased role inforeign aid should play
addressing conditions breedingincreased role in addressing
global terrorism. [Section 338]conditions breeding global
terrorism. [Section 3209]
rovisions
rade Agreement Compliance
1994 Uruguay RoundIf the Secretary of AgricultureSame as House bill, but withIf Secretary determines that
reement on Agriculture (URAA) thedetermines that total spending foradditional language requiringexpenditures will exceed
ⁱ^{ki/CRS-RL31704}d States agreed to limit the value ofsuch commodity support will exceedannual notifications to CongressURAA allowable levels for any
^g/wde-distorting U.S. domestic farmthe limits in the URAA, theon current and followingapplicable reporting period,
^s^.or billion per year.Secretary may make adjustments inmarketing year estimates ofSecretary shall, to the maximum
^le^akthe programs to reduce spending tosupport to be reported to theextent practicable, make
^://wiki(but not below) such limits. [Section181] World Trade Organization, andeffectively requiring Congress toadjustments in suchexpenditures to ensure that they
^h^ttpconsider amending (within 18do not exceed allowable levels.
months) any programs that mightPrior to doing so, Congress
cause the URAA limits to bemust be notified of the
breached. [Section 164]adjustment types and levels.
[Title I, Section 1601]
Technical Assistance for Barriers to
ade
ous trade agreements disciplineRequires USDA to establish aA section within theRequires USDA to establish,
ountries’ use of sanitary and“Technical Assistance for SpecialityBiotechnology and Agriculturaloutside of the Biotechnology
tosanitary (SPS) and other technicalCrops” program, providing directTrade Program (see below)and Agricultural Trade Program
used by countries toassistance through public and privatedirects USDA to assist U.S.(see below), a “Technical
ect their consumers, agricultural andprojects and technical assistance, toexporters harmed byAssistance for Specialty Crops”
ural resources. USDA agencies, thehelp overcome the “unique barriers”“unwarranted and arbitrary”program providing direct
. Trade Representative, and other — such as SPS and related barriersbarriers to trade due to marketingassistance through public and

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
agencies have established — inhibiting exports of U.S.of biotechnology products, foodprivate projects and technical
echanisms for identifying such barriersspecialty crops (e.g., fruits,safety, disease, or other SPSassistance to remove, resolve, or
to resolve disputes overvegetables). Requires use of $3concerns; authorizesmitigate SPS and related
m. [various laws]million annually in CCC fundsappropriations of $1 millionbarriers to exports of U.S.
through FY2011. [Section 310]annually through FY2006.specialty crops. Requires use of
[Section 333]$2 million annually in CCC
resources through FY2007.
[Section 3205]
hnology and Agricultural
rogram
No provision.Requires USDA to establish aEstablishes a Biotechnology
ⁱ^{ki/CRS-RL31704}Biotechnology and Agriculturaland Agricultural Trade
^g/wTrade Program to address theProgram, using technical
^s^.ormarket access, regulatory, andassistance and public and
^le^akmarketing issues related toprivate sector project grants, to
^://wikiexports of U.S. agriculturalremove, resolve, or mitigate
^h^ttpbiotechnology products. Requiressignificant regulatory nontariff
CCC to make available $15barriers to U.S. exports
million for the program annuallyinvolving: agricultural
through FY2006. [Section 333]commodities produced through
biotechnology; food safety;
disease; or other SPS concerns.
Authorizes appropriations of $6
million annually through
FY2007. [Section 3204]
No provision.Sense of Congress provision alsoSenate provision, changed to be
now in multilateral negotiations tocontains an explicit description ofa Sense of Senate rather than
the terms of agriculturalagricultural trade negotiatingSense of Congress. [Section
the 1994 Uruguayobjectives. [Section 336]3210]

reement on Agriculture.

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
resent trade law contains a list of
xplicit U.S. objectives and consultation
riculture that U.S.
otiators are supposed to follow.
rade and Development Act of 2000]
xporter Assistance InitiativeNo provision.Authorizes appropriations ($1Requires Secretary to maintain
ous federal agencies routinelymillion for each of FY2002-2004a website with information to
market intelligence, trade data,and $500,000 for each ofassist U.S. agricultural
d at helpingFY2005-2006) for an “Exporterexporters. No appropriations
. agricultural exporters find,Assistance Initiative” to create anauthorized. [Section 3101]
Internet website providing a[Note: extensive conference
ⁱ^{ki/CRS-RL31704}arkets. For example, both USDA’ssingle source of information fromreport language directs
^g/wic Research Service and Foreignall federal agencies to help U.S.Secretary to improve FAS web-
^s^.orricultural Service maintain written andagricultural exporters. [Sectionbased information.]
^le^ak and data series326]
^://wiki much of this information
^h^ttp]
No provision.Lifts restrictions on privateNo provision.

Y2001 agriculture appropriations lawfinancing of agricultural sales to
odified the lifting of unilateral sanctionsCuba [Section 335]
food, agricultural
s, medicine, and medical
ran, Libya, North Korea, and
tended this policy to apply
but in a more restrictive way by
all financing of such sales,
th private credit sources. [Section
lture, Rural Development,
Drug Administration and
]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
ew Studies and Reportsa. Requires USDA to study anda. No provision.a. Requires study in House bill,
USDA’s Foreignreport to Congress within 1 year onbut only of fees for services
ricultural Service are generallythe feasibility of a program chargingbeyond those already provided
payer-funded.fees to pay for providing commercialby FAS as part of an overall
services abroad on matters undermarket development strategy
USDA’s Foreign Agriculturalfor a particular country or
Service. [Section 313] region. [Section 3208]
Secretary of Agriculture is required tob. Requires USDA to report tob. No provision.b. Requires USDA to consult
velop a long-term agricultural tradeCongress within 1 year on nationalwith relevant congressional
gy every 3 years. Subsequent farmexport strategy. [Section 314]committees on Global Market
ve provided more explicitStrategy within 180 days of
ⁱ^{ki/CRS-RL31704}uidance on trade strategy goals andenactment and every 2 years
^g/w[Agricultural Trade Act ofafter that. [Section 3206]
^s^.or
^le^akure, Conservation,
ct of 1990; FAIR Act of
^://wiki
^h^ttp
c. Requires USDA annual report toc. No provision.c. No provision.
Congress on U.S. beef and pork
imports each calendar year. [Section

946]

d. No provision.d. Requires USDA to report tod. Requires USDA to report to
Congress within 120 days onCongress within 120 days on
transportation, infrastructure, andimplications of storage and
funding deficiencies that havetransportation capacity and
limited the use of perishablefunding for use of perishable
commodities in food aidand semiperishable
programs. [Section 337]commodities in food aid
programs. [Section 3207]

RICULTURAL TRADEHOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2006
y of Origin Labeling;
radinga. Requires retailers other thana. Requires retailers other thana. Requires retailers other than
many foodrestaurants and other food servicerestaurants and other food servicerestaurants and other food
ems, must bear labels informing theestablishments to inform consumersestablishments to informservice establishments to inform
purchaser of their country of origin.of the country of origin ofconsumers of the country ofconsumers of the country of
“perishable agriculturalorigin of ground and muscle cutsorigin of ground and muscle
fresh fruits, vegetables, nuts,commodities” (fresh or fresh frozenof beef, lamb and pork, of wildcuts of beef, lamb, and pork, of
ve and dead animals (e.g., meats), andfruits and vegetables) through labels,and farm-raised fish, offarm-raised and wild fish, of
ish, among others, generally aremarks, or other in-store information;perishable agriculturalperishable agricultural
empted. [Section 304 of the Tariff Actspecifies the daily fines forcommodities, and of peanuts,commodities, and of peanuts,
nded; Federal Meatviolations. [Title IX, Section 944]through labels, marks, or other in-through labels, marks, or other
ry Productsstore information. Defines whatin-store information. Defines
ⁱ^{ki/CRS-RL31704}is meant by country of origin forwhat is meant by country of
^g/weach of these categories;origin for each category (e.g.,
^s^.or
^le^akauthorizes the Secretary to set upmeats must be from animals
a record-keeping system;born, raised and slaughtered in
^://wikiauthorizes but does not specifythe United States); includes
^h^ttpfines for violations. [Title X,language on implementation
Section 1001]and enforcement. Program is
voluntary beginning September
30, 2002, and mandatory
beginning September 30, 2004.
[Title X, Section 10816]
es fee-based service tob. No provision.b. Prohibits imported carcasses,b. No provision.

to grade both domestic andmeats, or meat food products
products based onfrom bearing a USDA quality
ir quality, and affixes grades to thegrade label. [Title X, Section
[Agricultural Marketing Act of1002]

IV. NUTRITION PROGRAMS
ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ood Stamp Program, FoodTitle IV of the Farm Security ActTitle IV of the AgricultureTitle IV of the Farm Security
mp Act (FSA)of 2001Conservation and Ruraland Rural Investment Act of
Enhancement Act of 20012002
hild Support
ments are deductedNo provisions.Allows states to exclude child supportAdopts Senate provision
ing household’s income inpayments from income (beforeallowing states to exclude or
termining its benefits and eligibilitycalculating any deductions) ordeduct child support payments.
ⁱ^{ki/CRS-RL31704}after all income has been counted.continue to deduct them.
^g/wecretary may prescribe the
^s^.orused to determine theLifts some administrative andAdopts Senate provision
^le^akreporting requirements on programrequiring the Secretary to
^://wikie)(4) of the FSA)]operators and recipients by (1)establish simplified procedures
^h^ttprequiring the Secretary to establishthat allow states to use
simplified procedures for determininginformation from state child
the amount of child support paymentssupport enforcement agencies.
that allow states to use informationNo provision as to freezing the
from state child support enforcementamount of any child support
agencies and (2) permitting states toexclusion/ deduction.
freeze the amount of any child support[Section 4101]
exclusion/deduction until a
household’s eligibility is redetermined.
[Section 411]
inition of Income
r determining eligibility andAllows states to conform food stampSame as the House bill, with minorAdopts Senate provision adding
income excludes:income exclusions with those ofand technical differences.new income exclusions.
ncome, most educationother major assistance programs and[Section 412][Section 4102]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
sistance, loans, most re-lift some administrative and
penses, moneyreporting requirements on program
operators and applicants/recipients
curring lump-sum payments, the costby adding new income exclusions:
self-employment income,(1) education assistance and “state
l energy assistance benefits,complementary assistance program
ments related to supportingpayments” excluded under
income excluded byMedicaid; and
(2) any other types of income a state
d) of the FSA]does not consider when judging
eligibility for cash assistance under
its Temporary Assistance for Needy
ⁱ^{ki/CRS-RL31704}Families (TANF) program or
^g/wMedicaid. [Section 401]
^s^.or
^le^akandard Deductions
^://wikihen determining food stampEstablishes fixed multiple standardEstablishes multiple standardEstablishes multiple standard
^h^ttpeligibility, all householdsdeductions equal to 9.7% of thedeductions equal to an increasingdeductions equal to 8.31% of the
ed a “standard deduction”federal poverty income guidelinepercentage of the inflation-indexedinflation-indexed poverty
It is $134 aamounts used for food stamp incomepoverty guideline amounts. For FYsguideline amounts. Requires
uous states andeligibility determinations in FY2002.2002-2004, the new standardthat the new standard deductions
ict of Columbia, $229 forThe new standard deductions woulddeductions would equal 8% of eachnot be less than the current
not increase over time. Requires thatyear’s poverty guideline amounts.amount for each jurisdiction or
$118 for the Virgin Islands.the new standard deductions not beThis percentage would rise, in stages,greater than 8.31% of the
e)(1) of the FSA]less than the current amount for eachto 10% for FY2011 and followingpoverty amount for 6-person
jurisdiction or greater than 9.7% ofyears. Requires that the new standardhouseholds. [Section 4103]
the FY2002 poverty guidelinedeductions not be less than the current
ote: Standard (and other) deductionsamount for 6-person households.amount for each jurisdiction or greater[Note: The conference agreement
rease benefits by reducing the[Section 402]than the applicable percentage (seeeffectively takes the House
ed whenabove) of the poverty amount for 6-proposal for a fixed percentage
culating them. They also may[Note: Poverty guideline amountsperson households. [Section 171(c)]of the poverty amounts and the
fect eligibility because “net”vary by household size and are[Note: The House bill would initiallySenate proposal to allow for

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ctions) isinflation-indexed annually. In bothprovide higher deduction levels. Butinflation indexing.]
ctor in some income eligibilitythe House and Senate measures, thethe Senate measure would, over time,
new standard deductions would varyresult in somewhat higher deductions
by household size and would bebecause it is keyed to each year’s
somewhat higher than current law.]inflation-indexed poverty guideline
amount (not fixed at the FY2002
level).]
Households are entitled to ana. No provision.a. Increases the cap on the amount thata. No provision affecting the cap
cess shelter expense deduction” formay be claimed as an excess shelteron excess shelter expense
ⁱ^{ki/CRS-RL31704}penses (ifexpense deduction. For FY2003, thedeductions.

^g/wy are very high in relation to theircap would rise to $390 a month for the
^s^.orome). As with the standard48 states and the District of Columbia
^le^akuction(with commensurate increases for
^://wikicounted incomeAlaska, Hawaii, Guam, and the Virgin
^h^ttp increasing benefits) and canIslands). For FY2004-FY2009, each
ct eligibility determinations.amount would be annually adjusted for
inflation. Effective with FY2010, all
that may be claimed as ancaps would be eliminated. [Section
cess shelter expense deduction is169(c)]
derly/disabled member. The cap is
ed for inflation, and, for FY2002,
is $354 a month for the 48
uous states and the District of
Alaska, $477 for
and $279 for
Virgin Islands. [Section 5(e)(7) of

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
y regulation, only paymentsb. No provision.b. Mandates that any required paymentb. No provision as to payments
ctly related to shelter may beto a landlord be treated as a shelterto landlords.
the excesscost — without regard to the specific
pense deduction.charge it covers. [Section 414]
develop (and mustc. Permits homeless households notc. Adopts Senate provision as to
notc. No provision.receiving free shelter throughout thehomeless households.
ceed $143 a month — thatmonth to claim a standard deduction[Section 4105]
ds not in freefrom income ($143 a month) — in lieu
throughout the month can useof a shelter expense deduction.
a deduction) when their income isRepeals the current shelter
poses.“allowance.” [Section 414]
ⁱ^{ki/CRS-RL31704}e)(5) of the FSA]
^g/w
^s^.or
^le^ak “Standard utility allowances”d. Allows states choosing to maked. Adopts Senate provision as to
UAs) are used to figure shelter costsd. No provision.SUAs mandatory to do so for allSUAs.
^://wikie excess shelter expensehouseholds incurring heating or[Section 4104]
^h^ttp States may make their usecooling expenses — without regard to
for all households. SUAsthe current metered public housing and
not be used for households thatexpense pro-rating rules. [Section 415]
in certain centrally metered
or (2) share expenses
ss expenses are pro-
Section 5(e)(7) of the FSA]
e
regulation, whenever income isNo provision.Eases some administrative andNo provision.

ved on a weekly or bi-weeklyreporting requirements on program
rt it to aoperators and recipients by allowing
amount — by multiplyingstates more leeway in how they
income by 4.3 and bi-weeklyconvert weekly/bi-weekly income to
2.15 or using the state’smonthly amounts — as long as they

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
standard.make adjustments to ensure cost-
neutrality. [Section 416]
ablishing Deductions
regulation, states must adjustNo provision.Lifts significant administrative andAdopts Senate provision
changesreporting requirements on programallowing states to disregard
circumstances/ expenses that affectoperators and recipients by allowingmany changes in household
of deductions (and therebystates to disregard many changes incircumstances/expenses.
ts) they may receive.household circumstances/expenses that[Section 4106]
affect the amount of deductions they
may claim — until the household’s
ⁱ^{ki/CRS-RL31704}next eligibility redetermination.
^g/w[Section 417]
^s^.or
^le^ak
^://wikirces (Assets)ible households are limited toNo provision.Adds households with disabledAdopts Senate provision as to
^h^ttpose with total counted liquidmembers to those covered by thehouseholds with disabled
of $2,000 (or $3,000$3,000 asset limit. [Section 171(c)]members. [Section 4107]
households with elderly members).
esources that are excluded includeAllows states to conform food stampAdopts Senate provision
resource (asset) rules with those ofpermitting states to exclude
ings/ furnishings, lifeother major assistance programs andresources they do not consider
surance, income-producing property,lift some administrative requirementsunder their TANF or Medicaid
e retirement accounts, and (to aon program operators and recipients byprograms. [Section 4107]

ing degree) the value of vehicles.permitting states to exclude any types
g) of the FSA]of resources they do not consider when
judging eligibility under their TANF
or Medicaid programs — with
exceptions set by the Secretary.
[Section 418]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
s in Disasters.
ency food stamp benefits areNo provision.Allows the Secretary to issue disasterAdopts Senate provision as to
ed in the case of disasters.assistance in the form of cash whendisaster assistance.
nefits can be issued through couponother issuance systems are[Section 4108]
nts or electronic benefitimpracticable. [Section 419]
T) systems.[Section 5(h)
ents for
holds.
ith some exceptions, most recipientNo provision.Lifts some administrative andAdopts Senate provision
ⁱ^{ki/CRS-RL31704}ds must report significantreporting requirements on programallowing states to require
^g/wes in their circumstances as theyoperators and recipients by allowingreporting as infrequently as
^s^.ors may reportstates to require households to reportevery 6 months.
^le^ak 6 months, and certain othersmost changes in their circumstances as[Section 4109]
^://wiki report quarterly. [Regulations &infrequently as every 6 months — in
^h^ttpaivers under Section 5(c) of thelieu of other reporting requirements.
[Section. 420]
ependents (ABAWDs)
AWDs are ineligible if, during theNo provision. Eases work requirements forNo provision.

ng 36 months, they receivedABAWDs by: changing the “3-
3 months without (1)months-out-of-36-months” rule to
20+ hours a week, (2)make ABAWDs ineligible if, during
rticipating in a work program 20+the preceding 24 months they received
participating in abenefits for 6 months while not
ram.meeting 1 of the 3 work-related
AWDs denied eligibility under thisrequirements, and by changing the rule
-months-out-of-36-months” rule canfor regaining eligibility to provide

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ain it if they meet 1 of 3 work-eligibility whenever ABAWDs meet 1
of the 3 work-related requirements.
ing “work programs” do notChanges the definition of “work
arch or job searchprogram” to include job search or job
. [Section. 6(o) of the FSA]search training. [Section. 421]
rough Electronic
nefit Transfer (EBT) Systems
regulation, states may take benefitsNo provision.Requires that benefits providedNo provision.
h EBT systems “off-through EBT systems not be made
” after 3 months of inactivity in theinaccessible until at least 6 months
T account.have elapsed since the recipient last
ⁱ^{ki/CRS-RL31704}accessed the EBT benefit account.
^g/w[Section 422]
^s^.or
^le^ak EBT Systems
^://wikiT systems must notceed those of the prior issuanceNo provision.Deletes the current EBT “cost-neutrality” requirement. Adopts Senate provision deletingcost-neutrality requirement.
^h^ttpstem. [Section 7(i)(2)(A) of the FSA][Section 423][Section 4110]
roup Living Facilities
here recipients live in substancea. No provision.a. In the case of recipients living ina. Allows the Secretary to
reatment centers, states maysubstance abuse treatment centers,authorize nationwide
re them to designate the center assmall group homes for the disabled, orimplementation of new methods
eir authorized representative andshelters for battered women/childrenof calculating and issuing
or the homeless, permits states to usestandardized benefits for
e) of the FSA]new methods of calculating andrecipients in substance abuse
issuing standardized benefits. [Sectioncenters, group homes for the
424]disabled, or shelters — at the
conclusion of pilot projects to
test the feasibility of these new
methods. [Section 4112]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ithout a waiver, group livingb. Allows the Secretary to authorizeb. Adopts Senate provision
not redeem food stampb. No provision.group living facilities to redeem foodallowing group living facilities
h direct (on-site) use ofstamp benefits through direct use ofto redeem benefits through direct
ecipients’ EBT cardsEBT cards. [Sec. 425]use of EBT cards.
t be presented and used at[Sec. 4113]
ets. [Sec. 10
ood Stamp Applications
ates have responsibility forNo provision.Requires that states make food stampAdopts Senate provision for
veloping food stampapplications available on their Internetapplications on Internet websites,
ⁱ^{ki/CRS-RL31704}[Section 11(e)(2)(B) of thewebsites. [Section 426]effective 18 months after
^g/w enact m ent .
^s^.or[Section 4114]
^le^ak
^://wikiible households are assignedNo provision.Replaces assigned certification periodsNo provision.

^h^ttpification periods” of up to 12and rules governing recertification
lderlywith new “eligibility review periods”
abled). At the end of aunder which states would periodically
rtification period, specificreview the eligibility status of recipient
owed tohouseholds following procedures set
ify” a household and continueby the state. [Section 427]
benefits.[Sections 3(c) & 11(e)[Note: These provisions would lift
significant administrative requirements
on program operators and recipients by
allowing states to conform their
method of reviewing food stamp
eligibility with the method used for
other major public assistance
programs.]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
nsitional Food Stamp
nefits
egulations permit 3 months’Lifts significant administrative andSame as the House bill, except thatPermits states to provide
reporting requirements of program(similar to current policy) transitionaltransitional food stamp benefits
g TANF.operators and recipients by explicitlybenefits would be adjusted upward forto households leaving TANF for
nsitional benefits generally arepermitting states to providethe loss of TANF cash aid or anyup to 5 months. The transitional
usted for any loss of income onexpanded transitional food stampreported changes in householdbenefit amount is the amount
TANF and reported changes inbenefits to households leavingcircumstances that would increasereceived prior to leaving TANF,
rcumstances that would increaseTANF. Food stamps couldfood stamp benefits. [Section 429]adjusted for loss of TANF
automatically be continued for 6income and (at state option) for
ⁱ^{ki/CRS-RL31704}months at the level the householdinformation received from
^g/wwas receiving immediately prior toanother program in which the
^s^.orleaving TANF. [Section 403]household participates. [Section
^le^ak 4115]
^://wiki
^h^ttpNo provision.Permits notices to be delivered toAdopts Senate provision as to
livered to retailers by certified mailretailers by any form of delivery thatnotices to retailers.
provides evidence of delivery.[Section 4117]
a)(2) of the FSA][Section 430]
System &
ayments
he Food Stamp program’s QCa. Substantially changes the QCa. Same as the House bill, except thata. Ends added federal funding for
stem measures the degree to whichsystem as it relates to fiscal sanctionsit reduces, then ends, added federalstates with error rates below 6%.
ates make erroneous benefit andby raising the threshold above whichfunding for states with error ratesRaises the threshold above which
ibility decisions. State “errorstates are sanctioned to the nationalbelow 6%, and requires the Secretarystates are held liable to 105% of
tes” reported from annual QC sampleaverage error rate, plus 1 percentageto conduct annual “investigations” ofthe national average. Requires a
s are used to (1) providepoint. Requires a statisticalstates with error rates above the newstatistical adjustment to
ncial rewards to states with veryadjustment to individual state error(higher) threshold and fine them ifindividual state error rates that

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ss fiscalrates that effectively lowers all statethey are found to be seriouslyeffectively lowers all state error
high errorerror rates. Provides that sanctionsnegligent in their administration of therates. Effectively penalizes only
tes. Each year, states with total errorwill not be assessed until a state hasFood Stamp program. [Section 431]states with persistent (over 3
es below 6% receive added federalbeen above the new (higher)years) high error rates. Makes
tching money for administration.threshold for 3 consecutive years.states liable for amounts equal to
es above theSanctions states based on how far10% of the value of erroneous
ional average are assessed fiscalthey are above a 10% error rate inbenefits above 6% , calculated
thethe 3^rd year. [Section 404]for the 2^nd consecutive year in
ional average they are.which a state exceeds the
threshold. Authorizes the
Secretary to resolve states’
liability amounts by (1)
ⁱ^{ki/CRS-RL31704}requiring them to invest up to
^g/w50% of the amount in
^s^.or
^le^akadministrative improvements, (2)
placing up to 50% of the amount
^://wiki“at risk” for collection in the
^h^ttpnext year, or (3) waiving any
amount. If a state fails to reduce^rd
its error rate for a 3 consecutive
year, the “at-risk” amount is
collected.
[Section 4118]
retary has established ab. No provisionb. Establishes in law a requirement tob. No provision.
icy whereby assessed sanctions areadjust all states’ error rates to account
ates serving highfor high proportions of error-prone
ions of households with earnershouseholds. [Section 431]
s (“error-prone”
s of QC error-ratec. No provision.c. Changes current-law deadlines toc. Adopts Senate provision

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
terminations and arbitration ofMay 31^st and June 30^th. [Section 432]changing deadlines.
t be[Section 4119]
the end of March each
y the end of April, final QC
tes must be determined and
tes notified. [Section 16(c)(8) of the
QC provisions provide additionald. Requires the Secretary to measured. Requires the Secretary to measured. Requires the Secretary to
unding (“enhancedstates’ performance with respect tostates’ performance with respect to (1)measure states’ performance
ministrative cost-sharing”) for(1) compliance with deadlines forserving working poor households withwith respect to (1) actions taken
prompt determination of eligibilitychildren and (2) 4 additional measuresto correct errors, reduce rates of
ⁱ^{ki/CRS-RL31704}and the issuance of benefits and (2)set by the Secretary in consultationerror, and improve eligibility
^g/wthe percentage of negative eligibilitywith the National Governorsdeterminations and (2) other
^s^.or
^le^akdecisions that are made correctly.Association, the American Publicindicators of effective
Each year, requires the Secretary toHuman Services Association, and theadministration determined by the
^://wikimake “excellence bonus payments”National Conference of StateSecretary. Requires the
^h^ttpof $1 million each to (1) the 5 statesLegislatures. Each year, requires theSecretary to make performance
with the highest combinedSecretary to make “high performancebonus payments totaling $48
performance in the 2 measures notedbonus payments” totaling $6 millionmillion a year to states that meet
above and (2) the 5 states whosefor each of the 5 measures notedthe Secretary’s standards for
combined performance in the 2above. Reduces, then ends funding forhigh or most improved
measures is most improved. Retainsstates with error rates below 6%.performance. Ends added
funding for states with error rates[Section 433]federal funding for states with
below 6%. [Section 404]error rates below 6%.
[Section 4120]
rants for Simple Application
d Eligibility Systems and
proved Access to Benefits
Requires the Secretary to spend up toAuthorizes grants to states and otherRequires the Secretary to spend
$9.5 million a year to pay states theentities to pay the federal share (75%)up to $5 million a year to make

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
full cost of developing andof the cost of projects to improvegrants to states and other entities
implementing simple application andaccess to food stamp benefits orcovering the full cost of projects
eligibility determination systems.outreach to eligible individuals.to (1) improve program access
[Section 405]Authorizes appropriations totaling $3for eligible households or (2)
million.develop and implement simple
[Section 438]food stamp application and
eligibility determination systems.
[Section 4116]
ployment and Training
&T) Programs
gh FY2002, food stamp lawa. Extends the requirement fora. Extends the requirement fora. Extends the requirement for
ⁱ^{ki/CRS-RL31704}quires unmatched federal funding forunmatched federal funding for E&Tunmatched federal funding for E&Tunmatched federal E&T funding
^g/wT programs for food stampprograms through FY2011. Sets theprograms through FY2006. Sets theat $90 million a year through
^s^.orpients. For each year, specificamount at the current FY2002 levelamount at $90 million a year, availableFY2007. Rescinds the unspent
^le^akg., a total of(a total of $165 million a year).until expended. Rescinds the unspentcarryover balance.
^://wiki FY2002).[Section 406(a)]carryover balance.[Section 4121]
^h^ttptched money is available until
pended (about $300 million is now
tates must use at least 80% of theirb. No provision.b. In addition to the $90 million notedb. Adopts Senate provisions (1)
tion of unmatched federalabove, provides up to $25 million afor funding of ABAWD services
AWDs. year for services to ABAWDs.(but limits it to $20 million a
Eliminates the current-law “80%”year) and (2) eliminating the
requirement for services to ABAWDs.“80%” requirement. [Section

4121]

To receive a portion of their federalc. No provision.c. Eliminates the current-lawc. Adopts Senate provision
(e.g., $75 million in“maintenance of effort” requirement.eliminating the “maintenance of

2002), states must maintain theireffort” requirement.

T spending at the FY1996 level.[Section 4121]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ecretary may set specificd. No provision.d. Ends the Secretary’s authority to setd. Adopts Senate provision
per-placement funding amounts.ending authority to set per-
for each E&Tplacement funding amounts.
ram placement.[Section 4121]
ederal matching funds are providede. No provision.e. Eliminates current-law limits one. Adopts Senate provision
T participantfederal funding for participant supporteliminating limits on funding for
., transportation) —costs.participant support costs.
sts up to half of $25[Section 4121]
d) & 16(h) of the FSA][Section 406(a)][Sections 169(c) & 434][Section 4121]
ⁱ^{ki/CRS-RL31704}
^g/w
^s^.or
^le^akood Stamp Informational
^://wiki
^h^ttp be barred from usingNo provision.Makes explicit states’ ability to useNo provision. [Note: A federal
funds to conduct food stampTANF funds for food stampguidance is to be issued to notify
tional (“outreach”) activities.informational (“outreach”) activities.states of their ability to use
k) of the FSA][Section 436]TANF funds for food stamp
informational activities.]
ilot Project Waivers
ecretary may grant waivers fromNo provision.Makes clear that the Secretary mayAdopts Senate provision on
d Stamp Act rules when carryinggrant waivers from federal food stampgranting of waivers.
is authority isrules in all pilot projects, regardless of[Section 4123]

lear for pilot projects implementedthe entity that implements them.
non-federal entities. [Section 17 of[Section 437]

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
piring at the end of FY2002 are:Extends expiring authorities throughExtends expiring authorities throughExtends expiring authorities
ations forFY2011.FY2006.through FY2007 — except for
ood Stamp program and the Food[Section 406][Section 435]the authority for outreach pilot
istribution Program on Indianprojects (see Item #20 above for
similar authority). [Section
uthority to reduce administrative4122]
st payments to states by $197
year;
uthority for a limited number of
granting cash food stamp
nefits; and
ⁱ^{ki/CRS-RL31704}hority for outreach pilot
^g/w
^s^.or
^le^aka), 16(k), 17(b), & 17(i) of
^://wiki
^h^ttp
uerto Rico and American
oa
n lieu of regular food stampa. Extends Puerto Rico’s block granta. Consolidates nutrition assistancea. Consolidates nutrition
ram, Puerto Rico receives anthrough FY2011, retaining annualgrant funding for Puerto Rico andassistance grant funding for
ition block grant,inflation indexing. Also permitsAmerican Samoa. Mandates thePuerto Rico and American
ed through FY2002. It coversPuerto Rico to use up to $6 millionconsolidated grant through FY2006.Samoa. Mandates the
l benefits costs and 50% of anyof its FY2002 grant to pay costs ofThe base consolidated grant is $1.356consolidated grant through
upgrading electronic systemsbillion (FY2002). It is then adjustedFY2007. The base consolidated
ed for food price inflation.without matching the amount.for food-price inflation beginning withgrant is $1.401 billion (FY2003).
Y2002 grant amount is[Section 406(f)]FY2003. Puerto Rico’s annual share isIt is then adjusted for food-price
[Section 19 of FSA]99.6%. Like House bill, permitsinflation beginning with
Puerto Rico to use up to $6 million inFY2004. Puerto Rico’s annual
FY2002 for costs of upgradingshare is 99.6%. Permits Puerto
electronic systems. [Section 439]Rico to use of to $6 million of its

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
FY2002 grant (in either FY2002
or FY2003) for costs
of upgrading electronic systems.
Allows Puerto Rico to carry over
up to 2% of any year’s grant to
the following year. [Section

4124]

amoa receives annualb. Extends American Samoa’s grantb. American Samoa’s share is .4% of
all expenditures for itsthrough FY2011. Increases it toeach year’s new consolidated grant.b. American Samoa’s share is
neral nutrition assistance program.$5.75 million for FY2002 and $5.8Its current grant is repealed. [Section.4% of each year’s new
rant is authorized throughmillion for later years. [Section439]consolidated grant; may carry
ⁱ^{ki/CRS-RL31704}2002 at $5.3 million a year.406(g) & (j)]over up to 2% of any year’s
^g/wgrant to the next year. Its current
^s^.or
^le^akgrant is repealed. [Section 4124]
^://wikiVitamin and Mineral
^h^ttpmen ts
No provision.Permits the use of food stamp benefitsNo provision.
s (or, in someto purchase dietary supplements that
meals). [Section 3(g)“provide exclusively one or more
vitamins or minerals.” Requires a
report on the effects of this new
provision. [Section 445]
Children — Legal permanenta. No provision.a. Makes legal permanent residentsa. Adopts Senate provisions as
in the U.S.under age 18 eligible for food stampsto legal permanent residents
ust 22, 1996, and who areregardless of their date of entry. Alsounder age 18 — effective
age 18 are eligible for foodexempts them from requirements thatOctober 1, 2003. [Section
their sponsor’s financial resources be4401(b)]

deemed to them in determining food

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
stamp eligibility. [Section 452(a)]
Work history requirement — Legal b. No provision.
residents with a substantialb. Reduces the work historyb. No provision.
ork history (defined as 40 quarters,requirement to 16 quarters (4 years).
ears) are eligible for food[Section 452(b)]
Humanitarian cases — Asylees,c. No provision.
fugees, Cuban/ Haitian entrants,c. Removes the 7-year limit onc. No provision. [Note: The new
ertain aliens whoseeligibility for humanitarian cases.5-year residence rule described
is being withheld[Section 452(c)]below has the effect of removing
ⁱ^{ki/CRS-RL31704}r humanitarian reasons, andthe 7-year limit.]
^g/wAmerasians fathered by
^s^.or
^le^akitizens are eligible for food
7 years after entry/grant of
^://wiki
^h^ttp
Disability benefit recipients —d. No Provision
gal permanent residents who wered. Makes eligible disabled legald. Adopts Senate provision as to
in the U.S. as of August 22,permanent residents receiving federaldisabled legal permanent
nd who are receiving federaldisability benefits — without regard toresidents receiving federal
bility benefits are eligible for foodtheir date of entry. [Section 452(d)]disability benefits — effective
October 1, 2002. [Section

4401(a)]

e. No provision.
e. Makes eligible individuals whoe. Makes eligible individuals
have continuously resided in the U.S.who have resided in the U.S.
a) of the Personallegally for a period of 5 years (e.g., aslegally for a period of 5 years
sponsibility and Work Opportunitylegal permanent residents,(e.g., as legal permanent
refugees/asylees, but not as temporaryresidents, refugees/asylees, but
residents). This new 5-year residencenot as temporary residents) —

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
rule would not apply in the case ofeffective April 1, 2003. [Section
aliens who entered the country4401(c)]
illegally and remain illegally for 1 year
or more (or who have been “illegal
aliens” for 1 year or more), unless they
have continuously resided in the U.S.
for 5 years as of enactment. [Section

170(b) & (c)]

[Note: The changes made for children
in item (a) above would be effective
beginning in FY2004. The 5-year
ⁱ^{ki/CRS-RL31704}residence rule noted in item (e) above
^g/wwould be effective April 2003.]
^s^.or
^le^ak
^://wikimodity Assistance Programs
^h^ttpood Stamp Act (FSA), theTitle IV of the Farm Security Act ofTitle IV of the Agriculture,Title IV of the Farm Security and
ency Food Assistance Act, and2001.Conservation and Rural EnhancementRural Investment Act of 2002.
e Agriculture and ConsumerAct of 2001.
he Emergency Food Assistance
ogram (TEFAP)
Commodity Purchases - Froma. Extends the purchase requirementa. Extends the purchase requirementa. Extends the purchase
Foodthrough FY2011; raises the amountthrough FY2006 and raises the amountrequirement through FY2007
amp Act, the Secretary is required toto $140 million a year beginning into $110 million a year beginning inand raises the amount to $140
n a year throughFY2002 and requires the SecretaryFY2002. Same as House bill withmillion a year beginning in

2002 to purchase commodities forto use $10 million a year to pay forrespect to $10 million set aside forFY2002. [Section 4126]

[Section 27 of the FSA]costs related to processing, storing,processing, storing, transport and
transporting and distributingdistribution costs. [Section 441]
commodities. [Section 406(i) & (j)][Note: Section 166 of the Senate[Note: The $40 million in

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
amendment requires the Secretary toadditional commodities in
buy not less than $40 million a year inSection 166 of the Senate
additional commodities for TEFAPamendment is not included in the
each year through FY2006.]conference agreement.]
Administrative/distribution costs-b. In addition to $10 million set-
ear is authorizedaside noted above, extends throughb. Same as the House bill, except theb. Extends the authorization for
h FY2002 for the costs ofFY2011, the $50 millionauthorization is extended throughadministrative and distribution
ministering the program andauthorization for administrative and2006. [Section 451(d)]costs through FY2007 and raises
commodities. [Sectiondistribution costs. [Section 443]the authorized amount to $60
a) of the Emergency Foodmillion a year. [Section 4204]
ⁱ^{ki/CRS-RL31704}ommodity Supplemental Food
^g/wogram (CSFP) and commodity
^s^.or
^le^ak. Expiring at the end ofa. Extends expiring CSFP anda. Extends expiring CSFP anda. Extends expiring CSFP and
^://wiki2002 are: authority for thecommodity authorities/requirementscommodity authorities/requirementscommodity authorities/
^h^ttpy Supplemental Foodthrough FY2011. [Sections 441 &through FY2006. [Section 451]requirements through FY2007.
ogram (CSFP), requirements to442]Also requires the Secretary to
dry milk toprovide funds to permit Montana
e CSFP, requirements forand Vermont to continue to
modity processing agreements,participate in the CSFP at their
eneral authority to obtainoriginally assigned (FY2000)
mmodities to maintain traditionalcaseload levels through the
of support for variousFY2002 “caseload cycle.”
mmodity distribution activities.[Sections 4201 & 4203]
5 of the Agriculture and
ion Act of 1973;
a)(2) of the Agriculture
CSFP Administrative Costs: Theb. No provisionb. Replaces the current limit onb. Replaces the current limit on

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
ary is required to pay the CSFPadministrative payments with aadministrative payments with a
ministrative costs of state/localrequirement for “grants per caseloadrequirement for “grants per
encies — but may not use more thanslot.” Requires the Secretary tocaseload slot.” Requires the
P appropriations.provide each state a grant per assignedSecretary to provide each state a
caseload slot set — set by law at $50,grant per assigned caseload slot
iculture andindexed beginning in FY2003. — set at the FY2001 actual
[Section 451]amount, indexed for FY2003 and
following years. [Section

4201(b)]

Approved Food Safety
ⁱ^{ki/CRS-RL31704}chnology
^g/w
^s^.orNo provision.Bars the Secretary from prohibiting theAdopts Senate provision, with
^le^akuse of “any technology that has beentechnical changes. [Section
^://wikiapproved by the Secretary or the4201(b)(3) & (d)]
^h^ttpSecretary of Health and Human
Services” in acquiring commodities for
distribution through domestic nutrition
programs. [Section 442]
Commodities for Domestic
rograms
No provision.Provides that any commoditiesAdopts Senate provision on use
acquired in the conduct of Commodityof commodities. [Section 4202]

Credit Corporation (CCC) operations
and any “Section 32” commodities
may be used for any domestic feeding
program. Covered domestic programs
include: TEFAP, and programs

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
authorized under the Richard B.
Russell National School Lunch Act,
the Child Nutrition Act, the Older
Americans Act, or other laws the
Secretary determines appropriate.
This authority would apply to the
extent that the commodities involved
are in excess of those needed to carry
out other obligations (including
quantities otherwise reserved for
ⁱ^{ki/CRS-RL31704}specific purposes).
^g/w[Section 457]
^s^.or
^le^akition Programs
^://wiki. Russell National SchoolTitle IV of the Farm Security Act ofTitle IV of the Agriculture,Title IV of the Farm Security and
^h^ttpAct of2001Conservation, and Rural EnhancementRural Investment Act of 2002
Act of 2001
modities for the School
h Program
eginning with FY2002, anyNo provision.Delays until FY2004, the date byAdopts Senate provision.
supplied to the Schoolwhich bonus commodities supplied to[Section 4301]

ram are to be counted inthe School Lunch program will count
eting the requirement that 12% oftoward the 12% requirement — in
unch support (casheffect, mandating that only entitlement
commodities) be in the form ofcommodities count toward meeting the
mmodities. This would includerequirement until then. This was the
mmodities provided to meet thecase under pre-FY2002 law. [Section
titlement (15 cents in value per453]
h) and “bonus” commodities

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
’s discretion[Note: Section 166 of the Senate[Note: Section 10603 of the
amendment requires the Secretary toconference agreement provides
ricultural economy. [Section 6(e)(1)provide at least $50 million a yearfor at least $50 million a year in
Richard B. Russell Nationalthrough FY2006 to the Defensefresh fruit and vegetable
Department (DoD) for the purchasepurchases (through the DoD) for
and distribution of fresh fruits andschools and institutions in child
vegetables to schools and institutionsnutrition programs.]
participating in child nutrition
programs.]
or Free and Reduced-
ice School Meals and WIC
ⁱ^{ki/CRS-RL31704}nefits: Military Housing
^g/wSchool meals — All militarya. No Provisiona. Through FY2003, requires that, ina. Adopts Senate provision as to
^s^.oring allowances reported on leavecases where military personnel live inschool meal eligibility and
^le^aks statements are counted as[Note: H.R. 3216 — passed by the“privatized” housing, their housingmilitary personnel in
^://wikiome in determining eligibility forHouse on December 11, 2001 —allowance will not be counted in“privatized” housing. [Section
^h^ttpcontains the provision included indetermining eligibility for free and4302]

(free) housing isthe Senate amendment.]reduced-price school meals. [Section
. In the case of “privatized”454]
y housing — where formerly
is converted to privately
ated housing (or families are
e housing to privately
ng) and military
rsonnel are given a housing
o pass on to the housing
of the

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
The WIC program — Inb. No provision.b. Adds an option for states to excludeb. Adopts Senate provision as to
termining income eligibility for theany housing allowance provided toWIC eligibility and military
cial Supplemental Nutritionmilitary personnel living in on-basepersonnel in “privatized”
ram for Women, Infants, and“privatized” housing. [Section 455]housing. [Section 4306]
IC program), state
choose to exclude any housing
ved by military
“off-base.”
ection 17(d)(2)(B) of the Child
t]
unding for the WIC Farmers’
ⁱ^{ki/CRS-RL31704}et Nutrition Program
^g/wNote:No provision.Makes available an additional $15Adopts Senate provision for the
^s^.oret documents indicate that $11million in mandatory funding for theWIC Farmers’ Market Nutrition
^le^ak made available for theWIC Farmers’ Market Nutritionprogram. [Section 4307]
^://wikiIC Farmers’ Market Nutritionprogram — no later than 30 days after
^h^ttpram in FY2002. For FY2003, noenactment. [Section 460]
ney was requested for the program.]
rojects
utrition Education
learinghouse
No provision.Requires the Secretary to establish (onNo provision. [Note: In March
the Department’s website) a nutrition2002, the Department established
education clearinghouse. [Section 428]a website that features a
clearinghouse for nutrition
education initiatives.]
munity Food Projects
rough FY2002, the Secretary isExtends authority for communityExtends authority for community foodExtends authority for community

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
thorized to make grants to privatefood project grants through FY2011.project grants through FY2006.food project grants through
munity foodIncreases the amount reserved toMaintains the amount reserved at $2.5FY2007. Increases the amount
cts.” Funding is reserved from$7.5 million a year. [Section 406(h)million a year. Increases the federalreserved to $5 million a year.
tamp Act appropriations. And& (j)]share of project costs from 50% toModifies the list of goals that
ants may not exceed a total of $2.575%. Modifies the list of projects thatprojects are designed to achieve
year.must be given preference for grants.and the list of projects that must
[Section 440]be given preference for grants.
Requires that the Secretary
contract with (or make a grant
to) a non-governmental
organization to coordinate with
federal agencies, states and
ⁱ^{ki/CRS-RL31704}political subdivisions, and non-
^g/wgovernmental organizations to
^s^.or
^le^akgather information (and make
re c o mmendations)about
^://wikiinnovative programs for
^h^ttpaddressing “common community
problems” — including loss of
farms, rural poverty, welfare
dependency, hunger, the need for
job training, and individuals’ and
communities’ need for self-
sufficiency. Reserves $200,000
a year (from the $5 million a
year total provided for
community food projects) for
this initiative. [Section 4125]
rograms Addressing
ommon Community Problems
No provision.Requires the Secretary to contract withAdopts provisions comparable to

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
a non-governmental organization toSenate provisions in Section
recommend innovative programs for4125 (see Community Food
addressing “common communityProjects, Item #2 above).
problems” — including loss of farms,
rural poverty, welfare dependency,
hunger, the need for job training,
juvenile crime, and individuals’ and
communities’ need for self-
sufficiency. Makes available $400,000
for the contract. [Section 443]
ⁱ^{ki/CRS-RL31704}ort on Electronic Benefit
^g/wransfer Systems
^s^.orNo provision.Requires the Secretary to submit aAdopts Senate provisions for a
^le^akreport to Congress on EBT systemsreport on EBT systems and
^://wiki(e.g., difficulties relating to their use,revises and expands the elements
^h^ttpfraud, efforts to address difficulties).to be included in the report.
[Section 444][Section 4111]
on Conversion of the WIC
ogram into an Individual
ntitlement Program
o provision.No provision.No later than December 31, 2002,No provision.

requires a report from the Secretary —
to the House Committee on Education
and the Workforce and the Senate
Committee on Agriculture, Nutrition,
and Forestry — that analyzes
conversion of the WIC program from

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
a discretionary program into an
individual entitlement program.
[Section 456]
urchases of Locally Produced
No provision.Requires Secretary to encourage theAdopts Senate provisions as to
purchase of locally produced foods inthe purchase of locally produced
school meal programs and authorizesfoods. [Section 4303]
appropriations for start-up grants
($400,000 a year) to defray costsIn addition, adopts an
ⁱ^{ki/CRS-RL31704}incurred in carrying out this policy.amendment to the Richard B.
^g/w[Section 458]Russell National School Lunch
^s^.orAct that requires — to the
^le^akmaximum extent practicable —
^://wikischool food authorities to
^h^ttppurchase commodities or food
products that are produced in
Puerto Rico in sufficient
quantities to meet their meal
program needs. [Section 4304]
eniors Farmers’ Market
rogram
funding available underFor FYs 2002-2011, authorizes aFor FYs 2002-2006, requires theAdopts the House provision as to
modity Credit CorporationSeniors Farmers’ Market NutritionSecretary to carry out and expand athe Seniors Farmers’ Market
thorities, a Seniors Farmers’ Marketprogram and requires the SecretarySeniors Farmers’ Market NutritionNutrition program, but (1)
rogram was instituted byto support it with $15 million a yearprogram. Provides mandatory fundingreduces the FY2002 amount to
in January 2001. Initialfrom Commodity Credit Corporationof $15 million a year. Authorizes the$5 million and (2) authorizes the

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
was set at $15 million.funds. Authorizes the Secretary toSecretary to issue regulations to carryprogram through FY2007.
issue regulations to carry out theout the program.[Section 4402]
FY2002 Agricultureprogram. [Section 925][Section 459]
ment appropriations law, $10
d as a direct[Note: These provisions are located
eniors Farmers’in Title IX of the House measure.]
rket Nutrition program. This
be supplemented with
Credit
ⁱ^{ki/CRS-RL31704}ruit and Vegetable Pilot
^g/wogram No provision.In the 2002-2003 school year, requiresAdopts Senate provision with
^s^.orthe Secretary to use “Section 32” fundstechnical changes; increases
^le^akto conduct and evaluate a pilotfunding to $6 million. [Section
^://wikiprogram to make free fruit and4305]
^h^ttpvegetables available to elementary and
secondary school students. Provides
$200,000 for the pilot. [Section 461]
ellows
ogram
rson and Mickey LelandEstablishes — as an independentSame as the House bill, with minorAdopts the House provision,
er Fellowships are providedagency of the legislative branch —and technical differences. [Sectionwith minor and technical
h the Congressional Hungerthe Congressional Hunger Fellows462]revisions. [Section 4404]

iven funding throughProgram to offer fellowships that
riculture Departmentprovide training and placements with
., $2.496domestic and international policy
Y2002).development organizations. The
purposes of the program are to:
encourage careers in humanitarian

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
service; recognize the needs of poor
and hungry persons; provide aid to
those in need, increase awareness of
the importance of public service, and
provide training and development
opportunities for future leaders. The
program would be funded from the
earnings of a trust fund invested in
federal securities (an $18 million
appropriation is authorized) and
gifts. [Section 461]
ⁱ^{ki/CRS-RL31704}
^g/wormation and
^s^.orareness Pilot Program.
^le^akNo provision.Authorizes a 15-state pilot program toAdopts Senate provision, with
^://wikiincrease domestic consumption ofrevisions reducing the number of
^h^ttpfresh fruit and vegetables. The federalstates in which the pilot will
share of project costs would be 50%,operate to 5 and lowering the
and $25 million a year is authorized toappropriations authorization to
be appropriated for the projects.$10 million a year. [Section
[Section 463]4403]
. Effective Dates and Cost Estimates
ffective DatesGenerally effective October 1, 2002.Generally effective September 1, 2002Adopts House provision.
[Section 462] — except that states may choose not[Section 4405]
to implement provisions until October

1, 2002. [Section 464]

stimates10-year CBO estimates (April 200110-year CBO estimates (April 200110-year CBO estimates (April
“baseline”)“baseline”)2001 “baseline”)
Title IV: $3.65 billion (budgetTitle IV: $8.31 billion (budgetTitle IV: $6.40 billion (budget

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
authority); $3.64 billion (outlays).authority); $8.89 billion (outlays).authority); $6.97 (outlays).
Food stamp program: $3.18 billionFood stamp program: $8.01 billionFood stamp program: $5.72
(budget authority); $3.17 billion(budget authority); $8.59 billionbillion (budget authority); $6.29
(outlays).(outlays).billion (outlays).
Commodity assistance programsCommodity assistance programsCommodity assistance programs
(TEFAP): $400 million (budget(TEFAP): $300 million (budget(TEFAP & CSFP): $401 million
authority); $398 million (outlays).authority); $298 million (outlays).(budget authority/outlays).
Child nutrition programs: No[Note: $200 million of these amountsChild nutrition programs
provisions.is attributable to TEFAP commodity(commodity purchases & WIC
Special projects (community foodpurchases called for under Title I.]farmers’ markets): $115 million
projects, senior farmers’ markets):Child nutrition programs (commodity(budget authority/ outlays).
$223 million (budget authority);purchases & WIC farmers’ markets):[Note: This amount does not
ⁱ^{ki/CRS-RL31704}$215 million (outlays). [Note: $150$115 million (budgetinclude special DoD fruit &
^g/wmillion of these amounts isauthority/outlays). [Note: This amountvegetable purchases provided for
^s^.or
^le^akattributable to senior farmers’ marketdoes not include special DoD fruit &in Title I ($50+ million a year).]
provisions in Title IX.]vegetable purchases provided for inSpecial projects (community
^://wikiTitle I ($50+ million a year).]food projects, senior farmers’
^h^ttpSpecial projects (community foodmarkets, fruit & vegetable
projects, senior farmers’ markets, fruitpilots): $168 million (budget
& vegetable pilots): $85 millionauthority/outlays).
(budget authority); $90 million
(outlays).
6-year CBO estimates (April 20016-year CBO estimates (April 20016-year CBO estimates (April
“baseline”)“baseline”)2001 “baseline”):
Title IV: $1.94 billion (budgetTitle IV: $3.11 billion (budgetTitle IV: $2.66 billion (budget
authority; $1.92 billion (outlays).authority); $3.63 billion (outlays).authority); $3.17 billion
Food stamp program: $1.65 billionFood stamp program: $2.85 billion(outlays).
(budget authority/outlays).(budget authority); $3.37 billionFood stamp program: $2.19
Commodity assistance programs(outlays).billion (budget authority); $2.71
(TEFAP): $240 million (budgetCommodity assistance programsbillion (outlays).

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
authority); $238 million (outlays).(TEFAP): $260 million (budgetCommodity assistance programs
Child nutrition programs: Noauthority); $258 million (outlays).(TEFAP & CSFP): $241 million
provisions.[Note: $200 million of these amounts(budget authority/outlays).
Special projects (community foodis to TEFAP commodity purchasesChild nutrition programs
projects, senior farmers’ markets):under Title I.](commodity purchases, WIC
$118 million (budget authority);farmers’ markets): $115 million
$110 million (outlays). [Note: $75Child nutrition programs (commodity(budget authority/outlays).
million of these amounts ispurchases, WIC farmers’ markets): Special projects (community
attributable senior farmers’ market$115 million (budgetfood projects, senior farmers’
provisions in Title IX).authority/outlays).markets, fruit & vegetable
Special projects (community foodpilots): $107 million (budget
projects, senior farmers’ markets, fruitauthority); $103 million
ⁱ^{ki/CRS-RL31704}& vegetable pilots): $85 million(outlays).
^g/w(budget authority); $90 million
^s^.or
^le^ak (outlays ).
^://wiki10-year CBO estimates (March
^h^ttp2002 “baseline”)
Title IV: $6.63 billion (budget
authority); $7.02 billion
(outlays).
Food stamp program: $5.94
billion (budget authority); $6.34
billion (outlays).
Commodity assistance programs
(TEFAP & CSFP): $401 million
(budget authority/ outlays).
Child nutrition programs
(commodity purchases, WIC
farmers’ markets): $115 million
(budget authority/ outlays).
Special projects (community

ROGRAMSHOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2008
food projects, senior farmers’
markets, fruit and vegetable
pilots): $168 million (budget
authority/outlays ).
6-year CBO estimates (March

2002 “baseline”)

Title IV: $2.79 billion (budget
authority); $3.18 billion
(outlays).
ⁱ^{ki/CRS-RL31704}Food stamp program: $2.33
^g/wbillion (budget authority); $2.72
^s^.orbillion (outlays).
^le^akCommodity assistance programs
^://wiki(TEFAP & CSFP): $241 million
^h^ttp(budget authority/ outlays).
Child nutrition programs
(commodity purchases, WIC
farmers’ markets): $115 million
(budget authority/outlays).
Special projects (community
food projects, senior farmers’
markets, fruit & vegetable
pilots): $108 million (budget
authority); $103 million
(outlays).

V. FARM CREDIT
FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Consolidated Farm and RuralTitle V, Farm Security Act of 2001Title V, Agriculture Conservation,Title V, Farm Security and
Development Act (Con Act)Rural Enhancement Act of 2001Rural Investment Act of 2002.
A. Farm Ownership/Real Estate Loans
1. General Provisions
a. Currently, if a person qualifies for aNo provision.a. Expands direct loan use to includea. Senate provision with an
farm ownership loan from USDA afterrefinancing of a “bridge” loan takenamendment allowing refinance
ⁱ^{ki/CRS-RL31704}all of USDA’s funds have beenout if a person was approved for afor all farmers or ranchers, not
^g/wallocated, the person must wait toUSDA loan, but is waiting onjust beginning farmers or
^s^.orreceive USDA funds until: the nextavailable funds. [Section. 502]ranchers. [Section 5002]
^le^akfiscal year; enactment of a
^://wikisupplemental funding bill; or, untilfunds are re-allocated from another
^h^ttpstate. [Section 303(a)(1)]
b. Purposes for which USDA mayb. Allows USDA to make orNo provision.b. No provision
make and guarantee loans. [Sectionguarantee loans for value-added or

310B(a)]processing projects. [Section 523]

2. Eligibility
a. Requires persons to haveNo provision.a. Expands eligibility to personsa. Senate provision [Section
“operated” a farm for at least threewho have “participated in the5001]
years in order to receive a loan frombusiness operations of” a farm.
USDA. [Section. 302(b)(1)][Section 501]
b. USDA cannot make a downb. No provisionb. Changes time limit to 20 yearsb. Senate provision amended to
payment loan if a farmer receives other[Section 507(2)]make time limit 15 years.

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
financing requiring a balloon payment[Section 5005(2)]
within 10 years (Section

310E(c)(3)(B)]

3. Beginning Farmers
a. Sets $200,000 limit on amountNo provision.a. Sets $250,000 limitation on farma. No provision
USDA may lend and $700,000 limitownership loan by USDA for a
on the amount USDA may guaranteebeginning farmer. [Section 503]
ⁱ^{ki/CRS-RL31704}to a borrower [Section 305(a)]
^g/w
^s^.orb. Sets Interest rate terms on realNo provision.b. Sets interest rates for beginningb. No provision
^le^akestate loans. [Sec 307(a)]farmers 50 basis points below other
^://wikiborrowers. [Section 504]
^h^ttp
c. Permits but does not require USDANo provision.c. Requires USDA to guaranteec. No provision
to guarantee up to 95% of a down95%. [Section 505]
payment loan for a beginning farmer.
[Section 309(h)(6)]
d. State loans guarantee.No provision.d. Adds Section 309(j) to the Cond. Senate provision [Section
No ProvisionAct to allow USDA to guarantee5004]
loans made under a State beginning
farmer program. [Section 506]
e. Allows USDA to make loans toRaises loan period to up to 15 years.e. Raises percentage to up to 40%e. Adopts Senate percentage
qualified beginning farmers for down[Section 515]and time up to 20 years. [Section(40%) and House loan period (15
payments on farm ownership loans at507]years). [Section 5005(1)]

up to 30% of the farm’s value and for

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
up to 10 years. [Section 310E(b)]
No provision.f. Adds Section 310F requiringf. Senate provision amended to
f. Guarantee owner-financed loans.USDA to carry out a pilot programrequire a pilot program in at least
No provisionin at least 10 states with up to five5 states if the Secretary
borrowers per state in each yeardetermines risk of guarantees is
FY2003-2006, to guarantee owner-similar to risk in commercial
financed loans made to a beginninglenders’ guarantees. Authorizes
farmer. [Section 508]program for FY2003-

2007.[Section 5006]

B. Operating Loans
ⁱ^{ki/CRS-RL31704}1. General Provisions
^g/w
^s^.ora. Allows USDA to make directNo provision.a. Allows one-time waivers for twoa. Senate provision [Section
^le^akoperating loans to farmers for up toyears if a borrower meets certain5101(2)]
^://wikiseven years. [Section 311(c)]conditions. Also, waives the seven-year limit for Indian farmers on
^h^ttpreservations if USDA determines
commercial credit is not generally
available. [Section 512]
b. Allows USDA to guarantee anb. Suspends 15-year limit duringNo provision.b. House Provision [Section
annual operating loan each year for upcalendar years 2002-2006. [Section5102]
to 15 years to a borrower, after which502]
the borrower must graduate to
commercial sources of credit. [Section

319(b)]

2. Beginning Farmers
Allows USDA to make directNo provision.Removes five year limit. [SectionSenate Provision [Section
operating loans to beginning farmers511]5101(1)]

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
who have operated a farm for up to
five years. [Section 311(c)(1)(A)]
3. Indian Farmers
a. Guarantees on loans are set at 90%,No provision.a. Adds Section 309(h)(7) to allowa. Senate provision, revised to
with exceptions for refinanced loansUSDA to guarantee 95% of anspecify that the operating loan
and beginning farmer loans, which areoperating loan made to a member ofguarantee be for operations
guaranteed at 95%. [Section 309(h)]an Indian tribe for a farm within asubject to the jurisdiction of an
reservation. [Section 512]Indian tribe.[ Section 5101(2)]
b. Allows USDA to make directNo provisionb. Waives the seven-year limit forb. Senate provision amended to
ⁱ^{ki/CRS-RL31704}operating loans to farmers for up toIndian farmers on reservations ifwaive 7-year limit for operations
^g/wseven years. [Section 311(c)]USDA determines commercial creditsubject to jurisdiction of an
^s^.oris not generally available. [SectionIndian tribe. [Section 5101(2)]
^le^ak 512(b)]
^://wiki
^h^ttp
C. Emergency Loans
Emergency loan procedures. [SectionExpands eligibility for emergencyNo provision.House provision amended to
321, 323, 324, 329]loans to include plant or animalprovide new authority for
quarantines, and sharply increasingemergency loans only for plant or
energy costs.animal quarantines. [Section
— Allows financial assistance when5201]

energy prices during a three-month
period are at least 50% greater than
the average price for the preceding
five years.
— Allows loans of up to $500,000
due to a quarantine and $200,000
due to increased energy costs.

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
[Section 510]
D. Administrative Provisions
1. Eligibility
a. Sets forth persons and entitiesa. Extends USDA loan eligibility toa. Same as House Bill. [Sectiona. House provision amended to
eligible for loans and guarantees fromlimited liability companies engaged521]also include trusts as eligible
USDA. [Secs. 302(a), 311(a), andin farming and controlled by farmersentities. [Section 5302]

321(a)][Section 501]

ⁱ^{ki/CRS-RL31704}
^g/wb. Requires a county committee tob. Removes requirement. [Sectionb. Removes requirement thatb. Senate provision [Section
^s^.orcertify in writing that an annual review505]reviews be certified in writing.5306]
^le^akof borrowers’ credit history and[Section 525]
^://wikicontinued eligibility for loans has beenperformed. [Section 333]
^h^ttp
c. Requires a borrower to completeNo provision.c. Removes the requirement of thec. Senate provision [Section
educational training unless the countycommittee’s determination before5316]
committee determines the borrowerUSDA may grant a waiver, and
has adequate knowledge, in order to berequires USDA to set up criteria for
eligible for a direct loan from USDA.granting a waiver. [Section 532]
[Section 359(f)]
d. Requires Secretary to evaluate thed. Technical amendment removingd. Technical amendment striking thed. House provision [Section
farming plan of each applicant afterlanguage words “established pursuant to5317]

the county committee has determinedrequiring county committee tosection 332 “ (which is authority for
the applicant is eligible for a loan.determine loan eligibility. [Sectioncounty committees that was repealed
[Section 360(a)]507]by P.L.103-354. [Section 552(d)]
[Note: The Department of Agriculture

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Reorganization Act of 1994 (P.L. 103-
354) repealed Section 332 of the Con
Act, which established county
committees.]
e. Amends to allow direct loans toNo provision.e. Replaces House provision with
e. Prohibits USDA from making aborrowers who have not receivedprovision allowing operating
direct loan to a borrower who hasdebt forgiveness more than twoloans to a borrower who has
received debt forgiveness. [Sectiontimes, and allow loan guarantees toreceived debt forgiveness not
373(b)(1)]borrowers who have not receivedmore than once due to a natural
debt forgiveness more than threedisaster designated by the
times. [Section 519]President [Section 5319]
ⁱ^{ki/CRS-RL31704}f. Adds a new section (Section 377)No provision.f. House provision with an
^g/wf. Eligibility for USDA employeesto Subtitle D of the Con Act to allowamendment that county or area
^s^.or
^le^akand employees of State, county andUSDA employees to obtain direct orcommittee employees apply to
area committees.guaranteed loans, so long as a localthe State level and State
^://wiki No provisioncounty office other than theemployees apply to the Federal
^h^ttpapplicant’s home office approves thelevel. [Section 5321]
loan application. [Section 509]
2. General Provisions
a. Sets forth various loana. Allows USDA to administer thea. No provisiona. House provision amended to
administration procedures. [Sectioncertified and preferred lendermake authority discretionary.

331(b)]guaranteed loan programs through[Section 5309]

central offices in states or multi-state
areas. [Section 503]
b. Debt Settlement. Sets forthNo provisionb. Deletes the provision that theb. Senate provision with an
procedures for the Secretary to use inSecretary may not release a borroweramendment changing the role of
settling debts [Section 331(b)(4)]from a debt obligation on morelocal or area FSA committees to
favorable terms than recommendedone of consultation only
by the county committee underregarding potential debt

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Section 332. [Section 522]settlement agreements. [Section
NOTE: More or less technical since5303]
Section 332 was repealed by the

1994 USDA Reorganization Act.

c. Allows USDA to contract withc. Extends authority through
private lenders to service loansFY2011. [Section 511]c. Removes Section 331(d).[Sectionc. Senate provision [Section
through the end of FY2002. [Section523]5304]

331(d)]

d. Allows USDA to use a privateNo provision.
collection agency to collect loand. Removes this authority ford. Senate Provision [Section
obligations. [Section 331(e)]contracts entered into after5304]
ⁱ^{ki/CRS-RL31704}enactment of the new farm bill.
^g/w[Section 523]
^s^.or
^le^ake. Requires USDA to provide a short,e. Raises amount to $150,000.
simplified application for guarantees[Section 504]e. Sets the amount at $100,000.e. Sets amount at $125,000
^://wikiof loans up to $50,000. [Section[Section 526][Section 5307]
^h^ttp333A(g )(1 )]
f. Allows USDA to guarantee 80% off. Allows USDA to guarantee lessNo provision.f. No provision
a loan made to a qualified borrower.than 80%, if a borrower’s income is
[Section 339]below expenditures. [Section 506]
g. Describes the term “debtg. Excludes from the definition anyg. Similar to House bill. [Sectiong. House provision [Section
forgiveness.” [Section 343(a)(12)]write-down provided as part of a528]5310]
resolution of a discrimination
complaint against USDA. [Section

518]

h. Definitions. [Section 343]h. Includes “horses” under the termh. No provision.h. No Provision

“livestock.” [Section 521]

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
i. Sets loan authorization levels andi. Removes limitation on total loani. Authorizes total USDA loans andi. Senate provision amended to
program administration. [Section 346]amounts USDA may make orguarantees up to $3.796 billionauthorize for FY2002-2007.
guarantee. [Section 512]annually for FY2002-6, with $770[Section 5311]
million for direct loans and $3.026
billion for guaranteed loans. [Section

169]

j. Shared appreciation arrangementsj. Prohibits USDA from foreclosingj. Allows SAA borrowers anj. New provision permits
(SAA). [Section 353(e)]or collecting payments on SAAsalternative to repaying the recaptureSecretary to modify a recapture
until after December 31, 2002.amount by allowing USDA a 25-loan on which a payment has
[Section 522]year agricultural use protection andbecome delinquent; reamortized
conservation easement in lieu ofloans are not to exceed 25 years
ⁱ^{ki/CRS-RL31704}payment of recapture amount.and the outstanding principal or
^g/w[Section 531]unpaid interest may not be
^s^.or
^le^akNOTE: CBO estimates one-yearreduced. [Section 5314]
FY2002 cost of $66 million for this
^://wiki provision
^h^ttp
k. Reserves funding for sociallyk. Allows remaining, unused fundsNo provision.k. House Provision [Section
disadvantaged farmers. [Sectionto be reallocated to other states.5315]

355(c)(2)][Section 520]

l. Requires loan assessments to bel. No provision.l. Changes to annual assessments.l. Senate provision [Section
conducted biannually to assess the[Section 533]5318]
progress of a borrower in meeting the
goals for the farm operation. [Section

360(d)(1)]

m. Making and servicing loans.m. Adds a new section (Sectionm. No provision.m. House Provision [Section
No provision376) to Subtitle D of the Con Act to5320]

require USDA to use Farm Service
Agency (FSA) county office

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
employees to make and service loans
if personnel are trained to do so.
[Section 508]
n. Studies of USDA loans. Non. New provision directing USDANo provision.n. House Provision [Section
provisionto conduct studies of direct and5301]
guaranteed loan programs to include
number of loans, average principal
amount, and delinquency and default
rates. [Section 517]
3. Interest Rates
ⁱ^{ki/CRS-RL31704}a. Provides that the interest rate on aNo provision.a. Provides a third option of the ratea. Senate provision [Section
^g/wloan being rewritten is to be the lowerin effect on the date the borrower5305]
^s^.orof the original interest rate or the rateapplies for servicing. [Section 524]
^le^akin effect at the time the loan is
^://wikirewritten. [Section 331B]
^h^ttp
b. Authorizes USDA to administer anb. Reauthorizes program throughb. Permanent reauthorization.b. Senate provision [Section
interest rate reduction program forFY2011. [Section 514][Section 530]5313]
guaranteed loans, through FY2002.
[Section 351]
c. Allows USDA to make payments toNo provision.c. Sets the limit for beginningc. Authorizes spending up to
a lender to reduce a borrower’s interestfarmers at 4%, and 3% for other$750 million per fiscal year,
up to 4%; sets spending limit at $490borrowers. Increases spending toretains current law on interest
million. [Section 351]$750 million per FY and requires atrate, and reserves at least 15% of
least 25% of the funds to be reservedthe funds for beginning farmers
for beginning farmers until April 1until March 1 of each fiscal year.
of each FY. [Section 530][Section 5313(2)]

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
4. Beginning Farmers
a. When USDA acquires property,No provision.a. Changes time period to 135 days,a. Senate provision with
within 75 days the property must beand allows USDA to combine/divideamendment removing language
offered for sale to a beginning farmeracquired properties in order toregarding easements. [Section
at current market value. [Sectionmaximize opportunity for beginning5308]
335(c)]farmers to purchase. Specifies that
when USDA sells acquired property,
it may offer to sell or grant an
easement for the purpose of farmland
preservation. [Section 527]
b. Increases acreage amount to 30%.
ⁱ^{ki/CRS-RL31704}b. Allows a “qualified beginningNo provision.[Section 528]b. Senate Provision [Section
^g/wfarmer” to own land in an acreage5310(a)]
^s^.or
^le^akamount up to 25% of the median
acreage of farms in the county.
^://wiki[Section 343(a)(11)]
^h^ttpc. Reserves 35% for FY2002-2006.
c. Loans reserved for beginningc. Reserves 35% of loan amounts[Section 529] Requires $5 millionc. House provision revised for
farmers and ranchers. [Sectionfor beginning farmers and ranchersof CCC funds be used for direct farmreauthorization to FY2003-2007.

346(b)(2)(A)(ii)]during FY2002-2011. [Section 513]ownership loans. [Section 169][Section 5312]

E. Department of Agriculture Reorganization Act of 1994
Provides that decisions by FSA countyExcludes credit decisions from theSimilar to House bill [Section 551]House provision [Section
committees become final within 9090-day finality rule . [Section1613(i)(2)(B)]
days after the date a person applies for508(b)5]
benefits. [Section 281(a)]
F. Farm Credit System (Farm Credit Act of 1971)
a. Requires prior approval by the FCSNo provision.a. Removes the requirement thata. Senate Provision [Section

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
bank before a bank for cooperativesprior approval must be given by the5401]
can purchase a loan originated by aFCS bank. [Section 541]
commercial bank to an entity that can
be financed by another Farm Credit
System (FCS) bank. [Section

3.1(11)(B)]

b. Allows CoBank to finance theNo provisionb. Expands CoBank’s ability to lendb. Senate Provision [Section
export of farm machinery and otherby removing the “on farm”5402]
farm-related products that are intendedrequirement and allowing it to
for use on farms in foreign countries.finance agriculture-related
[Section 3.7]processing equipment and machinery
ⁱ^{ki/CRS-RL31704}and other capital goods related to
^g/wstoring or handling agricultural
^s^.or
^le^akcommodities. [Section 542]
^://wikic. Contains provisions for premiumsNo provisionc. Allows the FCS Insurancec. Senate Provision made
^h^ttpwith regard to the insurance of loansCorporation to adjust premiumsapplicable beginning in calendar
for the Farm Credit System (FCS),charged according to FCS’year 2002. [Section 5403]
which has GSE status that implicitlygovernment sponsored enterprise
protects against failure and reduce risk.(GSE) status. [Section 543]
[Section 5.55]
d. Establishes a 15-member Board ofNo provision.d. Increases Board to 17 members,No Provision
Directors for Farmer Mac, a secondaryand makes other changes to the
market agricultural lender. [SectionBoard’s structure. [Section 544]

8.2]

G. Miscellaneous Credit and Finance Provisions
1. Horse Breeder Loans
[Note: language was included in theNew provision authorizing loans toNo provision.No provision

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
FY2002 Agricultural Appropriationshorse breeders to assist for losses as
law (P.L.107-76; Section 759(c)),a result of mare reproductive loss
providing for loans with loan terms upsyndrome:
to 20 years.] — at least 30% of mares failed to
produce live, healthy foal;
— breeder was unable to meet
expenses or obtain credit elsewhere;
— loan amount up to $500,000,
with term up to 15 years;
— loan authority expires end of
FY2003. [Section 516].
Note: House bill also proposed to
ⁱ^{ki/CRS-RL31704}include horses within the meaning of
^g/wlivestock under the ConAct. This
^s^.or
^le^akalso was dropped by Conferees.
^://wiki
^h^ttp
2. Emergency Loans for Seed
Producers
Producers of the 1999 crop of seedNo provision.Amends repayment period to 54Senate provision amended to
who did not receive payments frommonths. [Section 1064]extend repayment period to 36
AgriBiotech as a result of bankruptcymonths. [Section 10103]
proceedings, were eligible for no-
interest loans from USDA with
repayment due within 18 months.
[Section 253 of the Agricultural Risk
Protection Act of 2000, PL 106-224]
3. Family Farmer Bankruptcy
ProvisionsNo provision.Reenacts Chapter 12, effective toExtends chapter 12 provisions
Chapter 12 of Title 11 USC, sets forthOctober 1, 2001. [Section 1071]through December 31, 2002

FARM CREDIT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
bankruptcy provisions for family[Section 10814]

farmers.
ⁱ^{ki/CRS-RL31704}
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

VI. RURAL DEVELOPMENT
RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
A. Rural Community Advancement Program
Rural Community Advancement Program (RCAP). Subtitle E, 7 U.S.C. (2009 et seq.). Authorizes all RCAP loans and grants under the Consolidated
Farm and Rural Development Act of 1972 (P.L.92-419), 7 U.S.C. 1926, 1926(a), 1926(c), 1926(d), and 1932 except for sections 381-H, 381N and 381(0)
of the 1972 Act. [FAIR Act, Section 761]
[Note: RCAP integrates 13 different loan and grant program accounts into 3 funding accounts: Rural Utilities, Rural Business and Cooperative
Development, and Rural Communities Facilities. RCAP permits local authorities to transfer up to 25% from one account to another. RCAP is not scored
by CBO under the farm bill, but the funding streams are part of the loan and grant programs administered under USDA Rural Utilities Services (RUS),
Rural Business and Cooperative Service (RBS), and Rural Housing Service (RHS). Conference appropriation agreement authorizes $940.3 million,
ⁱ^{ki/CRS-RL31704}including $133.7 million in salaries and expenses.]
^g/w
^s^.orB. Fund for Rural America
^le^ak
Fund for Rural America, 7 U.S.C.Not Extended Not ExtendedRepeals Fund for Rural
^://wiki2004(f). Three program accounts: ruralAmerica. [Section 6403]

^h^ttpdevelopment, competitive research
grants, and a Secretary’s discretionary
fund. [FAIR Act, Section 793]
[Note: FAIR authorizes the Fund for
Rural America for 1997, 1999, and

2000. The Agriculture Research,

Extension, and Education Reform Act
of 1998 (P.L.105-185) extends
authorization through 2002 at $60
million per year. Although funds were
appropriated, appropriators in both
House and Senate prohibited
expenditures to carry out Fund
programs in 2002 as they did in
FY1999.]

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
C. Telecommunications

1.Authorizes grants to broadcastNo ProvisionGrants to Broadcasting Systems.Senate Provision [Section 6016]

systems. [FAIR, Section759B]Authorizes $5 million each year,
Consolidated Farm and RuralFY2002-2006. [Section 632]
Development Act of 1972, U.S.C.

1932(f), [Section 310B(f)]

2. Title X of the District of ColumbiaAuthorizes $200 million duringNo ProvisionProvides $80 million FY2002-

Appropriations Act of 2001 (P.L.106-FY2002-2006 for loan guarantees.2006. [Section ]

553) authorizes the Launching Our[Section 601]

ⁱ^{ki/CRS-RL31704}Communities’ Access to Local
^g/wTelevision Act of 2000.
^s^.or
^le^ak3. Consolidated Farm and RuralNo ProvisionEstablishes Rural TeleworksProvides $30 million each fiscal
Development Act ,7 U.S.C. 1981 et seq.Program and authorizes funding ofyear, FY2002-2007. [Section
^://wiki$150 million. [Section 641]6022]
^h^ttp

4. Telemedicine and Distance LearningNo ProvisionReauthorizes the TelemedicineSenate Provision. [Section 6203]

Grants authorized through 2002.and Distance Learning Program
Statutory authority provided by the. [Section 652]
Rural Electrification Act of 1936, 7
U.S.C. 901 et seq. Distance
learning/medical link program
established under Section 2335A of the
Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 950aaa-5).
5.The Rural Electrification Act of 1936No ProvisionEnhanced Access to BroadbandProvides $20 million in each of
(7 U.S.C. 901 et seq.)Services. Provides $100 millionFY2002-2005 and $10 million
per year, FY2002-2006 for grantsfor each of FY2006 and 2007.

3 years.]

D. Value-added Agriculture Development
1. Establishes value-added marketValue-Added AgriculturalValue-added Agriculture MarketHouse Provision
grants under the Agricultural RiskProduct Market Grants.Development Grants. Provides[Note: Provides $40 million in
Protection Act of 2000 (P.L.106-224; 7Establishes expanded eligibility for$75 million per year, FY2002-2006.grants each year, FY2002-2007
U.S.C. 162. [ Section 231(a)]value-added grants Authorizes $60[Section 606]to independent producers and
ⁱ^{ki/CRS-RL31704}million each year FY2002-2011.producer-owned enterprises].
^g/w[Section 602][Section 6401]
^s^.or
^le^ak
2. Establishes the intermediary lendingNo ProvisionValue-Added IntermediaryNo Provision
^://wikiprogram under the Food Security Act ofRelending Program. Provides $15
^h^ttp1985 (7 U.S.C. 1932 note; Public Lawmillion in each year, 2003-2006.

99-198). [Section 1323(b)(2)(C)][Section 634]

3. Agricultural Risk Protection Act ofAgriculture Innovation CenterNo ProvisionProvides not less than $3 million
2000 (P.L.106-224; 7 U.S.C. 162).Demonstration Program.for FY2002 and not less than $6
[Section 231(a)(1)]Authorizes $5 million in FY2002million for FY2003 and 2004.
and not less than $10 million in[Section 6402]

FY2003 and 2004. [Section 603]
[Note: The provision makes
available part of the funding for
value-added market grants in
Section 602.

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007

4. Consolidated Farm and RuralNo ProvisionDelta Region AgriculturalSenate Provision [Section 6027]

Development Act of 1972, 7 U.S.C.Economic Development. Provides

1981 et seq.$7 million each fiscal year 2002-

2006 for animal nutrition
technology development and value-
added manufacturing. [Section 647,
Section 379f]

5. Consolidated Farm and RuralTraining for Farm Workers inNo ProvisionHouse Provision [Section 6025]

Development Act of 1972, 7 U.S.C.new technologies necessary for
1922-1949.higher value crops. Authorizes up
ⁱ^{ki/CRS-RL31704}to $10 million each year, FY2002-
^g/w2011. [Section 617]
^s^.or
^le^akE. Water and Waste Treatment Programs
^://wiki1. Subtitle A, Consolidated Farm andGrants to NonprofitNo ProvisionProvides $10 million each year
^h^ttpRural Development Act of 1972, 7Organizations to finance theFY2002-2007. [Section 6012]
U.S.C. 1922-1949.construction or improvement of
well-water systems for low or
moderate income households.
[Section 614]
2. Consolidated Farm and RuralNo ProvisionSEARCH Grants for SmallSenate Provision
Development Act of 1972, 7 U.S.C.Communities Provides $51[Note: Eligible rural
1921 et seq.million to communities under 3,000communities are those under
in population. [Section 646]2,500 population. [Section 6301,
[Note: SEARCH grants assist verySubtitle D]

small communities in meeting
various environmental regulations
associated with water and waste
disposal. Program would create a

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
new Subtitle J to the Consolidated
Farm and Rural Development Act
of 1972.]
3. Amends Section 306(a) of theRemoves the specification of $590Raises funding authorization forMaintains current law $590
Consolidated Farm and Ruralmillion in authorized funds,water and waste water programsmillion authorization ceiling, but
Development Act of 1972 (7 U.S.C.effectively providing for no cap onfrom $590 to $1.5 billion andincluded language allowing
1926a(i)) to reauthorize and increasethe amount of funding authorizedauthorized $30 million each yearsadditional spending of such sums
from $500 million to $590 millionfor water and wastewater treatment.through FY2006 to capitalizedas may be necessary. Also
annual funding for Water and Waste[Section 621]revolving loan funds.[Section 621]provides $30 million each year
Treatment grants and loans to assistthrough 2006 to capitalize
local communities in meeting Staterevolving loan funds [Section
ⁱ^{ki/CRS-RL31704}standards established under the Safe6002].
^g/wDrinking Water Act (42 U.S.C. 300f et
^s^.orseq.) and the Federal Water Pollution
^le^akControl Act ( 33 U.S.C. 1251 et seq.)
^://wiki[FAIR, Section 741]
^h^ttp[Note: The FAIR amendment redefines
“small communities” and “smallest
community” as those under 10,000 and

3,000 population, respectively.]

4. Amends Section 306 of theReauthorizes program and deletesReauthorizes Community WaterAuthorizes the a “emergency and
Consolidated Farm and Rural“Emergency” from the title.Assistance Program throughImminent Community Water
Development Act of 1972 to authorizeProvides $75 million annually inFY2006 with no changes. [SectionAssistance Grant Program. Sets
the Emergency Conservation Watermandatory funding for each of629]. aside not less than 3% or more
Assistance Program. FY2002-2011. [Sections 604 andthan 5% of appropriated water

943]Note: Also fully funds the existingand waste water funds (above)

backlog of applications for ruralfor communities facing drinking
development loans and grantwater shortages, and authorizes
programs Increases authorization$35 million each year in
for Water and Waste Treatmentadditional funding for the

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
grants from $590 million to $1.5program for FY203-2007.
billion, FY2002-2006. [Section[Section 6009]
621] Note: The CBO has scored this
as a discretionary spending
program. Although conference
report language suggests the
adoption of the House provision,
the legislative language is quite
different from the House bill.
F. Rural Entrepreneur and Business Investment Programs
ⁱ^{ki/CRS-RL31704}1. Consolidated Farm and RuralNo ProvisionRural Entrepreneurs andNo Provision
^g/wDevelopment Act of 1972, 7 U.S.C.Microenterprise Assistance
^s^.or1891 et seq.Program. Authorizes $50 million
^le^akeach year, FY2002-2006. [Section
^://wiki638][Note: Program creates a new
^h^ttpSubtitle D to the Consolidated Farm
and Rural Development Act of

1972.]

S.Amdt. 2615 makes budget
authorization for [Section 638]
discretionary.
2. Consolidated Farm and RuralNo ProvisionNational Rural Cooperative andNo Provision
Development Act of 1972 7 U.S.C.Business Equity Fund. Authorizes[Note: Conferees created a new
1921 et seq.appropriation of $150 million to beRural Strategic Investment
matched by private investors.Program [Section 6030, Subtitle
USDA will guarantee 50% of eachI] and provides $100 million in
investment with a maximum total ofgrants.

$300 million. Administered by the
Small Business Administration.

1972.]

3. Consolidated Farm and RuralNo ProvisionRural Business InvestmentProvides $100 million in grants
Development Act of 1972 7 U.S.C.Program. Provides for grants up toand loan subsidies and $280
1921 et seq$1 million each to establish Ruralmillion in loan guarantees
Business Investment Companies toFY2002-2007. [Section 6029,
be administered by the SmallSubtitle H]
Business Administration. CBO[Note: Permits up to 10% of
ⁱ^{ki/CRS-RL31704}estimates the cost at $70 million ininvestments to be made in areas
^g/wloan subsidies and $50 million incontaining a city of over 150,000
^s^.orgrants. [Section 602]population]
^le^akS.Amdt. 2853 permits up to 10% of
^://wikithe funds to be invested in rural
^h^ttpareas with a city of up to100,000
population.
[Note: Program would create a new
Subtitle H to the Consolidated Farm
and Rural Development Act of

1972.]

G. Strategic Rural and Regional Planning Programs
1.Provides implementation authorityPilot Program for Development ofNo ProvisionConferees created a new Rural
through (I) the Consolidated Farm andStrategic Regional Development.Strategic Investment Program
Rural Development Act (7 U.S.C. 1921Plans. Authorizes $60 million each[Section 6030, Subtitle I] that
et seq.); (II) subtitle G of title XVI andyear FY2002-2011. Secretary willprovides $100 million in
title XXIII of the Food, Agriculture,select 10 states in which toplanning grants

Conservation, and Trade Act of 1990;implement the strategic plans.
(III) title V of the Rural Development[Section 613]No Provision

99-198; 7 U.S.C. 1932 note). [FAIR,

Section.793(c)(1 )(A)(ii)]

2. Consolidated Farm and RuralNo ProvisionMultijurisdictional RegionalSenate Provision [Section 6006]

Development Act of 1972, 7 U.S.C.Planning Grants. Authorizes $30
1926(a). [Section 306(a)]million each year FY2003-2006 to
fund regional planning
organizations. Maximum grants of
$100,000, “not to exceed 75% of
ⁱ^{ki/CRS-RL31704}the federal share of the cost of
^g/wproviding assistance to local
^s^.orgovernments.” [Section 624]
^le^ak
^://wiki3. The Consolidated Farm and RuralDevelopment Act of 1972, 7No ProvisionRural Endowment Program. $82million for planning grants [SectionNo Provision
^h^ttpU.S.C.1921 et seq.385C(d)], endowment grants
[Section 385C(f]), and private
technical assistance [Section

385C(h)] [Section 604]

[Note: For rural areas with
populations under 25,000]
H. Rural America Infrastructure Account

1. Authorizes various loans and grantsNo ProvisionFull Funding for Pending RuralProvides $360 million FY2002-

under the Consolidated Farm and RuralDevelopment Loans and Grants.2007. [Section 6031]
Development Act of 1972 (P.L92-419),[Section 603] [Note: Restricts program to
7 U.S.C. 1926, 1926(a), 1926(c),[Note: Establishes an account in thebacklogged applications for

1926(d), and 1932 except for SectionsU.S. Treasury to be known as thewater and waste water projects]

381-H, 381N and 381(0) of the 1972‘’Rural America Infrastructure

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Act. Development Account.” This
provision authorizes a one-time
removal of the backlog of pending
applications for rural development
loans and grants. CBO estimates
the cost at $454 million.]
I. Other Rural Development Programs
1. Consolidated Farm and RuralNo ProvisionRural Firefighters andProvides $10 million each fiscal
Development Act, 7 U.S.C. 1926(a).Emergency Medical Personnelyear 2003-2007. [Section 6405]
[Section 306(a)]Training Program. Authorizes
ⁱ^{ki/CRS-RL31704}$10 million in first year and $30
^g/wmillion annually, FY2003-2006.
^s^.or[Section 627]
^le^ak
2. Consolidated Farm and RuralNo ProvisionRural Seniors. Provides $125No Provision
^://wikiDevelopment Act of 1972, 7 U.S.C.million in grants for programs
^h^ttp1891 et seq.targeting rural seniors. [Section

639]

3. Consolidated Farm and RuralNo ProvisionHistoric Barn PreservationAuthorizes such sums as are
Development Act ,7 U.S.C. 1981 et seq.Program. Authorizes $25 millionnecessary. [Section 6023]
in each year, FY2002-2006.
[Section 642]

4. Consolidated Farm and RuralNo ProvisionNorthern Great Plains RegionalSenate Provision [Section 6028]

Development Act of 1972, 7 U.S.C.Authority. Creates the Authority
1921 et seq.and provides $30 million in each
year, FY2002-2006. [Section 647]
[Note: Program would create a new
Subtitle K to the Consolidated Farm

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
and Rural Development Act of

1972.]

5. Section 4, Rural Electrification ActAuthorizes loans and loanNo ProvisionHouse Provision [Section 6013]

of 1936 (7 U.S.C. 904); Sectionguarantees for Renewable Energy
310B(a)(3) of the Consolidated FarmSystems [Sections 605 and Section
and Rural Development Act of 1972, 7606]
U.S.C. 1932(a)(3).

6. Changes legal status of theNo ProvisionRepeals corporate authorization andSenate Provision. [Section 6201]

Alternative Agricultural Researchtransfers assets to an account to
ⁱ^{ki/CRS-RL31704}and Commercialization Center bysupport “critical emerging issues”
^g/wconverting it to a wholly-ownedin future food production,
^s^.orgovernment corporation within USDA.environmental management, and
^le^ak[Section 721 of FAIR Act, Amendsfarm income. [Section 651]
^://wikiSection 1658 of the Food , Agriculture,Conservation, and Trade Act of 1990[Note: Repeals Subtitle G of TitleXVI of the Food, Agriculture,
^h^ttp(P.L.101-624) (7 U.S.C. 5902)] Conservation, and Trade Act of

1990 (7 U.S.C. 5901 et seq.)

7. National Rural DevelopmentAuthorizes the National RuralAuthorizes the National RuralHouse and Senate Provisions.

Partnership. Subtitle D of theDevelopment Partnership. SectionDevelopment Partnership. SectionProvides $10 million for each
Consolidated Farm and Rural615612fiscal year 2002-2007. [Section
Development Act (7 U.S.C. 1981 et6021]
seq).
8. Rural Business and CooperativeAuthorizes Rural BusinessAmends Section 306(a)(11)(D) ofReauthorizes Rural
Service: Miscellaneous loans andOpportunity Grants [Sectionthe Consolidated Farm and RuralCooperative Development
grants:607], Rural CooperativeDevelopment Act, 7Grants [Section 6015], Rural
(1) Establishes Business OpportunityDevelopment Grants [SectionU.S.C.1926(a)(11)(D)) toBusiness Enterprise Grants

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Grants. [FAIR Act Section741(a)(10)];609], Rural Venture Capitalreauthorize Business Opportunity[Section 6014] and Rural
(2) Establishes Business EnterpriseDemonstration Program [SectionGrants through FY 2006. [SectionBusiness Opportunity Grants
Grants under the Consolidated Farm611], at same funding level through622] [Section 6003]. Repeals the
and Rural Development Act of 1972,2011.Amends Section 310B(e)(9) of theRural Venture Capital
[Section 310B(c)]; (3) Authorizes RuralMakes Rural EmpowermentConsolidated Farm and RuralDemonstration Program
Economic Development Loans underZones and Rural EnterpriseDevelopment Act (7 U.S.C.[Section 6026]
the Rural Electrification Act of 1936Communities eligible for direct1932(e)(9) to reauthorize Rural
[Section 313]; (4) Authorizes Ruraland guaranteed loans for essentialCooperative Development Grants
Cooperative Development grants undercommunity facilities.through FY2006. [Section 631]
the Consolidated Farm and Rural[Section 616]
Development Act of 1972 7 U.S.C.
1932, [Section 310(B)(e)]; (5) Title VIII
ⁱ^{ki/CRS-RL31704}of the Omnibus Budget Reconciliation
^g/wAct of 1993 (P.L.103-66) and the
^s^.or
^le^akTaxpayer Relief Act of 1997 (P.L.105-
277) establishes Rural Empowerment
^://wikiZones and Rural Enterprise
^h^ttpCommunities (EZ/ECs) .
[Note: The 1996 FAIR Act incorporates
EZ/ECs. The Agriculture
Reorganization Act of 1994 (P.L.103-
354) reorganizes USDA Rural
Development into the RUS, RBS, and
RHS(former Farmers Home
Administration non-farm functions);
Act provided for the transfer to RBS of
the assets and liabilities of Business and
Industry Guaranteed Loan Program
(310)a))1) of the Consolidated Farm
and Rural Development Act of 1972.]
Cost of Rural Development TitleCBO Estimate: $1.5 billion in directCBO Estimate: $1.711 billion inCBO Estimate: $870 million in

RURAL DEVELOPMENT HOUSE BILLSENATE AMENDMENTNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amendedP.L. 107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
authorization. Total direct anddirect authorization for ruralmandatory spending FY2002-
discretionary authorizationdevelopment programs. Total2007. [Note: This figure
FY2002-2011, $3.6 billion. direct and discretionaryexcludes energy related program
authorization FY2002-2006, $3.4spending. It also reflects
billion.recision of $160 million in
[Note: This estimate excludes $550previous authorization for the
million for energy related programsFund for Rural America which
also budgeted by CBO under Titlewas repealed. [Section 6043].
VI. Including this funding bringsCBO has not estimated
the total estimated directdiscretionary spending]

authorization for Title VI to $2.261
billion.]
ⁱ^{ki/CRS-RL31704}
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

VII. RESEARCH
RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
National Agricultural Research,Title VII, Research and RelatedTitle VII, Agricultural Research,Title VII, Research and Related
Extension, and Teaching Policy ActMattersEducation, and Extension andMatters
of 1977 (NARETPA); theRelated Matters
Agricultural Research, Extension, and
Education Reform Act of 1998;
omnibus farm legislation passed in
1985 and 1990; and others, as noted
A. Funding Authority: University Research and Cooperative Extension
ⁱ^{ki/CRS-RL31704}1. Authorizes $850 m. annually forExtends authority through FY2011Increases funding authority to $1.5Authorizes the appropriation of
^g/wresearch at land grant colleges ofwith no changes. [Section 708]billion annually through FY2006.such funds as may be necessary
^s^.oragriculture (excluding competitive[Section 716]through FY2007. [Section 7113]
^le^akgrants and Hatch Act of 1887 formula
^://wikifunds) [Section 1463 of NARETPA]
^h^ttp2. Authorizes $420 m. forExtends authority through FY2011Increases funding authority toAuthorizes the appropriation of
cooperative extension programswith no changes. [Section 714]$500 million annually throughsuch funds as may be necessary
through FY2002. [Section 1464 ofFY2006. [Section 717]through FY2007. [Section 7114]
NARETPA]
B. The Initiative for Future Agriculture and Food Systems
1. Authorizes the transfer of $120 m.Requires the Secretary to transferAuthorizes the transfer of $130Authorizes the transfer from the
annually in FY1999-2002 from the$1.16 billion into the Initiative frommillion annually through OctoberCommodity Credit Corporation
U.S. Treasury to USDA for athe Commodity Credit Corporation1, 2002, and of $225 millionof $120 million in FY2003, $140
competitive grants program on criticalin equal annual amounts over a 9-annually through 2006 from themillion in FY2004, $160 million
emerging issues and high-priorityyear period ending in FY2011.Commodity Credit Corporationin FY2005, and $200 million
research. [Section 401 of 1998 Act][Section 750][per Section 1099B] for theannually in FY2006-07 for the
Initiative [Section 169], andInitiative, and gives priority for
recommends that the Secretarygrants to small, mid-sized, and

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
reserve 10% of Initiative funds forminority-serving institutions that
grants to minority-servinghave not been successful in
institutions. [Section 741]winning grants under other
programs. [Section 7205]
Designates $25 million of InitiativeContains a comparable provision,Authorizes such sums as
funds in FY2004-08 to be awardedwith funding authorized undernecessary through FY2007 for an
to minority-serving schools forTitle IV of the 1998 Act. [SectionFAS-administered competitive
research on biotechnology to benefit750]grant program for research on
developing countries. USDA’sbiotechnology to benefit
Foreign Agricultural Service (FAS)developing countries. All
would administer the program.institutions with an agricultural
ⁱ^{ki/CRS-RL31704}[Section 763]or bioscience curriculum would
^g/wbe eligible. [Section 7505]
^s^.or
^le^ak2. Defines priority mission areas forAdds alternative fuels, precisionMakes no change to existing law.Adds rural economic, business
^://wikithe Initiative. [Section 401 of theagriculture, crop diversification, andand community development
^h^ttp1998 Act]small livestock farm improvement topolicy to the list of priority
the list of areas to be addressed byresearch areas. [Section 7205]
the Initiative. [Section 743]
C. Land Grant Institutions in Insular Areas
1. Defines the Commonwealth ofCreates a new grant program toRedefines U.S. territories asAuthorizes such sums as are
Puerto Rico, Guam, Americanstrengthen the food and agriculture“insular areas” rather than asnecessary through FY2007 for a
Samoa, the Commonwealth of thecurriculum at land grant institutionsstates. Retains “state” definitionnew grant program to strengthen
Northern Marianas, the Trustin the U.S. territories. [Section 761]for the District of Columbia. Theresident instruction at insular
Territory of the Pacific Islands, thechange does not affect thearea land grant schools and
Virgin Islands of the United States,eligibility of land grant institutionsdistance learning programs using
and the District of Columbia asin these areas for formula fundsadvanced technologies. [Section
“states” for the purposes of the Act.under the Hatch Act of 1887 and7503]
[Section 1404 of NARETPA]the Smith-Lever Act of 1914.
[Section 701]Included in Section 7503.

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Creates new authority for $20
million through FY2006 for
competitive or non-competitive
grants to insular institutions to
strengthen distance learning
programs in agriculture using
advanced technologies. Requires
50% matching funds. [Section

775]

2. Requires institutions to matchSets the matching fund requirementSets a 50% matching fundEstablishes the matching fund
federal formula funds for research andat 50% for the U.S. Territoryrequirement through FY2006 forrequirement using the Senate bill
ⁱ^{ki/CRS-RL31704}extension at 50% beginning ininstitutions through 2011 and grantsland grant institutions in insularlanguage. [Section 7213]
^g/wFY2002, and prohibits the Secretarythe Secretary authority to waive theareas, and grants the Secretary
^s^.orfrom waiving the requirement.requirement if a Territory cannotauthority to waive the requirement.
^le^ak[Section 3(d) of the Hatch Act ofmeet the obligation. [Section 749A][Section 776]
^://wiki1887, as amended]
^h^ttpD. 1890 Land Grant Universities
1. Authorizes appropriations of suchContains no provision addressingRaises the minimum amount thatAdopts the Senate provisions
funds as may be necessary forfunding authority for 1890 land grantcan be appropriated for extensionregarding minimum
research programs, and establishes acolleges.programs from 6% to 15% ofappropriations for formula funds
6% minimum (of appropriation forextension formula fundsto support both research and

1862 schools) for extensionappropriated for the 1862 schools.extension at the 1890 schools,

programs. [Section 1444 of[Section 757]with language stating that
NARETPA]Establishes a minimum amount toincreased appropriations for
be appropriated for researchformula-funded programs, not
programs at 25% of the amountredistribution of current levels,
appropriated for the 1862 schools.are the intent. [Section 7203]

[Section 757]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
2. Authorizes $15 m. annuallyExtends authority through FY2011Increases authorization to $25Authorizes such sums as
through FY2002 for grants to upgradewith no changes. [Section 709]million annually through FY2006.necessary through FY2007.
facilities. [Section 1447(b) of[Section 760][Section 7109]
NARETPA]
3. Requires 50% in state funds toRequires an annual 10% increase inRaises the matching fundsRequires an annual 10% increase
match federal formula funds forstate matching funds beginning inrequirement to 60% in FY2003in state matching funds
research and extension. [Section 1449FY2003, to reach 100% in FY2008.and annually in 2004-06 by 110%beginning in FY2003, to reach
of NARETPA]The Secretary may waive theof the previous year’s amount.100% in FY2007. The Secretary
requirement above 50% if a stateThe Secretary may waive themay waive the requirement
cannot meet the obligation. [Sectionrequirement above 50% if a stateabove 50% if a state cannot meet

749]cannot meet the obligation.the obligation. [Section 7212]

ⁱ^{ki/CRS-RL31704}[Section 762]
^g/w
^s^.or
^le^akE. 1994 Institutions (Tribally Controlled Land Grant Institutions)
^://wiki1. Authorizes annual appropriation ofRemoves authority forAuthorizes the appropriation of Adopts the Senate provision and
^h^ttp$4.6 m. in FY1996-2002 for anappropriations to an endowmentsuch sums as necessary throughextends endowment fund
endowment fund. [Section 533 offund and authorizes appropriationsFY2006 for the endowment fund.through FY2007. [Section 7128]
Equity in Educational Land Grantof such sums as are necessary in[Section 755(c)]
Status Act of 1994]FY1996(sic)-2011. [Section 729]
2. Authorizes $50,000 annualIncreases payment authority toProvision identical to House.Increases payment authority to
payments to each institution. [Section$100,000 annually. [Section 741(a)][Section 755(e)]$100,000 annually. [Section

534 of 1994 Act]7201(a)]

3. Bases withdrawals andBases withdrawals and expendituresProvision identical to HouseAdopts the Senate language that
expenditures from the endowmenton a formula using an Indian student(slightly different language).changes the authority under
fund on a formula using an Indiancount as defined in the Tribally[Section 755(d)]which 1994 Institutions make
student count as defined in the CarlControlled College or Universitywithdrawals and expenditures
D. Perkins Vocational and AppliedAssistance Act of 1978. [Sectionfrom the endowment fund.
Technology Education Act. [Section741(b)][Section 7201(b)]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
533(c)(4)(A) of 1994 Act]NOTE: Makes student count
mechanism more flexible and
clarifies calculation of full-time
Indian students. Previous calculation
was designed for two specific tribal
colleges under the Carl Perkins Act,
and the new one is designed for 24
of the now 31 tribal colleges under
the 1978 Act.
4. Authorizes $5 m. annualAuthorizes such sums as areAuthorizes such sums as areAuthorizes such sums as
appropriations for extension programsnecessary through FY2011. [Sectionnecessary and directs the Secretarynecessary through FY2007 and
ⁱ^{ki/CRS-RL31704}and contains formula for distribution753]to develop a new distributionallows funding to carry over till
^g/wof funds. [Section 3(b) of Smith-Leverformula. [Section 754]expended. [Section 7215]
^s^.orAct of 1914]
^le^ak
^://wiki5. Excludes 1994 Institutions fromAdds the 1994 Institutions to theNo comparable provision toAdopts the Senate provision and
^h^ttpeligibility for formula funds under thedefinition of colleges andHouse, but makes the 1994authorizes it through FY2007.
Hatch Act of 1887 and the Smith-universities eligible to receive HatchInstitutions eligible to compete for[Section 7209]
Lever Act of 1814. [Section 533(a)(2)and Smith-Lever Act funds forgrants for integrated research and
of 1994 Act] research and extension programs.extension projects under Section
[Section 742]406 (b) of the 1998 research
reform act. [Section 756]
F. Priority Research Areas
1. Authorizes a competitive grantsAdds wind erosion, crop loss, landAdds animal infectious diseases,Combines priority areas from
program to support research anduse management, water and airchildhood obesity, integrated pestHouse and Senate bills; adds
extension programs on 24 specifiedquality, revenue insurance,management, beef cattle genetics,sugarcane genetics as a priority
topics. [Section 1672 of the Food,agrotourism, fruit and vegetableand development of publicly heldarea, and amends the AgrAbility
Agriculture, Conservation, and Tradeharvesting, nitrogen fixation,plant and animal varieties to theprogram to encourage the

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
Act of 1990]marketing, private lands research,list of priority research areas.awarding of grants to applicant
livestock disease threats, and plantAuthorizes $100,000 annually forinstitutions that have not
gene expression to the list of priorityhigh priority research on reducingreceived them previously.
research areas. [Section 744(b)]hazards from dairy pipeline[Section 7208]
cleaners. [Section 734]
2. Authorizes agricultural genomeAdds plant pathogens to researchMakes no change to existing law.Adopts House language as part
research. [Section 1671(b) of the 1990subjects under the Agriculturalof the above provision on
Act] Genome Initiative. [Section 744]priority research areas. [Section

7208]

3. Authorizes competitive grants forContains no provision addressingReauthorizes and expands theAuthorizes through FY2007 the
ⁱ^{ki/CRS-RL31704}research and extension programs onexisting authority.research focus for organicannual transfer to USDA of $3
^g/worganic agriculture. [Section 1672B ofagriculture to include genomicsmillion in mandatory funds
^s^.orthe 1990 Act]research, improvement of publicly(above whatever funds may be
^le^akheld crop and livestock varieties,appropriated) for research on
^://wikimarketing research, and on-farmresearch. [Section 736]organic agriculture, includinggenetic, on-farm, and social
^h^ttpscience research. [Section 7218]
4. Authorizes research and extensionExtends authority through FY2011.Extends authority through FY2006Combines the House and Senate
programs on precision agriculture.[Section 730]and adds emphasis on horticulture,provisions and extends authority
[Section 403 of the 1998 Act]mechanization, robotics, andthrough FY2007. [Sections 7129
energy use efficiency. [Sectionand 7207]

743]

5. Authorizes selected high-priorityContains no provision addressingAdds bovine Johne’s diseaseEstablishes a research program
research areas. [Title IV of the 1998existing authority.control and grants for youthon bovine Johne’s disease
Act]organizations to high-priority[Section 7207]; and authorizes a
subjects under the 1998 Act.one-time transfer of $8 million in
[Sections 748 and 749]CCC mandatory funds in
FY2002, and appropriation of
such sums as necessary in

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
FY2003-07, for grants to Girl
Scout, Boy Scout, 4-H, and FFA
organizations to expand
programs in rural areas and small
towns. [Section 7412]
G. International Research

1. Authorizes cooperativeAuthorizes placement of agricultureContains no provision addressingAdopts the House provision.

international research, extension, andstudents at U.S. colleges andexisting authority.[Section 7209]
teaching programs. [Section 1458 ofuniversities at USDA Foreign
ⁱ^{ki/CRS-RL31704}NARETPA]Agricultural Service field offices
^g/woverseas. [Section 745(c)]
^s^.or
^le^akH. Biotechnology
^://wiki1. Authorizes USDA to withhold 1%Increases withholding to 3% andIncreases withholding to 3% andIncreases withholding to 2% and
^h^ttpof biotechnology research funding toadds authority to study thedirects the Secretary to giveadds genetically modified
support risk assessment research onenvironmental effects ofpriority in awarding biotechnologyorganisms and international
bioengineered organisms. [Sectionbiotechnology and develop a long-risk assessment grants topartnerships on bio-safety as
1668 of 1990 Act]term policy for introduction.applicants who take anpriority topics for risk
[Section 747]interdisciplinary approach thatassessment research. [Section
includes environmental, biosafety,7210]
and nutritional aspects. [Section

732]

I. Research Facilities

1. Provides general authority forMakes no change to existing law.Adds new authority to SectionMakes no change to existing law.

federal funds to construct or1417 of the 1977 Act for
modernize research facilities atcompetitive grants to land grant
colleges and universities. [Researchschools and Hispanic-serving
Facilities Act of 1963]schools for construction or

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
modernization of research
facilities. Preference would be
given to proposals offering
matching funds. [Section 704]
2. Protecting agriculture facilities.Creates new authority to assess civilContains a similar provision, withNo provision in this law, but a
[No existing authority]penalties against anyone whostronger penalties and greaterlanguage similar to the House
damages or disrupts an animal oremphasis on bioterrorism. [Sectionprovision is contained in the
agricultural enterprise, research1058]conference report (H.Rept. 107-
facility, or other agricultural or481) on H.R. 3448, the
biomedical facility. Also authorizesBioterrorism Preparedness Act
recovery of economic damage andof 2001.
ⁱ^{ki/CRS-RL31704}establishes a fund to compensate the
^g/wvictims of such attacks. [Section
^s^.or 790]
^le^ak
^://wiki3. Competitive grants for purchasinglab equipment. [No existingNo comparable provision.Creates new authority for $250million over 5 years forAdopts the Senate provision andauthorizes the appropriation of
^h^ttpauthority]competitive grants to land grantsuch sums as necessary through
and non-land grant schools forFY2007. [Section 7402]
purchasing specialized scientific
equipment. [Section 715]
J. Competitive Research Grants Administration
1. Reimbursement for indirect costsMakes no change to existing law.Permits institutions awarded aAdopts the Senate provision with
associated with competitive grants iscompetitive grant to receivean amendment to exempt grants
limited to 19% of the total grant.reimbursement for indirect costsawarded competitively under the
[Section 1462 of NARETPA] (excluding equipment costs) at aSmall Business Innovation
percentage established by theResearch program. [Section
granting agency’s audit agency.7222]

[Section 714]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007

2. Competitive grants are disbursedMakes no change to existing law.Makes funds appropriated forAdopts the Senate provision.

in the year in which the funds arecompetitive grants available for[Section 7217]
appropriated. [Section 1467 ofobligation over a 2-year period.
NARETPA][Section 718]
3. Joint requests for proposals. [NoNo comparable provision.Adds authority for the Secretary toProvides authority for USDA to
existing authority]transfer grant funds to or receiveissue joint requests for proposals
grant funds from other federalwith other federal agencies and
research agencies in order toto establish joint peer review
facilitate joint research andpanels, but not to transfer funds
eliminate duplication. [Sectionbetween federal agencies or to
719]negotiate indirect cost recovery
ⁱ^{ki/CRS-RL31704}rates for grants awarded.
^g/w[Section 7403]
^s^.or
^le^akK. Biosecurity
^://wiki1. Agriculture InfrastructureNo comparable provision.Adds a new biosecurity subtitle toAuthorizes the appropriation of
^h^ttpSecurity. [No existing authority]NARETPA to establish a fund tosuch sums as necessary for a
protect ARS, Forest Service,competitive grants program to
APHIS, and other federal facilitiesconstruct and upgrade the
related to the safety of crops,security of facilities conducting
livestock, and food. Establishes ancounterterrorism research at
advisory board on the use of thepublic colleges and universities.
fund. [Section 723, Chapter 1][Section 7221]
2. Biosecurity Planning andAmends the 1990 farm act to listNew subtitle authorizes such sumsAuthorizes the appropriation of
Response. [General authority existsresearch on technology to protectas necessary for research onsuch sums as necessary for
for high priority research andagriculture (including livestock) andcounterbioterrorism. Authorizesresearch and extension activities
extension initiatives under Sectionthe food supply from bioterrorism$100 million annually in FY2003-to improve bioterrorism
1672(e) of the 1990 Act]and naturally occurring threats as a05 for construction or renovationprevention, preparedness, and
high priority research topic. [Sectionof bioterrorism research facilities.response. [Section 7221]

744]Expresses sense of Congress that

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
funding for USDA agencies with
biosecurity responsibilities should
be increased as necessary.
[Section 723, Chapter 2]
L. Research related to Rural and Beginning Farmers

1. Risk management education.No comparable provision.Creates a competitive grantNo provision.

[Section 524(a)(3) of the Federalprogram to be administered by
Crop Insurance Act]CSREES to enhance land grant
and non-land grant education
programs on risk management for
ⁱ^{ki/CRS-RL31704}beginning farmers. [Section 785]
^g/w
^s^.or2. Research on rural issues. [SectionNo comparable provision.Adds an emphasis on ruralNo provision.
^le^ak1417 of NARETPA]economic, community, and
business research to existing rural
^://wikiresearch authority. [Section 703]
^h^ttp
3. Technology transfer for ruralNo comparable provision.Establishes a joint ARS- RuralNo provision; conference report
development. [No existing authority]Business-Cooperative Servicelanguage states that the
program to make ARS and RBCSManagers expect RBCS to
rural development technologiespromote technology transfer to
available to rural areas morerural businesses in cooperation
quickly. [Section 795]with ARS, the Forest Service,
and other USDA agencies.
4. Rural electronic commerceNo comparable provision.Authorizes $60 million annuallyAdopts the Senate provision
development program. [No existingin FY2002-06 for an extension(FY2003-07). [Section 6202]

authority]program to help small businesses
in rural areas adopt electronic
commerce business practices and
technologies. [Section 733]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
5. Beginning farmer and rancherNo comparable provision.Creates a competitive grantAdopts the Senate provision and
education. [No existing authority]program to help local and regionalauthorizes $15 million annually
education, training, outreach, andthrough FY2007 in mandatory
technical assistance organizationsmoney (but subject to
assist beginning farmers andappropriation). [Section 7405]
ranchers. Authorizes $15 m.
annually through FY2006 to be
transferred from the U.S. Treasury
to support the program. [Section

796]

6. Rural research fund. [No existingNo comparable provision.Establishes a Rural Research FundNo provision.

ⁱ^{ki/CRS-RL31704}authority]account within USDA, funded by
^g/w$60 million transferred from the
^s^.orU.S. Treasury over 4 years, to
^le^aksupport competitive research
^://wikigrants on rural public policy.
^h^ttp[Section 798]
7. Alternative Agriculture ResearchExtends authority for appropriationsTitle VI (Rural Development) ofRepeals the authority for
and Commercialization Revolvingthrough 2011.the Senate-passed H.R. 2646AARCC; any remaining funds
Fund. [Section 1664(g)(1) of 1990contains a provision to repeal theare to cover the cost of closing
Act]authority for the Alternativethe program and then revert to
Agricultural Research andthe U.S. Treasury. [Section
Commercialization Corporation6201]

(AARCC) and transfer its funds to
USDA to be used for research on
future food production,
environmental protection, and farm
income. [Section 651]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
M. Miscellaneous Research Provisions

1. National Agricultural Research,Adds to the advisory board oneExtends authority for advisoryAdopts the House provision.

Extension, Education, and Economicmember from a non-land grantboard with no changes.[Section 7209]
Advisory Board. [Section 1408 ofinstitution, and requires the Board to
NARETPA]consult with the House and Senate
Agriculture and Appropriations
Committees. [Section 745]
2. ARS review. [First authorized inNo comparable provision.Reauthorizes an outside review ofAdopts the Senate provision and
1998 Act]the purpose, efficiency, andadds authority for a task force to
effectiveness of ARS research.study and report to Congress
ⁱ^{ki/CRS-RL31704}[Section 794]whether the structure of federal
^g/wNOTE: S.Rept. 107-117 indicatesagricultural research should be
^s^.orthat the earlier review was notmodeled after the National
^le^akcarried out according to the intentInstitutes of Health and the
^://wikiof the original language.National Science Foundation.[Section 7404]
^h^ttp

2. Senior Scientific ResearchNo comparable provision.Establishes a 100-member SeniorAdopts Senate provision.

Service. [No existing authority]Scientific Research Service[Section 7219]
comprised of highly qualified
scientists. Minimum GS-15
salary. [Section 750B]

3. Regulatory and inspectionNo comparable provision.Authorizes the Secretary toNo provision.

research. [No specific authority existsconduct urgent applied research to
for this type of research, but suchsupport the regulatory programs of
work currently is conducted underAMS, APHIS, FSIS, and FGIS.
general authority found in[Section 792]
NARETPA]

RESEARCH HOUSE BILLSENATE BILLNEW LAW
OLD LAW/POLICYH.R. 2646S. 1731, amended P.L.107-171
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006COVERS 2002-2007
4. Repeal of certain activities and
authorities.
[Sections 615(b) and (c) of the 1998Food safety research nationalNo comparable provision.Adopts House provision.
Act] conference and report. [Section 771][Section 7301]
[Section 617 of the 1998 Act]Reimbursement of expenses underNo comparable provision.Adopts the House provision.
the Sheep Promotion, Research, and[Section 7302]
Information Act of 1994. [Section

772]

[Section 1634 of the 1990 Act]National Genetic ResourcesExtends program through FY2006.Adopts Senate provision through
ⁱ^{ki/CRS-RL31704}Program. [Section 773][Section 731]FY2007. [Section 7118]
^g/w
^s^.or
^le^ak[Sections 1639 and 1640 of the 1990National Advisory Board onNo comparable provision.Adopts the House provision.
Act]Agricultural Weather. [Section 774][Section 7304]
^://wiki
^h^ttp[Section 1420 of the 1985 Act]Agricultural information exchangeNo comparable provision. Adopts the House provision.
with Ireland. [Section 775][Section 7305]
[Section 1437 of the 1985 Act]Pesticide resistance study. [SectionNo comparable provision.Adopts House provision.

776][Section 7306]

[Section 1438 of the 1985 Act]Expansion of education study.No comparable provision.Adopts House provision.
[Section 777][Section 7307]
[Sections 1412 and 1413(c) ofSupport for advisory board. [SectionNo comparable provision.No provision.
NARETPA]778]
No comparable provision.Adopts the House provision.
[Research Facilities Act of 1963]Task force on 10-year strategic plan[Section 7308]

for agricultural research facilities.
[Section 779]

VIII. FORESTRY
RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
, provisions of the
orestry Assistance ActTitle VIII - Forestry InitiativesTitle VIII - ForestryTitle VIII - Forestry
AA), P.L. 95-313
orest Landowner Assistance
Incentives Program (FIP)1. Repeals FIP. [Section 801]1. Reauthorizes FIP through 2006.1. House Provision. [Section
des cost-sharing for tree plantingNOTE:FIP expires at the end of[Section 804]8001]
other forest improvement practices.FY2002. The repeal in the House bill
ⁱ^{ki/CRS-RL31704}is not needed to effectively end the
^g/w program.
^s^.or
^le^akardship Incentives Program2. Repeals SIP. [Section 801]2. No provision.2. House Provision [Section
^://wikiP) provides cost-sharing for a wide of forestry practices. [Section 6,NOTE: SIP is permanentlyauthorized, and requires no8001]
^h^ttp reauthorization
3. Establishes new Forest Land3. Establishes new SustainableGenerally follows House
Enhancement Program (FLEP) toForest Management Program toprovision establishing new Forest
supplant FIP and SIP, with cost-supplement FIP and SIP, with cost-Land enhancement Program to
sharing for the same practices (andsharing for additional practices andsupplant FIP and SIP, with cost-
more) and $20 million annually in$48 million annually in mandatorysharing for the same practices
mandatory spending. [Section 802]spending. (Section 806)(and More) and $100 million in
NOTE: The House bill replacesNOTE: The Senate Bill adds tomandatory spending through
former programs with this newexisting programs.FY2007. [Section 8002]
program

4. No provision.4. Establishes new Sustainable4. No provision

Forestry Cooperative Program to

RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
assist landowners in creating
cooperatives for sustainable forest
management. (Section 805)
ban and Community Forestry Initiative
isting financial andNo provision.Creates new Suburban andNo provision
rams to urbanCommunity Forestry and Open
eas, communities, and privateSpace Initiative, to conserve private
t organizations are permanentlyforest land and working forests in
ed in Section 9 of CFAA, andsuburbs and help control urban
ed in the House and Senatesprawl, through 50% cost share
ⁱ^{ki/CRS-RL31704}grants to states and nonprofits.
^g/wAuthorized at $50 million for
^s^.orFY2003, as needed thereafter.
^le^ak(Section 813)
^://wikied Forestry
^h^ttp
existing forestry assistance1. No provision.1. Creates new Watershed Forestry1. No provision
rams include activities to protectAssistance Program, for cost-
cuses onsharing by states for forest practices
to protect and enhance water
quality, authorized at $20 million
annually. (Section 812)

2. No provision.2. No provision

2. Creates new Chesapeake Bay
Watershed Forestry Program to use
forest management to improve
wildlife habitat, water quality,
watershed planning, et al., with up
to 75% cost-share grants;
authorized at $3 million for FY2002

RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
and $3.5 million for FY2003-
FY2006. (Section 810)
ire Protection
isting financial and Creates new Enhanced Community1. Similar to H.R. 2646. (Section1. Generally follows House
cal assistance programs to statesFire Protection program to inform and811)provision, creating new Enhanced
fire departments areassist landowners in wildfireCommunity Fire Protection
tly authorized in Section 10 ofprotection; authorized at $35 millionprogram, authorized at $35
AA, and are unchanged in the Houseannually. Appears to allow federalmillion annually; appears to allow
nate bills. Fire research isactivities on private lands (Sectionfederal activity on private lands
ⁱ^{ki/CRS-RL31704}thorized under the Forest and804)[Section 8003]
^g/weland Renewable Resources
^s^.or. 95-307), and 3 fire
^le^akers already exist.)2. No provision.2. Authorizes creation of 2 forest2. No provision
^://wikifire research centers. (Section 808)
^h^ttp3. Authorizes new hazardous fuel3. Authorizes new hazardous fuel3. No provision
reduction grants of $5-10 per ton ofreduction grants of $5-10 per ton to(both provisions dropped in
hazardous fuel removed from forestsoperators of facilities that produceconference)

to operators of facilities that produceenergy from hazardous fuel
energy from biomass, withremoved from forests, or to persons
monitoring of grant recipients and ofto use or increase value of
treatment effects (the latter beinghazardous fuels; grant allocation
limited to federal lands), authorized atbased on minimizing environmental
$50 million annually. (Section 921,effects and maximizing community
in Title IX)benefits, with monitoring of grant
recipients, and of environmental
and employment effects.
Authorized at $50 million annually.
(Section 809)

RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006

4. No provision.4. Requires independent4. No provision.

investigation of firefighter fatalities
by USDA Inspector General.
(Section 820)
orest Health Protection
isting forest health1. No provision.1. Authorizes new research,1. No provision
tion program authorizes insectmonitoring, and treatment program
survey and control onfor Sudden Oak Death Syndrome,
deral lands and with consent,with an advisory committee to
participation, on otheroversee implementation; authorized
ⁱ^{ki/CRS-RL31704}nds. This is permanently authorized inat $14.25 million annually, with
^g/wn 8 of CFAA, and is unchangedallocation among activities
^s^.or House and Senate bills.)specified. (Section 819)
^le^ak
^://wiki2. No provision.2. Authorizes new program ofAdaptive Ecosystem Restoration of2. No provision
^h^ttpArizona and New Mexico Forests
and Woodlands, to improve
ecological health and reduce threats
to forests while encouraging
collaboration, by creating two
ecological institutes, requiring
federal cooperation, and monitoring
results; annual authorization is $10
million. (Section 821)
Forestry Research
restry research at land grantReaffirms the importance of forestryIdentical to House version. (SectionHouse bill [Section 8201]

iversities is authorized under theresearch under McIntire-Stennis.802)
ntire-Stennis Act of 1962 (P.L. 87-(Section 807)

RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
orest Service researchNote: Incorrectly cites the public law
authorized under the Forest andnumber as P.L.87-88.
angeland Renewable Resources
. 95-307.)
ewable Resources (RREA)
tensionReauthorizes RREA, doublesHouse and Senate provisions areGenerally follows House bill,
. 95-306) authorizesauthorized funding to $30 millionsimilar, but not identical.reauthorizing RREA, doubling
ional assistance in naturalannually, and establishes newReauthorizes RREA, doublesauthorized funding to $30 million
ement.Sustainable Forestry Outreachauthorized funding to $30 millionannually, and establishing a new
Initiative. (Section 803)annually, and establishes newSustainable Forestry Outreach
ⁱ^{ki/CRS-RL31704}Sustainable Forestry OutreachInitiative. [Section 8101]
^g/wInitiative. (Section 803)
^s^.or
^le^akrnational Forestry
^://wikical forestry assistance to other1. Effectively reauthorizes the1. No provision.1. No provision
^h^ttpmanently authorizedInternational Forestry “ through 2011.
of P.L. 101-513 (Foreign(Section 805)
ervice Office of2. No provision2. Reauthorizes “Office of2. Generally follows Senate bill,
ternational Forestry expires at end ofInternational Forestry” throughreauthorizing the Office of
2002 under Section 2405(d) of the2006. (Section 801)International Forestry through
arm Bill.FY2007. [Section 8102]
orestry

1. No provision.1. Establishes Office of Tribal1. No Provision

Relations to improve
communication between tribal
governments and USDA and Forest
Service. (Section 817)

RESTRYHOUSE BILLSENATE BILLNEW LAW (P.L. 107-171)
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
2. No provision.2. Establishes program for2. No Provision
Assistance to Tribal Governments,
to provide technical, financial,
educational, and related forestry
assistance; authorized funding “as
needed.” (Section 818)
orest Management
ny programs and authorities exist.Authorizes “Long-Term ForestAuthorizes 28 Long-Term ForestNo provision (both bills
broadest authorization is in theStewardship Contracts” for reducingStewardship Contracts for reducingprovisions dropped)

rest and Rangeland Renewablehazardous fuels in the national forestshazardous fuels in the Wildland-
ⁱ^{ki/CRS-RL31704}Planning Act of 1974 (RPA;as part of timber sale contracts (i.e.,Urban Interface in national forests
^g/w. 93-378) as amended by theauthorizes goods-for-servicesas part of timber sale contracts, with
^s^.ortional Forest Management Act ofcontracts, where the Forest Service14 using goods-for-services
^le^akMA; P.L. 94-588).)can use timber to pay for fuelcontracts (where the Forest Service
^://wikitreatment services). (Section 806)can use timber to pay for fueltreatment services) and the other 14
^h^ttpusing separate contracts to collect
woody material and to sell the
timber.[Section 815]

IX. MISCELLANEOUS PROVISIONS
ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
ederal Crop Insurance
ohibition on Continuous CoverageNo provision.Makes permanent the temporaryAdopts Senate provision
Crop Insurance Act, asprohibition on continuous coverage in[Section 10002]

the Agriculture Riskcurrent law. [Section 1012]
ection Act of 2000, requires
rticipating producers in the federalNote: CBO scored an average annual
ram to select asavings of approximately $320
rage level that is a multiple of 5,million beginning in FY2006.
ⁱ^{ki/CRS-RL31704}85% level of crop
^g/weld coverage, for the 2001 through
^s^.orears. [Section 508(e)]
^le^ak
^://wikie” refers to
^h^ttp ability of farmers to select any level
e between 50% of normal
eld and 85% of yield. The reason
are not allowed to choose any
el of coverage and must choose in
ncrements is because the premium
structure is set in law in 5%
crements. The percentage of the
dized by the federal
gher levels of coverage. The
uous coverage prohibition is a
al cost-saving measure that
ts producers who would
choose, for example, a 65%

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
e, from dropping back
64% coverage just to receive the
her subsidy level.
ent ProceduresNo provision.Requires USDA to implement theExtends Senate requirement for
Crop Insurance Act, asreview findings by the 2003 insuranceimplementation of review
ayear. [Section 1013]findings by 2004 insurance year
reviewing the quality lossand allows certain warehouse
operators to make adjustments
e program, and makefor quality for the purposes of
quality loss adjustment. [Section
m)(3)]10003]
ⁱ^{ki/CRS-RL31704}
^g/wonservation RequirementsNo provision.Prohibits farmers from receiving aNo provision
^s^.orm bill (P.L. 99-198)crop insurance indemnity payment
^le^akbits any farmer from receivingwhen the producer grows a crop on
^://wikiments or loansrows a crop onhighly erodible land or a convertedwetland. [Section 1014]
^h^ttpther highly erodible land [Sect. 1211],
[Sect. 1221]
eet PotatoesPermanently includes sweetIdentical to the House provision. Adopts House and Senate
ederal Crop Insurance Actpotatoes as a crop that would be[Section 1011]provision [Section 10001]
bits farmers from receiving cropeligible for indemnity payments
nce indemnity payments once theafter harvest. [Section 928 ]
eaves the field, except for tobacco
[Section 508(a)(2)]
Y2002 agriculture appropriations
. 107-76) allows sweet potatoes
receive indemnity payments after
Y2002 only. [Section 760]
ecialty Crop Insurance InitiativeNo provision.Increases funding for research andAdopts Senate provision (with

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Crop Insurance Act, asdevelopment reimbursements to $32amendments) requiring that
es USDA tomillion in FY2002 (up $22 million);USDA complete a report on
imburse private entities for the cost of$27.5 million for each of FY2003 andspecialty crop insurance and
nd development of new cropFY2004 (up $12.5 million in eachcomplete the study within 180
surance programs. Mandatoryyear); and $25 million for each ofdays. Deletes Senate provisions
of $10 million for each ofFY2005 and FY2006 (up $10 millionthat increased funding for
2001 and 2002, and not more thanin each year). Also increases fundingspecialty crop initiatives, and
million in FY2003 and subsequentfor education and informationadds sense of Congress language
[Section 522(b)]. programs to $10 million in FY2003requiring the USDA to address
t also authorizes USDA to(up $5 million); $13 million inthe needs of producers through
e education andFY2004 (up $8 million); and $15expansion of the federal crop
rams for producers inmillion for each of FY2005 andinsurance pilot programs,
ⁱ^{ki/CRS-RL31704}tes that traditionally have a lowFY2006 (up $10 million in eachincluding revenue insurance for
^g/wrticipation rate in the crop insuranceyear). Georgia pecans and coverage for
^s^.or
^le^akram or are underserved by theTotal 5-year increase for R&Dcontinuous crops of Kansas
ram. Mandatory funding of $5reimbursements is $67 million; totalwheat. [Section 10005]
^://wikin for FY2001 and each4-year increase for education
^h^ttpear is provided. [Sectionprograms is $33 million. The
combined $100 million additional
cost is funded through savings
associated with reducing the payment
limits for farm commodity support
programs. Also requires USDA to
complete a report by September 30,
2002 focusing on progress made by
USDA in the research development of
new risk management programs for
specialty crop growers, small and
moderate-sized farms, and
underserved areas. [Section 169]
ction of Crop InsuranceNo provision.Prohibits the subsidization of anyNo provision

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
ents to Previously Croppedfederal crop insurance policy that
covers a farm commodity that is
planted on land that has not been
farmed for at least 1 of the 5 crop
years prior to 2002, or 3 of the
previous 10 crop years. Requirement
is reduced to 1 of 20 years if the
farmer has used and continues to use
crop rotation practices. [Section

194(c)]

ross Revenue InsuranceNo provision.Requires USDA to continue throughAdopts Senate provision with an
ⁱ^{ki/CRS-RL31704}rogramat least the 2004 insurance year, theamendment that expands the
^g/w Crop Insurance Act, asadjusted gross revenue (AGR)pilot program for the 2003 crop
^s^.ores USDA to conductinsurance pilot program in effect foryear to include at least 8 counties
^le^akrams to evaluate whether athe 2002 crop year. Expands the pilotin California and at least 8
^://wikisk management program isprogram in 2003 to include at least 8counties in Pennsylvania. Also
^h^ttpitable for the marketplace andcounties in the state that produces therequires the USDA to work with
resses the needs of farmers. [Sectionhighest quantity of specialty crops forthe respective state Departments
which AGR insurance is currently notof Agriculture of Pennsylvania
DA currently implements anavailable (i.e, California). Countiesand California to determine
Gross Revenue (AGR) pilotselected by USDA should produce awhich counties are to be
ram which allows a farmer tosignificant quantity of specialty crops.included. [Section 10004]
ge of historical[Section 1079D]
for all crops grown on the farm
her than insuring each crop
parately.
udy on Producer IndemnificationNo provision.Requires the Secretary of AgricultureAdopts Senate provision with an
r Government-Caused Disastersto conduct a study of the feasabilityamendment to clarify that the
e Federal Crop Insurance Act limitsof expanding crop insurance and thestudy must focus on disaster
the crop insurancenoninsured assistance program toconditions caused by Federal

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
ram to drought, flood, or otherfarmers experiencing disasteragency action restricting access
determined by theconditions caused primarily by ato irrigation water, including any
ary). [Section 508(a)(1)]federal agency action. Report to belack of access to an adequate
submitted to the House and Senatesupply of water caused by the
Agriculture Committees within 150failure of the Secretary of
days of enactment. [Section 1085]Interior to fulfill a contract in
accordance with the Central
Valley Project Improvement Act.
[section 10108]
isk Management Education forNo provision.Allows the Secretary, (throughNo Provision
ginning FarmersCSREES,) to establish risk
ⁱ^{ki/CRS-RL31704}ederal Crop Insurance Actmanagement education programs
^g/wablished a “Partnership for Risktargeted to the needs of beginning
^s^.ornagement” program within USDA’sfarmers and ranchers, using existing
^le^akResearch, Educationavailable funds in Section 524 of the
^://wikitension Service (CSREES),Federal Crop Insurance Act. [Section
^h^ttpreby competitive grants are made to785]
ified public and private entities to
about various available
tegies to manage farm financial risk.
ual mandatory funding of $5
uthorized. [Section
a)(3)]
oninsured Assistance
a Grass and Sea OatsSpecifically includes sea grass andNo provision.Adopts the House Provision

1996 farm bill (P.L. 104-624)sea oats as an eligible crop under[Section 10101]

ible for the noninsuredthe noninsured assistance program.
stance program all crops that are not[Section 929]
ible for federal crop insurance

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
e, and certain specific crops.
a)(2)]
mergency Crop Disaster and Income Loss Assistance
Disaster Payments. VariousNo provision.a. Authorizes the Secretary ofNo Provision

ency supplemental acts in recentAgriculture to use $1.8 billion in
ad hoc directCommodity Credit Corporation
yments to crop producers to(CCC) funds for payments to
productionproducers who experienced losses to
natural disasters.the 2001 crop caused by natural
ⁱ^{ki/CRS-RL31704}, the FY2001 agriculturedisasters. Payments are to be made in
^g/wropriations act (P.L. 106-387)the same manner as for 2000 losses.
^s^.orded such sums as are necessary forSecretary has discretion to use some
^le^ak payments for 2000 crop yearof the funds to reimburse farmers for
^://wiki[Section 815] income losses not caused by a naturaldisaster. [Section 191]
^h^ttp
Transfers $50 million from the U.S.
Treasury to USDA to pay salaries and
expenses of administering emergency
crop and livestock programs. [Section

195]

All funds made available for these
programs carry an emergency
designation, and therefore do not
count toward the budget limitations
placed on new farm bill spending.
[Section 197]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Extension of Deadlines for Market
aymentsNo Provisiona. Allows USDA to make paymentsa. Adopts Senate provision and
arious emergency supplementalto persons eligible to receiveextends similar privileges to
laws enacted since 1998 haveassistance under P.L. 107-25 who dideligible producers under all
ments to growers ofnot receive payments or assistanceprevious market loss assistance
cific commodities to compensateprior to October 1, 2001, Specifiesprograms who did not receive
m for low market prices. Mostthat the amount of payment orpayment by the respective
P.L.107-25 provided $5.5assistance cannot exceed that whichdeadline date. [Section 1617]
rket loss assistance with athe person would have been eligible
ment deadlines of September 30,to receive under the law. [Section
ⁱ^{ki/CRS-RL31704} 175]
^g/w
^s^.orpple and Onion Income LossNo Provisionb. Provides $100 million in CCCb. Provides $94 million to apple
^le^akfunds to make payments to applegrowers for 2000 crop year
^://wiki2002 agriculture appropriationsproducers for the loss of marketslosses [Section 10105}
^h^ttp.L.107-76) made $75 millioncuring the 2000 crop year. [SectionAlso provides $10 million as a
ilable exclusively to apple producers193]grant to the state of New York to
2000be used to support current onion
producers in Orange county,
New York who suffered losses to
onion crops during one or more
of the 1996-2000 years. [Section

10106]

ergency Livestock Assistance
Various emergency supplemental actsa. Permanently authorizes livestocka. Requires the Secretary ofa. Adopts House Provision
recent years have authorized ad hocassistance, subject to annualAgriculture to implement a program[Section 10104]

istance for livestock farmers whenappropriations, and at discretion ofto provide feed assistance to livestock
e is damaged orthe Secretary of Agriculture. Suchproducers affected by disasters,

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
stroyed by a natural disasterassistance would include indemnitysubject to annual appropriations. For
ivestock Assistance Program) or topayments for livestock mortalityFY2003 through FY2008, $500
herds when a natural disasterlosses, livestock feed assistance,million is authorized to be
uses widespread livestock mortalitycompensation for sudden increasesappropriated. [Section 168]
ivestock Indemnity Program). in production costs, and other
assistance as deemed appropriate by
the Secretary of Agriculture.
[Section 931]
rams are generally fundedb. No provision.b. Requires the Secretary to use $500b. No provision
h the borrowing authority ofmillion of Commodity Credit
DA’s Commodity CreditCorporation funds to make payments
ⁱ^{ki/CRS-RL31704} wasfor livestock losses in 2001 in a
^g/wanted for calendar year 2000 livestockcounty that has received emergency
^s^.or
^le^akency provisionsdesignation by the President or
within the FY2001 agricultureSecretary after January 1, 2001. Of
^://wikict (P.L. 106-387)this amount, $12 million is for the
^h^ttpAmerican Indian Livestock Program.
All 2001 livestock assistance is to be
administered the same as that
provided for 2000 losses by the
FY2001 agriculture appropriations
act. The CCC funding is given an
emergency designation and therefore
does not count toward the spending
limitations on the 2002 farm bill
[Section 192 and 197]
bs for AfghanistanNo provision.Authorizes a pilot emergency reliefAmends Senate provision to
program to provide live lamb torequire a feasibility report by the
Afghanistan and requires USDA toUSDA on U.S. food aid

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
submit a report by January 1, 2004.programs. [Section 3207 (Trade
[Section 309]title)]
Migrant and Seasonal Farmworker Assistance
. 101-624) gaveNo provision.Increases the authority forEliminates the current law $20
anent authority to the Secretary ofappropriations to $40 million formillion authorization limitation,
riculture to disburse up to $20FY2002 through FY2006. Noeffectively authorizing such a
n in grants (subject to annualauthority for appropriations beyondsums as are necessary, subject to
public agencies orFY2006. [Section 1061]appropriations. [Section 10102]
-exempt organizations that
perience providing emergency
ⁱ^{ki/CRS-RL31704}rvices to low-income migrant and
^g/w[Section 2281]
^s^.ore: To date, one appropriation has
^le^akde to the program, in an
^://wikiency supplemental act in FY1999. 106-31).
^h^ttp
ree Assistance and Caneberries
ree Assistance Program:
mplemented on an ad hoc basis,a. Authorizes a program ofa. Same as House bill, except that ita. Adopts House provision with
ually under temporary authority givenassistance to growers who plantedcontains an authorization foramendment that person may not
ency supplemental actstrees, vines and bushes forappropriations for fiscal years 2002-receive payments on more than
he years. commercial purposes and suffered2006. [Title X, Subtitle D, Section500 acres and adds “lightning” to
ram implemented in 1998losses as a result of a natural1062]the definition of natural disaster.
(P.L.disaster. Assistance would consist[Section 10205]

ree and vineof reimbursement of 75% of the
100% of the cost ofcost of replanting trees lost in
when owners suffer 20% orexcess of 15 % mortality (adjusted
eater loss (adjusted for normalfor normal mortality), or sufficient
lity). seedlings to reestablish the stand.

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
[Title IX, Subtitle A, Sections 901-
902, 904]b. House provision with
Payment limit of $25,000 perb. Payments may not exceedamendment setting payments
ible tree and vine owner. Excludesb. Payments may not exceed$100,000 to each grower or anlimit of $75,000 [Section 10204]
stance to owners earning more than$50,000 for each grower, or anequivalent value in tree seedlings. No
ross annual revenue in theequivalent value in tree seedlings.requirement on amount of gross
x year preceding the year when theNo requirement on amount of grossannual revenue or acreage. [Title X,
See note above]annual revenue, but grower mustSubtitle D, Section 1062]
own 500 acres or less of
commercial trees. [Title IX, Subtitle
A, Section 903(a)]
ⁱ^{ki/CRS-RL31704}Amends the Agricultural MarketingNo provision.Senate Provision [Subtitle G,
^g/weberries Marketing Order:Agreement Act of 1937 to authorizeSection 10601]
^s^.ora marketing order for caneberries
^le^ak(including raspberries, blackberries,
^://wikiand logenberries). Not applicable
^h^ttpto canned and frozen caneberries
unless approved by processors.
Provides for research and market
promotion, including paid
advertising. Imports of caneberries
must comply with the market order
restrictions as domestic caneberries
[Title IX, Section 925]
ous laws and regulations (seeVarious titlesTitle IX - Energy, and other sectionsTitle IX, Energy and other
sections

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
modity Credit Corporation (CCC) Bioenergy Program
ioenergy Program, CCCAnimal fats, agriculturalNo Provision.Program is extended and
y grant payments to ethanol andbyproducts, and oils are added toexpanded. Mandatory spending
pand theirthe list of allowable commodities.Note: S. 1731 expresses the sense ofof up to $150 million is provided
oduction capacity. Payments intended[Section 922]the Congress that the Bioenergyannually for FY2003-2006. CBO
help cover the purchase cost of theProgram should be continued andestimates $204 million total will
forexpanded. In addition, the sectionbe authorized between FY2002
pansion. Allowablestates that expanded ethanol andand FY2003.
mmodities include crops such asbiodiesel production will be needed to[Section 9010]
, corn, soybeans, and wheat, asphase out methyl tertiary butyl ether
l as cellulosic crops such as(MTBE) — a common additive in
ⁱ^{ki/CRS-RL31704}rass and short rotation trees.gasoline that has contaminated
^g/wgroundwater in several states.[Section
^s^.or: This program was scheduled to907] S.Amdt. 2676, and S.Amdt.
^le^akpire at the end of 2002.2678, substitutes, add the House
^://wikilanguage to the Senate bill.
^h^ttp[Sec 921]
able Energy on Conservation Reserve Program (CRP) Lands
Farm Security Act of 1985 createdAmends the Act to allow the use ofAmends the act to allow the use ofSimilar to House Provision
Conservation Reserve Program (16CRP land for wind energyCRP land for wind energy generation[Section 2101]

C. 3830 et. seq.) To assist andgeneration and biomass harvesting(with reduced payments).
e farmers and ranchers tofor energy production (with reduced[Section 212(h)]
nce soil and otherpayments).
[Section 213]
a)(7)(A)]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
mergency Loans to Respond to Sharply Increasing Energy Costs
d Farm and RuralAmends the Act to allow loans inNo provision.No Provision
lopment Act (7 U.S.C. 1969)response to economic emergencies,
emergency loans for naturalwhich are defined to include
sharply increasing energy costs.
[Section 501]
ts to Reduce Hazardous Forest Fuels for Energy Production
AssistanceCreates a new section of the codeSimilar to the House provision, butNo Provision
ct of 1978 (16 U.S.C. 2101 et. seq)which authorizes the Secretary ofamends the Cooperative Forestry
ⁱ^{ki/CRS-RL31704}anciall fire control. ThereAgriculture to provide grants toenergy producers who purchaseAssistance Act to add a section onhazardous fuels reductions instead of
^g/w
^s^.orreductionbiomass that poses a wildfire hazardestablishing a new section of the
^le^akants.[P.L. 95-313]for the production of electric power,code.[Section 809]
useful heat, or transportation fuels.
^://wikiAuthorizes $50 million each fiscal
^h^ttpyear.[Section 921]
ean Energy
he current law, the ConsolidatedGeneral sections amend variousSeveral sections amend various lawsAdds new sections (see below)

rm and Rural Development Actlaws (see below)(see below).CFRDA is amended to
RDA) (7 U.S.C. 1921 et. seq.),add a Subtitle L (3 chapters) on
ere are no provisions for clean energy.“Clean Energy” that establishes
programs on biobased products,
renewable energy and energy
efficiency, and carbon sequestration.
[Section 902]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Biobased Product Development
roducts1. No provisiona. Requires the Secretary ofSimilar to Senate provision but
RDA.Agriculture to publish a list ofproducts are not required to be
biobased products that areenvironmentally preferable,.
environmentally preferable (definedMandatory spending of $1
as a having a reduced effect on humanmillion is provided for each of
health and the environment comparedfiscal years 2002-2007.
with competing products). Federal[Section 9002]
agencies are required to purchase
environmentally preferable biobased
ⁱ^{ki/CRS-RL31704}products, if available. For FY2002
^g/wthrough FY2006, mandatory spending
^s^.oris increased by $2 million per year, to
^le^akremain available until expended.
^://wiki[Section 388B]
^h^ttpNo provision for biorefineries underb. There is no provision forb. Establishes a new grant program toSimilar to Senate provision, but
RDA.biorefineries. However, the billassist in the development andno mandatory spending is
amends the Agricultural Research,construction of biorefineries, definedauthorized [Section 9003]

Extension, Education, and Reformas facilities that convert biomass into
Act of 1988 (7 U.S.C. 7624) tofuels and chemicals. For FY2002
extend authority to provide grantsthrough FY2006, mandatory spending
for pilot projects on biobasedis increased by $15 million per year,
product development. Authority,to remain available until expended.
which expired at the end of[Section 388C]
FY2001, is extended to FY2011.Also, Section 379 of the Act is
[Section 725]amended to give priority to bioenergy
and biochemical projects for
grants.[Section 644]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
No provision for Biodiesel fuelc. No provision.c. Establishes a new program toSimilar to Senate provision, but
RDA.provide grants to nonprofitonly $1 million in annual
organizations that educate fleetmandatory spending is provided
operators and the public about thefor fiscal years 2003-
benefits of biodiesel. For FY20022007.[Section 6013]
through FY2006, $5 million annually
is authorized to remain available until
expended.
[Section 388D]
able Energy Development and Energy Efficiency
ⁱ^{ki/CRS-RL31704}
^g/wFRDA allows loans and loana. Amends Section 30 of the Act toa. Establishes a new program toSimilar to House provision. No
^s^.orarantees for the installation of solarallow loans and loan guarantees forassist farmers, ranchers, and ruralnew budget authority granted.
^le^aky systems.renewable energy systems. No newbusiness ventures in the establishment[Section 6013]
^://wikibudget authority is granted.[Section 606]or expansion of electrical facilitiespowered by renewable energy. For
^h^ttpFY2002 through FY2006, mandatory
spending is increased by $16 million,
to remain available until expended.
[Section 388E]
y audits underb. No provisionb. Establishes a new program toSimilar to Senate provision,
RDA.provide grants to entities that assistexcept that no mandatory
farmers, ranchers, and rural smallspending authorized.
businesses in performing audits to[Section 9005]

identify potential for improving
energy efficiency and developing
renewable energy. For FY2002
through FY2006, mandatory spending
is increased by $15 annually, to

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
remain available until expended.
[Section 388F]
gy systemsc. No provision.c. Establishes new a system of grantsSimilar to Senate except that
RDA.and loans to farmers, ranchers, andenergy efficiency improvements
rural small businesses for thealso are eligible, and the
purchase of renewable energySecretary of Agriculture is given
systems. Recipients must have salesauthority to define a “small
less than $1 million per year. Forbusiness” and $23 million in
FY2002 through FY2006, mandatorymandatory spending is provided
spending is increased by $33 millionannually for fiscal years 2003-
per year, to remain available until2007. [Section 9006]
ⁱ^{ki/CRS-RL31704} ex pended.
^g/w[Section 388G]
^s^.or
^le^akdrogen and fueld. No provision.d. Establishes a new grant programd. Requires the Departments of
^://wikiRDA.for cooperative research on hydrogenand fuel cell technologies for use inAgriculture and Energy tocooperate on research into farm
^h^ttpfarm, ranch, and rural applications.and rural applications of
For FY2002 through FY2006,hydrogen fuel and fuel cell
mandatory spending is increased bytechnologies. No new budget
$5 million annually, to remainauthority or funding is provided
available until expended. [Sectionfor this. [Section 9007]

388H]

sion for technical assistancee. Amends the Food Security Acte. Establishes a new programe. No Provision

ergy development underof 1985 (16 U.S.C. 3839aa) toproviding technical assistance for
RDA.allow the Secretary to providefarmers and ranchers to develop
education and technical assistancerenewable energy resources. The
to farmers and ranchers to developSecretary may retain up to 4% of the
and market renewable energyfunds in the above areas to assist
resources. No new budget authorityfarmers and ranchers in developing
is created.and marketing renewable energy.

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
[Section 942][Section 388I]
on Sequestration Research, Development and Demonstration Program
No provision for carbona. Amends the Agricultural Riska. Authorizes new funding for basica. Similar to House provision
RDA.Protection Act of 2000 (P.L. 106-and applied carbon sequestrationexcept authorization is through
rams including224, Section 211) to extend theresearch, conducted either by the2007. No new mandatory
eneral research authority provideauthorization of the Carbon CycleSecretary of Agriculture, or by otherfunding is provided. [Section
similar research.Research Program, which providesentities funded through competitive9009]
grants to land grant universities forgrants. The research goals include the
carbon cycle research.study of net sequestration of carbon
Authorization is extended throughby soils and plants, and the net
ⁱ^{ki/CRS-RL31704}2011 (originally a one-timegreenhouse gas emissions from
^g/wauthorization of $15 million).agriculture. $25 million is authorized
^s^.or[Section 751]annually for FY2002 through
^le^akFY2006. S.Amdt. 2546 added state
^://wikiforestry agencies to the list of eligibleentities.
^h^ttp[Section 388J]
tion Projects.
b. No provision.b. Authorizes projects, administeredb. No provision

by the Secretary, to demonstrate the
ability to monitor and verify carbon
sequestration, and to educate farmers
and ranchers about the economic and
environmental benefits of
conservation practices that increase
sequestration. $10 million is
authorized each year for FY2002
through FY2006.
[Section 388K]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
ass Research and Development
he Biomass Research andExtends authority for the programAmends the Act to provide forSimilar to Senate version except
esthrough FY2011; adds animaladditional funding of $15 millionauthority is through FY2007 and
for R&D projectsbyproducts to the definition ofeach year for FY2002 throughmandatory funding is set at $5
fuels and other biobased“biomass”; and adds a livestockFY2006, to remain available untilmillion for FY2002 and $14
edtrade association representative toexpended. Program authority ismillion annually thereafter
the Secretaries of Agriculture andthe Technical Advisory Board.extended by one year, to Septemberthrough FY2007. Additional $49
gy. $49 million per year isAuthorized appropriations will30, 2006.[Section 903]million annually in discretionary
horized for FY2002 throughincrease from zero to $49 million in(Note: Congress provided $15 millionfunding is also authorized for

2005. The authority for the programeach of FY2006 through FY2011.for this initiative in FY2002. TotalFY2002-2007. [Section 9008]

ⁱ^{ki/CRS-RL31704}pires December 31, 2005.[Section 746]funding would remain at $15 million
^g/wper year, but would be mandatory.)
^s^.or
^le^ak
^://wikiable Energy Projects
^h^ttpAmends the Act to allow loanAmends the Act to establish a loanNo provision

thorizes the Rural Utilities Service,guarantees for the purchase ofand grant program for renewable
torenewable energy systems byenergy projects at rural electric
te electric generatingfarmers, ranchers and rural smallutilities and cooperatives. Grants
cilities, wholesale transmissionbusinesses. [Section 605]may cover up to 75% of an economic
and local distribution lines.feasibility study or for technical
e Secretary of Agriculture isassistance on a project. Loans, at 4%
ed to provide loans and grantsinterest, may be used to cover a
electricity supply in ruralpercentage (to be determined by the
urrently, there are noSecretary) of the project cost. For
y.FY2002 through FY2006, $9 million
per year in mandatory spending is
provided, to remain available until
expended. [Section 904]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Demonstration Program
ricultural Research, Extension,No provision.Amends the Act (adding Section 409)No provision
of 1998to authorize $20 million each year for
n the TreasuryFY2002 through FY2006 to establish
be used by the Secretary ofprojects that can show demonstrable
riculture for matching grants toreductions in net greenhouse gas
tical emerging agriculturalemissions or increases in carbon
[P.L. 105-185]sequestration by soils and
forests.[Section 905]
ⁱ^{ki/CRS-RL31704}
^g/wdatory Spending Increases for Energy Provisions
^s^.or
^le^akNone.$110 million/year; $550 million total$405 million total for FY2002-
(CBO estimate)2007 (CBO estimate)
^://wiki
^h^ttpti-trust and Competition
petition Task Force and
SA Resources. Directs the Secretary of AgricultureNo provisiona. No Provision

teragency Task Force onto set up an Interagency Task Force(NOTE: An earlier version of the
cultural Competition.on Agricultural CompetitionSenate farm bill (S. 1628) contained a
comprised of nine employees fromCompetition title that was struck
USDA and the Department ofduring committee markup.)
Justice. The Task Force is directed
to conduct hearings into
competition issues in agriculture
and submit a report on findings and
recommendations for administrative
and legislative action. [Section 937]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
IPSA Staffing. No provisionb. Authorizes appropriations tob. No provisionb. No Provision
enhance the capability of the Grain
Inspection, Packers and Stockyards
Administration (GIPSA) to review
competition in the meatpacking
industry and hire litigation
attorneys. [Section 938]
acker Concentration
Section 202 of the Packers anda. No provisiona. Prohibits packers from owning,a. No Provision
feeding, or controlling livestock (to
the extent that the producer no longer
ⁱ^{ki/CRS-RL31704}is “materially participating in the
^g/wproduction of livestock) for more than
^s^.or14 days prior to slaughter. Exempts
^le^akcooperatives or entities owned by a
^://wikicooperatives and small (less than 2%
^h^ttpof livestock slaughtered) producer
packers owned by producers from this
prohibition. Requires packers who
own, feed or control livestock on the
date of enactment to be in compliance
within 18 months for hog packers and

180 days for all other livestock (e.g.,

cattle, sheep horses, mules and goats)
intended for slaughter. [Section 1043]
Note: adopted during Senate floor
debate.
IPSA and Livestock ProductionNo Provisionb. Extends GIPSA authority tob. Senate provisions amended to
tract (Sections 202,203, 204, 205 include livestock productioninclude only swine production
contracts. [Section 1044]contracts. [Section 10502]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
ently GIPSA protects broiler
rmers growing under contract and
stock producers selling directly to
no authority over livestock
rowing under contract.
.( Packers andNo provisionc. Adds a new section 413A toc. No Provision
Packers and Stockyards Act that
removes mandatory arbitration
clauses from livestock contracts and
allows for dispute settlement through
other legal means in addition to
ⁱ^{ki/CRS-RL31704}arbitration. [Section 1046]
^g/w(Note: Offered as a floor amendment
^s^.or
^le^akby Senators Feingold, Grassley, and
Harkin and adopted)
^://wiki
^h^ttpntiality Clauses (PackersNo Provisiond. Amends PSA to add new sectiond. Senate provision amended to
)417 that allows contract producers toapply provision to contracts
discuss contracts with advisors andentered into, amended, renewed,
enforcement agencies even if theor extended after enactment of
contract contains a confidentialitythis Act. [Section 10503]
agreement. [Section 1044]
NIMAL WELFARE (Subtitle D)
al Transport, Inspection and Health
initions under the Animal
rotection Act
nt animal health-related statutesNo ProvisionsAdds new definitions for: animal,Senate Provisions [Section
ne ‘animal’, ‘interstate’, Secretary,article, disease, enter, export, facility,10403]

d States’ [Animal Healthimport, Indian Tribe, interstate

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
. commerce, livestock, means of
conveyance, move, pest, and State.
[Sec. 1023].
[Note: Similar definitions are found
in 7USC§7702 from the Plant
Protection Act, P.L. 106-224, §403 ,

114 STAT 438-440.]

ailing Poultry and OtherNo provisionRemoves expiration date on surchargeSenate provision amended to
alsauthority. [Section 1060]include honeybees. [Section
the FY2002 Agricultural10501]
ⁱ^{ki/CRS-RL31704}P.L. 107-67)
^g/whorized the Postal Service to (1)
^s^.orre airlines to accept certain
^le^ak day-old chicks) as
^://wikiail, and (2) assess a surcharge to
^h^ttp
animals. The surcharge
expires June 30, 2002.
al Movement
Importation. Authorizes theNo Provisions.a. Consolidates current authorities ona. Senate provisions [Section
esident to suspend animalanimal importation. Among other10404]

tions to protect U.S. animalsthings, authorizes the Secretary to
ctious contagious animalprohibit or regulate the importation of
any animal, transport vehicles or
ves the Secretary a variety offacilities if this is needed to prevent
thorities to prevent the disseminationentry or dissemination of a pest or
disease into the United States ((21disease into the United States.
SC §102, §103, and (§§105 andApplies similar restrictions to animals

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
that have strayed into the United
States, and permits the Secretary to
order the destruction, disinfection or
removal of animals and other
property to prevent disease [Section

1024].

[Note: Similar authorities are found
7USC §7714 for Plant Protection
Authorities.]
Exportation. Authorizes theb. No provisions.b. Gives Secretary new authority tob. Senate Provisions [Section
ⁱ^{ki/CRS-RL31704} to adopt measures and issuerecover costs from owners for failures10405]
^g/wgulations to prevent the exportation ofto comply and to regulate exportation.
^s^.or
^le^akpoultry (21 USCConsolidates and keeps current
authorities. [Section 1025].
^://wiki
^h^ttp
terstate Movement. Broadlyc. No Provisions.c. Consolidates current authorities.c. Senate Provisions [Section
horizes the Secretary to regulate and[Section 1026].10406]
rantined livestock and poultry
United States. (21
Animal Enterprise Terrorism d. No provisiond. New provision making it unlawfuld. No provision

for a person to travel in interstate or
foreign commerce or use or cause to
be used the mail or any facility for
the purpose of causing physical
disruption of the functioning on an

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
animal enterprise, or to intentionally
damage or cause loss of property used
by an animal enterprise. Establishes
penalties for such violations. [Section

1058]

Seizure, Quarantine, and Disposal.
a. Adds new authorities allowing thea. Senate Proposal [Section
everal sections of Title 21 give theNo Provisions.Secretary to ‘hold’, ‘treat’ or10407]
cretary broad authorities to prevent‘destroy’ animals, articles and means
e spread of contagious infectiousof conveyance (from imports or in
ⁱ^{ki/CRS-RL31704}seases within the United States. (seeinterstate commerce), if these are
^g/wC§§ 111, 113, 123, 134(a) andaffected by or have been exposed to a
^s^.or. pest or a disease and in connections to
^le^akan extraordinary emergency. Current
^://wikiemergency authorities to seize,
^h^ttpquarantine, and dispose of animals or
regulated items are consolidated and
kept. [Section 1027].
b. No Provisions.b. Makes final compensation paymentb. Senate provisions [Section
not subject to judicial review (Section10407(d)(2)(C)]

1027).

[Note: similar language is found in
7USC§7715 for Plant Protection
Authorities.]
c. Gives new authorities to the
nspection, Seizures, and Warrants.No provisions.Secretary to stop and inspect, onc. Senate Provisions [Section
horizes the Secretary to inspect,probable cause, persons or means of10408]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
a warrant all persons or meansconveyance coming from quarantined
ance entering the Unitedareas in intrastate commerce. Retains
for prevention of introduction orcurrent authorities for warrantless
mination of any communicableinspections of persons or means of
disease (7USC§134d ). Theconveyance in international and
cretary has similar authorities ininterstate commerce and authorities to
rstate commerce when, on probableinspect premises with a warrant, but
here is a need to determineadds allowance for said warrant to be
means ofexecuted by a U.S. marshal. [Section
yance are carrying infected or1028].
posed animals, products, or regulated(Note: Similar authorities are found in
icles. The statute also authorizes the7USC§7731 for Plant Protection.)
ⁱ^{ki/CRS-RL31704}, and seizures (on
^g/w court
^s^.or
^le^akthe introduction or
mination of an animal disease.
^://wikis may be executed by
^h^ttpDA officials.
Detection, Control, and Eradicationd. No Provisions.d. Authorizes the Secretary to carryd. Senate Provisions [Section
out activities to detect, control, or10409]

r authoritieseradicate any pest and disease of
livestock (including the drawing of
blood and diagnostic testing of
animals), including animals at a
slaughterhouse, stockyards, or any
other point of concentration. The
measure also authorizes the payment
of claims arising from the destruction
of animals, articles or means of
conveyance. [Section 1029].

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Veterinary Accreditation
ogram. No Provisions.Authorizes the Secretary to establishSenate Provision [Section
r authorities exist. Currenta veterinary accreditation program,10410]
erinary accreditation program iswhich would include the
. establishment of standards of conduct
for veterinary practitioners. [Section

1030].

) Several sections of Title 21 give theNo Provisions.a. Keeps and consolidates presentSenate Provision [Section
broad authorities to cooperateauthorities.[Section 1031] 10411]
th other agencies, States, foreign
ⁱ^{ki/CRS-RL31704}vernments, and organizations to carry
^g/wd to animal health
^s^.or
^le^ak is authorized. (See 21USC§114,
^://wiki
^h^ttp
urrent law authorizes USDA tob. No Provisionb. Retains the screwworms programb. Senate Provision [Section
ile screwworms toas currently authorized, except that its10411(c).]
reign countries or internationalproceeds are to be deposited directly
anizations, with the proceeds goingto the account from which the
U.S. Treasury, and credited tooperating expenses have been paid
riation from which theand not to the program’s yearly
rating expenses of the facilityappropriation. [Section 1031].
the screwworms had been
sultations with Heads ofNo Provisions.Directs the Secretary to consult withSenate Provisions [Section
deral Agencies. the heads of a Federal agencies with104119(d)]

authorities exist related torespect to any activity that is under

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
their jurisdiction. The new provision
also appoints USDA as lead agency
with respect issues related to pests
and diseases of livestock. [Section

1031].

mbursable Agreements.
ecretary is currently authorized toNo Provisions.Keeps current authorities, but adds aSenate Provisions [Section
er into reimbursable fee agreementsnew subsection for late payment10412]
persons at locations outside of thepenalties, including the payment of
d States to run animal and plantinterest as currently required under
alth importation preclearance31USC§3717 on Interest and
ⁱ^{ki/CRS-RL31704}rams. (7USC§2260a). Statute alsoPenalties on Claims [Section1032].
^g/whorizes the Secretary to pay USDA
^s^.orployees for: (1) performing
^le^akor quarantine services
^://wikilating to imports and exports; (2)
^h^ttpying for all overtime, night, or
liday work performed; and (3)
reimbursements from the
rvices are
inistration and Claims. No provisions.Adds new authorities for theSenate Provisions [Section
r authorities exist related toSecretary to acquire and maintain real10413]

imal health laws.or personal property, employ a
person, and make grants, contracts, or
agreements to carry out this Act. In
addition, the Secretary acquires new
authority to pay tort claims outside of
the United States, as authorized by
applicable statutes. [Section 1033]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
enalties.
Current law establishes criminalNo Provisions.Streamlines criminal and civilSenate Provisions [Section
nalties of fines and/or up to one yearpenalties for violations of animal10414]
isonment, and also civilhealth statutes. Provides for new civil
to $1000 for violationspenalties, and fines. Provides new
imal importation regulationsauthority for the Secretary to suspend
ction 21USC§117or revoke accreditation to any
lyveterinarian that violates the Act.
nsporting diseased livestock orThe Secretary may also summarily
in violation of law with:(1)suspend an accreditation if there is
iminal penalties that make it areason to believe that the statutes
up tohave been violated. A prompt post-
ⁱ^{ki/CRS-RL31704}sonment, or bothsuspension hearing is mandated in
^g/wnd (2) civil penalties of fines up tosuch cases [Section 1034].
^s^.or
^le^akfter a notice and the(Note: Identical authorities are found
rtunity for a hearing on record.in 7USC§7734 for Plant Protection
^://wikirs for penalties shall be treated asAuthorities.)
^h^ttpnal, and are reviewable under
iminal penalties are established by in

21 sections 122, 127, and 134b).

ntly several statutes authorize theNo Provisions.Consolidates the Secretary’s broadSenate provisions. Section
ary to issue regulations necessaryauthority to promulgate regulations,10416]

arry out animal health lawand issue orders, as necessary to carry
port, transport,out animal health statutes. [Section
disinfection of1036].
ock and poultry. (21USC§§ 111,

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
. Plant Protection
w Penalties for Violations of theNo Provisions.Amends §424 of the Plant ProtectionSenate provision [Section
Act (7USC§7734): (1) by replacing10810]
criminal penalties provisions with a
new subsection which describes
criminal penalties for major violations
(e.g., multiple violations or for
violations with the intent to harm
agriculture in the United States), and
for other violations; and (2) by adding
a subsection to allow for forfeiture in
ⁱ^{ki/CRS-RL31704}criminal and civil cases and for the
^g/westablishment of appropriate
^s^.orprocedures. [Section 1068].
^le^ak
^://wikiseudorabies Eradication
^h^ttpd) of the Food,No ProvisionsExtends the pseudorabies eradicationHouse provision with extension
riculture, Conservation, and Tradeprogram authority until FY2006.of authority through FY2007.
thorized the[Section 1059].[Section 10505]
cation program until
ater, section 916 of Federal
riculture Improvement and Reform
SC §114i) to extend the program
h 2002.
reclearance Quarantine Inspections for Hawaii
o Provisions No ProvisionsOrders the Secretary to conductSenate Provision with $3 million
preclearance inspections forof FY2003 appropriations

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
departures out of Hawaii and destined[Section 10811]
to the continental United States or its
territories, provided that no less than
$3 million in FY2002 appropriations
be made available for an act different
that P.L. 107-76 (Agriculture
appropriations for FY2002). [Section

1063].

bulatory Farm Animals
ⁱ^{ki/CRS-RL31704}lar provision for unlawfulAdds a new section to Title III ofSame as House [Section 1045].Dropped House and Senate
^g/wicesPSA that introduces newprovisions instead adopting a
^s^.orards Act (PSA) ofdefinitions, unlawful practices, andrequirement that the Secretary
^le^akexceptions, as follows:investigate and issue a report to
^://wiki ‘Humanely euthanized’ is definedto mean to kill an animal byCongress on practices involvingnon-ambulatory livestock, and
^h^ttpmechanical, chemical, or otherauthorizing the issuance of
means that immediately render theregulations based on the findings
animal unconscious, with this stateof the report, if the Secretary
remaining until the animal’s death,”determines this is necessary.
“Non-ambulatory Livestock” means[Section 10815]

any livestock that is unable to stand
and walk unassisted.
Makes it unlawful under Section
312 of the PSA (1) for any
stockyard owner, market agency, or
dealer to buy, sell, give, receive,
transfer, market, hold, or drag any
non-ambulatory livestock unless the
non-ambulatory livestock has been

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
humanely euthanized. Non-GIPSA
farms, or cases in which non-
ambulatory livestock receive
veterinary care intended to render
the livestock ambulatory animals
are excepted. Requires the issuance
of new regulations. [Section 945].
al Welfare Act (nonfarm animals)
Care and Treatment standards for
.No ProvisionsAmends the Animal Welfare ActNo Provision
ⁱ^{ki/CRS-RL31704}ordering the Secretary to include
^g/wminimum standard requirements: (1)
^s^.orfor the socialization of dogs intended
^le^akfor sale as pets; and (2) for addressing
^://wikithe initiation and frequency ofbreeding of female dogs, in the
^h^ttpSecretary’s promulgation of standards
to govern the humane handling, care,
treatment, and transportation of
animals by dealers, research facilities,
and exhibitors. [Section 1049].
Definition for ‘animal’ in the AnimalNo Provisions.a. Excepts birds, rats and mice useda. Senate Provisions [Section
lfare Act. The Animal Welfare Actfor research from protection under the10304]

ts minimum standards of animal careAnimal Welfare Act (AWA) by
xperimental laboratories, animalamending the definition of “animal”
lers, and others. In 1970, the AWAin Section 26 of the Animal Welfare
ended to protect “warm-Act [7USC§2156 2(g)]. The

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
earch butprovision codifies current regulations,
ve the Secretary the authority towhich specifically exclude birds, rats
termine AWA’s applicability toand mice for research use from
imals not specifically mentioned inprotection under this Act (see
e Act. Current regulations specifically9CFR§1.1). [Section 1051].
clude birds, rats and mice for

9CFR§1.1). On September 28,

DA reached an out of court
ttlement with the Alternatives
oundation
in a rulemaking process on the
ⁱ^{ki/CRS-RL31704}ulation of birds, rats and mice under
^g/wA. However, Agriculture
^s^.or
^le^akY 2001 and
Y2002 have prohibited the use of
^://wiki out the
^h^ttp process (see P.L. 106-387
. 107-76 §732).
No provisions.b. Requires from the Secretary ofb. Senate Provisions [section
Agriculture a report, completed by the10304]

Comptroller General within one year,
on the implications of including birds,
rats, and mice within Animal Welfare
Act the definition of an animal. The
report must contain descriptions and
estimates of costs, regulatory
appraisals, and current enforcement
funding. [Section 1083].

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
Animal Fighting Ventures and
fighting
poses fines of not more than $5,000Amends Section 26(e) of AWA bySame as House [Section1052].House version with “special
nt for not more than 1increasing fines to not more thatrule” for states where fighting is
r both, for each violation$15,000 and imprisonment to nolegal. [Section 10302
ection 26 (e) of the Animal Welfaremore than 2 years, or both, for each

17 of theviolation. [Section 940(a)(1)].

elfare Amendments Act ofAdds phrase “or from any State into
)a foreign country” to the statute’s
nes ‘Interstate or Foreign‘interstate or foreign commerce’
nce’ as: (A) any movementdefinition. [Section 940(a)(2)].
ween any place in a State to any
ⁱ^{ki/CRS-RL31704}ace in another State or between places
^g/w the same State through another State;
^s^.or
^le^ak movement from a foreign
into any State. (Section
^://wikig)(2))
^h^ttp
ent of Animals
r Animal Fighting:
ntly, interstate movement ofAmends Section 26(d) of theSame as House [Section 1053].House provision [Section 10301]

imals for fighting is legal to statesAnimal Welfare Act to prohibit the
ere fighting is allowed. Sectioninterstate movement of animals for
e Animal Welfare Act, asfighting. Section 26(d) would read
ended, reads as follows: “(d) Notas follows: “(d) Activities Not
the provisions ofSubject to Prohibition- This section
(a), (b), or (c) of this section,does not apply to the selling,
activities prohibited by suchbuying, transporting, or delivery of
an animal in interstate or foreign

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
hting ventures involvingcommerce for any purpose, so long
birds only if the fight is to takeas the purpose does not include
ace in a State where it would be inparticipation of the animal in an
thereof.” (7USC§animal fighting venture.” [Section

941(a)].

ane Methods for AnimalFree standing provision expressesSimilar to House bill, except that alsoAdopts both House and Senate
sense of Congress that USDAcalls for resuming the tracking andprovisions. [Section 10305]
ne Methods Slaughter Act ofshould fully enforce the Humanereporting of Act violations to
ⁱ^{ki/CRS-RL31704}Methods Slaughter Act of 1958Congress. [Section 1067].
^g/w(7USC§§1901 et seq.) [Section
^s^.or 939] .
^le^ak
^://wiki
^h^ttp Genetically Engineered Products
Genetically Engineered FoodAuthorizes $0.5 million for aSense of the Senate Resolution for theSense of the Congress that the
ically Engineered PestNational Academy of SciencesSecretary to submit a report onSecretary review National
otected Plants report on GEF regulations, safetygenetically engineered pest-protectedResearch Council
and monitoring. [Section 933].plants. Authorizes appropriations ofrecommendations and submit a
$10 million from FY2002 and sumsreport on this to the Congress.
as necessary for other fiscal years.[Section 7410]
[Section 1083]
Authorizes a USDA program toNo provisionNo provision.

educate the public about GEF.
[Section 935].

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
esticides and School Pesticide Management Plans
ee collectionNo provisionAmends FIFRA to reauthorize feeNo provision.
ction 4, Federal Insecticide,collection (to support reregistration of
e Act,pesticides), increase maintenance
]2. Small Business Eligibilityfees, prohibit collection of
r reduced fees.registration fees for five years, and
rmits lower maintenance fees forallow expedited registration
sinesses with 150 or fewerprocessing for inert gradients. It also
ployees.would strictly limit increases in
]tolerance processing fees charged to
registrants of pesticides used on food.
ⁱ^{ki/CRS-RL31704}Expands the number of businesses
^g/weligible for reduced fees from those
^s^.orwith 150 or fewer employees to those
^le^akwith 500 or fewer employees.
^://wiki[Section 1041]
^h^ttpest Management in Schools
No provisionAmends FIFRA to create a newNo Provision

section 33, “School Environment
Protection Act of 2002” that requires
Pest Management in Schools.
Requires states to develop pest
management plans as part of state
cooperative enforcement agreements
with the EPA. Set requirements for
what should be included in plans and
requires the EPA to distribute
guidelines to states no later than one
year after enactment, after which
State educational agencies would be

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
required to develop plans and submit
them to the Administrator for
approval. Local education agencies
would be required to implement their
state plan within one year of receiving
it. [Section 1042]
armers and Ranchers (See also Title V, Farm Credit)
lation of program participationNo ProvisionAmends Section 2507 of the FACTSenate provision with
Act to require the Secretary toamendments. [Section 10708]
in current lawcompute annually for each county and
ⁱ^{ki/CRS-RL31704}state. the participation rate of socially
^g/wdisadvantaged farmers and ranchers
^s^.oras a percentage of total USDA
^le^akprogram participants. [Section 1057]
^://wikilections for country areas or local
^h^ttpmittees.No provisionAdds requirements for theSenate provisions, with
composition of county, area or localamendments to require the
(b)(5) of the Soilcommittees that will make them fairlySecretary to report participation
ervation and Domestic Allotmentrepresentative. Requires the Secretaryrates of socially-disadvantaged
to establish procedures forfarmers and ranchers by race,
nominations and elections committeesethnicity, and gender and in
and to solicit and accept nominationsthose instances when socially-
from organizations representingdisadvantaged farmers or
interests of socially disadvantagedranchers are not adequately
farmers. Requires public notice andrepresented on a local or area
observation of opening and countingcommittee, permits the Secretary
of ballots by any person, and filing ofto appoint one additional voting
an election report on the outcome ofmember to the committee.
the election with the Secretary and the[Section 10708]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
State office of the Farm Service
agency within 20 days of an election,
and a national report no later than 90
days after the first election after
enactment. Sets the term of office for
membership on a county, local or area
committee at not more than 3 years.
Requires the Secretary to publish in
the Federal register proposed uniform
guidelines to ensure fair
representation of socially
disadvantaged for conducting
ⁱ^{ki/CRS-RL31704}elections if necessary after analyzing
^g/wthe data contained in the election
^s^.or
^le^akreport. [Section 1057]
Definition of Socially
^://wikiFor the purposeNo ProvisionAmends 1990 FACT Act to addSenate Provision [Section
^h^ttpreach and assistance, defines a“gender” to the definition of a10708]

disadvantaged group as a groupsocially disadvantaged group eligible
members have been subjected tofor outreach and assistance. [Section
al or ethnic prejudice because of1057]
eir identity as members of a group
ard to their individual
ntities.[Section 2501(e) of the FACT
.
: Section 355(e) of the
idated Farm and Rural
999 adds
ender” to the definition of a socially
advantaged group for the purposes of
n eligibility.

CRS-214
ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
eographically Disadvantaged Farmers and Ranchers
No ProvisionEstablishes a new program toDrops Senate provisions creating
encourage geographicallyand funding a new program.
disadvantaged farmers and ranchersMaintains Senate provision
in owning and operating farms anddefining geographically
ranches and participating equitably indisadvantaged farmers and
the full range of agriculture programsranchers. Adds a provision
offered by the USDA. Authorizes $20requiring the Secretary of
million annually for FY2002-2006 toAgriculture to submit a report to
carry out this program, and defines athe House and Senate
ⁱ^{ki/CRS-RL31704}geographically disadvantaged farmerAgriculture Committees not later
^g/wor rancher as one in an insular area orthan one year after enactment
^s^.ora state other than one of the 48that describes: barriers to
^le^akcontiguous states. [Section 1079B]efficient and competitive
^://wikitransportation of inputs andproducts by geographically
^h^ttpdisadvantaged farmers and
ranchers; and ways of
encouraging and assisting such
farmers and ranchers in owning
and operating farms and ranches
and participating in the full
range. of USDA programs.
[Section 10906]
. Assistant Secretary of AgricultureNo ProvisionAmends Section 218 to require theSenate provisions amended to
r Civil Rights Secretary of Agriculture to establishendure that this new Secretary is
the position of Assistant Secretary ofunder the authority of the
ection 218 of the Department ofAgriculture for Civil rights to beSecretary of Agriculture [Section
riculture Reorganization Act ofappointed by the President by and10704]

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
with the advice and consent of the
Senate, with listed duties and
responsibilities [Section 1056]
arm Marketing Programs
State Marketing Programs. 1. No provisionEstablishes a State MarketingDeletes new program
deral support for: the promotion ofProgram funded with CCC fundsauthorization, funding and
ricultural products through research(mandated at $7 million FY2003, $8priorities; instead requires the
ve the marketing, handling,million for FY2004 and $10 millionSecretary to work with states to
e, distribution and transportationfor each of fiscal years 2005 anddevelop programs to train
ricultural products; cooperation2006). Fund are to be allotted to statemanagers of farmers markets,
ⁱ^{ki/CRS-RL31704}ween federal, state and localdepartments of agriculture and otherdevelop opportunities for
^g/wencies, producers, industryappropriate State agencies forinformation sharing, and
^s^.oranizations and others in research andcooperative projects in marketingestablish a program to train
^le^akation of effective marketingservices and research. From the CCCcooperative extension services
^://wikiram; and integrated administrationl laws enacted by the Congress tofunds allotted under this program , theSecretary is to give priority toemployees in the development ofdirect marketing techniques.
^h^ttpgriculturalinitiatives designed to support direct[Section 10605(b)]
through research , market aidsand others marketing efforts of small
egulatoryfarms and limited resource farmers.
tivities.[Title II Agricultural[Section 1050]
]
Farmers Market Promotion No provision. Among other things, authorizes $10Authorizes such funds as are
ogram. Federal aid to promote themillion annually for fiscal yearsnecessary, subject to
pansion, of direct2002-2006 to make grants under aappropriations, for the creation
rketing of agricultural commoditiesnew ‘Farmers’ Market Promotionof a new Farmers Market
ers farmers’Program’ to establish, expand andPromotion Program. Maintains
promote farmers markets. MaximumSenate provisions regarding
rkets) [The Farmer-to-Consumergrant amounts set at $500,000 in anyeligible entities, but gives the
fiscal year. Includes types of entitiesSecretary the authority to set

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
eligible for such funds, and thecriteria and guidelines instead of
criteria and guidelines for grantsetting these in the aw. [Section
submission, evaluation and funding.10605(a)]
[Section 1050]
ganic Certification
ram - No ProvisionNo ProvisionDirects the Secretary to use $3.5Adopts Senate provision, revised
million of CCC funds for each ofto require the Secretary to use $5
fiscal years 2002-2004 and $3 millionmillion of CCC funds,
for FY2005 to establish a nationalbeginning in FY2002, to
organic certification cost-shareestablish a national organic
program to assist producers andcertification cost-share program.
ⁱ^{ki/CRS-RL31704}handlers of agricultural products in[Section 10606]
^g/wobtaining certification under the
^s^.orNational Organic Production
^le^akProgram. Sets maximum federal share
^://wikiat 75%, and maximum individual
^h^ttppayment to a producer or handler at
$500. [Section 1065]
Exemptions from assessments forNo ProvisionNo ProvisionExempts from assessments under
anic farmers. No Provisiona commodity promotion law a
person that produces and markets
100% organic products and
requires Secretary to promulgate
relevant regulations within 1
year of enactment [Section

10607]

ood Safety Commission
o ProvisionNo ProvisionEstablishes a Food SafetyAdopts Senate provision with
Commission composed of 15revisions to, among other things,

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
members from consumer groups, foodprovide for Presidential
processors, producers and retailers;appointment of membership,
public health professionals; foodchange eligibility standards for
inspectors and regulators, academicsappointees, and describe how
and other interested individuals.each of the Commission’s
Requires the Commission to makerecommendations would
specific recommendations that buildimprove food safety [Section
on the recommendations of the NAS10807].
report on ensuring safe food, that
provide a basis for legislative
language to improve the food safety
system, public health and harmonize
ⁱ^{ki/CRS-RL31704}the food safety system. [Section
^g/w 1066]
^s^.or
^le^akscellaneous Studies, Reports and Task Forces
^://wiki and/or Reports -No ProvisionsRequires the Secretary to issue aRequires reports or studies on
^h^ttp modified plants,report or study on: Pouched andspecialty crop purchases [section
rkansas Litter Bank, Pesticidecanned salmon; genetically modified10901]; the effect on producers
les and use, Producerpest protected plants; the feasibility ofof updated yield bases [section
producer indemnification from10903]; the effect of farm
government caused disasters; creationprogram payments [section
of Litter bank by the University of10904]; Chiloquin Dam fish
Arkansas; the sale and use ofpassage feasibility [section
pesticides for agricultural uses; rats,10905]; geographically
mice and birds. Of these only thedisadvantaged farmers and
study of GM pest-protected plantsranchers [section 10906];
authorizes funding — $10 million foragricultural research and
FY2002 and such sums as aretechnology [section 10907]; the
necessary thereafter. [Sections 1081,sale and use of pesticides for

0183, 1084, 1085, 1086 and 1087].]agricultural purposes [section

ISCELLANEOUS HOUSE BILLSENATE BILLNEW LAW P.L. 107-171
OLD LAW/POLICYH.R. 2646S. 1731, amendedCOVERS 2002-2007
COVERS 1996-2002COVERS 2002-2011COVERS 2002-2006
10909]; review of the operation
of agricultural and natural
resource programs on tribal trust
land [section 10910]
Requires the Comptroller General to
ster Settlement AgreementNo provisionsubmit annually to the Congress,Senate provision [section 10908]
beginning December 31, 2002, a
report describing all programs and
activities carried out by states using
funds receive und the master
Settlement Agreement of 1997.
[Section 1082]
ⁱ^{ki/CRS-RL31704}
^g/wsk Force on National Institutes ofNo ProvisionRequires the Secretary to establish aNo provision

^s^.or
^le^aknt and Agricultural Sciencestask force to evaluate the merits of
establishing one or more National
^://wikiInstitutes of Plant and Agricultural
^h^ttpSciences. Lays out membership and
general criteria for membership,
appointed by the Secretary, and the
duties of the Task Force. No funds
authorized. [Section 1088]