article: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Agricultural Equity Act of 1995''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings, policy, and purpose. Sec. 3. Sense of Congress on ending the Federal deficit. Sec. 4. Nonrecourse loans and deficiency payments for the 1996 through 2002 crops of rice, upland cotton, feed grains, wheat, and oilseeds. Sec. 5. Review of status and future of production agriculture. SEC. 2. FINDINGS, POLICY, AND PURPOSE. (a) Findings.--Congress finds the following: (1) A sound and prosperous economy in the United States is dependent on American agriculture and related industries, including producers, processors, handlers, manufacturers, marketers, transporters, and the banking and credit industry. (2) American agriculture and related industries account for over 21,000,000 jobs and approximately 16 percent, or over $41,000,000,000,000, of the gross domestic product. (3) Because of the combined effort of American agriculture and related industries, consumers in the United States enjoy a dependable supply of food and fiber at fair prices. (4) The future of American agriculture is dependent on the continued viability of the American agricultural producer, the underpinning of the national economy. (5) Agricultural producers must receive a fair return on their productivity and investment in an industry characterized by continued subsidized foreign competition and wide fluctuations in production and prices due to weather and related factors. (6) One of the essential elements of a sound agricultural economy is the ability of the United States to compete in the world market. (7) Exports of United States agricultural commodities are expected to reach nearly $50,000,000,000 in 1995 and contribute about $20,000,000,000 to the United States balance of trade. (8) Agricultural exports account for over 1,000,000 American jobs. (9) Commodity Credit Corporation outlays for farm programs have declined from a high of approximately $26,000,000,000 for fiscal year 1986 to less than $9,000,000,000 for fiscal year 1995, a reduction of over 65 percent that is unique among the many mandatory spending programs of the Federal Government. (10) According to the Congressional Budget Office, farm program outlays are projected to remain below the outlay level for fiscal year 1995 for the next 5 years and continue to decline by nearly 8 percent, even if no changes are made in current law for existing farm programs. (b) Policy.--It is the policy of the United States that-- (1) continued Federal Government support is necessary to provide stability for American agricultural producers to-- (A) enable the producers to continue to provide consumers with a steady and dependable supply of food and fiber at fair prices; (B) enhance farmer and rancher profitability; (C) encourage young farmers to stay on the farm; (D) maintain the competitiveness of the United States in the world market; and (E) otherwise preserve the underpinnings of a sound agricultural economy; and (2) reductions in farm program spending should be made in a fair and equitable manner in order to meet the objective of achieving a balanced budget for the Federal Government in a manner consistent with paragraph (1). (c) Purpose.--The purpose of this Act is to establish agricultural price support and production adjustment programs for the 1996 through 2002 crop years that provide a structure for a sound agricultural economy in a manner consistent with subsection (b). SEC. 3. SENSE OF CONGRESS ON ENDING THE FEDERAL DEFICIT. It is the sense of Congress that-- (1) the continuation of significant Federal budgetary deficits harms the economic well-being of the United States and is detrimental to the development of sound, long-term agricultural policy; (2) agricultural price support and production adjustment programs are necessary for the continued economic health of United States agriculture, which must compete in international markets against subsidized foreign competition; and (3) agricultural price support and production adjustment programs should be-- (A) implemented, to the maximum extent practicable, in a manner that is consistent with the primary goal of the concurrent resolution on the budget for fiscal year 1996 (H. Con. Res. 67, agreed to June 29, 1995) to end Federal budget deficits; and (B) modified, as necessary, to ensure that the programs comply with applicable budget reconciliation instructions in the concurrent resolution that are designed to end Federal budget deficits, in a manner consistent with section 306 of the concurrent resolution. SEC. 4. NONRECOURSE LOANS AND DEFICIENCY PAYMENTS FOR THE 1996 THROUGH 2002 CROPS OF RICE, UPLAND COTTON, FEED GRAINS, WHEAT, AND OILSEEDS. (a) Definitions.--For purposes of this section: (1) Covered commodities.--The term ``covered commodities'' means rice, upland cotton, feed grains, wheat, and oilseeds. (2) Feed grains.--The term ``feed grains'' means corn, grain sorghum, barley, and oats. (3) Oilseeds.--The term ``oilseeds'' means soybeans, sunflower seeds, canola, rapeseed, safflower, flaxseed, mustard seed, and such other oilseeds as the Secretary may determine appropriate for inclusion. (b) Nonrecourse Loans.-- (1) Price support loans.--The Secretary shall make available to producers on a farm nonrecourse loans for each of the 1996 through 2002 crops of each covered commodity at the level specified in paragraph (2). Acreage covered shall include both mandatory and voluntary flex acres. (2) Loan levels.--The loan levels for each covered commodity shall be 100 percent of the simple average price received by producers of that covered commodity, as determined by the Secretary, during the marketing years for the preceding 5 crops of that covered commodity, 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. The Secretary may adjust the loan level for a particular covered commodity to reflect changes in the market price of that covered commodity. (3) Prohibitions.--The Secretary shall not make available a marketing loan or loan deficiency payment to any producer on a farm for any of the 1996 through 2002 crops of covered commodities. (c) Deficiency Payments.-- (1) In general.--The Secretary shall make deficiency payments available to producers for each of the 1996 through 2002 crops of each covered commodity (other than oilseeds) in an amount computed by multiplying-- (A) the payment rate for the covered commodity; (B) the payment acres for the crop of that covered commodity; and (C) the farm program yield for the crop of that covered commodity for the farm. (2) Payment rate.-- (A) Minimum established price.--The minimum established price in effect for the 1991 through 1995 crops of each covered commodity shall continue in effect for the 1996 through 2002 crops of that covered commodity. (B) Establishment of rate.--The payment rate for each of the 1996 through 2002 crops of each covered commodity shall be the amount by which the target price exceeds the higher of-- (i) the loan level established for that covered commodity under subsection (b); (ii) the average market price of that covered commodity. (3) Payment acres.--Payment acres for a crop of a covered commodity shall equal base acres less idled (set aside) and flex (mandatory and optional) acres. (4) Elimination of \0/85\ and \50/85\ programs.--The Secretary shall discontinue the partial payment programs, variously known as \0/85\, \50/85\, \0/92\, and \50/92\, effective with crop year 1996. (d) Flexibility (`Flex') Program.--The Secretary shall increase producer planting flexibility-- (1) by increasing the mandatory flex acreage percentage for each covered commodity from 15 percent to 20 percent; and (2) by offering producers an additional voluntary increase in flex acres of between 10 percent to 25 percent. (e) Crop Insurance Requirement.--As a condition for eligibility for crop loans and deficiency payments under this section, the producers on a farm shall obtain catastrophic risk protection insurance coverage in accordance with section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)). (f) Conforming Repeals.--Sections 101B (rice), 103B (cotton), 105B (feed grains), 107B (wheat), and 205 (oilseeds) of the Agricultural Act of 1949 are repealed. The repeal of such sections shall not affect the authority of the Secretary to carry out a price support or production adjustment program for any of the 1991 through 1995 crops of a covered commodity under a provision of law in effect immediately before the date of the enactment of this Act. SEC. 5. REVIEW OF STATUS AND FUTURE OF PRODUCTION AGRICULTURE. (a) Scope of Review.--The Secretary of Agriculture shall conduct a comprehensive review of the status and future of production agriculture and farming communities in the United States and the extent to which the program changes made by this Act will impact production agriculture and farming communities in the United States. The review shall include the following-- (1) an assessment of the food security situation in the United States in the areas of trade, consumer prices, international competitiveness of United States production agriculture, food supplies, and humanitarian relief; (2) an assessment of current and future farm land values and agricultural producer incomes; (3) an assessment of the extent to which regulatory relief for agricultural producers has been enacted and implemented, including the application of cost-benefit principles in the issuance of agricultural regulations; (4) an assessment of the extent to which tax relief for agricultural producers has been enacted in the form of capital gains tax reductions, estate tax exemptions, and mechanisms to average tax loads over high- and low-income years; (5) an assessment of any Federal Government interference in agricultural export markets, such as the imposition of trade embargoes, and the degree of implementation and success of international trade agreements; (6) identification of the appropriate future relationship of the Federal Government with production agriculture after 2002; (7) identification of the long-term goals for production agriculture and farming communities in the United States and recommendations for actions needed to achieve those goals; and (8) an assessment of manpower and infrastructure requirements of the Department of Agriculture as the result of program changes made by this Act. (b) Legislative Proposals.--As part of the comprehensive review required under subsection (a), the Secretary shall develop specific legislative proposals to implement any recommendations being made. (c) Reports.--The Secretary shall report the findings and recommendations made under subsection (a) to the President, to the Committee on Agriculture of the House of Representatives, and to the Committee on Agriculture, Nutrition, and Forestry of the Senate, not later than March 31, 1997. (d) Hearings.--The Secretary may, for the purpose of carrying out this section, conduct such hearings and receive such evidence as the Secretary considers appropriate. (e) Assistance From Other Agencies.--The Secretary may secure from other departments and agencies of the Federal Government such information as may be necessary to carry out this section.
summary: Agricultural Equity Act of 1995 - Directs the Secretary of Agriculture to make price support loans and deficiency payments (excluding oilseeds) through 2002 for wheat, feed grains, rice, upland cotton, and oilseeds. Provides for increased flex acreage. Requires crop insurance as a condition of program eligibility. Directs the Secretary to review the status and future of production agriculture, including development of related legislative proposals.