article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Emergency Drought Relief Act of 1998''. SEC. 2. LOAN RATES FOR MARKETING ASSISTANCE LOANS FOR CERTAIN CROPS. (a) Wheat.--Subsection (a) of section 132 of the Agricultural Market Transition Act (7 U.S.C. 7232) is amended by striking paragraph (1) and inserting the following new paragraph: ``(1) Loan rate.--Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for wheat shall be equal to not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.''. (b) Feed Grains.--Subsection (b) of such section is amended by striking paragraph (1) and inserting the following new paragraph: ``(1) Loan rate for corn.--Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for corn shall be equal to not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.''. (c) Upland Cotton.--Subsection (c)(2) of such section is amended by striking ``or more than $0.5192 per pound''. (d) Extra Long Staple Cotton.--Subsection (d) of such section is amended to read as follows: ``(d) Extra Long Staple Cotton.--The loan rate for a marketing assistance loan under section 131 for extra long staple cotton shall be equal to not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.''. (e) Oilseeds.--Subsection (f) of such section is amended-- (1) in paragraph (1)(B), by striking ``or more than $5.26''; and (2) in paragraph (2)(B), by striking ``or more than $0.093''. SEC. 3. COST-SHARE ASSISTANCE FOR AGRICULTURAL PRODUCERS PERFORMING CERTAIN DROUGHT ALLEVIATION PROJECTS. (a) Definitions.--In this section: (1) Designated disaster area.--The term ``designated disaster area'' means an area that is covered by a Presidential declaration of major disaster issued under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) or determined to be a disaster area by the Secretary of Agriculture under subpart A of part 1945 of title 7, Code of Federal Regulations, if the basis for the Presidential declaration or Secretarial determination is at least in part the result of drought conditions in the area. (2) Eligible land.--The term ``eligible land'' means agricultural land, including cropland, rangeland, pasture, and other land on which crops or livestock are produced, or land used to support the production of crops or livestock. (3) Livestock.--The term ``livestock'' means dairy cattle, beef cattle, laying hens, broilers, turkeys, swine, sheep, and such other animals as determined by the Secretary. (4) Producer.--The term ``producer'' means a person who is engaged in livestock or agricultural production (as defined by the Secretary). (b) Authority To Provide Assistance.--During the 1999 through 2002 fiscal years, the Secretary of Agriculture may provide technical assistance and cost-share payments to a producer who undertakes on eligible lands in a designated disaster area a project intended to alleviate or otherwise respond to the effects of drought on crop or livestock production. A producer may apply for cost-share payments under this section before undertaking an eligible project, during the course of the project, or within one year after completing the project. A project may be completed after the expiration of the designation of an area as a designated disaster area. (c) Eligible Projects.--The projects for which assistance may be provided under this section include-- (1) the installation of water wells to be used primarily for crop irrigation or livestock watering; (2) the dredging of ponds or other small bodies of water on eligible lands; and (3) the extension of public water supply lines to serve eligible lands. (d) Offer Selection Process.--The Secretary of Agriculture shall, to the maximum extent practicable, establish a process for selecting applications for financial assistance if there are numerous applications for assistance for eligible projects that would provide substantially the same level of benefits. The process shall be based on-- (1) a reasonable estimate of the projected cost of the proposals and other factors identified by the Secretary for determining which applications will result in the least cost to the program authorized by this section; and (2) such other factors determined by the Secretary that maximize benefits in designated disaster areas per dollar expended. (e) Concurrence of Owner.--If the producer making an offer to receive assistance is a tenant using the eligible land, for the offer to be acceptable, the producer shall obtain the concurrence of the owner of the eligible land with respect to the offer. (f) Amount of Cost-Share Payments.--The Federal share of cost-share payments to a producer proposing to implement one or more eligible project shall be not more than 75 percent of the projected cost of the project, as determined by the Secretary of Agriculture, taking into consideration any payment received by the producer from a State or local government. A producer may not receive cost-share payments under this section for a project if the producer receives cost-share payments or other benefits for the same project under another provision of law. (g) Technical Assistance.--The receipt of technical assistance under this section shall not affect the eligibility of the producer to receive technical assistance under other authorities of law available to the Secretary of Agriculture. (h) Retroactive Effect.--This section shall apply to eligible projects commenced in designated disaster areas on or after January 1, 1998. SEC. 4. AUTHORITY TO PROVIDE EMERGENCY LOANS BASED ON ESTIMATED LOSSES. Subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961-1970) is amended by inserting after section 327 the following: ``Sec. 328. In this subtitle, the terms `actual loss' and `actual production loss' mean actual loss or (if greater) the estimated loss as determined by the relevant county committee.''. SEC. 5. BORROWER ELECTION TO DEFER INTEREST PAYMENTS ON EMERGENCY LOANS. Section 324 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1964) is amended by adding at the end the following: ``(f) A borrower of a loan made under this subtitle may elect to defer the payment of any or all interest on the loan until the end of the period for which the loan is made.''.
summary: Emergency Drought Relief Act of 1998 - Amends the Agricultural Market Transition Act to eliminate marketing assistance loan rate caps for wheat, corn and feed grains, upland and extra long staple cotton, and oilseeds. Authorizes the Secretary of Agriculture to (temporarily) provide cost-share assistance for crop and livestock producers performing certain drought alleviation projects. Makes such assistance available retroactively to eligible projects begun as of January 1, 1998. Amends the Consolidated Farm and Rural Development Act to authorize: (1) emergency loans based upon estimated losses; and (2) emergency loan interest deferral.