Order Code RL31272
CRS Report for Congress
Received through the CRS Web
A New Farm Bill: Comparing the House and
Senate Proposals with Current Law
Updated March 12, 2002
Agriculture and Food Section
Coordinated by Jean Yavis Jones
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

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A New Farm Bill: Comparing the House and Senate
Proposals with Current Law
Summary
The House and Senate have approved different versions of a new farm bill
(H.R.2646) that will set agriculture and food policy for the next several years (5 years
under the Senate bill; 10 years under the House bill). Meetings between the House and
Senate to discuss differences between the chambers' bills began in early March 2002.
The House passed its bill, entitled the Farm Security Act of 2001 (H.R. 2646), on
October 5, 2001. The Senate farm bill debate continued into the second session of the
107th Congress when a substitute version of S.1731 (the so-called Daschle Substitute)
was approved along with numerous other amendments (including a 397- page
Managers’ Amendment) on February 13, 2002. The much-revised Senate measure was
renumbered H.R.2646, although it retained its title (The Agriculture, Conservation, and
Rural Enhancement Act).
The size of the Senate version -- almost 1400 pages compared to the 379 page
House bill -- is not necessarily a measure of the policy differences between the
chambers. The commodity titles in the two bills retain marketing loan assistance and
fixed, decoupled annual farm payments. They both also add target prices and counter-
cyclical income support (or deficiency payments) for major field crops. Conservation
activities and nutrition programs are enhanced under both bills, although more so in the
Senate bill. Both bills also increase spending above current law baselines. The FY2002
budget resolution allowed for $73.5 billion above the 10-year baseline. The
Congressional Budget Office (CBO) estimates the costs of the House bill at $73.5
billion over baseline. The same amount originally was estimated for the Senate bill until
CBO discovered a $6.1 billion underestimate in its calculations. The revised amount
($79.6 billion) is not the only spending difference from the House bill. The Senate bill
spends its new money more quickly than does the House and also adds another $2.4
billion in “emergency” farm aid for FY2002. The cost and speed of spending are
expected to be major issues in House-Senate Conference committee deliberations.
The Administration has indicated that it prefers the more evenly measured pace of
new spending in the House bill, which spends under half of its new money in the first
5 years. By contrast, the Senate bill would spend well over 60% of its total new money
in the first 5 years (not counting the $6.1 billion underestimate or the $2.4 billion in
emergency farm aid for FY2002). The Administration has not taken a public position
on other differences between the chambers’ bills. Among the most controversial are
Senate provisions that significantly lower the limit on commodity payments to farmers;
restraints on packer ownership of livestock going to slaughter; potential increased
federal control of certain water rights; and a new dairy counter-cyclical-income support
program.
Lawmakers in both chambers are pressing for quick resolution so that farmers can
make their spring planting decisions for 2002 and the Congress can make use of the new
spending for the farm bill allowed by last year’s congressional budget resolution.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Legislation in the 107th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Summary Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Spending and Time-frame. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Administration Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Selected Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Commodity program provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Farm Payment Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Federal Budget and Trade Agreement Issues . . . . . . . . . . . . . . . . . . . . 9
Dairy Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Conservation Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Concentration in the livestock sector . . . . . . . . . . . . . . . . . . . . . . . . . 10
Comparison Caveats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
COMPARISON OF SELECTED PROVISIONS: CURRENT LAW AND
HOUSE AND SENATE FARM BILLS
(H.R. 2646 AND THE SENATE AMENDMENT) . . . . . . . . . . . . . . . . 12
I. COMMODITY PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Title: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Definitions: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
A. GRAINS et. al. (Wheat, Corn, Grain Sorghum, Barley, Oats, Upland Cotton, Rice,
Soybeans and Minor Oilseeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1. Fixed, Decoupled Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2. Counter-Cyclical Deficiency Payments and Target Prices . . . . . . . . . . . 19
3. Marketing Assistance Loans and LDPs . . . . . . . . . . . . . . . . . . . . . . . . . 20
B. OTHER COMMODITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
a. Dry Peas, Lentils and Chickpeas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
b. Grazed Wheat, Barley, and Oats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
c. High Moisture Corn and Sorghum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
d. ELS and Seed Cotton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
e. Hard White Wheat Incentive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . 25
f. Cotton Competitiveness Provisions for Processors and Exporters . . . . . . 25
g. Sugar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
h. Peanuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
i. Wool and Mohair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
j Honey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
k. Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
l. Tobacco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
m. Specialty Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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C. PAYMENT LIMITS (Fixed, marketing loan, countercyclical) . . . . . . . . . . . . 38
D. COUNTER-CYCLICAL FARM SAVINGS ACCOUNTS . . . . . . . . . . . . . 39
E. WTO LIMITS ON ALLOWABLE DOMESTIC SUPPORT . . . . . . . . . . . . 40
II. CONSERVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
A. Environmental Conservation Acreage Program (ECARP) . . . . . . . . . . . 41
B. Conservation Reserve Program (CRP) . . . . . . . . . . . . . . . . . . . . . . . . . 42
C. Wetlands Reserve Program (WRP . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
D. Environmental Quality Incentives Program . . . . . . . . . . . . . . . . . . . . . . 47
E. Wildlife Habitat Incentives Program (WHIP . . . . . . . . . . . . . . . . . . . . . 50
F. Farmland Protection Program (FPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
G. Other Programs (Including Technical Assistance) . . . . . . . . . . . . . . . . 52
H. New Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
III. AGRICULTURAL TRADE AND AID . . . . . . . . . . . . . . . . . . . . . . . . . . 64
A. Agricultural Export Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . 64
B. Food Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
C. Other Trade Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
IV. NUTRITION PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
A. Food Stamp Program, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
B. Commodity Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
C. Child Nutrition Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
D. Special Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
E. Effective Dates and Cost Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
V. FARM CREDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
A. Farm Ownership/Real Estate Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
B. Operating Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
C. Emergency Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
D. Administrative Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
E. Department of Agriculture Reorganization Act of 1994 . . . . . . . . . . . . . 110
F. Farm Credit System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
G. Miscellaneous Credit and Finance Provisions . . . . . . . . . . . . . . . . . . . . . 111
VI. RURAL DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
A. Rural Community Advancement Program . . . . . . . . . . . . . . . . . . . . . . . 113
B. Fund for Rural America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
C. Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
D. Value-added Agriculture Development . . . . . . . . . . . . . . . . . . . . . . . . . 115
E. Water and Waste Treatment Programs . . . . . . . . . . . . . . . . . . . . . . . . . 116
F. Rural Entrepreneur and Business Investment Programs . . . . . . . . . . . . . 117
G. Strategic Rural and Regional Planning Programs . . . . . . . . . . . . . . . . . . 118
H. Rural America Infrastructure Account . . . . . . . . . . . . . . . . . . . . . . . . . . 119
I. Other Rural Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
VII. RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
A. Funding Authorities: USDA In-House Research and Cooperative Extension
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
B. The Initiative for Future Agriculture and Food Systems . . . . . . . . . . . . 123

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C. Land Grant Institutions in Insular Areas . . . . . . . . . . . . . . . . . . . . . . . . 124
D. 1890 Land Grant Universities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
E. 1994 Institutions (Tribally Controlled Land Grant Institutions . . . . . . . . 126
F. Priority Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
G. International Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
H. Biotechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
I. Research Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
J. Competitive Research Grants Administration . . . . . . . . . . . . . . . . . . . . 129
K. Biosecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
L. Research related to Rural and Beginning Farmers . . . . . . . . . . . . . . . . . 130
M. Miscellaneous Research Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
VIII. FORESTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
A. Forest Landowner Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
B. Suburban and Community Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
C. Watershed Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
D. Fire Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
E. Forest Health Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
F. Forestry Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
G. Renewable Resources (RREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
H. International Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
I. Tribal Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
J. National Forest Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
IX. MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
A. Federal Crop Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
B. Noninsured Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
C. Emergency Crop Disaster and Income Loss Assistance . . . . . . . . . . . . . 143
D. Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
E. Migrant and Seasonal Farmworker Assistance . . . . . . . . . . . . . . . . . . . . 144
F. Tree Assistance and Caneberries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
G. Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
H. Anti-trust and Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
I. Animal Transport, Inspection and Health . . . . . . . . . . . . . . . . . . . . . . . . 154
H. Plant Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
J. Pseudorabies Eradication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
K. Preclearance Quarantine Inspections for Hawaii . . . . . . . . . . . . . . . . . . 161
L. Non-Ambulatory Farm Animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
M. Animal Welfare Act (nonfarm animals) . . . . . . . . . . . . . . . . . . . . . . . . 162
N. Genetically Engineered Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
O. Pesticides and School Pesticide Management Plans . . . . . . . . . . . . . . . 166
P. Socially Disadvantaged Farmers and Ranchers . . . . . . . . . . . . . . . . . . . . 167
Q. Outreach and Assistance to Geographically Disadvantaged Farmers and
Ranchers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
R. Farm Marketing Programs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
S. Studies, Reports and Task Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

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This report reflects the contributions of the following CRS Analysts:
Farm Bill Provisions
CRS Analyst
Summary and Introduction
Jean Yavis Jones
Commodity Programs
Jasper Womach, Ralph Chite, Remy

Jurenas, Brenda Branaman, Carol
Canada
Conservation
Jeffrey Zinn
Agricultural Trade and Aid
Geoffrey Becker
Nutrition Programs
Joe Richardson
Farm Credit
Jerry Heykoop
Rural Development
Tadlock Cowan
Research
Jean Rawson
Forestry
Ross Gorte
Federal Crop Insurance
Ralph Chite
Energy
Brent Yacobucci
Animal Welfare
Alex Segarra
Genetically Engineered Food
Pesticides
Linda Schierow
For more information, see: CRS Electronic Briefing Book, Agriculture Policy
and the Farm Bill. [http://www.congress.gov/brbk/html/ebagr1.shtml]), and CRS
Report RL31195, The 2002 Farm Bill: Overview and Status..
Individual topic comparisons include the following CRS Reports:
RL31251, Commodity Support Provisions: Comparison of Current Law with
House and Senate Farm Bills by Jasper Womach;.
RL31255, Resource Conservation Title: Comparison of Current Law with
House and Senate Farm Bills by Jeffrey Zinn; and
RL31271, Energy Provisions the Farm Bill: Comparison of Current Law
with House and Senate Farm Bills. by Brent Yacobucci.

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A New Farm Bill: Comparing the House and
Senate Proposals with Current Law
Introduction
Consideration of new farm policy began more than a year before the major
provisions of the 1996 farm bill expired. This was due, in large part, to persisting low
prices for many major field commodities and several recent years of multi-billion dollar
farm aid packages approved by the Congress to help offset declining farm income. The
current economic environment is quite different from that existing in 1995-96 when the
last farm bill was considered. Prices for many major commodities are stagnant or
declining, supplies are high, and demand (particularly in previous growth markets
overseas) is not growing at the rates existing in the mid-1990s. Moreover, when the
House and Senate began examining new farm policy options early in 2001, a projected
budget surplus negated the kinds of budget deficit pressures placed on farm program
spending in 1995. The recent recession and costs of the U.S. war against terrorism
could alter this situation. The cost differences between the House and Senate-passed
farm bills (some $6.1 billion over ten years) and the quicker pace of spending in the
Senate farm bill are key issues in the current debate. There is pressure to reach an
agreement in time to assist farmers in making their spring planting decisions, and
concern that failure to enact a new farm bill before the next congressional budget
resolution could put the new money allowed by last year’s budget resolution (+$73.5
billion) in jeopardy.
Background
When the current 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 the same time, in the Congress,
legislators were facing increasing demands for changes in 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, was enacted in August 1996, after nearly two years of deliberations, and the
extension of previous law provisions beyond their original 1995 expiration date.1 The
1Many of the provisions of the 1990 Farm law (P.L. 104-624) were scheduled to expire at the
end of 1995. 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. The
Congress extended the expiring provisions of the 1990 law for an additional year until another
farm law could be enacted in 1996. Many of the key policy changes made by the 1996 law
(continued...)

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CRS-2
Agricultural Market Transition Act (AMTA), Title I of the FAIR Act, contained
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 gradually declining fixed, decoupled annual payments (so-
called production flexibility contract (PFC) payments, sometimes called AMTA
payments).2 These were provided each year in lump sums, irrespective of market prices
or farmers’ planting decisions.
Opponents of this gradual phase-out of federal assistance worried about what
would happen if prices and markets declined, as began to happen late in 1997. But bill
proponents pointed out that counter-cyclical income relief would remain under the
marketing loan assistance program. Moreover, they contended that farmers getting
Production Flexibility Contract (PFC) 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 economic conditions were good.
By 1998 conditions in the farm economy had changed. Prices 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. Seven
emergency farm aid bills approved in 1999, 2000, and 2001 provided nearly $33 billion
in additional federal funds to agriculture (primarily to wheat, feedgrain, oilseed, cotton
and rice farmers). This helped to stabilize farm income and to keep average farm family
income higher than the national average for all U.S. households. However, as the
proportion of net farm income drawn from federal aid approached 50%, many in
Congress and elsewhere began to push for longer term changes to underlying farm
policy that would provide more certainty to farmers than reliance on ad hoc annual
financial aid packages.
Thus, the 107th Congress began to examine agriculture policy and solicit proposals
from the various producer groups shortly after coming into session. Hearings were held
by the House and Senate, and testimony was presented both in Washington 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 resolution before the adjournment of the first session on December 19,
2001. A much revised Senate bill was passed on February 13, 2002.
1(...continued)
were authorized through 2002.
2 Payment levels were “decoupled” from target prices, which, in the past, were used to make
payments to farmers when market prices fell below specified targets.

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CRS-3
Legislation in the 107th Congress
History
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 to be 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.3 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.4
Several substitute amendments or alternatives to the Committee bill were offered during
debate in the last session. Among these was the Daschle Amendment (#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 (# 2473) that would have replaced and
completely revised the commodity provisions of the Daschle substitute and
substantially increased spending for nutrition programs5;
! A substitute amendment offered by Senators Roberts and Cochran (# 2671) that
would have modified the Daschle substitute to reflect some of the concerns
expressed by the Administration (discussed below, and,
! A substitute amendment (# 2678) by Senator Hutchinson (Ark.) offering the
House-passed farm bill (H.R. 2646) as a substitute.
3The Committee filed a written report on S.1731 on December 7, 2001 (No. 107-117)
4There were several efforts to invoke cloture in order to cut off debate on this legislation; all
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.
5The 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.

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CRS-4
Early in the second session of the 107th Congress, debate was renewed over the
Senate farm bill (Daschle Substitute Amendment # 2471). On February13, 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 (#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 on farm payments, with savings used 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 additional emergency farm assistance for FY2002, and
a myriad of new conservation, rural development, research, and animal health and
welfare provisions.

Policy analysts assert that a final bill will have to be agreed upon by late March if
new farm policies are to apply to crop year 2002 production. If there is no new farm
law by that time, another multi-billion dollar farm aid package is possible.
Summary Comparison
Although the House and Senate farm bills described in this report vary from one
another in many respects, there are common features to both. First, although farm
commodity support is the main focus of the two bills and generally has gotten the most
attention, both bills contain much more than farm commodity provisions. Other titles
in the bills cover conservation, trade, nutrition programs, credit, rural development,
research, and forestry. Moreover, both bills seek to reverse some commodity policies
established in the last farm bill that, among other things, eliminated federal target prices
for commodities, and discontinued (in the case of wool, mohair, honey) or gradually
eliminated (in the case of dairy) federal support for some commodities.6 They both
substantially increase funding for farm commodity programs, although in different
amounts. Initial estimates for the Senate farm bill showed it raising commodity program
spending (Title I) by $26.8 billion over five years and by $41.1 billion over ten years.
The addition of $6.1 billion underestimated by CBO brings the revised totals to $30.5
billion and just under $46 billion, respectively, over the 5 and 10 year periods. (This
does not include the additional $2.4 billion in “emergency” assistance the Senate also
added for FY2002 commodity programs.) The House bill adds $25.1 billion to
commodity programs over 5 years, and $48.8 billion over 10 years.
The bills also continue 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 are more
generous in this regard. Both bills also make changes to the food stamp program to
assist states in conforming program rules to those of other welfare programs, to
increase commodity donations to domestic food programs, and in the Senate bill,
restore eligibility to certain legal aliens.
6 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 restored federal aid for the honey, wool and mohair programs as part
of several “emergency” funding packages enacted to shore up farm income.

---

CRS-5
Finally, both bills make changes that utilize the $73.5 billion in increased funding
allowed by the budget resolution, although the Senate bill now is estimated to spend
$6.1 billion more than that amount. It also uses up its 10-year funding total more
quickly than does the House, and adds another $2.45 billion in “emergency” farm aid
for FY2002. Some of more significant differences between the bills that are expected
to be the subject of debate in the conference deliberations are described below.
Spending and Time-frame.
The House-passed farm bill has a 10-year life span; the Senate bill authorizes the
programs for 5 years. The time span in the House bill is 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 reflects the more traditional time-frame for multi-year
farm bills, although the new spending is projected over a 10-year period.
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 farm
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 a new farm bill 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 was intended
either for emergency farm assistance or a new farm bill.7
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
commodity programs as well as nutrition programs, trade, research, conservation, and
rural development, among other things. It does not reflect the additional $2.45 billion
in farm “emergency” assistance for FY2002 that the Senate added to its bill.8 It also
does not reflect some $6.1 billion in higher costs that the CBO now says was left out
of earlier projections of the Senate bill commodity provision costs because of an error.
This would bring the new spending in the Senate bill to a total of $79.6 billion.
The Senate bill also spends its new money faster than the House bill -- well over
60% in the first 5 years (FY2002-2006) compared to the House bill which would spend
about half of its new money during that period. Under both bills, well over half of the
new spending goes for commodity programs – $48.8 billion under the House bill and
7As 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.
8 A voice vote to waive this additional funding as “emergency” assistance was approved by
the Senate as part of Amendment # 2839); this designation means that the additional funding
does not require offsets in spending elsewhere to conform to budget rules.

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CRS-6
$46 billion under the Senate bill.9 Other major spending differences between the two
bills include new budget authority for nutrition and conservation programs. The Senate
raises spending for nutrition programs by $9.3 billion over 10 years, compared to an
increase of $3.7 billion for these program in the House bill. For conservation programs,
the Senate adds $17.4 billion, while the House adds $15.8 billion in new funding over
the next 10 years. Some of the additional funding in the Senate bill for nutrition
program expansion comes from savings in commodity program spending that lowers
the farm payment limit for commodity programs. According to CBO estimates, the
payment limit reduction will lower commodity program spending by $695 million over
10 years. (See later section on payment limit issue.)
Current law estimates project that baseline spending for farm commodity programs
for the next 10 years (that is, the amount of federal spending expected with no changes
in law) will be approximately $97 billion. Using current CBO estimates, the additional
funding provided by commodity program changes in the proposed bills would bring
total spending on farm programs to $145.8 billion under the House bill, and $145.4
billion (including the $2.45 billion in emergency farm assistance added for FY2002)
under the Senate bill.
Administration Views
Like its predecessor, the Bush Administration did not put forward a new farm bill.
In fact, in its first year, 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. A
report issued by the Administration on September 19, 2001, laid out a set of
“principles” for farm policy.10 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 encourages
overproduction of commodities, does not target benefits to farmers most in need,
jeopardized global markets, and increases 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 reiterated concern about
the bill’s potential to undermine U.S. efforts to phase out foreign countries’ export
9This 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.
10Food and Agriculture Policy: Taking Stock for the New Century.

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CRS-7
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.
In early January 2002, USDA officials indicated that they expect Congress and the
Bush Administration to agree on a farm bill by early March, 2002. OMB officials
informed the Congress that the President supports the $73.5 billion in additional farm
spending over ten years that was permitted by last year’s congressional budget
resolution. This appears to have removed some of the concerns that failure to enact a
new farm bill before the next budget resolution could risk loss of the new funding for
farm bill programs.
In late February, following passage of the Senate farm bill, the Administration
indicated that it preferred the more gradual approach to new spending in the House-
passed farm bill, to the more rapid use of the new money provided by the Senate
amendment. Administration officials fear the potential for the Senate approach to
exhaust federal farm support in the early years and force substantial amounts of new
spending in later years. On the other hand, USDA officials have expressed concern
about the large amount of new funding in the House bill for farm commodity programs,
and the Administration appears to favor some of the nutrition program provisions in the
Senate bill.
Selected Issues
Commodity program provisions. Both bills maintain a system of fixed annual
payments to wheat, feedgrain and cotton and rice farmers, although the House appears
to provide more assistance in this form than does the Senate.11 Both bills add soybean
growers to those eligible for these fixed payments. Both bills also maintain marketing
loan assistance, but the House bill sets loan rates at, or slightly below, those set under
current law while the Senate substantially raises these rates. On the other hand, while
both bills provide new counter-cyclical income support, the House bill appears to
provide substantially more funding for this supplemental assistance than does the
Senate. In sum, the House approach tends to rely more heavily on fixed annual
payments and greater levels of counter-cyclical income support than the Senate, which
puts more emphasis on higher levels of marketing loan assistance. Both bills maintain
the 1996 policy changes that provided broad planting flexibility to farmers receiving
federal program payments and eliminated annual cropland set-aside tools formerly used
to reduce production to avoid price-depressing surpluses or control federal farm
spending.
11Official CBO estimates are not available at the time of this report because of the recently
discovered error that underestimated the cost of Senate commodity program provisions by
some $6.1 billion over 10 years. If the full amount of that error is added to the earlier CBO
estimates of the costs of the Senate commodity provisions, the total would be $45.9 billion,
compared to $48.8 billion in the commodity programs cost estimates for the House farm bill.

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CRS-8
Farm Payment Limits. Current law limits on payments to farmers are revised
and applied to new programs under both the House and Senate farm bills. The Senate
limitations, which are more stringent than those in the House bill are opposed by most
farm groups.
In general, the farm payment limits first imposed in 1970 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. 12 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 quite 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 the more stringent payment
limits that were added to the Senate farm bill during floor debate.13
The House bill raises the current law limit on contract payments from $40,000 per
year per person to $50,000. It also sets a maximum of $75,000 in payments for grains,
cotton, and oilseeds, and separately another maximum of $75,000 for peanuts under
the new counter-cyclical income support program it creates. By contrast, the Senate
bill sets a combined maximum per person payment of $75,000 for both fixed payments
and counter-cyclical payments, and applies this limit to all eligible crops, including the
newly eligible peanuts (which are treated separately by the House bill).
Under the marketing loan assistance program, the House bill would raise the
previous farm law limit from $75,000 to $150,000 for wheat, feedgrains, oilseed,
cotton, and rice payments, and would establish separate payment limits of $150,000 for
each of the peanut, honey, wool, and mohair programs.14 The Senate bill establishes
one limit of $150,000 in marketing loan assistance for all of the eligible commodities
(wheat, feedgrains, oilseeds, cotton, rice, honey, wool, lentils, dry peas, and chick peas
15). It also applies this limit to the value of marketing certificates and loan forfeitures
which, under current law and the House bill, are not counted toward the payment limits.
Additionally, the Senate bill contains language that would prohibit those with adjusted
gross incomes above $2.5 million annually from receiving any farm payments.16 The
12This followed substantial increases in farm spending enacted under several multi-billion
farm “emergency” aid packages.
13 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
14 The 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 at that level.
15 The Senate bill does not contain assistance for mohair.
16 The lower payment limits were added during Senate floor debate under an amendment
(continued...)

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CRS-9
10-year saving from the Senate payment limit provision, as estimated by the CBO, is
$695 million ($405 million over 5 years), most of which is used by the Senate bill to
help fund a food stamp program expansion. Most analysts expect the impact of the
Senate payment limit to be the greatest for large rice and cotton farmers whose federal
payments tend to be larger than those producing other field crops.17
Proponents of limits 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 charge that this system encourages the
growth of large corporate farms and helps to drive small and mid-sized farms out of
business. Opponents of payment limits (which include nearly all of the farm and
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 profitable
efficiencies. Moreover, they point out that many of the farms receiving large payments
also have similarly large costs of production and might not be able to operate as
efficiently or productively if federal support was not tied in some way to output.
Federal Budget and Trade Agreement Issues. The possible return of deficit
spending, or at least substantially depleted budget surpluses because of the War on
Terrorism and an economic slowdown, raises questions about how much funding will
be available for changes in farm policy. There is some concern about whether the
additional money agreed to in the past budget resolution will be honored if a farm bill
is not passed before the next budget resolution. Both the Administration and
congressional leaders, have 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 over ten years.
As mentioned earlier, the Administration and the Senate differ over whether the
next farm bill should spend most of additional funding in the early years (and possibly
exhaust this money sooner rather than later) or provide for a more gradual release of
the funds. There is some dispute about how much money should go to commodity
programs versus conservation and nutrition programs. There also is concern that the
new commodity program spending in both bills could exceed the $19 billion cap on
spending for market-distorting domestic support that the U.S. agreed to abide by under
the Uruguay Round Agreement. In response to this concern, both bills contain differing
provisions that provide for some kind of adjustments if the spending cap is breached.
One issue between the chambers is the approach for making determinations that an
adjustment is needed and how the adjustments should work. Some policy analysts
question the mechanics of these adjustment provisions and have expressed doubt about
their practical implementation.
16(...continued)
(#2826) offered by Senators Dorgan and Grassley
17 Among the reasons are the historically high farm subsidy levels set by Congress for cotton
and rice relative to other field crops, and high input costs for these crops.

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CRS-10
Dairy Policy. Disagreement about the extension, or reauthorization of the
Northeast Dairy Compact and its possible extension to other regions of the country
splits along regional lines. The House farm bill does not extend the 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 finally approved Senate bill that would replace the NE
Dairy Compact. This alternative would create a new counter-cyclical payment program
for dairy farmers in all states, with one quarter of the $2 billion allotted for the program
going to Northeast states. The earmark of funds for the Northeast is intended to offset
the loss of the higher farm milk prices permitted by the now defunct Compact.
Providing direct federal assistance to dairy farmers (rather than setting prices that pass
along higher costs to processors and consumers) concerns some who worry about
further expansions in farm assistance and the federal budget deficit. Others wonder
how this will be viewed by European and other trading competitors that the U.S. is
putting pressure on to reduce their domestic support programs.
Conservation Programs. Major points of contention include questions about
how much funding should be provided for these programs versus farm commodity
programs, what portion, if any, of the funding should be mandatory, and who should
retain control of water rights when farmers put land into conservation programs
(especially wetland programs).
The Senate bill provides more money for conservation programs ($17.4 billion)
than the House bill ($15.8 billion) over the next ten years. This difference is expected
to be an issue in the Conference Committee, as are some of the new programs in the
Senate bill. Another issue related to conservation is a Senate provision that would
allow USDA to purchase water rights from farmers. This provision evoked considerable
debate about the potential loss of state and local control of water rights to the federal
government through farmer participation in wetlands and other conservation programs.
Moreover, some farm groups have indicated that they would rather have no farm bill
than one that permits greater federal control of water rights. Conversely, some
environmentalists, although supportive of many of the new initiatives in the Senate bill,
worry that the efforts of some to use conservation programs to increase farm payments
may weaken the environmental and conservation standards for participating in these
programs. There also are some concerns that increased payments for various farm
conservation activities may subject U.S. trade negotiators to complaints that the U.S.
is using environmental concerns to circumvent trade agreements that limit domestic
farm support.
Concentration in the livestock sector. A livestock packers amendment offered
by Senator Tim Johnson and others was accepted during Senate floor debate. It would
prohibit 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 growing 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 the
prices they pay for livestock, and keep producer prices low. The restriction is supported

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CRS-11
by the American Farm Bureau and Iowa Pork Producers Association, two major farm
interest groups. It is opposed by most meat processors and some livestock producers.
An amendment modifying the meatpacker restrictions to clarify that they do not affect
livestock under marketing contracts was adopted during Senate deliberations. Another
amendment calling for a study of this prohibition also was adopted. The restrictions on
packer ownership are expected to be a sticking point in conference deliberations.
Comparison Caveats
The following table compares current law or policy with selected provisions in the
House-passed farm bill (H.R. 2646) and the Senate Amendment to H.R. 2646 approved
by the Senate. It updates an earlier version that presented the Daschle substitute to S.
1731 (S. Amdt. 2471) for comparison with the House bill. It is intended to assist those
interested in the major issues before the Conference Committee that will be deliberating
on the next farm bill, and to identify the major differences from current law, and
between the House and Senate bills. It is not a comprehensive comparison of all of the
provisions in each of the bills and current law. Covering all of the provisions in these
bills and comparing them to current law and each other is not feasible given the size of
the bills (especially the Senate bill) and the time constraints on its usefulness. Thus, this
report narrows its scope to compare significant changes being proposed and areas of
major difference between each of the chambers’ bills. Judgments about which
provisions to include were made by each of the CRS specialists covering the relevant
titles, with some modifications by the coordinator and additions by the coordinator.
The report presents the comparison under topics, using the Titles of the farm bills
as the organizing theme (although this does not work in all cases because of the
differences in the bills’ configurations). It is presented as much as possible in the same
order as the House and Senate bills, but the sections are not necessarily in the same
order as the bills. Rather, they are grouped by topic. Funding information in this
report is based on CBO estimates, unless otherwise noted. In several instances changes
to one title of a bill impact on other titles. For instance, the commodity payment limit
in the Senate bill (under Title I) allows additional funding for nutrition programs (Title
IV). This is noted in most cases where it occurs, and explains why budget estimates
displayed by title may differ from those displayed by program. Analysts have tried to
cross-reference provisions presented under the outlines categories. The report tries to
follow the order and organization of the House and Senate bill presentations but is not
able to do so in all instances.

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CRS-12
Comparison of Selected Provisions: Current Law and House and Senate Farm Bills
(H.R. 2646 and the Senate Amendment)
I. COMMODITY PROGRAMS
COMMODITY PROGRAMS -
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
Title:
Federal Agriculture Improvement and
Farm Security Act of 2001. [Section 1]
Agriculture Conservation and Rural
Reform (FAIR) Act of 1996 (P.L. 104-
Enhancement (ACRE) Act of 2001. [Section
127) [ Section 101]
1]
Definitions:
1. “Considered Planted” is defined under
1. No provision
1. The definition of “Considered Planted”
the FAIR Act to mean “acreage considered
is revised to mean any acreage planted that
planted” under Title 5 of the Agricultural
producers were prevented from planting
Act of 1949, and other acreage the
because of a drought, flood, or other natural
Secretary considers fair and equitable.
disaster or condition beyond control of the
This includes: (a) any reduced or diverted
owner or producer, as determined by the
acreage; (b) acreage that could not be
Secretary, and any acreage not planted to
planted because of drought, flood or other
another contract commodity (except for a
natural disaster or condition beyond farmer
contract commodity produced under an
control; (c) acreage equal to the difference
established practice of double cropping).
between permitted acreage for a crop and
[Section 102]
the planted crop if it is devoted to
conservation uses or the production of
commodities permitted under programs for
crop years 1991-1997; (d) any acreage the
Secretary determines is necessary to
establish a fair crop acreage base; (e)
acreage up to 20 percent of crop acreage
base for feed grains or wheat if planted to
dry peas and lentils; and (f) the crop
acreage base if producers forego farm

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CRS-13
COMMODITY PROGRAMS -
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
payments and do not plant to the crop or
any fruit or vegetable not designated as
industrial or experimental. [Sec. 102(2)of
FAIR Act and Section 503(c) of the
Agricultural Act of 1949 (which is one of
several permanent laws whose provisions
often are suspended or temporarily or
permanently revised or amended by farm
bills)]
2. “Contract” and “Production
2. No Provision
2. Defines “Contract” as a contract entered
Flexibility Contract” defined to mean a
into under subtitle B, Nonrecourse Marketing
contract entered into under the terms of
Assistance Loans and Loan Deficiency
Section 111 of the FAIR Act of 1996,
Payments. [Section 102]
which establishes fixed , annual, lump sum
payments to farmers. [Section 102(3) of
the FAIR Act]]
3 . “Contract Acreage” is defined to mean
3. No Provision
3. Redefines “contract acreage” to mean the
one or more crop acreage bases established
acreage determined under section 111(f) of
for contract commodities under Title V of
the bill, which refers to “direct and counter-
the Agriculture Act of 1949 that would
cyclical payments.”
have been in effect for the 1996 crop but
(Section 102(4)]
for the suspension of existing target price
support programs under Section 171 (b)(1)
of the Fair Act of 1996.[Section 102]
4. “Contract Commodity” is defined to
4. “Covered Commodity” replaces
4. “Contract Commodity” is redefined to
mean wheat, corn, grain sorghum, barley,
“covered” for “contract” and adds soybeans,
add oilseeds to current law. [Section 102]
oats, upland cotton, and rice. [Section
and other oilseeds to current law . [Section
102]
100]
5. “Contract Payment” is defined to
mean production flexibility contract

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CRS-14
COMMODITY PROGRAMS -
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
payments to wheat, corn, grain, barley,
5. No provision
5. “ Contract Payment” is a payment made
oats, upland cotton and rice farmers
to wheat, corn, grain sorghum, barley, oats,
[Section 102]
upland cotton, rice and oilseed farmers under
Subtitle B, Nonrecourse marketing assistance
loans and loan deficiency payments. [Section
102]
6. “Counter-cyclical Payment”
6. “Counter-cyclical Payment” means a
6. No definition
No provision
payment made to producers under section
105, Availability of Counter-cyclical
Payments. [Section 100]
7. “Fixed Decoupled Payment”
7. “Fixed Decoupled Payment” means a
7. No definition.
payment made to producers under section 104
Availability of Fixed Decoupled Payments.

[Section 100]
8. “Farm Program Payment Yield”
8. “Payment Yield” is the yield established
8. “Payment Yield” means the payment yield
means the farm program payment yield
under section 102 for a covered commodity.
determined under Section 111(g) [Section
established for the 1995 crop of a contract
[Section 100]
102]
commodity under section 505 of the
Agriculture Act of 1949 [Section 101]
9.“Target price
9. “Target Price”means the price per bushel
9. No provision
No provision
(or other appropriate unit) of a covered
NOTE: Eliminated for most field commodities
commodity used to determine the payment
by the AMTA of 1996.
rate for counter-cyclical payments.[Section
100]

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CRS-15
COMMODITY PROGRAMS
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
Agricultural Market Transition Act
Farm Security Act (FSA) of 2001, Title I,
Agriculture, Conservation and Rural
(AMTA), Title I of the Federal
Subtitles A, B, and D.
Enhancement (ACRE) Act of 2001, Title 1,
Agriculture Improvement and Reform
Subtitles A and B.
Act of 1996, Subtitles B, C, D, and E,
and miscellaneous agriculture laws.
A. GRAINS et. al. (Wheat, Corn, Grain Sorghum, Barley, Oats, Upland Cotton, Rice, Soybeans and Minor Oilseeds)
1. Fixed, Decoupled Payments
a. Eligibility
Eligibility for PFC contracts is extended
Farms with existing PFC contracts, and
Same as House bill. [Section 111]
to producers previously enrolled in a
other producers with a history of contract
grain or cotton program in at least 1 of
crop or oilseed production from 1998-01
the 1991-95 crop years. Conservation
are eligible to sign up for fixed, decoupled
Reserve Program cropland expiring or
payments. Soybeans and minor oilseeds
terminated after Jan. 1, 1995 is eligible.
also are made eligible for what will be
Soybeans and minor oilseeds are not
known as “agreement” crops. Provision is
eligible PFC commodities. [Section 111]
made for expiring CRP acres to be added to
the agreements. [Section 101(a) and
[NOTE: Payment limits are covered
103(a)]
under section N]
b. Sign-Up Period
The sign-up period is required to begin
Establishes a sign-up period, lasting not
Establishes a sign-up period, that begins not
not later than 45 days after enactment
more than 180 days after enactment, during
less 45 days after enactment and lasts for 180
and end August 1, 1996. Production
which producers sign “agreements”
days, during which producers sign “contracts”
flexibility contracts (PFCs) cover 7 years,
covering crop years 2002 thru 2011 (10
covering crop years 2002 thru 2006 (5 years).
1996 thru 2002 crops. [Section 112]
years). [Section 110]
[Section 111]

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d. Conservation and Wetlands
Compliance
Producers are required to comply with
Same as current law. [Section 106]
Same as current law. [Section 111 as it
already existing conservation
amends Section 111 of FAIR Act]
requirements on highly erodible land and
with already existing prohibitions on
draining wetlands for purposes of crop
production. These compliance
requirements did not impose any new
obligations on producers. [Section 111]
e. Planting Flexibility and Limitations
Farmers are allowed to plant any crop
Same planting flexibility allowance as
Same planting flexibility allowance as current
except fruits and vegetables (other than
current law, but wild rice is added to
law, but wild rice is added to exceptions
lentils, mung beans, and dry peas) on
exceptions. [Section 107]
beginning in 2003. [Section 113]
contract acreage and there are no
planting restrictions on non-contract
acreage. Cropland not planted has to be
devoted to a conserving use to prevent
erosion and can not be converted to non-
agricultural uses. [Section 118]
Violations of planting flexibility
No provisions for violations.
For first time, unintentional violations of
limitations generally result in termination
planting flexibility limitations, the penalty shall
of the contract on each farm in which the
be a refund or reduction of future payments
producer has an interest. [Section 116]
amounting to twice the payment amount on
the involved acres. [Section 112]

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f. Program Base Acres and Payment

Yields
Each farm’s base acres and payment
Base acres for each crop are either the acres
Same as House bill. [Section 111]
yields are used to calculate the program
specified in existing contracts, or average
benefits to the producer. The base acres
acres planted to eligible crops from 1998
and yields for eligible crops are those that
thru 2001. Accommodation is made for
would have applied in 1996 under the
double cropping, peanut acres, and CRP
then expiring program. Under the
acres. Base acres cannot exceed total
expiring program, the “acreage base” for
cropland on a farm. [Section 103]
each program crop is the average acres
planted/considered planted the prior 5
years for wheat, feed grains and the prior
3 years for upland cotton, rice. [Section
102]
Program payment yields for each crop
The program payment yield for each crop is
The program payment yield is either: the yield
are frozen at 1986 program levels.
the: payment yield in effect for 2002 under
specified in existing contracts, or average
[Section 102]
an existing production flexibility contract; or
yield from 1998 thru 2001. There is no
a similarly appropriate yield for farms
requirement to adjust yields back to an 1981-
[Note: Soybeans and minor oilseeds are
without past contracts. Oilseed yield is the
85 equivalent. In calculating payment
ineligible under current law and there are
average yield from 1998-01, adjusted back
amounts, payment acres are 100% of base
no provisions for establishing base acres
to a 1981-85 equivalent. [Section 102]
acres. [Section 111]
and yields for oilseeds.]
Payment acres equal 85% of base acres in
calculating payment amounts. [Section
100(9) and 103(f)]
g. Change in Farm Ownership or
Operator
Contract obligations can be assumed by
Same as current law. [Section 106(c)]
Same as current law. [Section 111]
new owners. Otherwise the contract is
terminated. Changing operators does not
affect program acres or yields. [Section
117]

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h. Payment Rates (see also Payment
limits under subsection N of this section)
Farmers who sign production flexibility
Similar framework to current law.
Similar framework to current law.
contracts (PFC) in 1996 receive fixed
Farmers who sign “agreements” receive
Farmers who sign contracts receive fixed,
annual payments for 7 years, unrelated to
fixed, decoupled annual payments for 10
decoupled annual payments for 5 years,
crops or acreage actually planted. The
years, unrelated to crops or acreage actually
unrelated to crops or acreage actually planted.
payment quantity for each commodity is
planted. The payment quantity for each
The payment quantity for each commodity is
85% of the contract acreage times the
commodity is 85% of payment acres times
100% of payment acres times the payment
payment yield times the payment rate.
the payment yield times the payment rate.
yield times the payment rate.[Section 111]
[Section 114]
[Section 104]
Estimated 2002 contract payment rates:
Payment rates are specified for all years as
Payments rates are specified for 2002/03,
follows:
2004/05, 2006 as follows:
Wheat, $0.46/bu
Wheat, $0.53/bu
Wheat, $0.45, $0.225, $0.113/bu
Corn, $0.26/bu
Corn, $0.30/bu
Corn, $0.27, $0.135, $0.068/bu
Sorghum, $0.31/bu
Sorghum, $0.36/bu
Sorghum, $0.31/$0.27, $0.135, $0.068/bu
Barley, $0.20/bu
Barley, $0.25/bu
Barley, $0.20, $0.10, $0.05/bu
Oats, $0.021/bu
Oats, $0.025/bu
Oats, $0.05, 0.$025, $0.013/bu
Cotton, $0.0556/lb
Cotton, $0.0667/lb
Cotton, $0.13, $0.065, $0.0325/lb
Rice, $2.04/cwt
Rice, $2.35/cwt
Rice, $2.45, $2.40, $2.40/cwt
Soybeans, not a contract crop
Soybeans, $0.42/bu
Soybeans, $0.55, $0.275, $0.138/bu
Minor Oilseeds, not contract crops
Minor Oilseeds, $0.0074
Minor Oilseeds, $0.01, $0.005, $0.0025/bu
The law does not specify actual payment
rates, but states the total funds available
each year and the allocation share for
each commodity. [Section 113]
No provision
Total payments are to be reduced by $100
No comparable provision.
million on a pro rata basis (about 2% based
on CBO estimates) and these funds are to be
devoted to specified rural development
programs. [Section 943]

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Not relevant
FY2002 PFC payments under current law
No explicit reference is made to discontinuing
are to be discontinued after enactment, and
payments under PFC contracts, or to
any amount already paid is to be deducted
payments already made under to old law.
from the amount due under this Act.
[Section 108]
i. Time of Payment
The producer can choose to receive 50%
The producer can choose to receive 50% of
Same as House bill. [Section 111]
of the payment on December 15 or
the payment on or after December 1 and the
January 15 and the remainder not later
rest will be payed not later than September
than September 30 of each fiscal year.
30 of each fiscal year. [Section 104(d)]
[Section 112(d)(1 and 2)]
Alternatively, for FY1999-02, the
producer can choose to receive the full
amount or portions at times during the
fiscal year chosen by the producer.
[Section 112(d)(3) as added by PL 105-
228, Section 2]
2. Counter-Cyclical Deficiency Payments and Target Prices
a. Eligibility
Eliminates counter-cyclical target price
Restores counter-cyclical target price
Same as House bill. [Section 111]
deficiency payments that were enacted in
deficiency payments that ended in 1995.
1973 and functioned through 1995.
Farms that have signed agreements are
When effective, farmers were paid the
eligible to receive counter-cyclical payments
difference between the target price and a
each year that average market prices are less
lower season average farm price on a
than target prices. [Section 101]

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specified proportion of the a farm’s crop
base acres.
NOTE: Payment limits are discussed
under subsection N of this section.]
b. Target Prices and Payment Rates
The payment amount for each commodity is
Same as House bill, except that the payment
85% of payment acres times the payment
amount for each commodity is 100% of
Not applicable.
yield times the payment rate. The payment
payment acres times the payment yield times
rate is the difference between a) the loan
the payment rate. [Section 171]
rate (or average market price if it is higher
than the loan rate) plus the fixed decoupled
payment and b) the “target price.”[Section
105]
Target prices are for all years are specified
Target prices are for all years are specified as
as follows:
follows:
Wheat, $4.04/bu
Wheat, $3.446/bu
Corn, $2.78/bu
Corn, $2.3472/bu
Sorghum, $2.64/bu
Sorghum, $2.3472/bu
Barley, $2.39/bu
Barley, $2.1973/bu
Oats, $1.47/bu
Oats, $1.5480/bu
Upland Cotton, $0.736/lb
Upland Cotton, $0.6793/lb
Rice, $10.82/cwt
Rice, $9.2914/cwt
Soybeans, $5.86/bu
Soybeans, $5.7431/bu
Minor Oilseeds, $0.1036/lb
Minor Oilseeds, $0.1049/lb
3. Marketing Assistance Loans and LDPs
a. Eligibility
Any wheat, feed grains, upland cotton,
Marketing assistance loans and loan
Same as House bill. [Section 121, 122]
and rice produced on PFC farms is
deficiency payments (LDPs) are available

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eligible for marketing assistance loans or
for agreement crops (grains, upland cotton,
LDPs, whether or not it is produced on
oilseeds) on all farms where they are
contract acres. These commodities are
produced, whether or not they have signed
not eligible for loan or LDPs if produced
agreements). [Section 121]
on farms without contracts. Any oilseed
is eligible for marketing assistance loans
or LDPs, whether or not the farm has a
contract. [Section 131]
[See Payment limits under subsection N.]
b. Term of Loans
Loans on grains and oilseeds are for 9
Same as current law. [Section 123]
Same as current law. [Section 124]
months beginning on the first of the
month after the loan date. Loans on
upland cotton are for 10 months
beginning on the first of the month before
the loan date.
c. Loan Repayment
For grains and oilseeds, marketing
Same as current law. [Section 124]
Same as current law. [Section 125]
assistance loans can be repaid at the
lesser of the loan rate plus interest, or the
rate determined by USDA that minimize
forfeitures, minimize the accumulation of
CCC-owned stocks, minimize the cost of
storage, and allow for free and
competitive domestic and international
marketing. [Section 134]
For upland cotton, loans can be repaid at
the lesser of the loan rate plus interest, or
the prevailing world market price

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adjusted to U.S. quality and location.
Additional adjustments to the world price
are made when the world price declines
to near the loan rate , and when the price
of U.S. cotton exceeds the price of
competing cotton in the world market.
[Section 134]
In the event of a default on a loan at the
maturity date, the commodity pledged as
collateral reverts to CCC ownership. No
further action is taken against the
borrower because marketing assistance
loans are nonrecourse. [Section 131]
d. Loan Deficiency Payments (LDPs)
Producers with grain, upland cotton, or
Same as current law. [Section 125]
Same as current law. [Section 126]
oilseeds eligible for marketing assistance
loans instead can choose to receive loan
deficiency payments. The LDP is the
difference between the loan rate and the
loan repayment rate established by the
USDA. [Section 135]
e. Loan Rates
Marketing assistance loans and loan
Loan rates generally are to be not less than
Fixed, specific loan rates are as follows:
deficiency payments (LDPs) continue at
85% of the moving 5-year Olympic average
1995 rates. Authority is provided for
of prices received by producers, or more
USDA to lower the loan rates when
than:
stocks accumulate. Loan rates generally
are to be not less than 85% of the moving
5-year Olympic average of prices

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received by producers, or more than:
Wheat, $2.58/bu
Wheat, $2.9960/bu
Wheat, $2.58/bu
Corn, $1.89/bu
Corn, $2.0772/bu
Corn, $1.89/bu
Sorghum, $1.89/bu
Sorghum, $2.0772/bu
Sorghum, $1.69/bu
Feed Barley, $1.70/bu
Barley, $1.9973/bu
Barley, $1.71/bu
Malting Barley, $1.65/bu
Oats, $1.21/bu
Oats, $1.4980/bu
Oats, $1.14/bu
Cotton, max $0.5192-min $0.50/lb
Cotton, $0.5493/lb
Cotton, $0.5192/lb
Rice, must equal $6.50/cwt
Rice, $6.4914/cwt
Rice, $6.50/cwt
Soybeans, $4.92/bu
Soybeans, $5.1931/bu
Soybeans, $5.26
Minor Oilseeds, $0.087/lb
Minor Oilseeds, $0.0949/lb
Minor Oilseeds, $0.093/lb
[Section 122]
[Section 171]
Rice can not be below $6.50, soybeans
can not be below $4.92, minor oilseeds
can not be below $0.87
[Section 132]
P.L. 106-224, Section 206(a)(2) and (3),
Retroactively, for the 2001 crops, as was
Same as House bill [Section 169]
made loans and LDPs available on non-
the case for 2000, LDPs are available on
PFC farms only for crop year 2000.
non-PFC farms that produced contract
crops and oilseeds. [Section 125(f)]
[See Payment limits under Subsection N]
B. OTHER COMMODITIES
a. Dry Peas, Lentils and Chickpeas
1. Marketing Loans and LDPs
No support is authorized for dry peas,
Same as current law.
Marketing loans and LDPs are available on all
lentils, large chickpeas, small chickpeas.
production at the following rates:
Dry Peas, $6.78/cwt
Lentils, $12.79/cwt
Large Chickpeas, $17.44/cwt

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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 as it amends Section
111]
b. Grazed Wheat, Barley, and Oats
1. Payments in Lieu of LDPs
P.L. 104-127 made no provision for
Wheat, barley, and oats that are grazed and
Similar to House bill, but includes grain
LDPs on grazed wheat, barley and oat
not harvested, but would be eligible for
sorghum along with wheat, barley and oats as
acreage. P.L. 106-224, Section 205,
LDPs if harvested, will receive LDPs under
eligible crops. [Section 127]
provided for LDPs on grazed acres only
similar rules to those that apply to harvested
for 2001 crops.
crops. Federal crop insurance is not
allowed on grazed land agreements.
[Section 126]
c. High Moisture Corn and Sorghum
1. Recourse Loans
Recourse loans are available on high
For farms that normally harvest corn or
No provision is made to support high
moisture corn and grain sorghum. Loan
sorghum in a high moisture condition,
moisture corn or sorghum.
rates are determined by the USDA. Only
recourse loans are available at rates set by
producers with PFC contracts are
the USDA. Farms need not have signed
eligible. [Section 137(a)]
“agreements.” [Section 129(a)]

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d. ELS and Seed Cotton
1. Recourse Loans
Recourse loans are available on upland
Recourse loans are available for all upland
No provision is made to support seed cotton.
seed cotton for farms with PFC
and ELS seed cotton, at rates set by the
contracts, and on any farm producing
USDA. Farms need not have signed
ELS seed cotton. [Section 137(b)]
“agreements.”[Section 129(b)]
2. Marketing Assistance Loans
Marketing assistance loans for ELS
Same as current law. [Section 122]
Marketing assistance loans for ELS Cotton
Cotton are to be not less than 85% of the
are equal to $0.7965/lb.[Section 171]
moving 5-year Olympic average of prices
received by producers, or more than
$0.7965/lb.[Section 132]
e. Hard White Wheat Incentive Payments
1. Incentive Payments
No special support provision is added for
Same as current law, no added support
For crop year 2003 through 2005, an
hard white wheat. However, hard white
provision is made for hard white wheat.
additional $40 million is to be paid to
wheat, like all other wheat, does qualify
producers to ensure that hard white wheat on
for contract payments and marketing loan
not more than 2 million acres meets minimum
program benefits.
quality standards. [Section 164]
f. Cotton Competitiveness Provisions for Processors and Exporters
1. Marketing Certificates
Marketing certificates or cash payments
Some changes from current law.
Same as current law. [Section 121(b)]
are made to domestic users and exporters
Marketing certificates or cash payments are
of upland cotton whenever the 4-week
made to domestic users and exporters of

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price of U.S. cotton gets too high
upland cotton whenever the 4-week price of
compared to world cotton price (i.e.,
U.S. cotton gets too high compared to
1.25¢/lb higher), or is not high enough
world cotton (i.e., 1.25¢/lb higher), or is not
compared to the U.S. cotton loan rate
high enough compared to the U.S. cotton
(i.e., less than 130% higher). [Section
loan rate (i.e., less than 134% higher).
136(a)]
[Section 127(a)]
2. Import Quotas
A special import quota is imposed on
A special import quota is imposed on
Same as current law. [Section 121(b)]
upland cotton when U.S. prices exceed
upland cotton when U.S. prices exceed
world prices by 1.25¢ for 10 weeks.
world prices by 1.25¢ for 4 weeks. [Section
[Section 136(b)]
127(b)]
A limited global import quota is imposed
Same as current law. [Section 127(b)]
Same as current law. [Section 121(b)]
on upland cotton when U.S. prices
average 130% of the previous 3-year
average of U.S. prices. [Section 136(c) ]
g. Sugar
1. Price Support Loans
Raw cane sugar and refined beet sugar is
Retains same nonrecourse loan rates as
Same loan rates as current law.
supported with nonrecourse loans at 18¢
current law, 18¢/lb. raw cane, and 22.9¢/lb.
Same in-process sugar loans as House bill.
and 22.9¢/lb respectively. [Section
refined beet by preserving Section 156(a) &
[Section 141(e)]
156(a) and (b)] The loan rates may be
(b) of the FAIR Act. [Section 151(a)]
Same authority to reduce loan rates as House
reduced if negotiated reductions in
In-process sugar is newly eligible for loan at
bill. [Section 141(a)]
support are achieved for other sugar
80% of full loan rates. [Section 151(e)]
countries. [Section ]156(c)] A recourse
Loan rates may be reduced if competing

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loan program when the tariff rate quota
nations sufficiently reduce support. [Section
on imports is less than 1.5 million short
151(c)]
tons was eliminated by P.L. 106-387,
Section 836.
2. No Net Cost Mandate
No provision mandating no net cost.
Loan programs to be operated at no net cost
Same no cost policy as House bill. [Section
by avoiding forfeitures. [Section 151(f)]
141(f)]
3. Loan Forfeiture Penalty
Forfeiture penalty is retained by preserving
The loan forfeiture penalty is eliminated.
A forfeiture penalty of 1¢ per pound on
Section 156(g) of the FAIR Act.
[Section 141(d)]
raw cane sugar (an equivalent amount for
beet sugar) is assessed on loan
forfeitures. This effectively reduces the
level of support. [Section 156(g)]
4. Import Quotas
A global import quota of not less than
No change from current law.
Same as House bill, except authorizes the
1.256 million short tons is set each year
USTR in consultation with the USDA to
by USDA under authority of the
reallocate any shortfall of sugar not shipped
Harmonized Tariff Schedule of the
against a country’s share of its sugar import
United States. The quota is allocated
quota to other quota-holding countries
among countries by U.S. Trade
[Section 144]
Representative. [HTSUS, chapter 17,
additional U.S. note5. USTR announces
a separate allocation for additional sugar
entering from Mexico as agreed in the
sugar side letter to NAFTA.]

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5. Marketing Allotments
The authority to impose mandatory
Sugar marketing allotments are restored and
Similar to House bill, but provision is made
marketing allotments on domestic sugar
are to be shared between beet sugar and raw
for new cane processor entrants (including
production is suspended. [Section
cane at 54.35% and 45.65%. Allotments
mainland states not previously producing
171(a)(1)(E)]
are suspended when imports exceed 1.532
cane). [Section 143]
million short tons. [Section 152]
6. In-Kind Payments
No provision.
CCC is authorized to make in-kind
Same authority to make in-kind payments for
commodity payments from stored
reduced production as House bill. [Section
inventories to processors in exchange for
141(f)]
reduced sugar production. [Section 151(f)]
7. Marketing Assessment
Processors must pay an assessment on all
The assessment on all sugar marketings is
Same as House bill. [Section 141(c)]
marketings of sugar to CCC equal to a
eliminated. [Section 151(b)]
specified percentage of the loan rate.
[Section 156(f)] P.L. 106-78, Section
803(b), suspended the assessment for
FY2000 and FY2001. P.L. 107-76,
Section 749, delays remittance of 2002
assessments until September 2, 2002.
8. Interest Rate on Loans
The interest rate on loans is 1% above
Interest rate on loans is equal to CCC cost
Same interest rate on loans as House bill.
the CCC cost of borrowing money.
of funds. This is 1% less than the interest
[Section 141(j)]
[Section 163]
rate for other commodities. [Section
151(h)]

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9. Storage Facility Loans
Storage facility construction and
Same as House bill. [Section 142]
improvement loans are to be made available
No provisions for storage facility loans.
to processors. [Section 153]
h. Peanuts
1. Poundage Quotas and Nonrecourse
Loans
National poundage quota is set to reflect
Peanut quotas are terminated and farmers
Similar to House bill, except quota
the projected domestic demand for edible
are compensated $1,000/ton (50¢/lb)
compensation is $1,100 (55¢/lb)
peanuts. [Section 155]
($200/ton/year for 5 years). [Section 170]
($220/ton/year for 5 years). [Section 152]
2. Non-recourse Marketing Assistance
Loans
The price of peanuts sold for domestic
Nonrecourse loans are replaced by
Marketing assistance loan rate set at $400/ton
edible consumption (quota peanuts) is
marketing assistance loans. Marketing
(20¢/lb) available for all peanut production
supported through nonrecourse loans at
assistance loans set at $350/ton (17.5¢/lb)
without distinction of end use. [Section 151 ]
$610/ton (30.5¢/lb). The price of
available for all peanut production without
additional peanuts (nonquota peanuts,
distinction of end use. [Section 167]
those exported or crushed for oil and
meal) is supported at a competitive level
(set by USDA at $132/ton, 6.6¢/lb, in
2001). [Section 155]
3. Fixed Payments, Counter-Cyclical
Payments
No provisions for fixed payments or for
Support for peanuts designed like that for
Similar to House bill. [Section 151
counter-cyclical payments for peanuts.
grains, cotton, and oilseeds. Rules

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regarding eligibility, sign-up, conservation
and wetlands compliance, planting
flexibility, base acres, payment yields, etc.,
are similar to those that apply to grains,
cotton, and oilseeds.
The assignment of each farm’s acres and
Similar to House bill. [Section 151]
yield to cropland selected by the producer is
done on a one-time basis. [Section 162(b)]
Fixed, decoupled annual payments at the
Fixed, decoupled contract payments at the
rate of $36/ton (1.8¢/lb) are made on 85%
same rate as the House bill. [Section 151]
of each farm’s history of peanut production.
[Section 163]
Counter-cyclical deficiency payments
Counter-cyclical deficiency payments against a
against a $480/ton (24¢/lb) target price are
$520/ton (26¢/lb) target price are made on
made on 85% of each farm’s history of
85% of each farm’s history of peanut
peanut production. [Section 164]
production. [Section 151]
3. Peanut Payment Limits
Payment limits are not applicable to
Payments limits for peanuts are treated
Payments received for support of peanuts are
peanuts under current law.
separately from those set for other
subject to the same limits as other crops, and
commodities. Fixed, decoupled payments
are included in the payment totals set for other
for peanuts are subject to a limit of $50,000
crops, rather than treated separately as in the
per person, per year. The limit on counter-
House bill. For all crops, the combination of
cyclical target price deficiency payments is
fixed, decoupled payments and counter-
$75,000, and the limit on marketing loan
cyclical payments is limited to $75,000 per
benefits is $150,000. [Sections 169 and
individual, per year. Marketing loan benefits
183]
are limited to $150,000. Raised limit by and
additional $50,000 for a qualifying married
couple. [Section 169]

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COMMODITY PROGRAMS
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CURRENT LAW/POLICY
i. Wool and Mohair
1. Marketing Loans and LDPs
Wool and mohair support was phased out
Marketing loans and LDPs are available to
Similar to House bill, except no support for
and ended in 1996 by P.L. 103-130,
all producers at the following rates:
mohair.
Section 1, which repealed the National
Marketing loans and LDPs are available to all
Wool Act of 1954. However, support
producers at the following rates:
was authorized in several subsequent
Graded Wool, $1.00/lb
Graded Wool, $1.00/lb
years. P.L. 106-78 Section 801(h),
Nongraded Wool, 40¢/lb
Nongraded Wool and Unshorn Pelts, 40¢/lb
authorized recourse loans on 1999 crop
Mohair, $4.20/lb
Mohair, (see note below)
mohair. P.L. 106-224, Section 204(d),
[ Sections 123 and 171]
mandated payments on 1999 crop wool
[Section 130]
of $0.20, and on mohair of $0.40/lb. P.L.
[Note: Section 123 of the Senate-passed bill
106-387, Section 814, authorized
does not include mohair among the list of loan
payments of $0.20/lb for wool and $0.40
rates for marketing assistance. However,
mohair for crop year 2000, up to $20
section 171 of the same bill includes a loan
million. Again for crop year 2001, P.L.
rate of $2.00 for mohair. This section
107-25, Section 5, authorized $16.9
amended the loan rates set under section 123,
million in direct payments for wool and
and was added to fund improvements in
mohair at rates determined by
nutrition assistance. The originally introduced
USDA.[Section 132 of the FAIR Act of
version of S. 1731 contained a mohair loan
1996]
rate, but it was dropped in the Daschle
substitute and a conforming change reflecting
this was not contained in section 171.]
j Honey
1. Marketing Assistance Loans and
LDPs
Honey support is repealed. [Section 171]
Marketing loans and LDPs at $0.60/lb. The
Marketing loans and LDPs at $0.60/lb. The
term of a loan is 12 months, beginning the
term of the loan is 9 months, beginning the
Note: This action followed several years
first day of the month after the loan is
first day of the month after the loan is

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COMMODITY PROGRAMS
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CURRENT LAW/POLICY
of agriculture appropriations bill language
obtained. [Section 131]
obtained.[Section 171]
preventing USDA from carrying out the
mandatory honey marketing loan
program.
Recourse loans were authorized for the
1998, 1999, and 2000 crops by
respectively P.L. 105-227, Section 1122;
P.L. 106-78, Section 801; and P.L. 106-
224, Section 204. P.L. 106-387, Section
812, made marketing assistance loans and
LDPs available on 2000 crop honey at
$0.65/lb and outstanding recourse loans
were converted to nonrecourse marketing
loans.
k. Dairy
1. Dairy Price Support Program
(DPSP)
The 1996 farm bill (P.L. 104-127), as
Extends the DPSP through December 31,
Extends the DPSP through December 31,
amended, reauthorizes the DPSP at the
2011 at the current level of support ($9.90
2006 at the current level of support ($9.90 per
current level of support ($9.90 per
per cwt.). The Secretary would be
cwt.). The Secretary would be required to
hundredweight (cwt.) of milk). [Section
permitted to adjust purchase prices of butter
adjust purchase prices of butter and nonfat dry
141]
and nonfat dry milk twice annually to
milk twice annually to minimize government
The DPSP indirectly supports the farm
minimize government expenditures on the
expenditures on the program. [Section 131]
price of milk through USDA purchases of
program. [Section 141]
surplus cheese, butter and nonfat dry milk
(powder). The law allows the Secretary
of Agriculture to adjust government
purchase prices of butter and powder
twice annually in order to minimize
government expenditures. The FY2002
agriculture appropriations act (P.L. 107-

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CRS-33
COMMODITY PROGRAMS
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SENATE BILL
CURRENT LAW/POLICY
76) extended the DPSP through May 31,
2002 [Section 772(a)]
2. The Northeast Dairy Compact and
Counter-Cyclical Payments for Dairy
Farmers
The 1996 farm bill (P.L. 104-127) gave
No provisions.
Replaces the Northeast Dairy Compact with a
contingent authority for the six New
new counter-cyclical payment program for
England states to create an interstate
dairy farmers through September 30, 2005.
dairy compact. [Section 147] The
Whenever the minimum price for fluid farm
compact required fluid milk processors in
milk falls below a target price of $16.94 per
New England to pay a minimum price
hundredweight (cwt.) in 12 Northeast states
for farm milk used for fluid consumption
(ME, NH, VT, CT, RI, MA, NY, NJ, PA,
that is higher than the minimum price
MD, DE, WV), farmers in these states receive
established under federal regulation.
a direct government payment to compensate
Compact was established in 1997 at a
for 45% of the difference between the target
minimum price of $16.94 per
price and the monthly minimum market price
hundredweight (cwt.). Legislative
for fluid farm milk. Farmers in all other states
authority expired on September 30, 2001.
receive a federal payment when the average
market price for farm milk in any quarter falls
Separately, emergency authority included
short of a 5-year average market price for that
in the agriculture appropriations acts of
quarter. Each producer receives a payment
FY1999 (P.L. 105-277), FY2000 (P.L.
equal to 40% of the market price shortfall
106-78) and FY2001 (P.L. 106-387)
from the 5-year average. Total funding over
provided ad-hoc direct government
the life of the program is $500 million for the
payments to all dairy farmers in response
Northeast states, and $1.5 billion for all other
to volatile farm milk prices.
states. Payments can be received by a farmer
on up to 8 million lbs. of annual milk
production. [Section 132]
3. Recourse Loan Program
P.L. 104-127 permanently authorized a
Repeals authority for a recourse loan
No provision.
new recourse loan program to help dairy
program. [Section 142]

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processors balance their inventories, to
(Subsequent to House passage of H.R.
be implemented once the dairy price
2646, P.L. 107-76 was enacted which
support program (DPSP) expires.
repealed authority for the recourse loan
[Section 142]
program. [Section 772(b)])
P.L. 104-127 originally required the
elimination of the DPSP on January 1,
2000. However, subsequent legislation
extended price support authority.
Recourse loan program was never
implemented, and its authority was
repealed by P.L. 107-76.
4. Dairy Export Incentive Program
The 1985 farm bill (P.L. 99-198) first
Extends program authority through 2011.
Extends program authority through 2006.
authorized the dairy export incentive
[Section 143(a)]
[Section 133(a)]
program, which helps U.S. exporters
counter subsidized sales by foreign
competitors through cash or commodity
bonuses. [Section 153]
Program has been reauthorized
periodically in subsequent farm bills.
Most recently, the 1996 farm bill (P.L.
104-127) reauthorized the program
through 2002. [Section 148]
5. Dairy Indemnity Program
Authorized in 1964, the dairy indemnity
Reauthorizes the program through
Reauthorizes the program through September
program indemnifies dairy farmers and
September 30, 2011. [Section 143(b)]
30, 2006. [Section 133(b)]
processors who, through no fault of their
own, suffer income losses due to
contamination of milk or dairy products
caused by pesticides and certain other

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CRS-35
COMMODITY PROGRAMS
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SENATE BILL
CURRENT LAW/POLICY
toxic substances. Legislative authority
expired September 30, 1995. However,
annual appropriations have been made
subsequent to program expiration.

6. Fluid Milk Processor Promotion
Program
The Fluid Milk Promotion Act of 1990
1) Gives permanent authority to the fluid
Same as House bill, except that fluid milk
(contained within the 1990 farm bill (P.L.
milk promotion program; 2) strikes the
delivered directly to consumer residences does
101-624)), as amended, authorized a
statutory definition of a fluid milk product
not count toward the 3 million pound
research and promotion program for fluid
and use the definition promulgated in USDA
minimum requirement for the processor
milk products. [Sections 1999A-1999R]
regulations; and 3) changes the definition of
assessment. [Section 134]
The program is funded through an
a fluid milk processor for the purpose of the
assessment on fluid milk processors who
required assessment, to exclude any fluid
handle more than 500,000 lbs. of fluid
processor that handles less than 3 million
milk products each month. The 1996
pounds of fluid milk products each month.
farm bill (P.L. 101-624) extended
[Section 144]
program authority through December 31,
2002. [Section 146]
7. Dairy Promotion and Research
Program
The Dairy Producer Stabilization Act of
Extends the 15-cent assessment to imported
Same as the House bill. [Section 136]
1983 authorized a national dairy
dairy products. The 15-cent assessment is to
producer program for generic dairy
be paid to U.S. Customs by the importer on
product promotion, research, and
the equivalent of milk that went into the
nutrition education. The program is
manufacturing of the imported product.
funded through a mandatory 15-cent per
Dairy importers are allowed up to 2 seats on
hundredweight assessment on all milk
the national Dairy Board. None of the
produced and marketed in the contiguous
importer-collected funds can be used for
48 states. Dairy farmers administer the
foreign market promotion. [Section 146]

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SENATE BILL
CURRENT LAW/POLICY
program through the National Dairy
Promotion and Research Board.
8. Dairy Product Mandatory
Reporting
The Dairy Market Enhancement Act of
Makes a technical correction to the 2000 act
Similar to the House bill. [Section 135]
2000 (P.L. 106-532) established a
to include “substantially identical products
mandatory reporting system for dairy
designated by the Secretary (of
product inventories and prices. It requires
Agriculture)” as part of the mandatory
USDA’s National Agricultural Statistics
reporting system. [Section 145]
Service to regularly collect data on the
prices and inventories of cheese, butter
and nonfat dry milk sold by dairy
manufacturers.
9. Dairy Studies
No provision in current law.
Requires the Secretary of Agriculture to
Requires the Secretary of Agriculture to
submit to Congress a comprehensive
conduct studies to be reported to the House
economic evaluation of national dairy
and Senate Agriculture Committees on: 1) the
policies (i.e., the price support program,
market effects of terminating all federal dairy
federal milk marketing order, over-order
programs relating to price support and supply
premiums and state pricing programs, dairy
management; and 2) the effects of changing
compacts and export programs) and their
the standard of identity for fluid milk so that
effect on the farm and rural economy,
the required minimum protein content of fluid
domestic food and nutrition programs, and
milk is commensurate with the average nonfat
consumer costs. [Section 147]
solids contents of farm milk directly from the
cow. [Section 137]
[Note: California has a standard of identity for
fluid milk that requires a nonfat solids content
higher than the national requirement and
higher than the average content of raw milk
from the cow.]

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CRS-37
COMMODITY PROGRAMS
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
l. Tobacco
1. Flue-cured Quota
No provisions.
Same as current law.
Reduces the reserve stock level for flue-cured
in the quota determination formula from the
greater of 100,000 pounds or 10% of the
national marketing quota, to the greater of
75,000 pounds or 10%. [Section 162]
2. Flue-cured Farm Reconstitutions
Allows, for the 2002 crop only, for special
No provisions
Same as current law.
farm reconstitutions that otherwise would
violate the prohibition on flue-cured lease and
transfer of quota. Requires a study of the
prohibition of flue-cured quota lease and
transfer. [Section 163]
m. Specialty Crops
1. Mandatory CCC Purchases
No provisions of P.L. 104-127
No Provision
Mandated specialty crop purchases using CCC
specifically authorize or mandate support
funds: $100 million in each of FY2002 and
for specialty crops. Subsequently,
FY2003, $120 million in FY2004, $140
emergency ad hoc assistance was
million in FY2005, and $170 million in
mandated for specialty crops. P.L. 106-
FY2006. Mandated purchases of unspecified
224, Section 203(d), mandated the CCC
commodities, at $30 million each year.
spend $200 million for purchases fruits
[Section 163]
and vegetables with low prices in 1998
and 1999, including apples, black-eyed
peas, cherries, citrus, caneberries, onions,
melons, peaches, and potatoes. P.L. 106-
387, Section 811 and Section 816
mandated respectively $100 million in

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CURRENT LAW/POLICY
payments to apple growers and $20
million to cranberry growers to
compensate for low prices. P.L. 107-25,
Section 7(b), mandated the CCC to
distribute $133.4 million to states for
support of specialty crops.
C. PAYMENT LIMITS (Fixed, marketing loan, countercyclical)
1. Fixed Payments, and Counter-
Cyclical Payments
a. Fixed contract payments are subject to
a. Combined fixed, decoupled payments for
a. Fixed, decoupled commodity payments
a $40,000 per person, per year limit for
grains, cotton, and oilseeds are limited to
combined with counter-cyclical target price
grains, cotton, and rice.[Section 115]
$50,000 per year per person. [Section 109]
deficiency payments for grains, cotton, rice
(Note: Peanuts and oilseeds not eligible
Separate payment limit for peanuts set at
oilseeds, and peanuts are subject to a $75,000
for contract payments, so no payment
$50,000. [Section 169]
per person, per year limit. [Section 169]
limit for these commodity growers)
b. No countercyclical payments in current
b. Counter-cyclical payments for grains,
b. See above - for both fixed and
law.
cotton, rice and oilseeds are subject to a
countercyclical payments there is a combined
$75,000 per person, per year limit. [Section
limit of $75,000 per person per year for
109] Separately, counter-cyclical payments
payments made to producers of all eligible
for peanuts are limited to $75,000 per
crops. No separate limit for peanuts. [Section
person per year. [Section 169]
169]
2. Marketing Loan Benefits
Marketing loan benefits (marketing loan
Marketing loan benefits for grains, cotton,
Sets a payment limit of $150,000 per person
gains and LDPs) for all crops combined
and oilseeds combined are subject to a
per year for marketing loan benefits paid for
are subject to a $75,000 per person, per
$150,000 per person, per year limit.
all commodities (grains, cotton, rice oilseeds,
year limit. [Section 115] The limit was
[Section 183] Separately, marketing loan
peanuts, dry peas, lentils, and chickpeas,
raised to $150,000 for crop years 1999,
benefits for peanuts are limited to $150,000.
wool, and honey). Included in this limit are
2000, and 2001 by respectively P.L. 106-
[Section 169] Separately, marketing loan
marketing loan gains, LDPs, loan forfeiture
78, sec. 813; P.L. 106-387, sec. 837; and
benefits for wool and mohair are limited to
gains, and commodity certificate gains.

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COMMODITY PROGRAMS
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CURRENT LAW/POLICY
P.L. 107-25, sec. 10). Exempt from
$150,000. [Section 130(f)] Separately,
[Section 169]
payment limits are marketing certificates
marketing loan benefits for honey are limited
sold to farmers at the posted county price
to $150,000. [Section 131(f)]
and used to pay off marketing assistance
loans (authorized by P.L. 106-78, sec.
812).
3. Spouse Benefit and 3 Entity Rule
No change is made to existing policy that
Same as current law.
A spouse allowance of an additional $50,000
allows a spouse to be considered a
is created. The 3-entity rule is replaced by
separate person or allows one person to
applying the limits to payments from all
receive payments from 2 additional farms.
sources (the so-called direct attribution rule.)
Either allowance doubles the limit on
[Section NA]
payments.
4. Adjusted Gross Income Limit
No provision.
No provision
A person with adjusted gross income in excess
of $2.5 million is ineligible for payments.
[Section NA]
5. Payment Limitation Commission
Same as current law.
Creates a 1-year Commission on the
No provision.
Application of Payment Limitations for
Agriculture to analyze and make
recommendations on payment limits. [Section
NA]
D. COUNTER-CYCLICAL FARM SAVINGS ACCOUNTS
No provision.
Same as current law.
Farm counter-cyclical savings accounts are
authorized as a pilot program in 3 states.
Farms with adjusted gross revenue from

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CRS-40
COMMODITY PROGRAMS
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
commodities of at least $50,000 would be able
to contribute an unlimited amount into a
savings account with limited matching federal
contributions (up to $5,000 per fiscal year).
Withdrawals are permitted when adjusted
gross revenue is less than 90% of the previous
5-year average.[Section 114]
(Note: Lugar Amendment 2859)
E. WTO LIMITS ON ALLOWABLE DOMESTIC SUPPORT
There is no upper limit in the law for
If USDA determines that total spending for
If USDA notifies Congress that support
spending on commodity support
commodity support will exceed the limits
program spending will exceed the allowed
programs.
accepted by the United States in the
limits and that adjustments will be made, all
Uruguay Round Agreements, adjustments
spending on the designated programs will be
may be made to reduce spending to the
suspended after 18 months unless Congress
limits but not below the allowable limits.
disallows the adjustments. [Section 164]
[Section 181(e)]

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CRS-41
II. CONSERVATION
CONSERVATION
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
A. Environmental Conservation Acreage Program (ECARP)
Title VII of Food Security Act (FSA) of
Title II, Farm Security Act of 2001.
Title II of the Agriculture, Conservation,
1985 as amended by Title III of the
and Rural Enhancement Act of 2001.
Federal Agriculture Improvement and
Reform (FAIR) Act of 1996.
1. Purpose and Programs. Authorizes
No provisions.
Renames ECARP the Comprehensive
program through long term contacts and
Conservation Enhancement Program
acquisition of easements, to be
(CCEP)and places new name throughout
implemented through the Conservation
Section 1230. [Section 207(a)]
Reserve Program (CRP), Wetlands
Reserve Program (WRP), and
Amends Section 1230(a) to reflect changed
Environmental Quality Incentive Program
placement of conservation programs in 1985
(EQIP). [Section 1230(a) of the 1985
FSA. [Section 211(a)]
FSA as amended by Section 331 of the
Repeals Section 1230A. [Section 207(c)]
1996 FAIR]
[Note: Section 1230A is replaced with new
Good Faith protection provisions added
good faith provisions, discussed below in H
as Section 755 of the FY2001
(13) (a).]
Agriculture Appropriations. [Section
1230A of 1985 FSA, as amended by
Section 331 of 1996 FAIR]
[Note: ECARP is an umbrella under
which the CRP,WRP, and EQIP are
placed.]
2. Priority Areas. Permits the Section
Repeals section 1230(c). [Section 201(2)]
Adds a new subsection giving priority to
to designate watershed, multistate areas,
areas where projects could be completed
or areas of special environmental
most rapidly. [Section 211(b)]
sensitivity for enhanced conservation

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CONSERVATION
CURRENT LAW/POLICY
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SENATE BILL
assistance through the CRP, WRP, and
EQIP. [Section 1230(c) of the 1985 FSA
as amended by Section 331 of the 1996
FAIR]
B. Conservation Reserve Program (CRP)
1. Period of Authorization and
Reauthorizes CRP through FY2011. [Section
Reauthorizes CRP through FY2006
Purposes. Authorizes program through
211(a)]
[Section 212(a)]
FY2002, and states the purposes are to
Adds wildlife resources to the purposes of the
conserve and improve soil and water
program. [Section 211(b)]
resources. [Section1231 (a) of the 1985
FSA as amended by Section322(a)(1) of
the 1996 FAIR]
2. Eligibility. Makes certain highly
Repeals the limit on enrolling marginal
Makes eligible land that has a cropping
erodible land, marginal pastureland, and
pastureland to less than 10% of the total
history for 3 of the 6 years preceding
other cropland eligible. [Section 1231(b)
enrolled acres, expands the definition of other
enactment (and land enrolled in the CRP on
of the 1985 FSA]
eligible cropland to include threats to soil and
that date), and adds a new subsection that
air quality, and makes eligible land in
makes land enrolled under the continuous
production for at least 4 years that would
signup and the buffer initiative eligible for
contribute to conservation of ground and
the regular program. [Section 212(b)]
surface water. [Section 212(a)] Adds a new
Section1231(i) that requires balance between
soil erosion, water quality, and wildlife habitat
when reviewing bids, with implementing
regulations to be issued within 180 days of
enactment. [Section 212(d)]
3. Enrollment Ceiling Authorizes
Raises ceiling to 39.2 million acres. [Section
Raises ceiling to 41.1 million acres. [Section
enrollment ceiling at 36.4 million acres.
212(b)]
212(c)]
[Section 1231(d) of the 1985 FSA as
amended by Section 332(b) of the 1996
[Note: Section 215(a), in the water
FAIR.]
conservation provisions, lowers the CRP

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CONSERVATION
CURRENT LAW/POLICY
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SENATE BILL
enrollment ceiling to 40.0 million acres, and
Section 215(b) than allows an additional
500,000 acres to be enrolled in the state
Conservation Reserve Enhancement
Program, bringing total enrollment to 40.5
million acres.]
4. Duration of Contract. Allows CRP
No provisions.
Amends Section 1231(e)(2) to allow the
contracts for some land devoted to
Secretary to extend contracts on hardwood
hardwood trees, shelter belts, wind
forests for up to 15 years and limits annual
breaks, or wildlife corridors to be longer
payments to 50% of the original contract
than the 10 to 15 years allowed for other
amount, and allow new contracts of 10 to
contracts. [Section 1231(e)(2) of the
30 years. [Section 212(d)]
1985 FSA]
5. Conservation Priority Areas.
Allows land enrolled under this subchapter to
Gives priority to areas where designation
Requires the Section to establish, at the
be eligible to reenroll in the CRP. [Section
would lead to the most rapid completion of
request of a state, priority watersheds in
212(c)]
projects. [Section 212(b)]
specified and other areas where
enrollment would “maximize water
quality and habitat benefits.” [Section
1231(f) of the 1985 FSA]
6. Enrollment Subcategories.
Expands the pilot program to all states and
Deletes “pilot”, reauthorizes the program
Authorizes a 500,000 acre pilot
limits enrollment in any state to 150,000
through FY2006, and increases the
program, with enrollment limited to
acres. [Section 215]
maximum size of eligible sites from 5 acres
150,000 acres in any state for small
to 10 acres (but only up to 5 acres are
wetlands(less than 5 acres) and buffers in
eligible for payments). [Section 212(e)]
6 specified upper Midwestern states. [A
new Section1231(h), enacted in Title XI
of the FY2001 Agriculture
Appropriations (P.L. 106-387]
7. Duties of Owners and Operators.
Allows certain economic uses of enrolled
Adds a new subsection that allows irrigated
Sets limits on commercial uses of lands in
lands if consistent with soil, water, and
land to be enrolled through the buffer

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CRS-44
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CURRENT LAW/POLICY
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SENATE BILL
the CRP, but allows the Section to permit
wildlife conservation. These uses include
initiative or the CREP at the irrigated land
harvesting or grazing under very limited
managed grazing and haying (with reduced
rate. [Section 212(f)]
circumstances. [Section 1232(a)(7)]
payments), siting of wind turbines, and
Allows participants to plant native prairie
Sets a goal of planting 1/8 of the land
harvesting biomass to produce energy (with
grasses on enrolled marginal pastureland, to
enrolled each year to trees or habitat.
reduced payments). Deletes subsections (c)
permit harvesting or grazing for
[Section 1232(c)]
and (d). [Section 213]
maintenance purposes on lands enrolled
Allows alley-cropping. [Section 1232(d)]
through the buffer initiative or the CREP,
[Section1232(a) (7) of the 1985 FAIR as
and adds a new subsection that makes crop
amended by the 1990 FACTA, Section
production on other highly erodible land a
1232(c) of the 1985 FSA, and Section
violation of a CRP contract unless it has a
1232(d) of the 1985 FSA, respectively]
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 land enrolled
in the continuous enrollment), with
payments reduced based on the diminished
value for CRP. [Section 212(h)]
8. Payments. Lays out the terms and
No provisions.
Adds a new subsection to provide
conditions for CRP payments.
enrollment and cost sharing payments to
[Section1234 of the 1985 FSA as
producers who enroll land in the buffer
amended by Section1434(a) of the 1990
initiative or through a CREP. [Section
FACTA)
212(i)]
Payments for easements limited to
Exempts payments for land enrolled in the
$50,000 per year. [Section 1239C(f)]
buffer initiative or through a CREP from the
payment limit for easements. [Section
212(j)]
9. County Enrollment Limits. Limits
Repeals the provision allowing the Secretary
Exempts land enrolled under the continuous
enrollment in the CRP and WRP to 25%
to exceed the county enrollment limit if
signup from county enrollment limit.
of county cropland, and limits easements
operators are having difficulty meeting
[Section 212(k)]
to 10%; limits may be exceeded if it
compliance requirements. [Section 244(a)]
would not adversely affect the local
economy or if operators are having

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CONSERVATION
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
difficulty meeting compliance
requirements. [Section1243(b) of the
1985 FSA as amended by Section 341 of
the 1996 FAIR.]
10. Funding and Administration.
Reauthorizes mandatory funding through
Reauthorizes funding from the CCC through
Provides mandatory funding through the
FY2011. [Section241]
FY2006, and includes funding for technical
CCC. [Section1241(a) of the 1985 FSA
assistance in support this program. [Section
as amended by Section341 of the 1996
211(c)]
FACT]
11. Study of Economic Effects. No
No provisions.
Requires the Secretary to report to the
provisions.
House and Senate Agriculture Committees
on the economic and social effects of the
CRP on rural communities within 270 days
of enactment. Specifies 3 components of
the analysis. [Section 212(l)]
C. Wetlands Reserve Program (WRP)
1. Enrollment. The 1990 FACTA adds
Allows enrollment of up to 150,000 acres per
Authorizes WRP enrollment through
a new Section1237 to the 1985 FSA
calendar year starting in 2002, with any acres
calendar year 2006. [Section 214(c)] Sets a
establishing the WRP and capping
up to the annual limit that is not enrolled can
maximum enrollment ceiling of 2,225,000
enrollment at 975,000 acres. [Section
be enrolled in succeeding years, through
acres, and an annual enrollment ceiling of
1438] Enrollment allowed through
FY2011. [Section 221(a)]
250,000 acres, of which up to 25,000 acres
calendar year 2002. [Section 333(b)(1) of
Authorizes enrollment through FY2011.
can be enrolled in the new Wetland Reserve
the 1996FAIR]
[Section 221(c)}
Enhancement Program. [Section 214(b)]
Enrollment ceiling increased from
975,000 acres to 1,075,000 acres.)
[Section 808 of the FY2001 Agriculture
Appropriations (P.L. 106-387)]
2. Enrollment Options. Requires 1/3
Deletes the 1/3 requirement, and the
Creates a new Wetland Reserve
enrollment each using permanent
distinction between permanent and temporary
Enhancement Program that allows
easements, 30 year easements, and long-
easements. [Section 221(b]
agreements with state and local government,

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term agreements. [Section1237(b) of the
and non-governmental organizations to
1985 FSA as amended by Section333(a)
restore wetlands on land in or eligible to be
of the 1996 FAIR]
enrolled in the WRP. [Section 214(d)]
3. Easements and Agreements.
Replaces the 4 specific prohibitions with a
No provisions.
Describes the general terms of easements
general statement to allow only changes
and agreements. Prohibits altering
permitted in the plan. Deletes subsection (e),
habitat, spraying chemicals and mowing,
which distinguishes 3 lengths of easements,
any activity that degrades the land, and
and subsection (h), which can require
any other activity that counters the
wetlands to be restored if there is no
purpose of the easement, unless
easement. [Section 222]
permitted in the plan. [Section 1237A of
the 1985 FSA as amended by
Section333(d)(1) of the 1996 FAIR]
4. Secretarial Duties, including
Deletes subsection (d), which requires the
Amends Section 1237C(a) to provide funds
Technical Assistance. Describes how
Secretary to give priority to using permanent
from the CCC for technical assistance in
cost sharing and technical assistance will
easements. [Section 223]
support of the WRP. [Section 214(a)]
be provided; and how priorities will be
Amends Section1237C(a)(2) to add
set for determining which bids to accept.
monitoring and maintenance to the types of
[Section1237C of the 1985 FSA]
technical assistance provided to participants.
[Section 214(e)]
5. Changes in Ownership. Limits
Replaces 1990 acquisition date in
No provisions.
program entry if ownership changes
Section1237E(a)(2) with provision to make
occurred during the previous year, and
eligible at any time land acquired through
specifies terms under which easements
foreclosure where the previous owner
can be modified or terminated.
exercised a right of redemption. [Section 224]
[Section1237E of the 1985 FSA]
6. Funding. Funding from the CCC is
Reauthorizes mandatory funding through
Reauthorizes funding from the CCC through
authorized to implement the WRP.
FY2011. [Section 241]
FY2006, and includes funding for technical
[Section 1241(a) of the 1985 FSA]
assistance in support of this program.

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[Section 211(c)]
D. Environmental Quality Incentives Program (EQIP)
1. Program Purposes. Identifies 4
Deletes reference to the programs that were
Specifies that EQIP is to promote
programs that EQIP replaces. Specifies
replaced; replaces the purpose of responding
production and environmental quality while
that EQIP maximize environmental
to environmental threats with the purpose of
maximizing environmental benefits per
benefits per dollar spent while meeting 4
providing environmental benefits; and expands
dollar spent by assisting producers to meet 6
purposes. [Section 334 of the 1996 FAIR
the benefits to include air quality. [Section
specified purposes. [Section 213(a)]
adds Section1240 to the 1985 FSA]
231]
2. Definitions. Defines “eligible land”,
Adds non-industrial private forest land to
Adds definitions of “beginning farmer or
“land management practice”, “livestock”,
“eligible land”, and replaces the notion of
rancher”, “comprehensive nutrient
“producer”, and “structural practice”.
posing an environmental threat with the
management”, “innovative technology”,
[Section 1240A of the 1985 FSA]
notion of providing environmental benefits in
“managed grazing”, “maximum
that definition; and “producer” is expanded to
environmental benefits per dollar
include non-industrial private forestry.
expended”, “practice”, and “program”.
[Section 232]
[Section 213(a)]
3. Program Administration.
Reauthorizes EQIP through FY2011;
Reauthorizes EQIP through FY2006; adds
Authorizes EQIP through 2002; eligible
authorizes contracts of 1 to 10 years; repeals
comprehensive nutrient management
practices include structural and land
requirement that structural practices be
planning to the list of eligible practices;
management practices; authorizes
selected to maximize environmental benefits
allows the Secretary to provide conservation
contracts of 5 to 10 years; provides cost-
per dollar spent; deletes limitation on
education to producers; authorizes contracts
share of not more than 75% for structural
payments to large livestock operations to
of 3 to 10 years; limits producers to 1
practices; prohibits cost sharing to large
construct animal waste management facilities;
contract for structural practices to manage
livestock operations to construct animal
and adds a new provision to make incentive
livestock nutrients through FY2006; limits
waste management facilities; provides
payments at an amount and rate to encourage
large livestock operators to 1 contract for a
incentive payments for land management
multiple land management practices, with
waste storage or treatment facility;
practices; provides funding (not to
emphasis on payments for practices that
authorizes application and evaluation
exceed projected costs) for technical
address “residue, nutrient, pest, invasive
procedures for selecting applicants;
assistance; and lists types of private
species, and air quality management.”
prohibits bidding down; limits cost sharing
sources to provide technical assistance.
[Section 233]
payments to 75% (up to 90% for limited
[Section 1240B of the 1985 FSA]
resource and beginning farmers, or to
address a natural disaster); prohibits

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duplicate cost sharing payments for the
same practice; eliminates (by not including)
the limitation on cost-sharing with large
confined livestock operations for waste
management facilities; permits incentive
payments for technical assistance to certified
individuals to develop comprehensive
nutrient management plans; and specifies
circumstances for terminating contracts.
[Section 213(a)]
4. Evaluation of Offers. Requires the
Replaces these provisions with general
Adds higher priority also to be given for
Secretary to give higher priority to
language about aiding farmers to comply with
special projects initiated by a new
assistance in priority areas, or to
environmental laws and encourage
partnership program to address
watersheds, regions, or conservation
conservation, maximizing the benefits of using
environmental issues placed in Section
priority areas where states or localities
manure and other soil amendments, and
1243(f), and to innovative technologies for
are active partners, and maximize
encouraging sustainable grazing systems.
structural or land management practices.
environmental benefits per dollar spent.
[Section 234]
[Section 213(a)]
[Section1240C of the 1985 FSA]
5. Duties of Producers. Lists 5 duties;
No provisions.
Almost identical to current law, except gives
one is a prohibition against practices that
the Section greater latitude in determining
counter the purposes of EQIP.
the appropriate penalty for violations.
[Section1240D of the 1985 FSA]
[Section 213(a)]
6. Program Plan. Lists the general
Replaces mention of management and
Almost identical to current law. [Section
contents of plans producers are required
structural practices with providing greater
213(a)]
to submit to the Section to participate.
environmental benefits. [Section 235]
[Section1240E of the 1985 FSA]
7. Secretarial Duties. Assigns 5 duties
Deletes incentive payments from
Almost identical to current law, except that
to the Sec; one is to provide technical
implementing structural and land management
it deletes (by not including) the duty of
assistance and cost-share or incentive
practices. [Section 236]
providing an eligibility assessment. [Section
payments for structural and land
213(a)]
management practices; another is to

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prepare an eligibility assessment. [Section
1240F of the 1985 FSA]
8. Payment Limits and Timing. Limits
Limits payments to $50,000 annually and
Limits total payments under all contracts to
payments to $10,000 annually and
$200,000 per contract; deletes language
$30,000 annually. It is also limited to
$50,000 per contract; specifies the annual
allowing annual limits to be exceeded to
$90,000 for a 3 year contract, $120,000 for
limit can be exceeded to maximize the
provide maximum environmental benefit per
a 4 year contract, and $150,000 for a
environmental benefits per dollar spent;
dollar spent, and repeals provisions to delay
contract that is 4 years or longer. The
and delays federal expenditures until the
federal expenditures until the year after the
Secretary can exceed the $30,000 payment
year after the contract has been signed.
contract has been signed. [Section 237]
limit under certain circumstances. [Section
[Section 1240G of the 1985 FSA]
213(a)]
9. Other Provisions. Lays out
Replaces current language in Section 1240H,
Replaces current language in Section1240H
temporary transition provisions as EQIP
with provisions that provide $30 million, in
with provisions that provide $100 million
replaces 4 repealed programs. [Section
FY2002, $45 million in FY2003, and $60
annually from EQIP funds, starting in
1240H of the 1985 FSA]
million annually in FY2004-11 from the CCC
FY2003, for competitive innovative
for cost share payments and low interest loans
matching grants and specifies examples to
to encourage ground and surface water
include market systems for pollution
conservation. [Section 238]
reduction, promoting carbon sequestration
in soil and other Best Management
Practices, and protecting drinking water
quality; permits funds from other sources;
limits funding to 50% of cost; funds
unobligated by April 1 each year can be
spent on other EQIP purposes. Adds new
program as Section 1240I for groundwater
conservation in the southern high plains to
improve 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

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using EQIP funds. ($10 million in FY2003,
$15 million in FY2004, $20 million in
FY2005, $25 million in FY2006, and $0 in
FY2007) [Section 213(a)]
10. Funding and Administration.
Authorizes mandatory spending through the
Provides $.5 billion in FY2002, $1.3 billion
Provides $200 million annually through
CCC through FY2011. [Section 241]
in FY2003, $1.45 billion in FY2004-5, $1.5
FY2002 from the CCC for EQIP, with
Provides $.2 billion for FY2001, $1.025
billion in FY2006, and $.85 billion in
50% of the total going to practices
billion for FY2002-3, $1.2 billion for FY2004-
FY2007; provides funding for technical
related to livestock production. [Section
6, $1.4 billion for FY2007-9, and $1.5 billion
assistance from the CCC. [Section 241(b)]
1241 of the 1985 FSA as amended by
for FY2010-11. [Section 242]
Reauthorizes funding from the CCC through
several annual agricultural
Reauthorizes the livestock provision through
FY2006, and includes funding for technical
appropriations laws]
FY2011. [Section 243]
assistance in support of this program.
[Section 211(c)]
E. Wildlife Habitat Incentives Program (WHIP)
1. Period of Authorization. Provides a
Reauthorizes funding from the CCC at $25
Moves WHIP to Section1240M of the 1985
total of $50 million from the CCC (from
million in FY2002, $30 million in FY2003-4,
FSA, reauthorizes funding from the CCC at:
CRP funding) by the end of FY2002.
$35 million in FY2005-6, $40 million in
$50 million in FY2002; $225 million in
[Section387(c) of the 1996 FAIR]
FY2007, $45 million in FY2008-9, and $50
FY2003; $275 million in FY2004; $325
million in FY2010-11. [Section 252]
million in FY2005; $355 million in FY2006;
and $50 million in FY2007; all funding to
remain available until spent. Provides
funding for technical assistance from the
CCC. [Section 217(g)]
2. Establishing WHIP No provisions.
No provisions.
Requires consultation with STCs to
establish WHIP. [Section 217(b)]
3. Cost-sharing Payments. Authorizes
No provisions.
Requires the Secretary to use at least 15%
cost sharing payments for several
of the cost-sharing funds on endangered and
approved purposes. [Section 387(b)]
threatened species. [Section 217(c)]
4. Participation Related to Public
No provisions.
Makes individuals and organizations leasing

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Lands. No provisions.
public lands eligible for grants. [Section
217(e)]
Allows funds to be used on public lands if
they will benefit private lands. [Section
217(f)]
5. Pilot Program. No provisions.
No provisions.
Allows the Secretary to use up to 15% of
the funds to enroll land for at least 15 years
to protect “essential plant and animal
habitat.” [Section 217(d)]
F. Farmland Protection Program (FPP)
1. Funding Level. Provides up to a
Provides up to $50 million annually through
Moves the FPP to Section 1238H-J of the
total of $35 million from the CCC by
FY2011 from the CCC. [Section 253(b)]
1985 FSA[Section 218(a)], and repeals
FY2002. [Section388(c) of the 1996
Section 388 of the 1996 FAIR. [Section
FAIR]
218(c)]
Provides from the CCC: $150 million in
FY2002; $250 million in FY2003; $400
million in FY2004; $450 million in FY2005;
$500 million in FY2006; and $100 million in
FY2007; provides funding for technical
assistance from the CCC; limits the federal
share to 50%, 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)]
2. Eligible Land. Makes between
Deletes the maximum and minimum acreage
Same as Section 253(a); and also defines
170,000 acres and 340,000 acres eligible
limits, and makes historic and archaeological
eligible land to include cropland, rangeland,
if the soil is prime, unique or productive,
sites eligible. [Section 253(a)]
grassland, pasture land and forest land that
and an offer is pending from a state or
is part of an agricultural operation. [Section
local government to limit non agricultural
218]
uses. [Section 388(a) of the 1996 FAIR]

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3. Conservation Planning. Requires a
No provisions.
Identical to current law. [Section 218]
conservation plan if the land is highly
erodible; the Section can require
conversion of land to a less intensive use
in the plan. [Section388(b) of the 1996
FAIR]
4. Eligible Participants. Makes eligible
Expands eligibility to also include federally
Identical to Section 253(c). [Section 218(a)]
any state or local agency that has made
recognized Indian tribes, and non profit
an offer to purchase a conservation
organizations that meet specified
easement. [Section 388(a) of the 1996
qualifications. [Section 253(c)]
FAIR]
5. New Program Options. No
No provisions.
Allows up to $10 million to be spent
provisions.
annually to provide matching grants for
market development, and technical
assistance to participants. [Section 218(a)]
G. Other Programs (Including Technical Assistance)
1. Resource Conservation and
Permanently reauthorizes program, and makes
Permanently reauthorizes program, and
Development Program (RC&D).
numerous other, mostly minor or technical
makes numerous other, mostly minor or
Provides assistance to encourage and
amendments. [Section 254]
technical amendments. [Section 216]
improve the capacity of state and local
[Note: Many of the changes in the two bills
[Note: Many of the changes in the two bills
governments and non profits in rural
are different from each other, but they do not
are different from each other, but they do
areas to develop and implement
change the basic intent or operation of the
not change the basic intent or operation of
conservation programs. Authorized
program.]
the program.]
through FY2002. [Title III of the
Bankhead-Jones Farm Tenant Act as
amended by §1528-1538 of the 1981
AFA]
2. Small Watershed Rehabilitation
Authorizes $15 million annually in “FY2002
No provisions.
Program. Provides financial and
and each succeeding year” to fund the Small
technical assistance to rehabilitate water
Watershed Rehabilitation Program. [Section

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structures that are nearing or past the end
257]
of their design life. Authorizes
appropriations of $5 million in FY2001,
$10 million in FY2002, $15 million in
FY2003, $25 million in FY2004, and $35
million in FY2005. [Authorized in
Section 313 of the Grain Standards and
Warehouse Improvement Act of 2000]
3. Conservation of Private Grazing
Adds encouraging the use of sustainable
Moves the program to a new Section 1240P
Lands. Provide coordinated technical,
grazing systems to the list of activities for
of the 1985 FSA and, makes numerous
educational, related assistance to
which assistance can be provided. [Section
other, mostly minor, changes, and
preserve and enhance privately-owned
251]
authorizes $60 million annually through
grazing lands; authorizes 2 demonstration
FY2006. [Section 217(a)]
districts, and authorizes $20 million in
Repeals provisions establishing program in
FY1996, $40 million in FY1997, and $60
Section 386 of the 1996 FAIR. [Section
million in FY1998 and each subsequent
217(b)]
year. [Section 386 of the 1996 FAIR]
4. Technical Assistance. Allows
Allows producers to seek assistance from
Adds a new Section 1244(f) to the 1985
persons who need and apply a
third parties, who have the specified expertise,
FSA f) requiring the Secretary to create a
conservation compliance plan to obtain
and requires the Secretary to develop a system
certification program for third parties to
technical assistance from approved
for approving qualified third parties who
provide technical assistance, specifies
sources other than NRCS; the Section
provide technical assistance to EQIP
standards for certification, permits the
must document a rejection of assistance
participants within 6 months of enactment.
Section to repay landowners who use third
from those sources [Section 1243(d) of
[Section 244(b)]
parties, and establishes an advisory
the 1985 FSA]
committee for the certification program.
[Section 204]
5. State Technical Committees (STC)
No provisions.
Expands membership in STCs to include
Creates STCs , lists the composition,
expertise in forestry, restates its
outlines responsibilities to include
responsibilities to mesh with other changes
providing “information, analysis, and
this legislation makes to conservation
recommendations” on implementing
programs, and makes subcommittees and
conservation provisions (including
local working groups working on STC

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several specified topics) to the state
business exempt from FACA. [Section 221]
conservationist, and exempts the STC
from FACA meeting requirements.
[Section 1261 of the 1985 FSA]
7. Repeals of Authorized Programs
Repeals provisions: creating the Wetlands
Repeals numerous conservation programs in
and Activities. No provisions.
Mitigation Banking Program [Section 1222(k)
current law and reauthorizes them in other
of the 1985 FSA]; exempting CRP payments
sections of farm law, as noted in the entries
from any limits under the 1985 FSA, the 1990
above.
FACTA, and the 1949 AA [Section
1234(f)(3)]; protecting the base history 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
Resources Conservation Foundation [Section
351-360 of the 1996 FAIR] [Section 262]
H. New Programs
1. Grasslands Reserve Program
a .Places GRP in Section 1238 of the 1985
a. Places GRP in Section 1238N-P of the
(GRP).
FSA creating a 2 million acre grasslands
1985 FSA, creating a 2 million acre
a. Reserve Size. No provisions.
reserve, split evenly between restored
grasslands reserve, of which up to 500,000
grasslands and virgin (never cultivated)
acres will be native grasslands in tracts of 40
grasslands. Section 1238(b)(1) sets minimum
acres or less. Section 1238N sets minimum
size for enrolled parcels at 50 contiguous
size at 40 contiguous acres east of the 98th
acres east of the 90th meridian and 100
meridian and 100 contiguous acres west of
contiguous acres west of the 90th meridian.
the 98th meridian [Section 219(a)]

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[Section 255(a)]
b. Eligible Lands. No provisions.
b. Defines eligible land to include natural grass
b. Same definition of eligible land as in H.R.
and shrub land that has a potential to serve as
2646, except that it also enrolls incidental
important plant or animal habitat, or has been
additional land that is necessary for the
historically dominated by natural grass or
administrative efficiency of an
shrubland. [Section 255(a)]
easement.[Section 219(a)]
c. Enrollment Options. No provisions.
c. Spends at least 2/3 of funds on contracts of
c. Allows permanent easements, 30 year
10 to 20 years, and the remainder on 30 year
easements, the longest easements allowed
or permanent easements. [Section 255(a)]
by state law, and 30 year rental agreements.
Allows the Secretary to delegate easements
to private conservation organizations, land
trusts, and state agencies. [Section 219(a)]
d. Permitted and Prohibited Uses of
d. Permits contract holders to use common
d. Similar to H.R. 2646 for permitted and
Enrolled Lands. No provisions.
grazing practices, and permits haying and
prohibited uses of enrolled lands. [Section
mowing outside the bird nesting season, but
219(a)]
prohibits all agricultural production (except
hay) and almost all practices that require
disturbing the land surface in section
1238(A)(b). [Section 255(a)]
e. Ranking Criteria for Bids. No
e. Requires the Secretary to develop ranking
e. Requires the Secretary to work with
provisions.
criteria for reviewing applications, with
STCs in developing ranking criteria, and to
emphasis on support for native vegetation,
give priority to grazing operations,
grazing operations, and plant and animal
maintaining or restoring biodiversity, and
diversity, and to set the terms for restoration.
land under the greatest threat of conversion.
[Section 255(a)]
[Section 219(a)]
f. Payment Levels. No provisions.
f. Describes how payment levels are to be set
f. Describes how payment levels are to be
for each form of participation, sets cost
set for each form of participation, provides
sharing payments for restoration at 90% for
that rental agreements be reviewed and

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virgin grasslands and 75% for restored
adjusted at least once every 5 years, limits
grasslands, and provides technical assistance.
cost-sharing payments to 75% for
[Section 255(a)]
restoration, and provides technical
assistance. [Section 219(a)]
g. Penalties for Violation. No
g. No provisions.
g. Describes the roles of the Secretary and
provisions.
the landowner in implementing restoration
agreements, and lists the penalties for
violations, and allows periodic site
inspections. [Section 219(a)]
h. Funding. No provisions.
h. Amends Section 1241 of the 1985 FSA to
h. Amends Section 1241 of the 1985 FSA to
provide a total of up to $254 million through
provide such CCC sums as necessary to
the CCC through FY2011to implement this
implement this program. [Section 219(b)]
program. [Section 255(b)]
2. Farmland Stewardship Program.
Adds this program as a new Section 1239 to
No provisions.
No provisions.
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 management plan and are
encouraged to use easements to implement
conservation management. [Section 256]
[Note: No appropriations are authorized for
this program, so all funding would come from
existing programs]
3. Conservation Security Program
No provisions.
Conservation Security Program (CSP).
(CSP). No provisions.
Authorizes a CSP in Section 1238– 1238B
of the 1985 FSA. It defines 22 terms and

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lists 13 program purposes. To participate,
producers must have an approved plan for
eligible lands (land in the CRP and WRP, or
that has not been in production at least 3 of
the preceding 10 years, is ineligible).
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 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 the date
of enactment. [Section 206]
4. Partnerships and Cooperation. No
No provisions.
Adds a new Section 1242(f) to the 1985
provisions.
FSA to allow special projects as
recommended by a state conservationist,
which can respond to meeting the
requirements of specified federal laws or
addressing watersheds or other areas with

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significant environmental problems.
Participants agree to a plan to adjust
implementation of conservation 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]
5. Watershed Risk Reduction
No provisions.
Authorizes $15 million annually through
Program. No provisions.
FY2006 to implement a new program to
purchase floodplain easements at
Section1240N of the 1985 FSA. [Section
217(a)]
6. Great Lakes Basin Soil Erosion and
No provisions.
Authorizes $5 million annually through
Sediment Control Program. No
FY2006 to implement a new soil erosion
provisions.
and sediment control program for the Great
Lakes basin at Section 1240O of the 1985
FSA. [Section 217(a)]
7. Water Conservation Program. No
No provisions.
Reduces CRP enrollment ceiling from 41.1
provisions.
million acres to 40.0 million acres. [Section
215(a)]
Authorizes two programs. One will allow
up to 500,000 acres to be enrolled in state
CREPs to contribute to 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

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Maine; others can apply to participate.
[Section 215(b)]
Authorizes a new Water Conservation
Program in Section 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 million in FY2003, and $100
million in FY2004-FY2006, with $5 million
allocated each year to monitoring activities.
[Section 215(c)]
8. Grassroots Source Water
No provisions.
Authorizes $5 million annually through
Protection Program. No provisions.
FY2006 in Section 1240Q of the 1985 FSA
for a new program to use technical
assistance capabilities of state rural water
associations that operate wellhead or
groundwater protection programs. [Section
217(a)]
9. Organic Agriculture Research
No provisions.
Provides $50 million from the CCC in
Trust Fund. No provisions.
FY2003, to remain available until spent and
to accrue interest, in FY2003 to establish a
new research fund on organic products.
[Section 231]
10. National Organic Research
No provisions.
Establishes a National Organic Research
Endowment Institute. No provisions.
Endowment Institute to develop and

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SENATE BILL
implement a plan for research on organic
products using the trust fund (established in
Section 231). [Section 232]
11. Cranberry Acreage Reserve. No
No provisions.
Authorizes purchase of permanent
provisions.
easements on wetlands and buffer strips that
are part of a cranberry operation from
willing sellers. Authorizes $10 million
annually for this activity. [Section 261]
12. Klamath Basin. No provisions.
No provisions.
Authorizes the Secretary to create a federal
task force (membership specified) to
develop a coordinated federal effort to
manage water resources in this basin (6
duties specified). In addition to using
existing programs, the task force will
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-federal
entities is required. [Section 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)]

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13. Administrative Requirements for
No provisions.
a. Adds a new Section 1244(a) to the 1985
Conservation Programs
FSA giving the Secretary the option of
a. Relief for Good Faith Actions. No
granting relief to conservation program
provisions.
participants who act in good faith under a
contract, and are subsequently determined
to be in violation. Types of relief and
exceptions are specified. [Section 204]
b. Assistance for Limited Resource
No provisions.
b. Adds a new Section 1244(b) which
Producers. No provisions.
provides necessary funds from the CCC to
assist certain limited resource, socially
disadvantaged, and beginning producers,
and Indian tribes to participate in
conservation 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-
disadvantaged ones) to participate in
conservation programs. [Section 204]
c. Data Collection and Program
No provisions.
c. Adds a new Section 1244(d) which
Evaluation.
requires the Secretary to collect data that
No provisions.
would permit evaluation of conservation
programs [Section 204]
d. Mediation. No provisions.
No provisions.
d. Adds a new Section 1244(e) which
requires the Secretary to provide mediation
services when an adverse decision is made
about a conservation program. [Section

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CONSERVATION
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204] [Note: Section 1244(f), on technical
assistance, is discussed above in G4.]
e. Privacy of Personal Information. No
No provisions.
e. Adds a new Section 1244(g) to protect
provisions.
the privacy of personal information about
individuals related to conservation
programs. [Section 204]
f. Tribal Lands. No provisions.
No provisions.
f. Adds a new Section 1244(h) which
requires the Secretary to cooperate with a
tribal government when carrying out
conservation programs on tribal lands.
[Section 204]
g. Regional Equity of Conservation
No provisions.
g. Requires that each state receive a total of
Spending. No provisions.
$12 million annually from FY2002 through
FY2006, in conservation funds. Of the
total, $5 million is to be used for EQIP, and
$7 million is to be used for other
conservation programs, with any portion not
obligated by April 1of the fiscal year to be
reobligated to other specified programs.
[Section 241]
14. Assessment of Conservation
No Provisions.
Assessment of Conservation Programs.
Programs. No provisions.
Requires the Secretary to develop a plan to
better coordinate and consolidate the
implementation of conservation programs.
[Section 205(a)]
Requires the Secretary to provide the plan
(and recommendations) to both agriculture
committees within 180 days of enactment.
[Section 205(b)]

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Requires the Secretary to provide a plan
(with a cost estimate) for 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 to update them at
least once every 5 years. [Section 205(d)]

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III. AGRICULTURAL TRADE AND AID
AGRICULTURAL TRADE
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
A. Agricultural Export Assistance Programs
1. Market Access Program (MAP)
a. MAP helps exporters (mainly
a. Extends current law, except it increases
a. Extends current law, except that in
nonprofit industry trade associations,
required funding to not more than $200
addition to any funds specifically
who allocate the funds to others
million yearly in CCC funds through
appropriated for the program, required
including agricultural cooperatives and
FY2011. [Section 301]
funding of not more than $100 million
small businesses) finance promotional
for FY2002; $120 million for FY2003;
activities overseas (usually for more
$140 million for FY2004; $180 million
consumer-oriented, higher value
for FY2005; and $200 million for
products). Required funding of not
FY2006 (in CCC funds or equivalent
more than $90 million yearly in CCC
CCC commodities). [Section 322]
funds through FY2002. [Agricultural
Trade Act of 1978 as amended by
Section 244 of Federal Agriculture
Improvement and Reform (FAIR) Act
of 1996]
b. No provision.
b. No provision.
b. Priority, for funds in excess of $90
million in any year, for eligible
organizations that have not participated
in the past, and for programs in
emerging markets. [Section 322]
c. No provision.
c. No provision.
c. Mandates new U.S. Quality Export
Initiative (using appropriated MAP,
FMDP funds), to promote U.S. products
with a new “U.S. Quality” seal overseas.
[Section 322]
2. Foreign Market Development
Cooperator Program (FMDP)
a. Extends current law, except sets
a. Extends current law, except sets

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a. FMDP helps U.S. exporters (mainly
required funding at $37 million in CCC
required funding of $37.5 million for
through commodity based trade
funds yearly through FY2011. [Section
FY2002; $40 million for FY2003; and
associations) to finance promotional
305]
$42.5 million for FY2004 and
activities overseas. Statutory authority
subsequent years (in CCC funds or
(at such sums as necessary) through
equivalent CCC commodities). [Section
FY2002; current funding is $28 million
324]
per year. [Agricultural Trade Act of
1978 as amended by Section 252 of
FAIR Act of 1996]
b. FMDP has focused on promoting
b. New emphasis on exporting value-added
b. Establishes a priority, for funds above
mainly bulk and partially processed
products to emerging markets. Requires
$35 million in any year, for eligible
commodities, targeted to foreign
annual report to Congress on program.
organizations that have not participated
importers/processors rather than high-
[Section 305]
in the past, and for programs in
value market.
emerging markets. [Section 324]
3. Export Enhancement Program
(EEP)
a. EEP authorizes cash payments or
a. Current law extended through FY2011,
a. Current law extended through
CCC commodities as bonus subsidies to
at current level of up to $478 million per
FY2006, at current level of up to $478
help exporters sell agricultural products
year. [Section 304]
million per year. [Section 323]
(mainly wheat and other grains) at more
competitive prices in targeted foreign
markets. Authority through FY2002,
with CCC funding at up to $478 million
per year. [Agricultural Trade Act of
1978 as amended by Section 245 of
FAIR Act of 1996]
b. EEP may be used to help mitigate or
b. No expanded definition.
b. Expands the definition of unfair trade
offset the effects of unfair trade
practices to include: (1) pricing practices
practices, now defined as any foreign
by an exporting state trading enterprise

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act or policy that “violates, or is
that “are not consistent with sound
inconsistent with, the provisions of, or
commercial practices conducted in the
otherwise denies benefits to the United
ordinary course of trade,” or (2)
States under, any trade agreement...” or
changing U.S. “export terms of trade
“is unjustifiable, unreasonable, or
through a deliberate change in the dollar
discriminatory and burdens or restricts
exchange rate of a competing exporter.”
U n i t e d S t a t e s c o m m e r c e . ”
[Section 323]
[Agricultural Trade Act of 1978,
Section 102]
4. Dairy Export Incentive Program
(DEIP)
DEIP authorizes cash or CCC
Extends current law through 2011. [Title
Extends current law through FY2006.
commodities as bonus subsidies to help
I-C, Section 143]
[Title I-C, Section 133]
exporters sell specified dairy products
at more competitive prices in targeted
foreign markets. Authority through
FY2002, with CCC funding to provide
commodities to the maximum levels
consistent with U.S. obligations as a
member of the World Trade
Organization. [Food Security Act of
1985 as amended by Section 148 of the
FAIR Act of 1996]
5. Export Credit Guarantees (GSM)
a. Authority through FY2002 with
a. Extends current law through 2011.
a. Extends current law through 2006.
CCC funding, where USDA guarantees
[Section 306]
Requires a report to Congress within 1
commercial financing of not less than
year on the status of multilateral
$5.5 billion annually of U.S. agricultural
negotiations regarding agricultural
exports. Financing can be used for
export credit programs. [Section 321]
short-term credit (GSM-102) for up to
3 years; and for long-term credit

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(GSM-103), for 3-10 years. GSM
programs are used in countries where
needed financing may not be available
without the CCC guarantees. (At least
35% of total credit guarantees must be
to promote processed or high-value
agricultural products.) [Agricultural
Trade Act of 1978 as amended by the
Section 243 of the FAIR Act of 1996]
b. Supplier Credits feature permits
b. No change in supplier credit term.
b. Permits guarantees of supplier credits
CCC to issue credit guarantees for
for up to 12 months. [Section 321]
repayment of credit made available by a
U.S. exporter to a foreign buyer for up
to 180 days. [Agricultural Trade Act
of 1978 as amended by Section 243 of
the FAIR Act]
6. Emerging Markets Program
a. Requires CCC through FY2002 to
a. Extends current law through FY2011.
a. Extends current law through
offer no less than $1 billion per year in
[Section 308]
FY2006. [Section 332]
direct credit, or credit guarantees, for
exports to emerging markets (formerly
emerging democracies). [Food,
Agriculture, Conservation and Trade
Act of 1990 as amended by Section 277
of the FAIR Act of 1996]
b. Requires CCC to provide $10
b. Increases this funding to $13 million
b. No increase.
million annually through FY2002 to
annually. [Section 308]
send U.S. advisors to emerging
m a r k e t s . F o o d , A g r i c u l t u r e ,
Conservation and Trade Act of 1990 as
amended by Section 277 of FAIR Act of

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SENATE BILL
1996]
B. Food Aid Programs
1. P.L. 480 (Food for Peace) General
a. Seeks to combat hunger and
a. Extends P.L. 480 (i.e., authority to
a. Extends P.L. 480 (i.e., authority to
encourage development overseas. Title
enter into new agreements) through
enter into new agreements) through
I makes export credit available on
FY2011. [Section 307]
FY2006. [Section 312]
concessional terms (e.g. low interest
rates for up to 30 years); Title II
authorizes donations for emergency
food aid and non-emergency
humanitarian assistance. Authority to
enter into new P.L. 480 agreements
(which are funded mainly through
annual appropriations) is through
FY2002. [Section 408 of P.L. 480
(Agricultural Trade Development and
Assistance Act of 1954) anas amended
by Section 217 of the FAIR Act of
1996]
b. Congress has stated five specific
b. Adds “conflict prevention” as a new
b. Adds “conflict prevention” as a new
purposes of P.L. 480 (e.g. combat
purpose. [Section 307]
purpose. [Section 301]
hunger, expand international trade,
etc.). [Section 2 of P.L. 480]
c. Food Aid Consultative group
c. Extends Food Aid Consultative Group
c. Extends Food Aid Consultative
consisting of specified federal officials,
through FY2006; clarifies what the group
Group through FY2006. [Section 305]
representatives of private voluntary
is to review to include policies and
organizations (PVOs), foreign non-
guidelines. [Section 307]
government organizations, and
agriculture producer groups, is
authorized through FY2002. [Section
205 of P.L. 480]

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2. P.L.480 Assistance Levels and
Funding
a. Minimum Title II assistance is 2.025
a. Increases the minimum level of
a. Increases the minimum level of
million metric tons (MMT) of
assistance to 2.25MMT per year through
assistance to 2.1 MMT in FY2002,
agricultural commodities per year
FY2011. [Section 307]
2.2MMT in FY2003, 2.3 MMT in
through FY2002; AID Administrator
FY2004, 2.4 MMT in FY2005, and 2.5
has some authority to waive minimum.
MMT in FY2006. [Section 304]
[Section 204 of P.L. 480]
b. Limits CCC Title II costs to $1
b. Removes limit on CCC Title II costs.
b. Doubles limit on CCC Title II costs
billion yearly; some Presidential waiver
[Section 307]
to $2 billion per year. [Section 306]
authority. [Section 206 of P.L. 480]
c. Provides that at least $10 million but
c. Replaces dollar designations by setting
c. Replaces dollar designations by
not more than $28 million of Title II
support for eligible organizations at not
setting support for eligible organizations
funding per year shall be use to support
less than 5% and not more then 10% of
at not less than 5% and not more than
eligible organizations (PVOs,
Title II funding. [Section 307]
10% of Title II funding. [Section 302]
cooperatives, organizations like the
World Food Program, etc.) in
conducting Title II activities. [Section
202 of P.L. 480]
3. P.L. 480 Operation &
Administration
a. Permits PVOs to sell Title II
a. Authorizes the use of U.S. dollars and
a. Similar to House [Sections 303, 310,
commodities in the recipient country
other currencies for monetization in P.L.
& 325]. Also, a food aid commodity
(or a nearby country) to finance
480 – and also Food for Progress and
sale is to be “at a reasonable market
commodity transportation, storage,
Section 416 programs; permits PVOs to
price in the economy where the

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etc., and local development projects
submit multi-country proposals; and
commodity is to be sold.” [Section 310]
(“monetization”). [Section 203 of P.L.
permits food aid monetization in more than
480]
one country in the region. [Sections 302;
303; 307]
b. The AID Administrator has 45 days
b. Increases the time for decisions from 45
b. Also increases the time to 120 days.
to decide on Title II proposals
to 120 days. [Section 307]
Contains other timelines for finalizing
submitted by eligible organizations or
program agreements and announcing
U.S. field missions. [Section 207 of
programs each year. Permits USDA to
P.L. 480]
approve an agreement that provides for
direct delivery of commodities to foreign
milling or processing facilities that are
more than 50% U.S.-owned, with cash
proceeds transferred to eligible
organizations for carrying out projects.
[Section 307]
c. Authorizes $2 million in each of
c. Extends authorization through FY2011.
c. Extends authorization through
FY2001 and FY2002 to “preposition”
[Section 307]
FY2006. [Section 311]
food aid commodities in the U.S. and
foreign countries. [Section 407 of P.L.
480]
d. Authorizes appropriations of up to
d. Extends authorization through FY2011.
d. Extends authorization through
$3 million annually through FY2002 for
[Section 307]
FY2006. [Section 308]
grants to PVOs and U.S. non-profits
for stockpiling shelf-stable, pre-
packaged foods. [Section 208 of P.L.
480]
e. Requires USDA (if feasible) to
e. No provision.
e. Extends the authorization as an
establish a “micronutrient fortification”
ongoing program through FY2006.
pilot program; authority expires in
[Section 313]

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FY2002. [Section 415 of P.L. 480]
f. No provision.
f. Permits President to establish, under
f. No provision.
Title II, a “pilot emergency relief
program to provide live lamb to
Afghanistan.” [Section 309.]
4. Certified Institutional Partners
No provision in current law. Currently
No provision.
Requires AID or USDA, as applicable,
PVOs and cooperatives generally must
to establish a process enabling PVOs
undergo the same application
and cooperatives that can demonstrate
procedures to participate in various
their capacity to carry out the programs
food aid programs each time they apply.
(under P.L. 480; Section 416; or Food
for Progress) to qualify as “certified
institutional partners,” which would
entitle them to use streamlined
application procedures, including
expedited review and approval to
receive commodities for use in more
than one country. [Sections 302; 325;
334]
5. Farmer-to-Farmer Program
Requires that no less than 0.4% of P.L.
Extends funding authority at current 0.4%
Extends funding authority through 2006,
480 funds be used to provide U.S.
through FY2011. [Section 307]
and increases minimum funding to 0.5%
farmers and other agricultural experts
of P.L. 480 funds. [Section 314]
technical assistance in developing,
middle income and emerging market
countries. [Title V of P.L. 480 as
amended by Sections 224 and 277 of
the FAIR Act of 1996]
6. CCC (Section 416) Surplus
Donations
Maintains current law, and requires USDA
Maintains current law, and permits
Permanent law authorizes the use of
to publish in the Federal Register, by
USDA to approve an agreement that
CCC-owned surplus commodities for
October 31, an estimate of Section 416
provides for direct delivery of

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overseas donations. [Section 416(b) of
commodities to be made available for the
commodities to foreign milling or
the Agricultural Act of 1949 as
fiscal year. Also encourages Section 416
processing facilities that are more than
amended]
program agreements to be finalized by
50% U.S.-owned, with cash proceeds
December 31.[Section 303]
transferred to eligible organizations for
carrying out projects. [Section 334]
7. Bill Emerson Humanitarian Trust
Authorizes, through FY2002, a trust
Extends the Trust through FY2011.
Extends the Trust through FY2006.
totaling not more than 4MMT of
[Section 309]
[Section 331]
wheat, rice, corn, sorghum, or any
combination as a reserve solely to meet
emergency humanitarian food needs.
[Bill Emerson Humanitarian Trust Act
of 1998, which replaced Title III of the
Agricultural Act of 1980 as amended
(Food Security Commodity Reserve)]
8. Food for Progress (FFP)
a. Provides commodities to support
a. Reauthorizes FFP through FY2011.
a. Reauthorizes FFP under a new Title
countries that have committed to
[Section 302]
VIII of the 1978 Agricultural Trade Act
expand free enterprise in their
called “Food for Progress and Education
agricultural economies; commodities
Programs,” authorized through FY2006.
may be provided under Title I of P.L.
Permits USDA to provide agricultural
480 or Section 416(b) authorities
commodities to support introduction or
(sometimes CCC funds are used).
expansion of free trade enterprises in
Authority expires December 31, 2002.
recipient country economies, and to
[Section 1110 of the Food Security Act
provide food or nutrition assistance.
of 1985 as amended by the FAIR Act of
[Section 325]
1996]
b. Annual limits on CCC funds for
b. Increases annual limits on administrative
b. Permits up to $55 million per year to
administrative costs and for commodity
costs to $15 million, and on transportation
b e u s e d f o r t r a n s p o r t a t i o n ,
transportation costs are $10 million and
costs to $40 million. [Section 302]
administrative, processing, and related
$30 million, respectively.
costs. [Section 325]

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c. Annual limit on commodity
c. Increases annual limit on commodities
c. Sets an annual minimum tonnage
assistance is 500,000MT.
to 1 million MT. Also, excludes from the
requirement for FFP of 400,000MT
tonnage limit those commodities furnished
through FY2006, using the CCC. In
on a grant basis or on credit terms under
addition to this amount, authorizes the
Title I. [Section 302]
appropriation of such sums as may be
necessary to carry out FFP, plus permits
the use of P.L. 480 Title I funds. All
commodities and related expenses must
be in addition to any other P.L. 480
assistance. [Section 325]
9. International Food for Education
School feeding and child nutrition
Authorizes George McGovern-Robert
Requires establishment of an
projects have been operated within
Dole International Food for Education and
International Food for Education and
broader PVO and United Nations
Child Nutrition Program whereby the
Nutrition Program whereby the
World Food Program (WFP) food aid
President is permitted to direct the
Secretary of Agriculture may provide
portfolios. Clinton Administration
provision of U.S. agricultural commodities
commodities and technical and nutrition
initiated a pilot global food for
and financial and technical assistance for
assistance for programs that improve
education initiative whereby USDA has
foreign preschool and school feeding
food security and enhance educational
committed to provide up to $300
programs to reduce hunger and improve
opportunities for preschool and primary
million (under Section 416 authority)
literacy (particularly among girls), and
school children in recipient countries.
for commodities and transportation
nutrition programs for pregnant and
CCC authority and funds of not more
costs for school and pre-school
nursing women and young children.
than $150 million shall be used in each
nutrition projects and related activities
Authorizes the appropriation of such sums
of FY2002-2005. Eligible organizations
in developing countries. Approved
as may be necessary each year through
i n c l u d e P V O s , c o o p e r a t i v e s ,
projects conducted through the WFP,
FY2011. Gives President authority to
nongovernmental organizations, and
PVOs, and eligible foreign governments
designate the federal agency to administer
foreign countries. [Section 325]
using USDA discretionary authorities.
program; defines eligible recipients to
[General authority under Section 416]
i n c l u d e P V O s , c o o p e r a t i v e s ,
intergovernmental organizations,
governments and their agencies, and other
organizations. [Section 312]

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10. Farmers for Africa & Caribbean
Requires President to create a Farmers for
No provision.
Basin
Africa and Caribbean Basin Program
No provision in current law.
offering grants to eligible organizations to
conduct bilateral exchange programs
utilizing African-American and other U.S.
farmers and agricultural specialists.
Authorizes $10 million in annual
appropriations annually through FY2011.
[Section 311]
11. Terrorism and Foreign
No provision.
Sense of Senate that U.S. foreign aid
Assistance
should play increased role to fight global
No provision.
terrorism. [Section 338]
C. Other Trade Programs
1. Trade Agreement Compliance
Under the 1994 Uruguay Round
If the Secretary of Agriculture determines
Same as House bill, but with additional
Agreement on Agriculture (URAA) the
that total spending for such commodity
language requiring annual notifications
United States agreed to limit the value
support will exceed the limits in the
to Congress on current and following
of trade-distorting U.S. domestic farm
URAA, the Secretary may make
marketing year estimates of support to
supports to $19.1 billion per year.
adjustments in the programs to reduce
be reported to the World Trade
However, U.S. law itself does not place
spending to (but not below) such limits.
Organization, and effectively requiring
an upper limit on such supports.
[Section 181]
Congress to consider amending (within
18 months) any programs that might
cause the URAA limits to be breached.
[Section 164]
2. Technical Assistance for Barriers
to Trade
Various trade agreements discipline
Requires USDA to establish a “Technical
A section within the Biotechnology
countries’ use of sanitary and
Assistance for Speciality Crops”
and Agricultural Trade Program (see
phytosanitary (SPS) and other technical
program, providing direct assistance
below) directs USDA to assist U.S.

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barriers to trade, used by countries to
through public and private projects and
exporters harmed by “unwarranted and
protect their consumers, agricultural
technical assistance, to help overcome the
arbitrary” barriers to trade due to
and natural resources. USDA agencies,
“unique barriers” – such as SPS and
marketing of biotechnology products,
the U.S. Trade Representative, and
related barriers – inhibiting exports of
food safety, disease, or other SPS
other federal agencies have established
U.S. specialty crops (e.g., fruits,
concerns; authorizes appropriations of
mechanisms for identifying such barriers
vegetables). Requires use of $3 million
$1 million annually through FY2006.
and attempting to resolve disputes over
annually in CCC funds through FY2011.
[Section 333]
them. [various laws]
[Section 310]
3. Biotechnology and Agricultural
Trade Program
No provision.
No provision.
Requires USDA to establish a
Biotechnology and Agricultural Trade
Program to address the market access,
regulatory, and marketing issues
related to exports of U.S. agricultural
biotechnology products. Requires
CCC to make available $15 million for
the program annually through FY2006.
[Section 333]
4. Trade Negotiating Objectives
U.S. is now in multilateral negotiations
No provision.
Sense of Congress provision also
to reform further the terms of
contains an explicit description of
agricultural trade in place under the
agricultural trade negotiating
1994 Uruguay Round Agreement on
objectives. [Section 336]
Agriculture. Present trade law contains
a list of explicit U.S. objectives and
consultation requirements for
agriculture that U.S. negotiators are
supposed to follow. [Trade and
Development Act of 2000]
5. Exporter Assistance Initiative
Various federal agencies routinely
No provision.
Authorizes appropriations ($1 million

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provide market intelligence, trade data,
for each of FY2002-2004 and $500,000
and other information aimed at helping
for each of FY2005-2006) for an
U.S. agricultural exporters find,
“Exporter Assistance Initiative” to
understand, and sell into overseas
create an Internet website providing a
markets. For example, both USDA’s
single source of information from all
Economic Research Service and
federal agencies to help U.S. agricultural
Foreign Agricultural Service maintain
exporters. [Section 326]
written and web-based publications and
data series containing much of this
information .[various laws]
6. Cuba Trade Sanctions
FY2001 agriculture appropriations law
No provision.
Lifts restrictions on private financing of
codified the lifting of unilateral
agricultural sales to Cuba [Section 335]
sanctions on commercial sales of food,
agricultural commodities, medicine, and
medical products to Iran, Libya, North
Korea, and Sudan; and extended this
policy to apply to Cuba, but in a more
restrictive way by prohibiting all
financing of such sales, even with
private credit sources. [Section 908 of
the Agriculture, Rural Development,
Food and Drug Administration and
Related Agencies Act, 2001]
7. New Studies and Reports
a. Services provided by USDA’s
a. Requires USDA to study and report to
a. No provision.
Foreign Agricultural Service are
Congress within 1 year on the feasibility of
generally taxpayer-funded.
a program charging fees to pay for
providing commercial services abroad on
matters under USDA’s Foreign
Agricultural Service. [Section 313]

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b. Secretary of Agriculture is required
b. Requires USDA to report to Congress
b. No provision.
to develop a long-term agricultural
within 1 year on national export strategy.
trade strategy every 3 years.
[Section 314]
Subsequent farm bills have provided
more explicit guidance on trade strategy
goals and procedures. [Agricultural
Trade Act of 1978; Food, Agriculture,
Conservation, and Trade Act of 1990;
FAIR Act of 1996.]
c. No provision.
c. Requires USDA annual report to
c. No provision.
Congress on U.S. beef and pork imports
each calendar year. [Section 946]
d. No provision.
d. No provision.
d. Requires USDA to report to
Congress within 120 days on
transportation, infrastructure, and
funding deficiencies that have limited the
use of perishable commodities in food
aid programs. [Section 337]
8. Country of Origin Labeling;
Grading
a. Requires retailers other than restaurants
a. Requires retailers other than
a. Most imports, including many food
and other food service establishments to
restaurants and other food service
items, must bear labels informing the
inform consumers of the country of origin
establishments to inform consumers of
final purchaser of their country of
of “perishable agricultural commodities”
the country of origin of ground and
origin. However, certain “natural
(fresh or fresh frozen fruits and vegetables)
muscle cuts of beef, lamb and pork, of
products” including fresh fruits,
through labels, marks, or other in-store
wild and farm-raised fish, of perishable
vegetables, nuts, live and dead animals
information; specifies the daily fines for
agricultural commodities, and of
(e.g., meats), and fish, among others,
violations. [Title IX, Section 944]
peanuts, through labels, marks, or other
generally are exempted. [Section 304 of
in-store information. Defines what is
the Tariff Act of 1930 as amended;
meant by country of origin for each of
Federal Meat Inspection Act and
these categories; authorizes the
Poultry Products Inspection Act as
Secretary to set up a record-keeping

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amended]
system; authorizes but does not specify
fines for violations. [Title X, Section
1001]
b. USDA provides a fee-based service
b. No provision.
b. Prohibits imported carcasses, meats,
to the industry that grades meats and
or meat food products from bearing a
meat products based on their quality
USDA quality grade label. [Title X,
and affixes those grades to such
Section 1002]
products; both domestic and imported
meats are eligible. [Agricultural
Marketing Act of 1946 as amended]

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CRS-79
IV. NUTRITION PROGRAMS
NUTRITION PROGRAMS
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
A. Food Stamp Program, Food Stamp Act
Title IV of the Farm Security Act of 2001
Title IV of the Agriculture Conservation
(FSA)
and Rural Enhancement Act of 2001
1. Child Support
Child support payments are deducted from the
No provisions.
Allows states to exclude child support
paying household’s income in determining its
payments from income (before
benefits and eligibility – after all income has
calculating any deductions) or continue
been counted. The Secretary may prescribe the
to deduct them.
methods to be used to determine the amount of
the deduction.
Lifts some administrative and reporting
[Section 5(e)(4) of the FSA)]
requirements on program operators and
recipients by allowing states to use
information from state child support
agencies and to freeze the amount of any
child support exclusion/deduction until a
household’s eligibility is redetermined.
[Section 411]
2. Definition of Income
When determining eligibility and benefits
Allows states to conform food stamp income
Same as the House bill, with minor and
household income excludes: noncash income,
exclusions with those of other major
technical differences.
most education assistance, loans, most re-
assistance programs and lift some
[Section 412]
imbursements for expenses, money received for
administrative and reporting requirements on
third parties, non-recurring lump-sum payments,
program operators and applicants/ recipients
the cost of producing self-employment income,
by adding new income exclusions:
federal energy assistance benefits, certain
(1) education assistance and “state
payments related to supporting work efforts,
complementary assistance program
and income excluded by other federal laws.
payments” excluded under Medicaid; and

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[Section 5(d) of the FSA]
(2) any other types of income a state does
not consider when judging eligibility for cash
assistance under its Temporary Assistance
for Needy Families (TANF) program or
Medicaid. [Section 401]
3. Standard Deductions
When determining food stamp benefits and
Establishes fixed multiple standard
Establishes multiple standard deductions
eligibility, all households are allowed a
deductions equal to 9.7% of the federal
equal to an increasing percentage of the
“standard deduction” from counted income. It
poverty income guideline amounts used for
inflation-indexed poverty guideline
is $134 a month for the 48 contiguous states
food stamp income eligibility
amounts. For FYs 2002-2004, the new
and the District of Columbia, $229 for Alaska,
determinations in FY2002. The new
standard deductions would equal 8% of
$189 for Hawaii, $269 for Guam, and $118 for
standard deductions would not increase
each year’s poverty guideline amounts.
the Virgin Islands.
over time. Requires that the new standard
This percentage would rise, in stages, to
[Section 5(e)(1) of the FSA]
deductions not be less than the current
10% for FY2011 and following years.
amount for each jurisdiction or greater
Requires that the new standard
than 9.7% of the FY2002 poverty
deductions not be less than the current
guideline amount for 6-person households.
amount for each jurisdiction or greater
[Section 402]
than the applicable percentage (see
above) of the poverty amount for 6-
person households. [Section 171(c)]
[Note: Standard (and other) deductions reduce
[Note: Poverty guideline amounts vary by
[Note: The House bill would initially
the amount of income counted when calculating
household size and are inflation-indexed
provide higher deduction levels. But
benefits (thereby increasing them). They also
annually. In both the House and Senate
over the longer term, the Senate measure
may affect eligibility determinations because
measures, the new standard deductions
would result in somewhat higher
“net” household income (after deductions) is a
would vary by household size and would
deductions because it is keyed to each
factor in some income eligibility decisions.]
be somewhat higher than current law.]
year’s inflation-indexed poverty
guideline amount (not fixed at the
FY2002 level, as in the House bill).]

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4. Shelter Costs
a. Households are entitled to an “excess shelter
a. No provision.
a. Increases the cap on the amount that
expense deduction” for a portion of their shelter
may be claimed as an excess shelter
expenses (if they are very high in relation to
expense deduction. For FY2003, the
their income). As with the standard deduction
cap would rise to $390 a month for the
(see above), this deduction reduces households’
48 states and the District of Columbia
counted income (thereby increasing benefits)
(with commensurate increases for
and can affect eligibility determinations.
Alaska, Hawaii, Guam, and the Virgin
Islands). For FY2004-FY2009, each
The amount that may be claimed as an excess
amount would be annually adjusted for
shelter expense deduction is “capped” for
inflation. Effective with FY2010, all
households without an elderly/disabled member.
caps would be eliminated. [Section
The cap is indexed for inflation, and, for
169(c)]
FY2002, it is $354 a month for the 48
contiguous states and the District of Columbia,
$566 for Alaska, $477 for Hawaii, $416 for
Guam, and $279 for the Virgin Islands. [Section
5(e)(7) of the FSA]
b. By regulation, only payments directly related
b. No provision.
b. Mandates that any required payment
to shelter may be counted when calculating the
to a landlord be treated as a shelter cost
excess shelter expense deduction.
– without regard to the specific charge it
covers. [Section 414]
c. States may develop (and must document) a
c. No provision.
c. Permits homeless households not
shelter “allowance – not to exceed $143 a
receiving free shelter throughout the
month – that homeless households not in free
month to claim a standard deduction
shelter throughout the month can use (like a
from income ($143 a month) – in lieu of
deduction) when their income is calculated for
a shelter expense deduction. Repeals the
benefit purposes. [Section 5(e)(5) of the FSA]
current shelter “allowance.” [Section
414]
d. “Standard utility allowances” (SUAs) are
d. No provision.
d. Allows states choosing to make SUAs

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SENATE BILL
used in figuring shelter costs for the excess
mandatory to do so for all households
shelter expense deduction. States may make
incurring heating or cooling expenses –
their use mandatory for all households.
without regard to the current metered
However, SUAs may not be used for
public housing and expense pro-rating
households that (1) live in certain centrally
rules. [Section 415]
metered public housing or (2) share expenses
with others (unless the expenses are pro-rated).
[Section 5(e)(7) of the FSA]
6. Calculating Earned Income
By regulation, whenever income is received on
No provision.
Eases some administrative and reporting
a weekly or bi-weekly basis, the state must
requirements on program operators and
convert it to a monthly amount – by multiplying
recipients by allowing states more
weekly income by 4.3 and bi-weekly income by
leeway in how they convert weekly/bi-
2.15 or using the state’s public assistance
weekly income to monthly amounts – as
conversion standard.
long as they make adjustments to ensure
cost-neutrality. [Section 416]
7. Establishing Deductions
By regulation, states must adjust households’
No provision.
Lifts significant administrative and
benefits for most changes in circumstances/
reporting requirements on program
expenses that affect the amount of deductions
operators and recipients by allowing
(and thereby benefits) they may receive.
states to disregard certain changes in
household circumstances/ expenses that
affect the amount of deductions they
may claim – until the household’s next
eligibility redetermination. [Section 417]
8. Resources (Assets)
Eligible households are limited to those with
No provision.
Adds households with disabled members
total counted liquid resources (assets) of $2,000
to those covered by the $3,000 asset
(or $3,000 for households with elderly
limit. [Section 171(c)]

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members). Resources that are excluded include
Allows states to conform food stamp
items such as: a household’s home and personal
resource (asset) rules with those of other
belongings/ furnishings, life insurance, income-
major assistance programs and lift some
producing property, some retirement accounts,
administrative requirements on program
and (to a varying degree) the value of vehicles.
operators and recipients by permitting
[Section 5(g) of the FSA]
states to exclude any types of resources
they do not consider when judging
eligibility under their TANF or Medicaid
programs – with exceptions set by the
Secretary. [Section 418]
9. Issuance Systems in Disasters.
Emergency food stamp benefits are required in
No provision.
Allows the Secretary to issue disaster
the case of disasters. Benefits can be issued
assistance in the form of cash when other
through coupon allotments or electronic benefit
issuance systems are impracticable.
transfer (EBT) systems.[Section 5(h) of the
[Section 419]
FSA]
10. Reporting Requirements for
Households.
No provision.
Lifts some administrative and reporting
With some exceptions, most recipient
requirements on program operators and
households must report significant changes in
recipients by allowing states to require
their circumstances as they occur, those with
households to report most changes in
earnings may report every 6 months, and certain
their circumstances as infrequently as
others may report quarterly. [Regulations &
every 6 months – in lieu of other
Waivers under Section 5(c) of the FSA]
reporting requirements. [Section. 420]
11. Able-Bodied Adults Without Dependents
(ABAWDs)
ABAWDs are ineligible if, during the preceding
No provision.
Eases work requirements for ABAWDA
36 months, they received benefits for 3 months
by: changing the “3-months-out-of-36-
without (1) working 20+ hours a week, (2)
months” rule to make ABAWDs

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SENATE BILL
participating in a work program 20+ hours a
ineligible if, during the preceding 24
week, or (3) participating in a workfare
months they received benefits for 6
program.
months while not meeting 1 of the 3
ABAWDs denied eligibility under this “3-
work-related requirements, and by
months-out-of-36-months” rule can regain it if
changing the rule for regaining eligibility
they meet 1 of 3 work-related requirements for
to provide eligibility whenever
a full month. Qualifying “work programs” do
ABAWDs meet 1 of the 3 work-related
not include job search or job search training.
requirements. Changes the definition of
[Section. 6(o) of the FSA]
“work program” to include job search or
job search training. [Section. 421]
12. Access through Electronic Benefit
Transfer (EBT) Systems
By regulation, states may take benefits provided
No provision.
Requires that benefits provided through
through EBT systems “off-line” after 3 months
EBT systems not be made inaccessible
of inactivity in the recipient’s EBT account.
until at least 6 months have elapsed since
the recipient last accessed the EBT
benefit account. [Section 422]
13. Cost of EBT Systems
The cost of EBT systems must not exceed those
No provision.
Deletes the current EBT “cost-
of the prior issuance system. [Section 7(i)(2)(A)
neutrality” requirement. [Section 423]
of the FSA]
14. Group Living Facilities
a. Where recipients live in substance abuse
a. No provision.
a. In the case of recipients living in
treatment centers, states may require them to
substance abuse treatment centers, small
designate the center as their authorized
group homes for the disabled, or shelters
representative and provide their benefits to the
for battered women/children or the
center. [Section 8(e) of the FSA]
homeless, permits states to use a new
method of calculating and issuing

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NUTRITION PROGRAMS
CURRENT LAW/POLICY
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SENATE BILL
standardized benefits. [Section 424]
b. Without a waiver, group living facilities may
b. No provision.
not redeem food stamp benefits through direct
b. Allows the Secretary to authorize
(on-site) use of EBT cards. Recipients’ EBT
group living facilities to redeem food
cards must be presented and used at approved
stamp benefits through direct use of
retail food outlets. [Sec. 10 of the FSA]
EBT cards. [Sec. 425]
15. Food Stamp Applications
States have responsibility for developing food
No provision.
Requires that states make food stamp
stamp applications.[Section 11(e)(2)(B) of the
applications available on their internet
FSA]
websites. [Section 426]
16. Continuing Eligibility
Eligible households are assigned “certification
No provision.
Replaces assigned certification periods
periods” of up to 12 months (or 24 months for
and rules governing recertification with
the elderly or disabled). At the end of a
new “eligibility review periods” under
certification period, specific procedures must be
which states would periodically review
followed to “recertify” a household and
the eligibility status of recipient
continue issuing benefits.[Sections 3(c) & 11(e)
households following procedures set by
of the FSA]
the state. [Section 427]
[Note: These provision 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.]

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SENATE BILL
17. Transitional Food Stamp Benefits
Regulations permit 3 months’ “transitional food
Lifts significant administrative and reporting
Same as the House bill, except that
stamp benefits” for households leaving TANF.
requirements of program operators and
(similar to current policy) transitional
Transitional benefits generally are adjusted for
recipients by explicitly permitting states to
benefits would be adjusted upward for
any loss of income on leaving TANF and
provide expanded transitional food stamp
the loss of TANF cash aid or any
reported changes in circumstances that would
benefits to households leaving TANF. Food
reported changes in household
increase benefits.
stamps could automatically be continued for
circumstances that would increase food
6 months at the level the household was
stamp benefits. [Section 429]
receiving immediately prior to leaving
TANF. [Section 403]
18. Notices to Retailers
“Adverse action” notices must be delivered to
No provision.
Permits notices to be delivered to
retailers by certified mail or personal service.
retailers by any form of delivery that
[Section 14(a)(2) of the FSA]
provides evidence of delivery.
[Section 430]
19. Quality Control (QC) & Bonus Payments
a. The Food Stamp program’s QC system
a. Substantially changes the QC system as it
a. Same as the House bill, except that it
measures the degree to which states make
relates to fiscal sanctions by raising the
reduces, then ends, added federal
erroneous benefit and eligibility decisions. State
threshold above which states are sanctioned
funding for states with error rates below
“error rates” reported from annual QC sample
to the national average, plus 1 percentage
6%, and requires the Secretary to
surveys are used to (1) provide financial
point. Requires a statistical adjustment to
conduct annual “investigations” of states
rewards to states with very low error rates and
individual state error rates that effectively
with error rates above the new (higher)
(2) assess fiscal sanctions on states having high
lowers all state error rates. Provides that
threshold and fine them if they are found
error rates. Each year, states with total error
sanctions will not be assessed until a state
to be seriously negligent in their
rates below 6% receive added federal matching
has been above the new (higher) threshold
administration of the Food Stamp
money for administration. States with error
for 3 consecutive years. [Section 404]
program. [Section 431]
rates above the national average are assessed
fiscal sanctions based on how far above the
national average they are.

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b. The Secretary has established a policy
b. No provision
b. Establishes in law a requirement to
whereby assessed sanctions are reduced for
adjust all states’ error rates to account
states serving high proportions of households
for high proportions of error-prone
with earners or non-citizens (“error-prone”
households. [Section 431]
households).
c. Federal reviews of QC error-rate
c. No provision.
c. Changes current-law deadlines to May
determinations and arbitration of federal-state
31st and June 30th. [Section 432]
differences must be completed by the end of
March each year. By the end of April, final QC
error rates must be determined and states
notified. [Section 16(c)(8) of the FSA]
d. QC provisions provide additional federal
d. Requires the Secretary to measure states’
d. Requires the Secretary to measure
funding (“enhanced administrative cost-
performance with respect to (1) compliance
states’ performance with respect to (1)
sharing”) for states with error rates below 6%.
with deadlines for prompt determination of
serving working poor households with
eligibility and the issuance of benefits and (2)
children and (2) 4 additional measures
the percentage of negative eligibility
set by the Secretary in consultation with
decisions that are made correctly. Each year,
the National Governors Association, the
requires the Secretary to make “excellence
American Public Human Services
bonus payments” of $1 million each to (1)
Association, and the National
the 5 states with the highest combined
Conference of State Legislatures. Each
performance in the 2 measures noted above
year, requires the Secretary to make
and (2) the 5 states whose combined
“high performance bonus payments”
performance in the 2 measures is most
totaling $6 million for each of the 5
improved. Retains funding for states with
measures noted above. Reduces, then
error rates below 6%. [Section 404]
ends funding for states with error rates
below 6%. [Section 433]
[Note: The changes to the QC system in
both the House and Senate measures
would greatly reduce the number of
states assessed sanctions and the amount
of sanctions assessed. ]

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20. Grants for Simplified Application and
Eligibility Systems
No provision.
Requires the Secretary to spend up to $9.5
No provision.
million a year to pay states for developing
and implementing simple application and
eligibility determination systems.[Section
405]
21. Employment and Training (E&T)
Programs
a. Through FY2002, food stamp law requires
a. Extends the requirement for unmatched
a. Extends the requirement for
unmatched federal funding for E&T programs
federal funding for E&T programs through
unmatched federal funding for E&T
for food stamp recipients. For each year,
FY2011. Sets the amount at the current
programs through FY2006. Sets the
specific amounts are provided (e.g., a total of
FY2002 level (a total of $165 million a
amount at $90 million a year, available
$165 million for FY2002). Unmatched money
year). [Section 406(a)]
until expended. Rescinds the unspent
is available until expended (about $300 million
carryover balance.
is now unspent).
b. States must use at least 80% of their total
No provision.
b. In addition to the $90 million noted
allocation of unmatched federal funds for
above, provides up to $25 million a year
services to ABAWDs.
for services to ABAWDs. Eliminates the
current-law “80%” requirement for
services to ABAWDs.
c. To receive a portion of their federal funds
c. No provision.
c. Eliminates the current-law
allocation (e.g., $75 million in FY2002), states
“maintenance of effort” requirement.
must maintain their E&T spending at the
FY1996 level.
d. The Secretary may set specific dollar
d. No provision.
d. Ends the Secretary’s authority to set
amounts that the federal government will pay
per-placement funding amounts.

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for each E&T program placement.
e. No provision.
e. Eliminates the current-law limit on
e. Federal matching funds are provided for non-
federal funding for participant support
child-care E&T participant support costs (e.g.,
costs.
transportation) – i.e., half of all costs up to half
of $25 per person per month.
[Section 406(a)]
[Sections 169(c) & 434]
[Section 6(d) & 16(h) of the FSA]
22. Food Stamp Informational Activities
States are barred from using TANF funds to
No provision.
Permits states to use TANF funds for
conduct food stamp informational (“outreach”)
food stamp informational (“outreach”)
activities. [Section 16(k) of the FSA]
activities. [Section 436]
23. Pilot Project Waivers
The Secretary may grant waivers from Food
No provision.
Makes clear that the Secretary may grant
Stamp Act rules when carrying out pilot
waivers from federal food stamp rules in
projects. This authority is unclear for pilot
all pilot projects, regardless of the entity
projects implemented by non-federal entities.
that implements them. [Section 437]
[Section 17 of the FSA]
24. Reauthorization
Expiring at the end of FY2002 are:
Extends expiring authorities through
Extends expiring authorities through
– appropriations authorizations for the Food
FY2011.
FY2006.
Stamp program and the Food Distribution
[Section 406]
[Section 435]
Program on Indian Reservations;
– authority to reduce administrative cost
payments to states by $197 million a year;
– authority for a limited number of pilot projects
granting cash food stamp benefits; and
– authority for outreach pilot projects.

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[Section 18(a), 16(k), 17(b), & 17(i) of the
FSA]
25. Puerto Rico and American Samoa
a. In lieu of regular food stamp program, Puerto
a. Extends Puerto Rico’s block grant
a. Consolidates nutrition assistance grant
Rico receives an annual nutrition block grant,
through FY2011, retaining annual inflation
funding for Puerto Rico and American
authorized through FY2002. It covers all
indexing. Also permits Puerto Rico to use
Samoa. Mandates the consolidated
benefits costs and 50% of any administrative
up to $6 million of its FY2002 grant to pay
grant through FY2006. The base
costs and is annually indexed for food price
costs of upgrading electronic systems
consolidated grant is $1.356 billion
inflation. FY2002 grant amount is
without matching the amount. [Section
(FY2002). It is then adjusted for food-
$1,350,518,000. [Section 19 of FSA]
406(f)]
price inflation beginning with FY2003.
Puerto Rico’s annual share is 99.6%.
Like House bill, permits Puerto Rico to
use up to $6 million in FY2002 for costs
of upgrading electronic systems.
[Section 439]
b. American Samoa receives annual grant
b. Extends American Samoa’s grant
b. American Samoa share is .4% of each
covering all expenditures for its general
through FY2011. Increases it to $5.75
year’s new consolidated grant. Its
nutrition assistance program. The grant is
million for FY2002 and $5.8 million for
current grant is repealed. [Section 439]
authorized through FY2002 at $5.3 million a
later years. [Section 406(g) & (j)]
year. [Section 24 of the FSA]
26. Vitamin and Mineral Supplements
Food stamp benefits can be used only to
No provision.
Permits the use of food stamp benefits to
purchase food items (or, in some cases,
purchase dietary supplements that
prepared meals). [Section 3(g) of the FSA]
“provide exclusively one or more
vitamins or minerals.” Requires a report
on the effects of this new provision.

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[Section 445]
27. Noncitizens
a. Children – Legal permanent residents who
a. No provision.
a. Makes legal permanent residents
were living in the U.S. as of August 22, 1996,
under age 18 eligible for food stamps –
and who are under age 18 are eligible for food
regardless of their date of entry. Also
stamps.
exempts them from requirements that
their sponsor’s financial resources be
deemed to them in determining food
stamp eligibility. [Section 452(a)]
b. Work history requirement – Legal permanent
b. No provision.
b. Reduces the work history requirement
residents with a substantial work history
to 16 quarters (4 years). [Section
(defined as 40 quarters, or 10 years) are eligible
452(b)]
for food stamps.
c. Humanitarian cases – Asylees, refugees,
c. No provision.
Cuban/ Haitian entrants, certain aliens whose
c. Removes the 7-year limit on eligibility
deportation/removal is being withheld for
for humanitarian cases. [Section 452(c)]
humanitarian reasons, and Vietnam-born
Amerasians fathered by U.S. citizens are eligible
for food stamps for 7 years after entry/grant of
status.
d. Disability benefit recipients – Legal
permanent residents who were living in the U.S.
d. No Provision
d. Makes eligible disabled legal
as of August 22, 1996, and who are receiving
permanent residents receiving federal
federal disability benefits are eligible for food
disability benefits – without regard to
stamps.
their date of entry. [Section 452(d)]
e. No provision.
e. No provision.
e. Makes eligible individuals who have

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continuously resided in the U.S. legally
[Section 402(a) of the Personal Responsibility
for a period of 5 years (e.g., as legal
and Work Opportunity Reconciliation Act of
permanent residents). This new 5-year
1996]
residence rule would not apply in the
case of aliens who entered the country
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
residence rule noted in item (e) above
would be effective April 2003.]
B. Commodity Assistance Programs
The Food Stamp Act (FSA), the Emergency
Title IV, Nutrition Programs, The Food
Title IV, Nutrition Programs, The
Food Assistance Act, and the Agriculture and
Security Act of 2001.
Agriculture, Conservation and Rural
Consumer Protection Act of 1973
Enhancement Act of 2001
1. The Emergency Food Assistance Program
(TEFAP)
a. Commodity Purchases - From amounts
a. Extends the purchase requirement
a. Extends the purchase requirement
available under the Food Stamp Act, the
through FY2011; raises the amount to
through FY2006 and raises the amount
Secretary is required to use $100 million a year
$140 million a year beginning in FY2002
to $110 million a year beginning in
through FY2002 to purchase commodities for
and requires the Secretary to use $10
FY2002. Same as House bill with
TEFAP. [Section 27 of the FSA]
million a year to pay for costs related to
respect to $10 million set aside for
processing, storing, transporting and
processing, storing, transport and
distributing commodities. [Section 406(i)
distribution costs. [Section 441]
& (j)]

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[Note: Section 166 of the Senate
amendment requires the Secretary to buy
not less than $40 million a year in
additional commodities for TEFAP each
year through FY2006.]
b. Administrative/distribution costs- $50 million
b. In addition to $10 million set-aside
a year is authorized through FY2002 for the
noted above, extends through FY2011, the
b. Same as the House bill, except the
costs of administering the program and
$50 million authorization for food stamp
authorization is extended through 2006.
distributing commodities. [Section 204(a) of the
administrative and distribution costs.
[Section 451(d)]
Emergency Food Assistance Act]
[Section 443]
2. Commodity Supplemental Food Program
(CSFP) and commodity authorities.
a. Expirations. Expiring at the end of FY2002
a. Extends expiring CSFP and commodity
a. Extends expiring CSFP and
are: authority for the Commodity Supplemental
authorities/requirements through FY2011.
commodity authorities/requirements
Food Program (CSFP), requirements to provide
[Sections 441 & 442]
through FY2006. [Section 451]
cheese and nonfat dry milk to the CSFP,
requirements for commodity processing
agreements, and general authority to obtain
commodities to maintain traditional levels of
support for various commodity distribution
activities.
[Section 4 & 5 of the Agriculture and
Consumer Protection Act of 1973; Section
1114(a)(2) of the Agriculture and Food Act of
1981]
b. CSFP Administrative Costs: The Secretary is
b. No provision
b. Replaces the current limit on
required to pay the CSFP administrative costs
administrative payments with a
of state/local agencies – but may not use more
requirement for “grants per caseload
than 20% of the CSFP appropriations.
slot.” Requires the Secretary to provide
each state a grant per assigned caseload
[Section 5 of the Agriculture and Consumer
slot set – set by law at $50, indexed

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Protection Act of 1973]
beginning in FY2003. [Section 451]
3. Use of Approved Food Safety Technology
No provision.
No provision.
Bars the Secretary from prohibiting the
use of “any technology that has been
approved by the Secretary or the
Secretary of Health and Human
Services” in acquiring commodities for
distribution through domestic nutrition
programs. [Section 442]
4. Use of Commodities for Domestic Feeding
Programs
No provision.
No provision.
Provides that any commodities acquired
in the conduct of Commodity Credit
Corporation (CCC) operations and any
“Section 32" commodities may be used
for any domestic feeding program.
Covered domestic programs include:
TEFAP, and programs 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

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obligations (including quantities
otherwise reserved for specific
purposes).
[Section 457]
C. Child Nutrition Programs
Richard B. Russell National School Lunch Act
Title IV Nutrition Programs, Farm
Title IV, Agriculture, Conservation, and
and Child Nutrition Act of 1966
Security Act of 2001
Rural Enhancement Act of 2001
1. Commodities for the School Lunch
Program
Beginning with FY2002, any commodities
No provision.
Delays until FY2004, the date by which
supplied to the School Lunch program are to be
bonus commodities supplied to the
counted in meeting the requirement that 12% of
School Lunch program will count
all federal school lunch support (cash +
toward the 12% requirement – in effect,
commodities) be in the form of commodities.
mandating that only entitlement
This would include commodities provided to
commodities count toward meeting the
meet the entitlement (15 cents in value per
requirement until then. This was the
lunch) and “bonus” commodities provided at the
case under pre-FY2002 law. [Section
Secretary’s discretion from stocks acquired to
453]
support the agricultural economy. [Section
6(e)(1) of the Richard B. Russell National
[Note: Section 166 of the Senate
School Lunch Act]
amendment requires the Secretary to
provide at least $50 million a year
through FY2006 to the Defense
Department (DoD) for the purchase and
distribution of fresh fruits and vegetables
to DoD schools and institutions
participating in child nutrition programs.]

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2. Eligibility for Free and Reduced-Price
School Meals and WIC Benefits: Military
Housing
a. No Provision
a. Through FY2003, requires that, in
cases where military personnel live in
a. School meals – All military housing
[Note: H.R. 3216 – passed by the House
“privatized” housing, their housing
allowances reported on leave and earnings
on December 11, 2001 – contains the
allowance will not be counted in
statements are counted as income in
provision included in the Senate
determining eligibility for free and
determining eligibility for free and reduced-price
amendment.]
reduced-price school meals. [Section
school meals. The value of on-base (free)
454]
housing is not. In the case of “privatized”
military housing – where formerly free housing
is converted to privately operated housing (or
families are moved from free housing to
privately operated housing) and military
personnel are given a housing allowance to pass
on to the housing operator – the allowance is
counted. [Regulations under Section 9 of the
Richard B. Russell National School Lunch Act]
b. The WIC program – In determining income
b. No provision.
b. Adds an option for states to exclude
eligibility for the Special Supplemental Nutrition
any housing allowance provided to
Program for Women, Infants, and Children (the
military personnel living in on-base
WIC program), state may choose to exclude any
“privatized” housing. [Section 455]
housing allowance received by military
personnel residing “off-base.”
[Section 17(d)(2)(B) of the Child Nutrition Act]

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3. Funding for the WIC Farmers’ Market
No provision.
Makes available an additional $15
Nutrition Program
million in mandatory funding for the
WIC Farmers’ Market Nutrition
No comparable provision.
program – no later than 30 days after
[Note: The FY2003 budget documents indicate
enactment. [Section 460]
that, for FY2002, $11 million will be made
available for the WIC Farmers’ Market
Nutrition program from WIC discretionary
funding. For FY2003, no money is requested
for the program.]
D. Special Projects
1. Nutrition Education Clearinghouse
No provision.
No provision.
Requires the Secretary to establish (on
the Department’s website) a nutrition
education clearinghouse. [Section 428]
2. Access and Outreach Pilot Projects
Authorizes grants to states and other
No provision.
No provision.
entities to pay the federal share (75%) of
the cost of projects to improve access to
food stamp benefits or outreach to eligible
individuals. Authorizes appropriations
totaling $3 million. [Section 438]
3. Community Food Projects
Through FY2002, the Secretary is authorized to
Extends authority for community food
Extends authority for community food
make grants to private nonprofit entities for
project grants through FY2011. Increases
project grants through FY2006.
“community food projects.” Funding is reserved
the amount reserved to $7.5 million a year.
Maintains the amount reserved at $2.5
from Food Stamp Act appropriations. And grants
[Section 406(h) & (j)]
million a year. Increases the federal share
may not exceed a total of $2.5 million a year.
of project costs from 50% to 75%.
[Section 25 of the FSA]
Slightly modifies the list of projects that

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must be given preference for grants.
[Section 440]
4. Innovative Programs for Addressing
Common Community Problems
No provision.
No provision.
Requires the Secretary to contract with a
non-governmental organization to
recommend innovative programs for
addressing “common community
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]
5. Report on Electronic Benefit Transfer
Systems
No provision.
No provision.
Requires the Secretary to submit a report
to Congress on EBT systems (e.g.,
difficulties relating to their use, fraud).
[Section 444]
6. Report on Conversion of the WIC
Program into an Individual Entitlement
Program
No provision.
No provision.
No later than December 31, 2002,
requires a report from the Secretary – to
the House Committee on Education and
the Workforce and the Senate
Committee on Agriculture, Nutrition,

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and Forestry – that analyzes conversion
of the WIC program from a
discretionary program into an individual
entitlement program. [Section 456]
7. Purchases of Locally Produced Foods
No provision.
No provision.
Requires Secretary to encourage the
purchase of locally produced foods in
school meal programs and provides for
start-up grants to defray costs incurred
in carrying out this policy. [Section 458]
8. Senior Farmers’ Market Nutrition
Program
Using funding available under Commodity Credit
For FYs 2002-2011, authorizes a Senior
For FYs 2002-2006, requires the
Corporation authorities, a Senior Farmers’
Farmers’ Market Nutrition program and
Secretary to carry out and expand a Senior
Market Nutrition program was instituted by the
requires the Secretary to support it with $15
Farmers’ Market Nutrition program.
Secretary in January 2001. Initial funding was set
million a year from Commodity Credit
Provides mandatory funding of $15 million
at $15 million.
Corporation funds. Authorizes the Secretary
a year. Authorizes the Secretary to issue
to issue regulations to carry out the
regulations to carry out the program.
Under the FY2002 Agriculture Department
program. [Section 925]
[Section 459]
appropriations law, $10 million is provided as a
direct appropriation for a Senior Farmers’ Market
[Note: These provisions are located in Title
Nutrition program. This amount may be
IX of the House measure.]
supplemented with support from the Commodity
Credit Corporation.
9. Fruit and Vegetable Pilot Program
No provision.
In the 2002-2003 school year, requires the
No provision.
Secretary to use “Section 32" funds to
conduct and evaluate a pilot program to
make free fruit and vegetables available to
elementary and secondary school students.
[Section 461]

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10. Congressional Hunger Fellows Program
Establishes – as an independent agency of
Same as the House bill, with minor and
Bill Emerson and Mickey Leland Hunger
the legislative branch – the Congressional
technical differences.[Section 462]
Fellowships are provided through the
Hunger Fellows Program to offer
Congressional Hunger Center and given funding
fellowships that provide training and
through annual Agriculture Department
placements with domestic and international
appropriations laws (e.g., $2.496 million in
policy development organizations. The
FY2002).
purposes of the program are to: encourage
careers in humanitarian 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]
11. Nutrition Information and Awareness
Pilot Program. No provision.
No provision.
Authorizes a pilot program to increase
domestic consumption of fresh fruit and
vegetables. The federal share of project
costs would be 50%, and $25 million a
year is authorized to be appropriated for
the projects.[Section 463]
E. Effective Dates and Cost Estimates
Effective Dates
Generally effective October 1,
Generally effective September 1, 2001 –
2002.[Section 462]
except that states may choose not to
implement provisions until October 1,
2002.[Section 464]

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Cost Estimates
CBO estimates.
CBO estimates.
For all nutrition assistance for FY2002-2011
For all nutrition assistance for FY
– $3.79 billion (outlays/budget authority).
FY2002-2011) – $9.34 billion (outlays)
This includes $3.64 billion for Title IV
and $8.76 billion (budget authority). For
(including $400 million attributable to new
Title IV, CBO estimates FY2002-FY2011
spending for TEFAP), and $150 million for
costs of $8.89 billion (outlays) and $8.31
the Senior Farmers’ Market Nutrition
billion (BA). For Title I, this would
Program in Title IX of the bill.
include (1) $200 million attributable to
new commodity purchases for TEFAP and
(2) $250 million attributable to new
spending on fruit and vegetable purchases
for child nutrition programs.

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CURRENT LAW/POLICY
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Consolidated Farm and Rural
Title V, Farm Security Act of 2001
Title V, Agriculture Conservation,
Development Act (Con Act)
Rural Enhancement Act of 2001
A. Farm Ownership/Real Estate Loans
1. General Provisions
a. Currently, if a person qualifies for a
No provision.
a. Expands direct loan use to include
farm ownership loan from USDA after
refinancing of a “bridge” loan taken out
all of USDA’s funds have been
if a person was approved for a USDA
allocated, the person must wait to
loan, but is waiting on available funds.
receive USDA funds until: the next
[Section. 502]
fiscal year; enactment of a
supplemental funding bill; or, until
funds are re-allocated from another
state. [Section 303(a)(1)]
b. Allows USDA to make or guarantee
No provision.
b. Purposes for which USDA may
loans for value-added or processing
make and guarantee loans. [Section
projects. [Section 523]
310B(a)]
2. Eligibility
a. Requires persons to have
No provision.
a. Expands eligibility to persons who
“operated” a farm for at least three
have “participated in the business
years in order to receive a loan from
operations of” a farm. [Section 501]
USDA. [Section. 302(b)(1)]
b. USDA cannot make a down
No provision.
b. Changes payment time limit to 20
payment loan if a farmer receives
years. [Section 507]
other financing requiring a balloon

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payment within 10 years. [Section
310E(c)]
3. Beginning Farmers
a. Establishes limits on amount
No provision.
a. Sets $250,000 limitation on farm
USDA may lend or guarantee to a
ownership loan by USDA for a
borrower. [Section 305(a)]
beginning farmer. [Section 503]
b. Sets Interest rate terms on real
No provision.
b. Sets interest rates for beginning
estate loans. [Sec 307(a)]
farmers 50 basis points below other
borrowers. [Section 504]
c. Permits but does not require
No provision.
c. Requires USDA to guarantee 95%.
USDA to guarantee up to 95% of a
[Section 505]
down payment loan for a beginning
farmer. [Section 309(h)(6)]
d. State loans guarantee.
No provision.
d. Adds Section 309(j) to the Con Act
No Provision
to allow USDA to guarantee loans
made under a State beginning farmer
program. [Section 506]
e. Allows USDA to make loans to
Raises loan period to up to 15 years.
e. Raises percentage to up to 40% and
qualified beginning farmers for down
[Section 515]
time up to 20 years. [Section 507]
payments on farm ownership loans at
up to 30% of the farm’s value and for
up to 10 years. [Section 310E(b)]
f. Guarantee owner-financed loans.
No provision.
f. Adds Section 310F requiring USDA
No provision
to carry out a pilot program in at least
10 states with up to five borrowers per
state in each year FY2003-2006, to
guarantee owner-financed loans made

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to a beginning farmer. [Section 508]
B. Operating Loans
1. General Provisions
a. Allows USDA to make direct
No provision.
a. Allows one-time waivers for two
operating loans to farmers for up to
years if a borrower meets certain
seven years. [Section 311(c)]
conditions. Also, waives the seven-
year limit for Indian farmers on
reservations if USDA determines
commercial credit is not generally
available. [Section 512]
b. Allows USDA to guarantee an
b. Suspends 15-year limit during
annual operating loan each year for up
calendar years 2002-2006. [Section 502]
No provision.
to 15 years to a borrower, after which
the borrower must graduate to
commercial sources of credit. [Section
319(b)]
2. Beginning Farmers
Allows USDA to make direct
No provision.
Removes five year limit. [Section 511]
operating loans to beginning farmers
who have operated a farm for up to
five years. [Section 311(c)(1)(A)]
3. Indian Farmers
Guarantees on loans are set at 90%,
No provision.
Adds Section 309(h)(7) to allow USDA
with exceptions for refinanced loans
to guarantee 95% of an operating loan
and beginning farmer loans, which are
made to a member of an Indian tribe for
guaranteed at 95%. [Section 309(h)]
a farm within a reservation. [Section

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512]
C. Emergency Loans
Emergency loan procedures. [Section
Expands eligibility for emergency loans
No provision.
321, 323, 324, 329]
to include plant or animal quarantines,
and sharply increasing energy costs.
[Section 510]
—Allows financial assistance when
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.
D. Administrative Provisions
1. Eligibility
a. Sets forth persons and entities
a. Extends USDA loan eligibility to
a. Same as House Bill. [Section 521]
eligible for loans and guarantees from
limited liability companies engaged in
USDA. [Secs. 302(a), 311(a), and
farming and controlled by farmers
321(a)]
[Section 501]
b. Requires a county committee to
b. Removes requirement. [Section 505]
b. Removes requirement that reviews
certify in writing that an annual review
be certified in writing. [Section 525]
of borrowers’ credit history and
continued eligibility for loans has been
performed. [Section 333]
c. Removes the requirement of the
c. Requires a borrower to complete
No provision.
committee’s determination before

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educational training unless the county
USDA may grant a waiver, and
committee determines the borrower
requires USDA to set up criteria for
has adequate knowledge, in order to
granting a waiver. [Section 532]
be eligible for a direct loan from
USDA. [Section 359(f)]
d. Requires Secretary to evaluate the
d. Technical amendment removing
d. Technical amendment striking the
farming plan of each applicant after
language
words “established pursuant to section
the county committee has determined
requiring county committee to determine
332 “ (which is authority for county
the applicant is eligible for a loan.
loan eligibility. [Section 507]
committees that was repealed by
[Section 360(a)]
P.L.103-354. [Section 552(d)]
[Note: The Department of
Agriculture Reorganization Act of
1994 (P.L. 103-354) repealed Section
332 of the Con Act, which established
county committees.]
e. Prohibits USDA from making a
e. Amends to allow direct loans to
No provision.
direct loan to a borrower who has
borrowers who have not received debt
received debt forgiveness. [Section
forgiveness more than two times, and
373(b)(1)]
allow loan guarantees to borrowers who
have not received debt forgiveness more
than three times. [Section 519]
f. Eligibility for USDA employees.
f. Adds a new section (Section 377) to
No provision.
No provision
Subtitle D of the Con Act to allow
USDA employees to obtain direct or
guaranteed loans, so long as a local
county office other than the applicant’s
home office approves the loan
application. [Section 509]

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2. General Provisions
a. Allows USDA to administer the
a. Removes county committees from
certified and preferred lender guaranteed
having to review and make
a. Sets forth various loan
loan programs through central offices in
recommendations regarding the debt
administration procedures. [Section
states or multi-state areas. [Section 503]
settlement agreement reached by a
331(b)]
borrower and USDA. [Section 522]
b. Allows USDA to contract with
b. Extends authority through FY2011.
b. Removes Section 331(d). [Section
private lenders to service loans
[Section 511]
523]
through the end of FY2002. [Section
331(d)]
c. Allows USDA to use a private
No provision.
c. Removes this authority for contracts
collection agency to collect loan
entered into after enactment of the farm
obligations. [Section 331(e)]
bill. [Section 523]
d. Requires USDA to provide a short,
d. Raises amount to $150,000. [Section
d. Raises amount to $100,000.
simplified application for guarantees
504]
[Section 526]
of loans up to $50,000. [Section
333A(g)(1)]
e. Allows USDA to guarantee 80%
e. Allows USDA to guarantee less than
No provision.
of a loan made to a qualified
80%, if a borrower’s income is below
borrower. [Section 339]
expenditures. [Section 506]
f. Describes the term “debt
f. Excludes from the definition any
f. Similar to House bill. [Section 528]
forgiveness.” [Section 343(a)(12)]
write-down provided as part of a
resolution of a discrimination complaint
against USDA. [Section 518]
g. Definitions. [Section 343]
g. Includes “horses” under the term
No provision.
“livestock.” [Section 521]

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h. Sets loan authorization levels and
h. Removes limitation on total loan
h. Authorizes total USDA loans and
program administration. [Section 346]
amounts USDA may make or guarantee.
guarantees up to $3.796 billion annually
[Section 512]
for FY2002-6, with $770 million for
direct loans and $3.026 billion for
guaranteed loans. [Section 169]
i. Shared appreciation arrangements
i. Prohibits USDA from foreclosing or
i. Allows SAA borrowers an
(SAA). [Section 353(e)]
collecting payments on SAAs until after
alternative to repaying the recapture
December 31, 2002. [Section 522]
amount by allowing USDA a 25-year
agricultural use protection and
conservation easement in lieu of
payment of recapture amount. [Section
531]
NOTE: CBO estimates one-year
FY2002 cost of $66 million for this
provision
j. Reserves funding for socially
j. Allows remaining, unused funds to be
No provision.
disadvantaged farmers. [Section
reallocated to other states. [Section 520]
355(c)(2)]
k. Requires loan assessments to be
No provision.
k. Changes to annual assessments.
conducted biannually to assess the
[Section 533]
progress of a borrower in meeting the
goals for the farm operation. [Section
360(d)(1)]
l. Making and servicing loans.
l. Adds a new section (Section 376) to
No provision.
No provision
Subtitle D of the Con Act to require
USDA to use Farm Service Agency
(FSA) county office employees to make
and service loans if personnel are trained
to do so. [Section 508]

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CRS-109
FARM CREDIT
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
m. Studies of USDA loans. No
m. New provision directing USDA to
No provision.
provision
conduct studies of direct and guaranteed
loan programs to include number of
loans, average principal amount, and
delinquency and default rates. [Section
517]
3. Interest Rates
a. Provides that the interest rate on a
No provision.
a. Provides a third option of the rate in
loan being rewritten is to be the lower
effect on the date the borrower applies
of the original interest rate or the rate
for servicing. [Section 524]
in effect at the time the loan is
rewritten. [Section 331B]
b. Authorizes USDA to administer an
b. Reauthorizes through FY2011.
b. Permanent reauthorization. [Section
interest rate reduction program for
[Section 514]
530]
guaranteed loans, through FY2002.
[Section 351]
c. Allows USDA to make payments
No provision.
c. Sets the limit for beginning farmers
to a lender to reduce a borrower’s
at 4%, and 3% for other borrowers.
interest up to 4%; sets spending limit
Increases spending to $750 million per
at $490 million.
FY and requires at least 25% of the
funds must be reserved for beginning
farmers until April 1 of each FY.
[Section 530]
4. Beginning Farmers
a. When USDA acquires property,
No provision.
a. Changes time period to 135 days,
within 75 days the property must be
and allows USDA to combine/divide
offered for sale to a beginning farmer
acquired properties in order to
at current market value. [Section
maximize opportunity for beginning

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CRS-110
FARM CREDIT
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
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. Allows a “qualified beginning
No provision.
b. Increases acreage amount to 30%.
farmer” to own land in an acreage
[Section 528]
amount up to 25% of the median
acreage of farms in the county.
[Section 343(a)(11)]
c. Loans reserved for beginning
c. Reserves 35% of loan amounts for
c. Reserves 35% for FY2002-2006.
farmers and ranchers. [Section
beginning farmers and ranchers during
[Section 529]
346(b)(2)(A)(ii)]
FY2002-2011. [Section 513]
Requires $5 million of CCC funds be
used for direct farm ownership loans.
[Section 169]
E. Department of Agriculture Reorganization Act of 1994
Provides that decisions by FSA county
No provision.
Excludes credit decisions from the 90-
committees become final within 90
day finality rule. [Section 551]
days after the date a person applies for
benefits. [Section 281(a)]
F. Farm Credit System (Farm Credit Act of 1971)
a. Requires that in order for a bank
No provision.
a. Removes the requirement that prior
for cooperatives to purchase a
approval must be given by the FCS
participation in a loan originated by a
bank. [Section 541]
commercial bank to an entity that can
be financed by another Farm Credit
System (FCS) bank, approval must be
obtained from the FCS bank that
functions where the loan is being

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CRS-111
FARM CREDIT
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
made. [Section 3.1(11)(B)]
b. Allows CoBank to finance the
No provision
b. Expands CoBank’s ability to lend by
export of farm machinery and other
removing the “on farm” requirement
farm-related products that are
and allowing it to finance agriculture-
intended for use on farms in foreign
related processing equipment and
countries. [Section 3.7]
machinery and other capital goods
related to storing or handling
agricultural commodities. [Section 542]
c. Contains provisions for premiums
No provision
c. Allows the FCS Insurance
with regard to the insurance of loans
Corporation to adjust premiums
for the Farm Credit System (FCS),
charged according to FCS’ government
which has GSE status that implicitly
sponsored enterprise (GSE) status.
protects against failure and reduce
[Section 543]
risk. [Section 5.55]
d. Establishes a 15-member Board of
No provision.
d. Increases Board to 17 members, and
Directors for Farmer Mac, a
makes other changes to the Board’s
secondary market agricultural lender.
structure. [Section 544]
[Section 8.2]
G. Miscellaneous Credit and Finance Provisions
1. Horse Breeder Loans
[Note: language was included in the
New provision authorizing loans to
No provision.
FY2002 Agricultural Appropriations
horse breeders to assist for losses as a
law (P.L.107-76; Section 759(c)),
result of mare reproductive loss
providing for loans with loan terms
syndrome:
up to 20 years.]
–at least 30% of mares failed to produce
live, healthy foal;
–breeder was unable to meet expenses or
obtain credit elsewhere;

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CRS-112
FARM CREDIT
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
–loan amount up to $500,000, with term
up to 15 years;
–loan authority expires end of FY2003.
[Section 516].
2. Emergency Loans for Seed
Producers
Producers of the 1999 crop of seed
No provision.
Amends repayment period to 54 months.
who did not received payments from
[Section 1064]
AgriBiotech as a result of bankruptcy
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
Provisions
No provision.
Reenacts Chapter 12, effective to October
Chapter 12 of Title 11 USC, sets forth
1, 2001. [Section 1071]
bankruptcy provisions for family farmers.

---

CRS-113
VI. RURAL DEVELOPMENT
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
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, including $133.7
million in salaries and expenses.]
B. Fund for Rural America
Fund for Rural America, 7 U.S.C.
Not Extended
Not Extended
2004(f). Three program accounts: rural
development, 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 proscribed
expenditures to carry out Fund
programs in 2002 as they did in

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CRS-114
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
FY1999.]
C. Telecommunications
1.Authorizes grants to broadcast
No Provision
Grants to Broadcasting Systems.
systems. [FAIR, Section759B]
Authorizes $5 million each year,
Consolidated Farm and Rural
FY2002-2006. [Section 632]
Development Act of 1972, U.S.C.
1932(f), [Section 310B(f)]
2. Title X of the District of Columbia
Authorizes $200 million during
No Provision
Appropriations Act of 2001 (P.L.106-
FY2002-2006 for loan guarantees.
553) authorizes the Launching Our
[Section 601]
Communities’ Access to Local
Television Act of 2000.
3. Consolidated Farm and Rural
No Provision
Establishes Rural Teleworks Program
Development Act ,7 U.S.C. 1981 et
and authorizes funding of $150 million.
seq..
[Section 641]
4. Telemedicine and Distance Learning
No Provision
Reauthorizes the Telemedicine and
Grants authorized through 2002.
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).

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CRS-115
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
4.The Rural Electrification Act of 1936
No Provision
Enhanced Access to Broadband
(7 U.S.C. 901 et seq.)
Services. Provides $100 million per
year, FY2002-2006 for grants and
loans. [Section 605]
[Note: Limited to communities of less
than 20,000 population; standards to be
reconsidered every 3 years.]
D. Value-added Agriculture Development
1. Establishes value-added market
Value-Added Agricultural Product
Value-added Agriculture Market
grants under the Agricultural Risk
Market Grants. Establishes expanded
Development Grants. Provides $75
Protection Act of 2000 (P.L.106-224;
eligibility for value-added grants
million per year, FY2002-2006.
7 U.S.C. 162. [ Section 231(a)]
Authorizes $60 million each year
[Section 606]
FY2002-2011. [Section 602]
2. Establishes the intermediary lending
No Provision
Value-Added Intermediary
program under the Food Security Act
Relending Program. Provides $15
of 1985 (7 U.S.C. 1932 note; Public
million in each year, 2003-2006.
Law 99-198). [Section 1323(b)(2)(C)]
[Section 634]
3. Agricultural Risk Protection Act of
Agriculture Innovation Center
No Provision
2000 (P.L.106-224; 7 U.S.C. 162).
Demonstration Program. Authorizes
[Section 231(a)(1)]
$5 million in FY2002 and not less than
$10 million in FY2003 and 2004.
[Section 603]
[Note: The provision makes available
part of the funding for value-added
market grants in Section 602.
4. Consolidated Farm and Rural
No Provision
Delta Region Agricultural Economic
Development Act of 1972, 7 U.S.C.
Development. Provides $7 million

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CRS-116
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
1981 et seq.
each fiscal year 2002-2006 for animal
nutrition technology development and
value-added manufacturing. [Section
647, Section 379f]
5. Consolidated Farm and Rural
Training for Farm Workers in new
No Provision
Development Act of 1972, 7 U.S.C.
technologies necessary for higher value
1922-1949.
crops. Authorizes up to $10 million
each year, FY2002-2011. [Section 617]
E. Water and Waste Treatment Programs
1. Subtitle A, Consolidated Farm and
Grants to Nonprofit Organizations to
No Provision
Rural Development Act of 1972, 7
finance the construction or improvement
U.S.C. 1922-1949.
of well-water systems for low or
moderate income households. [Section
614]
2. Consolidated Farm and Rural
No Provision
SEARCH Grants for Small
Development Act of 1972, 7 U.S.C.
Communities Provides $51 million to
1921 et seq.
communities under 3,000 in population.
[Section 646]
[Note: SEARCH grants assist very
small communities in meeting various
environmental regulations associated
with water and waste disposal. Program
would create a new Subtitle J to the
Consolidated Farm and Rural
Development Act of 1972.]
3. Amends Section 306(a) the
Reauthorizes Community Water
Reauthorizes Community Water
Consolidated Farm and Rural
Assistance Program. Provides $75
Assistance Program [Section 629].

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CRS-117
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
Development Act of 1972( 7 U.S.C.
million annually FY2002-2011. [Section
Increases authorization for water
1926a(i)) to reauthorize and increase
604]
programs from $590 million to $1.5
from $500 million to $590 million
billion, FY2002-2006. [Section 621]
annual funding for Water and Waste
Treatment grants and loans to assist
local communities in meeting State
standards established under the Safe
Drinking Water Act (42 U.S.C. 300f et
seq.) and the Federal Water Pollution
Control Act ( 33 U.S.C. 1251 et seq.)
[FAIR, Section 741]
[Note: The FAIR amendment redefines
“small communities” and “smallest
community” as ones under 10,000 and
3,000 population respectively.]
F. Rural Entrepreneur and Business Investment Programs
1. Consolidated Farm and Rural
No Provision
Rural Entrepreneurs and
Development Act of 1972, 7 U.S.C.
Microenterprise Assistance Program.
1891 et seq.
Authorizes $50 million each year,
FY2002-2006. [Section 638]
[Note: Program creates a new Subtitle
D to the Consolidated Farm and Rural
Development Act of 1972.]
Senate Amendment 2615 makes
budget authorization for [Section 638]
discretionary.
2. Consolidated Farm and Rural
No Provision
National Rural Cooperative and
Development Act of 1972 7 U.S.C.
Business Equity Fund. Authorizes
1921 et seq.
appropriation of $150 million to be
matched by private investors. USDA
will guarantee 50% of each investment

---

CRS-118
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
with a maximum total of $300 million.
Administered by the Small Business
Administration. [Section 601]
[Note: Program would create a new
Subtitle G to the Consolidated Farm
and Rural Development Act of 1972.]
3. Consolidated Farm and Rural
No Provision
Rural Business Investment Program.
Development Act of 1972 7 U.S.C.
Provides for grants up to $1 million
1921 et seq
each to establish Rural Business
Investment Companies to be
administered by the Small Business
Administration. CBO estimates the
cost at $70 million in loan subsidies and
$50 million in grants. [Section 602]
Senate Amendment 2853 permits up
to 10% of the funds to be invested in
rural areas 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 authority
Pilot Program for Development of
No Provision
through (I) the Consolidated Farm and
Strategic Regional Development
Rural Development Act (7 U.S.C.
Plans. Authorizes $60 million each
1921 et seq.); (II) subtitle G of title
year FY2002-2011. Secretary will
XVI and title XXIII of the Food,
select 10 states in which to implement
Agriculture, Conservation, and Trade
the strategic plans. [Section 613]
Act of 1990; (III) title V of the Rural
Development Act of 1971 (7 U.S.C.

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CRS-119
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
2661 et seq.); or (IV) section 1323(b)
of the Food Security Act of 1985
(Public Law 99-198; 7 U.S.C. 1932
note). [FAIR,
Section.793(c)(1)(A)(ii)]
2. Consolidated Farm and Rural
No Provision
Multijurisdictional Regional
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 the federal share of the
cost of providing assistance to local
governments.” [Section 624]
3. The Consolidated Farm and Rural
No Provision
Rural Endowment Program. $82
Development Act of 1972, 7
million for planning grants [Section
U.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 grants
No Provision
Full Funding for Pending Rural
under the Consolidated Farm and
Development Loans and Grants.
Rural Development Act of 1972
[Section 603]
(P.L92-419), 7 U.S.C. 1926, 1926(a),
[Note: Establishes an account in the
1926(c), 1926(d), and 1932 except for
U.S. Treasury to be known as the
Sections 381-H, 381N and 381(0) of
‘‘Rural
the 1972 Act.
America Infrastructure Development
Account.” This provision authorizes a
one-time removal of the backlog of

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CRS-120
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
pending applications for rural
development loans and grants. CBO
estimates the cost at $454 million.]
I. Other Rural Development Programs
1. Consolidated Farm and Rural
No Provision
Rural Firefighters and Emergency
Development Act, 7 U.S.C. 1926(a).
Medical Personnel Training
[Section 306(a)]
Program. Authorizes $10 million in
first year and $30 million annually,
FY2003-2006. [Section 627]
2. Consolidated Farm and Rural
No Provision
Rural Seniors. Provides $125 million
Development Act of 1972, 7 U.S.C.
in grants for programs targeting rural
1891 et seq.
seniors. [Section 639]
3. Consolidated Farm and Rural
No Provision
Historic Barn Preservation Program.
Development Act ,7 U.S.C. 1981 et
Authorizes $25 million in each year,
seq.
FY2002-2006. [Section 642]
4. Consolidated Farm and Rural
No Provision
Northern Great Plains Regional
Development Act of 1972, 7 U.S.C.
Authority. Creates the Authority and
1921 et seq.
provides $30 million in each year,
FY2002-2006. [Section 647]
[Note: Program would create a new
Subtitle K to the Consolidated Farm
and Rural Development Act of 1972.]
5. Section 4, Rural Electrification Act
Loans and Loan Guarantees for
No Provision
of 1936 (7 U.S.C. 904); Section
Renewable Energy Systems [Sections
310B(a)(3) of the Consolidated Farm
605 and Section 606]
and Rural Development Act of 1972, 7
U.S.C. 1932(a)(3).

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CRS-121
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
6. Changes legal status of the
No Provision
Repeals corporate authorization and
Alternative Agricultural Research
transfers assets to an account to
and Commercialization Center by
support “critical emerging issues” in
converting it to a wholly-owned
future food production, environmental
government corporation within USDA.
management, and farm income.
[Section 721 of FAIR Act, Amends
[Section 651]
Section 1658 of the Food ,
[Note: Repeals Subtitle G of Title XVI
Agriculture, Conservation, and Trade
of the Food, Agriculture, Conservation,
Act of 1990 (P.L.101-624) (7 U.S.C.
and Trade Act of 1990 (7 U.S.C. 5901
5902)]
et seq.)
7. Rural Business and Cooperative
Authorizes Rural Business
Amends Section 306(a)(11)(D) of the
Service: Miscellaneous loans and
Opportunity Grants [Section 607],
Consolidated Farm and Rural
grants:
Rural Cooperative Development
Development Act, 7
(1) Establishes Business Opportunity
Grants [Section 609], Rural Venture
U.S.C.1926(a)(11)(D)) to reauthorize
Grants. [FAIR Act Section741(a)(10)]
Capital Demonstration Program
Business Opportunity Grants
(2) Establishes Business Enterprise
[Section 611], at same funding level
through FY 2006. [Section 622]
Grants under the Consolidated Farm
through 2011.
Amends Section 310B(e)(9) of the
and Rural Development Act of 1972,
Consolidated Farm and Rural
[Section 310B(c)]
Makes Rural Empowerment Zones
Development Act (7 U.S.C 1932(e)(9)
(3) Authorizes Rural Economic
and Rural Enterprise Communities
to reauthorize Rural Cooperative
Development Loans under the Rural
eligible for direct and guaranteed loans
Development Grants through
Electrification Act of 1936 [Section
for essential community facilities.
FY2006. [Section 631]
313];
[Section 616]
(4) Authorizes Rural Cooperative
Development grants under the
Consolidated Farm and Rural
Development
Act of 1972 7 U.S.C. 1932, [Section
310(B)(e)]
(5) Title VIII of the Omnibus Budget
Reconciliation Act of 1993 (P.L.103-

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CRS-122
RURAL DEVELOPMENT
HOUSE BILL
SENATE BILL
CURRENT LAW/POLICY
66) and the Taxpayer Relief Act of
1997 (P.L.105-277) establishes Rural
Empowerment Zones and Rural
Enterprise Communities (EZ/ECs). .
[Note: The 1996 FAIR Act
incorporates EZ/ECs. The Agriculture
Reorganization Act of 1994 (P.L.103-
354) organizes USDA Rural
Development into the RUS, RBS, and
RHS, the 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 Title
CBO Estimate: $1.5 billion in direct
CBO Estimate: $1.711 billion in direct
authorization. Total direct and
authorization for rural development
discretionary authorization FY2002-
programs. Total direct and
2011, $3.6 billion.
discretionary authorization FY2002-
2006, $3.4 billion.
[Note: This estimate excludes $550
million for energy related programs also
budgeted by CBO under Title VI.
Including this funding brings the total
estimated direct authorization for Title
VI to $2.261 billion.]

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CRS-123
VII. RESEARCH
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
National Agricultural Research,
Title VII, Research and Related Matters
Title VII, Agricultural Research,
Extension, and Teaching Policy
Education, and Extension and Related
Act of 1977 (NARETPA); the
Matters
Agricultural Research, Extension,
and Education Reform Act of
1998; omnibus farm legislation
passed in 1985 and 1990; and
others, as noted
A. Funding Authorities: USDA In-House Research and Cooperative Extension
1. Authorizes $850 m. annually
Extends authority through FY2011 with no
Increases funding authority to $1.5
for the Agricultural Research
changes. [Section 708]
billion annually through FY2006.
Service through FY2002. [Section
[Section 716]
1463 of NARETPA]
2. Authorizes $420 m. for
Extends authority through FY2011 with no
cooperative extension programs
changes. [Section 714]
Increases funding authority to $500
through FY2002. [Section 1464
million annually through FY2006.
of NARETPA]
[Section 717]
B. The Initiative for Future Agriculture and Food Systems
1. Authorizes the transfer of $120
Requires the Secretary to transfer $1.16
Authorizes the transfer of $130 million
m. annually in FY1999-2002 from
billion into the Initiative from the
annually through October 1, 2002, and of
the U.S. Treasury to USDA for a
Commodity Credit Corporation in equal
$225 million annually through 2006 from
competitive grants program on
annual amounts over a 9-year period
the Commodity Credit Corporation [per
critical emerging issues and high-
ending in FY2011. [Section 750]
Section 1099B] for the Initiative [Section
priority research. [Section 401 of
169], and recommends that the Secretary
1998 Act]
reserve 10% of Initiative funds for grants
to minority-serving institutions. [Section
741]

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CRS-124
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
Designates $25 million of Initiative funds in
Contains a comparable provision, with
FY2004-08 to be awarded to minority-
funding authorized under Title IV of the
serving schools for research on
1998 Act. [Section 750]
biotechnology to benefit developing
countries. USDA’s Foreign Agricultural
Service (FAS) would administer the
program. [Section 763]
2. Defines priority mission areas
Adds alternative fuels, precision
Makes no change to existing law.
for the Initiative. [Section 401 of
agriculture, crop diversification, and small
the 1998 Act]
livestock farm improvement to the list of
areas to be addressed by the Initiative.
[Section 743]
C. Land Grant Institutions in Insular Areas
1. Defines the Commonwealth of
Redefines territories to include the
Redefines territories as “insular areas”
Puerto Rico, Guam, American
Federated States of Micronesia, the
rather than as states, adding the
Samoa, the Commonwealth of the
Republic of the Marshall Islands, and the
Federated States of Micronesia, the
Northern Marianas, the Trust
Republic of Palau (and excludes the
Republic of the Marshall Islands, and the
Territory of the Pacific Islands,
District of Columbia) solely for the
Republic of Palau to the list. Retains
the Virgin Islands of the United
purposes of a new grant program to
“state” definition for the District of
States, and the District of
strengthen the food and agriculture
Columbia. Exempts Micronesia,
Columbia as “states” for the
curriculum at those institutions. [Section
Marshall Islands, and Palau from
purposes of the Act. [Section
761]
eligibility for formula funds under the
1404 of NARETPA]
Hatch Act of 1887 and the Smith-Lever
Act of 1914. [Section 701]
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]

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CRS-125
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
2. Requires institutions to match
Sets the matching fund requirement at 50%
Sets a 50% matching fund requirement
federal formula funds for research
for the U.S. Territory institutions through
through FY2006 for Puerto Rico, U.S.
and extension at 50% beginning in
2011 and grants the Secretary authority to
Virgin Islands, and Guam, and grants the
FY2002, and prohibits the
waive the requirement if a Territory cannot
Secretary authority to waive the
Secretary from waiving the
meet the obligation. [Section 749A]
requirement. [Section 776]
requirement. [Section 3(d) of the
Hatch Act of 1887, as amended]
D. 1890 Land Grant Universities
1. Authorizes appropriations of
Contains no provision addressing funding
Raises the minimum amount that can be
such funds as may be necessary
authority for 1890 land grant colleges.
appropriated for extension programs
for research programs, and
from 6% to 15% of extension formula
establishes a 6% minimum (of
funds appropriated for the 1862 schools.
appropriation for 1862 schools)
[Section 757]
for extension programs. [Section
1444 of NARETPA]
Establishes a minimum amount to be
appropriated for research programs at
25% of the amount appropriated for the
1862 schools. [Section 757]
2. Authorizes $15 m. annually
Extends authority through FY2011 with no
Increases authorization to $25 million
through FY2002 for grants to
changes. [Section 709]
annually through FY2006. [Section 760]
upgrade facilities. [Section
1447(b) of NARETPA]
3. Requires 50% in state funds to
Requires an annual 10% increase in state
Raises the matching funds requirement to
match federal formula funds for
matching funds beginning in FY2003, to
60% in FY2003 and annually in 2004-06
research and extension. [Section
reach 100% in FY2008. The Secretary
by 110% of the previous year’s amount.
1449 of NARETPA]
may waive the requirement above 50% if a
The Secretary may waive the
state cannot meet the obligation. [Section
requirement above 50% if a state cannot
749]
meet the obligation. [Section 762]

---

CRS-126
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
E. 1994 Institutions (Tribally Controlled Land Grant Institutions)
1. Authorizes annual
Removes authority for appropriations to an
Provision comparable to House, but
appropriation of $4.6 m. in
endowment fund and authorizes
authorizes appropriations for FY2002-
FY1996-2002 for an endowment
appropriations of such sums as are
06. [Section 755(c)]
fund. [Section 533 of Equity in
necessary in FY1996(sic)-2011. [Section
Educational Land Grant Status
729]
Act of 1994]
2. Authorizes $50,000 annual
Increases payment authority to $100,000
Provision identical to House. [Section
payments to each institution.
annually. [Section 741(a)]
755(e)]
[Section 534 of 1994 Act]
3. Bases withdrawals and
Bases withdrawals and expenditures on a
Provision identical to House. [Section
expenditures from the endowment
formula using an Indian student count as
755(d)]
fund on a formula using an Indian
defined in the Tribally Controlled College
student count as defined in the
or University Assistance Act of 1978.
Carl D. Perkins Vocational and
[Section 741(b)]
Applied Technology Education
NOTE: Makes student count mechanism
Act. [Section 533(c)(4)(A) of
more flexible and clarifies calculation of
1994 Act]
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. annual
Authorizes such sums as are necessary
Authorizes such sums as are necessary
appropriations for extension
through FY2011. [Section 753]
and directs the Secretary to develop a
programs and contains formula
new distribution formula. [Section 754]
for distribution of funds. [Section
3(b) of Smith-Lever Act of 1914]
5. Excludes 1994 Institutions
Adds the 1994 Institutions to the definition
No comparable provision to House, but
from eligibility for formula funds
of colleges and universities eligible to
makes the 1994 Institutions eligible to
under the Hatch Act of 1887 and
receive Hatch and Smith-Lever Act funds
compete for grants for integrated

---

CRS-127
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
the Smith-Lever Act of 1814.
for research and extension programs.
research and extension projects under
[Section 533(a)(2) of 1994 Act]
[Section 742]
Section 406 (b) of the 1998 research
reform act. [Section 756]
F. Priority Research Areas
1. Authorizes a competitive
Adds wind erosion, crop loss, land use
Adds animal infectious diseases,
grants program to support
management, water and air quality, revenue
childhood obesity, integrated pest
research and extension programs
insurance, agrotourism, fruit and vegetable
management, beef cattle genetics, and
on 24 specified topics. [Section
harvesting, nitrogen fixation, marketing,
development of publicly held plant and
1672 of the Food, Agriculture,
private lands research, livestock disease
animal varieties to the list of priority
Conservation, and Trade Act of
threats, and plant gene expression to the list
research areas. Authorizes $100,000
1990]
of priority research areas. [Section 744(b)]
annually for high priority research on
reducing hazards from dairy pipeline
cleaners. [Section 734]
2. Authorizes agricultural
Adds plant pathogens to research subjects
Makes no change to existing law.
genome research. [Section
under the Agricultural Genome Initiative.
1671(b) of the 1990 Act]
[Section 744]
3. Authorizes competitive grants
Contains no provision addressing existing
Reauthorizes and expands the research
for research and extension
authority.
focus for organic agriculture to include
programs on organic agriculture.
genomics research, improvement of
[Section 1672B of the 1990 Act]
publicly held crop and livestock varieties,
marketing research, and on-farm
research. [Section 736]
4. Authorizes research and
Extends authority through FY2011.
Extends authority through FY2006 and
extension programs on precision
[Section 730]
adds emphasis on horticulture,
agriculture. [Section 403 of the
mechanization, robotics, and energy use
1998 Act]
efficiency. [Section 743]
5. Authorizes selected high-
Contains no provision addressing existing
Adds bovine Johne’s disease control and
priority research areas. [Title IV
authority.
grants for youth organizations to high-
of the 1998 Act]
priority subjects under the 1998 Act.

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CRS-128
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
[Sections 748 and 749]
G. International Research
1. Authorizes cooperative
Authorizes placement of agriculture
Contains no provision addressing
international research, extension,
students at U.S. colleges and universities at
existing authority.
and teaching programs. [Section
USDA Foreign Agricultural Service field
1458 of NARETPA]
offices overseas. [Section 745(c)]
H. Biotechnology
1. Authorizes USDA to withhold
Increases withholding to 3% and adds
Increases withholding to 3% and directs
1% of biotechnology research
authority to study the environmental effects
the Secretary to give priority in awarding
funding to support risk assessment
of biotechnology and develop a long-term
biotechnology risk assessment grants to
research on bioengineered
policy for introduction. [Section 747]
applicants who take an interdisciplinary
organisms. [Section 1668 of 1990
approach that includes environmental,
Act]
biosafety, and nutritional aspects.
[Section 732]
I. Research Facilities
1. Provides general authority for
Makes no change to existing law.
Adds new authority to Section 1417 of
federal funds to construct or
the 1977 Act for competitive grants to
modernize research facilities at
land grant schools and Hispanic-serving
colleges and universities.
schools for construction or
[Research Facilities Act of 1963]
modernization of research facilities.
Preference would be given to proposals
offering matching funds. [Section 704]
2. Protecting agriculture facilities.
Creates new authority to assess civil
Contains a similar provision, with
[No existing authority]
penalties against anyone who damages or
stronger penalties and greater emphasis
disrupts an animal or agricultural
on bioterrorism. [Section 1058]
enterprise, research facility, or other
agricultural or biomedical facility. Also
authorizes recovery of economic damage
and establishes a fund to compensate the

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CRS-129
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
victims of such attacks. [Section 790]
3. Competitive grants for
No comparable provision.
Creates new authority for $250 million
purchasing lab equipment. [No
over 5 years for competitive grants to
existing authority]
land grant and non-land grant schools for
purchasing specialized scientific
equipment. [Section 715]
J. Competitive Research Grants Administration
1. Reimbursement for indirect
Makes no change to existing law.
Permits institutions awarded a
costs associated with competitive
competitive grant to receive
grants is limited to 19% of the
reimbursement for indirect costs
total grant. [Section 1462 of
(excluding equipment costs) at a
NARETPA]
percentage established by the granting
agency’s audit agency. [Section 714]
2. Competitive grants are
Makes no change to existing law.
Makes funds appropriated for
disbursed in the year in which the
competitive grants available for
funds are appropriated. [Section
obligation over a 2-year period. [Section
1467 of NARETPA]
718]
3. Joint requests for proposals.
No comparable provision.
Adds authority for the Secretary to
[No existing authority]
transfer grant funds to or receive grant
funds from other federal research
agencies in order to facilitate joint
research and eliminate duplication.
[Section 719]
K. Biosecurity
1. Agriculture Infrastructure
No comparable provision.
Adds a new biosecurity subtitle to
Security. [No existing authority]
NARETPA to establish a fund to protect
ARS, Forest Service, APHIS, and other
federal facilities related to the safety of

---

CRS-130
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
crops, livestock, and food. Establishes an
advisory board on the use of the fund.
[Section 723, Chapter 1]
2. Biosecurity Planning and
Amends the 1990 farm act to list research
New subtitle authorizes such sums as
Response. [General authority
on technology to protect agriculture
necessary for research on
exists for high priority research
(including livestock) and the food supply
counterbioterrorism. Authorizes $100
and extension initiatives under
from bioterrorism and naturally occurring
million annually in FY2003-05 for
Section 1672(e) of the 1990 Act]
threats as a high priority research topic.
construction or renovation of
[Section 744]
bioterrorism research facilities.
Expresses sense of Congress that 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 grant program to
[Section 524(a)(3) of the Federal
be administered by CSREES to enhance
Crop Insurance Act]
land grant and non-land grant education
programs on risk management for
beginning farmers. [Section 785]
2. Research on rural issues.
No comparable provision.
Adds an emphasis on rural economic,
[Section 1417 of NARETPA]
community, and business research to
existing rural research authority. [Section
703]
3. Technology transfer for rural
No comparable provision.
Establishes a joint ARS- Rural Business-
development. [No existing
Cooperative Service program to make
authority]
ARS and RBCS rural development
technologies available to rural areas more
quickly. [Section 795]
4. Rural electronic commerce
No comparable provision.
Authorizes a $60 million, 5-year

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CRS-131
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
development program. [No
extension program to help small
existing authority]
businesses in rural areas adopt electronic
commerce business practices and
technologies. [Section 733]
4. Beginning farmer and rancher
No comparable provision.
Creates a competitive grant program to
education. [No existing authority]
help local and regional education,
training, outreach, and technical
assistance organization assist beginning
farmers and ranchers. Authorizes $15 m.
annually over 3 years to be transferred
from the U.S. Treasury to support the
program. [Section 796]
5. Rural research fund. [No
No comparable provision.
Establishes a Rural Research Fund
existing authority]
account within USDA, funded by $60
million transferred from the U.S.
Treasury over 4 years, to support
competitive research grants on rural
public policy. [Section 798]
6. Alternative Agriculture
Extends authority for appropriations
Title VI (Rural Development) of the
Research and Commercialization
through 2011.
Senate-passed H.R. 2646 contains a
Revolving Fund. [Section
provision to repeal the authority for the
1664(g)(1) of 1990 Act]
Alternative Agricultural Research and
Commercialization Corporation and
transfer its funds to USDA to be used for
research on future food production,
environmental protection, and farm
income. [Section 651]
M. Miscellaneous Research Provisions
1. National Agricultural
Adds to the advisory board members from
Extends authority for advisory board
Research, Extension, Education,
a non-land grant institution and from the
with no changes.

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CRS-132
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
and Economic Advisory Board.
House and Senate Agriculture and
[Section 1408 of NARETPA]
Appropriations Committees. [Section 745]
2. ARS review. [First authorized
No comparable provision.
Reauthorizes an outside review of the
in 1998 Act]
purpose, efficiency, and effectiveness of
ARS research. [Section 794]
NOTE: S. Rpt. 107-117 indicates that
the earlier review was not carried out
according to the intent of the original
language.
2. Senior Scientific Research
No comparable provision.
Establishes a 100-member Senior
Service. [No existing authority]
Scientific Research Service comprised of
highly qualified scientists. Minimum GS-
15 salary. [Section 750B]
3. Regulatory and inspection
No comparable provision.
Authorizes the Secretary to conduct
research. [No specific authority
urgent applied research to support the
exists for this type of research,
regulatory programs of AMS, APHIS,
but such work currently is
FSIS, and FGIS. [Section 792]
conducted under general
authority found in NARETPA]
4. Repeal of certain activities and
No comparable provisions.
authorities.
[Sections 615(b) and (c) of the
Food safety research information office and
1998 Act]
national conference. [Section 771]
Reimbursement of expenses under the
[Section 617 of the 1998 Act]
Sheep Promotion, Research, and
Information Act of 1994. [Section 772]
National Genetic Resources Program.
[Section 1634 of the 1990 Act]
[Section 773]

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CRS-133
RESEARCH
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
[Sections 1639 and 1640 of the
National Advisory Board on Agricultural
1990 Act]
Weather. [Section 774]
Agricultural information exchange with
[Section 1420 of the 1985 Act]
Ireland. [Section 775]
[Section 1437 of the 1985 Act]
Pesticide resistance study. [Section 776]
[Section 1438 of the 1985 Act]
Expansion of education study. [Section
777]
[Sections 1412 and 1413(c) of
NARETPA]
Support for advisory board. [Section 778]
[Research Facilities Act of 1963]
Task force on 10-year strategic plan for
agricultural research facilities. [Section
779]

---

CRS-134
VIII. FORESTRY
FORESTRY
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
Primarily, provisions of the
Cooperative Forestry Assistance Act
Title VIII - Forestry Initiatives
Title VIII - Forestry
of 1978 (CFAA), P.L. 95-313
A. Forest Landowner Assistance
1. Forestry Incentives Program (FIP)
1. Repeals FIP. [Section 801]
1. Reauthorizes FIP through 2006.
provides cost-sharing for tree planting
NOTE:FIP expires at the end of
[Section 804]
and other forest improvement
FY2002. The repeal in the House bill is
practices. [Section 4, CFAA]
not needed to effectively end the
program.
2. Stewardship Incentives Program
2. No provision.
(SIP) provides cost-sharing for a wide
2. Repeals SIP. [Section 801]
NOTE: SIP is permanently authorized,
variety of forestry practices. [Section
and requires no reauthorization
6, CFAA]
3. Establishes new Sustainable Forest
3. No provision.
3. Establishes new Forest Land
Management Program to supplement
Enhancement Program (FLEP) to
FIP and SIP, with cost-sharing for
supplant FIP and SIP, with cost-sharing
additional practices and $48 million
for the same practices (and more) and
annually in mandatory spending.
$20 million annually in mandatory
(Section 806)
spending. [Section 802]
NOTE: The Senate Bill adds to existing
NOTE: The House bill replaces former
programs.
programs with this new program
4. No provision.
4. No provision.
4. Establishes new Sustainable
Forestry Cooperative Program to assist
landowners in creating cooperatives for
sustainable forest management.
(Section 805)

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CRS-135
FORESTRY
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
B. Suburban and Community Forestry Initiative
(NOTE: Existing financial and
No provision.
Creates new Suburban and Community
technical assistance programs to urban
Forestry and Open Space Initiative, to
areas, communities, and private
conserve private forest land and
nonprofit organizations are
working forests in suburbs and help
permanently authorized in Section 9
control urban sprawl, through 50% cost
of CFAA, and are unchanged in the
share grants to states and nonprofits.
House and Senate bills.)
Authorized at $50 million for FY2003,
as needed thereafter. (Section 813)
C. Watershed Forestry
1. (Many existing forestry assistance
1. No provision.
1. Creates new Watershed Forestry
programs include activities to protect
Assistance Program, for cost-sharing by
watersheds, but none focuses on
states for forest practices to protect and
watershed protection.)
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 and $3.5 million for
FY2003-FY2006. (Section 810)
D. Fire Protection
(NOTE: Existing financial and
1. Creates new Enhanced Community
1. Similar to H.R.2646. (Section 811)
technical assistance programs to states
Fire Protection program to inform and
and to volunteer fire departments are
assist landowners in wildfire protection;
permanently authorized in Section 10
authorized at $35 million annually.
of CFAA, and are unchanged in the
Appears to allow federal activities on

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CRS-136
FORESTRY
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
House and Senate bills. Fire research
private lands (Section 804)
is authorized under the Forest and
2. Authorizes creation of 2 forest fire
Rangeland Renewable Resources
2. No provision.
research centers. (Section 808)
Research Act (P.L. 95-307), and 3 fire
research centers already exist.)
3. Authorizes new hazardous fuel
3. Authorizes new hazardous fuel
reduction grants of $5-10 per ton to
reduction grants of $5-10 per ton of
operators of facilities that produce
hazardous fuel removed from forests to
energy from hazardous fuel removed
operators of facilities that produce
from forests, or to persons to use or
energy from biomass, with monitoring of
increase value of hazardous fuels; grant
grant recipients and of treatment effects
allocation based on minimizing
(the latter being limited to federal lands),
environmental effects and maximizing
authorized at $50 million annually.
community benefits, with monitoring of
(Section 921, in Title IX)
grant recipients, and of environmental
and employment effects. Authorized at
$50 million annually. (Section 809)
4. Requires independent investigation
of firefighter fatalities by USDA
4. No provision.
Inspector General. (Section 820)
E. Forest Health Protection
(NOTE: Existing forest health
1. No provision.
1. Authorizes new research,
protection program authorizes insect
monitoring, and treatment program for
and disease survey and control on
Sudden Oak Death Syndrome, with an
federal lands and on with consent,
advisory committee to oversee
cooperation, and participation on
implementation; authorized at $14.25
other lands is permanently authorized
million annually, with allocation among
in Section 8 of CFAA, and is
activities specified. (Section 819)
unchanged in the House and Senate
bills.)
2. No provision.
2. Authorizes new program of
Adaptive Ecosystem Restoration of
Arizona and New Mexico Forests and

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CRS-137
FORESTRY
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
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)
F. Forestry Research
Forestry research at land grant
Reaffirms the importance of forestry
Identical to House version. (Section
universities is authorized under the
research under McIntire-Stennis.
802)
McIntire-Stennis Act of 1962 (P.L.
(Section 807)
87-788). (NOTE: Forest Service
Note: Incorrectly cites the public law
research is authorized under the
number as P.L.87-88.
Forest and Rangeland Renewable
Resources Research Act of 1978, P.L.
95-307.)
G. Renewable Resources (RREA)
The Renewable Resources Extension
Reauthorizes RREA, doubles authorized
House and Senate provisions are
Act (RREA; P.L. 95-306) authorizes
funding to $30 million annually, and
similar, but not identical. Reauthorizes
educational assistance in natural
establishes new Sustainable Forestry
RREA, doubles authorized funding to
resources management.
Outreach Initiative. (Section 803)
$30 million annually, and establishes
new Sustainable Forestry Outreach
Initiative. (Section 803)
H. International Forestry
1. Technical forestry assistance to
1. Effectively reauthorizes the
1. No provision.
other countries is permanently
International Forestry ” through 2011.
authorized under Title VI of P.L. 101-
(Section 805)
513 (Foreign Operations
Appropriations, 1991).

---

CRS-138
FORESTRY
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
2. The Forest Service Office of
2. No provision
2. Reauthorizes “Office of
International Forestry expires at end
International Forestry” through 2006.
of FY2002 under Section 2405(d) of
(Section 801)
the 1990 Farm Bill.
I. Tribal Forestry
1. No provision.
1. No provision.
1. Establishes Office of Tribal
Relations to improve communication
between tribal governments and USDA
and Forest Service. (Section 817)
2. No provision.
2. No provision.
2. Establishes program for Assistance
to Tribal Governments, to provide
technical, financial, educational, and
related forestry assistance; authorized
funding “as needed.” (Section 818)
J. National Forest Management
(Many programs and authorities exist.
Authorizes “Long-Term Forest
Authorizes 28 Long-Term Forest
The broadest authorization is in the
Stewardship Contracts” for reducing
Stewardship Contracts for reducing
Forest and Rangeland Renewable
hazardous fuels in the national forests as
hazardous fuels in the Wildland-Urban
Resources Planning Act of 1974
part of timber sale contracts (i.e.,
Interface in national forests as part of
(RPA; P.L. 93-378) as amended by
authorizes goods-for-services contracts,
timber sale contracts, with 14 using
the National Forest Management Act
where the Forest Service can use timber
goods-for-services contracts (where the
of 1976 (NFMA; P.L. 94-588).)
to pay for fuel treatment services).
Forest Service can use timber to pay for
(Section 806)
fuel treatment services) and the other
14 using separate contracts to collect
woody material and to sell the
timber.[Section 815]

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CRS-139
IX. MISCELLANEOUS PROVISIONS
MISCELLANEOUS
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
A. Federal Crop Insurance
Prohibition on Continuous Coverage
No provision.
Makes permanent the temporary
The Federal Crop Insurance Act, as amended
prohibition on continuous coverage in
by the Agriculture Risk Protection Act of
current law. [Section 1012]
2000, requires participating producers in the
federal crop insurance program to select a
Note: CBO scores an average annual
coverage level that is a multiple of 5,
savings of approximately $320 million
between the 55% and 85% level of crop yield
beginning in FY2006.
coverage, for the 2001 through 2005 crop
years. [Section 508(e)]
Note: “Continuous coverage” refers to the
ability of farmers to select any level of
coverage between 50% of normal yield and
85% of yield. The reason farmers are not
allowed to choose any level of coverage and
must choose in 5% increments is because the
premium subsidy structure is set in law in 5%
increments. The percentage of the crop
insurance premium subsidized by the federal
government falls as a producer selects higher
levels of coverage. The continuous coverage
prohibition is a federal cost-saving measure
that prevents producers who would normally
choose, for example, a 65% level of
coverage, from dropping back to 64%
coverage just to receive the higher subsidy
level.

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CRS-140
MISCELLANEOUS
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
Quality Loss Adjustment Procedures
No provision.
Requires USDA to implement the review
The Federal Crop Insurance Act, as
findings by the 2003 insurance year.
amended, requires USDA to contract a study
[Section 1013]
reviewing the quality loss adjustment
procedures of the crop insurance program,
and make adjustments based on this review.
[Section 508(m)(3)]
Conservation Requirements
No provision.
Prohibits farmers from receiving a crop
The 1985 farm bill (P.L. 99-198) prohibits
insurance indemnity payment when the
any farmer from receiving certain federal
producer grows a crop on highly erodible
farm payments or loans when the producer
land or a converted wetland. [Section
grows a crop on either highly erodible land
1014]
[Sect. 1211], or a converted wetland [Sect.
1221]
Sweet Potatoes
Permanently includes sweet potatoes as a
Identical to the House provision.
The Federal Crop Insurance Act prohibits
crop that would be eligible for indemnity
[Section 1011]
farmers from receiving crop insurance
payments after harvest. [Section 928 ]
indemnity payments once the crop leaves the
field, except for tobacco and potatoes.
[Section 508(a)(2)]
The FY2002 agriculture appropriations act
(P.L. 107-76) allows sweet potatoes to
receive indemnity payments after harvest for
FY2002 only. [Section 760]
Specialty Crop Insurance Initiative
No provision.
Increases funding for research and
The Federal Crop Insurance Act, as
development reimbursements to $32
amended, authorizes USDA to reimburse
million in FY2002 (up $22 million); $27.5
private entities for the cost of research and
million for each of FY2003 and FY2004
development of new crop insurance
(up $12.5 million in each year); and $25
programs. Mandatory funding of $10 million
million for each of FY2005 and FY2006
for each of FY2001 and 2002, and not more
(up $10 million in each year). Also
than $15 million in FY2003 and subsequent
increases funding for education and

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CRS-141
MISCELLANEOUS
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
years is provided [Section 522(b)].
information programs to $10 million in
The act also authorizes USDA to establish
FY2003 (up $5 million); $13 million in
crop insurance education and information
FY2004 (up $8 million); and $15 million
programs for producers in states that
for each of FY2005 and FY2006 (up $10
traditionally have a low participation rate in
million in each year.
the crop insurance program or are
Total 5-year increase for R&D
underserved by the program. Mandatory
reimbursements is $67 million; total 4-year
funding of $5 million for FY2001 and each
increase for education programs is $33
subsequent year is provided. [Section 524]
million. The combined $100 million
additional cost is funded through savings
associated with reducing the payment limits
for farm commodity support programs.
[Section 169]
Restriction of Crop Insurance Payments
No provision.
Prohibits the subsidization of any federal
to Previously Cropped Land
crop insurance policy that covers a farm
No restriction in current law
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)]
Adjusted Gross Revenue Insurance Pilot
No provision.
Requires USDA to continue through at
Program
least the 2004 insurance year, the adjusted
The Federal Crop Insurance Act, as
gross revenue (AGR) insurance pilot
amended, authorizes USDA to conduct pilot
program in effect for the 2002 crop year.
programs to evaluate whether a new risk
Expands the pilot program in 2003 to
management program is suitable for the
include at least 8 counties in the state that
marketplace and addresses the needs of
produces the highest quantity of specialty
farmers. [Section 523]
crops for which AGR insurance is currently
USDA currently implements an Adjusted
not available (i.e, California). Counties
Gross Revenue (AGR) pilot program which
selected by USDA should produce a

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CRS-142
MISCELLANEOUS
CURRENT LAW/POLICY
HOUSE BILL
SENATE BILL
allows a farmer to insure a percentage of
significant quantity of specialty crops.
historical revenue for all crops grown on the
[Section 1079D]
farm rather than insuring each crop
separately.
Study on Producer Indemnification for
No provision.
Requires the Secretary of Agriculture to
Government-Caused Disasters
conduct a study of the feasability of
The Federal Crop Insurance Act limits
expanding crop insurance and the
covered perils under the crop insurance
noninsured assistance program to farmers
program to drought, flood, or other natural
experiencing disaster conditions caused
disaster (as determined by the Secretary).
primarily by a federal agency action.
[Section 508(a)(1)]
Report to be submitted to the House and
Senate Agriculture Committees within 150
days of enactment. [Section 1085]
Risk Management Education for
No provision.
Allows the Secretary, (through CSREES,)
Beginning Farmers
to establish risk management education
The Federal Crop Insurance Act established
programs targeted to the needs of
a “Partnership for Risk Management”
beginning farmers and ranchers, using
program within USDA’s Cooperative State
existing available funds in Section 524 of
Research, Education and Extension, Service
the Federal Crop Insurance Act. [Section
(CSREES) whereby competitive grants are
785]
made to qualified public and private entities
to educate farmers about various available
strategies to manage farm financial risk.
Annual mandatory funding of $5 million is
authorized. [Section 524(a)(3)]
B. Noninsured Assistance
Sea Grass and Sea Oats
Specifically includes sea grass and sea oats as
No provision.
The 1996 farm bill (P.L. 104-624) makes
an eligible crop under the noninsured
eligible for the noninsured assistance
assistance program. [Section 929]
program all crops that are not eligible for

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federal crop insurance coverage, and certain
specific crops. [Section 196(a)(2)]
C. Emergency Crop Disaster and Income Loss Assistance
Various emergency supplemental acts in
No provision.
Authorizes the Secretary of Agriculture to
recent years have provided ad hoc direct
use $1.8 billion in Commodity Credit
payments to crop producers to compensate
Corporation (CCC) funds to make
them for major production losses caused by
payments to producers who experienced
natural disasters. Most recently, the FY2001
losses to the 2001 crop caused by natural
agriculture appropriations act (P.L. 106-387)
disasters. Payments are to be made in the
provided such sums as are necessary for
same manner as for 2000 losses. Secretary
disaster payments for 2000 crop year losses.
has discretion to use some of the funds to
[Section 815] Separately, the FY2002
reimburse farmers for income losses not
agriculture appropriations act (P.L. 107-76)
caused by a natural disaster. [Section 191]
made an additional $75 million available
exclusively to apple producers for the loss of
Provides $100 million in CCC funds to
markets for their 2000 crop. [Section 741]
make payments to apple producers for the
loss of markets during the 2000 crop year.
[Section 193]
Transfers $50 million from the U.S.
Treasury to USDA to pay the 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]
D. Livestock
1. Emergency Livestock Assistance
Permanently authorizes livestock assistance,
a. Requires the Secretary of Agriculture to

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Various emergency supplemental acts in
subject to annual appropriations, and at
implement a program to provide feed
recent years have authorized ad hoc
discretion of the Secretary of Agriculture.
assistance to livestock producers affected
assistance for livestock farmers when on-
Such assistance would include indemnity
by disasters, subject to annual
farm feed or forage is damaged or destroyed
payments for livestock mortality losses,
appropriations. For FY2003 through
by a natural disaster (Livestock Assistance
livestock feed assistance, compensation for
FY2008, $500 million is authorized to be
Program) or to replenish herds when a
sudden increases in production costs, and
appropriated. [Section 168]
natural disaster causes widespread livestock
other assistance as deemed appropriate by
mortality (Livestock Indemnity Program).
the Secretary of Agriculture. [Section 931]
b. Requires the Secretary to use $500
Programs are generally funded through the
million of Commodity Credit Corporation
borrowing authority of USDA’s Commodity
b. No provision.
funds to make payments for livestock
Credit Corporation. Most recent authority
losses in 2001 in a county that has received
was granted for calendar year 2000 livestock
emergency designation by the President or
losses in emergency provisions included
Secretary after January 1, 2001. Of this
within the FY2001 agriculture appropriations
amount, $12 million is for the American
act (P.L. 106-387) [Section 806]
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]
2. Lambs for Afghanistan
No provision.
Authorizes a pilot emergency relief
program to provide live lamb to
Afghanistan and requires USDA to submit
a report by January 1, 2004. [Section 309]
E. Migrant and Seasonal Farmworker Assistance
The 1990 farm bill (P.L. 101-624) gave
No provision.
Increases the authority for appropriations
permanent authority to the Secretary of
to $40 million for FY2002 through
Agriculture to disburse up to $20 million in
FY2006. No authority for appropriations

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grants (subject to annual appropriations) to
beyond FY2006. [Section 1061]
public agencies or private tax-exempt
organizations that have experience providing
emergency services to low-income migrant
and seasonal farmworkers. [Section 2281]
Note: To date, one appropriation has been
made to the program, in an emergency
supplemental act in FY1999 (P.L. 106-31).
F. Tree Assistance and Caneberries
1. Tree Assistance Program:
a. Implemented on an ad hoc basis, usually
a. Authorizes a program of assistance to
a. Same as House bill, except that it contains
under temporary authority given in various
growers who planted trees, vines and bushes
an authorization for appropriations for fiscal
emergency supplemental acts over the years.
for commercial purposes and suffered losses as
years 2002-2006. [Title X, Subtitle D,
NOTE: Program implemented in 1998
a result of a natural disaster. Assistance would
Section 1062]
Supplemental Appropriations Act (P.L. 105-
consist of reimbursement of 75% of the cost of
174) reimbursed tree and vine owners up to
replanting trees lost in excess of 15 %
100% of the cost of replanting when owners
mortality (adjusted for normal mortality), or
suffer 20% or greater loss (adjusted for normal
sufficient seedlings to reestablish the stand.
mortality).
[Title IX, Subtitle A, Sections 901-902, 904]
b. Payment limit of $25,000 per eligible tree
b. Payments may not exceed $50,000 for each
b. Payments may not exceed $100,000 to
and vine owner. Excludes assistance to owners
grower, or an equivalent value in tree
each grower or an equivalent value in tree
earning more than $2.5 million gross annual
seedlings. No requirement on amount of gross
seedlings. No requirement on amount of
revenue in the tax year preceding the year
annual revenue, but grower must own 500
gross annual revenue or acreage. [Title X,
when the losses occurred. [See note above]
acres or less of commercial trees. [Title IX,
Subtitle D, Section 1062]
Subtitle A, Section 903(a)]

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2. Caneberries Marketing Order:
Amends the Agricultural Marketing Agreement
No provision.
No provision
Act of 1937 to authorize a marketing order for
caneberries (including raspberries, blackberries,
and logenberries). Not applicable to 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]
G. Energy
Miscellaneous laws and regulations (see
Various titles
Title IX - Energy, and other sections
below)
1. Commodity Credit Corporation (CCC) Bioenergy Program
Under the Bioenergy Program, CCC may
Animal fats, agricultural byproducts, and oils
No Provision.
grant payments to farmers who grow
are added to the list of allowable
bioenergy crops for the production of ethanol
commodities.
Note: S. 1731 expresses the sense of the
and biodiesel. Allowable commodities
[Section 922]
Congress that the Bioenergy Program
include crops such as barley, corn, soybeans,
should be continued and expanded. In
and wheat, as well as cellulosic crops such as
addition, the section states that expanded
switchgrass and short rotation trees.
ethanol and biodiesel production will be
[7 CFR 1424]
needed to phase out methyl tertiary butyl
ether (MTBE)–a common additive in
gasoline that has contaminated
groundwater in several states.[Section 907]
S.Amdt. 2676, and S.Amdt. 2678,
substitutes, add the House language to the
Senate bill.
[Sec 921]

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2. Renewable Energy on Conservation Reserve Program (CRP) Lands
The Farm Security Act of 1985 created the
Amends the Act to allow the use of CRP land
Amends the act to allow the use of CRP
Conservation Reserve Program (16 U.S.C.
for wind energy generation and biomass
land for wind energy generation (with
3830 et. seq.) To assist and encourage
harvesting for energy production (with
reduced payments).
farmers and ranchers to conserve and
reduced payments).
[Section 212(h)]
enhance soil and other resources
[Section 213]
[Section 3832(a)(7)(A)]
3. Emergency Loans to Respond to Sharply Increasing Energy Costs
The Consolidated Farm and Rural
Amends the Act to allow loans in response to
No provision.
Development Act (7 U.S.C. 1969) provide
economic emergencies, which are defined to
for emergency loans for natural disasters.
include sharply increasing energy costs.
[Section 329]
[Section 501]
4. Grants to Reduce Hazardous Forest Fuels for Energy Production
The Cooperative Forestry Assistance Act of
Creates a new section of the code which
Similar to the House provision, but amends
1978 (16 U.S.C. 2101 et. seq) provides for
authorizes the Secretary of Agriculture to
the Cooperative Forestry Assistance Act to
technical and financial assistance for rural fire
provide grants to energy producers who
add a section on hazardous fuels reductions
control. There are no provisions for biomass
purchase biomass that poses a wildfire hazard
instead of establishing a new section of the
reduction grants.
for the production of electric power, useful
code.
[P.L. 95-313]
heat, or transportation fuels. Authorizes $50
[Section 809]
million each fiscal year.
[Section 921]
5. Clean Energy
Under the current law, the Consolidated
No provision
Several sections amend various laws (see
Farm and Rural Development Act (CFRDA)
below).CFRDA is amended to add a
(7 U.S.C. 1921 et. seq.), there are no
Subtitle L (3 chapters) on “Clean Energy”
provisions for clean energy.
that establishes programs on biobased
[P.L. 87-128]
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efficiency, and carbon sequestration.
[Section 902]
6. Clean Energy - Chapter 1: Biobased Product Development
a. No provision for biobased products under
1. No provision
a. Requires the Administrator of the
CFRDA.
Environmental Protection Agency to
publish a list of biobased products that are
environmentally preferable (defined as a
having a reduced effect on human health
and the environment compared with
competing products). Federal agencies are
required to purchase environmentally
preferable biobased products, if available.
For FY2002 through FY2006, mandatory
spending is increased by $2 million per
year, to remain available until expended.
[Section 388B]
b. No provision for biorefineries under
b. There is no provision for biorefineries.
b. Establishes a new grant program to
CFRDA.
However, the bill amends the Agricultural
assist in the development and construction
Research, Extension, Education, and Reform
of biorefineries, defined as facilities that
Act of 1988 (7 U.S.C. 7624) to extend
convert biomass into fuels and chemicals.
authority to provide grants for pilot projects
For FY2002 through FY2006, mandatory
on biobased product development.
spending is increased by $15 million per
Authority, which expired at the end of
year, to remain available until expended.
FY2001, is extended to FY2011.
[Section 388C]
[Section 725]
Also, Section 379 of the Act is amended to
give priority to bioenergy and biochemical
projects for grants.
c. Biodiesel fuel under CFRDA.
c. No provision.
c. Establishes a new program to provide
No provision
grants to nonprofit organizations that
educate fleet operators and the public

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about the benefits of biodiesel. For
FY2002 through FY2006, $5 million
annually is authorized to remain available
until expended.
[Section 388D]
7. Clean Energy - Chapter 2: Renewable Energy Development and Energy Efficiency
a. CFRDA allows loans and loan guarantees
a. Amends Section 30 of the Act to allow
a. Establishes a new program to assist
for the installation of solar energy systems.
loans and loan guarantees for renewable
farmers, ranchers, and rural business
[Section 30]
energy systems. No new budget authority is
ventures in the establishment or expansion
granted.
of electrical facilities powered by renewable
[Section 606]
energy. For FY2002 through FY2006,
mandatory spending is increased by $16
million, to remain available until expended.
[Section 388E]
b. No provision for energy audits under
b. No provision
b. Establishes a new program to provide
CFRDA.
grants to entities that assist farmers,
ranchers, and rural small businesses in
performing audits to identify potential for
improving energy efficiency and developing
renewable energy. For FY2002 through
FY2006, mandatory spending is increased
by $15 annually, to remain available until
expended.
[Section 388F]
c. No provision for energy systems under
c. No provision.
c. Establishes new a system of grants and
CFRDA.
loans to farmers, ranchers, and rural small
businesses for the purchase of renewable
energy systems. Recipients must have sales
less than $1 million per year. For FY2002

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through FY2006, mandatory spending is
increased by $33 million per year, to
remain available until expended.
[Section 388G]
d. No provision for hydrogen and fuel cells
d. No provision.
d. Establishes a new grant program for
under CFRDA.
cooperative research on hydrogen and fuel
cell technologies for use in farm, ranch, and
rural applications. For FY2002 through
FY2006, mandatory spending is increased
by $5 million annually, to remain available
until expended. [Section 388H]
e. No provision for technical assistance to
e. Amends the Food Security Act of 1985
e. Establishes a new program providing
support energy development under CFRDA.
(16 U.S.C. 3839aa) to allow the Secretary to
technical assistance for farmers and
provide education and technical assistance to
ranchers to develop renewable energy
farmers and ranchers to develop and market
resources. The Secretary may retain up to
renewable energy resources. No new budget
4% of the funds in the above areas to assist
authority is created.
farmers and ranchers in developing and
[Section 942]
marketing renewable energy.
[Section 388I]
8. Clean Energy - Chapter 3: Carbon Sequestration Research, Development and Demonstration Program
a. No provision for carbon sequestration
a. Amends the Agricultural Risk Protection
a. Authorizes new funding for basic and
research under CFRDA.
Act of 2000 (P.L. 106-224, Section 211) to
applied carbon sequestration research,
extend the authorization of the Carbon Cycle
conducted either by the Secretary of
Research Program, which provides grants to
Agriculture, or by other entities funded
land grant universities for carbon cycle
through competitive grants. The research
research. Authorization is extended through
goals include the study of net sequestration
2011 (originally a one-time authorization of
of carbon by soils and plants, and the net
$15 million).
greenhouse gas emissions from agriculture.
[Section 751]
$25 million is authorized annually for
FY2002 through FY2006. S.Amdt. 2546

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added state forestry agencies to the list of
eligible entities.
[Section 388J]
b. No provision for demonstration projects.
b. No provision.
b. Authorizes projects, administered 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]
9. Biomass Research and Development
The Biomass Research and Development Act
Extends authority for the program through
Amends the Act to nullify the $49 million
of 2000 provides competitive funding for
FY2011; adds animal byproducts to the
appropriation, and instead provides for
R&D projects on biofuels and other biobased
definition of “biomass”; and adds a livestock
mandatory funding of $15 million each year
chemicals and products, administered by the
trade association representative tot he
for FY2002 through FY2006, to remain
Secretaries of Agriculture and Energy. $49
Technical Advisory Board. Authorized
available until expended. Program
million per year is authorized for FY2002
appropriations will increase from zero to $49
authority is extended by one year, to
through FY2005. The authority for the
million in each of FY2006 through FY2011.
September 30, 2006.
program expires December 31, 2005.
[Section 746]
[Section 903]
[P.L. 106-244, Title III]
(Note: Congress provided $15 million for
this initiative in FY2002. Total funding
would remain at $15 million per year, but
would be mandatory.)

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10. Renewable Energy Projects
The Rural Electrification Act of 1936
No provision.
Amends the Act to establish a loan and
authorizes the Rural Utilities Service, which
grant program for renewable energy
provides credit assistance to build and
projects at rural electric utilities and
operate electric generating facilities,
cooperatives. Grants may cover up to 75%
wholesale transmission equipment, and local
of an economic feasibility study or for
distribution lines. The Secretary of
technical assistance on a project. Loans, at
Agriculture is authorized to provide loans
4% interest, may be used to cover a
and grants to improve electricity supply in
percentage (to be determined by the
rural areas. Currently, there are no
Secretary) of the project cost. For FY2002
provisions for renewable energy.
through FY2006, $9 million per year in
[7 U.S.C. 901 et. seq.]
mandatory spending is provided, to remain
available until expended.
[Section 904]
11. Carbon Sequestration Demonstration Program
The Agricultural Research, Extension, and
No provision.
Amends the Act (adding Section 409) to
Education Reform Act of 1998 establishes an
authorize $20 million each year for FY2002
account in the Treasury to be used by the
through FY2006 to establish projects that
Secretary of Agriculture for matching grants
can show demonstrable reductions in net
to address critical emerging agricultural
greenhouse gas emissions or increases in
issues.
carbon sequestration by soils and
[P.L. 105-185]
forests.S.Amdt. 2546 added farmer
cooperatives to the list of eligible entities.
[Section 905]

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12. Mandatory Spending Increases for Energy Provisions
Not relevant.
None.
$110 million/year; $550 million total (CBO
estimate)
H. Anti-trust and Competition
1. Competition Task Force and GIPSA
Resources.
a. Interagency Task Force on Agricultural
Directs the Secretary of Agriculture to set up
No provision
Competition.
an Interagency Task Force on Agricultural
(NOTE: An earlier version of the Senate
No provision
Competition comprised of nine employees
farm bill (S. 1628) contained a Competition
from USDA and the Department of Justice.
title that was struck during committee
The Task Force is directed to conduct
markup.)
hearings into competition issues in
agriculture and submit a report on findings
and recommendations for administrative and
legislative action. [Section 937]
b. GIPSA Staffing. No provision
b. Authorizes appropriations to enhance the
b. No provision
capability of the Grain Inspection, Packers
and Stockyards Administration (GIPSA) to
review competition in the meatpacking
industry and hire litigation attorneys.
[Section 938]
2. Meat Packer Concentration
a. Prohibition on Packer Ownership.
[Section 202 of the Packers and Stockyards
a. No provision
a. Prohibits packers from owning, feeding,
Act of 1921]
or controlling livestock for more than 14
No provision
days prior to slaughter. Exempts

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cooperatives or entities owned by a
cooperatives and small packers owned by
producers from this prohibition. Provides
for a transition period of 18 months for
packers of swine who own, feed or control
livestock intended for slaughter on the date
of enactment, and up to 180 days after
enactment date for packers of other types
of livestock. [Section 1043]

b. Adds a new section 413A to Packers
b. Arbitration Clauses. Packers and
No provision
and Stockyards Act that removes
Stockyards Act of 1921.
mandatory arbitration clauses from
No provision
livestock contracts and allows for dispute
settlement through other legal means in
addition to arbitration. [Section 1046]
(Note: This provision was offered and
adopted as a floor amendment by Senators
Feingold, Grassley, and Harkin.)
c. Amends PSA to add new section 417
c. Terms of Contract Discussion. Packers
No Provision
that permits a party to a discuss terms of a
and Stockyards Act of 1921
contract. [Section 1044]
No provision
I. Animal Transport, Inspection and Health
1. Definitions under the Animal Health
Protection Act
Current animal health-related statutes define
No Provisions
Adds new definitions for: animal, article,
‘animal’, ‘interstate’, Secretary, and ‘United
disease, enter, export, facility, import,

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States’ [Animal Health Protection Act (21
Indian Tribe, interstate commerce,
USC§134)].
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.]
2. Mailing Poultry and Other Animals
No provision
Removes expiration date on surcharge
Section 651 of the FY2002 Agricultural
authority. [Section 1060]
Appropriations law (P.L. 107-67) authorized
the Postal Service to (1) require airlines to
accept certain animals (including day-old
chicks) as mail, and (2) assess a surcharge to
shippers to cover additional costs of shipping
animals. The surcharge authority expires
June 30, 2002.
3. Other Animal Movement
a. Importation. Authorizes the President to
No Provisions.
a. Consolidates current authorities on animal
suspend animal importations to protect U.S.
importation. Among other things, authorizes
animals from infectious contagious animal
the Secretary to prohibit or regulate the
diseases (Section 101 of Title 21). Gives the
importation of any animal, transport vehicles
Secretary a variety of authorities to prevent the
or facilities if this is needed to prevent entry
dissemination of a disease into the United
or dissemination of a pest or disease into the
States ((21 USC §102, §103, and (§§105 and
United States. Applies similar restrictions to
134a.).
animals 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.]

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b. Exportation. Authorizes the Secretary to
b. Gives Secretary new authority to recover
adopt measures and issue regulations to
No provisions.
costs from owners for failures to comply and
prevent the exportation of diseased livestock
to regulate exportation. Consolidates and
and poultry (21 USC §§113,120,134b and
keeps current authorities. [Section 1025].
§§612-614.)
c. Interstate Movement. Broadly authorizes
the Secretary to regulate and to adopt
No Provisions.
c. Consolidates current authorities. [Section
measures to prevent the transport or
1026].
movement of diseased or quarantined livestock
and poultry within the United States. (21
USC§§120, 125-128, 134a)
d. Animal Enterprise Terrorism
No provision
no provision
New provision making it unlawful 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 animal enterprise, or to intentionally
damage or cause loss of property used by an
animal enterprise. Establishes penalties for
such violations. [Section 1058]
4. Seizure, Quarantine, and Disposal.
a Several sections of Title 21 give the
No Provisions.
a. Adds new authorities allowing the
Secretary broad authorities to prevent the
Secretary to ‘hold’, ‘treat’ or ‘destroy’
spread of contagious infectious diseases within
animals, articles and means of conveyance
the United States. (see 21USC§§ 111, 113,
(from imports or in interstate commerce), if
123, 134(a) and 134a(b)].
these are affected by or have been exposed

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to a pest or a disease and in connections to
an extraordinary emergency. Current
emergency authorities to seize, quarantine,
and dispose of animals or regulated items are
consolidated and kept. [Section 1027].
b. No provisions.
No Provisions.
b. Makes final compensation payment not
subject to judicial review (Section 1027).
[Note: similar language is found in
7USC§7715 for Plant Protection
Authorities.]
c. Inspection, Seizures, and Warrants.
No provisions.
Authorizes the Secretary to inspect, without a
d. Gives new authorities to the Secretary to
warrant all persons or means of conveyance
stop and inspect, on probable cause, persons
entering the United States for prevention of
or means of conveyance coming from
introduction or dissemination of any
quarantined areas in intrastate commerce.
communicable animal disease (7USC§134d ).
Retains current authorities for warrantless
The Secretary has similar authorities in
inspections of persons or means of
interstate commerce when, on probable cause,
conveyance in international and interstate
there is a need to determine whether persons
commerce and authorities to inspect
or means of conveyance are carrying infected
premises with a warrant, but adds allowance
or exposed animals, products, or regulated
for said warrant to be executed by a U.S.
articles. The statute also authorizes the
marshal. [Section 1028].
inspection of premises, and seizures (on
(Note: Similar authorities are found in
probable cause and with a court warrant) to
7USC§7731 for Plant Protection.)
prevent the introduction or dissemination of an
animal disease. Needed warrants may be
executed by USDA officials.
e. Detection, Control, and Eradication of
Diseases and Pests.
No Provisions.
e. Authorizes the Secretary to carry out
No similar authorities
activities to detect, control, or eradicate any
pest and disease of livestock (including the
drawing of blood and diagnostic testing of

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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].
5. Veterinary Accreditation Program.
No similar authorities exist. Current veterinary
No Provisions.
Authorizes the Secretary to establish a
accreditation program is voluntary.
veterinary accreditation program, which
would include the establishment of standards
of conduct for veterinary practitioners.
[Section 1030].
6. Cooperation.
(a) Several sections of Title 21 give the
No Provisions.
Keeps and consolidates present
Secretary broad authorities to cooperate with
authorities.[Section 1031]
other agencies, States, foreign governments,
and organizations to carry out provisions
related to animal health statutes, provided that
the cooperating entity is authorized. (See
21USC§114, 114b, 114d-1, and 7USC§429).
(b) Current law authorizes USDA to produce
No Provisions.
Retains the screwworms program as
and sell sterile screwworms to foreign
currently authorized, except that its proceeds
countries or international organizations, with
are to be deposited directly to the account
the proceeds going into the U.S. Treasury, and
from which the operating expenses have been
credited to the appropriation from which the
paid and not to the program’s yearly
operating expenses of the facility producing the
appropriation. [Section 1031].
screwworms had been paid. (21USC§114d).

7. Consultations with Heads of Federal
No Provisions.
Directs the Secretary to consult with the

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Agencies.
heads of a Federal agencies with respect to
any activity that is under their jurisdiction.
No similar authorities exist related to animal
The new provision also appoints USDA as
health laws.
lead agency with respect issues related to
pests and diseases of livestock. [Section
1031].
8. Reimbursable Agreements.
The Secretary is currently authorized to enter
No Provisions.
Keeps current authorities, but adds a new
into reimbursable fee agreements with persons
subsection for late payment penalties,
at locations outside of the United States to run
including the payment of interest as currently
animal and plant health importation
required under 31USC§3717 on Interest and
preclearance programs. (7USC§2260a).
Penalties on Claims [Section1032].
Statute also authorizes the Secretary to pay
USDA employees for: (1) performing
inspection or quarantine services relating to
imports and exports; (2) paying for all
overtime, night, or holiday work performed;
and (3) requiring reimbursements from the
person for whom the services are performed.
(7USC §2260).
9. Administration and Claims.
No similar authorities exist related to animal
No provisions.
Adds new authorities for the Secretary to
health laws.
acquire and maintain real or personal
property, to employ a person, and to 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]

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10. Penalties.
No Provisions.
Streamlines criminal and civil penalties for
violations of animal health statutes. Provides
a. Current law establishes criminal penalties of
for new civil penalties, and fines. Provides
fines and/or up to one year of imprisonment,
new authority for the Secretary to suspend or
and also civil penalties of up to $1000 for
revoke accreditation to any veterinarian that
violations animal importation regulations
violates the Act. The Secretary may also
(21USC§104). Section 21USC§117 establishes
summarily suspend an accreditation if there
penalties for knowingly transporting diseased
is reason to believe that the statutes have
livestock or poultry in violation of law with:(1)
been violated. A prompt post-suspension
criminal penalties that make it a misdemeanor
hearing is mandated in such cases [Section
punishable by up to $5,000 fines or
1034].
imprisonment, or both to; and (2) civil
(Note: Identical authorities are found in
penalties of fines up to $1,000 after a notice
7USC§7734 for Plant Protection
and the opportunity for a hearing on record.
Authorities.)
Orders for penalties shall be treated as a final,
and are reviewable under 28USC§158.
(Similar civil and criminal penalties are
established by in Title 21 sections 122, 127,
and 134b).
12. Regulations and Orders.
Currently several statutes authorize the
No Provisions.
Consolidates the Secretary’s broad authority
Secretary to issue regulations necessary to
to promulgate regulations, and issue orders,
carry out animal health law provisions for
as necessary to carry out animal health
export, transport, certification, inspection,
statutes. [Section 1036].
disinfection of livestock and poultry.
(21USC§§ 111, 120, 125 and 134f).
H. Plant Protection
New Penalties for Violations of the Plant
No Provisions.
Amends §424 of the Plant Protection Act
Protection Act
(7USC§7734): (1) by eliminating criminal
penalties provisions with a new subsection

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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 criminal and civil cases
and for the establishment of appropriate
procedures. [Section 1068].
J. Pseudorabies Eradication
Section 2506(d) of the Food, Agriculture,
No Provisions
Extends the pseudorabies eradication
Conservation, and Trade Act of 1990
program authority until FY2006. [Section
authorized the pseudorabies eradication
1059].
program until 1995. Later, section 916 of
Federal Agriculture Improvement and Reform
Act of 1996 amended the statute (21USC
§114i) to extend the program through 2002.

K. Preclearance Quarantine Inspections for Hawaii
No Provisions
No Provisions
Orders the Secretary to conduct preclearance
inspections for departures out of Hawaii and
destined 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].

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L. Non-Ambulatory Farm Animals
No similar provision for unlawful practices
Adds a new section to Title III of PSA that
Same as House [Section 1045].
(Packers and Stockyards Act (PSA) of 1921)
introduces new definitions, unlawful practices,
and exceptions, as follows:
‘Humanely euthanized’ is defined to mean to
kill an animal by mechanical, chemical, or other
means that immediately render the animal
unconscious, with this state remaining until the
animal’s death,”
“Non-ambulatory Livestock” means 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 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].
M. Animal Welfare Act (nonfarm animals)
1. Care and Treatment standards for dogs.
No provisions
No Provisions
Amends the Animal Welfare Act ordering the
Secretary to include minimum standard
requirements: (1) for the socialization of
dogs intended for sale as pets; and (2) for

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addressing the initiation and frequency of
breeding of female dogs, in the Secretary’s
promulgation of standards to govern the
humane handling, care, treatment, and
transportation of animals by dealers, research
facilities, and exhibitors. [Section 1049].
2. Birds, Rats, and Mice
a. Definition for ‘animal’ in the Animal
No Provisions.
Excepts birds, rats and mice used for
Welfare Act. The Animal Welfare Act sets
research from protection under the Animal
minimum standards of animal care for
Welfare Act (AWA) by amending the
experimental laboratories, animal dealers, and
definition of “animal” in Section 26 of the
others. In 1970, the AWA was amended to
Animal Welfare Act [7USC§2156 2(g)].
protect “warm-blooded animals” used in
The provision codifies current regulations,
research but gave the Secretary the authority
which specifically exclude birds, rats and
to determine AWA’s applicability to animals
mice for research use from protection under
not specifically mentioned in the Act. Current
this Act (see 9CFR§1.1). [Section 1051].
regulations specifically exclude birds, rats and
mice for research use from protection under
this Act (see 9CFR§1.1). On September 28,
2000 USDA reached an out of court settlement
with the Alternatives Research and
Development Foundation to begin a
rulemaking process on the regulation of birds,
rats and mice under AWA. However,
Agriculture Appropriations Acts for FY 2001
and for FY2002 have prohibited the use of
appropriated funds to carry out the rulemaking
process (see P.L. 106-387 §772, and P.L.
107-76 §732).

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b. Report
No provisions.
Requires from the Secretary of Agriculture a

report, completed by the 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].
3. Animal Fighting Ventures and
Cockfighting
Imposes fines of not more than $5,000 or
Amends Section 26(e) of AWA by increasing
Same as House [Section1052].
imprisonment for not more than 1 year, or
fines to not more that $15,000 and
both, for each violation (Section 26 (e) of the
imprisonment to no more than 2 years, or both,
Animal Welfare Act, as amended by Section
for each violation. [Section 940(a)(1)].
17 of the Animal Welfare Amendments Act of
1976)
Defines ‘Interstate or Foreign Commence’ as:
Adds phrase “or from any State into a foreign
(A) any movement between any place in a
country” to the statute’s ‘interstate or foreign
State to any place in another State or between
commerce’ definition. [Section 940(a)(2)].
places in the same State through another State;
or (B) any movement from a foreign country
into any State. (Section 26(g)(2))

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4. Interstate Movement of Animals for
Amends Section 26(d) of the Animal Welfare
Same as House [Section 1053].
Animal Fighting:
Act to prohibit the interstate movement of
animals for fighting. Section 26(d) would read
Currently, interstate movement of animals for
as follows: “(d) Activities Not Subject to
fighting is legal to states where fighting is
Prohibition- This section does not apply to the
allowed. Section 26(d) of the Animal Welfare
selling, buying, transporting, or delivery of an
Act, as amended, reads as follows: “(d) Not
animal in interstate or foreign commerce for
withstanding the provisions of subsection (a),
any purpose, so long as the purpose does not
(b), or (c) of this section, the activities
include participation of the animal in an animal
prohibited by such subsection shall be unlawful
fighting venture.” [Section 941(a)].
with respect to fighting ventures involving live
birds only if the fight is to take place in a State
where it would be in violation of the laws
thereof.” (7USC§ 2156(d)).
5. Humane Methods for Animal Slaughter
Free standing provision expresses sense of
Similar to House bill, except that also calls
Humane Methods Slaughter Act of 1958.
Congress that USDA should fully enforce the
for resuming the tracking and reporting of
Humane Methods Slaughter Act of 1958
Act violations to Congress. [Section 1067].
(7USC§§1901 et seq.) [Section 939].
N. Genetically Engineered Products
Report on Genetically Engineered Food (GEF)
Authorizes $0.5 million for a National
Sense of the Senate Resolution for the
and Genetically Engineered Pest Protected
Academy of Sciences report on GEF
Secretary to submit a report on genetically
Plants
regulations, safety and monitoring. [Section
engineered pest-protected plants. Authorizes
933].
appropriations of $10 million from FY2002
and sums as necessary for other fiscal years.
[Section 1083]
Public Education of GEF
Authorizes a USDA program to educate the
No provision
public about GEF. [Section 935].

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O. Pesticides and School Pesticide Management Plans
1. Fees
No provision
Amends FIFRA to reauthorize fee
[Section 4, Federal Insecticide, Fungicide,
collection (to support preregistration of
and Rodenticide Act, FIFRA]
pesticides), increase maintenance fees,
prohibit collection of registration fees for
five years, and allow expedited registration
processing for inert gradients. It also would
strictly limit increases in tolerance
processing fees charged to registrants of
pesticides used on food. [Section 1041]
2. Small Business Eligibility for reduced
fees.
Expands the number of businesses eligible
Permits lower maintenance fees for
No provision
for reduced fees from those with 150 or
businesses with 150 or fewer employees.
fewer employees to those with 500 or
[Section 4, FIFRA)]
fewer employees. [Section 1041]
3. Pest Management in Schools
No provision
No provision
Amends FIFRA to create a new 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
required to develop plans and submit them
to the Administrator for approval. Local
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implement their state plan within one year
of receiving it. [Section 1042]
P. Socially Disadvantaged Farmers and Ranchers
1. Compilation of program participation data
No Provision
Amends Section 2507 of the FACT Act to
No provision in current law
require the Secretary to compute annually
[Section 2507 of the Food, Agriculture,
for each county and state. the participation
Conservation and Trade Act of 1990]
rate of socially disadvantaged farmers and
ranchers as a percentage of total USDA
program participants. [Section 1057]
2. Elections for country areas or local
Adds requirements for the composition of
committees.
county, area or local committees that will
No provision in current law
No provision
make them fairly representative. Requires
[Section 8 (b)(5) of the Soil Conservation
the Secretary to establish procedures for
and Domestic Allotment Act]
nominations and elections committees and
to solicit and accept nominations from
organizations representing interests of
socially disadvantaged farmers. Requires
public notice and observation of opening
and counting of ballots by any person, and
filing of an election report on the outcome
of the election with the Secretary and the
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

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guidelines to ensure fair representation of
socially disadvantaged for conducting
elections if necessary after analyzing the
data contained in the election report.
[Section 1057]
3. Definition of Socially disadvantaged
No Provision
Adds “gender” to the categories qualifying
group. Defines a socially disadvantaged
as a socially disadvantaged group.[Section
group as a group whose members have been
1057]
subjected to racial or ethnic prejudice
because of their identity as members of a
group without regard to their individual
identities.
[Section 2501(e) of the FACT Act of 1990]
Q. Outreach and Assistance to Geographically Disadvantaged Farmers and Ranchers
No Provision
No Provision
Establishes a program to encourage
geographically disadvantaged farmers and
ranchers in owning and operating farms and
ranches and participating equitably in the full
range of agriculture programs offered by the
USDA. Authorizes $20 million annually for
FY2002-2006 to carry out this program, and
defines a geographically disadvantaged farmer
or rancher as one in an insular area or a state
other than one of the 48 contiguous states.
[Section 1079B]

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R. Farm Marketing Programs
1. State Marketing Programs.
1. No provision
Among other things, establishes a State
Federal support for: the promotion of
Marketing Program funded with CCC
agricultural products through research to
funds (mandated at $7 million FY2003, $8
improve the marketing, handling, storage,
million for FY2004 and $10 million for
distribution and transportation of agricultural
each of fiscal years 2005 and 2006). Fund
products; cooperation between federal, state
are to be allotted to state departments of
and local agencies, producers, industry
agriculture and other appropriate State
organizations and others in research and
agencies for cooperative projects in
application of effective marketing program;
marketing services and research. From the
and integrated administration of all law
CCC funds allotted under this program, ,
enacted by the Congress to aid the
the Secretary is to give priority to
distribution of agricultural products through
initiatives designed to support direct and
research , market aids and services and
others marketing efforts of small farms and
regulatory activities.[The Agricultural
limited resource farmers. [Section 1050]
Marketing Act of 1946, Title II ]
2. Farmers Market Promotion Program.
Federal aid to promote the development and
2 No provision.
Among other things, authorizes (but does
expansion, of direct marketing of agricultural
not require) $10 million annually for fiscal
commodities from farmers to consumers
years 2002-2006 to make grants under a
farmers’ market and other means (i.e.,
new ‘Farmers’ Market Promotion
farmers markets) [The Farmer-to-Consumer
Program’ to establish, expand and
Direct Marketing Act of 1976]
promote farmers markets. Maximum grant
amounts set at $500,000 in any fiscal year.
Includes types of entities eligible for such
funds, and the criteria and guidelines for
grant submission, evaluation and funding of
projects.[Section 1050]
S. Studies, Reports and Task Forces
1. Studies and Reports -Salmon, Genetically
Requires the Secretary to issue a report or
modified plants, U. of Arkansas Litter Bank,
study on: Pouched and canned salmon;

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Pesticide sales and use, Producer
genetically modified pest-protected plants
Indemnification, Rats, mice and birds.
the feasibility of producer indemnification
from government caused disasters; creation
of Litter bank by the University of
Arkansas; the sale and use of pesticides for
agricultural uses; rats, mice and birds. Of
these only the study of GM pest-protected
plants authorizes funding -- $10 million for
FY2002 and such sums as are necessary
thereafter. [Sections 1081, 0183, 1084,
1085, 1086 and 1087].]
2. Master Settlement Agreement
No provision
Requires the Comptroller General to
submit to the Congress a report describing
all programs and activities carried out by
states using funds receive und the master
Settlement Agreement of 1997. [Section
1082]
3. National Institutes of Plant and
No provision
Requires the Secretary to establish a task
Agricultural Sciences.
force to evaluate the merits of establishing
one or more National Institutes of Plant
and Agricultural Sciences. Lays out
membership and general criteria for
membership, appointed by the Secretary,
and the duties of the Task Force. No funds
authorized. [Section 1088]

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