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

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

Order Code RL31704
CRS Report for Congress
Received through the CRS Web
A New Farm Bill: Comparing the 2002 Law with
Previous Law and House and Senate Bills
January 21, 2003
Agriculture & Food Supply Section
Coordinated by Jean Yavis Jones
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

A New Farm Bill: Comparing 2002 Law with Previous
Law and House and Senate Bills
Summary
On May 13, 2002, President Bush signed a new farm bill — The Farm Security and
Rural Investment Act of 2002 (P.L.107-171). This comprehensive new law contains ten titles
covering commodity support, conservation, nutrition, trade, research, credit, rural
development and other related programs. It makes significant changes to commodity,
conservation and nutrition programs, and is intended to guide most federal farm and food
policies through FY2007. The Congressional Budget Office (CBO) estimates (using the
March 2002 baseline) place the total cost of the new bill (i.e., baseline plus new funding) at
just under $274 billion over its six-year life-span. The total reflects an increase of $51.6
billion in federal spending, $37.6 billion of which is projected to be used to increase farm
commodity program spending.
Of the $274 billion in total 6-year budget authority for programs under the new law, it
is estimated that some $99 billion will go for direct subsidies to about 600,000 farmers.
Just under $150 billion will support the cost of food stamps and commodity assistance for
some 17 million low-income Americans. The remaining $25 billion is expected to be spent
on conservation ($21 billion), trade ($2.1 billion), rural development ($1 billion), and
research, forestry and energy ($2.5 billion) programs.

The new farm bill has been hailed by supporters as a corrective to previous policy that
was criticized for not providing a “safety net” for farmers, and that prompted some $35
billion in ad hoc emergency farm spending laws between fiscal years 1999 and 2002. Critics
of the new farm law expressed concern about its cost and its resurrection of old policy
mechanisms that they contend encourage overproduction that will further depress farm
prices. There also is concern that the generous farm subsidies in the new law conflict with
U.S. trade agreements and/or impede U.S. efforts to get other countries to cut their farm
subsidies.
The House approved its original farm bill (H.R. 2646, the Farm Security Act of 2001)
on October 5, 2001. The Senate version of this legislation (The Agriculture, Conservation,
and Rural Enhancement Act, or ACRE) was approved on February 13, 2002, and was nearly
three times the size of the House bill. Despite this, the commodity policy changes in both
bills reflected a similar policy direction. Both chambers’ bills maintained marketing loan
assistance and fixed, decoupled annual farm payments, although at different levels. They
both also added target prices and counter-cyclical income support (or deficiency payments)
for major field crops. Conservation and nutrition programs were enhanced by both bills,
although more so in the Senate bill. Other differences between the House and Senate
included: the pace of new spending; the amount of new funding for commodity programs
versus other USDA activities (e.g., conservation, food assistance, etc.); how much to fund
each of the commodity support programs; and the federal caps on farm payments. The final
law adopted the more evenly paced annual spending of the House bill; spent most (73%) new
money on farm commodity programs; split the differences over funding for each of the three
major commodity programs; and set new farm payment caps that lowered base limits but
maintained rules allowing payments for up to three entities, spouses, and unlimited
commodity certificates. This report will not be updated.

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

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

G. Miscellaneous Credit and Finance Provisions . . . . . . . . . . . . . . . . . . . 143
VI. RURAL DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
A. Rural Community Advancement Program . . . . . . . . . . . . . . . . . . . . . . 146
B. Fund for Rural America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
C. Telecommunications
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
D. Value-added Agriculture Development . . . . . . . . . . . . . . . . . . . . . . . . 148
E. Water and Waste Treatment Programs . . . . . . . . . . . . . . . . . . . . . . . . . 149
F. Rural Entrepreneur and Business Investment Programs . . . . . . . . . . . . 151
G. Strategic Rural and Regional Planning Programs . . . . . . . . . . . . . . . . . 152
H. Rural America Infrastructure Account . . . . . . . . . . . . . . . . . . . . . . . . . 153
I. Other Rural Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
VII. RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
A. Funding Authority: University Research and Cooperative Extension
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
B. The Initiative for Future Agriculture and Food Systems . . . . . . . . . . . 158
C. Land Grant Institutions in Insular Areas . . . . . . . . . . . . . . . . . . . . . . . 159
D. 1890 Land Grant Universities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
E. 1994 Institutions (Tribally Controlled Land Grant Institutions . . . . . . 161
F. Priority Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
G. International Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
H. Biotechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
I. Research Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
J. Competitive Research Grants Administration . . . . . . . . . . . . . . . . . . . 165
K. Biosecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
L. Research related to Rural and Beginning Farmers . . . . . . . . . . . . . . . . 167
M. Miscellaneous Research Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . 169
VIII. FORESTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
A. Forest Landowner Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
B. Suburban and Community Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
C. Watershed Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
D. Fire Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
E. Forest Health Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
F. Forestry Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
G. Renewable Resources (RREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
H. International Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
I. Tribal Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
J. National Forest Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
IX. MISCELLANEOUS PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
A. Federal Crop Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
B. Noninsured Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
C. Emergency Crop Disaster and Income Loss Assistance . . . . . . . . . . . . 182
D. Market Loss Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
E. Livestock Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
F. Migrant and Seasonal Farmworker Assistance . . . . . . . . . . . . . . . . . . . 185
G. Tree Assistance and Caneberries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
H. Energy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
I. Anti-trust and Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
J. Animal Transport, Inspection and Health . . . . . . . . . . . . . . . . . . . . . . . 196

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

This report reflects the contributions of the following CRS analysts:
Farm Bill Provisions
CRS Contributors
Summary, Overview, and
Jean Yavis Jones (7-....)
Narrative Comparison
Commodity Programs:
Wheat, feedgrains, cotton, oilseeds,
(name redacted) (7-....)
tobacco, and general rules
Dairy
Ralph Chite (7-....)
Peanuts and Sugar
(name redacted) (7-....)
Specialty crops
Fruits, vegetables, nuts, flora
Brenda Branaman (7-....)
Honey, wool, mohair
(name redacted) (7-....)
Conservation
Jeffrey Zinn (7-....)
Agricultural Trade and Aid
Geoffrey Becker (7-....)
Nutrition Programs
(name redacted) (7-....)
Farm Credit
(name redacted) (7-....)
Rural Development
(name redacted) (7-....)
Research
Jean Rawson (7-....)
Forestry
Ross Gorte (7-....)
Federal Crop Insurance
Ralph Chite (7-....)
Energy
Brent Yacobucci (7-....)
Animal Welfare
Alex Segarra (7-....)
Genetically Engineered Food
Pesticides
Linda Schierow (7-....)
For more information, see CRS Report RL31195, The 2002 Farm Bill: Overview and
Status; CRS Report RS21233, The 2002 Farm Law at a Glance.
Individual topic comparisons include the following CRS reports: CRS Report RL31524,
The 2002 Farm Bill: Comparison of Commodity Support Provisions with House and
Senate Proposals and Prior Law, by (name redacted); CRS Report RL31486, Resource
Conservation Title of the 2002 Farm Bill: Comparison of New Law with Bills passed by
the Senate and Prior Law, by Jeffrey Zinn; and CRS Report RL31271, Energy Provisions
the Farm Bill: Comparison of the New Law with Previous Law and House and Senate
Bills, by Brent Yacobucci.

A New Farm Law: Comparing the 2002 Law
with Previous Law and the House and
Senate Bills
Overview
President Bush signed a new farm law (P.L. 107-171, the Farm Security and
Rural Investment Act of 2002, on May 13, 2002. This followed almost two years
of hearings, committee deliberations, and floor debates. The House passed its bill
(H.R. 2646) on October 5, 2001. The Senate passed its version of this legislation on
February 13, 2002. The House and Senate conferees began formal meetings on
April 9, 2002 and reached agreement on their differences on April 22, 2002. The
House approved the conference agreement (H.R. 2646, H.Rept. 107-424). on May
2, 2002 by a vote of 280-141; the Senate approved it on May 8, 2002 by a vote of 64-
35.
The final law contains ten titles: Commodity Programs, Conservation, Trade,
Nutrition Programs, Credit, Rural Development, Research and Related Matters,
Energy, and Miscellaneous. At the time of its enactment, the new law was projected
to add $73.5 billion to federal funding for food and agriculture programs over 10
years.1 This included new funding for farm commodity programs (+$47.8 billion);
conservation programs (+$17.1 billion); trade (+$1.1 billion); nutrition programs
(+$6.4 billion); research (+$1.3 billion); and rural development (+$870 million).
April 2002 CBO estimates projected new federal costs for the new law at $82.8
billion.
Total budget authority for programs in the new law (that is, baseline spending
plus new spending) was projected by the Congressional Budget Office (CBO) when
the legislation was approved to be $274 billion over its six-year life span. Of this
amount some $99 billion was expected to go to about 600,000 farmers in the form
of direct payments; $150 billion to support the cost of food stamps and commodity
assistance to some 17 million low income persons; and the remaining $25 billion for
conservation ( $21 billion), trade ($2.1 billion), rural development ($1 billion), and
research, forestry and energy ($2.5 billion) programs.
1 Based on March 2001 CBO baseline estimates. March 2002 baseline estimates brought
the estimated new cost to a total of $82.8 billion over 10 years.

CRS-2
Economic and Policy Setting
Consideration of new farm policy began in 2001, more than a year before the
major provisions of the 1996 farm bill were due to expire. The early timing was
driven in large measure by the persistence of low prices for many major field
commodities, and the desire to address farm income problems through changes to
underlying farm policy, rather than by annual multi-billion dollar farm aid packages
like those enacted between 1998 and 2001.
The economic environment in 2001 was quite different from that existing in
1995-96 when the previous farm bill was considered. In 1995, world commodity
supplies were low, demand was growing, and prices for most program commodities
were at near record highs. This favorable economic climate, along with growing
pressure to bring federal spending under control, changed party control of the
Congress, and trade agreements to cut back domestic farm support, made the time
propitious for major policy changes. By 1998, however, prices for many major
commodities had begun to fall as previous growth markets overseas suffered
financial crisis and supplies overtook demand. When the House and Senate began
examining new farm policy options early in 2001, this followed three years of
stagnant commodity prices and “emergency” farm aid packages totaling over $ 33
billion. The economic environment made it easier for the Congress to approve a
congressional budget resolution that contained allowances for some $73.5 billion in
new farm bill spending. Subsequently, however, the rosy budget scenario changed.
A mild recession, declining revenues, and the mounting costs of the U.S. war
against terrorism precipitated by the events of September 11, 2001, have combined
to deplete the budget surplus. Some pointed to pending deficits as a reason to rethink
the wisdom of substantial increases in farm spending. Others, mostly farm groups
and their legislators, pushed for quick farm bill action fearing the loss of the allowed
increases. Still others worried about the implications of not passing legislation in
time for farmers’ spring planting decisions, and about the potentially costly
consequences of legislating in an election year. Different party control of each
chamber of Congress, a new administration reluctant to push for an early farm bill,
and other national events delayed completion of the new farm bill until May 2002.
1996 Farm Law. When the previous farm bill was being formulated in 1995
and 1996, the farm economy was enjoying a boom. Prices for most commodities
were at record highs, as was farm income. Moreover, foreign demand for U.S.
agricultural goods was expanding, particularly in Asia and Latin America. At that
time legislators in the Congress were also facing constraints because of severe budget
deficits and trade initiatives that added pressure for changes to farm policy that would
better control farm program spending and adapt U.S. policies to trade agreements.
The Federal Agricultural Improvement and Reform (FAIR) Act of 1996 (or
1996 Farm bill, P.L. 104-127) was enacted in April, 1996. This followed nearly two
years of deliberations and the extension for one year of previous law provisions

CRS-3
beyond their original 1995 expiration date.2 The Agricultural Market Transition Act
(AMTA), Title I of the FAIR Act, contained commodity program provisions that
capped federal spending, ended land set-asides and target prices for most
commodities, and created a new farm income support system replacing target price
supports. Wheat, feedgrain, cotton, and rice farmers choosing to participate in this
new program were to receive fixed, gradually declining, decoupled annual payments
(so-called production flexibility contract (PFC) payments, sometimes called AMTA
payments).3 These were provided each year in lump sums, irrespective of market
prices or farmers’ planting decisions. The expectation was that over time the amount
of AMTA payments would decline and end completely after 2002, by which time
farmers would have adjusted to a free market, and would receive payments only
under the capped marketing loan assistance program.
Opponents of this gradual phase-out of federal assistance worried about what
would happen if prices and markets declined, as began to happen in late 1997 and
early 1998. Proponents pointed out that farmers getting PFC/AMTA payments in
good economic times would be able to put them away for a rainy day to soften the
impact of losses during low price periods. This point also was made in response to
those who objected to giving farmers payments when prices were high (as they were
in 1996) and economic conditions were good. Moreover, bill promoters pointed out
that there was still counter-cyclical income relief in the form of the marketing loan
assistance program, although it was capped.
When the 1996 farm bill was enacted, prices for most major commodities were
at record highs; demand was high and growing, and commodity supplies were tight.
By 1998, however, conditions in the farm economy had deteriorated. Demand for
many major commodities began to decline as a financial crisis hit Asia and Latin
America (two of the fastest growth markets for U.S. goods). Moreover, several
years of good worldwide growing conditions had increased supplies, and the value
of the American dollar was high relative to other countries, making U.S. goods
expensive compared to competitors. Farm income began to decline and the Congress
stepped in. The concept of self-sufficiency and independence from federal farm
programs eroded as the Congress approved, and the President signed seven
emergency farm aid bills in 1999, 2000, and 2001. These adhoc “emergency”
spending measures provided some $33 billion to agriculture (primarily to wheat,
feedgrain, oilseed, cotton and rice farmers). This assistance helped to stabilize farm
income for those receiving payments (primarily wheat, feedgrain, cotton and rice
farmers) It also helped to keep average farm family income higher than the national
average for all U.S. households.
2 The transition in 1994 from Democratic to Republican control of the House and Senate
and a new congressional agenda and leaders, delayed completion of a new farm in 1995. The
Congress extended the expiring provisions of the 1990 law (P.L. 104-624) for an additional
year until another farm law could be enacted in 1996. Many of the key policy changes made
by the 1996 law were authorized through 2002.
3 Payment levels were “decoupled” from target prices and production, which, in the past,
were used to make payments to farmers when market prices fell below specified targets.

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

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

CRS-6
introduced on November 2 by Committee Chairman Harkin. S. 1731 was adopted
by the Committee and reported to the Senate on November 27, and placed on the
legislative calendar.5 On November 30, the Senate began debate on a motion to
proceed to the consideration of S. 1731. Efforts to speed up consideration and obtain
a vote for final passage on this measure prior to the end of the first session were
unsuccessful.6 Several substitute amendments or alternatives to the Committee bill
were offered during debate in the first session. Among these was the Daschle
Amendment (S.Amdt. 2471), substituting for the Committee-reported bill. Offered
on December 11, it was the pending vehicle at the end of the first session.
Several substitutes to the Daschle substitute were offered and tabled (i.e.,
effectively rejected) in the first session. The rejected alternatives included:
! An amendment offered by Senator Lugar (S.Amdt. 2473) that would
have replaced and completely revised the commodity provisions of
the Daschle substitute and substantially increased spending for
nutrition programs7;
! A substitute amendment offered by Senators Roberts and Cochran
(S.Amdt. 2671) that would have modified the Daschle substitute to
reflect some of the concerns expressed by the Administration
(discussed previously), and
! A substitute amendment (S.Admt. 2678) by Senator Hutchinson
(Ark.) offering the House-passed farm bill (H.R. 2646) as a
substitute.
Early in the second session of the 107th Congress, debate was renewed over the
Senate farm bill (Daschle Substitute Amendment S.Amdt. 2471). On February 13,
2002, a substantially revised bill was approved by the Senate. This version,
renumbered as the Senate amendment to H.R. 2646, reflected some 31 amendments,
one of which, the so-called Managers’ Amendment (S.Amdt. 2859), was 397 pages
(longer than the entire House bill of 379 pages). Among the more controversial of
the many floor amendments agreed to was one that lowered limits or caps on farm
payments, and used the savings to increase spending for nutrition programs in ways
similar to those proposed by the previously rejected Lugar amendment. Less
controversial amendments added livestock feed assistance, another $2.4 billion in
5 The Committee filed a written report on S. 1731 on December 7, 2001 (H.Rept. 107-117)
6 Several efforts to invoke cloture in order to cut off debate on this legislation failed. The
first (a test vote on the motion to proceed to consideration) failed by a vote of 73-26.
Subsequent cloture votes failed by lesser votes - 53-45 and 54-43.
7 The Lugar proposal would have established, in lieu of the Senate bill’s target price and
income support provisions, a “whole-farm” income insurance program, available to all crop
and livestock farmers (i.e. livestock and fruit and vegetable growers not now receiving direct
payments). It would have provided for a federal payment equaling 6% of a farm’s receipts
that could be used to pay insurance premiums for guarantees of 80% of average income for
farmers. A pilot project testing this approach in a limited number of states was authorized
in the finally-approved Senate bill.

CRS-7
additional “emergency” farm assistance for FY20028, and a myriad of new
conservation, rural development, research, and animal health and welfare provisions.
One formal and several informal meetings of House-Senate conferees 9and staff
took place prior to the spring recess. Resolution of the differences was not reached
before Congress left for the Easter and Passover holidays. However, press accounts
reported that at that time there was a tentative agreement on the amounts of new
funding to add to the major farm bill titles ($46 billion for commodity programs;
$17.1 billion for conservation programs; $6.4 billion for nutrition programs; $3.3.
billion for remaining titles — research, rural development, forestry, farm credit,
trade, etc.; and a $2.6 billion “cushion fund.” ) Assuming some $1.9 billion in crop
insurance program savings, this informal agreement kept total new spending in line
with the budget resolution allowance ($73.5 billion), according to press reports. The
amounts reportedly allocated by title were not officially substantiated, and whatever
agreement was reached at that time was subject to subsequent change when the
conferees resumed conference deliberations after the spring recess.
Staff meetings during the recess worked out minor, noncontroversial differences
between the bills, and developed options or alternative proposals that the members
might consider to resolve major differences when conference negotiations resumed.
The Conference Committee formally reconvened on April 9, 2002, and many
minor differences were quickly resolved. Less easy to resolve were differences over
how spending was to be allocated among the various titles, the marketing loan rates
and eligibility requirement, the pace of new spending, limits on farm payments, new
dairy policy, and meat packer concentration. Pressure to complete action came from
policy analysts who suggested that a new bill would have to be enacted quickly if its
policies were to apply to crop year 2002 production. There also was pressure from
political analysts closely watching contested elections in key agriculture states. They
predicted that the outcome of the farm bill debate could determine the outcome of the
mid-term elections and party control of the House and Senate, and that the legislation
could become more expensive in light of the election year timing.10 As time passed
without legislation, the USDA began to be pressured to publish the 2002 loan rates.
This was resisted by the Administration and others, who recognized the political
unacceptability of the existing law rates and the likely election year repercussions,
as well as the possibility that putting out the rates might delay congressional action
on a new law. Another pressure point came when a multi-billion dollar farm aid bill
for FY2002 was introduced by Senator Roberts (S. 2040) in case a new farm bill was
not enacted in time for the 2002 crops.
8 Funding designated as “emergency” does not require budget offsets.
9 Senate conferees were Senators Harkin (Iowa), Leahy (Vt.), Conrad (N.D.), Daschle
(S.D.), Lugar (Ind.), Helms (N.C.), and Cochran (Miss). House conferees were
Representatives Combest (Texas), Boehner (Ohio), Goodlatte (Va.), Pombo (Calif.), Everett
(Ala.) Lucas (Okla.), Chambliss (Ga.), Moran (Kansas), Stenholm (Texas), Condit (Calif.),
Peterson (Minn.), Dooley (Calif.), Clayton (N.C.) and Holden (Pa.).
10 Typically, farm bills are scheduled to expire in off-election (or odd) years in order to
avoid the pressure of election politics. This was not the case with the 1996 farm law and this
year’s bill, although in both cases, there were efforts to get legislation approved a year early.

CRS-8
In late April, after several weeks of negotiations, the House-Senate conferees
reached a conference agreement. The House approved the Conference Report (107-
424) on this bill on May 2. The Senate approved it on May 8, and the President
signed it on May 13 (P.L.107-171). Titled the Farm Security and Rural Investment
Act of 2002, the new law provides for $73.5 billion in new spending for food and
agriculture programs, based on 2001 baseline estimates by CBO. 11 Using 2002
baseline estimates, CBO subsequently projected that budget authority added by the
new law would total $82.8 billion over ten years, bringing overall total spending for
these programs to $451 billion over the next ten years. More recent program cost
estimates, based on higher than expected commodity prices, suggest that the cost
might be lower.
Narrative Comparison: Summary
Although the House and Senate proposed farm bills varied from one another in
many respects, there were common features to both. First, although farm commodity
support was the main focus of each bill and generally got the most attention, the
measures proposed and finally approved contained much more than farm commodity
provisions. Other titles addressed conservation, trade, nutrition programs, credit,
rural development, research, and forestry. Moreover, both bills and the final law
restored some provisions struck by earlier law (e.g. federal target prices; the wool,
mohair, and honey programs) and added new programs (e.g. countercyclical
payments and payments for dairy and pulse crops).12 The two chambers’ bills also
substantially increased funding for farm commodity programs, but differed over how
much of the increased funding should go for each of the payment vehicles (i.e., fixed
payments, marketing loan assistance, or countercyclical income support).
The House-passed farm bill had a 10-year life span; the Senate bill authorized
its programs for 5 years. The time span in the House bill related to provisions in the
FY2002 Congressional Budget Resolution (H.Con.Res. 83) that provided room for
some $73.5 billion in additional spending over the period 2002-2011 for a new farm
bill. The Senate 5-year authorization reflected a more traditional time-frame for
multi-year farm bills. The Conferees agreed to a six year farm bill.
Both bills proposed changes that utilized the $73.5 billion in increased funding
allowed by the budget resolution, although the Senate bill was re-estimated to spend
$6.1 billion more than that amount when CBO discovered in early March 2002 that
it had made an estimating error in its original calculations. The Senate measure also
used up its 10-year funding total more quickly than did the House, and added another
$2.45 billion in farm aid for FY2002, although this cost was not counted because it
11 March 2002 CBO estimates (using updated baseline from April 2001) calculate that the
new budget authority added by the Farm law will total $82.8 billion.
12 The Federal Agriculture Improvement and Reform (FAIR) Act of 1996, P.L. 104-127,
was amended several times to extend the planned expiration date for the dairy price support
program. Congress also temporarily restored federal aid for the honey, wool and mohair
programs as part of several “emergency” funding packages enacted to shore up farm income.

CRS-9
was designated as “emergency” spending. The conferees agreed to a more measured
pace of new spending than the Senate bill, and dropped the additional “emergency”
spending. The $73.5 billion mark allowed for new spending was met by the
conference agreement (although subsequent updated cost projections by the CBO
now estimate over $82 billion in new costs).
The House and Senate bills also continued a trend toward increasing federal
support for a broader array of conservation efforts and expanding payments to
farmers who engage in environmentally sensitive farming practices, although the
Senate provisions were more generous in this regard (+ $21.3 billion compared to
$15.7 billion in the House bill). The conferees agreed to split the difference,
increasing conservation funding by $17.1 billion over ten years.
The Senate bill also provided significantly more funding for domestic food
programs (+$9.3 billion) than the House (+$3.7 billion), with much of the difference
related to Senate provisions restoring food stamp eligibility to certain legal aliens.
Both bills also made changes to the food stamp program to assist states in
conforming program rules to those of other welfare programs and increase
commodity donations to domestic food programs. The conference agreement
adopted the Senate proposals regarding legal alien eligibility for food stamps. This
brought new10-year funding increases estimated at $6.4 billion for this program and
several commodity distribution programs, according to CBO, 2001 baseline
estimates. The Senate bill also contained extensive energy (ethanol) provisions that
were not in the House version. Some of these remained in the final version. Finally,
the Senate bill was more generous than the House with respect to funding for
research and rural development. In the end, funding increases for both of these
categories were reduced to shore up spending for farm commodity and food
assistance programs.
Some of these and other significant differences between the bills are described
in more detail below.
Spending. The FY2002 Congressional Budget Resolution (H.Con.Res. 83)
adopted in 2001 made room for additional agriculture spending of $5.5 billion for
FY2001, $7.35 billion in FY2002, and $66.15 billion over the following nine years
for food and agriculture programs. This provided for a total of $73.5 billion in new
budget authority for FY2002-2011above baseline spending. The expectation was that
this new money would be used to finance new policies and that most of it would go
for farm commodity programs, although this was not required. FY2001 money was
spent for emergency assistance. The allowable spending for FY2002 and beyond was
intended either for emergency farm assistance or a new farm bill.13
Both the House and Senate bills originally were estimated by CBO to cost $73.5
billion over the 10-year period, FY2002-2011. This included funding for farm
13 As noted above, the Senate approved a floor amendment to its farm bill that adds $2.4
billion in “emergency” farm assistance. A waiver to the budget rules requiring offsets of
additional spending for “emergency” reasons was approved by a voice vote so that this
additional spending is not counted against the Senate farm bill for FY2002.

CRS-10
commodity programs as well as nutrition programs, trade, research, conservation, and
rural development, among other things. It did not reflect the additional $2.45 billion
in farm “emergency” assistance for FY2002 that the Senate added to its bill.14 It also
did not reflect some $6.1 billion in higher costs that the CBO later said were left out
of earlier Senate bill projections of commodity program costs because of an error in
the original calculations. The revised estimates brought new spending in the Senate-
passed bill to a total of $79.6 billion. The final conference agreement brought
additional 10-year spending back to the $73.5 billion total allowed by the budget
resolution, based on 2001 baseline estimates. When CBO re-estimated baseline
spending in March 2002, the total new spending provided by the new farm bill rose
to $82.8 billion.
The additional funding in the new farm bill, when added to April 2002 baseline
estimates (i.e. spending estimated without any change in previous law), will bring
total spending for all of the programs in the farm bill to $273.9 billion over the next
six years (the life of the bill), according to CBO estimates. This represents an
estimated $222.2 billion in baseline spending and $51.7 billion in new spending.
Of the 6-year total spending (baseline plus increases), CBO estimated that the
new law will provide:

! $98.9 billion for commodity support programs;
! $21.3 billion for conservation;
! $149.6 billion for nutrition programs, mostly food stamps;
! $2.1 billion for agricultural trade;
! $1 billion for rural development;
! $760 million for research;
! $405 million for energy related provisions, and
! $85 million for forestry
Commodity Programs. Under both the House and Senate bills, well over
half of the new spending would have gone for commodity programs — $48.8 billion
under the House bill and $46 billion under the Senate bill.15 However, the bills
differed with respect to how much of this commodity program spending should go
for fixed annual “contract” payments, new counter-cyclical income relief, or higher
marketing loan assistance (i.e., loan deficiency payments).
Based on 2002 baseline estimates, the House bill would have added an
estimated $25.1 billion to commodity program budget authority over 5 years, and
$48.8 billion over 10 years ($7.7 billion more than the originally estimated Senate
bill). Initial estimates for the Senate farm bill showed it raising total commodity
program spending (Title I) by $26.8 billion over five years and by $41.1 billion over
14 A voice vote to waive this additional funding as “emergency” assistance was approved
by the Senate as part of an amendment (S.Amdt. 2839; this designation means that the
additional funding does not require offsets in spending elsewhere to conform to budget
rules.
15 This amount assumes the $38.9 billion originally estimated by CBO plus the $6.1 billion
CBO has indicated it underestimated for the cost of the commodity provisions in that bill.

CRS-11
ten years. Adjusting for the $6.1 billion calculating error by CBO, the Senate farm
bill’s commodity program costs would have risen by $30.5 billion (over five years)
and just under $46 billion over 10 years. This does not count the additional $2.4
billion in FY2002 “emergency” farm assistance the Senate added since this was
designated “emergency spending” and not subject to budget offsetting rules for new
spending.
The final law (Conference agreement) increased spending for commodity
programs by a total of $25.6 billion and $47.8 billion, respectively, over five and ten
years — more than the 10-year added cost of the Senate bill commodity provisions
($46.1 billion), and slightly less than the House bill ($47.97 billion). Based on new
(2002) baseline estimates for the six-year life span of the new law, CBO projected
that the government would spend $37.6 billion more for commodity programs under
the new farm bill. This represented 73% of the new funding for all of the titles of the
new farm law. Total spending for farm commodity programs (i.e., baseline plus new
spending) will be $98.9 billion over 6 years, according to CBO estimates, and
represents 36% of spending for all of the programs in the new farm law.
The House and Senate proposed about the same amount of new funding ($12.7-
$12.9 billion) for fixed (formerly called “contract,” ) payments to “program” farmers
(i.e., wheat, feedgrain, cotton, rice, and oilseed farmers). The conferees agreed to
less than was proposed by the House and Senate bills ($9.9 billion) for fixed
payments. The new counter-cyclical program proposed in the House bill was
projected to cost $37.2 billion over ten years; the Senate’s counterpart was less
generous ( $19.1 billion). The conferees more or less split the difference, agreeing
to new spending of $29.4 billion for counter-cyclical income support. More
extensive differences were in each chamber’s marketing loan assistance provisions.
The Senate bill would have added to marketing loan assistance, proposing changes
that would have increased spending by $18.7 billion over ten years. The House, on
the other hand, proposed to reduce spending for marketing loan payments by some
$5.8 billion over ten years. The conferees agreed to an increase of $2.2 billion in
marketing loan assistance over ten years.

Nutrition Programs. The Senate proposed to raise spending for nutrition
programs (primarily, the food stamp program) by $9.3 billion over 10 years,
compared to an increase of $3.7 billion for these programs in the House bill. The
conferees compromised on a 10-year spending increase of $6.4 billion for these
programs (9% of all new spending in the bill), and adopted the Senate proposal to
restore food stamp eligibility to many legal aliens cut off by the 1996 welfare reform
law. Under the six-year life span of this legislation, nutrition programs are projected
by CBO to cost a total of $149.6 billion. This includes an increase of $2.8 billion
(1.9% in funding) over the 6-year period.
The large funding increases for nutrition programs in the Senate bill were
derived, in part, from savings in commodity program spending due to a provision that
would have substantially lowered the limit on commodity payments to farmers.
According to CBO estimates, the payment limit reduction in the Senate bill would
have lowered commodity program spending by $695 million over 10 years. [The
payment limit is discussed in more detail later in this report in the selected issues
section.]

CRS-12
Selected Conference Issues
Commodity Programs
Program Crops. Both the House and Senate bills maintained the system of
fixed annual payments to wheat, feedgrain, cotton and rice farmers that replaced
target price supports in 1996. Both bills also added soybeans and peanuts to the crops
that are eligible for these fixed payments. The House bill provided more funding for
contract payments than did the Senate. Both bills also maintained marketing loan
assistance (adding peanuts, as well), but the House bill set loan rates at, or slightly
below, those set by previous law, thus reducing spending for this program by $5.8
billion over 10 years, according to CBO. The Senate substantially raised these rates,
adding some $18.3 billion for marketing loan assistance. Both bills added a new
program of counter-cyclical income support (which also included peanuts). In sum,
the House approach tended to rely more heavily on fixed annual payments and
greater levels of counter-cyclical income support than the Senate, which put more of
its new funding into substantially raising marketing loan assistance. In overall
spending for commodity programs, the conferees agreed to spend just under $48
billion over ten years, coming closer to the House mark ($48.7 billion) than the
Senate ($46 billion). The conference agreement approved 10-year funding increases
among the three commodity programs as follows:
! $9.9 billion in fixed payments (less than both House and
Senate bills);
! $29.4 billion for counter-cyclical income support (
versus $37 billion in the House bill and $19 billion in
the Senate bill); and
! $1.7 billion in marketing loan assistance (the House bill
would have reduced this assistance by $5.8 billion; the
Senate bill would have added $18.3 billion in new
spending).
Both bills maintained the 1996 policy changes that provide broad planting
flexibility to farmers and remove annual cropland set-aside tools formerly used to
reduce surplus production and/or control federal farm spending. To protect the
interests of fruit and vegetable producers (who do not receive federal subsidies and
who worried that some of the subsidized crop producers might plant these alternative
crops as well as their subsidized program crops) both the House and Senate bills
maintained the planting restriction on most fruits and vegetables by program farmers.
Although some farm groups supported the types of production controls in place
before the 1996 law, most did not, and these were not restored under the new farm
law.
Another commodity proposal was tested by a Senate bill provision that added
pulse crops (dried peas, lentils, chickpeas) to the mix of commodities eligible for
marketing loan assistance. Proponents contended that these crops should receive the

CRS-13
same benefits as other field crops and that this would encourage production and
greater rotation of other crops (e.g., wheat and feedgrains). Objection to this came
from some who saw the addition of new crops as moving in the wrong direction, that
is, expanding federal support and market interference in farm policy. Provisions in
both bills added soybean eligibility for fixed payments and countercyclical income
support; restored previously discontinued farm support payments for honey and
wool (the Senate bill also added mohair), and added new direct payment programs
for peanuts and fluid milk. The conferees adopted provisions adding most pulse
crops, soybeans, peanuts, honey, wool and mohair to the list of commodities eligible
for direct farm payments.
Peanuts. Both bills terminated the peanut poundage quotas and nonrecourse
loans and created a compensation plan for peanut quota holders, set at a much lower
loan rate, and, as noted above, made peanut producers eligible for marketing loan
assistance and fixed and counter-cyclical payments. The end of the quota program,
despite the generous buy-out provisions ($220/ton/year for five years) in the
conference agreement, drew objections from some in certain peanut producing
districts. Among the concerns expressed were the impact of this on small growers
and on those retired farmers and/or spouses who relied on leasing quota for their
income. Despite these objections, the quota buyout (in both bills) was agreed to by
the conferees.
Dairy. Disagreement about the extension, or reauthorization of the expired
Northeast Dairy Compact and its possible expansion to other regions of the country
split along regional lines. The House farm bill did not extend the Northeast (NE)
Dairy Compact (which expired September 30, 2001). Efforts to include an extension
of this compact in S. 1731 threatened to delay or stop deliberations in the Senate and
a compromise proposal was included in the final Senate bill. This would have
replaced the NE Dairy Compact with a new counter-cyclical payment program for
dairy farmers in all states, with one quarter of the $2 billion in funding allotted going
to Northeast states. The earmark of funds for the Northeast was intended to offset
the loss of the higher farm milk prices permitted by the defunct Compact in that
region. The conferees agreed to a revised counter-cyclical payment program for dairy
farmers, without the set-a-side for Northeast farmers. Instead of earmarking $500
million of its $2 billion cost for Northeast states as in the Senate bill, the Conference
agreement will make payments to all dairy farmers whenever the monthly price of
fluid farm milk in Boston falls below $6.94. The payments will be available on up
to 2.4 million pounds of annual production, thus targeting benefits to small and mid-
sized operations. This compromise was crafted largely by Northeast legislators
representing generally small dairy operations. It, as well as earlier efforts to extend
the NE Dairy Compact, was opposed by many from the Midwest, who regard this
as a support system that will continue to encourage price-depressing overproduction,
and continue an unwise policy that favors regions with small producers to the
detriment of mid-western, and western producers. Those favoring countercyclical
income assistance contend that it will benefit all farmers by reducing the impact of
volatile prices, and that it will be available to all dairy farmers, not just those in one
region. Some, however, are concerned about the budget implications of a new
“uncontrollable” farm support program and its implications for U.S. efforts to get
European and other trading competitors to reduce their domestic support programs.

CRS-14
Farm Payment Limits. Current law limits on payments to farmers were
revised and applied to new programs under both the House and Senate farm bills.
The Senate limitations, which were more stringent than those in the House bill, were
opposed by many farm groups.
Proponents of lowering the payment cap contend
that farm programs benefit most (in terms of federal dollars) those who need aid the
least (i.e., larger, wealthier farmers), while smaller, high-risk farmers or those
ineligible for direct payments (such as fruit, vegetable, and livestock producers) get
little or nothing. They also charge that the current system encourages the growth of
large corporate farms and helps to drive small and mid-sized farms out of business.
Some also assert that “excessive” payments undermine the credibility of and popular
support for a farm policy that purports to be designed to help small and mid-sized
farmers. Opponents of payment limits (which include nearly all of the farm
commodity groups) contend that farm policy should be based on productivity and
efficiency and that payment limits discourage both. They suggest that basing farm
payments on income or need would mean rewarding many farmers who are
inefficient or unwise in their farm management, and would discourage farmers from
making profitable efficiencies. Moreover, they point out that many of the farms
receiving large payments also have similarly large costs of production and might not
operate as efficiently or productively if federal support was not tied in some way to
output.
The farm payment limits first imposed in 1970 generally have been high enough
so that they rarely resulted in any cut-off of farm payments. Moreover, mechanisms
for getting around the caps have been available. In the late 1990s, however, when it
appeared that loan deficiency payments to some farmers might exceed the limits then
in place, Congress doubled the limit on these payments. 16 The doubled levels have
been operable for the past several years. A list of farmer payments released by the
Environmental Working Group (EWG) rejuvenated interest in the farm payment
limit issue. The EWG data show a large proportion of federal farm payments,
sometimes in very large amounts, going to small numbers of large farms and also to
some wealthy absentee landlords. This study was widely reported by the media and
reportedly influenced proposals for the more stringent payment limits that were
added to the Senate farm bill during floor debate.17
The House bill raised the current law overall limit on commodity program
payments from a total of some $460,000 per year, per farmer, to $550,000, but did
not apply this limit to the value of commodity certificates.18 It also provided a
16 From $75,000 to $150,000. This followed substantial increases in farm spending enacted
under several multi-billion farm “emergency” aid packages.
17 New York Times, May 18, 2001, Farm Subsidies: Who Gets Fed? Washington Post,
January 24, 2002, More Subsidy Money Going to Fewer Farms. See also, the Environmental
Working Group Farm Subsidy Database at www.ewg.org
18 The previous law amount reflects the total allowance, including additional amounts
provided by emergency market loss payments in previous years, and allowances for the
three-entity rule and spouses. The amount shown reflects the fixed contract payment limit
of $40,000 set by the 1996 farm law, plus an additional $40,000 cap for emergency market
loss payments for a total of $80,000. To this is added the $150,000 limit on marketing loan
(continued...)

CRS-15
separate payment limit for peanuts. The Senate bill lowered the current law payment
limit to $275,000 for all crops (including peanuts and other newly covered crops) and
included the value of marketing certificates under this limit. Under the House and
Senate proposals the limits would have worked as follows:
! Fixed payments and counter-cyclical payments. The House bill
set a maximum of $50,000 per farmer per year for fixed “contract”
payments, and $75,000 per farmer per year for newly created
counter-cyclical payments for regular program crops (grains, cotton,
rice, oilseeds). Thus, the House bill set the payment cap for both
these programs at $125,000. A separate $75,000 limit for counter-
cyclical payments applied to the new peanut program. The Senate
bill set a combined maximum per person payment of $75,000 for
both fixed payments and counter-cyclical payments, and applied this
limit to all eligible crops, including the newly eligible peanuts.
! Marketing Loan Payments. Under the House bill, marketing loan
assistance would have been capped at $150,000 for wheat,
feedgrains, oilseeds, cotton and rice, and there would have been
separate payment limits of $150,000 for each of the peanut, honey,
wool, and mohair programs.19 The Senate bill establishes one limit
of $150,000 in marketing loan benefits for all of the eligible
commodities (wheat, feedgrains, oilseeds, cotton, rice, honey, wool,
lentils, dry peas, and chick peas)20. It also applied this limit to the
value of commodity certificates and loan forfeitures which, under
previous law and the House bill, are not counted toward the payment
limits.
! Three-entity Rule and Spouse Allowance. The House bill
maintained the former law three-entity rule and spouse allowance.
These permit a spouse to qualify for payments, and permit additional
payments for up to two additional farms (at half the first farm cap).
In effect, the House bill allows for an additional $275,000 in
commodity program payments for a qualifying farmer. The Senate
bill maintains the spouse benefit, capped at $50,000, but eliminates
the separate payment cap for additional farms. Under the Senate bill,
all payments to an individual farmer, regardless of the number of
farms, are counted toward the $225,000 payment limit.
18 (...continued)
benefits (doubled from 1996 farm law by subsequent congressional actions) and the three-
entity rule and spouse allowance which is capped at a total of $230,000 (or half the payment
allowance) for a maximum of $460,000 per farmer. (See CRS report RS21138 for more
information on payment limits.)
19 The 1996 farm bill set $75,000 as payment limit for LDPs, but this was doubled by
subsequent legislation when the cap would have cut some farmers off payments at that level.
20 The Senate bill does not contain assistance for mohair.

CRS-16
! Wealthy Individuals. The Senate bill contains language that would
prohibit those with adjusted gross incomes above $2.5 million
annually from receiving any farm payments. This provision was
intended to counter media and other critics who often point to
receipt of farm payments by wealthy public figures (e.g.,
professional athletes and movie stars) as an illustration of poor farm
policies. There is no comparable provision in the House bill.21
The 10-year savings from the Senate payment limit provision, which was used
by the Senate bill to help fund a food stamp program expansion, was estimated by the
CBO at $784 million ($454 million over 5 years).22 Most analysts predicted that the
impact of the Senate payment limit would have been the greatest for large rice and
cotton farmers whose federal payments generally tend to be larger than those
producing other field crops. The conference agreement to allow unlimited gains from
commodity certificates helped to reach a compromise on payment limits. The
conference agreement included:
(1) new payment caps that will apply to the 2003 crops (not 2002 crops);
(2) fixed payments that will be capped at $40,000;
(3) counter-cyclical payments limited to $65,000;
(4) marketing loans capped at $75,000 per farmer per year;
(5) allowance for payments for up to two additional farms and spouses;
(6) no limits on the value of commodity certificates; and
(7) a prohibition on farm payments if a person’s gross income (from non-farm
income) exceeds $2.5 million annually.
[For more detailed information on this topic and the crops it would affect, see CRS
Report RS21138, Farm Commodity Payment Limits: Comparison of Proposal]
Federal Budget and Trade Agreements
The return of deficit spending or at least substantially depleted budget surpluses
because of the War on Terrorism and an economic slowdown, raised questions about
how much funding would be available for changes in farm policy by the time
Congress approved legislation. There was some concern about whether the
additional money agreed to in the past budget resolution ($73.5 billion) would be
honored if a farm bill was not passed before the next budget resolution (May 2002).
Both the Administration and congressional leaders indicated their intention to honor
the additional money provided for farm policy changes that was allowed by last
year’s congressional budget resolution — some $73.5 billion in additional funding
21 The lower payment limits were added during Senate floor debate under an amendment
(S.Admt. 2826) offered by Senators Dorgan and Grassley.
22 These figures, changed from the previous report, represent the most recent CBO revisions
of Senate bill costs. Some Senate proponents of the payment limit suggest that these savings
estimates are understated because the CBO did not fully account for the savings associated
with counting the value of marketing loan writeoffs. See [http://www.agweb.com], April 10,
2002.

CRS-17
over ten years. Despite this agreement, concern about the cost of the bills remained.
Budget-conscious policymakers watching budget surpluses turn into deficits
expressed concern about the cost of the legislation, and their doubts were reinforced
when the CBO discovered that it had underestimated the cost of the Senate-passed
bill by over $6 billion. In the end, the conference agreement held to the allowed
$73.5 billion (although subsequent CBO estimates using March 2002 baselines
project that it will cost over $82 billion). More recent estimates of commodity
market prices by the USDA suggest that commodity program provisions may cost
less than originally estimated. Efforts in the 107th Congress seeking to use the savings
from the revised program costs to pay for some $6 billion to additional agriculture
spending for disaster relief. This was not approved.
The Administration was concerned that the new commodity program spending
in both the House and Senate Farm bills might exceed the $19 billion cap on
spending for market-distorting domestic farm support that the U.S. agreed to in the
Uruguay Round WTO trade agreements. To deflect this concern, both bills contained
provisions (adopted in conference) that require the Secretary of Agriculture to make
adjustments if the spending cap is breached. Some policy analysts question the
mechanics of the adjustment provisions and their practical application. Strong
criticism of the new subsidies in the farm bill has come from some of our trading
partners (particularly the EU and Japan) who are being pressured by U.S. negotiators
to substantially reduce their domestic support programs. Other criticism has come
from less developed countries and their supporters who contend that the generous
farm subsidies in the U.S. (as well as the EU and Japan) are harming economic
development and agricultural productivity in those nations.
Conservation Programs
Both the House and Senate bills increased spending on conservation programs,
as did the finally-approved version. Major points of difference between the chambers
included how much additional funding should be provided for these programs versus
farm commodity programs, what portion, if any, of the funding should be mandatory,
whether new programs or benefits should be created, and how much funding they
should receive. The Senate bill provided significantly more money (some $6 billion)
for conservation programs than the House bill. In the House, an attempt (Kind-
Boehlert Amendment) to add more spending for conservation programs by taking
away some of the new funding for commodity programs was unsuccessful. The
difference in spending between the House and Senate bills for conservation programs
was a difficult issue in the Conference Committee, and was made worse when CBO
discovered that it had underestimated the overall cost of the Senate bill by some $6
billion. The conferees compromised on the funding difference between the House
and Senate, essentially cutting the difference in half.
A Senate provision, strenuously opposed by some farm groups who feared the
potential loss of state and local control of water rights to the federal government
through farmer participation in wetlands and other conservation programs, was
dropped in conference. Environmentalists objected to the changes made to the
Senate measure. In their view, the conference agreement weakened the environmental
and conservation standards for participating in the programs. Concern also was raised
by some trading partners who fear that the environmental payments are a cover for

CRS-18
further domestic farm support. Some USDA officials also questioned the cost-
effectiveness and environmental benefits of some of the new conservation programs.
Concentration in the Livestock Sector
A livestock packers amendment offered by Senator Tim Johnson and others
was accepted during Senate floor debate. It would have prohibited meat packers
from owning or controlling livestock within 14 days of slaughter. Designed to help
protect livestock producers from price manipulation by large meat packing
companies, this amendment drew fire from some. Opposition centered on the fact
that the amendment did not apply to poultry (a strong competitor to beef and pork),
and that it might endanger the use of marketing contracts. Some believe that these
contracts help producers and processors plan and market their goods to the benefit
of both. However, there are others who see contracts (especially the confidentiality
clauses in them) as a way for processors to unfairly manipulate livestock prices to
producers to keep them low. The Senate-proposed restriction on packer ownership
was supported by the American Farm Bureau and Iowa Pork Producers Association,
two major farm interest groups. It was opposed by most meat processors and the
National Cattle and Beef Association and National Pork Producers Council. An
amendment modifying the meat packer restrictions to clarify that they did not affect
livestock under marketing contracts was adopted during Senate deliberations. The
restrictions on packer ownership were a sticking point in conference deliberations.
Several reports analyzing the proposed restrictions questioned their likelihood of
reducing concentration in the livestock sector or raising prices for producers, which
are the intended goal of this legislation. There was stiff opposition in the House to
the packer ownership restriction and it was dropped from the finally enacted law.
Predictions by economists that meat prices will remain low in 2003 make it likely
that this issue will be revisited in the 108th Congress. [For more information on this
issue, see CRS Report RL31553, Livestock: A Ban on Ownership and Control by
Packers.]
Comparison Caveats
The following table compares provisions of previous law to those in the House-
passed farm bill (H.R. 2646), the Senate-passed bill (an amendment to H.R. 2646)
and the finally enacted law (P.L. 107-171). It supercedes an earlier CRS report that
compared only the House and Senate-passed bills to then-current law. The report
is intended to identify the major differences from previous law and new law and
between the House and Senate, and to provide an historical record of the issues that
legislators grappled with as they pursued a 2002 farm bill. It is designed to assist
those interested in the major issues surrounding the various titles of the farm bill and
their resolution by the House-Senate Conferees. Although the report is quite
extensive, it does not cover every provision in the proposed farm bills and new law,
largely because of the enormous size of the various bills and final law. 23 It does,
23 The USDA Department of Agriculture (USDA) website includes comprehensive
(continued...)

CRS-19
however, cover most of the significant or controversial changes that were proposed
and those where there were major difference between each of the chambers’ bills and
previous and new law. Judgments about which provisions to include were made by
each of the CRS specialists covering the relevant title, with some modifications and
additions by the coordinator. The comparison is presented under topic headings,
using the titles of the House and Senate farm bills as the general organizing theme
(although this does not work in all cases because of the differences in the bills’
configurations, and because topically related provisions are not all in the same
sections). Funding information in this report is based on CBO estimates, unless
otherwise noted.
23 (...continued)
comparisons for programs by agency as well as comparisons by the USDA-Economic
Research Service. [http://www.USDA.gov].

CRS-20
SIDE by SIDE COMPARISON: Old Law, House and Senate Bills, New Law
I. COMMODITY PROGRAMS
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Agricultural Market Transition Act
Farm Security Act (FSA) of
Agriculture, Conservation and
The Farm Security and Rural
(AMTA), Title I of the Federal
2001, Title I, Subtitles A, B,
Rural Enhancement (ACRE) Act
Investment Act of 2002
Agriculture Improvement and Reform
and D.
of 2001, Title 1, Subtitles A and
Act of 1996, Subtitles B, C, D, and E,
B.
and miscellaneous agriculture laws.
Title:
Federal Agriculture Improvement and
Farm Security Act of 2001.
Agriculture Conservation and
The Farm Security and Rural
Reform (FAIR) Act of 1996 (P.L. 104-
[Section 1]
Rural Enhancement (ACRE) Act
Investment Act of 2002 (P.L. 107-171)
127) [ Section 101]
of 2001. [Section 1]
Definitions:
1. “Considered Planted” is defined
1. No provision
1.”Con s i d e r e d Pl an ted ” i s
1. No provision.
under the FAIR Act to mean “acreage
revised to mean any acreage
considered planted” under Title 5 of the
planted that producers were
Agricultural Act of 1949, and other
prevented from planting because
acreage the Secretary considers fair and
of a drought, flood, or other
equitable.
natural disaster or condition
This includes: (a) any reduced or diverted
beyond control of the owner or
acreage; (b) acreage that could not be
producer, as determined by the
planted because of drought, flood or other
Secretary, and any acreage not
natural disaster or condition beyond farmer
planted to another contract
control; (c) acreage equal to the difference
commodity (except for a contract
between permitted acreage for a crop and
commodity produced under an
the planted crop if it is devoted to
established practice of double
conservation uses or the production of
cropping). [Section 102]

CRS-21
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
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
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
2. No provision
Flexibility Contract” defined to mean a
contract entered into under
contract entered into under the terms of
s u b t i t l e B , N o n r e c o u r s e
Section 111 of the FAIR Act of 1996,
Marketing Assistance Loans and
which establishes fixed , annual, lump sum
Loan Deficiency Payments.
payments to farmers. [Section 102(3) of
[Section 102]
the FAIR Act]]
3 . “Contract Acreage” is defined to
3. No Provision
3. Redefines “contract acreage”
3. Uses phrase “Base Acres” and
mean one or more crop acreage bases
to mean the acreage determined
defines it with respect to a covered
established for contract commodities under
under section 111(f) of the bill,
commodity to mean the number of
Title V of the Agriculture Act of 1949 that
which refers to “direct and
acres established under section 1101
would have been in effect for the 1996
counter-cyclical payments.”
(Establishment of base acres and
crop but for the suspension of existing
(Section 102(4)]
payments acres). [Section 1001]

CRS-22
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
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”
4. “Contract Commodity” is
4. House Provision [Section 1001]
mean wheat, corn, grain sorghum, barley,
replaces “covered” for
redefined to add oilseeds to
oats, upland cotton, and rice. [Section 102]
“ c o n t r a c t ” a n d a d d s
current law. [Section 102]
soybeans, and other oilseeds
to current law . [Section
100]
5. “Contract Payment” is defined to
5. No provision
5. “ Contract Payment” is a
5. No provision
mean production flexibility contract
payment made to wheat, corn,
payments to wheat, corn, grain, barley,
grain sorghum, barley, oats,
oats, upland cotton and rice farmers
upland cotton, rice and oilseed
[Section 102]
farmers under Subtitle B,
Nonrecourse marketing assistance
loans and loan deficiency
payments. [Section 102]
6. “Counter-cyclical Payment”
6 . ” C o u n t e r - c y c l i c a l
6. No definition
6. House Provision [Section 1001]
No provision
Payment” means a payment
made to producers under
section 105, Availability of
Counter-cyclical Payments.
[Section 100]
7. “Fixed Decoupled Payment”
7. “Fixed Decoupled
7. No definition.
7. Replaces “fixed decoupled payment”
Payment” means a payment
with “direct payment.” [Section 1001]
made to producers under

section 104 Availability of

CRS-23
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Fixed Decoupled Payments.
[Section 100]
8. “Farm Program Payment Yield”
8. “Payment Yield” is the
8. “Payment Yield” means the
8. In general, “payment yield” means
means the farm program payment yield
yield established under
payment yield determined under
the yield established under section 1102
established for the 1995 crop of a contract
section 102 for a covered
Section 111(g) [Section 102]
for a farm for a covered commodity.
commodity under section 505 of the
commodity. [Section 100]
“Updated Yield” means the payment
Agriculture Act of 1949 [Section 101]
yield elected by the owner of a farm to
be used in calculating counter-cyclical
payments. [Section 1001]
9. “Loan Commodity” means each
9. No Provision
9. “Loan Commodity” means
9. Senate provision amended to
contract commodity, extra long staple
wheat, corn, grain, sorghum,
substitute “soybeans and other oilseeds”
cotton and oilseed. [Section 102]
barley, oats, upland cotton, estra
for “oilseeds,” specify “small
long staple cotton, rise, oilseeds,
chickpeas,” and add “mohair.”
wool, honey, dry peas, lentils and
[Section 1001]
chick peas. [Section 102]
10. “Target price”
10. “Target Price”means
10. No provision
10. House definition. [Section 1001]
No provision
the price per bushel (or other
NOTE: Eliminated for most field
appropriate unit) of a
commodities by the AMTA of 1996.
covered commodity used to
determine the payment rate
f o r c o u n t e r - c y c l i c a l
payments.[Section 100]
A. Wheat, Corn Grain Sorghum, Barley, Oats, Upland Cotton, Rice, Soybeans and other Oilseeds.
1. General
a.. Sign-up period is required to begin not
Establishes a sign-up period,
Establishes a sign-up period, that
USDA is to provide notice to farmers,
later than 45 days after enactment and end
lasting not more than 180
begins not less 45 days after
as soon as practical after enactment, of

CRS-24
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
August 1, 1996. Production flexibility
days after enactment, during
enactment and lasts for 180 days,
the opportunity to sign agreements and
contracts (PFCs) cover 7 years, 1996 thru
which producers sign
during which producers sign
establish base acres for direct and
2002 crops. [Section 112]
“agreements” covering crop
“contracts” covering crop years
counter-cyclical payments. [Section
years 2002 thru 2011 (10
2002 thru 2006 (5 years).
1101]
years). [Section 110]
[Section 111]
b.) Base Acres and Payment Acres
Each farm’s base acres and payment yields
The base acres for each crop
Same as House bill. [Section
Same as House and Senate bills.
are used to calculate the program benefits
are either the acres specified
111]
[Section 1101]
to the producer. The base acres and yields
in existing PFC contracts, or
for eligible crops are those that would have
average acres planted to
applied in 1996 under the then expiring
eligible crops from 1998 thru
program. Under the expiring program, the
2001. Accommodation is
“acreage base” for each program crop is
made for double cropping,
the average acres planted/considered
peanut acres, and CRP acres.
planted the prior 5 years for wheat, feed
Base acres cannot exceed
grains and the prior 3 years for upland
total cropland on a farm.
cotton, rice.[Sections 111 and 112]
[Section 103]
Payment acres equal 85% of
Payment acres equal 100% of
Same as House bill. [Section 1101(f)]
base acres in calculating
base acres in calculating payment
payment amounts. [Section
amounts. [Section 111]
100(9) and 103(f)]
c.) Payment Yield
Program payment yields for each crop are
Program payment yield for
Program payment yield is either:
Similar to House bill. Payment yield is
frozen at 1986 program levels. [Section
each crop is the: payment
the yield specified in existing
the yield established for the 1995 crop.
102]
yield in effect for 2002 under
contracts, or average yield from
Oilseed payment yield is the average
an existing production
1998 thru 2001. There is no
yield from 1998-01, adjusted back to
Note: Soybeans and other oilseeds are not
flexibility contract; or a
requirement to adjust yields back
the national average from 1981-85.
eligible crops and there are no provisions
similarly appropriate yield
to an 1981-85 equivalent.
Yields for counter-cyclical payments

CRS-25
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
for establishing base acres and yields for
for farms without past
[Section 111]
may be updated using
specified
oilseeds.
contracts. Oilseed yield is
formulas. [Section 1102]
the average yield from 1998-
01, adjusted back to a 1981-
85 equivalent. [Section 102]
d) Producer Contract (Agreement)
(1.) Requirements.
Eligible producers must sign a contract
Producers must agree during
Same as old law. Producers sign
Same as House bill. [Section 1105]
that includes specific requirements in order
each crop year to certain
contracts. [Section 111 ]
to receive payments. [Section 111]
requirements in order to
receive fixed, decoupled
direct payments and counter-
cyclical payments. [Section
106]
a.) Conservation and Wetlands
Compliance
Producers are required to comply with
Same as old law. [Section
Same as old law. [Section 111]
Same House and Senate bills and old
already existing conservation requirements
106]
law. [Section 1105(1)(A) and (B)]
on highly erodible land and with already
existing prohibitions on draining wetlands
for purposes of crop production. These
compliance requirements do not impose
any new obligations on producers.
[Section 111]
b.) Planting Flexibility and
Limitations
Farmers are allowed to plant any crop
Same planting flexibility
S a m e p l a n t i n g f l e x i b i l i t y
Same as House bill, except allows that

CRS-26
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
except fruits and vegetables (other than
allowance as old law, but
allowance as old law, but wild
if prohibited crops are planted they may
lentils, mung beans, and dry peas) on
wild rice is added to
rice is added to exceptions
be destroyed before harvest, and
contract acreage and there are no planting
exceptions. [Section 107]
beginning in 2003. [Section 113]
planting trees or other perennial crop
restrictions on non-contract acreage.
producing plants is prohibited on base
Cropland not planted has to be devoted to
acres. [Section 1106]
a conserving use to prevent erosion and
can not be converted to non-agricultural
uses. [Section 118]
Violations of planting flexibility
No provision.
For first time unintentional
Same as House bill.
limitations generally result in termination
violations of planting flexibility
of the contract on each farm in which the
limitations, the penalty shall be a
producer has an interest. [Section 116]
refund or reduction of future
payments amounting to twice the
payment amount on the involved
acres. [Section 112]
c.) Change in Farm Ownership
or Operator
Contract obligations can be assumed by
Same as old law. [Section
Same as House bill. [Section
Same as old law, and House and Senate
new owners. Otherwise the contract is
106(c)]
111]
bills. [Section 1105(b)]
terminated. Changing operators does not
affect program acres or yields. [Section
117]

CRS-27
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
2. Direct Fixed, Decoupled Payments
a.) Eligibility.
Eligibility for PFC contracts is extended to
Farms with existing PFC
Same as House bill. [Section
Same as House and Senate bills except
producers previously enrolled in a grain or
c o n t r a c t s , a n d o t h e r
111]
that these crops are to be known as
cotton program in at least 1 of the 1991-95
producers with a history of
“covered crops.” [Section 1103]
crop years. Conservation Reserve
contract crop or oilseed
Program cropland expiring or terminated
production from 1998-01 are
after Jan. 1, 1995 is eligible. Soybeans
eligible for fixed, decoupled
and other oilseeds are not eligible PFC
payments on their base acres
commodities. [Section 111]
and yields. Soybeans and
other oilseeds also are made
eligible. These crops are to
be known as “agreement
crops.” Provision is made
for expiring CRP acres to be
added to the agreements.
[Section 101(a) and 103(a)]
b.) Payment Rates.
Farmers who sign production flexibility
Similar framework to old
Similar framework to old law.
Same as House bill. [Section 1105]
contracts (PFCs) in 1996 receive fixed
law. Farmers who sign
Farmers who sign contracts
annual payments for 7 years, unrelated to
“agreements” receive direct
receive fixed, decoupled annual
crops or acreage actually planted. The
fixed, decoupled annual
payments, unrelated to crops or
payment quantity for each commodity is
payments, unrelated to crops
acreage actually planted. The
85% of the contract acreage times the
or acreage actually planted.
payment quantity for each
payment yield times the payment rate.
The payment amount for
commodity is 100% of payment
[Section 114]
each commodity is payment
acres times the payment yield
acres (85% of base acres)
times the payment rate.
times the payment yield
times the payment rate.

CRS-28
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Estimated 2002 contract payment rates:
Payment rates are specified
Payment rates are specified for
Payment rates differ slightly from
for all years as follows:
2002/03, 2004/05, 2006 as
House bill as follows:
follows:
Wheat, $0.46/bu
Wheat, $0.53/bu
Wheat, $0.45, $0.225, $0.113/bu
Wheat, $0.52/bu
Corn, $0.26/bu
Corn, $0.30/bu
Corn, $0.27, $0.135, $0.068/bu
Corn, $0.28/bu
Sorghum, $0.31/bu
Sorghum, $0.36/bu
Sorghum, $0.31/$0.27, $0.135,
Sorghum, $0.35/bu
Barley, $0.20/bu
Barley, $0.25/bu
$0.068/bu
Barley, $0.24/bu
Oats, $0.021/bu
Oats, $0.025/bu
Barley, $0.20, $0.10, $0.05/bu
Oats, $0.024/bu
Cotton, $0.0556/lb
Cotton, $0.0667/lb
Oats, $0.05, $0.025, $0.013/bu
Cotton, $0.0667/lb
Rice, $2.04/cwt
Rice, $2.35/cwt
Cotton, $0.13, $0.065, $0.0325/lb
Rice, $2.35/cwt
Soybeans, not a contract crop
Soybeans, $0.42/bu
Rice, $2.45, $2.40, $2.40/cwt
Soybeans, $0.44/bu
Other Oilseeds, not contract crops
Other Oilseeds, $0.0074/lb
Soybeans, $0.55, $0.275,
Other Oilseeds, $0.008/lb
[Section 104]
$0.138/bu
[Section 1103(b)]
Other Oilseeds, $0.01, $0.005,
$0.0025/lb
[Section 111]
The law does not specify actual payment
Total payments are to be
No comparable provision.
Same as Senate.
rates, but states the total funds available
reduced by $100 million on a
Note: no provision to reduce spending
each year and the allocation share for each
pro rata basis (about 2%
and devote funds elsewhere.
commodity. [Section 113]
based on CBO estimates)
and these funds are to be
devoted to specified rural
development programs.
[Section 943]
c.) Time of Payment.
The producer can choose to receive 50%
FY2002 PFC payments
No explicit reference is made to
Similar to House bill. [Section 1107]
of the payment on Dec. 15 or Jan. 15 and
under old law are to be
discontinuing payments under
the remainder not later than September 30
discontinued after enactment,
PFC contracts, or to payments
of each fiscal year. [Section 112(d)(1 &
and any amount already paid
already made under old law.

CRS-29
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
2)]
is to be deducted from the
amount due under this Act.
[Section 108] Fixed,
decoupled payments are to
be made not later than
September 30 of each fiscal
year. [Section 104(d)]
Alternatively, for FY1999-02, the
The producer can choose to
Same as House bill. [Section 111
Same as House and Senate bills except
producer can choose to receive the full
receive an advance of 50% of
as it amends Section 113(d) of
the producer can choose to receive any
amount or portions at times during the
the payment on or after
FAIR Act]
amount up to 50% of the direct
fiscal year chosen by the producer.
December 1. [Section
payment. [Section 1103(d)]
[Section 112(d)(3) as added by PL 105-
104(d)]
228, Section 2]
3. Counter-Cyclical Deficiency
Payments and Target Prices
a.) Eligibility.
Eliminates counter-cyclical target price
Restores counter-cyclical
Same as House bill. [Section 111
Same as House and Senate bills.
deficiency payments that were enacted in
target price deficiency
as it amends Section 111(a) of the
[Section 1104]
1973 and functioned through 1995. When
payments that ended in 1995.
FAIR Act]
effective, farmers were paid the difference
Farms that have signed
between the target price and a lower
agreements receive counter-
season average farm price on a specified
cyclical payments if average
proportion of the a farm’s crop base acres.
market prices are less than
target prices. [Section 101]
b.) Target Prices and Payment
Rates.
Not
applicable.
The payment rate
for
Same as House bill, except that
Same as House bill. [Section 1001(10)]
counter-cyclical payments is
the payment amount for each

CRS-30
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
the difference between the
commodity is 100% of base acres
“target price” and the
times the payment yield times the
“effective price.” The
payment rate.
effective price is the higher
of (1)the national season
average price or (2)the loan
rate, plus the direct fixed,
decoupled payment rate. The
payment amount is the
payment rate times the
payment acres times the
payment yield. Payment
acres are 85% of base acres.
Target prices are for all years
Target prices are for all years are
Target prices for 2002-03/2004-07 are
are specified as follows:
specified as follows:
specified as follows:
Wheat, $4.04/bu
Wheat, $3.446/bu
Wheat, $3.86/$2.92/bu
Corn, $2.78/bu
Corn, $2.3472/bu
Corn, $2.60/$2.63/bu
Sorghum, $2.64/bu
Sorghum, $2.3472/bu
Sorghum, $2.54/$2.57/bu
Barley, $2.39/bu
Barley, $2.1973/bu
Barley, $2.21/$2.24/bu
Oats, $1.47/bu
Oats, $1.5480/bu
Oats, $1.40/$1.44/bu
Upland Cotton, $0.736/lb
Upland Cotton, $0.6793/lb
Upland Cotton, $0.724/$0.724/lb
Rice, $10.82/cwt
Rice, $9.2914/cwt
Rice, $10.50/$10.50/cwt
Soybeans, $5.86/bu
Soybeans, $5.7431/bu
Soybeans, $5.80/$5.80/bu
Other Oilseeds, $0.1036/lb
Other Oilseeds, $0.1049/lb
Other Oilseeds, $0.098/$0.1010/lb
[Section 105]
[Section 171]
[Section 1104(c)]

CRS-31
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
4. Marketing Assistance Loans and
LDPs
a.) Eligibility.
Any wheat, feed grains, upland cotton, and
Marketing assistance loans
Same as House bill. [Section
Similar to House and Senate bills,
rice produced on PFC farms is eligible for
a n d l o a n d e f i c i e n c y
121]
except the list of loan commodities
marketing assistance loans or LDPs,
payments (LDPs) are
differs. [Section 1201] Loan
whether or not it is produced on contract
available for agreement
commodities are defined to include
acres. These commodities are not eligible
crops (grains, upland cotton,
wheat, corn, grain sorghum, barley,
for loan or LDPs if produced on farms
oilseeds) on all farms where
oats, upland cotton, extra long staple
without contracts. Any oilseed is eligible
they are produced, whether
cotton, rice, soybeans, other oilseed,
for marketing assistance loans or LDPs,
or not they have signed
wool, mohair, honey, dry peas, lentils,
whether or not the farm has a contract.
agreements). [Section 121]
and small chickpeas. [Section 1001]
[Section 131]
b.) Term of Loans.
Loans on grains and oilseeds are for 9
Same as old law. [Section
Same as old law. [Section 121]
Similar to old law, and House and
months beginning on the first of the month
123]
Senate bills, except the term for each
after the loan date. Loans on upland
commodity is 9 months beginning on
cotton are for 10 months beginning on the
the first day of the month after loan is
first of the month before the loan
made. [Section 1203]
date.[Section 133]
c.) Loan Repayment.
For grains and oilseeds, marketing
Similar to old law. [Section
Similar to old law. [Section 121]
Similar to old law, and House and
assistance loans can be repaid at the lesser
124]
Senate bills. Repayment rules for wool,
of the loan rate plus interest, or the rate
mohair, honey, dry peas, lentils, and
determined by USDA that minimize
small chickpeas are the same as for
forfeitures, minimize the accumulation of
grains and oilseeds. [Section 1204]
CCC-owned stocks, minimize the cost of
storage, and allow for free and competitive

CRS-32
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
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 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 old law. [Section
Same as old law. [Section 121]
Similar to old law, and House and
oilseeds eligible for marketing assistance
125]
Senate bills. LDPs are available for all
loans instead can choose to receive loan
loan commodities with the exception of
deficiency payments. The LDP is the
ELS cotton. [Section 1204]
difference between the loan rate and the
loan repayment rate established by the
USDA. [Section 135]

CRS-33
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
e.) Loan Rates.
Marketing assistance loans and loan
Marketing assistance loans
Same as House bill. [Section
Same as House and Senate bills.
deficiency payments (LDPs) continue at
a n d l o a n d e f i c i e n c y
121]
[Section 1201]
rates in effect in 1995. Authority is
payments (LDPs) are
provided for USDA to lower the loan rates
a v a i l a b l e f o r l o a n
when stocks accumulate. [Section 132]
commodities on all farms
(not limited to farms with
agreements for fixed and
counter-cyclical payments)
and any quantity produced
on the farm. [Section
121(b)]
Loan rates generally are to be not less than
Loan rates generally are to
Fixed, specific loan rates are as
Fixed, specific loan rates are as follows:
85% of the moving 5-year Olympic
be not less than 85% of the
follows:
Wheat, $2.80/$2.75/bu
average of prices received by producers, or
moving 5-year Olympic
Wheat, $2.9960/bu
Corn, $1.98/$1.95/bu
more than:
average of prices received by
Corn, $2.0772/bu
Sorghum, $1.98/$1.95/bu
Wheat, $2.58/bu
producers, or more than:
Sorghum, $2.0772/bu
Barley, $1.88/$1.85/bu
Corn, $1.89/bu
Wheat, $2.58/bu
Barley, $1.9973/bu
Oats, $1.35/$1.33/bu
Sorghum, $1.69/bu
Corn, $1.89/bu
Oats, $1.4980/bu
Cotton, $0.52/$0.52/lb
Barley, $1.71/bu
Sorghum, $1.89/bu
Cotton, $0.5493/lb
Rice, $6.50/$6.50/cwt
Feed Barley, $1.70/bu
Rice, $6.4914/cwt
Soybeans, $5.00/$5.00/bu
Oats, $1.14/bu
Malting Barley, $1.65/bu
Soybeans, $5.1931/bu
Minor Oilseeds, $0.096/$0.93/lb
Cotton, $0.5192/lb
Oats, $1.21/bu
Minor Oilseeds, $0.0949/lb
ELS Cotton, $0.7977, $0.7977/lb
Rice, max & min $6.50/cwt
Cotton, max $0.5192-min
[Section 171]
(ELS Cotton is not eligible for LDPs)
Soybeans, max $5.26, min $4.92/bu
$0.50/lb
Dry Peas, $6.33, $6.22/cwt
Minor Oilseeds, max $0.093, min $0.87/lb
Rice, must equal $6.50/cwt
Lentils, $11.94, $11.72/cwt
[Section132]
Soybeans, $4.92/bu
Small Chickpeas, $7.56, $7.43/cwt.
Minor Oilseeds, $0.087/lb
Graded Wool, $1.00/lb
[Section 122]
Nongraded Wool and Unshorn Pelts,
40¢/lb

CRS-34
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Mohair, $4.20/lb
[Section 1202]
(P.L. 106-224, Section 206(a)(2) and (3),
Retroactively, for the 2001
Same as House bill. [Section
Same as House and Senate bills.
made loans and LDPs available on non-
crops, as was the case for
169]
[Section 1205(f)(2)]
PFC farms only for crop year 2000.)
2000, LDPs are available on
n o n - P F C f a r m s t h a t
Note: Payment limits are covered below in
produced contract crops and
N, 2).
oilseeds. [Section 125(f)]
B. Wool and Mohair
1.) Marketing Loans and LDPs.
No provision (In FAIR Act)
Marketing loans and LDPs
Similar to House bill, but no
Similar to House bill, except unshorn
are available to all producers
support for mohair. Marketing
pelts are eligible for LDPs only.
Note: Wool and mohair support was
at the following rates:
loans and LDPs are available to
phased out and ended in 1996 by P.L. 103-
all producers at:
130, Section 1, which repealed the
Graded Wool, $1.00/lb
Graded Wool, $1.00/lb
Graded Wool, $1.00/lb
National Wool Act of 1954. However,
Nongraded Wool, 40¢/lb
Nongraded Wool and Unshorn
Nongraded Wool and Unshorn Pelts,
support was authorized in several
Mohair, $4.20/lb
Pelts, 40¢/lb
40¢/lb
subsequent years. P.L. 106-78 Section
[Section 130]
Mohair, na
Mohair, $4.20/lb
801(h), authorized recourse loans on 1999
[Section 171]
[Section 1201, 1202]
crop mohair. P.L. 106-224, Section
Note: While Section 123 provides
204(d), mandated payments on 1999 crop
no loan for mohair, Section 171
Marketing loan gains and LDPs are
wool of $0.20, and on mohair of $0.40/lb.
includes a loan for mohair. The
limited to $75,000 per person per year
P.L. 106-387, Section 814, authorized
reported intent was not to support
for wool, and separately $75,000 for
payments of $0.20/lb for wool and $0.40
mohair]
mohair. [Section 1603]
mohair for crop year 2000, up to $20
million. Again for crop year 2001, P.L.
107-25, Section 5, authorized $16.9
million in direct payments for wool and

CRS-35
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
mohair at rates determined by USDA.
C. Honey
1.) Marketing Assistance
Loans and LDPs.
Honey support is repealed. [Section 171]
Marketing loans and LDPs at
Marketing loans and LDPs at
Same as House bill. [Section
$0.60/lb. The term of a loan
$0.60/lb. The term of the loan is
1201,1202] The payment limit is
Note: This action followed several years of
is 12 months, beginning the
9 months, beginning the first day
$75,000 per person per year. [Section
agriculture appropriations bill language
first day of the month after
of the month after the loan is
1603]
that prevented USDA from carrying out
the loan is obtained.
obtained. [Section 124]
the mandatory honey marketing loan
[Section 131]
program.
Subsequently, 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.
D. Extra Long Staple (ELS) cotton, Dry Peas, Lentils and Chickpeas
1.) Marketing Assistance
Loans and LDPs.
ELS cotton is eligible for nonrecourse
Same as old law.
Marketing loans and LDPs are
Similar to Senate bill, except large
loans, but not LDPs. [Sections 132 and
available on all production at the
chickpeas are not included. [Section
134]
following rates:
1201-1205]. Loan rates for 2002-03,
and 2004-07 are:

CRS-36
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Note: No support is authorized for dry
ELS Cotton, $0.7965
ELS Cotton, $0.7977, $0.7977/lb
peas, lentils, large chickpeas, small
(ELS cotton is not eligible for
(ELS cotton is not eligible for LDPs)
chickpeas.
LDPs)
Dry Peas, $6.33, $6.22/cwt
Dry Peas, $6.78/cwt
Lentils, $11.94, $11.72/cwt
Lentils, $12.79/cwt
Small Chickpeas, $7.56, $7.43/cwt.
Large Chickpeas, $17.44/cwt
[Section 1202]
Small Chickpeas, $8.10/cwt
The term of each loan is 9
months, beginning the first day of
the month after the loan is
obtained. [Section 171 ]
E. Grazed Wheat, Barley, Oats, and Triticale
1.) Payments in Lieu of LDPs.
P.L. 104-127 made no provision for LDPs
Wheat, barley, and oats that
Similar to House bill, but includes
Similar to House bill, except grazed
on grazed wheat, barley and oat acreage.
are grazed and not harvested,
grain sorghum along with wheat,
triticale also is covered. [Section 1206]
P.L. 106-224, Section 205, provided for
but would be eligible for
barley and oats as eligible crops.
LDPs on grazed acres only for 2001 crops.
LDPs if harvested, will
[Section 127]
receive LDPs under similar
rules to those that apply to
harvested crops. Federal
crop insurance is not allowed
on grazed land agreements.
[Section 126]
F. High Moisture Corn and Sorghum
1.) Recourse Loans.

CRS-37
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Recourse loans are available on high
For farms that normally
Same as House bill. [Section
Same as House bill. [Section 1209(a)]
moisture corn and grain sorghum. Loan
harvest corn or sorghum in a
121(a)]
rates are determined by the USDA. Only
high moisture condition,
producers with PFC contracts are eligible.
recourse loans are available
[Section 137(a)]
at rates set by the USDA.
Farms need not have signed
“agreements.” [Section
129(a)]
G. ELS and Upland Seed Cotton
1.) Recourse Loans.
Recourse loans are available on upland
Recourse loans are
No provision is made to support
Same as House bill. [Section 1209(b)]
seed cotton for farms with PFC contracts,
available for all upland and
seed cotton.
and on any farm producing ELS seed
ELS seed cotton, at rates set
cotton. [Section 137(b)]
by the USDA. Farms need
not have signed
“agreements.” [Section
129(b)]
H. Hard White Wheat Incentive Payments
1.) Incentive Payments.
No special support provision is added for
Same as old law, no support
For crop year 2003 through 2005,
Similar to Senate bill, but funding is set
hard white wheat. However, hard white
provision is available for
an additional $40 million is to be
at $20 million for the 3 year period.
wheat, like all other wheat, does qualify
hard white wheat.
paid to producers to ensure that
[Section 1616]
for contract payments and marketing loan
hard white wheat on not more
program benefits.
than 2 million acres meets
minimum quality standards.
[Section 167]
I. Upland Cotton Competitiveness for Processors and Exporters

CRS-38
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
1.) Marketing Certificates.
Marketing certificates or cash payments
Some changes from old law.
Same as old law. [Section
Same as House bill for upland cotton.
are made to domestic users and exporters
Marketing certificates or
121(b)]
Applies through July 31, 2008.
of upland cotton whenever the 4-week
cash payments are made to
[Section 1207(a)]
price of U.S. cotton gets too high
domestic users and exporters
compared to world cotton price (i.e.,
of upland cotton whenever
1.25¢/lb higher), or is not high enough
the 4-week price of U.S.
compared to the U.S. cotton loan rate (i.e.,
cotton is too high or not high
less than 130% higher). [Section 136(a)]
enough (i.e., when the U.S.
price (1) exceeds the world
price by 1.25¢/lb, or (2) does
not exceed the U.S. cotton
loan rate by at least 134%).
[Section 127(a)]
2.) Import Quotas.
A special import quota is imposed on
A special import quota is
Same as old law. [Section
Same as House bill. [Section 1207(b)]
upland cotton when U.S. prices exceed
imposed on upland cotton
121(b)]
world prices by 1.25¢ for 10 weeks.
when U.S. prices exceed
[Section 136(b)]
world prices by 1.25¢ for 4
weeks. [Section 127(b)]
A limited global import quota is imposed
Same as old law. [Section
Same as old law. [Section
Same as old law, and House and Senate
on upland cotton when U.S. prices average
127(b)]
121(b)]
bills. [Section 1207(c)]
130% of the previous 3-year average of
U.S. prices. [Section 136(c) ]
J. ELS Cotton Competitiveness for Processors and Exporters
No provision.
A special competitiveness
No provision.
Same as House bill. Applies through
program is created for ELS
July 31, 2008. [Section 1208]
cotton with marketing

CRS-39
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
certificates or cash payments
to domestic users and
exporters under market
conditions like those that
apply to upland cotton.
[Section 128]
K. Peanuts
1.) Poundage Quotas and
Quota Compensation.
National poundage quota is set to reflect
Peanut quotas are terminated
Similar to House bill, but the
Repeals all quota provisions, and adopts
the projected domestic demand for edible
and quota holders are
compensation is $1,100 (55¢/lb)
Senate quota compensation level of
peanuts. The price of peanuts sold for
compensated $1,000/ton
($220/ton/yr for 5 years).
$1,100 (55¢/lb or $220 /ton/year for 5
domestic edible consumption (quota
(50¢/lb) ($200/ton/year for 5
[Section 152]
years). [Section 1309]
peanuts) is supported through nonrecourse
years). [Section 170]
loans at $610/ton (30.5¢/lb). The price of
additional peanuts (nonquota peanuts,
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]
2.) Nonrecourse Loans and
Marketing Assistance Loans.
Nonrecourse loans are
Same as House bill except that the
Nonrecourse loans are replaced by
replaced by marketing
marketing assistance loan rate is
marketing assistance loans. Loans are
assistance loans. Loans are
set at $400/ton (20cents/lb) for all
set at $355/ton (17.75¢/lb) available for
set at $350/ton (17.5¢/lb)
peanut production without
all peanuts produced without distinction
available for all peanuts
distinction for end use. [Section
of end use. [Section 1307b]

CRS-40
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
produced without distinction
151, as it establishes section
of end use. [Section 167]
158D in the FAIR Act.]
3.) Fixed Payments, Counter-
Cyclical Payments, and Marketing
Assistance Loans.
No provisions for fixed payments or for
Support for peanuts designed
Similar to House bill. [Section
Adopts House peanut program designed
counter-cyclical payments.
like that for grains, cotton,
151 as it establishes Section 158B
like that for grains, cotton, and oilseeds.
and oilseeds. Rules
in the FAIR Act]
Rules regarding eligibility, sign-up,
regarding eligibility, sign-up,
conservation and wetlands , base acres,
conservation and wetlands
payment yields, etc., are similar to
c o m p l i a n c e , p l a n t i n g
those that apply to grains, cotton, and
flexibility, base acres,
oilseeds. [Section 1302] Adopts
payment yields, etc., are
unique conference provisions on
similar to those that apply to
compliance and planting flexibility.
grains, cotton, and oilseeds.
[Section 1305, 1306]
[Sections 162, 165, 166]
The assignment of each
Same as House bill. [Section 151
Adopts House provision with revision
farm’s acres and yield to
as it establishes Section 158B(b)
specifying that assignment must be
cropland selected by the
in the FAIR Act]
done by March 31, 2003, among other
producer is done on a one-
provisions. [Section 1302(b)]
time basis. [Section 162(b)]
Fixed, decoupled annual
Fixed, decoupled contract
Fixed, decoupled annual payments at
payments at the rate of
payments are the same as House
the rate of $36/ton (1.8¢/lb) are made
$36/ton (1.8¢/lb) are made
bill. [Section 151 as it establishes
on 85% of each farm’s history of peanut
on 85% of each farm’s
Section 158C in the FAIR Act]
production. [Section 1303]
history of peanut production.
[Section 163]
Counter-cyclical deficiency
C ounter-cyclical deficien cy
Counter-cyclical deficiency payments

CRS-41
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
payments against a $480/ton
payments against a $520/ton
are made when marketing year prices
(24¢/lb) target price are
(26¢/lb) target price are made on
average less than the target price of
made on 85% of each farm’s
85% of each farm’s history of
$495/ton (24.75¢/lb). Payments are
history of peanut production.
peanut production. [Section 151
made on 85% of each farm’s history of
[Section 164]
as it establishes Section 158D in
peanut production. Partial payments
the FAIR Act]
may be made in advance. [Section
1304]
Marketing assistance loans
Marketing assistance loan rate set
Similar to House and Senate bills,
set at $350/ton) (17.5
at $400/ton (20 cents/lb) available
except the marketing assistance loan
cents/lb available for all
for all peanut production without
rate is set at $355/ton (17.75/lb)
peanut production without
distinction of end use. [Section
available for all peanuts. [Section
distinction of end use.
151 as it establishes Section
1307(b)]
[Section 167]
158G in the Fair Act.]
4.) Payment Limits.
No provision for peanuts.
Payments limits for peanuts
Payments received for support of
House provision, amended. Payments
are separate from other
peanuts are subject to the same
limits for peanuts are separate from
commodities.
limits as other crops. Peanuts are
other commodities but fixed, decoupled
Fixed, decoupled peanut
not treated separately.
peanut payments are subject to a limit
payments for are subject to a
For all crops, the combination of
of $40,000 per person, per year;
limit of $50,000 per person,
fixed, decoupled payments and
counter-cyclical target price deficiency
per year. The limit on
counter-cyclical payments is
payments are limited to $65,000, and
counter-cyclical target price
limited to $75,000 per individual,
marketing loan benefits are limited to
deficiency payments is
per year. Marketing loan benefits
$75,000.
$75,000, and the limit on
are limited to $150,000.
[Section 1603]
marketing loan benefits is
[Section 169]
$150,000.
[Section 169]
L. Sugar

CRS-42
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
1.) Price Support Loans.
Raw cane sugar and refined beet sugar are
Same nonrecourse loan rates
Same loan rates as old law.
Retains old rates for non-recourse loans
supported with nonrecourse loans at 18¢
as old law, 18¢/lb. raw cane,
[Section 141(i)]
-18¢/lb. raw cane, and 22.9¢/lb. refined
and 22.9¢/lb respectively. [Section 156(a)
and 22.9¢/lb. refined beet.
beet sugar.
and (b)]
[Section 151(a)]
The loan rates are to be reduced if
In-process sugar is newly
Same in-process sugar loans as
In-process sugar is newly eligible for
negotiated reductions in support are
eligible for loan at 80% of
House bill. [Section 141(e)]
loan at 80% of full loan rates.
achieved for other sugar countries.
full loan rates. [Section
[Section 156(c)]
151(e)]
Same authority to reduce loan
Loan rates may be reduced if competing
Note: A recourse loan program when the
Loan rates may be reduced if
rates as House bill. [Section
nations sufficiently reduce support.
tariff rate quota on imports is less than 1.5
c o m p e t i n g n a t i o n s
141(a)]
[Section 1401(a) restates FAIR Act
million short tons was eliminated by P.L.
sufficiently reduce support.
provisions, and adds new subsection for
106-387, Section 836.
[Section 151(c)]
in-process sugar loans]
2.) No Net Cost Mandate.
No
provision
Loan program is to
be
Same no cost policy as House
Loan program is to be operated at no
operated at no net cost by
bill. [Section 141(f)]
net cost by avoiding forfeitures.
a v o i d i n g f o r f e i t u r e s .
[Section 1401(a) adds new subsection
[Section 151(f)]
to FAIR Act]
3.) Loan Forfeiture Penalty.
A forfeiture penalty of 1¢ per pound on
Forfeiture penalty is retained
The loan forfeiture penalty is
Same as Senate bill and takes effect
raw cane sugar (an equivalent amount for
by preserving Section 156(g)
eliminated. [Section 141(d)]
upon enactment. [Section 1401(a)
beet sugar) is assessed on loan forfeitures.
of the FAIR Act.
drops provision from FAIR Act]
This effectively reduces the level of
support. [Section 156(g)]
Note: Change increases effective
support level.
4.) Import Quotas.

CRS-43
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
A global import quota of not less than
Same as old law.
Same as House bill, except
Reaffirms existing import quota system,
1.256 million short tons is set each year by
authorizes USTR in consultation
and adopts Senate reallocation
USDA under authority of the Harmonized
with USDA to reallocate any
provision giving any shortfall of one
Tariff Schedule of the United States. The
shortfall of one country’s
country’s shipments to the other quota-
quota is allocated among countries by U.S.
shipments to other quota-holding
holding countries. [Section 1403]
Trade Representative. [HTSUS, chapter
countries. [Section 144]
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]
5.) Marketing Allotments.
The authority to impose mandatory
Sugar marketing allotments
Similar to House bill, but
Sugar marketing allotments are restored
marketing allotments on domestic sugar
are restored and are to be
provision is made for new cane
and are to be shared between beet sugar
production is suspended. [Section
shared between beet sugar
processor entrants (including
and raw cane at 54.35% and 45.65%.
171(a)(1)(E)]
and raw cane at 54.35% and
mainland states not previously
Allotments are suspended when imports
45.65%. Allotments are
producing cane). [Section 143]
exceed 1.532 million short tons. Adds
suspended when imports
authority for USDA to assign unused
exceed 1.532 million short
cane and beet sugar allotments first to
tons. [Section 152]
sales of sugar in CCC inventory and
then to imports under certain
conditions. Makes allotment authority
effective beginning October 1, 2002.
[Section 1403]
6.) In-Kind Payments.
No provision.
CCC is authorized to make
Same authority to make in-kind
Authorizes CCC to make in-kind
in-kind commodity payments
payments for reduced production
payments from stored inventories in
from stored inventories to
as House bill. [Section 141(f)]
exchange for reduced production as laid
processors in exchange for
out in House and Senate provisions.

CRS-44
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
reduced sugar production.
[Section 1401(a) adds new subsection
[Section 151(j)]
to FAIR Act]
7.) Marketing Assessment.
Processors must pay an assessment on all
The assessment on all sugar
Same as House bill. [Section
Terminates the sugar marketings
marketings of sugar to CCC equal to a
marketings is eliminated.
141(c)]
assessment retroactive to October 1,
specified percentage of the loan rate.
[Section 151(b)]
2001. [Section 1401(b)]
[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 the
Interest rate on loans is equal
Same interest rate on loans as
Reduces interest rate on price support
CCC cost of borrowing money. [Section
to CCC cost of funds. This
House bill. [Section 141(j)]
loans to sugar processors by 1%, as in
163]
is 1% less than the interest
House and Senate bills. [Section
rate for other commodities.
1401(c)]
[Section 151(h)]
9.) Storage Facility Loans.
No provisions for storage facility loans.
Storage facility construction
Same as House bill. [Section
Authorizes storage facility loans, as in
and improvement loans are
142]
House and Senate bills. [Section 1402]
to be made available to
processors. [Section 153]

CRS-45
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
M. Dairy
1. Dairy Price Support Program
(DPSP)
The 1996 farm bill (P.L. 104-127), as
Extends the DPSP through
Extends the DPSP through
Extends the DPSP through December
amended, reauthorized the DPSP at the
December 31, 2011 at the
December 31, 2006 at the current
31, 2007 at the current level of support
then-current level of support ($9.90 per
current level of support
level of support ($9.90 per cwt.).
($9.90 per cwt.). The Secretary is
hundredweight (cwt.) of milk). The DPSP
($9.90 per cwt.). The
The Secretary would be required
permitted to adjust purchase prices of
indirectly supports the farm price of milk
S e c r e t a r y w o u l d b e
to adjust purchase prices of butter
butter and nonfat dry milk twice
through USDA purchases of surplus
permitted to adjust purchase
and nonfat dry milk twice
annually to minimize government
cheese, butter and nonfat dry milk
prices of butter and nonfat
annually to minimize government
expenditures on the program. [Section
(powder). The law allows the Secretary of
dry milk twice annually to
expenditures on the program.
1501}
Agriculture to adjust government purchase
m i n i m i z e go v e r n m e n t
[Section 131]
prices of butter and powder twice annually
expenditures on the program.
in order to minimize government
[Section 141]
expenditures. [Section 141]
The FY2002 agriculture appropriations act
(P.L. 107-76) 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.
Authorizes a new counter-cyclical
Authorizes a new counter-cyclical
contingent authority for the six New
payment program for dairy
payment program for dairy farmers
England states to create an interstate dairy
farmers through September 30,
through September 30, 2005. Whenever
compact. [Section 147] The compact
2005. Whenever the minimum
the minimum monthly fluid farm milk
required fluid milk processors in New
price for fluid farm milk falls
price in Boston falls below $16.94 per
England to pay a minimum price for farm
below a target price of $16.94 per
cwt., all eligible farmers nationwide

CRS-46
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
milk used for fluid consumption that is
hundredweight (cwt.) in 12
will receive a direct government
higher than the minimum price established
Northeast states (ME, NH, VT,
payment equal to 45% of the difference
under federal regulation. Compact was
CT, RI, MA, NY, NJ, PA, MD,
between $16.94 and the lower Boston
established in 1997 at a minimum price of
DE, WV), farmers in these states
price. Payments to individual farmers
$16.94 per hundredweight (cwt.).
w o u l d r e c e i v e a d i r e c t
can be received on up to 2.4 million lbs.
Legislative authority expired on
g o v e r n m e n t p a ym e n t t o
of annual production. Retroactive
September 30, 2001.
compensate for 45% of the
payments will be made for each month
difference between the target
back to December 2001. No budget
Separately, emergency authority included
price and the monthly minimum
limitations on how much can be spent
in the agriculture appropriations acts of
market price for fluid farm milk.
each year or in total. At the time of
FY1999 (P.L. 105-277), FY2000 (P.L.
Farmers in all other states would
enactment, the CBO estimated the total
106-78) and FY2001 (P.L. 106-387)
receive a federal payment when
cost of the program at $1.3 billion over
provided ad-hoc direct government
the average market price for farm
the life of the program. [Section 1502]
payments to all dairy farmers in response
milk in any quarter falls short of a
to volatile farm milk prices.
5-year average market price for
that quarter. Each producer would
receive a payment equal to 40%
of the market price shortfall from
the 5-year average. Total funding
over the life of the program is
$500 million for the Northeast
states, and $1.5 billion for all
other states. Payments could be
received by a farmer on up to 8
million lbs. of annual milk
production. [Section 132]
3. Recourse Loan Program
P.L. 104-127 permanently authorized a
Repeals authority for a
No provision.
No provision.
new recourse loan program to help dairy
recourse loan program.
processors balance their inventories, to be
[Section 142]

CRS-47
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
implemented once the dairy price support
(Subsequent to House
program (DPSP) expires. [Section 142]
passage of H.R. 2646, P.L.
P.L. 104-127 originally required the
107-76 was enacted which
elimination of the DPSP on January 1,
repealed authority for the
2000. However, subsequent legislation
recourse loan program.
extended price support authority.
Recourse loan program was never
implemented, and its authority was
repealed by P.L. 107-76. [Section 772(b)]
4. Dairy Export Incentive Program
The 1985 farm bill (P.L. 99-198) first
Extends program authority
Extends program authority
Extends program authority through
authorized the dairy export incentive
through 2011. [Section
through 2006. [Section 133(a)]
2007.
program, which helps U.S. exporters
143(a)]
[Section 1503(a)]
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
Reauthorizes the program through
Reauthorizes the program through
program indemnifies dairy farmers and
through September 30, 2011.
September 30, 2006. [Section
September 30, 2007. [Section 1503(b)]
processors who, through no fault of their
[Section 143(b)]
133(b)]
own, suffer income losses due to
contamination of milk or dairy products
caused by pesticides and certain other

CRS-48
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
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
Same as House bill, except that
Same as Senate bill.
(contained within the 1990 farm bill (P.L.
to the fluid milk promotion
fluid milk delivered directly to
[Section 1506]
101-624)), as amended, authorized a
program; 2) strikes the
consumer residences does not
research and promotion program for fluid
statutory definition of a fluid
count toward the 3 million pound
milk products. [Sections 1999A-1999R]
milk product and use the
minimum requirement for the
The program is funded through an
definition promulgated in
processor assessment. [Section
assessment on fluid milk processors who
USDA regulations; and 3)
134]
handle more than 500,000 lbs. of fluid
changes the definition of a
milk products each month. The 1996 farm
fluid milk processor for the
bill (P.L. 101-624) extended program
purpose of the required
authority through December 31, 2002.
assessment, to exclude any
[Section 146]
fluid processor that handles
less than 3 million pounds of
fluid milk products each
month. [Section 144]
7. Dairy Promotion and Research
Program
E x t e n d s t h e 1 5 - c e n t
Same as the House bill. [Section
Same as the House bill, with some
The Dairy Producer Stabilization Act of
assessment to imported dairy
136]
modifications, including a requirement
1983 authorized a national dairy producer
products. The 15-cent
that importers be represented on the
program for generic dairy product
assessment is to be paid to
Board in the same proportion that
promotion, research, and nutrition
U.S. Customs by the
imported dairy products comprise the
education. The program is funded through
importer on the equivalent of
total U.S. dairy market. Also, Secretary

CRS-49
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
a mandatory 15-cent per hundredweight
milk that went into the
is required to consult with the U.S.
assessment on all milk produced and
manufacturing of the
Trade Representative to determine
marketed in the contiguous 48 states.
imported product. Dairy
whether this provision is compatible
Dairy farmers administer the program
importers are allowed up to 2
with U.S. trade obligations; and dairy
through the National Dairy Promotion and
seats on the national Dairy
products must be promoted without
Research Board.
Board. None of the
regard to the country of origin of the
importer-collected funds can
product. [Section 1505]
be used for foreign market
promotion. [Section 146]
8. Dairy Product Mandatory Reporting
The Dairy Market Enhancement Act of
Amends the 2000 act to
Effectively similar to the House
Same as Senate bill.
2000 (P.L. 106-532) established a
include “substantially
bill, except that it changes the
[Section 1504]
mandatory reporting system for dairy
identical products designated
definition of a covered dairy
product inventories and prices. It requires
by the Secretary (of
product to include “substantially
USDA’s National Agricultural Statistics
Agriculture)” as part of the
identical products designated by
Service to regularly collect data on the
mandatory reporting system.
the Secretary.” [Section 135]
prices and inventories of cheese, butter and
[Section 145]
nonfat dry milk sold by dairy
manufacturers.
9. Dairy Studies
No provision in current law.
Requires the Secretary of
Requires the Secretary of
Adopts both the House and Senate
Agriculture to submit to
Agriculture to conduct studies to
provisions, thus requiring the Secretary
Congress a comprehensive
be reported to the House and
to conduct two dairy studies. Both
economic evaluation of
Senate Agriculture Committees
studies are due within one year of
national dairy policies (i.e.,
on: 1) the market effects of
enactment of this bill. [Section 1508]
the price support program,
terminating all federal dairy
federal milk marketing order,
programs relating to price support
over-order premiums and
and supply management; and 2)

CRS-50
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
state pricing programs, dairy
the effects of changing the
com pact s and ex port
standard of identity for fluid milk
programs) and their effect on
so that the required minimum
the farm and rural economy,
protein content of fluid milk is
domestic food and nutrition
commensurate with the average
programs, and consumer
nonfat solids contents of farm
costs. [Section 147]
milk directly from the cow.
[Section 137]
[Note: California has a standard
of identity for fluid milk that
requires a nonfat solids content
higher than the national
requirement and higher than the
average content of raw milk from
the cow.]
N. Tobacco
1. Flue-cured Tobacco
No Provision
Reduces the reserve stock level
Similar to Senate, except the reserve
No provisions.
for flue-cured in the quota
stock is 60 million pounds. [Section
determination formula from the
1610]
greater of 100 million pounds or
10% of the national marketing
quota, to the greater of 75,000
pounds or 10%. [Section 162]
2. Flue-cured Farm Reconstitutions
No provisions
No Provision
Allows, for the 2002 crop only,
Same as Senate bill. [Section 1611]
for special farm reconstitutions
that otherwise would violate the
prohibition on flue-cured lease

CRS-51
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
and transfer of quota. Requires a
study of the prohibition of flue-
cured quota lease and transfer.
[Section 163]
O. Specialty Crops (See also Miscellaneous section of this report).
1.) Mandatory CCC Purchases.
No provisions of P.L. 104-127 specifically
No provision.
M a n d a t e d s p e c i a l t y c r o p
The amount of Section 32 funds that
authorize or mandate support for specialty
purchases using CCC funds: $100
can be carried across fiscal years for use
crops. Subsequently, emergency ad hoc
million in each of FY2002 and
in emergency removals of surplus
assistance was mandated for specialty
FY2003, $120 million in FY2004,
commodities is increased from $300
crops. P.L. 106-224, Section 203(d),
$140 million in FY2005, and
million to $500 million. [Section 1602]
mandated the CCC spend $200 million for
$170 million in FY2006.
purchases of fruits and vegetables with
Mandated purchases of other
Section 32 purchases of fruits,
low prices in 1998 and 1999, including
unspecified commodities, at $30
vegetables, and specialty crops shall
apples, black-eyed peas, cherries, citrus,
million each year. [Section 166]
amount to not less than $200 million
cranberries, onions, melons, peaches, and
each fiscal year. [Section 10603]
potatoes. P.L. 106-387, Section 811 and
Section 816 mandated respectively $100
million in 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.
P. Payment Limits
1.) Fixed Payments, and

CRS-52
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
Counter-Cyclical Payments.
Fixed contract payments are subject to a
Combined fixed, decoupled
Fixed, decoupled commodity
Fixed, decoupled payments for grains
$40,000 per person, per year limit.
payments for grains, cotton,
payments combined with counter-
and oilseeds limited to $40,000 per year
[Section 115]
and oilseeds are limited to
cyclical target price deficiency
per person. Counter-cyclical payments
Note: Matching market loss payments
$50,000 per year per person.
payments for grains, cotton,
limited to $65,000. The same limits
adopted as emergency assistance were not
[Section 109] Separately,
oilseeds and peanuts are subject
separately apply to peanuts. [Section
subject to payment limits, with the
fixed, decoupled payments
to a $75,000 per person, per year
1603]
practical result effectively being the
for peanuts are limited to
limit. [Section 169]
potential doubling of the contract payment
$50,000. [Section 169]
limit to $80,000.
Counter-cyclical payments
for grains, cotton, and
oilseeds are subject to a
$75,000 per person, per year
limit. [Section 109]
Separately, counter-cyclical
payments for peanuts are
limited to $75,000. [Section
169]
2.) Marketing Loan Benefits.
Marketing loan benefits (marketing loan
Marketing loan benefits for
Marketing loan benefits for all
Marketing loan benefits for covered
gains and LDPs) for all crops combined
grains, cotton, and oilseeds
commodities (grains, cotton,
crops (grains and oilseeds), lentils, dry
are subject to a $75,000 per person, per
combined are subject to a
oilseeds, dry peas, lentils,
peas, and small chickpeas limited to
year limit. [Section 115] The limit was
$150,000 per person, per
chickpeas, wool, honey, and
$75,000. Peanuts, wool, mohair, and
raised to $150,000 for crop years 1999,
year limit. [Section 183]
peanuts) combined are subject to
honey each have separate marketing
2000, and 2001 by respectively P.L. 106-
Separately, marketing loan
$150,000 per individual, per year
loan benefit limits of $75,000. [Section
78, sec. 813; P.L. 106-387, sec. 837; and
benefits for peanuts are
limit. Included in this limit are
1603]
P.L. 107-25, sec. 10). Exempt from
l i m i t ed t o $150,000.
marketing loan gains, LDPs, loan
payment limits are marketing certificates
[Section 169] Separately,
forfeiture gains, and commodity
sold to farmers at the posted county price
marketing loan benefits for
certificate gains. [Section 169]
and used to pay off marketing assistance
wool and mohair are limited

CRS-53
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
loans (authorized by P.L. 106-78, sec.
to $150,000. [Section
812). Also exempt for limits are gains
1 3 0 (f ) ] S e p a r a t e l y,
from the forfeiture of commodities at loan
marketing loan benefits for
maturity.
honey are limited to
$150,000. [Section 131(f)]
3.) Spouse Benefit and 3 Entity
Rule.
No change is made to existing policy that
Same as old law.
A
s pouse a l l o w a n c e o f a n
Same as old law and House bill.
allows a spouse to be considered a separate
additional $50,000 is created.
person or allows one person to receive
The 3-entity rule is replaced by
payments from 2 additional farms. Either
applying the limits to payments
allowance doubles the limit on payments.
from all sources (the so-called
direct attribution rule.) [Section
169]
4.) Adjusted Gross Income
Limit.
No provision.
Same as old law.
A person with adjusted gross
Same as Senate bill. [Section 1603]
income in excess of $2.5 million
is not eligible for payments
(unless 75% or more of income is
from farming, ranching, or
forestry). [Section 169]
5.) Payment Limitation
Commission.
No provision.
No provision.
Creates a 1-year Commission on
Same as Senate bill. [Section 1605]
the Application of Payment
Limitations for Agriculture to
a n a l y z e a n d m a k e

CRS-54
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
recommendations on payment
limits. [Sections 181-187]
Q. Livestock Assistance
No provision.
No provision.
Authorizes appropriations up
Authorizes appropriations of such sums
$500 million per year for
as are necessary for livestock
FY2003-2008 for livestock
assistance. Prohibits use of CCC funds
assistance. [Section 168]
to make such payments. [Section
10104]
R. Farm Income Estimates
No provision.
No provision.
Requires USDA to make farm
Same as Senate bill. [Section 1615]
income estimates for commercial
producers separate from all farms.
[Section 173]
S. CCC Commodity Operations
No provision.
No provision.
CCC is authorized to use private
Same as Senate bill. [Section 1609]
business to carry out commodity
purchases and sales. [Section
174]
T. Implementing Regulations
Regulations to implement Title I shall be
Regulations to implement
No provision.
Same as House bill. [Section 1601(c)]
issued not later than 90 days after
Title I shall be issued not
(The 90 periods ends on August 12,
enactment (August 12, 2002). [Section
later than 90 days after
2002).
161(d)]
enactment. [Section 181(c)]
U. Counter-Cyclical Farm Savings Accounts

CRS-55
COMMODITY PROGRAMS
HOUSE BILL
SENATE AMENDMENT
NEW LAW (P.L. 107-171),
PRIOR LAW/POLICY (P.L. 104-127),
(H.R. 2646)
COVERS 2002-2006
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
No provisions in current law.
Same as old law.
Farm counter-cyclical savings
Same as old law and House bill.
accounts are authorized as a pilot
program in 3 states. Farms with
adjusted gross revenue from
commodities of at least $50,000
would be able to contribute an
unlimited amount into a savings
account with limited matching
federal contributions (up to
$5,000 per fiscal year).
Withdrawals are permitted when
adjusted gross revenue is less than
90% of the previous 5-year
average. [Section 114]
V. WTO Limits on Allowable Domestic Support
There is no upper limit in the law for
If USDA determines that
If USDA notifies Congress that
Same as House bill, except the USDA
spending on commodity support programs.
t o t a l s p e n d i n g f o r
support program spending will
is instructed to make adjustments to
This is in spite of Uruguay Round
commodity support will
exceed the allowed limits and that
ensure compliance. [Section 1601]
Agreement on Agriculture annual limit of
exceed the limits accepted by
adjustments will be made, all
$19.1 billion on U.S. domestic trade-
the United States in the
spending on the designated
distorting subsidies.
Uruguay Round Agreement
programs will be suspended after
on Agriculture, adjustments
18 months unless Congress
may be made to reduce
disallows the adjustments.
spending to the limits but not
[Section 164]
below the allowable limits.
[Section 181(e)]

CRS-56
II. CONSERVATION
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
A. Environmental Conservation Acreage Program (ECARP)
Title VII of Food Security Act (FSA)
Title II, Farm Security Act of 2001.
T i t l e I I o f t h e A g r i c u l t u r e ,
Title II of the Farm Security and
of 1985 as amended by Title III of the
C o n s e r v a t i o n , a n d R u r a l
Rural Investment Act of 2002.
Federal Agriculture Improvement
Enhancement Act of 2001.
and Reform (FAIR) Act of 1996.
1. Purpose and Programs.
No provisions.
R e n a m e s
E C A R P t h e
Adopts Senate Amendment
Authorizes program through long
Comprehensive Conservation
[Section 2006]
term contacts and acquisition of
Enhancement Program (CCEP)and
easements, to be implemented
places new name throughout Section
through the Conservation Reserve
1230. [Section 207(a)]
Program (CRP), Wetlands Reserve
Amends Section 1230(a) to reflect
Program (WRP), and Environmental
changed placement of conservation
Quality Incentive Program (EQIP).
programs in 1985 FSA. [Section
[Section 1230(a) of the 1985 FSA as
211(a)]
amended by Section 331 of the 1996
Repeals Section 1230A. [Section
FAIR]
207(c)]
Good Faith protection provisions
[Note: Section 1230A is replaced
NOTE: “Good Faith provisions
added as Section 755 of the FY2001
with new good faith provisions,
in Commodity Programs title
Agriculture Appropriations. [Section
discussed below in H (13) (a).]
(Administration subtitle) apply
1230A of 1985 FSA, as amended by
to both conservation and
Section 331 of 1996 FAIR]
commodity programs [Section
1631]
[Note: ECARP is an umbrella under
which the CRP,WRP, and EQIP are
placed.]

CRS-57
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
2. Priority Areas. Permits the
Repeals section 1230(c). [Section
Adds a new subsection giving
Adopts the House Provision
Section to designate watershed,
201(2)]
priority to areas where projects could
[Section 2006(c)]
multistate areas, or areas of special
be completed most rapidly. [Section
Note: National Priority area for
environmental sensitivity for
211(b)]
the CRS are reaffirmed
enhanced conservation assistance
elsewhere in the bill]
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.
Reauthorizes CRP through FY2006
Adopts House provision on
Purposes. Authorizes program
[Section 211(a)]
[Section 212(a)]
wildlife resources, with a
through FY2002, and states the
Adds wildlife resources to the purposes
modification to reauthorize the
purposes are to conserve and improve
of the program. [Section 211(b)]
CRP through FY2007 [Section
s o i l a n d w a t e r r e s o u r c e s .
2101(a)]
[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
Adopts Senate amendment with
erodible land, marginal pastureland,
pastureland to less than 10% of the total
cropping history for 3 of the 6 years
modifications, including that
and other cropland eligible. [Section
enrolled acres, expands the definition
preceding enactment (and land
land must have been cropped in
1231(b) of the 1985 FSA]
of other eligible cropland to include
enrolled in the CRP on that date),
4 of the 6 years before enactment
threats to soil and air quality, and
and adds a new subsection that
to be eligible, and many new
makes eligible land in production for at
makes land enrolled under the
specific details on types of
least 4 years that would contribute to
continuous signup and the buffer
eligible lands, such as allowing
conservation of ground and surface
initiative eligible for the regular
producers to enroll entire fields
water. [Section 212(a)] Adds a new
program. [Section 212(b)]
when more than 50% if eligible
Section1231(i) that requires balance
and the remainder of the field in
between soil erosion, water quality, and
“infeasible” to farm . [Section
wildlife habitat when reviewing bids,
2101]

CRS-58
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
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.
Raises ceiling to 41.1 million acres.
Adopts House provision [Section
enrollment ceiling at 36.4 million
[Section 212(b)]
[Section 212(c)]
2101(a)]
acres. [Section 1231(d) of the 1985
FSA as amended by Section 332(b) of
[Note: Section 215(a) water
the 1996 FAIR.]
conservation provisions lower the
CRP enrollment ceiling to 40.0
million acres; Section 215(b) 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
No provisions.
Amends Section 1231(e)(2) to allow Adopts Senate amendment
CRP contracts for some land devoted
the Secretary to extend contracts on
allowing automatic 1-year
to hardwood trees, shelter belts, wind
hardwood forests for up to 15 years
extension for contracts expiring
breaks, or wildlife corridors to be
and limits annual payments to 50%
in 2002 for land planted to
longer than the 10 to 15 years allowed
of the original contract amount, and
hardwood trees. Adopts House
for other contracts. [Section
allow new contracts of 10 to 30
provision requiring participants
1231(e)(2) of the 1985 FSA]
years. [Section 212(d)]
to bid to reenroll land [Section
2101(a)]
5. Conservation Priority Areas.
Allows land enrolled under this
Gives priority to areas where
Retains priority areas language
Requires the Section to establish, at
subchapter to be eligible to reenroll in
designation would lead to the most
of current law [section 2101(a)]
the request of a state, priority
the CRP. [Section 212(c)]
rapid completion of projects.
watersheds in specified and other
[Section 212(b)]
areas where enrollment would
“maximize water quality and habitat
benefits.” [Section 1231(f) of the 1985

CRS-59
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
FSA]
6. Enrollment Subcategories.
Expands the pilot program to all states
Deletes “pilot”, reauthorizes the
Adopts House provision with
Authorizes a 500,000 acre pilot
and limits enrollment in any state to
program through FY2006, and
modifications to: limit total
program, with enrollment limited to
150,000 acres. [Section 215]
increases the maximum size of
enrollment to 1 million acres and
150,000 acres in any state for small
eligible sites from 5 acres to 10 acres
to 100,000 acres in any state.
wetlands(less than 5 acres) and
(but only up to 5 acres are eligible
Adopts Senate amendment
buffers in 6 specified upper
for payments). [Section 212(e)]
increasing the maximum size of
Midwestern states. [A new
eligible sites. [section 2101(a)]
Section1231(h), enacted in Title XI of
t h e F Y 2 0 0 1 A g r i c u l t u r e
Appropriations (P.L. 106-387]
7. Duties of Owners and
Allows certain economic uses of
Adds a new subsection that allows
Adopts House provision with
Operators. Sets limits on commercial
enrolled lands if consistent with soil,
irrigated land to be enrolled through
modifications such as requiring
uses of lands in the CRP, but allows
water, and wildlife conservation. These
the buffer initiative or the CREP at
consideration of the impacts on
the Section to permit harvesting or
uses include managed grazing and
the irrigated land rate. [Section
wildlife when locating wind
grazing under very limited
haying (with reduced payments), siting
212(f)]
turbines. [Section 2101(a)]
circumstances. [Section 1232(a)(7)]
of wind turbines, and harvesting
Allows participants to plant native
Sets a goal of planting 1/8 of the land
biomass to produce energy (with
prairie grasses on enrolled marginal
enrolled each year to trees or habitat.
reduced payments). Deletes
pastureland, to permit harvesting or
[Section 1232(c)]
subsections (c) and (d). [Section 213]
grazing for maintenance purposes on
Allows alley-cropping. [Section
lands enrolled through the buffer
1232(d)] [Section1232(a) (7) of the
initiative or the CREP, and adds a
1985 FAIR as amended by the 1990
new subsection that makes crop
FACTA, Section 1232(c) of the 1985
production on other highly erodible
FSA, and Section 1232(d) of the 1985
land a violation of a CRP contract
FSA, respectively]
unless it has a cropping history or
was a building site when it was
purchased. [Section 212(g)]
Adds a new subsection that permits
wind turbines on CRP land (except

CRS-60
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
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
Generally restates existing law.
conditions for CRP payments.
enrollment and cost sharing
[Section1234 of the 1985 FSA as
payments to producers who enroll
amended by Section1434(a) of the
land in the buffer initiative or
1990 FACTA)
through a CREP. [Section 212(i)]
Payments for easements limited to
Exempts payments for land enrolled
$50,000 per year. [Section 1239C(f)]
in the buffer initiative or through a
CREP from the payment limit for
easements. [Section 212(j)]
9. County Enrollment Limits.
Repeals the provision allowing the
Exempts land enrolled under the
No provision
Limits enrollment in the CRP and
Secretary to exceed the county
continuous signup from county
WRP to 25% of county cropland, and
enrollment limit if operators are having
enrollment limit. [Section 212(k)]
limits easements to 10%; limits may
difficulty meeting compliance
be exceeded if it would not adversely
requirements. [Section 244(a)]
affect the local economy or if
operators are having 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
Reauthorizes funding from the CCC
Reauthorizes mandatory funding
Provides mandatory funding through
through FY2011. [Section241]
through FY2006, and includes
from FY2002 through FY2007,
the CCC. [Section1241(a) of the 1985
funding for technical assistance in
including funding for technical
FSA as amended by Section341 of the
support this program. [Section
assistance. [Section 2101(b)]
1996 FACT]
211(c)]

CRS-61
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
11. Study of Economic Effects. No
No provisions.
Requires the Secretary to report to
Adopts Senate language with
provisions.
the House and Senate Agriculture
modifications that require the
Committees on the economic and
study to be submitted in 18
social effects of the CRP on rural
months and to include the
communities within 270 days of
economic value of recreation
enactment. Specifies 3 components
opportunities. [Section 2101(b)]
of the analysis. [Section 212(l)]
C. Wetlands Reserve Program (WRP)
1. Enrollment. The 1990 FACTA
Allows enrollment of up to 150,000
Authorizes WRP enrollment through
Adopts Senate amendment with
adds a new Section1237 to the 1985
acres per calendar year starting in
calendar year 2006. [Section 214(c)]
modifications raising the
FSA establishing the WRP and
2002, with any acres up to the annual
Sets a maximum enrollment ceiling
enrollment cap to 2.275 million
capping enrollment at 975,000 acres.
limit that is not enrolled can be enrolled
of 2,225,000 acres, and an annual
acres and authorizing the
[Section 1438] Enrollment allowed
in succeeding years, through FY2011.
enrollment ceiling of 250,000 acres,
program through 2007. [sections
through calendar year 2002. [Section
[Section 221(a)]
of which up to 25,000 acres can be
2201 and 2202]
333(b)(1) of the 1996FAIR]
Authorizes enrollment through FY2011.
enrolled in the new Wetland Reserve
Enrollment ceiling increased from
[Section 221(c)}
Enhancement Program. [Section
975,000 acres to 1,075,000 acres.)
214(b)]
[Section 808 of the FY2001
Agriculture Appropriations (P.L. 106-
387)]
2. Enrollment Options. Requires
Deletes the 1/3 requirement, and the
Creates a new Wetland Reserve
Modifies law to permit the use of
1/3 enrollment each using permanent
distinction between permanent and
Enhancement Program that allows
permanent easements, temporary
easements, 30 year easements, and
temporary easements. [Section 221(b]
agreements with state and local
easements, and cost-sharing
l o n g - t e r m a g r e e m e n t s .
government, and non-governmental
agreements in any combination
[Section1237(b) of the 1985 FSA as
organizations to restore wetlands on
based on producer interest.
amended by Section333(a) of the
land in or eligible to be enrolled in
[Section 2202]
1996 FAIR]
the WRP. [Section 214(d)]

CRS-62
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
3. Easements and Agreements.
Replaces the 4 specific prohibitions
No provisions.
Deletes subsection 1237A(h)
Describes the general terms of
with a general statement to allow only
which allows restoration cost-
easements and agreements. Prohibits
changes permitted in the plan. Deletes
sharing agreements without an
altering habitat, spraying chemicals
subsection (e), which distinguishes 3
easement. [Note: characterized
and mowing, any activity that
lengths of easements, and subsection
by conference Committee as
degrades the land, and any other
(h), which can require wetlands to be
redundant.]
activity that counters the purpose of
restored if there is no easement.
the easement, unless permitted in the
[Section 222]
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
Amends Section 1237C(a) to provide
No provisions.
Technical Assistance. Describes
the Secretary to give priority to using
funds from the CCC for technical
how cost sharing and technical
permanent easements. [Section 223]
assistance in support of the WRP.
[Note: technical assistance
assistance will be provided; and how
[Section 214(a)]
provided for elsewhere —
priorities will be set for determining
Amends Section1237C(a)(2) to add
funding subsection, below]
which bids to accept. [Section1237C
monitoring and maintenance to the
of the 1985 FSA]
types of technical assistance
provided to participants. [Section
214(e)]
5. Changes in Ownership. Limits
Replaces 1990 acquisition date in
No provisions.
Adopts House amendment, with
program entry if ownership changes
Section1237E(a)(2) with provision to
modifications to address changes
occurred during the previous year,
make eligible at any time land acquired
in ownership resulting from
and specifies terms under which
through foreclosure where the previous
foreclosure. [Section 2204]
easements can be modified or
owner exercised a right of redemption.
terminated. [Section1237E of the
[Section 224]
1985 FSA]
6. Funding. Funding from the CCC
Reauthorizes mandatory funding
Reauthorizes funding from the CCC
Reauthorizes mandatory funding
is authorized to implement the WRP.
through FY2011. [Section 241]
through FY2006, and includes
from FY2002 through FY2007,
[Section 1241(a) of the 1985 FSA]
funding for technical assistance in
i n c l u d i n g f o r t e c h n i c a l

CRS-63
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
support of this program. [Section
assistance. [Section 2701]
211(c)]
D. Environmental Quality Incentives Program (EQIP)
1. Program Purposes. Identifies 4
Deletes reference to the programs that
Specifies that EQIP is to promote
Adopts Senate Amendment with
programs that EQIP replaces.
were replaced; replaces the purpose of
production and environmental
modifications that restate the
Specifies that EQIP maximize
responding to environmental threats
q u a l i t y w h i l e m a x i m i z i n g
purpose of EQIP [Section 2301]
environmental benefits per dollar
with the purpose of providing
environmental benefits per dollar
Deletes definition of “maximum
spent while meeting 4 purposes.
environmental benefits; and expands
spent by assisting producers to meet
benefit per dollar expended”
[Section 334 of the 1996 FAIR adds
the benefits to include air quality.
6 specified purposes. [Section
[Section 2301] to conform to
Section1240 to the 1985 FSA]
[Section 231]
213(a)]
provision in section 2301
striking the requirement for
maximum benefit per dollar.
2. Definitions. Defines “eligible
Adds non-industrial private forest land
Adds definitions of “beginning
Adopts Senate definitions of
land”, “land management practice”,
to “eligible land”, and replaces the
farmer or rancher”, “comprehensive
“beginning farmer,” “land
“livestock”, “producer”, and
notion of posing an environmental
nutrient management”, “innovative
m a n a g e m e n t p r a c t i c e , ”
“structural practice”. [Section 1240A
threat with the notion of providing
technology”, “managed grazing”,
“livestock,” “structural practice’”
of the 1985 FSA]
environmental benefits in that
“maximum environmental benefits
and a modified definition of
definition; and “producer” is expanded
per dollar expended”, “practice”, and
“eligible land.”[Section 2301]
to include non-industrial private
“program”. [Section 213(a)]
forestry. [Section 232]
3. Program Administration.
Reauthorizes EQIP through FY2011;
Reauthorizes EQIP through FY2006;
Adopts Senate provisions
Authorizes EQIP through 2002;
authorizes contracts of 1 to 10 years;
adds comprehensive nutrient
modified to: reauthorize EQIP
eligible practices include structural
repeals requirement that structural
management planning to the list of
through Fy2007, to provide
and land management practices;
practices be selected to maximize
eligible practices; allows the
i n c e n t i v e p a ym e n t s f o r
authorizes contracts of 5 to 10 years;
environmental benefits per dollar spent;
Secretary to provide conservation
c o m p r e h e n s i v e n u t r i e n t
provides cost-share of not more than
deletes limitation on payments to large
education to producers; authorizes
management plans; to permit
75% for structural practices; prohibits
livestock operations to construct animal
contracts of 3 to 10 years; limits
contracts as short as 1 year; to
cost sharing to large livestock
waste management facilities; and adds
producers to 1 contract for structural
prohibit the bidding down prices;
operations to construct animal waste
a new provision to make incentive
practices to manage livestock
and to provide higher cost share

CRS-64
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
management facilities; provides
payments at an amount and rate to
nutrients through FY2006; limits
payments to participating
incentive payments for land
encourage multiple land management
large livestock operators to 1
beginning and limited resource
management practices; provides
practices, with emphasis on payments
contract for a waste storage or
f a r m e r s . A d o p t s H o u s e
funding (not to exceed projected
for practices that address “residue,
treatment facility; authorizes
provisions eliminating the
costs) for technical assistance; and
nutrient, pest, invasive species, and air
application and e v a l u a t i on
requirement to maximize the
lists types of private sources to
quality management.” [Section 233]
procedures for selecting applicants;
environmental benefits per dollar
provide technical assistance.
prohibits bidding down; limits cost
spend. [Section 2301]
[Section 1240B of the 1985 FSA]
sharing payments to 75% (up to 90%
for limited resource and beginning
farmers, or to address a natural
disaster); prohibits duplicate cost
sharing payments for the same
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
Replaces these provisions with general
Adds higher priority also to be given
Adopts Senate Amendment with
the Secretary to give higher priority to
language about aiding farmers to
for special projects initiated by a
modifications giving higher
assistance in priority areas, or to
comply with environmental laws and
new partnership program to address
priority to applications that use
watersheds, regions, or conservation
encourage conservation, maximizing
environmental issues placed in
cost-effective conservation
priority areas where states or
the benefits of using manure and other
Section 1243(f), and to innovative
practices and that address
localities are active partners, and
soil amendments, and encouraging
technologies for structural or land
national conservation priorities.
maximize environmental benefits per
sustainable grazing systems. [Section
management practices. [Section
[Section 2301]
dollar spent. [Section1240C of the
234]
213(a)]

CRS-65
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
1985 FSA]
5. Duties of Producers. Lists 5
No provisions.
Almost identical to current law,
Adopts the Senate amendment
duties; one is a prohibition against
except gives the Section greater
with a modification to delete
practices that counter the purposes of
latitude in determining the
confined livestock feeding
EQIP. [Section1240D of the 1985
appropriate penalty for violations.
operations listing requirement in
FSA]
[Section 213(a)]
the Senate bill [Section 2301]
6. Program Plan. Lists the general
Replaces mention of management and
Almost identical to current law.
Adopts Senate amendment with
contents of plans producers are
structural practices with providing
[Section 213(a)]
modifications and adds a
required to submit to the Section to
greater environmental benefits. [Section
requirement that all recipients of
participate. [Section1240E of the
235]
funds for animal waste manure
1985 FSA]
s y s t e m s m u s t h a v e
c o m p r e h e n s i v e n u t r i e n t
management plans. [Section
2310]
7. Secretarial Duties. Assigns 5
Deletes incentive payments from
Almost identical to current law,
Adopts Senate amendment
duties to the Sec; one is to provide
implementing structural and land
except that it deletes (by not
[Section 2301]
technical assistance and cost-share or
management practices. [Section 236]
including) the duty of providing an
incentive payments for structural and
eligibility assessment. [Section
land management practices; another is
213(a)]
to prepare an eligibility assessment.
[Section 1240F of the 1985 FSA]
8. Payment Limits and Timing.
Limits payments to $50,000 annually
Limits total payments under all
Adopts the House provision,
Limits payments to $10,000 annually
and $200,000 per contract; deletes
contracts to $30,000 annually.
modified to limit total EQIP
and $50,000 per contract; specifies
language allowing annual limits to be
Limits 3 year contracts to $90,000 ,
payments to any individual or
the annual limit can be exceeded to
exceeded to provide maximum
$120,000 for a 4 year contract, and
entity through FY2007 to
maximize the environmental benefits
environmental benefit per dollar spent,
$150,000 for a contract that is 4
$450,000 [Section 2301]
per dollar spent; and delays federal
and repeals provisions to delay federal
years or longer. The Secretary can
expenditures until the year after the
expenditures until the year after the
exceed the $30,000 payment limit
contract has been signed. [Section
contract has been signed. [Section 237]
under certain circumstances. [Section

CRS-66
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
1240G of the 1985 FSA]
213(a)]
9. Other Provisions. Lays out
Replaces current language in Section
Replaces current language in
Adopts the House amendments
temporary transition provisions as
1240H, with provisions that provide
Section1240H with provisions that
with modifications to restate the
EQIP replaces 4 repealed programs.
$30 million, in FY2002, $45 million in
provide $100 million annually from
activities to be funded through
[Section 1240H of the 1985 FSA]
FY2003, and $60 million annually in
EQIP funds, starting in FY2003, for
the new ground and surface
FY2004-11 from the CCC for cost
competitive innovative matching
water conservation program and
share payments and low interest loans
grants and specifies examples to
t o p r o v i d e c o m p e t i t i v e
to encourage ground and surface water
include market systems for pollution
innovation matching grants as
conservation. [Section 238]
reduction, promoting carbon
described in the Senate bill.
sequestration in soil and other Best
Provides $25 million in FY2002,
Management Practices, and
$45 million in FY2003, and $60
protecting drinking water quality;
million annually thereafter
permits funds from other sources;
through FY2007 for the water
limits funding to 50% of cost; funds
conservation program, with $50
unobligated by April 1 each year can
million of the total going to
be spent on other EQIP purposes.
conservation activities in the
Adds new program as Section 1240I
Klamath Basin. Provides no
for groundwater conservation in the
funding or authorization for the
southern high plains to improve
innovative grants [section 2301]
irrigation efficiency and reduce
water use using EQIP funds. ($15
million in FY2003, $25 million in
FY2004-5, $35 million in FY2006,
and $0 in FY2007) Adds new pilot
programs as Section 1240J for
drinking water supplies, and for
nutrient reduction in the Chesapeake
Bay watershed using EQIP funds.
($10 million in FY2003, $15 million
in FY2004, $20 million in FY2005,
$25 million in FY2006, and $0 in

CRS-67
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
FY2007) [Section 213(a)]
10. Funding and Administration.
Authorizes mandatory spending
Provides $.5 billion in FY2002, $1.3
Reauthorizes mandatory funding
Provides $200 million annually
through the CCC through FY2011.
billion in FY2003, $1.45 billion in
from the CCC as follows: $400
through FY2002 from the CCC for
[Section 241]
FY2004-5, $1.5 billion in FY2006,
million in FY2002, $700 million
EQIP, with 50% of the total going to
Provides $.2 billion for FY2001, $1.025
and $.85 billion in FY2007; provides
in FY2003, $1 billion in
practices related to livestock
billion for FY2002-3, $1.2 billion for
funding for technical assistance from
FY2004, $1.2 billion in FY2005
production. [Section 1241 of the 1985
FY2004-6, $1.4 billion for FY2007-9,
the CCC. [Section 241(b)]
and FY2006, and $1.3 billion on
FSA as amended by several annual
and $1.5 billion for FY2010-11.
Reauthorizes funding from the CCC
FY2007. Funding for technical
agricultural appropriations laws]
[Section 242]
through FY2006, and includes
assistance is included in the
Reauthorizes the livestock provision
funding for technical assistance in
total. 60% of funds are to be
through FY2011. [Section 243]
support of this program. [Section
provided for practices related to
211(c)]
livestock and 40% for practices
relates to crops. [Section 2701]
E. Wildlife Habitat Incentives Program (WHIP)
1. Period of Authorization.
Reauthorizes funding from the CCC at
Moves WHIP to Section1240M of
Adopts House provision with
Provides a total of $50 million from
$25 million in FY2002, $30 million in
the 1985 FSA, reauthorizes funding
modification to move WHIP to
the CCC (from CRP funding) by the
FY2003-4, $35 million in FY2005-6,
from the CCC at: $50 million in
the 1985 FSA, making it subject
end of FY2002. [Section387(c) of the
$40 million in FY2007, $45 million in
FY2002; $225 million in FY2003;
to compliance, and to require
1996 FAIR]
FY2008-9, and $50 million in FY2010-
$275 million in FY2004; $325
that the Secretary recognize
11. [Section 252]
million in FY2005; $355 million in
regional issues of concern when
FY2006; and $50 million in
distributing funds. [Section
FY2007; all funding to remain
2502]
available until spent. Provides
Reauthorizes mandatory funding
funding for technical assistance from
from the CCC: $15 million in
the CCC. [Section 217(g)]
FY2002, $30 million in FY2003,
$60 million in FY2004, and $85
million annually in FY2005-
FY2007. [Section 2701]
2. Establishing WHIP
No provisions.
Requires consultation with STCs to
Adopts Senate amendment

CRS-68
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
No provisions.
establish WHIP. [Section 217(b)]
3. Cost-sharing Payments.
No provisions.
Requires the Secretary to use at least
No provisions
Authorizes cost sharing payments for
15% of the cost-sharing funds on
several approved purposes. [Section
endangered and threatened species.
387(b)]
[Section 217(c)]
4. Participation Related to Public
No provisions.
Makes individuals and organizations
No provisions
Lands. No provisions.
leasing 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
Adopts the Senate amendment
15% of the funds to enroll land for at
[Section 2501]
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
Moves the FPP to Section 1238H-J
Adopts the Senate amendment to
total of $35 million from the CCC by
through FY2011 from the CCC.
of the 1985 FSA[Section 218(a)],
mover the FPP to the 1985 FSA.
FY2002. [Section388(c) of the 1996
[Section 253(b)]
and repeals Section 388 of the 1996
Reauthorizes mandatory funding
FAIR]
FAIR. [Section 218(c)]
from the CCC: $50 million in
Provides from the CCC: $150
FY2002, $100 million in FY203,
million in FY2002; $250 million in
$125 million in FY2004 and
FY2003; $400 million in FY2004;
FY2005, $100 million in
$450 million in FY2005; $500
FY2006, and $97 million in
million in FY2006; and $100 million
FY2007. [Section 2701]
in FY2007; provides funding for
technical assistance from the CCC;
limits the federal share to 50%,

CRS-69
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
limits the portion of the non federal
share provided by the landowner or
in inkind goods and services to 25%,
and prohibits bidding down. [Section
218(b)]
2. Eligible Land. Makes between
Deletes the maximum and minimum
Same as Section 253(a); and also
Adopts the Senate amendment
170,000 acres and 340,000 acres
acreage limits, and makes historic and
defines eligible land to include
with a clarification that forest
eligible if the soil is prime, unique or
archaeological sites eligible. [Section
cropland, rangeland, grassland,
land must be an incidental part of
productive, and an offer is pending
253(a)]
pasture land and forest land that is
an agricultural operation.
from a state or local government to
part of an agricultural operation.
[Section 2503]
limit non agricultural uses. [Section
[Section 218]
388(a) of the 1996 FAIR]
3. Conservation Planning.
No provisions.
Identical to current law. [Section
Same as current law [Section
Requires a conservation plan if the
218]
2503]
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
Expands eligibility to also include
Identical to Section 253(c). [Section
Adopts House provision [Section
eligible any state or local agency that
federally recognized Indian tribes, and
218(a)]
2503]
has made an offer to purchase a
non profit organizations that meet
conservation easement. [Section
specified qualifications. [Section
388(a) of the 1996 FAIR]
253(c)]
5. New Program Options. No
No provisions.
Allows up to $10 million to be spent
Adopts Senate amendments,
provisions.
annually to provide matching grants
modified, calling it a farm
for market development, and
v i a b i l i t y p r o g r a m a n d
technical assistance to participants.
authorizing appropriation of
[Section 218(a)]
necessary funds for FY2002
through 2007. [Section 2503]

CRS-70
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
G. Other Programs (Including Technical Assistance)
1. Resource Conservation and
Permanently reauthorizes program, and
Permanently reauthorizes program,
Adopts the Senate amendment,
Development Program (RC&D).
makes numerous other, mostly minor or
and makes numerous other, mostly
modifies to prohibit RC&D
Provides assistance to encourage and
technical amendments. [Section 254]
minor or technical amendments.
Councils from using another
improve the capacity of state and
[Note: Many of the changes in the two
[Section 216]
person or entity to assist in
local governments and non profits in
bills are different from each other, but
[Note: Many of the changes in the
developing or implementing an
rural areas to develop and implement
they do not change the basic intent or
two bills are different from each
area plan.[Section 2504]
conservation programs. Authorized
operation of the program.]
other, but they do not change the
through FY2002. [Title III of the
basic intent or operation of the
Bankhead-Jones Farm Tenant Act as
program.]
amended by §1528-1538 of the 1981
AFA]
2. Small Watershed Rehabilitation
Authorizes $15 million annually in
No provisions.
A d o p t s
H o u s e p r o v i s i o n ,
Program. Provides financial and
“FY2002 and each succeeding year” to
modified to authorize mandatory
technical assistance to rehabilitate
f u n d t h e S m a l l W a t e r s h e d
funding from the CCC at: $45
water structures that are nearing or
Rehabilitation Program. [Section 257]
million in FY2003, $50 million
past the end of their design life.
in FY2004, $55 million in
Authorizes appropriations of $5
FY2005, $60 million in FY2006,
million in FY2001, $10 million in
$65 million in FY2007.
FY2002, $15 million in FY2003, $25
Additional funding from
million in FY2004, and $35 million
appropriations also was
in FY2005. [Authorized in Section
authorized at $45 million in
313 of the Grain Standards and
FY2003, $55 million in FY2004,
Warehouse Improvement Act of 2000]
$65 million in FY2005, $75
million in FY2006 and $85
million in FY2007. [Section
2505]
3. Conservation of Private Grazing
Adds encouraging the use of
Moves the program to a new Section
Adopts Senate amendment,
Lands. Provide coordinated
sustainable grazing systems to the list
1240P of the 1985 FSA and, makes
modified to delete the findings
technical, educational, related
of activities for which assistance can be
numerous other, mostly minor,
section and reauthorized the

CRS-71
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
assistance to preserve and enhance
provided. [Section 251]
changes, and authorizes $60 million
program through FY2007.
privately-owned grazing lands;
annually through FY2006. [Section
[Section 2502]
authorizes 2 demonstration districts,
217(a)]
and authorizes $20 million in
Repeals provisions establishing
FY1996, $40 million in FY1997, and
program in Section 386 of the 1996
$60 million in FY1998 and each
FAIR. [Section 217(b)]
subsequent year. [Section 386 of the
1996 FAIR]
4. Technical Assistance. Allows
Allows producers to seek assistance
Adds a new Section 1244(f) to the
Adopts the House amendment,
persons who need and apply a
from third parties, who have the
1985 FSA f) requiring the Secretary
modified to: require that funding
conservation compliance plan to
specified expertise, and requires the
to create a certification program for
for technical assistance for each
obtain technical assistance from
Secretary to develop a system for
third parties to provide technical
p r o g r a m u n d e r t h e
approved sources other than NRCS;
approving qualified third parties who
assistance, specifies standards for
Comprehensive Conservation
the Section must document a rejection
provide technical assistance to EQIP
certification, permits the Section to
Enhancement Program come
of assistance from those sources
participants within 6 months of
repay landowners who use third
from CCC funds; implement a
[Section 1243(d) of the 1985 FSA]
enactment. [Section 244(b)]
parties, and establishes an advisory
program for certifying and
committee for the certification
paying third party technical
program. [Section 204]
assistance providers within 180
days of enactment; and specify
eligible expertise, sources of
assistance in the interim, and
permits assistance by non-federal
entities. [Section 2701]
5. State Technical Committees
No provisions.
Expands membership in STCs to
No provision
(STC) Creates STCs , lists the
include expertise in forestry, restates
composition, outlines responsibilities
its responsibilities to mesh with
to include providing “information,
other changes this legislation makes
analysis, and recommendations” on
to conservation programs, and makes
i m p l e m e n t i n g c o n s e r v a t i o n
subcommittees and local working
provisions (including several
groups working on STC business
specified topics) to the state
exempt from FACA. [Section 221]

CRS-72
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
conservationist, and exempts the STC
from FACA meeting requirements.
[Section 1261 of the 1985 FSA]
6. Conservation Compliance.
No provisions
No provisions
Makes technical changes and
Prohibits most federal farm program
prohibits the Secretary from
benefits for producers who cultivate
delegating authority to make
highly erodible lands without an
highly erodible land and wetland
a p p r o v e d a n d i m p l e m e n t e d
determinations to a private
conservation plan or who alter
person or entity. [Section 2002]
wetlands to produce crops. [Section
1243(d) of the 1985 FSA]
7. Agricultural Management
No provisions
No Provisions
Li s t s
p e r m i t t e d t y p e s o f
Assistance. Provides cost-sharing
conservation practices; retains
assistance to producers to apply
the $50,000 annual payment
conservation in 15 specified states
l i m i t , a n d p e r m a n e n t l y
where Federal Crop Insurance
appropriates mandatory funding
Program participation has been
from the CCC, with $20 million
historically low. [Section 524 of the
annually in FY2003 through
Agricultural Risk Protection Act of
FY2007 and $10 million
2000]
annually thereafter. [Section
2501]
8. Repeals of Authorized Programs
Repeals provisions: creating the
Repeals numerous conservation
Adopts Senate provisions.
and Activities. No provisions.
Wetlands Mitigation Banking Program
programs in current law and
[Section 1222(k) of the 1985 FSA];
reauthorizes them in other sections
exempting CRP payments from any
of farm law, as noted in the entries
limits under the 1985 FSA, the 1990
above.
FACTA, and the 1949 AA [Section
1234(f)(3)]; protecting the base history

CRS-73
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
of land enrolled in the CRP [Section
1236 of the 1985 FSA]; exempting
WRP payments from any limits under
the 1985 FSA, the 1990 FACTA, and
the 1949 AA [Section 1237D(c)(3)] and
; creating the Environmental Easement
Program [Section1239 of the 1985
FSA], the Conservation Farm Option
[Section 1240M of the 1985 FSA], and
t h e Tree P l ant i ng In i t i a t i v e
[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
a. Places GRP in Section 1238N-P of
Adopts House provision
(GRP).
1985 FSA creating a 2 million acre
the 1985 FSA, creating a 2 million
modified to enroll of up to 2
a. Reserve Size. No provisions.
grasslands reserve, split evenly between
acre grasslands reserve, of which up
million acres in tracts of 40 acres
restored grasslands and virgin (never
to 500,000 acres will be native
or more, and permits the
cultivated) grasslands. Section
grasslands in tracts of 40 acres or
Secretary to waive the minimum
1238(b)(1) sets minimum size for
less. Section 1238N sets minimum
acre per site limit. [Section
enrolled parcels at 50 contiguous acres
size at 40 contiguous acres east of
2401]
east of the 90th meridian and 100
the 98th meridian and 100 contiguous
contiguous acres west of the 90th
acres west of the 98th meridian
meridian. [Section 255(a)]
[Section 219(a)]
b. Eligible Lands. No provisions.
b. Defines eligible land to include
b. Same definition of eligible land as
b. Adopts Senate provision
natural grass and shrub land that has a
in H.R. 2646, except that it also
modified to include restored,
potential to serve as important plant or
enrolls incidental additional land that
improved, or natural grassland,

CRS-74
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
animal habitat, or has been historically
is necessary for the administrative
rangeland, or pasture land,
dominated by natural grass or
efficiency of an easement.[Section
including prairie. [Section 2401]
shrubland. [Section 255(a)]
219(a)]
c. Enrollment Options. No
c. Spends at least 2/3 of funds on
c. Allows permanent easements, 30
c. Adopts Senate provision,
provisions.
contracts of 10 to 20 years, and the
year easements, the longest
modified to enroll 40% of
remainder on 30 year or permanent
easements allowed by state law, and
acreage in 10, 15 or 20 tear
easements. [Section 255(a)]
30 year rental agreements. Allows
rental agreements, and 60% in 30
the Secretary to delegate easements
year rental agreements, or 30
t o p r i v a t e c o n s e r v a t i o n
year permanent easements.
organizations, land trusts, and state
[Section 2401]
agencies. [Section 219(a)]
d. Permitted and Prohibited Uses of
d. Permits contract holders to use
d. Similar to H.R. 2646 for permitted
d. Adopts House provision
Enrolled Lands. No provisions.
common grazing practices, and permits
and prohibited uses of enrolled
modified to also permit fire
haying and mowing outside the bird
lands. [Section 219(a)]
rehabilitation and construction of
nesting season, but prohibits all
fire breaks and fences. [Section
agricultural production (except hay) and
2401]
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
e. Requires the Secretary to work
e. Adopts House provision
provisions.
ranking criteria for reviewing
with STCs in developing ranking
modified to also emphasize land
applications, with emphasis on support
criteria, and to give priority to
under the greatest threat of
for native vegetation, grazing
grazing operations, maintaining or
conversion. [Section 2401]
operations, and plant and animal
restoring biodiversity, and land
diversity, and to set the terms for
under the greatest threat of
restoration. [Section 255(a)]
conversion. [Section 219(a)]
f. Describes how payment levels are to
f. Describes how payment levels are

CRS-75
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
f. Payment Levels. No provisions.
be set for each form of participation,
to be set for each form of
f. Adopts House provision
sets cost sharing payments for
participation, provides that rental
modified to use State formula for
restoration at 90% for virgin grasslands
agreements be reviewed and adjusted
30 year agreements and all
and 75% for restored grasslands, and
at least once every 5 years, limits
easements, and moves support
provides technical assistance. [Section
cost-sharing payments to 75% for
for technical assistance to the
255(a)]
restoration, and provides technical
funding subsection of the
assistance. [Section 219(a)]
conservation title [Section 2401]
g. Penalties for Violation.
g. No provisions.
g. Describes the roles of the
No provisions.
Secretary and the landowner in
g. Provides that agreements
i m p l e m e n t i n g r e s t o r a t i o n
remain in force but that owner
agreements, and lists the penalties
may be required to refund
for violations, and allows periodic
payments, with interests.
site inspections. [Section 219(a)]
[Section 2401]
h. Funding. No provisions.
h. Amends Section 1241 of the 1985
h. Amends Section 1241 of the 1985
FSA to provide a total of up to $254
FSA to provide such CCC sums as
h. Adopts House provision,
million through the CCC through
necessary to implement this
modified to provide up to $254
FY2011 to implement this program.
program. [Section 219(b)]
million in mandatory funding
[Section 255(b)]
from the CCC for FY2003-2007,
and provide technical assistance.
[Section 2701]
2. Farmland Stewardship
Adds this program as a new Section
No provisions.
No provision
Program. No provisions.
1239 to the 1985 FSA. It is to be
administered by NRCS “to more
precisely tailor and target” current
conservation programs, using program
funding on a watershed basis, where
possible. Participation requires
matching funds, and can involve other
agencies. Participants submit a

CRS-76
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
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
Adopt Senate amendment
(CSP). No provisions.
(CSP). Authorizes a CSP in
modified to: authorize the
Section 1238 — 1238B of the 1985
programs through FY2007,
FSA. It defines 22 terms and lists
decrease the maximum tier II
13 program purposes. To
payment to $45,000, make
participate, producers must have an
p a r t i c i p a n t s s u b j e c t t o
approved plan for eligible lands
compliance, and delete the state
(land in the CRP and WRP, or that
pilot program provisions.
has not been in production at least 3
[Section 2001]
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

CRS-77
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
renewed. Total annual payments are
limited to $20,000 for Tier I,
$35,000 for Tier II, and $50,000 for
Tier III. Specified practices are
ineligible. State pilot programs are
authorized. [Section 201] Amends
Section 1241 of the 1985 FSA by
adding a new subsection (c) to
provide “such funds as are
necessary” from the CCC through
FY2006. [Section 202]
Allows implementation to start on
the date of enactment. [Section 206]
4. Partnerships and Cooperation.
No provisions.
Adds a new Section 1242(f) to the
Adopts Senate amendment
No provisions.
1985 FSA to allow special projects
modified to provide funds to
as recommended by a state
address natural resource
conservationist, which can respond
problems related to agricultural
to meeting the requirements of
production, delete identification
specified federal laws or addressing
of specified federal laws, and
watersheds or other areas with
provide funding by using up to
significant environmental problems.
5 % o f a l l m a n d a t o r y
Participants agree to a plan to adjust
conservation program funding.
implementation of conservation
[Section 2002]
programs to increase environmental
benefits. Funding uses 5% of EQIP
funds annually, with any unused
funds to go to other EQIP activities
that year. [Section 203]
5. Watershed Risk Reduction
No provisions.
Authorizes $15 million annually
No provision
Program. No provisions.
through FY2006 to implement a new
program to purchase floodplain

CRS-78
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
easements at Section1240N of the
1985 FSA. [Section 217(a)]
6. Great Lakes Basin Soil Erosion
No provisions.
Authorizes $5 million annually
Adopts Senate provisions
and Sediment Control Program.
through FY2006 to implement a new
modified, and authorizes
No provisions.
soil erosion and sediment control
appropriations of $5 million
program for the Great Lakes basin at
annually from FY2002-2007.
Section 1240O of the 1985 FSA.
[Section 2502]
[Section 217(a)]
Note: Conference Committee
report states that funding is to be
provided through FY2006.]
7. Water Conservation Program.
No provisions.
Reduces CRP enrollment ceiling
No provisions.
No provisions.
from 41.1 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 Maine; others can
apply to participate. [Section 215(b)]
A u t h o r i z e s a n e w W a t e r
Conservation Program in Section

CRS-79
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
1240R of the 1985 FSA. NRCS will
provide cost sharing assistance to
increase irrigation efficiency,
convert production to less water-
intensive crops, and acquire water
rights. Protection of state and other
water laws required. Nebraska and
South Dakota are ineligible, while
the same 7 states as in the program
above are eligible, and others may
apply. Authorizes funding from the
CCC at $25 million in FY2002, $52
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
Adopts Senate provision,
Protection Program. No provisions.
through FY2006 in Section 1240Q
m o d i f i e d t o a u t h o r i z e
of the 1985 FSA for a new program
appropriations of $5 million
to use technical assistance
annually from FY2002-2007.
capabilities of state rural water
[Section 2502]
associations that operate wellhead or
Note: Conference Committee
groundwater protection programs.
report says funding is provided
[Section 217(a)]
through FY2006]
9. Organic Agriculture Research
No provisions.
Provides $50 million from the CCC
No provision
Trust Fund. No provisions.
in FY2003, to remain available until
spent and to accrue interest, in
FY2003 to establish a new research
fund on organic products. [Section
231]

CRS-80
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
10. National Organic Research
No
provisions.
Establishes a National
Organic
No provision
Endowment Institute. No
Research Endowment Institute to
provisions.
develop and implement a plan for
research on organic products using
the trust fund (established in Section
231). [Section 232]
11. Cranberry Acreage Reserve.
No provisions.
Authorizes purchase of permanent
Adopts Senate provision but
No provisions.
easements on wetlands and buffer
moves to Miscel l aneous
strips that are part of a cranberry
Provision section of bill [Section
operation from willing sellers.
10608]
Authorizes $10 million annually for
this activity. [Section 261]
12. Klamath Basin. No provisions.
No provisions.
Authorizes the Secretary to create a
No separate provision, but
federal task force (membership
provides $50 million to assist
specified) to develop a coordinated
producers in this basin as soon as
federal effort to manage water
possible under the new Ground
resources in this basin (6 duties
and Surface Water Conservation
specified). In addition to using
program under EQIP placed in
existing programs, the task force will
Section 2301.
establish a grant program to carry
out its responsibilities. [Section
262(a) and (b)]
The task force will develop an initial
report within 180 days of enactment,
a draft 5-year plan to implement its
duties within 60 days thereafter, and
a final plan within 1 year of
enactment. Eight items to be
considered in the plan are specified.
[Section 262(c)]
Consultation with specified non-

CRS-81
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
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)]

13. Desert Terminal Lakes
No provision
No provision
Adds new provision providing
No provision
$200 million in mandatory
funding from the CCC to the
Bureau of Reclamation ro
provide water to at-risk natural
desert terminal lakes; specified
that no funds can be used to
purchase or lease water rights.
[Section 2507]
14. Conservation Corridor
No provision
No provision
Adds new provision establishing
Demonstration Program.
a program on the Delmarva
No provision
Peninsula to demonstrate local
conservation and economic
cooperation using existing
USDA programs, based on a
plan developed by 1 or more of
the eligible states or local
governments. Criteria and time
limits for USDA review of
proposals are s peci fi ed.
Programs are 3-5 years long and

CRS-82
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
a progress report is required after
3 y e a r s . A u t h o r i z e s
appropriations as necessary
annually from FY2002-2007
with the federal portion to pay
for up to half of the total cost
[Section 2601]
15. Administrative Requirements
for Conservation Programs
a. Relief for Good Faith Actions. No
No provisions.
a. Adds a new Section 1244(a) to the
a. Good faith provisions in the
provisions.
1985 FSA giving the Secretary the
Administration subtitle of the
option of granting relief to
Commodity programs title apply
conservation program participants
to both conservation and
who act in good faith under a
commodity programs. [Section
contract, and are subsequently
1613]
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)
Adopts Senate provisions,
Producers. No provisions.
which provides necessary funds from
modified to provide this
the CCC to assist certain limited
assistance to foster new farming
resource, socially disadvantaged, and
opportunities and to enhance
beginning producers, and Indian
environmental stewardship
tribes to participate in conservation
[Section 2004(a)]
programs. The Secretary may
contract with other entities to
provide these services. Adds a new
Section 1244(c) allowing the
Secretary to provide incentives to
these producers(except socially-

CRS-83
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
disadvantaged ones) to participate in
conservation programs. [Section
204]
c. No provision
c. Data Collection and Program
No provisions.
c. Adds a new Section 1244(d)
Evaluation.
which requires the Secretary to
No provisions.
collect data that would permit
evaluation of conservation programs
[Section 204]
d. No provisions
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 204]
[Note: Section 1244(f), on technical
assistance, is discussed above in
G4.]
Adopts Senate provisions,
e. Privacy of Personal Information.
No provisions.
e. Adds a new Section 1244(g) to
modified to protect information
No provisions.
protect the privacy of personal
at natural resource inventory
information about individuals related
collection data points.
to conservation programs (not
[Section 2004(a)]
including public information on
payments, etc). [Section 204]
No provision, but law includes a
f. Tribal Lands. No provisions.
No provisions.
f. Adds a new Section 1244(h) which
section in the Miscellaneous title
requires the Secretary to cooperate
that requires the Secretary to
with a tribal government when
review the operation of programs
carrying out conservation programs
including conservation programs
on tribal lands. [Section 204]
available to producers on tribal
and trust lands. [Section 10910]

CRS-84
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
g. Adopts Senate provision,
g. Regional Equity of Conservation
No provisions.
g. Requires that each state receive a
modifies to give priority to
Spending. No provisions.
total of $12 million annually from
providing funds, excluding CPR,
FY2002 through FY2006, in
WRP, and CSP) in states that
conservation funds. Of the total, $5
have not received $12 million by
million is to be used for EQIP, and
April 1 of each year.
$7 million is to be used for other
[Section 2701]
conservation programs, with any
portion not obligated by April 1of
the fiscal year to be reobligated to
other specified programs. [Section
241]
16. Implementation.
No provisions
No Provisions
R e qui res al l i m p l e m e n t i n g
No provision relevant to new
regulations for conservation,
provisions
unless otherwise specified, to be
issued within 90 days of
enactment. [Section 2702]
17. Assessment of Conservation
No Provisions.
Assessment of
Conservation
Adopts Senate provision,
Programs. No provisions.
Programs. Requires the Secretary
modified to require that the
to develop a plan to better coordinate
report, with implementing
and consolidate the implementation
proposals be submitted to the
of conservation programs. [Section
Committees by December
205(a)]
32,2005. Provisions related to
Requires the Secretary to provide the
the implementation of the Soil
plan (and recommendations) to both
and Water Conservation Act and
agriculture committees within 180
updating technical standards are
days of enactment. [Section 205(b)]
deleted. [Section 2005]
Requires the Secretary to provide a
plan (with a cost estimate) for

CRS-85
CONSERVATION
HOUSE BILL
SENATE AMENDMENT
NEW LAW
PRIOR LAW/POLICY
H.R. 2646
(S. 1731, AMENDED)
(P.L.107-171)
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
updating the national conservation
program required by the Soil and
Water Resources Conservation Act
of 1977 to both agriculture
committees within 180 days of
enactment, and to report to both
committees of the status of plan
implementation by April 30, 2005.
[Section 205(c)]
Requires the Secretary to revise
conservation technical standards
within 180 days of enactment , and
to update them at least once every 5
years. [Section 205(d)]

CRS-86
III. AGRICULTURAL TRADE AND AID
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
A. Agricultural Export Assistance Programs
1. Market Access Program (MAP)
a. MAP helps exporters (mainly
a. Extends current law, except it
a. Extends current law, except
a. Extends current law through
nonprofit industry trade associations, who
increases mandatory funding to not
that in addition to any funds
FY2007 at the following
allocate the funds to others including
more than $200 million yearly in
specifically appropriated for the
mandatory funding levels: $100
agricultural cooperatives and small
CCC funds through FY2011.
program, mandatory funding of
million for FY2002; $110 for
businesses) finance promotional activities
[Section 301]
not more than $100 million for
FY2003; $125 million for
overseas (usually for more consumer-
FY2002; $120 million for
FY2004; $140 million for
oriented, higher value products).
FY2003; $140 million for
FY2005; $200 million for
Required (mandatory) funding of not
FY2004; $180 million for
FY2006; $200 million for
more than $90 million yearly in CCC
FY2005; and $200 million for
FY2007. [Section 3103]
funds through FY2002. [Agricultural
FY2006 (in CCC funds or
Trade Act of 1978 as amended by Section
equivalent CCC commodities).
244 of Federal Agriculture Improvement
[Section 322]
and Reform (FAIR) Act of 1996]
b. No provision.
b. No provision.
b. Priority, for funds in excess of
b. In providing funds in excess
$90 million in any year, for
of FY2001 levels (i.e., $90
eligible organizations that have
million) Secretary shall, for
not participated in the past, and
proposals from new program
for programs in emerging
participants and for emerging
markets. [Section 322]
markets, give consideration
equal to that given to current
participants. [Section 3103]
c. No provision.
c. No provision.
c. New U.S. Quality Export
Initiative (using appropriated
c. No provision.
MAP, FMDP funds), to promote
U.S. products with a new “U.S.

CRS-87
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
Quality” seal overseas. [Section
322]
2. Foreign Market Development
Cooperator Program (FMDP)
a. FMDP helps U.S. exporters (mainly
a. Extends current law, except sets
a. Extends current law, except
a. Extends current law, excepts
through commodity based trade
mandatory funding at $37 million in
sets mandatory funding of $37.5
sets mandatory funding at $34.5
associations) to finance promotional
CCC funds yearly through FY2011.
million for FY2002; $40 million
million annually from FY2002
activities overseas. Statutory authority (at
[Section 305]
for FY2003; and $42.5 million for
to FY2007. [Section 3105]
such sums as necessary) through FY2002;
FY2004 and subsequent years (in
current funding is $28 million per year.
CCC funds or equivalent CCC
[Agricultural Trade Act of 1978 as
commodities). [Section 324]
amended by Section 252 of FAIR Act of
1996]
b. FMDP has focused on promoting
b. New emphasis on exporting value-
b. Establishes a priority, for
b. In providing funds in excess
mainly bulk and partially processed
added products to emerging markets.
funds above $35 million in any
of FY2001 levels (i.e., $28
commodities, targeted to foreign
Requires annual report to Congress
year, for eligible organizations
million) Secretary shall, for
importers/processors — although about a
on program. [Section 305]
that have not participated in the
proposals from new program
third of program promotes value-added
past, and for programs in
participants and for emerging
products.
emerging markets. [Section 324]
markets, give consideration
equal to that given to current
participants. Calls for “a
continued significant emphasis”
on value-added products to
emerging markets. Requires
annual report to Congress.
[Section 3105]
3. Export Enhancement Program
(EEP)
a. EEP authorizes cash payments or CCC
a. Current law extended through
a. Current law extended through
a. Current law extended through
commodities as bonus subsidies to help
FY2011, at current level of up to
FY2006 at current level of up to
FY2007, at current level of up

CRS-88
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
exporters sell agricultural products
$478 million per year. [Section 304]
$478 million per year. [Section
to $478 million per year.
(although not statutorily prescriptive,
323]
[Section 3104]
mainly wheat and other grains have used
EEP) 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
b. Expands definition of unfair
offset the effects of unfair trade practices,
trade practices to include: (1)
trade practices to include: (1) an
now defined as any foreign act or policy
pricing practices by an exporting
exporting STE that prices its
that “violates, or is inconsistent with, the
state trading enterprise (STE) that
commodities inconsistently vs.
provisions of, or otherwise denies
“are not consistent with sound
sound commercial practice; (2)
benefits to the United States under, any
commercial practices conducted
provision of subsidies that
trade agreement...” or “is unjustifiable,
in the ordinary course of trade,”
decrease U.S. export market
unreasonable, or discriminatory and
or (2) changing U.S. “export
opportunities or unfairly distort
burdens or restricts United States
terms of trade through a
market opportunities to the
commerce.” [Agricultural Trade Act of
deliberate change in the dollar
detriment of U.S. exporters; (3)
1978, Section 102]
exchange rate of a competing
unfair technical barriers to trade
exporter.” [Section 323]
i n c l u d i n g c o m m e r c i a l
r e q u i r e m e n t s a d v e r s e l y
affecting new technology like
biotechnology and unjustified
sanitary or phytosanitary
r e s t r i c t i o n s ; ( 4 ) unfai r
implementation of tariff rate
quota rules; (5) failure to meet
trade agreement obligations
with the United States. [Section
3104]

CRS-89
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
4. Dairy Export Incentive Program
(DEIP)
DEIP authorizes cash or CCC
Extends current law through 2011.
Extends current law through
Extends current law through
commodities as bonus subsidies to help
[Title I-C, Section 143]
FY2006. [Title I-C, Section 133]
2007. [Title I- E, Section 1503]
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 t he W orl d 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 CCC
a. Extends current law through
a. Extends current law through
a. Extends current law through
funding, where USDA guarantees
FY2011. [Section 306]
FY2006. Requires a report to
FY2007. Instead of report,
commercial financing of not less than
Congress within 1 year on the
requires regular consultations
$5.5 billion annually of U.S. agricultural
status of multilateral negotiations
with Congress on the status of
exports. Financing can be used for short-
regarding agricultural export
multilateral n ego t i at i ons
term credit (GSM-102) for up to 3 years;
credit programs. [Section 321]
regarding agricultural export
and for long-term credit (GSM-103), for
credit programs. [Section
3-10 years. GSM programs are used in
3102]
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

CRS-90
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
amended by the Section 243 of the FAIR
Act of 1996]
b. No change in supplier credit term.
b. Permits guarantees of supplier b. Permits supplier credit
b. Supplier Credits feature permits CCC
credits for up to 12 months.
guarantees for up to 360 days,
to issue credit guarantees for repayment
[Section 321]
subject to appropriations for any
of credit made available by a U.S.
loan terms longer than the
exporter to a foreign buyer for up to 180
current 180 days. [Section
days. [Agricultural Trade Act of 1978 as
3102]
amended by Section 243 of the FAIR Act]
6. Emerging Markets Program
a. Requires CCC through FY2002 to
a. Extends current law through
a. Extends current law through
a. Extends current law through
offer no less than $1 billion per year in
FY2011. [Section 308]
FY2006. [Section 332]
FY2007. [Section 3203]
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 million
b. Increases this funding to $13
b. No increase.
b. No increase.
annually through FY2002 to send U.S.
million annually. [Section 308]
advisors to emerging markets. Food,
Agriculture, Conservation and Trade Act
of 1990 as amended by Section 277 of
FAIR Act of 1996]
B. Food Aid Programs
1. P.L. 480 (Food for Peace) General
a. Seeks to combat hunger and encourage
a. Extends P.L. 480 (i.e., authority
a. Extends P.L. 480 through
a. Extends P.L. 480 authority
development overseas. Title I makes
to enter into new agreements)
FY2006. [Section 311]
through FY2007. [Section
export credit available on concessional
through FY2011. [Section 307]
3012]

CRS-91
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
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) as amended by Section 217 of the
FAIR Act of 1996]
b. Congress has stated five specific
b. Adds “conflict prevention” as a
b. Same as House bill [Section
b. Adds “prevent conflicts” as a
purposes of P.L. 480 (e.g. combat hunger,
new purpose. [Section 307]
301]
new purpose. [Section 3001]
expand international trade, etc.). [Section
2 of P.L. 480]
c. Food Aid Consultative group
c. Extends Food Aid Consultative
c. Ex t e n d s Food Aid
c . E x t e n d s F o o d A i d
consisting of specified federal officials,
Group through FY2006; clarifies
Consultative Group through
Consultative Group through
representatives of private voluntary
what the group is to review to
FY2006. [Section 305]
FY2007. [Section 3005]
organizations (PVOs), foreign non-
include policies and guidelines.
government organiz ations, and
[Section 307]
agriculture producer groups, is authorized
through FY2002. [Section 205 of P.L.
480]
2. P.L.480 Assistance Levels and
a. Increases the minimum level of
a. Increases the minimum level
a. Increases the minimum level
Funding
commodities to 2.25MMT per year
of commodities to 2.1 MMT in
of commodities to 2.5MMT
a. Minimum Title II assistance is 2.025
through FY2011. [Section 307]
FY2002, 2.2MMT in FY2003, 2.3
annually beginning in FY2002.
million metric tons (MMT) of agricultural
MMT in FY2004, 2.4 MMT in
Changes the sub-minimum
commodities per year through FY2002;
FY2005, and 2.5 MMT in
requirement for non-emergency
AID Administrator has some authority to
FY2006. [Section 304]
programs to 1.875 MMT

CRS-92
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
waive minimum. Subminimum
annually. [Section 3004]
requirement for non-emergency programs
is 1.55MMT. [Section 204 of P.L. 480]
b. Limits CCC Title II costs to $1 billion
b. Removes limit on CCC Title II
b. Doubles limit on CCC Title II
yearly; some Presidential waiver
costs. [Section 307]
costs to $2 billion per year.
b. Removes limit on CCC Title
authority. [Section 206 of P.L. 480]
[Section 306]
II costs. [Section 3006]
c. Provides that at least $10 million but
c. Replaces dollar designations by
c. Replaces dollar designations
not more than $28 million of Title II
setting support for eligible
by setting support for eligible
c. Replaces dollar designations
funding per year shall be use to support
organizations at not less than 5% and
organizations at not less than 5%
by setting support for eligible
e l i g i b l e o r g a n i z a t i o n s ( P V O s ,
not more then 10% of Title II
and not more than 10% of Title II
organizations at not less than
cooperatives, organizations like the
funding. [Section 307]
funding. [Section 302]
5% and not more than 10% of
World Food Program, etc.) in conducting
Title II funding. [Section 3002]
Title II activities. [Section 202 of P.L.
480]
3. P.L . 4 8 0 O p e r a t i o n &
Administration
a. Authorizes the use of U.S. dollars
a. Similar to House [Sections
a. Monetization language
a. Permits PVOs to sell Title II
a n d o t h e r c u r r e n c i e s f o r
303, 310, & 325]. Also, a food
similar to House and Senate.
commodities in the recipient country (or
monetization in P.L. 480 — and also
aid commodity sale is to be “at a
Adopts Senate’s “reasonable
a nearby country) to finance commodity
Food for Progress and Section 416
reasonable market price in the
market price” language.
transportation, storage, etc., and local
programs; permits PVOs to submit
economy” where the commodity
Contains language encouraging
development projects (“monetization”).
multi-country proposals; and permits
is to be sold. [Section 310]
multi-country proposals, from
[Section 203 of P.L. 480]
food aid monetization in more than
all eligible organizations, not
one country in the region. [Sections
just PVOs. [Sections 3003;
302; 303; 307]
3009; 3106]
b. The AID Administrator has 45 days to
b. Increases the time for decisions
b. Increases, to 120 days, time
b. Increases, to 120 days, time
decide on Title II proposals submitted by
from 45 to 120 days. [Section 307]
the Administrator has to decide
the Administrator has to decide
eligible organizations or U.S. field
on Title II proposals. Contains
on Title II proposals; clarifies
missions. [Section 207 of P.L. 480]
other timelines for finalizing
that the period begins after

CRS-93
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
progr am agreem ent s and
submission of the proposal to
announcing programs each year.
AID Administrator, who is
Permits USDA to approve an
encouraged to make decisions
agreement that provides for direct
on proposals within that period.
delivery of commodities to
Deletes Senate provision on
foreign milling or processing
direct delivery of commodities.
facilities that are more than 50%
[Section 3007]
U.S.-owned, with cash proceeds
t r a n s f e r r e d t o e l i g i b l e
organizations for carrying out
projects. [Section 307]
c. Authorizes $2 million in each of
c. Extends authorization through
c. Extends authorization through
c. Extends authorization
FY2001 and FY2002 to “preposition”
FY2011. [Section 307]
FY2006. [Section 311]
through FY2007. [Section
food aid commodities in the U.S. and
3010]
foreign countries. [Section 407 of P.L.
480]
d. Authorizes appropriations of up to $3
d. Extends authorization through
d. Extends authorization through
d. Extends authorization
million annually through FY2002 for
FY2011. [Section 307]
FY2006. [Section 308]
through FY2007. [Section
grants to PVOs and U.S. non-profits for
3008]
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
e. Adopts the Senate provision
establish a “micronutrient fortification”
ongoing program through
through FY2007 with technical
pilot program; authority expires in
FY2006. [Section 313]
corrections, and includes
FY2002. [Section 415 of P.L. 480]
language aimed at improving
and insuring quality of fortified
food aid commodities. [Section
3013]

CRS-94
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
f. Lamb to Afghanistan . No provision.
f. No provision.
f. Permits President to establish,
f. As part of required report to
under Title II, a “pilot emergency
Congress within 120 days on
relief program to provide live
use of perishable commodities,
lamb to Afghanistan.” [Section
Secretary of Agriculture must
309.]
report on feasibility of
transporting lambs and other
live animals in food aid
programs. [Section 3207]
4. Certified Institutional Partners
No provision in current law. Currently
No
provision.
Requires AID or USDA,
as
For Title II Food for Peace,
PVOs and cooperatives generally must
applicable, to establish a process
AID Administrator must
undergo the same application procedures
enabling PVOs and cooperatives
establish, within 1 year,
to participate in various food aid
that can demonstrate their
streamlined guidelines and
programs each time they apply.
capacity to carry out the programs
application procedures and, by
(under P.L. 480; Section 416; or
FY2004, incorporate, to the
Food for Progress) to qualify as
maximum extent practicable,
“certified institutional partners,”
the changes. Requires
which would entitle them to use
consultation with stakeholders
s t r e a m l i n e d a p p l i c a t i o n
and Congress, and a report to
procedures, including expedited
Congress within 270 days on
review and approval to receive
improvements. [Section 3002].
commodities for use in more than
For Food for Progress and
one country. [Sections 302; 325;
S e c t i o n 4 1 6 , r e q u i r e s ,
334]
respectively, the President and
Secretary of Agriculture, within
270 days, to review and make
any needed changes in rules and
p r o c e d u r e s a i m e d a t
s t r eam l i n i n g ap p l i cat i o n
p r o c e d u r e s , i n c l u d i n g
consideration of pre-screening

CRS-95
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
organizations and proposals;
requires consultations with
Congress. [Section 3106;
Section 3201].
5. Farmer-to-Farmer Program
Requires that no less than 0.4% of P.L.
Extends funding authority at current
Extends funding authority
Extends funding authority
480 funds be used to provide U.S.
0.4% through FY2011. [Section
through FY2006, and increases
through FY2007, and increases
farmers and other agricultural experts
307]
minimum funding to 0.5% of P.L.
minimum funding to 0.5% of
technical assistance in developing, middle
480 funds. [Section 314]
P.L. 480 funds. Farmers for
income and emerging market countries.
Africa and Caribbean Basin
[Title V of P.L. 480 as amended by
Program is incorporated into
Sections 224 and 277 of the FAIR Act of
this title (see No. 10, below, for
1996]
details). [Section 3014]
[Note: renames program “John
Ogonowski Farmer-to-Farmer
Program.”]
6. CCC (Section 416) Surplus
Donations
Permanent law authorizes the use of
Maintains current law, and requires
Maintains current law, and
Adopts House language
CCC-owned surplus commodities for
USDA to publish in the Federal
permits USDA to approve an
regarding October 31 and
overseas donations. [Section 416(b) of
Register, by each October 31, an
agreement that provides for direct
December 31 deadlines. Omits
the Agricultural Act of 1949 as amended]
estimate of Section 416 commodities
delivery of commodities to
Senate provision on direct
to be made available for the fiscal
foreign milling or processing
delivery of commodities.
year. Also encourages Section 416
facilities that are more than 50%
[Section 3201]
program agreements to be finalized
U.S.-owned, with cash proceeds
by December 31. [Section 303]
t r a n s f e r r e d t o e l i g i b l e
organizations for carrying out
projects. [Section 334]
7. Bill Emerson Humanitarian Trust
Authorizes, through FY2002, a trust
Extends the Trust through FY2011.
E x t e n d s t h e T r u s t t h r o u g h
Ex t end s t h e Tru s t through

CRS-96
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
totaling not more than 4MMT of wheat,
[Section 309]
FY2006. [Section 331]
FY2007. [Section 3202]
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
a. Reauthorizes FFP under a new
a. Reauthorizes FFP through
countries that have committed to expand
FY2011. [Section 302]
Title VIII of the 1978
FY2007 under existing law (i.e.,
free enterprise in their agricultural
Agricultural Trade Act called
not a new Title VII).
economies; commodities may be
“Food for Progress and Education
Encourages President to finalize
provided under Title I of P.L. 480 or
Programs,” authorized through
agreements before beginning of
Section 416(b) authorities, or using CCC
FY2006. Permits USDA to
relevant fiscal year. Requires
funds. Authority expires December 31,
provide agricultural commodities
him to submit to Congress by
2002. [Section 1110 of the Food Security
to support introduction or
each December 1 a list of
Act of 1985 as amended by the FAIR Act
expansion of free trade enterprises
programs, countries, eligible
of 1996]
in recipient country economies,
commodities, and transportation
and to provide food or nutrition
and administrative costs for the
assistance. [Section 325]
y e a r . D e f i n e s e l i g i b l e
commodities. Incorporates a
definition section into the
statute; establishes program
purposes and quality assurance
requirements; and requires
President to ensure that eligible
organizations are optimizing
use of donated commodities.
[Section 3106]

CRS-97
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
b. Annual limits on CCC funds for
b. Increases annual limits on
b. Permits up to $55 million per
b. Increases annual limits on
administrative costs and for commodity
administrative costs to $15 million,
year to be used for transportation,
administrative costs to $15
transportation costs are $10 million and
and on transportation costs to $40
administrative, processing, and
million, and on transportation
$30 million, respectively.
million. [Section 302]
related costs. [Section 325]
costs to $40 million. [Section
3106]
c. Annual limit on commodity assistance
c. Increases annual limit on
c. Sets an annual minimum
c. Annual minimum tonnage
is 500,000MT.
commodities to 1 million MT. Also,
tonnage requirement for FFP of
requirement: “not less than
excludes from the tonnage limit
400,000MT through FY2006,
400,00MT may be provided”
those commodities furnished on a
using the CCC. In addition,
through CCC. Excludes, from
grant basis or on credit terms under
authorizes the appropriation of
the current annual tonnage
Title I. [Section 302]
such sums as may be necessary to
limits, those commodities
carry out FFP, plus permits the
furnished on a grant basis or on
use of P.L. 480 Title I funds. All
credit terms under P.L. 480
commodities and related expenses
Title I. [Section 3106]
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-
Requires establishment of an
Permits President to establish
projects have been operated within
Robert Dole International Food for
International Food for Education
t h e M c G o v e r n - D o l e
broader PVO and United Nations World
Education and Child Nutrition
and Nutrition Program whereby
In t e r n a t i o n a l F o o d f o r
Food Program (WFP) food aid portfolios.
Program whereby the President is
the Secretary of Agriculture may
Education and Child Nutrition
Clinton Administration initiated a pilot
permitted to direct the provision of
provide commodities and
Program, with mandatory
global food for education initiative
U.S. agricultural commodities and
technical and nutrition assistance
funding from CCC of $100
whereby USDA has committed to provide
financial and technical assistance for
for programs that improve food
million in FY2003 to continue
up to $300 million (under Section 416
foreign preschool and school feeding
security and enhance educational
existing pilot projects; and
authority) for commodities and
programs to reduce hunger and
opportunities for preschool and
subject to appropriations in
transportation costs for school and pre-
improve literacy (particularly among
primary school children in
FY2004-2007. Eligible costs
school nutrition projects and related
girls), and nutrition programs for
recipient countries. CCC
include commodity acquisition,
activities in developing countries.
pregnant and nursing women and
authority and funds of not more
processing, transportation,

CRS-98
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
Approved projects conducted through the
young children. Authorizes the
than $150 million shall be used in
handling (including specified
WFP, PVOs, and eligible foreign
appropriation of such sums as may
each of FY2002-2005. Eligible
in-country costs if President
governments using USDA discretionary
be necessary each year through
organizations include PVOs,
makes certain determinations).
authorities. [General authority under
FY2011. Gives President authority
cooperatives, nongovernmental
E l i g i b l e o r g a n i z a t i o n s :
Section 416]
to designate the federal agency to
organizations, and foreign
c o o p e r a t i v e s , P V O ’ s ,
administer program; defines eligible
countries, which are subject to a
i n t e r g o v e r n m e n t a l
recipients to include PVOs,
“graduation requirement” to
organizations, governments of
cooperatives, intergovernmental
provide for continuation of
developing countries and their
organizations, governments and their
program after end of funding.
a g e n c i e s , a n d o t h e r
agencies, and other organizations.
[Section 325]
organizations. Includes Senate
[Section 312]
gra d u a t i o n r e q u i r e m en t ;
program funding priorities and
a p p l i c a t i o n g u i d e l i n e s ;
assurances that recipient
coun t ry production and
marketing are not disrupted.
[Section 3107]
10. Farmers for Africa & Caribbean
Basin
No provision in current law.
Creates a Farmers for Africa and
No provision.
House provision is incorporated
Caribbean Basin Program offering
into the John Ogonowski
grants to eligible organizations to
Farmer-to-Farmer Program,
conduct bilateral exchange programs
w i t h a u t h o r i z a t i o n f o r
utilizing African-American and other
appropriations of up to $10
U.S. farmers and agricultural
million annually through
specialists. Authorizes $10 million in
FY2007. Up to 5% of
annual appropriations annually
appropriation can be used for
through FY2011. [Section 311]
administrative ex pens es.
[Section 3014]

CRS-99
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
11. Terrorism and Foreign Assistance
No provision.
No provision.
Sense of Senate that U.S. foreign
Sense of Congress that U.S.
aid should play increased role in
foreign aid should play
addressing conditions breeding
increased role in addressing
global terrorism. [Section 338]
conditions breeding global
terrorism. [Section 3209]
C. Other Trade Provisions
1. Trade Agreement Compliance
Under the 1994 Uruguay Round
If the Secretary of Agriculture
Same as House bill, but with
If Secretary determines that
Agreement on Agriculture (URAA) the
determines that total spending for
additional language requiring
expenditures will exceed
United States agreed to limit the value of
such commodity support will exceed
annual notifications to Congress
URAA allowable levels for any
trade-distorting U.S. domestic farm
the limits in the URAA, the
on current and following
applicable reporting period,
supports to $19.1 billion per year.
Secretary may make adjustments in
marketing year estimates of
Secretary shall, to the maximum
However, U.S. law itself does not place
the programs to reduce spending to
support to be reported to the
extent practicable, make
an upper limit on such supports.
(but not below) such limits. [Section
World Trade Organization, and
a d j u s t m e n t s i n s u c h
181]
effectively requiring Congress to
expenditures to ensure that they
consider amending (within 18
do not exceed allowable levels.
months) any programs that might
Prior to doing so, Congress
cause the URAA limits to be
must be notified of the
breached. [Section 164]
adjustment types and levels.
[Title I, Section 1601]
2. Technical Assistance for Barriers to
Trade
Various trade agreements discipline
Requires USDA to establish a
A s e c t i o n w i t h i n t h e
Requires USDA to establish,
countries’ use of sanitary and
“Technical Assistance for Speciality
Biotechnology and Agricultural
outside of the Biotechnology
phytosanitary (SPS) and other technical
Crops” program, providing direct
Trade Program (see below)
and Agricultural Trade Program
barriers to trade, used by countries to
assistance through public and private
directs USDA to assist U.S.
(see below), a “Technical
protect their consumers, agricultural and
projects and technical assistance, to
e x p o r t e r s h a r m e d b y
Assistance for Specialty Crops”
natural resources. USDA agencies, the
help overcome the “unique barriers”
“unwarranted and arbitrary”
program providing direct
U.S. Trade Representative, and other
— such as SPS and related barriers
barriers to trade due to marketing
assistance through public and

CRS-100
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
federal agencies have established
— inhibiting exports of U.S.
of biotechnology products, food
private projects and technical
mechanisms for identifying such barriers
specialty crops (e.g., fruits,
safety, disease, or other SPS
assistance to remove, resolve, or
and attempting to resolve disputes over
vegetables). Requires use of $3
c o n c e r n s ; a u t h o r i z e s
mitigate SPS and related
them. [various laws]
million annually in CCC funds
appropriations of $1 million
barriers to exports of U.S.
through FY2011. [Section 310]
annually through FY2006.
specialty crops. Requires use of
[Section 333]
$2 million annually in CCC
resources through FY2007.
[Section 3205]
3. Biotechnology and Agricultural
Trade Program
No provision.
No provision.
Requires USDA to establish a
Establishes a Biotechnology
Biotechnology and Agricultural
and Agricultural Trade
Trade Program to address the
Program, using technical
market access, regulatory, and
assistance and public and
marketing issues related to
private sector project grants, to
exports of U.S. agricultural
remove, resolve, or mitigate
biotechnology products. Requires
significant regulatory nontariff
CCC to make available $15
barriers to U.S. exports
million for the program annually
involving: agricultural
through FY2006. [Section 333]
commodities produced through
biotechnology; food safety;
disease; or other SPS concerns.
Authorizes appropriations of $6
million annually through
FY2007. [Section 3204]
4. Trade Negotiating Objectives
No provision.
Sense of Congress provision also
Senate provision, changed to be
U.S. is now in multilateral negotiations to
contains an explicit description of
a Sense of Senate rather than
reform further the terms of agricultural
agricultural trade negotiating
Sense of Congress. [Section
trade in place under the 1994 Uruguay
objectives. [Section 336]
3210]
Round Agreement on Agriculture.

CRS-101
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
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
No provision.
Authorizes appropriations ($1
Requires Secretary to maintain
Various federal agencies routinely
million for each of FY2002-2004
a website with information to
provide market intelligence, trade data,
and $500,000 for each of
a s s i s t U . S . agricultural
and other information aimed at helping
FY2005-2006) for an “Exporter
exporters. No appropriations
U.S. agricultural exporters find,
Assistance Initiative” to create an
authorized. [Section 3101]
understand, and sell into overseas
Internet website providing a
[Note: extensive conference
markets. For example, both USDA’s
single source of information from
report langu age d i rect s
Economic Research Service and Foreign
all federal agencies to help U.S.
Secretary to improve FAS web-
Agricultural Service maintain written and
agricultural exporters. [Section
based information.]
web-based publications and data series
326]
containing much of this information
.[various laws]
6. Cuba Trade Sanctions
No provision.
Lifts restrictions on private
No provision.
FY2001 agriculture appropriations law
financing of agricultural sales to
codified the lifting of unilateral sanctions
Cuba [Section 335]
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 Agriculture, Rural Development,
Food and Drug Administration and
Related Agencies Act, 2001]

CRS-102
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
7. New Studies and Reports
a. Requires USDA to study and
a. No provision.
a. Requires study in House bill,
a. Services provided by USDA’s Foreign
report to Congress within 1 year on
but only of fees for services
Agricultural Service are generally
the feasibility of a program charging
beyond those already provided
taxpayer-funded.
fees to pay for providing commercial
by FAS as part of an overall
services abroad on matters under
market development strategy
USDA’s Foreign Agricultural
for a particular country or
Service. [Section 313]
region. [Section 3208]
b. Secretary of Agriculture is required to
b. Requires USDA to report to
b. No provision.
b. Requires USDA to consult
develop a long-term agricultural trade
Congress within 1 year on national
with relevant congressional
strategy every 3 years. Subsequent farm
export strategy. [Section 314]
committees on Global Market
bills have provided more explicit
Strategy within 180 days of
guidance on trade strategy goals and
enactment and every 2 years
procedures. [Agricultural Trade Act of
after that. [Section 3206]
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.
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
d. Requires USDA to report to
Congress within 120 days on
Congress within 120 days on
transportation, infrastructure, and
implications of storage and
funding deficiencies that have
transportation capacity and
limited the use of perishable
funding for use of perishable
commodities in food aid
a n d s e m i p e r i s h a b l e
programs. [Section 337]
commodities in food aid
programs. [Section 3207]

CRS-103
AGRICULTURAL TRADE
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2006
8. Country of Origin Labeling;
Grading
a. Requires retailers other than
a. Requires retailers other than
a. Requires retailers other than
a. Most imports, including many food
restaurants and other food service
restaurants and other food service
restaurants and other food
items, must bear labels informing the
establishments to inform consumers
establishm ents to inform
service establishments to inform
final purchaser of their country of origin.
of the country of origin of
consumers of the country of
consumers of the country of
However, certain “natural products”
“ p e r i s h a b l e a g r i c u l t u r a l
origin of ground and muscle cuts
origin of ground and muscle
including fresh fruits, vegetables, nuts,
commodities” (fresh or fresh frozen
of beef, lamb and pork, of wild
cuts of beef, lamb, and pork, of
live and dead animals (e.g., meats), and
fruits and vegetables) through labels,
and farm-raised fish, of
farm-raised and wild fish, of
fish, among others, generally are
marks, or other in-store information;
p e r i s h a b l e a g r i c u l t u r a l
p e r i s h a b l e a g r i c u l t u r a l
exempted. [Section 304 of the Tariff Act
specifies the daily fines for
commodities, and of peanuts,
commodities, and of peanuts,
of 1930 as amended; Federal Meat
violations. [Title IX, Section 944]
through labels, marks, or other in-
through labels, marks, or other
Inspection Act and Poultry Products
store information. Defines what
in-store information. Defines
Inspection Act as amended]
is meant by country of origin for
what is meant by country of
each of these categories;
origin for each category (e.g.,
authorizes the Secretary to set up
meats must be from animals
a record-keeping system;
born, raised and slaughtered in
authorizes but does not specify
the United States); includes
fines for violations. [Title X,
language on implementation
Section 1001]
and enforcement. Program is
voluntary beginning September
30, 2002, and mandatory
beginning September 30, 2004.
[Title X, Section 10816]
b. USDA provides fee-based service to
b. No provision.
b. Prohibits imported carcasses,
b. No provision.
the industry to grade both domestic and
meats, or meat food products
imported meat and products based on
from bearing a USDA quality
their quality, and affixes grades to the
grade label. [Title X, Section
products [Agricultural Marketing Act of
1002]
1946 as amended]

CRS-104
IV. NUTRITION PROGRAMS
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
A. Food Stamp Program, Food
Title IV of the Farm Security Act
Title IV of the Agriculture
Title IV of the Farm Security
Stamp Act (FSA)
of 2001
Conservation and Rural
and Rural Investment Act of
Enhancement Act of 2001
2002
1. Child Support
Child support payments are deducted
No provisions.
Allows states to exclude child support
Adopts Senate provision
from the paying household’s income in
payments from income (before
allowing states to exclude or
determining its benefits and eligibility
calculating any deductions) or
deduct child support payments.
— after all income has been counted.
continue to deduct them.
The Secretary may prescribe the
methods to be used to determine the
Lifts some administrative and
Adopts Senate provision
amount of the deduction.
reporting requirements on program
requiring the Secretary to
[Section 5(e)(4) of the FSA)]
operators and recipients by (1)
establish simplified procedures
requiring the Secretary to establish
that allow states to use
simplified procedures for determining
information from state child
the amount of child support payments
support enforcement agencies.
that allow states to use information
No provision as to freezing the
from state child support enforcement
amount of any child support
agencies and (2) permitting states to
exclusion/ deduction.
freeze the amount of any child support
[Section 4101]
e x c l u s i o n / d e d u c t i o n u n t i l a
household’s eligibility is redetermined.
[Section 411]
2. Definition of Income
For determining eligibility and
Allows states to conform food stamp
Same as the House bill, with minor
Adopts Senate provision adding
benefits, household income excludes:
income exclusions with those of
and technical differences.
new income exclusions.
noncash income, most education
other major assistance programs and
[Section 412]
[Section 4102]

CRS-105
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
as s i s t a n c e , l o a ns , m os t re-
lift some administrative and
imbursements for expenses, money
reporting requirements on program
received for third parties, non-
operators and applicants/recipients
recurring lump-sum payments, the cost
by adding new income exclusions:
of producing self-employment income,
(1) education assistance and “state
federal energy assistance benefits,
complementary assistance program
certain payments related to supporting
p a ym ent s ” e x c l u d e d u n d e r
work efforts, and income excluded by
Medicaid; and
other federal laws.
(2) any other types of income a state
[Section 5(d) of the FSA]
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
Establishes fixed multiple standard
Establishes multiple standard
Establishes multiple standard
benefits and eligibility, all households
deductions equal to 9.7% of the
deductions equal to an increasing
deductions equal to 8.31% of the
are allowed a “standard deduction”
federal poverty income guideline
percentage of the inflation-indexed
inflat i o n -index ed poverty
from counted income. It is $134 a
amounts used for food stamp income
poverty guideline amounts. For FYs
guideline amounts. Requires
month for the 48 contiguous states and
eligibility determinations in FY2002.
2002-2004, the new standard
that the new standard deductions
the District of Columbia, $229 for
The new standard deductions would
deductions would equal 8% of each
not be less than the current
Alaska, $189 for Hawaii, $269 for
not increase over time. Requires that
year’s poverty guideline amounts.
amount for each jurisdiction or
Guam, and $118 for the Virgin Islands.
the new standard deductions not be
This percentage would rise, in stages,
greater than 8.31% of the
[Section 5(e)(1) of the FSA]
less than the current amount for each
to 10% for FY2011 and following
poverty amount for 6-person
jurisdiction or greater than 9.7% of
years. Requires that the new standard
households. [Section 4103]
the FY2002 poverty guideline
deductions not be less than the current
[Note: Standard (and other) deductions
amount for 6-person households.
amount for each jurisdiction or greater
[Note: The conference agreement
increase benefits by reducing the
[Section 402]
than the applicable percentage (see
effectively takes the House
amount of income counted when
above) of the poverty amount for 6-
proposal for a fixed percentage
calculating them. They also may
[Note: Poverty guideline amounts
person households. [Section 171(c)]
of the poverty amounts and the
affect eligibility because “net”
vary by household size and are
[Note: The House bill would initially
Senate proposal to allow for

CRS-106
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
household income (after deductions) is
inflation-indexed annually. In both
provide higher deduction levels. But
inflation indexing.]
a factor in some income eligibility
the House and Senate measures, the
the Senate measure would, over time,
decisions.]
new standard deductions would vary
result in somewhat higher deductions
by household size and would be
because it is keyed to each year’s
somewhat higher than current law.]
inflation-indexed poverty guideline
amount (not fixed at the FY2002
level).]
4. Shelter Costs
a. Households are entitled to an
a. No provision.
a. Increases the cap on the amount that
a. No provision affecting the cap
“excess shelter expense deduction” for
may be claimed as an excess shelter
on excess shelter expense
a portion of their shelter expenses (if
expense deduction. For FY2003, the
deductions.
they are very high in relation to their
cap would rise to $390 a month for the
income). As with the standard
48 states and the District of Columbia
deduction (see above), this deduction
(with commensurate increases for
reduces households’ counted income
Alaska, Hawaii, Guam, and the Virgin
(thereby increasing benefits) and can
Islands). For FY2004-FY2009, each
affect eligibility determinations.
amount would be annually adjusted for
inflation. Effective with FY2010, all
The amount that may be claimed as an
caps would be eliminated. [Section
excess shelter expense deduction is
169(c)]
“capped” for households without an
elderly/disabled member. The cap is
indexed for inflation, and, for 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]

CRS-107
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
b. By regulation, only payments
b. No provision.
b. Mandates that any required payment
b. No provision as to payments
directly related to shelter may be
to a landlord be treated as a shelter
to landlords.
counted when calculating the excess
cost — without regard to the specific
shelter expense deduction.
charge it covers. [Section 414]
c. States may develop (and must
c. Permits homeless households not
c. Adopts Senate provision as to
document) a shelter “allowance — not
c. No provision.
receiving free shelter throughout the
homeless households.
to exceed $143 a month — that
month to claim a standard deduction
[Section 4105]
homeless households not in free
from income ($143 a month) — in lieu
shelter throughout the month can use
of a shelter expense deduction.
(like a deduction) when their income is
R epeal s t he current shel t er
calculated for benefit purposes.
“allowance.” [Section 414]
[Section 5(e)(5) of the FSA]
d. “Standard utility allowances”
d. Allows states choosing to make
d. Adopts Senate provision as to
(SUAs) are used to figure shelter costs
d. No provision.
SUAs mandatory to do so for all
SUAs.
for the excess shelter expense
households incurring heating or
[Section 4104]
deduction. States may make their use
cooling expenses — without regard to
mandatory for all households. SUAs
the current metered public housing and
may not be used for households that
expense pro-rating rules. [Section 415]
(1) live in certain centrally metered
public housing or (2) share expenses
with others (unless expenses are pro-
rated). [Section 5(e)(7) of the FSA]
6. Calculating Earned Income
By regulation, whenever income is
No provision.
Eases some administrative and
No provision.
received on a weekly or bi-weekly
reporting requirements on program
basis, the state must convert it to a
operators and recipients by allowing
monthly amount — by multiplying
states more leeway in how they
weekly income by 4.3 and bi-weekly
convert weekly/bi-weekly income to
income by 2.15 or using the state’s
monthly amounts — as long as they

CRS-108
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
public assistance conversion standard.
make adjustments to ensure cost-
neutrality. [Section 416]
7. Establishing Deductions
By regulation, states must adjust
No provision.
Lifts significant administrative and
Adopts Senate provision
households’ benefits for most changes
reporting requirements on program
allowing states to disregard
in circumstances/ expenses that affect
operators and recipients by allowing
many changes in household
the amount of deductions (and thereby
states to disregard many changes in
circumstances/expenses.
benefits) they may receive.
household circumstances/expenses that
[Section 4106]
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
No
provision.
Adds households with
disabled
Adopts Senate provision as to
those with total counted liquid
members to those covered by the
households with disabled
resources (assets) of $2,000 (or $3,000
$3,000 asset limit. [Section 171(c)]
members. [Section 4107]
for households with elderly members).
Resources that are excluded include
Allows states to conform food stamp
Adopts Senate provision
items such as: a household’s home and
resource (asset) rules with those of
permitting states to exclude
personal belongings/ furnishings, life
other major assistance programs and
resources they do not consider
insurance, income-producing property,
lift some administrative requirements
under their TANF or Medicaid
some retirement accounts, and (to a
on program operators and recipients by
programs. [Section 4107]
varying degree) the value of vehicles.
permitting states to exclude any types
[Section 5(g) of the FSA]
of resources they do not consider when
judging eligibility under their TANF
or Medicaid programs — with
exceptions set by the Secretary.
[Section 418]

CRS-109
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
9. Issuance Systems in Disasters.
Emergency food stamp benefits are
No provision.
Allows the Secretary to issue disaster
Adopts Senate provision as to
required in the case of disasters.
assistance in the form of cash when
disaster assistance.
Benefits can be issued through coupon
o t h er i s s u a n c e s ys t e m s a r e
[Section 4108]
allotments or electronic benefit
impracticable. [Section 419]
transfer (EBT) systems.[Section 5(h)
of the FSA]
10. Reporting Requirements for
Households.
With some exceptions, most recipient
No
provision.
Lifts some administrative
and
Adopts Senate provision
households must report significant
reporting requirements on program
allowing states to require
changes in their circumstances as they
operators and recipients by allowing
reporting as infrequently as
occur, those with earnings may report
states to require households to report
every 6 months.
every 6 months, and certain others
most changes in their circumstances as
[Section 4109]
may report quarterly. [Regulations &
infrequently as every 6 months — in
Waivers under Section 5(c) of the
lieu of other reporting requirements.
FSA]
[Section. 420]
11. Able-Bodied Adults Without
Dependents (ABAWDs)
ABAWDs are ineligible if, during the
No
provision.
Eases work requirements
for
No provision.
preceding 36 months, they received
ABAWDs by: changing the “3-
benefits for 3 months without (1)
months-out-of-36-months” rule to
working 20+ hours a week, (2)
make ABAWDs ineligible if, during
participating in a work program 20+
the preceding 24 months they received
hours a week, or (3) participating in a
benefits for 6 months while not
workfare program.
meeting 1 of the 3 work-related
ABAWDs denied eligibility under this
requirements, and by changing the rule
“3-months-out-of-36-months” rule can
for regaining eligibility to provide

CRS-110
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
regain it if they meet 1 of 3 work-
eligibility whenever ABAWDs meet 1
related requirements for a full month.
of the 3 work-related requirements.
Qualifying “work programs” do not
Changes the definition of “work
include job search or job search
program” to include job search or job
training. [Section. 6(o) of the FSA]
search training. [Section. 421]
12. Access through Electronic
Benefit Transfer (EBT) Systems
By regulation, states may take benefits
No provision.
Requires that benefits provided
No provision.
provided through EBT systems “off-
through EBT systems not be made
line” after 3 months of inactivity in the
inaccessible until at least 6 months
recipient’s EBT account.
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
No
provision.
Deletes the current EBT
“cost-
Adopts Senate provision deleting
exceed those of the prior issuance
neutrality” requirement.
cost-neutrality requirement.
system. [Section 7(i)(2)(A) of the FSA]
[Section 423]
[Section 4110]
14. Group Living Facilities
a. Where recipients live in substance
a. No provision.
a. In the case of recipients living in
a. Allows the Secretary to
abuse treatment centers, states may
substance abuse treatment centers,
a u t h o r i z e n a t i o n w i d e
require them to designate the center as
small group homes for the disabled, or
implementation of new methods
their authorized representative and
shelters for battered women/children
of calculating and issuing
provide their benefits to the center.
or the homeless, permits states to use
standardized benefits for
[Section 8(e) of the FSA]
new methods of calculating and
recipients in substance abuse
issuing standardized benefits. [Section
centers, group homes for the
424]
disabled, or shelters — at the
conclusion of pilot projects to
test the feasibility of these new
methods. [Section 4112]

CRS-111
NUTRITION PROGRAMS
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SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
b. Without a waiver, group living
b. Allows the Secretary to authorize
b. Adopts Senate provision
facilities may not redeem food stamp
b. No provision.
group living facilities to redeem food
allowing group living facilities
benefits through direct (on-site) use of
stamp benefits through direct use of
to redeem benefits through direct
EBT cards. Recipients’ EBT cards
EBT cards. [Sec. 425]
use of EBT cards.
must be presented and used at
[Sec. 4113]
approved retail food outlets. [Sec. 10
of the FSA]
15. Food Stamp Applications
States have responsibility for
No provision.
Requires that states make food stamp
Adopts Senate provision for
d e v e l o p i n g f o o d s t a m p
applications available on their Internet
applications on Internet websites,
applications.[Section 11(e)(2)(B) of the
websites. [Section 426]
effective 18 months after
FSA]
enactment.
[Section 4114]
16. Continuing Eligibility
Eligible households are assigned
No provision.
Replaces assigned certification periods No provision.
“certification periods” of up to 12
and rules governing recertification
months (or 24 months for the elderly
with new “eligibility review periods”
or disabled). At the end of a
under which states would periodically
cert i fi cation period, specifi c
review the eligibility status of recipient
procedures must be followed to
households following procedures set
“recertify” a household and continue
by the state. [Section 427]
issuing benefits.[Sections 3(c) & 11(e)
[Note: These provisions would lift
of the FSA]
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.]

CRS-112
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
17. Transitional Food Stamp
Benefits
Regulations permit 3 months’
Lifts significant administrative and
Same as the House bill, except that
Permits states to provide
“transitional food stamp benefits” for
reporting requirements of program
(similar to current policy) transitional
transitional food stamp benefits
h o u s e h o l d s l e a v i n g T A N F .
operators and recipients by explicitly
benefits would be adjusted upward for
to households leaving TANF for
Transitional benefits generally are
permitting states to provide
the loss of TANF cash aid or any
up to 5 months. The transitional
adjusted for any loss of income on
expanded transitional food stamp
reported changes in household
benefit amount is the amount
leaving TANF and reported changes in
benefits to households leaving
circumstances that would increase
received prior to leaving TANF,
circumstances that would increase
TANF. Food stamps could
food stamp benefits. [Section 429]
adjusted for loss of TANF
benefits.
automatically be continued for 6
income and (at state option) for
months at the level the household
information received from
was receiving immediately prior to
another program in which the
leaving TANF. [Section 403]
household participates. [Section
4115]
18. Notices to Retailers
“Adverse action” notices must be
No provision.
Permits notices to be delivered to
Adopts Senate provision as to
delivered to retailers by certified mail
retailers by any form of delivery that
notices to retailers.
or personal service.
provides evidence of delivery.
[Section 4117]
[Section 14(a)(2) of the FSA]
[Section 430]
19. Quality Control (QC) System &
Bonus Payments
a. The Food Stamp program’s QC
a. Substantially changes the QC
a. Same as the House bill, except that
a. Ends added federal funding for
system measures the degree to which
system as it relates to fiscal sanctions
it reduces, then ends, added federal
states with error rates below 6%.
states make erroneous benefit and
by raising the threshold above which
funding for states with error rates
Raises the threshold above which
eligibility decisions. State “error
states are sanctioned to the national
below 6%, and requires the Secretary
states are held liable to 105% of
rates” reported from annual QC sample
average error rate, plus 1 percentage
to conduct annual “investigations” of
the national average. Requires a
surveys are used to (1) provide
point. Requires a statistical
states with error rates above the new
statistical adjustment to
financial rewards to states with very
adjustment to individual state error
(higher) threshold and fine them if
individual state error rates that

CRS-113
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
low error rates and (2) assess fiscal
rates that effectively lowers all state
they are found to be seriously
effectively lowers all state error
sanctions on states having high error
error rates. Provides that sanctions
negligent in their administration of the
rates. Effectively penalizes only
rates. Each year, states with total error
will not be assessed until a state has
Food Stamp program. [Section 431]
states with persistent (over 3
rates below 6% receive added federal
been above the new (higher)
years) high error rates. Makes
matching money for administration.
threshold for 3 consecutive years.
states liable for amounts equal to
States with error rates above the
Sanctions states based on how far
10% of the value of erroneous
national average are assessed fiscal
they are above a 10% error rate in
benefits above 6% , calculated
sanctions based on how far above the
the 3rd year. [Section 404]
for the 2nd consecutive year in
national average they are.
which a state exceeds the
threshold. Authorizes the
Secretary to resolve states’
liability amounts by (1)
requiring them to invest up to
50% of the amount in
administrative improvements, (2)
placing up to 50% of the amount
“at risk” for collection in the
next year, or (3) waiving any
amount. If a state fails to reduce
its error rate for a 3rd consecutive
year, the “at-risk” amount is
collected.
[Section 4118]
b. The Secretary has established a
b. No provision
b. Establishes in law a requirement to
b. No provision.
policy whereby assessed sanctions are
adjust all states’ error rates to account
reduced for states serving high
for high proportions of error-prone
proportions of households with earners
households. [Section 431]
or non-citizens (“error-prone”
households).
c. Federal reviews of QC error-rate
c. No provision.
c. Changes current-law deadlines to
c. Adopts Senate provision

CRS-114
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
determinations and arbitration of
May 31st and June 30th. [Section 432]
changing deadlines.
federal-state differences must be
[Section 4119]
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
d. Requires the Secretary to measure
d. Requires the Secretary to measure
d. Requires the Secretary to
f e d e r a l f u n d i n g ( “ e n h a n c e d
states’ performance with respect to
states’ performance with respect to (1)
measure states’ performance
administrative cost-sharing”) for
(1) compliance with deadlines for
serving working poor households with
with respect to (1) actions taken
states with error rates below 6%.
prompt determination of eligibility
children and (2) 4 additional measures
to correct errors, reduce rates of
and the issuance of benefits and (2)
set by the Secretary in consultation
error, and improve eligibility
the percentage of negative eligibility
with the National Governors
determinations and (2) other
decisions that are made correctly.
Association, the American Public
i n d i c a t o r s o f e f f e c t i v e
Each year, requires the Secretary to
Human Services Association, and the
administration determined by the
make “excellence bonus payments”
National Conference of State
Secretary. Requires the
of $1 million each to (1) the 5 states
Legislatures. Each year, requires the
Secretary to make performance
with the highest combined
Secretary to make “high performance
bonus payments totaling $48
performance in the 2 measures noted
bonus payments” totaling $6 million
million a year to states that meet
above and (2) the 5 states whose
for each of the 5 measures noted
the Secretary’s standards for
combined performance in the 2
above. Reduces, then ends funding for
high or most improved
measures is most improved. Retains
states with error rates below 6%.
performance. Ends added
funding for states with error rates
[Section 433]
federal funding for states with
below 6%. [Section 404]
error rates below 6%.
[Section 4120]
20. Grants for Simple Application
and Eligibility Systems and
Improved Access to Benefits
No provision.
Requires the Secretary to spend up to
Authorizes grants to states and other
Requires the Secretary to spend
$9.5 million a year to pay states the
entities to pay the federal share (75%)
up to $5 million a year to make

CRS-115
NUTRITION PROGRAMS
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SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
full cost of developing and
of the cost of projects to improve
grants to states and other entities
implementing simple application and
access to food stamp benefits or
covering the full cost of projects
eligibility determination systems.
outreach to eligible individuals.
to (1) improve program access
[Section 405]
Authorizes appropriations totaling $3
for eligible households or (2)
million.
develop and implement simple
[Section 438]
food stamp application and
eligibility determination systems.
[Section 4116]
21. Employment and Training
(E&T) Programs
a. Through FY2002, food stamp law
a. Extends the requirement for
a. Extends the requirement for
a. Extends the requirement for
requires unmatched federal funding for
unmatched federal funding for E&T
unmatched federal funding for E&T
unmatched federal E&T funding
E&T programs for food stamp
programs through FY2011. Sets the
programs through FY2006. Sets the
at $90 million a year through
recipients. For each year, specific
amount at the current FY2002 level
amount at $90 million a year, available
FY2007. Rescinds the unspent
amounts are provided (e.g., a total of
(a total of $165 million a year).
until expended. Rescinds the unspent
carryover balance.
$ 1 6 5 m i l l i o n f o r F Y 2 0 0 2 ) .
[Section 406(a)]
carryover balance.
[Section 4121]
Unmatched money is available until
expended (about $300 million is now
unspent).
b. States must use at least 80% of their
b. No provision.
b. In addition to the $90 million noted
b. Adopts Senate provisions (1)
total allocation of unmatched federal
above, provides up to $25 million a
for funding of ABAWD services
funds for services to ABAWDs.
year for services to ABAWDs.
(but limits it to $20 million a
Eliminates the current-law “80%”
year) and (2) eliminating the
requirement for services to ABAWDs.
“80%” requirement. [Section
4121]
c. To receive a portion of their federal
c. No provision.
c. Eliminates the current-law
c. Adopts Senate provision
funds allocation (e.g., $75 million in
“maintenance of effort” requirement.
eliminating the “maintenance of
FY2002), states must maintain their
effort” requirement.
E&T spending at the FY1996 level.
[Section 4121]

CRS-116
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
d. The Secretary may set specific
d. No provision.
d. Ends the Secretary’s authority to set
d. Adopts Senate provision
dollar amounts that the federal
per-placement funding amounts.
ending authority to set per-
government will pay for each E&T
placement funding amounts.
program placement.
[Section 4121]
e. Federal matching funds are provided
e. No provision.
e. Eliminates current-law limits on
e. Adopts Senate provision
for non-child-care E&T participant
federal funding for participant support
eliminating limits on funding for
support costs (e.g., transportation) —
costs.
participant support costs.
i.e., half of all costs up to half of $25
[Section 4121]
per person per month.
[Section 6(d) & 16(h) of the FSA]
[Section 406(a)]
[Sections 169(c) & 434]
[Section 4121]
22. Food Stamp Informational
Activities
States may be barred from using
No provision.
Makes explicit states’ ability to use
No provision. [Note: A federal
TANF funds to conduct food stamp
TANF funds for food stamp
guidance is to be issued to notify
informational (“outreach”) activities.
informational (“outreach”) activities.
states of their ability to use
[Section 16(k) of the FSA]
[Section 436]
TANF funds for food stamp
informational activities.]
23. Pilot Project Waivers
The Secretary may grant waivers from
No provision.
Makes clear that the Secretary may
Adopts Senate provision on
Food Stamp Act rules when carrying
grant waivers from federal food stamp
granting of waivers.
out pilot projects. This authority is
rules in all pilot projects, regardless of
[Section 4123]
unclear for pilot projects implemented
the entity that implements them.
by non-federal entities. [Section 17 of
[Section 437]
the FSA]

CRS-117
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
24. Reauthorization
Expiring at the end of FY2002 are:
Extends expiring authorities through
Extends expiring authorities through
Extends expiring authorities
— appropriations authorizations for
FY2011.
FY2006.
through FY2007 — except for
the Food Stamp program and the Food
[Section 406]
[Section 435]
the authority for outreach pilot
Distribution Program on Indian
projects (see Item #20 above for
Reservations;
similar authority). [Section
— authority to reduce administrative
4122]
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.
[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
a. Extends Puerto Rico’s block grant
a. Consolidates nutrition assistance
a. Consolidates nutrition
program, Puerto Rico receives an
through FY2011, retaining annual
grant funding for Puerto Rico and
assistance grant funding for
annual nutrition block grant,
inflation indexing. Also permits
American Samoa. Mandates the
Puerto Rico and American
authorized through FY2002. It covers
Puerto Rico to use up to $6 million
consolidated grant through FY2006.
S a m oa. M and a t e s t h e
all benefits costs and 50% of any
of its FY2002 grant to pay costs of
The base consolidated grant is $1.356
consolidated grant through
administrative costs and is annually
upgrading electronic systems
billion (FY2002). It is then adjusted
FY2007. The base consolidated
indexed for food price inflation.
without matching the amount.
for food-price inflation beginning with
grant is $1.401 billion (FY2003).
F Y 2 0 0 2 g r a n t a m o u n t i s
[Section 406(f)]
FY2003. Puerto Rico’s annual share is
It is then adjusted for food-price
$1,350,518,000. [Section 19 of FSA]
99.6%. Like House bill, permits
inflation beginning with
Puerto Rico to use up to $6 million in
FY2004. Puerto Rico’s annual
FY2002 for costs of upgrading
share is 99.6%. Permits Puerto
electronic systems. [Section 439]
Rico to use of to $6 million of its

CRS-118
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
FY2002 grant (in either FY2002
or FY2003) for costs
of upgrading electronic systems.
Allows Puerto Rico to carry over
up to 2% of any year’s grant to
the following year. [Section
4124]
b. American Samoa receives annual
b. Extends American Samoa’s grant
b. American Samoa’s share is .4% of
grant covering all expenditures for its
through FY2011. Increases it to
each year’s new consolidated grant.
b. American Samoa’s share is
general nutrition assistance program.
$5.75 million for FY2002 and $5.8
Its current grant is repealed. [Section
.4% of each year’s new
The grant is authorized through
million for later years. [Section
439]
consolidated grant; may carry
FY2002 at $5.3 million a year.
406(g) & (j)]
over up to 2% of any year’s
[Section 24 of the FSA]
grant to the next year. Its current
grant is repealed. [Section 4124]
2 6 . V i t a mi n a n d M i n e r a l
Supplements
Food stamp benefits can be used only
No provision.
Permits the use of food stamp benefits
No provision.
to purchase food items (or, in some
to purchase dietary supplements that
cases, prepared meals). [Section 3(g)
“provide exclusively one or more
of the FSA]
vitamins or minerals.” Requires a
report on the effects of this new
provision. [Section 445]
27. Noncitizens
a. Children — Legal permanent
a. No provision.
a. Makes legal permanent residents
a. Adopts Senate provisions as
residents who were living in the U.S.
under age 18 eligible for food stamps
to legal permanent residents
as of August 22, 1996, and who are
regardless of their date of entry. Also
under age 18 — effective
under age 18 are eligible for food
exempts them from requirements that
October 1, 2003. [Section
stamps.
their sponsor’s financial resources be
4401(b)]
deemed to them in determining food

CRS-119
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
stamp eligibility. [Section 452(a)]
b. Work history requirement — Legal
b. No provision.
permanent residents with a substantial
b. Reduces the work history
b. No provision.
work history (defined as 40 quarters,
requirement to 16 quarters (4 years).
or 10 years) are eligible for food
[Section 452(b)]
stamps.
c. Humanitarian cases — Asylees,
c. No provision.
refugees, Cuban/ Haitian entrants,
c. Removes the 7-year limit on
c. No provision. [Note: The new
c e r t a i n a l i e n s w h o s e
eligibility for humanitarian cases.
5-year residence rule described
deportation/removal is being withheld
[Section 452(c)]
below has the effect of removing
for humanitarian reasons, and
the 7-year limit.]
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 —
d. No Provision
Legal permanent residents who were
d. Makes eligible disabled legal
d. Adopts Senate provision as to
living in the U.S. as of August 22,
permanent residents receiving federal
disabled legal permanent
1996, and who are receiving federal
disability benefits — without regard to
residents receiving federal
disability benefits are eligible for food
their date of entry. [Section 452(d)]
disability benefits — effective
stamps.
October 1, 2002. [Section
4401(a)]
e. No provision.
e. No provision.
e. Makes eligible individuals who
e. Makes eligible individuals
have continuously resided in the U.S.
who have resided in the U.S.
[Section 402(a) of the Personal
legally for a period of 5 years (e.g., as
legally for a period of 5 years
Responsibility and Work Opportunity
l e g a l p e r m a n e n t r e s i d e n t s ,
(e.g., as legal permanent
Reconciliation Act of 1996]
refugees/asylees, but not as temporary
residents, refugees/asylees, but
residents). This new 5-year residence
not as temporary residents) —

CRS-120
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
rule would not apply in the case of
effective April 1, 2003. [Section
aliens who entered the country
4401(c)]
illegally and remain illegally for 1 year
or more (or who have been “illegal
aliens” for 1 year or more), unless they
have continuously resided in the U.S.
for 5 years as of enactment. [Section
170(b) & (c)]
[Note: The changes made for children
in item (a) above would be effective
beginning in FY2004. The 5-year
residence rule noted in item (e) above
would be effective April 2003.]
B. Commodity Assistance Programs
The Food Stamp Act (FSA), the
Title IV of the Farm Security Act of
Title IV of the Agriculture,
Title IV of the Farm Security and
Emergency Food Assistance Act, and
2001.
Conservation and Rural Enhancement
Rural Investment Act of 2002.
the Agriculture and Consumer
Act of 2001.
Protection Act of 1973
1. The Emergency Food Assistance
Program (TEFAP)
a. Commodity Purchases - From
a. Extends the purchase requirement
a. Extends the purchase requirement
a. Extends the purchase
amounts available under the Food
through FY2011; raises the amount
through FY2006 and raises the amount
requirement through FY2007
Stamp Act, the Secretary is required to
to $140 million a year beginning in
to $110 million a year beginning in
and raises the amount to $140
use $100 million a year through
FY2002 and requires the Secretary
FY2002. Same as House bill with
million a year beginning in
FY2002 to purchase commodities for
to use $10 million a year to pay for
respect to $10 million set aside for
FY2002. [Section 4126]
TEFAP. [Section 27 of the FSA]
costs related to processing, storing,
processing, storing, transport and
transporting and distributing
distribution costs. [Section 441]
commodities. [Section 406(i) & (j)]
[Note: Section 166 of the Senate
[Note: The $40 million in

CRS-121
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
amendment requires the Secretary to
additional commodities in
buy not less than $40 million a year in
Section 166 of the Senate
additional commodities for TEFAP
amendment is not included in the
each year through FY2006.]
conference agreement.]
b. Administrative/distribution costs-
b. In addition to $10 million set-
$50 million a year is authorized
aside noted above, extends through
b. Same as the House bill, except the
b. Extends the authorization for
through FY2002 for the costs of
F Y 2 0 1 1 , t h e $ 5 0 m i l l i o n
authorization is extended through
administrative and distribution
administering the program and
authorization for administrative and
2006. [Section 451(d)]
costs through FY2007 and raises
distributing commodities. [Section
distribution costs. [Section 443]
the authorized amount to $60
204(a) of the Emergency Food
million a year. [Section 4204]
Assistance Act]
2. Commodity Supplemental Food
Program (CSFP) and commodity
authorities.
a. Expirations. Expiring at the end of
a. Extends expiring CSFP and
a. Extends expiring CSFP and
a. Extends expiring CSFP and
FY2002 are: authority for the
commodity authorities/requirements
commodity authorities/requirements
c o m m o d i t y a u t h o r i t i e s /
Commodity Supplemental Food
through FY2011. [Sections 441 &
through FY2006. [Section 451]
requirements through FY2007.
Program (CSFP), requirements to
442]
Also requires the Secretary to
provide cheese and nonfat dry milk to
provide funds to permit Montana
the CSFP, requirements for
and Vermont to continue to
commodity processing agreements,
participate in the CSFP at their
and general authority to obtain
originally assigned (FY2000)
commodities to maintain traditional
caseload levels through the
levels of support for various
FY2002 “caseload cycle.”
commodity distribution activities.
[Sections 4201 & 4203]
[Sections 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
b. No provision
b. Replaces the current limit on
b. Replaces the current limit on

CRS-122
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
Secretary is required to pay the CSFP
administrative payments with a
administrative payments with a
administrative costs of state/local
requirement for “grants per caseload
requirement for “grants per
agencies — but may not use more than
slot.” Requires the Secretary to
caseload slot.” Requires the
20% of the CSFP appropriations.
provide each state a grant per assigned
Secretary to provide each state a
caseload slot set — set by law at $50,
grant per assigned caseload slot
[Section 5 of the Agriculture and
indexed beginning in FY2003.
— set at the FY2001 actual
Consumer Protection Act of 1973]
[Section 451]
amount, indexed for FY2003 and
following years. [Section
4201(b)]
3. Use of Approved Food Safety
Technology
No provision.
No provision.
Bars the Secretary from prohibiting the Adopts Senate provision, with
use of “any technology that has been
technical changes. [Section
approved by the Secretary or the
4201(b)(3) & (d)]
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
Adopts Senate provision on use
acquired in the conduct of Commodity
of commodities. [Section 4202]
Credit Corporation (CCC) operations
and any “Section 32” commodities
may be used for any domestic feeding
program. Covered domestic programs
include: TEFAP, and programs

CRS-123
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
authorized under the Richard B.
Russell National School Lunch Act,
the Child Nutrition Act, the Older
Americans Act, or other laws the
Secretary determines appropriate.
This authority would apply to the
extent that the commodities involved
are in excess of those needed to carry
out other obligations (including
quantities otherwise reserved for
specific purposes).
[Section 457]
C. Child Nutrition Programs
Richard B. Russell National School
Title IV of the Farm Security Act of
Title IV of the Agriculture,
Title IV of the Farm Security and
Lunch Act and Child Nutrition Act of
2001
Conservation, and Rural Enhancement
Rural Investment Act of 2002
1966
Act of 2001
1. Commodities for the School
Lunch Program
Beginning with FY2002, any
No provision.
Delays until FY2004, the date by
Adopts Senate provision.
commodities supplied to the School
which bonus commodities supplied to
[Section 4301]
Lunch program are to be counted in
the School Lunch program will count
meeting the requirement that 12% of
toward the 12% requirement — in
all federal school lunch support (cash
effect, mandating that only entitlement
+ commodities) be in the form of
commodities count toward meeting the
commodities. This would include
requirement until then. This was the
commodities provided to meet the
case under pre-FY2002 law. [Section
entitlement (15 cents in value per
453]
lunch) and “bonus” commodities

CRS-124
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
provided at the Secretary’s discretion
[Note: Section 166 of the Senate
[Note: Section 10603 of the
from stocks acquired to support the
amendment requires the Secretary to
conference agreement provides
agricultural economy. [Section 6(e)(1)
provide at least $50 million a year
for at least $50 million a year in
of the Richard B. Russell National
through FY2006 to the Defense
fresh fruit and vegetable
School Lunch Act]
Department (DoD) for the purchase
purchases (through the DoD) for
and distribution of fresh fruits and
schools and institutions in child
vegetables to schools and institutions
nutrition programs.]
participating in child nutrition
programs.]
2. Eligibility for Free and Reduced-
Price School Meals and WIC
Benefits: Military Housing
a. School meals — All military
a. No Provision
a. Through FY2003, requires that, in
a. Adopts Senate provision as to
housing allowances reported on leave
cases where military personnel live in
school meal eligibility and
and earnings statements are counted as
[Note: H.R. 3216 — passed by the
“privatized” housing, their housing
m i l i t a r y p e r s o n n e l i n
income in determining eligibility for
House on December 11, 2001 —
allowance will not be counted in
“privatized” housing. [Section
free and reduced-price school meals.
contains the provision included in
determining eligibility for free and
4302]
The value of on-base (free) housing is
the Senate amendment.]
reduced-price school meals. [Section
not. In the case of “privatized”
454]
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]

CRS-125
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
b. The WIC program — In
b. No provision.
b. Adds an option for states to exclude
b. Adopts Senate provision as to
determining income eligibility for the
any housing allowance provided to
WIC eligibility and military
Special Supplemental Nutrition
military personnel living in on-base
personnel in “privatized”
Program for Women, Infants, and
“privatized” housing. [Section 455]
housing. [Section 4306]
Children (the WIC program), state
may choose to exclude any housing
allowance received by military
personnel residing “off-base.”
[Section 17(d)(2)(B) of the Child
Nutrition Act]
3. Funding for the WIC Farmers’
Market Nutrition Program
No comparable provision. [Note:
No provision.
Makes available an additional $15
Adopts Senate provision for the
Budget documents indicate that $11
million in mandatory funding for the
WIC Farmers’ Market Nutrition
million will be made available for the
WIC Farmers’ Market Nutrition
program. [Section 4307]
WIC Farmers’ Market Nutrition
program — no later than 30 days after
program in FY2002. For FY2003, no
enactment. [Section 460]
money was requested for the program.]
D. Special Projects
1 . N u t r i t i o n E d u c a t i o n
Clearinghouse
No provision.
No provision.
Requires the Secretary to establish (on
No provision. [Note: In March
the Department’s website) a nutrition
2002, the Department established
education clearinghouse. [Section 428]
a website that features a
clearinghouse for nutrition
education initiatives.]
2. Community Food Projects
Through FY2002, the Secretary is
Extends authority for community
Extends authority for community food Extends authority for community

CRS-126
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
authorized to make grants to private
food project grants through FY2011.
project grants through FY2006.
food project grants through
nonprofit entities for “community food
Increases the amount reserved to
Maintains the amount reserved at $2.5
FY2007. Increases the amount
projects.” Funding is reserved from
$7.5 million a year. [Section 406(h)
million a year. Increases the federal
reserved to $5 million a year.
Food Stamp Act appropriations. And
& (j)]
share of project costs from 50% to
Modifies the list of goals that
grants may not exceed a total of $2.5
75%. Modifies the list of projects that
projects are designed to achieve
million a year.
must be given preference for grants.
and the list of projects that must
[Section 25 of the FSA]
[Section 440]
be given preference for grants.
Requires that the Secretary
contract with (or make a grant
t o ) a n o n - g o v ern m en t al
organization to coordinate with
federal agencies, states and
political subdivisions, and non-
governmental organizations to
gather information (and make
r e c o m m e n d a t i o n s ) a b o u t
innovative programs for
addressing “common community
problems” — including loss of
farms, rural poverty, welfare
dependency, hunger, the need for
job training, and individuals’ and
communities’ need for self-
sufficiency. Reserves $200,000
a year (from the $5 million a
year total provided for
community food projects) for
this initiative. [Section 4125]
3. Innovative Programs Addressing
Common Community Problems
No provision.
No provision.
Requires the Secretary to contract with
Adopts provisions comparable to

CRS-127
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
a non-governmental organization to
Senate provisions in Section
recommend innovative programs for
4125 (see Community Food
addressing “common community
Projects, Item #2 above).
problems” — including loss of farms,
rural poverty, welfare dependency,
hunger, the need for job training,
juvenile crime, and individuals’ and
communities’ need for self-
sufficiency. Makes available $400,000
for the contract. [Section 443]
4. Report on Electronic Benefit
Transfer Systems
No provision.
No provision.
Requires the Secretary to submit a
Adopts Senate provisions for a
report to Congress on EBT systems
report on EBT systems and
(e.g., difficulties relating to their use,
revises and expands the elements
fraud, efforts to address difficulties).
to be included in the report.
[Section 444]
[Section 4111]
5. Report on Conversion of the WIC
Program into an Individual
Entitlement Program
No provision.
No provision.
No later than December 31, 2002,
No provision.
requires a report from the Secretary —
to the House Committee on Education
and the Workforce and the Senate
Committee on Agriculture, Nutrition,
and Forestry — that analyzes
conversion of the WIC program from

CRS-128
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
a discretionary program into an
individual entitlement program.
[Section 456]
6. Purchases of Locally Produced
Foods
No provision.
No provision.
Requires Secretary to encourage the
Adopts Senate provisions as to
purchase of locally produced foods in
the purchase of locally produced
school meal programs and authorizes
foods. [Section 4303]
appropriations for start-up grants
($400,000 a year) to defray costs
In a d d i t i o n , a d o p t s a n
incurred in carrying out this policy.
amendment to the Richard B.
[Section 458]
Russell National School Lunch
Act that requires — to the
maximum extent practicable —
school food authorities to
purchase commodities or food
products that are produced in
Puerto Rico in sufficient
quantities to meet their meal
program needs. [Section 4304]
7. Seniors Farmers’ Market
Nutrition Program
Using funding available under
For FYs 2002-2011, authorizes a
For FYs 2002-2006, requires the
Adopts the House provision as to
Commodity Credit Corporation
Seniors Farmers’ Market Nutrition
Secretary to carry out and expand a
the Seniors Farmers’ Market
authorities, a Seniors Farmers’ Market
program and requires the Secretary
Seniors Farmers’ Market Nutrition
Nutrition program, but (1)
Nutrition program was instituted by
to support it with $15 million a year
program. Provides mandatory funding
reduces the FY2002 amount to
the Secretary in January 2001. Initial
from Commodity Credit Corporation
of $15 million a year. Authorizes the
$5 million and (2) authorizes the

CRS-129
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
funding was set at $15 million.
funds. Authorizes the Secretary to
Secretary to issue regulations to carry
program through FY2007.
issue regulations to carry out the
out the program.
[Section 4402]
Under the FY2002 Agriculture
program. [Section 925]
[Section 459]
Department appropriations law, $10
million is provided as a direct
[Note: These provisions are located
appropriation for a Seniors Farmers’
in Title IX of the House measure.]
Market Nutrition program. This
amount may be supplemented with
support from the Commodity Credit
Corporation.
8. Fruit and Vegetable Pilot
Program
No provision.
In the 2002-2003 school year, requires
Adopts Senate provision with
No provision.
the Secretary to use “Section 32” funds
technical changes; increases
to conduct and evaluate a pilot
funding to $6 million. [Section
program to make free fruit and
4305]
vegetables available to elementary and
secondary school students. Provides
$200,000 for the pilot. [Section 461]
9. Congressional Hunger Fellows
Program
Bill Emerson and Mickey Leland
Establishes — as an independent
Same as the House bill, with minor
Adopts the House provision,
Hunger Fellowships are provided
agency of the legislative branch —
and technical differences. [Section
with minor and technical
through the Congressional Hunger
the Congressional Hunger Fellows
462]
revisions. [Section 4404]
Center and given funding through
Program to offer fellowships that
annual Agriculture Department
provide training and placements with
appropriations laws (e.g., $2.496
domestic and international policy
million in FY2002).
development organizations. The
purposes of the program are to:
encourage careers in humanitarian

CRS-130
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
service; recognize the needs of poor
and hungry persons; provide aid to
those in need, increase awareness of
the importance of public service, and
provide training and development
opportunities for future leaders. The
program would be funded from the
earnings of a trust fund invested in
federal securities (an $18 million
appropriation is authorized) and
gifts. [Section 461]
10. Nutrition Information and
Awareness Pilot Program.
No provision.
No provision.
Authorizes a 15-state pilot program to
Adopts Senate provision, with
increase domestic consumption of
revisions reducing the number of
fresh fruit and vegetables. The federal
states in which the pilot will
share of project costs would be 50%,
operate to 5 and lowering the
and $25 million a year is authorized to
appropriations authorization to
be appropriated for the projects.
$10 million a year. [Section
[Section 463]
4403]
E. Effective Dates and Cost Estimates
Effective Dates
Generally effective October 1, 2002.
Generally effective September 1, 2002
Adopts House provision.
[Section 462]
— except that states may choose not
[Section 4405]
to implement provisions until October
1, 2002. [Section 464]
Cost Estimates
10-year CBO estimates (April 2001
10-year CBO estimates (April 2001
10-year CBO estimates (April
“baseline”)
“baseline”)
2001 “baseline”)
Title IV: $3.65 billion (budget
Title IV: $8.31 billion (budget
Title IV: $6.40 billion (budget

CRS-131
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
authority); $3.64 billion (outlays).
authority); $8.89 billion (outlays).
authority); $6.97 (outlays).
Food stamp program: $3.18 billion
Food stamp program: $8.01 billion
Food stamp program: $5.72
(budget authority); $3.17 billion
(budget authority); $8.59 billion
billion (budget authority); $6.29
(outlays).
(outlays).
billion (outlays).
Commodity assistance programs
Commodity assistance programs
Commodity assistance programs
(TEFAP): $400 million (budget
(TEFAP): $300 million (budget
(TEFAP & CSFP): $401 million
authority); $398 million (outlays).
authority); $298 million (outlays).
(budget authority/outlays).
Child nutrition programs: No
[Note: $200 million of these amounts
Child nutrition programs
provisions.
is attributable to TEFAP commodity
(commodity purchases & WIC
Special projects (community food
purchases called for under Title I.]
farmers’ markets): $115 million
projects, senior farmers’ markets):
Child nutrition programs (commodity
(budget authority/ outlays).
$223 million (budget authority);
purchases & WIC farmers’ markets):
[Note: This amount does not
$215 million (outlays). [Note: $150
$ 1 1 5
m i l l i o n ( b u d g e t
include special DoD fruit &
million of these amounts is
authority/outlays). [Note: This amount
vegetable purchases provided for
attributable to senior farmers’ market
does not include special DoD fruit &
in Title I ($50+ million a year).]
provisions in Title IX.]
vegetable purchases provided for in
Special projects (community
Title I ($50+ million a year).]
food projects, senior farmers’
Special projects (community food
markets, fruit & vegetable
projects, senior farmers’ markets, fruit
pilots): $168 million (budget
& vegetable pilots): $85 million
authority/outlays).
(budget authority); $90 million
(outlays).
6-year CBO estimates (April 2001
6-year CBO estimates (April 2001
6-year CBO estimates (April
“baseline”)
“baseline”)
2001 “baseline”):
Title IV: $1.94 billion (budget
Title IV: $3.11 billion (budget
Title IV: $2.66 billion (budget
authority; $1.92 billion (outlays).
authority); $3.63 billion (outlays).
authority); $3.17 billion
Food stamp program: $1.65 billion
Food stamp program: $2.85 billion
(outlays).
(budget authority/outlays).
(budget authority); $3.37 billion
Food stamp program: $2.19
Commodity assistance programs
(outlays).
billion (budget authority); $2.71
(TEFAP): $240 million (budget
Commodity assistance programs
billion (outlays).

CRS-132
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
authority); $238 million (outlays).
(TEFAP): $260 million (budget
Commodity assistance programs
Child nutrition programs: No
authority); $258 million (outlays).
(TEFAP & CSFP): $241 million
provisions.
[Note: $200 million of these amounts
(budget authority/outlays).
Special projects (community food
is to TEFAP commodity purchases
Child nutrition programs
projects, senior farmers’ markets):
under Title I.]
(commodity purchases, WIC
$118 million (budget authority);
farmers’ markets): $115 million
$110 million (outlays). [Note: $75
Child nutrition programs (commodity
(budget authority/outlays).
million of these amounts is
purchases, WIC farmers’ markets):
Special projects (community
attributable senior farmers’ market
$ 1 1 5 m i l l i o n ( b u d g e t
food projects, senior farmers’
provisions in Title IX).
authority/outlays).
markets, fruit & vegetable
Special projects (community food
pilots): $107 million (budget
projects, senior farmers’ markets, fruit
authority); $103 million
& vegetable pilots): $85 million
(outlays).
(budget authority); $90 million
(outlays).
10-year CBO estimates (March
2002 “baseline”)
Title IV: $6.63 billion (budget
authority); $7.02 billion
(outlays).
Food stamp program: $5.94
billion (budget authority); $6.34
billion (outlays).
Commodity assistance programs
(TEFAP & CSFP): $401 million
(budget authority/ outlays).
Child nutrition programs
(commodity purchases, WIC
farmers’ markets): $115 million
(budget authority/ outlays).
Special projects (community

CRS-133
NUTRITION PROGRAMS
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2008
food projects, senior farmers’
markets, fruit and vegetable
pilots): $168 million (budget
authority/outlays).
6-year CBO estimates (March
2002 “baseline”)
Title IV: $2.79 billion (budget
authority); $3.18 billion
(outlays).
Food stamp program: $2.33
billion (budget authority); $2.72
billion (outlays).
Commodity assistance programs
(TEFAP & CSFP): $241 million
(budget authority/ outlays).
Child nutrition programs
(commodity purchases, WIC
farmers’ markets): $115 million
(budget authority/outlays).
Special projects (community
food projects, senior farmers’
markets, fruit & vegetable
pilots): $108 million (budget
authority); $103 million
(outlays).

CRS-134
V. FARM CREDIT
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Consolidated Farm and Rural
Title V, Farm Security Act of 2001
Title V, Agriculture Conservation,
Title V, Farm Security and
Development Act (Con Act)
Rural Enhancement Act of 2001
Rural Investment Act of 2002.
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
a. Senate provision with an
farm ownership loan from USDA after
refinancing of a “bridge” loan taken
amendment allowing refinance
all of USDA’s funds have been
out if a person was approved for a
for all farmers or ranchers, not
allocated, the person must wait to
USDA loan, but is waiting on
just beginning farmers or
receive USDA funds until: the next
available funds. [Section. 502]
ranchers. [Section 5002]
fiscal year; enactment of a
supplemental funding bill; or, until
funds are re-allocated from another
state. [Section 303(a)(1)]
b. Purposes for which USDA may
b. Allows USDA to make or
No provision.
b. No provision
make and guarantee loans. [Section
guarantee loans for value-added or
310B(a)]
processing projects. [Section 523]
2. Eligibility
a. Requires persons to have
No provision.
a. Expands eligibility to persons
a. Senate provision [Section
“operated” a farm for at least three
who have “participated in the
5001]
years in order to receive a loan from
business operations of” a farm.
USDA. [Section. 302(b)(1)]
[Section 501]
b. USDA cannot make a down
b. No provision
b. Changes time limit to 20 years
b. Senate provision amended to
payment loan if a farmer receives other
[Section 507(2)]
make time limit 15 years.

CRS-135
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
financing requiring a balloon payment
[Section 5005(2)]
w i t h i n 1 0 y e a r s ( S e c t i o n
310E(c)(3)(B)]
3. Beginning Farmers
a. Sets $200,000 limit on amount
No provision.
a. Sets $250,000 limitation on farm
a. No provision
USDA may lend and $700,000 limit
ownership loan by USDA for a
on the amount USDA may guarantee
beginning farmer. [Section 503]
to a borrower [Section 305(a)]
b. Sets Interest rate terms on real
No provision.
b. Sets interest rates for beginning
b. No provision
estate loans. [Sec 307(a)]
farmers 50 basis points below other
borrowers. [Section 504]
c. Permits but does not require USDA
No provision.
c. Requires USDA to guarantee
c. No provision
to guarantee up to 95% of a down
95%. [Section 505]
payment loan for a beginning farmer.
[Section 309(h)(6)]
d. State loans guarantee.
No provision.
d. Adds Section 309(j) to the Con
d. Senate provision [Section
No Provision
Act to allow USDA to guarantee
5004]
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%
e. Adopts Senate percentage
qualified beginning farmers for down
[Section 515]
and time up to 20 years. [Section
(40%) and House loan period (15
payments on farm ownership loans at
507]
years). [Section 5005(1)]
up to 30% of the farm’s value and for

CRS-136
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
up to 10 years. [Section 310E(b)]
No provision.
f. Adds Section 310F requiring
f. Senate provision amended to
f. Guarantee owner-financed loans.
USDA to carry out a pilot program
require a pilot program in at least
No provision
in at least 10 states with up to five
5 states if the Secretary
borrowers per state in each year
determines risk of guarantees is
FY2003-2006, to guarantee owner-
similar to risk in commercial
financed loans made to a beginning
lenders’ guarantees. Authorizes
farmer. [Section 508]
p r o g r a m f o r F Y 2 0 0 3 -
2007.[Section 5006]
B. Operating Loans
1. General Provisions
a. Allows USDA to make direct
No provision.
a. Allows one-time waivers for two
a. Senate provision [Section
operating loans to farmers for up to
years if a borrower meets certain
5101(2)]
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
No provision.
b. House Provision [Section
annual operating loan each year for up
calendar years 2002-2006. [Section
5102]
to 15 years to a borrower, after which
502]
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
Senate Provision [Section
operating loans to beginning farmers
511]
5101(1)]

CRS-137
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
who have operated a farm for up to
five years. [Section 311(c)(1)(A)]
3. Indian Farmers
a. Guarantees on loans are set at 90%,
No provision.
a. Adds Section 309(h)(7) to allow
a. Senate provision, revised to
with exceptions for refinanced loans
USDA to guarantee 95% of an
specify that the operating loan
and beginning farmer loans, which are
operating loan made to a member of
guarantee be for operations
guaranteed at 95%. [Section 309(h)]
an Indian tribe for a farm within a
subject to the jurisdiction of an
reservation. [Section 512]
Indian tribe.[ Section 5101(2)]
b. Allows USDA to make direct
No provision
b. Waives the seven-year limit for
b. Senate provision amended to
operating loans to farmers for up to
Indian farmers on reservations if
waive 7-year limit for operations
seven years. [Section 311(c)]
USDA determines commercial credit
subject to jurisdiction of an
is not generally available. [Section
Indian tribe. [Section 5101(2)]
512(b)]
C. Emergency Loans
Emergency loan procedures. [Section
Expands eligibility for emergency
No
provision.
House provision amended
to
321, 323, 324, 329]
loans to include plant or animal
provide new authority for
quarantines, and sharply increasing
emergency loans only for plant or
energy costs.
animal quarantines. [Section
— Allows financial assistance when
5201]
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.

CRS-138
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
[Section 510]
D. Administrative Provisions
1. Eligibility
a. Sets forth persons and entities
a. Extends USDA loan eligibility to
a. Same as House Bill. [Section
a. House provision amended to
eligible for loans and guarantees from
limited liability companies engaged
521]
also include trusts as eligible
USDA. [Secs. 302(a), 311(a), and
in farming and controlled by farmers
entities. [Section 5302]
321(a)]
[Section 501]
b. Requires a county committee to
b. Removes requirement. [Section
b. Removes requirement that
b. Senate provision [Section
certify in writing that an annual review
505]
reviews be certified in writing.
5306]
of borrowers’ credit history and
[Section 525]
continued eligibility for loans has been
performed. [Section 333]
c. Requires a borrower to complete
No provision.
c. Removes the requirement of the
c. Senate provision [Section
educational training unless the county
committee’s determination before
5316]
committee determines the borrower
USDA may grant a waiver, and
has adequate knowledge, in order to be
requires USDA to set up criteria for
eligible for a direct loan from USDA.
granting a waiver. [Section 532]
[Section 359(f)]
d. Requires Secretary to evaluate the
d. Technical amendment removing
d. Technical amendment striking the
d. House provision [Section
farming plan of each applicant after
language
words “established pursuant to
5317]
the county committee has determined
requiring county committee to
section 332 “ (which is authority for
the applicant is eligible for a loan.
determine loan eligibility. [Section
county committees that was repealed
[Section 360(a)]
507]
by P.L.103-354. [Section 552(d)]
[Note: The Department of Agriculture

CRS-139
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Reorganization Act of 1994 (P.L. 103-
354) repealed Section 332 of the Con
Act, which established county
committees.]
e. Amends to allow direct loans to
No provision.
e. Replaces House provision with
e. Prohibits USDA from making a
borrowers who have not received
provision allowing operating
direct loan to a borrower who has
debt forgiveness more than two
loans to a borrower who has
received debt forgiveness. [Section
times, and allow loan guarantees to
received debt forgiveness not
373(b)(1)]
borrowers who have not received
more than once due to a natural
debt forgiveness more than three
disaster designated by the
times. [Section 519]
President [Section 5319]
f. Adds a new section (Section 377)
No provision.
f. House provision with an
f. Eligibility for USDA employees
to Subtitle D of the Con Act to allow
amendment that county or area
and employees of State, county and
USDA employees to obtain direct or
committee employees apply to
area committees.
guaranteed loans, so long as a local
the State level and State
No provision
county office other than the
employees apply to the Federal
applicant’s home office approves the
level. [Section 5321]
loan application. [Section 509]
2. General Provisions
a. Sets forth various loan
a. Allows USDA to administer the
a. No provision
a. House provision amended to
administration procedures. [Section
certified and preferred lender
make authority discretionary.
331(b)]
guaranteed loan programs through
[Section 5309]
central offices in states or multi-state
areas. [Section 503]
b. Debt Settlement. Sets forth
No provision
b. Deletes the provision that the
b. Senate provision with an
procedures for the Secretary to use in
Secretary may not release a borrower
amendment changing the role of
settling debts [Section 331(b)(4)]
from a debt obligation on more
local or area FSA committees to
favorable terms than recommended
one of consultation only
by the county committee under
regardin g potential debt

CRS-140
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Section 332. [Section 522]
settlement agreements. [Section
NOTE: More or less technical since
5303]
Section 332 was repealed by the
1994 USDA Reorganization Act.
c. Allows USDA to contract with
c. Extends authority through
private lenders to service loans
FY2011. [Section 511]
c. Removes Section 331(d).[Section
c. Senate provision [Section
through the end of FY2002. [Section
523]
5304]
331(d)]
d. Allows USDA to use a private
No provision.
collection agency to collect loan
d. Removes this authority for
d. Senate Provision [Section
obligations. [Section 331(e)]
contracts entered into after
5304]
enactment of the new farm bill.
[Section 523]
e. Requires USDA to provide a short,
e. Raises amount to $150,000.
simplified application for guarantees
[Section 504]
e. Sets the amount at $100,000.
e. Sets amount at $125,000
of loans up to $50,000. [Section
[Section 526]
[Section 5307]
333A(g)(1)]
f. Allows USDA to guarantee 80% of
f. Allows USDA to guarantee less
No provision.
f. No provision
a loan made to a qualified borrower.
than 80%, if a borrower’s income is
[Section 339]
below expenditures. [Section 506]
g. Describes the term “debt
g. Excludes from the definition any
g. Similar to House bill. [Section
g. House provision [Section
forgiveness.” [Section 343(a)(12)]
write-down provided as part of a
528]
5310]
resolution of a discrimination
complaint against USDA. [Section
518]
h. Definitions. [Section 343]
h. Includes “horses” under the term
h. No provision.
h. No Provision
“livestock.” [Section 521]

CRS-141
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
i. Sets loan authorization levels and
i. Removes limitation on total loan
i. Authorizes total USDA loans and
i. Senate provision amended to
program administration. [Section 346]
amounts USDA may make or
guarantees up to $3.796 billion
authorize for FY2002-2007.
guarantee. [Section 512]
annually for FY2002-6, with $770
[Section 5311]
million for direct loans and $3.026
billion for guaranteed loans. [Section
169]
j. Shared appreciation arrangements
j. Prohibits USDA from foreclosing
j. Allows SAA borrowers an
j. New provision permits
(SAA). [Section 353(e)]
or collecting payments on SAAs
alternative to repaying the recapture
Secretary to modify a recapture
until after December 31, 2002.
amount by allowing USDA a 25-
loan on which a payment has
[Section 522]
year agricultural use protection and
become delinquent; reamortized
conservation easement in lieu of
loans are not to exceed 25 years
payment of recapture amount.
and the outstanding principal or
[Section 531]
unpaid interest may not be
NOTE: CBO estimates one-year
reduced. [Section 5314]
FY2002 cost of $66 million for this
provision
k. Reserves funding for socially
k. Allows remaining, unused funds
No provision.
k. House Provision [Section
disadvantaged farmers. [Section
to be reallocated to other states.
5315]
355(c)(2)]
[Section 520]
l. Requires loan assessments to be
l. No provision.
l. Changes to annual assessments.
l. Senate provision [Section
conducted biannually to assess the
[Section 533]
5318]
progress of a borrower in meeting the
goals for the farm operation. [Section
360(d)(1)]
m. Making and servicing loans.
m. Adds a new section (Section
m. No provision.
m. House Provision [Section
No provision
376) to Subtitle D of the Con Act to
5320]
require USDA to use Farm Service
Agency (FSA) county office

CRS-142
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
employees to make and service loans
if personnel are trained to do so.
[Section 508]
n. Studies of USDA loans. No
n. New provision directing USDA
No
provision.
n. House Provision
[Section
provision
to conduct studies of direct and
5301]
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
a. Senate provision [Section
loan being rewritten is to be the lower
in effect on the date the borrower
5305]
of the original interest rate or the rate
applies for servicing. [Section 524]
in effect at the time the loan is
rewritten. [Section 331B]
b. Authorizes USDA to administer an
b. Reauthorizes program through
b. Permanent reauthorization.
b. Senate provision [Section
interest rate reduction program for
FY2011. [Section 514]
[Section 530]
5313]
guaranteed loans, through FY2002.
[Section 351]
c. Allows USDA to make payments to
No provision.
c. Sets the limit for beginning
c. Authorizes spending up to
a lender to reduce a borrower’s interest
farmers at 4%, and 3% for other
$750 million per fiscal year,
up to 4%; sets spending limit at $490
borrowers. Increases spending to
retains current law on interest
million. [Section 351]
$750 million per FY and requires at
rate, and reserves at least 15% of
least 25% of the funds to be reserved
the funds for beginning farmers
for beginning farmers until April 1
until March 1 of each fiscal year.
of each FY. [Section 530]
[Section 5313(2)]

CRS-143
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
4. Beginning Farmers
a. When USDA acquires property,
No provision.
a. Changes time period to 135 days,
a. Senate provision with
within 75 days the property must be
and allows USDA to combine/divide
amendment removing language
offered for sale to a beginning farmer
acquired properties in order to
regarding easements. [Section
at current market value. [Section
maximize opportunity for beginning
5308]
335(c)]
farmers to purchase. Specifies that
when USDA sells acquired property,
it may offer to sell or grant an
easement for the purpose of farmland
preservation. [Section 527]
b. Increases acreage amount to 30%.
b. Allows a “qualified beginning
No provision.
[Section 528]
b. Senate Provision [Section
farmer” to own land in an acreage
5310(a)]
amount up to 25% of the median
acreage of farms in the county.
[Section 343(a)(11)]
c. Reserves 35% for FY2002-2006.
c. Loans reserved for beginning
c. Reserves 35% of loan amounts
[Section 529] Requires $5 million
c. House provision revised for
farmers and ranchers. [Section
for beginning farmers and ranchers
of CCC funds be used for direct farm
reauthorization to FY2003-2007.
346(b)(2)(A)(ii)]
during FY2002-2011. [Section 513]
ownership loans. [Section 169]
[Section 5312]
E. Department of Agriculture Reorganization Act of 1994
Provides that decisions by FSA county
Excludes credit decisions from the
Similar to House bill [Section 551]
H o u s e p r o v i s i o n [ S e c t i o n
committees become final within 90
90-day finality rule . [Section
1613(i)(2)(B)]
days after the date a person applies for
508(b)5]
benefits. [Section 281(a)]
F. Farm Credit System (Farm Credit Act of 1971)
a. Requires prior approval by the FCS
No provision.
a. Removes the requirement that
a. Senate Provision [Section

CRS-144
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
bank before a bank for cooperatives
prior approval must be given by the
5401]
can purchase a loan originated by a
FCS bank. [Section 541]
commercial bank to an entity that can
be financed by another Farm Credit
System (FCS) bank. [Section
3.1(11)(B)]
b. Allows CoBank to finance the
No provision
b. Expands CoBank’s ability to lend
b. Senate Provision [Section
export of farm machinery and other
by removing the “on farm”
5402]
farm-related products that are intended
requirement and allowing it to
for use on farms in foreign countries.
f i n a n c e a g r i c u l t u r e - r e l a t e d
[Section 3.7]
processing equipment and 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
c. Senate Provision made
with regard to the insurance of loans
Corporation to adjust premiums
applicable beginning in calendar
for the Farm Credit System (FCS),
charged according to FCS’
year 2002. [Section 5403]
which has GSE status that implicitly
government sponsored enterprise
protects against failure and reduce risk.
(GSE) status. [Section 543]
[Section 5.55]
d. Establishes a 15-member Board of
No provision.
d. Increases Board to 17 members,
No Provision
Directors for Farmer Mac, a secondary
and makes other changes to the
market agricultural lender. [Section
Board’s structure. [Section 544]
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.
No provision

CRS-145
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
FY2002 Agricultural Appropriations
horse breeders to assist for losses as
law (P.L.107-76; Section 759(c)),
a result of mare reproductive loss
providing for loans with loan terms up
syndrome:
to 20 years.]
— at least 30% of mares failed to
produce live, healthy foal;
— breeder was unable to meet
expenses or obtain credit elsewhere;
— loan amount up to $500,000,
with term up to 15 years;
— loan authority expires end of
FY2003. [Section 516].
Note: House bill also proposed to
include horses within the meaning of
livestock under the ConAct. This
also was dropped by Conferees.
2. Emergency Loans for Seed
Producers
Producers of the 1999 crop of seed
No provision.
Amends repayment period to 54
Senate provision amended to
who did not receive payments from
months. [Section 1064]
extend repayment period to 36
AgriBiotech as a result of bankruptcy
months. [Section 10103]
proceedings, were eligible for no-
interest loans from USDA with
repayment due within 18 months.
[Section 253 of the Agricultural Risk
Protection Act of 2000, PL 106-224]
3. Family Farmer Bankruptcy
Provisions
No provision.
Reenacts Chapter 12, effective to
Extends chapter 12 provisions
Chapter 12 of Title 11 USC, sets forth
October 1, 2001. [Section 1071]
through December 31, 2002

CRS-146
FARM CREDIT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
bankruptcy provisions for family
[Section 10814]
farmers.

CRS-147
VI. RURAL DEVELOPMENT
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
A. Rural Community Advancement Program
Rural Community Advancement Program (RCAP). Subtitle E, 7 U.S.C. (2009 et seq.). Authorizes all RCAP loans and grants under the Consolidated
Farm and Rural Development Act of 1972 (P.L.92-419), 7 U.S.C. 1926, 1926(a), 1926(c), 1926(d), and 1932 except for sections 381-H, 381N and 381(0)
of the 1972 Act. [FAIR Act, Section 761]
[Note: RCAP integrates 13 different loan and grant program accounts into 3 funding accounts: Rural Utilities, Rural Business and Cooperative
Development, and Rural Communities Facilities. RCAP permits local authorities to transfer up to 25% from one account to another. RCAP is not scored
by CBO under the farm bill, but the funding streams are part of the loan and grant programs administered under USDA Rural Utilities Services (RUS),
Rural Business and Cooperative Service (RBS), and Rural Housing Service (RHS). Conference appropriation agreement authorizes $940.3 million,
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
R e p e a l s F u n d f o r R u r a l
2004(f). Three program accounts: rural
America. [Section 6403]
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 prohibited
expenditures to carry out Fund
programs in 2002 as they did in
FY1999.]

CRS-148
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
C. Telecommunications
1.Authorizes grants to broadcast
No Provision
Grants to Broadcasting Systems.
Senate Provision [Section 6016]
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
Provides $80 million FY2002-
Appropriations Act of 2001 (P.L.106-
FY2002-2006 for loan guarantees.
2006. [Section ]
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
Provides $30 million each fiscal
Development Act ,7 U.S.C. 1981 et seq.
Program and authorizes funding of
year, FY2002-2007. [Section
$150 million. [Section 641]
6022]
4. Telemedicine and Distance Learning
No Provision
Reauthorizes the Telemedicine
Senate Provision. [Section 6203]
Grants authorized through 2002.
and Distance Learning Program
Statutory authority provided by the
. [Section 652]
Rural Electrification Act of 1936, 7
U.S.C. 901 et seq. Distance
learning/medical link program
established under Section 2335A of the
Food, Agriculture, Conservation, and
Trade Act of 1990 (7 U.S.C. 950aaa-5).
5.The Rural Electrification Act of 1936
No Provision
Enhanced Access to Broadband
Provides $20 million in each of
(7 U.S.C. 901 et seq.)
Services. Provides $100 million
FY2002-2005 and $10 million
per year, FY2002-2006 for grants
for each of FY2006 and 2007.

CRS-149
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
and loans. [Section 605]
[Section 6103]
[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
Val u e-Added Agri cu l tu ral
Value-added Agriculture Market
House Provision
grants under the Agricultural Risk
Pr o d u c t M a r k e t G r a n t s .
Development Grants. Provides
[Note: Provides $40 million in
Protection Act of 2000 (P.L.106-224; 7
Establishes expanded eligibility for
$75 million per year, FY2002-2006.
grants each year, FY2002-2007
U.S.C. 162. [ Section 231(a)]
value-added grants Authorizes $60
[Section 606]
to independent producers and
million each year FY2002-2011.
producer-owned enterprises].
[Section 602]
[Section 6401]
2. Establishes the intermediary lending
No Provision
V a l u e - A d d e d I n t e r me d i a r y
No Provision
program under the Food Security Act of
Relending Program. Provides $15
1985 (7 U.S.C. 1932 note; Public Law
million in each year, 2003-2006.
99-198). [Section 1323(b)(2)(C)]
[Section 634]
3. Agricultural Risk Protection Act of
Agriculture Innovation Center
No Provision
Provides not less than $3 million
2000 (P.L.106-224; 7 U.S.C. 162).
D e m o n s t r a t i o n P r o g r a m .
for FY2002 and not less than $6
[Section 231(a)(1)]
Authorizes $5 million in FY2002
million for FY2003 and 2004.
and not less than $10 million in
[Section 6402]
FY2003 and 2004. [Section 603]
[Note: The provision makes
available part of the funding for
value-added market grants in
Section 602.

CRS-150
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
4. Consolidated Farm and Rural
No Provision
Delta Region
Agricultural
Senate Provision [Section 6027]
Development Act of 1972, 7 U.S.C.
Economic Development. Provides
1981 et seq.
$7 million each fiscal year 2002-
2006 for animal nutrition
technology development and value-
added manufacturing. [Section 647,
Section 379f]
5. Consolidated Farm and Rural
Training for Farm Workers in
No Provision
House Provision [Section 6025]
Development Act of 1972, 7 U.S.C.
new technologies necessary for
1922-1949.
higher value crops. Authorizes up
to $10 million each year, FY2002-
2011. [Section 617]
E. Water and Waste Treatment Programs
1. Subtitle A, Consolidated Farm and
G r a n t s t o N o n p r o f i t
No Provision
Provides $10 million each year
Rural Development Act of 1972, 7
Organizations to finance the
FY2002-2007. [Section 6012]
U.S.C. 1922-1949.
construction or improvement of
well-water systems for low or
moderate income households.
[Section 614]
2. Consolidated Farm and Rural
No Provision
SEARCH Grants for
Small
Senate Provision
Development Act of 1972, 7 U.S.C.
Communities Provides $51
[ N o t e : E l i g i b l e r u r a l
1921 et seq.
million to communities under 3,000
communities are those under
in population. [Section 646]
2,500 population. [Section 6301,
[Note: SEARCH grants assist very
Subtitle D]
small communities in meeting
various environmental regulations
associated with water and waste
disposal. Program would create a

CRS-151
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
new Subtitle J to the Consolidated
Farm and Rural Development Act
of 1972.]
3. Amends Section 306(a) of the
Removes the specification of $590
Raises funding authorization for
Maintains current law $590
Consolidated Farm and Rural
million in authorized funds,
water and waste water programs
million authorization ceiling, but
Development Act of 1972 (7 U.S.C.
effectively providing for no cap on
from $590 to $1.5 billion and
included language allowing
1926a(i)) to reauthorize and increase
the amount of funding authorized
authorized $30 million each years
additional spending of such sums
from $500 million to $590 million
for water and wastewater treatment.
through FY2006 to capitalized
as may be necessary. Also
annual funding for Water and Waste
[Section 621]
revolving loan funds.[Section 621]
provides $30 million each year
Treatment grants and loans to assist
through 2006 to capitalize
local communities in meeting State
revolving loan funds [Section
standards established under the Safe
6002].
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 those under 10,000 and
3,000 population, respectively.]
4. Amends Section 306 of the
Reauthorizes program and deletes
Reauthorizes Community Water
Authorizes the a “emergency and
Consolidated Farm and Rural
“Emergency” from the title.
Assistance Program through
Imminent Community Water
Development Act of 1972 to authorize
Provides $75 million annually in
FY2006 with no changes. [Section
Assistance Grant Program. Sets
the Emergency Conservation Water
mandatory funding for each of
629].
aside not less than 3% or more
Assistance Program.
FY2002-2011. [Sections 604 and
than 5% of appropriated water
943]
Note: Also fully funds the existing
and waste water funds (above)
backlog of applications for rural
for communities facing drinking
development loans and grant
water shortages, and authorizes
programs Increases authorization
$35 million each year in
for Water and Waste Treatment
additional funding for the

CRS-152
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
grants from $590 million to $1.5
program for FY203-2007.
billion, FY2002-2006. [Section
[Section 6009]
621]
Note: The CBO has scored this
as a discretionary spending
program. Although conference
report language suggests the
adoption of the House provision,
the legislative language is quite
different from the House bill.
F. Rural Entrepreneur and Business Investment Programs
1. Consolidated Farm and Rural
No Provision
R u r a l E n t r e p r e n e u r s
a n d
No Provision
Development Act of 1972, 7 U.S.C.
Microenterprise Assistance
1891 et seq.
Program. 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.]
S.Amdt. 2615 makes budget
authorization for [Section 638]
discretionary.
2. Consolidated Farm and Rural
No Provision
National Rural Cooperative and
No Provision
Development Act of 1972 7 U.S.C.
Business Equity Fund. Authorizes
[Note: Conferees created a new
1921 et seq.
appropriation of $150 million to be
Rural Strategic Investment
matched by private investors.
Program [Section 6030, Subtitle
USDA will guarantee 50% of each
I] and provides $100 million in
investment with a maximum total of
grants.
$300 million. Administered by the
Small Business Administration.

CRS-153
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
[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
Provides $100 million in grants
Development Act of 1972 7 U.S.C.
Program. Provides for grants up to
and loan subsidies and $280
1921 et seq
$1 million each to establish Rural
million in loan guarantees
Business Investment Companies to
FY2002-2007. [Section 6029,
be administered by the Small
Subtitle H]
Business Administration. CBO
[Note: Permits up to 10% of
estimates the cost at $70 million in
investments to be made in areas
loan subsidies and $50 million in
containing a city of over 150,000
grants. [Section 602]
population]
S.Amdt. 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
Conferees created a new Rural
through (I) the Consolidated Farm and
Strategic Regional Development
.
Strategic Investment Program
Rural Development Act (7 U.S.C. 1921
Plans. Authorizes $60 million each
[Section 6030, Subtitle I] that
et seq.); (II) subtitle G of title XVI and
year FY2002-2011. Secretary will
provides $100 million in
title XXIII of the Food, Agriculture,
select 10 states in which to
planning grants
Conservation, and Trade Act of 1990;
implement the strategic plans.
(III) title V of the Rural Development
[Section 613]No Provision

CRS-154
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Act of 1971 (7 U.S.C. 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
Senate Provision [Section 6006]
Development Act of 1972, 7 U.S.C.
Planning Grants. Authorizes $30
1926(a). [Section 306(a)]
million each year FY2003-2006 to
f u n d r e g i o n a l p l a n n i n g
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
No Provision
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
Provides $360 million FY2002-
under the Consolidated Farm and Rural
Development Loans and Grants.
2007. [Section 6031]
Development Act of 1972 (P.L92-419),
[Section 603]
[Note: Restricts program to
7 U.S.C. 1926, 1926(a), 1926(c),
[Note: Establishes an account in the
backlogged applications for
1926(d), and 1932 except for Sections
U.S. Treasury to be known as the
water and waste water projects]
381-H, 381N and 381(0) of the 1972
‘’Rural America Infrastructure

CRS-155
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Act.
Development Account.” This
provision authorizes a one-time
removal of the backlog of pending
applications for rural development
loans and grants. CBO estimates
the cost at $454 million.]
I. Other Rural Development Programs
1. Consolidated Farm and Rural
No Provision
R u r a l F i r e f i g h t e r s
a n d
Provides $10 million each fiscal
Development Act, 7 U.S.C. 1926(a).
Emergency Medical Personnel
year 2003-2007. [Section 6405]
[Section 306(a)]
Training 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
No Provision
Development Act of 1972, 7 U.S.C.
million in grants for programs
1891 et seq.
targeting rural seniors. [Section
639]
3. Consolidated Farm and Rural
No Provision
Historic Barn
Preservation
Authorizes such sums as are
Development Act ,7 U.S.C. 1981 et seq.
Program. Authorizes $25 million
necessary. [Section 6023]
in each year, FY2002-2006.
[Section 642]
4. Consolidated Farm and Rural
No Provision
Northern Great Plains Regional
Senate Provision [Section 6028]
Development Act of 1972, 7 U.S.C.
Authority. Creates the Authority
1921 et seq.
and provides $30 million in each
year, FY2002-2006. [Section 647]
[Note: Program would create a new
Subtitle K to the Consolidated Farm

CRS-156
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
and Rural Development Act of
1972.]
5. Section 4, Rural Electrification Act
Authorizes loans and loan
No Provision
House Provision [Section 6013]
of 1936 (7 U.S.C. 904); Section
guarantees for Renewable Energy
310B(a)(3) of the Consolidated Farm
Systems [Sections 605 and Section
and Rural Development Act of 1972, 7
606]
U.S.C. 1932(a)(3).
6. Changes legal status of the
No Provision
Repeals corporate authorization and
Senate Provision. [Section 6201]
Alternative Agricultural Research
transfers assets to an account to
and Commercialization Center by
support “critical emerging issues”
converting it to a wholly-owned
in future food production,
government corporation within USDA.
environmental management, and
[Section 721 of FAIR Act, Amends
farm income. [Section 651]
Section 1658 of the Food , Agriculture,
[Note: Repeals Subtitle G of Title
Conservation, and Trade Act of 1990
XVI of the Food, Agriculture,
(P.L.101-624) (7 U.S.C. 5902)]
Conservation, and Trade Act of
1990 (7 U.S.C. 5901 et seq.)
7. National Rural Development
Authorizes the National Rural
Authorizes the National Rural
House and Senate Provisions.
Partnership. Subtitle D of the
Development Partnership. Section
Development Partnership. Section
Provides $10 million for each
Consolidated Farm and Rural
615
612
fiscal year 2002-2007. [Section
Development Act (7 U.S.C. 1981 et
6021]
seq).
8. Rural Business and Cooperative
Authorizes Rural Business
Amends Section 306(a)(11)(D) of
R e a u t h o r i z e s R u r a l
Service: Miscellaneous loans and
Opportunity Grants [Section
the Consolidated Farm and Rural
Cooperative Development
grants:
607] , Ru r a l C o o p e r a t i ve
D e v e l o p m e n t A c t , 7
Grants [Section 6015], Rural
(1) Establishes Business Opportunity
Development Grants [Section
U . S . C . 1 9 2 6 ( a ) ( 1 1 ) ( D ) ) t o
Business Enterprise Grants

CRS-157
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Grants. [FAIR Act Section741(a)(10)];
609], Rural Venture Capital
reauthorize Business Opportunity
[Section 6014] and Rural
(2) Establishes Business Enterprise
Demonstration Program [Section
Grants through FY 2006. [Section
Business Opportunity Grants
Grants under the Consolidated Farm
611], at same funding level through
622]
[Section 6003]. Repeals the
and Rural Development Act of 1972,
2011.
Amends Section 310B(e)(9) of the
Rural Ventu re Ca p i ta l
[Section 310B(c)]; (3) Authorizes Rural
Makes Rural Empowerment
Consolidated Farm and Rural
Demon s tration Program
Economic Development Loans under
Zones and Rural Enterprise
Development Act (7 U.S.C.
[Section 6026]
the Rural Electrification Act of 1936
Communities eligible for direct
1932(e)(9) to reauthorize Rural
[Section 313]; (4) Authorizes Rural
and guaranteed loans for essential
Cooperative Development Grants
Cooperative Development grants under
community facilities.
through FY2006. [Section 631]
the Consolidated Farm and Rural
[Section 616]
Development Act of 1972 7 U.S.C.
1932, [Section 310(B)(e)]; (5) Title VIII
of the Omnibus Budget Reconciliation
Act of 1993 (P.L.103-66) and the
Taxpayer Relief Act of 1997 (P.L.105-
277) establishes Rural Empowerment
Z o n es an d R u r al E n t er p r i s e
Communities (EZ/ECs) .
[Note: The 1996 FAIR Act incorporates
E Z / E C s . T h e A g r i c u l t u r e
Reorganization Act of 1994 (P.L.103-
354) reorganizes USDA Rural
Development into the RUS, RBS, and
R H S ( f o r m e r F a r m e r s H o m e
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
CBO Estimate: $870 million in

CRS-158
RURAL DEVELOPMENT
HOUSE BILL
SENATE AMENDMENT
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L. 107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
authorization. Total direct and
direct authorization for rural
mandatory spending FY2002-
di s cr e t i o n a r y a u t h o r i z a t i on
development programs. Total
2007. [Note: This figure
FY2002-2011, $3.6 billion.
d i r e c t a n d d i s c r e t i o n a r y
excludes energy related program
authorization FY2002-2006, $3.4
spending. It also reflects
billion.
recision of $160 million in
[Note: This estimate excludes $550
previous authorization for the
million for energy related programs
Fund for Rural America which
also budgeted by CBO under Title
was repealed. [Section 6043].
VI. Including this funding brings
CBO has not estimated
the total estimated direct
discretionary spending]
authorization for Title VI to $2.261
billion.]

CRS-159
VII. RESEARCH
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
National Agricultural Research,
Title VII, Research and Related
Title VII, Agricultural Research,
Title VII, Research and Related
Extension, and Teaching Policy Act
Matters
Education, and Extension and
Matters
o f 1 9 7 7 ( N A R E T P A ) ; t h e
Related Matters
Agricultural Research, Extension, and
Education Reform Act of 1998;
omnibus farm legislation passed in
1985 and 1990; and others, as noted
A. Funding Authority: University Research and Cooperative Extension
1. Authorizes $850 m. annually for
Extends authority through FY2011
Increases funding authority to $1.5
Authorizes the appropriation of
research at land grant colleges of
with no changes. [Section 708]
billion annually through FY2006.
such funds as may be necessary
agriculture (excluding competitive
[Section 716]
through FY2007. [Section 7113]
grants and Hatch Act of 1887 formula
funds) [Section 1463 of NARETPA]
2. Authorizes $420 m. for
Extends authority through FY2011
Increases funding authority to
Authorizes the appropriation of
cooperative extension programs
with no changes. [Section 714]
$500 million annually through
such funds as may be necessary
through FY2002. [Section 1464 of
FY2006. [Section 717]
through FY2007. [Section 7114]
NARETPA]
B. The Initiative for Future Agriculture and Food Systems
1. Authorizes the transfer of $120 m.
Requires the Secretary to transfer
Authorizes the transfer of $130
Authorizes the transfer from the
annually in FY1999-2002 from the
$1.16 billion into the Initiative from
million annually through October
Commodity Credit Corporation
U.S. Treasury to USDA for a
the Commodity Credit Corporation
1, 2002, and of $225 million
of $120 million in FY2003, $140
competitive grants program on critical
in equal annual amounts over a 9-
annually through 2006 from the
million in FY2004, $160 million
emerging issues and high-priority
year period ending in FY2011.
Commodity Credit Corporation
in FY2005, and $200 million
research. [Section 401 of 1998 Act]
[Section 750]
[per Section 1099B] for the
annually in FY2006-07 for the
Initiative [Section 169], and
Initiative, and gives priority for
recommends that the Secretary
grants to small, mid-sized, and

CRS-160
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
reserve 10% of Initiative funds for
minority-serving institutions that
grants to minority-serving
have not been successful in
institutions. [Section 741]
winning grants under other
programs. [Section 7205]
Designates $25 million of Initiative
Contains a comparable provision,
Authorizes such sums as
funds in FY2004-08 to be awarded
with funding authorized under
necessary through FY2007 for an
to minority-serving schools for
Title IV of the 1998 Act. [Section
FAS-administered competitive
research on biotechnology to benefit
750]
grant program for research on
developing countries. USDA’s
biotechnology to benefit
Foreign Agricultural Service (FAS)
developing countries. All
would administer the program.
institutions with an agricultural
[Section 763]
or bioscience curriculum would
be eligible. [Section 7505]
2. Defines priority mission areas for
Adds alternative fuels, precision
Makes no change to existing law.
Adds rural economic, business
the Initiative. [Section 401 of the
agriculture, crop diversification, and
and community development
1998 Act]
small livestock farm improvement to
policy to the list of priority
the list of areas to be addressed by
research areas. [Section 7205]
the Initiative. [Section 743]
C. Land Grant Institutions in Insular Areas
1. Defines the Commonwealth of
Creates a new grant program to
Redefines U.S. territories as
Authorizes such sums as are
Puerto Rico, Guam, American
strengthen the food and agriculture
“insular areas” rather than as
necessary through FY2007 for a
Samoa, the Commonwealth of the
curriculum at land grant institutions
states. Retains “state” definition
new grant program to strengthen
Northern Marianas, the Trust
in the U.S. territories. [Section 761]
for the District of Columbia. The
resident instruction at insular
Territory of the Pacific Islands, the
change does not affect the
area land grant schools and
Virgin Islands of the United States,
eligibility of land grant institutions
distance learning programs using
and the District of Columbia as
in these areas for formula funds
advanced technologies. [Section
“states” for the purposes of the Act.
under the Hatch Act of 1887 and
7503]
[Section 1404 of NARETPA]
the Smith-Lever Act of 1914.
[Section 701]
Included in Section 7503.

CRS-161
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Creates new authority for $20
million through FY2006 for
competitive or non-competitive
grants to insular institutions to
strengthen distance learning
programs in agriculture using
advanced technologies. Requires
50% matching funds. [Section
775]
2. Requires institutions to match
Sets the matching fund requirement
Sets a 50% matching fund
Establishes the matching fund
federal formula funds for research and
at 50% for the U.S. Territory
requirement through FY2006 for
requirement using the Senate bill
extension at 50% beginning in
institutions through 2011 and grants
land grant institutions in insular
language. [Section 7213]
FY2002, and prohibits the Secretary
the Secretary authority to waive the
areas, and grants the Secretary
from waiving the requirement.
requirement if a Territory cannot
authority to waive the requirement.
[Section 3(d) of the Hatch Act of
meet the obligation. [Section 749A]
[Section 776]
1887, as amended]
D. 1890 Land Grant Universities
1. Authorizes appropriations of such
Contains no provision addressing
Raises the minimum amount that
Adopts the Senate provisions
funds as may be necessary for
funding authority for 1890 land grant
can be appropriated for extension
r e g a r d i n g m i n i m u m
research programs, and establishes a
colleges.
programs from 6% to 15% of
appropriations for formula funds
6% minimum (of appropriation for
e x t e n s i o n f o r m u l a f u n d s
to support both research and
1862 schools) for extension
appropriated for the 1862 schools.
extension at the 1890 schools,
programs. [Section 1444 of
[Section 757]
with language stating that
NARETPA]
Establishes a minimum amount to
increased appropriations for
be appropriated for research
formula-funded programs, not
programs at 25% of the amount
redistribution of current levels,
appropriated for the 1862 schools.
are the intent. [Section 7203]
[Section 757]

CRS-162
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
2. Authorizes $15 m. annually
Extends authority through FY2011
Increases authorization to $25
Authorizes such sums as
through FY2002 for grants to upgrade
with no changes. [Section 709]
million annually through FY2006.
necessary through FY2007.
facilities. [Section 1447(b) of
[Section 760]
[Section 7109]
NARETPA]
3. Requires 50% in state funds to
Requires an annual 10% increase in
Raises the matching funds
Requires an annual 10% increase
match federal formula funds for
state matching funds beginning in
requirement to 60% in FY2003
in state matching funds
research and extension. [Section 1449
FY2003, to reach 100% in FY2008.
and annually in 2004-06 by 110%
beginning in FY2003, to reach
of NARETPA]
The Secretary may waive the
of the previous year’s amount.
100% in FY2007. The Secretary
requirement above 50% if a state
The Secretary may waive the
may waive the requirement
cannot meet the obligation. [Section
requirement above 50% if a state
above 50% if a state cannot meet
749]
cannot meet the obligation.
the obligation. [Section 7212]
[Section 762]
E. 1994 Institutions (Tribally Controlled Land Grant Institutions)
1. Authorizes annual appropriation of
R e m o v e s a u t h o r i t y f o r
Authorizes the appropriation of
Adopts the Senate provision and
$4.6 m. in FY1996-2002 for an
appropriations to an endowment
such sums as necessary through
extends endowment fund
endowment fund. [Section 533 of
fund and authorizes appropriations
FY2006 for the endowment fund.
through FY2007. [Section 7128]
Equity in Educational Land Grant
of such sums as are necessary in
[Section 755(c)]
Status Act of 1994]
FY1996(sic)-2011. [Section 729]
2. Authorizes $50,000 annual
Increases payment authority to
Provision identical to House.
Increases payment authority to
payments to each institution. [Section
$100,000 annually. [Section 741(a)]
[Section 755(e)]
$100,000 annually. [Section
534 of 1994 Act]
7201(a)]
3. Bases withdrawals and
Bases withdrawals and expenditures
Provision identical to House
Adopts the Senate language that
expenditures from the endowment
on a formula using an Indian student
(slightly different language).
changes the authority under
fund on a formula using an Indian
count as defined in the Tribally
[Section 755(d)]
which 1994 Institutions make
student count as defined in the Carl
Controlled College or University
withdrawals and expenditures
D. Perkins Vocational and Applied
Assistance Act of 1978. [Section
from the endowment fund.
Technology Education Act. [Section
741(b)]
[Section 7201(b)]

CRS-163
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
533(c)(4)(A) of 1994 Act]
N O T E : M a k e s s t u d e n t c o u n t
mechanism more flexible and
clarifies calculation of full-time
Indian students. Previous calculation
was designed for two specific tribal
colleges under the Carl Perkins Act,
and the new one is designed for 24
of the now 31 tribal colleges under
the 1978 Act.
4. Authorizes $5 m. annual
Authorizes such sums as are
Authorizes such sums as are
Authorizes such sums as
appropriations for extension programs
necessary through FY2011. [Section
necessary and directs the Secretary
necessary through FY2007 and
and contains formula for distribution
753]
to develop a new distribution
allows funding to carry over till
of funds. [Section 3(b) of Smith-Lever
formula. [Section 754]
expended. [Section 7215]
Act of 1914]
5. Excludes 1994 Institutions from
Adds the 1994 Institutions to the
No comparable provision to
Adopts the Senate provision and
eligibility for formula funds under the
definition of colleges and
House, but makes the 1994
authorizes it through FY2007.
Hatch Act of 1887 and the Smith-
universities eligible to receive Hatch
Institutions eligible to compete for
[Section 7209]
Lever Act of 1814. [Section 533(a)(2)
and Smith-Lever Act funds for
grants for integrated research and
of 1994 Act]
research and extension programs.
extension projects under Section
[Section 742]
406 (b) of the 1998 research
reform act. [Section 756]
F. Priority Research Areas
1. Authorizes a competitive grants
Adds wind erosion, crop loss, land
Adds animal infectious diseases,
Combines priority areas from
program to support research and
use management, water and air
childhood obesity, integrated pest
House and Senate bills; adds
extension programs on 24 specified
quality, revenue i ns u ran ce,
management, beef cattle genetics,
sugarcane genetics as a priority
topics. [Section 1672 of the Food,
agrotourism, fruit and vegetable
and development of publicly held
area, and amends the AgrAbility
Agriculture, Conservation, and Trade
harvesting, nitrogen fixation,
plant and animal varieties to the
program to encourage the

CRS-164
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
Act of 1990]
marketing, private lands research,
list of priority research areas.
awarding of grants to applicant
livestock disease threats, and plant
Authorizes $100,000 annually for
institutions that have not
gene expression to the list of priority
high priority research on reducing
received them previously.
research areas. [Section 744(b)]
hazards from dairy pipeline
[Section 7208]
cleaners. [Section 734]
2. Authorizes agricultural genome
Adds plant pathogens to research
Makes no change to existing law.
Adopts House language as part
research. [Section 1671(b) of the 1990
subjects under the Agricultural
of the above provision on
Act]
Genome Initiative. [Section 744]
priority research areas. [Section
7208]
3. Authorizes competitive grants for
Contains no provision addressing
Reauthorizes and expands the
Authorizes through FY2007 the
research and extension programs on
existing authority.
research focus for organic
annual transfer to USDA of $3
organic agriculture. [Section 1672B of
agriculture to include genomics
million in mandatory funds
the 1990 Act]
research, improvement of publicly
(above whatever funds may be
held crop and livestock varieties,
appropriated) for research on
marketing research, and on-farm
organic agriculture, including
research. [Section 736]
genetic, on-farm, and social
science research. [Section 7218]
4. Authorizes research and extension
Extends authority through FY2011.
Extends authority through FY2006
Combines the House and Senate
programs on precision agriculture.
[Section 730]
and adds emphasis on horticulture,
provisions and extends authority
[Section 403 of the 1998 Act]
mechanization, robotics, and
through FY2007. [Sections 7129
energy use efficiency. [Section
and 7207]
743]
5. Authorizes selected high-priority
Contains no provision addressing
Adds bovine Johne’s disease
Establishes a research program
research areas. [Title IV of the 1998
existing authority.
control and grants for youth
on bovine Johne’s disease
Act]
organizations to high-priority
[Section 7207]; and authorizes a
subjects under the 1998 Act.
one-time transfer of $8 million in
[Sections 748 and 749]
CCC mandatory funds in
FY2002, and appropriation of
such sums as necessary in

CRS-165
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
FY2003-07, for grants to Girl
Scout, Boy Scout, 4-H, and FFA
organ i zations to ex pand
programs in rural areas and small
towns. [Section 7412]
G. International Research
1. Authorizes cooperative
Authorizes placement of agriculture
Contains no provision addressing
Adopts the House provision.
international research, extension, and
students at U.S. colleges and
existing authority.
[Section 7209]
teaching programs. [Section 1458 of
universities at USDA Foreign
NARETPA]
Agricultural Service field offices
overseas. [Section 745(c)]
H. Biotechnology
1. Authorizes USDA to withhold 1%
Increases withholding to 3% and
Increases withholding to 3% and
Increases withholding to 2% and
of biotechnology research funding to
adds authority to study the
directs the Secretary to give
adds genetically modified
support risk assessment research on
e n v i r o n m e n t a l e f f e c t s o f
priority in awarding biotechnology
organisms and international
bioengineered organisms. [Section
biotechnology and develop a long-
risk assessment grants to
partnerships on bio-safety as
1668 of 1990 Act]
term policy for introduction.
a p p l i c a n t s w h o t a k e a n
priority topics for risk
[Section 747]
interdisciplinary approach that
assessment research. [Section
includes environmental, biosafety,
7210]
and nutritional aspects. [Section
732]
I. Research Facilities
1. Provides general authority for
Makes no change to existing law.
Adds new authority to Section
Makes no change to existing law.
federal funds to construct or
1417 of the 1977 Act for
modernize research facilities at
competitive grants to land grant
colleges and universities. [Research
schools and Hispanic-serving
Facilities Act of 1963]
schools for construction or

CRS-166
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
modernization of research
facilities. Preference would be
given to proposals offering
matching funds. [Section 704]
2. Protecting agriculture facilities.
Creates new authority to assess civil
Contains a similar provision, with
No provision in this law, but a
[No existing authority]
penalties against anyone who
stronger penalties and greater
language similar to the House
damages or disrupts an animal or
emphasis on bioterrorism. [Section
provision is contained in the
agricultural enterprise, research
1058]
conference report (H.Rept. 107-
facility, or other agricultural or
481) on H.R. 3448, the
biomedical facility. Also authorizes
Bioterrorism Preparedness Act
recovery of economic damage and
of 2001.
establishes a fund to compensate the
victims of such attacks. [Section
790]
3. Competitive grants for purchasing
No comparable provision.
Creates new authority for $250
Adopts the Senate provision and
lab equipment. [No existing
million over 5 years for
authorizes the appropriation of
authority]
competitive grants to land grant
such sums as necessary through
and non-land grant schools for
FY2007. [Section 7402]
purchasing specialized scientific
equipment. [Section 715]
J. Competitive Research Grants Administration
1. Reimbursement for indirect costs
Makes no change to existing law.
Permits institutions awarded a
Adopts the Senate provision with
associated with competitive grants is
competitive grant to receive
an amendment to exempt grants
limited to 19% of the total grant.
reimbursement for indirect costs
awarded competitively under the
[Section 1462 of NARETPA]
(excluding equipment costs) at a
Small Business Innovation
percentage established by the
Research program. [Section
granting agency’s audit agency.
7222]
[Section 714]

CRS-167
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
2. Competitive grants are disbursed
Makes no change to existing law.
Makes funds appropriated for
Adopts the Senate provision.
in the year in which the funds are
competitive grants available for
[Section 7217]
appropriated. [Section 1467 of
obligation over a 2-year period.
NARETPA]
[Section 718]
3. Joint requests for proposals. [No
No comparable provision.
Adds authority for the Secretary to
Provides authority for USDA to
existing authority]
transfer grant funds to or receive
issue joint requests for proposals
grant funds from other federal
with other federal agencies and
research agencies in order to
to establish joint peer review
facilitate joint research and
panels, but not to transfer funds
eliminate duplication. [Section
between federal agencies or to
719]
negotiate indirect cost recovery
rates for grants awarded.
[Section 7403]
K. Biosecurity
1. Agriculture Infrastructure
No comparable provision.
Adds a new biosecurity subtitle to
Authorizes the appropriation of
Security. [No existing authority]
NARETPA to establish a fund to
such sums as necessary for a
protect ARS, Forest Service,
competitive grants program to
APHIS, and other federal facilities
construct and upgrade the
related to the safety of crops,
security of facilities conducting
livestock, and food. Establishes an
counterterrorism research at
advisory board on the use of the
public colleges and universities.
fund. [Section 723, Chapter 1]
[Section 7221]
2. Biosecurity Planning and
Amends the 1990 farm act to list
New subtitle authorizes such sums
Authorizes the appropriation of
Response. [General authority exists
research on technology to protect
as necessary for research on
such sums as necessary for
for high priority research and
agriculture (including livestock) and
counterbioterrorism. Authorizes
research and extension activities
extension initiatives under Section
the food supply from bioterrorism
$100 million annually in FY2003-
to improve bi oterrorism
1672(e) of the 1990 Act]
and naturally occurring threats as a
05 for construction or renovation
prevention, preparedness, and
high priority research topic. [Section
of bioterrorism research facilities.
response. [Section 7221]
744]
Expresses sense of Congress that

CRS-168
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
funding for USDA agencies with
biosecurity responsibilities should
be increased as necessary.
[Section 723, Chapter 2]
L. Research related to Rural and Beginning Farmers
1. Risk management education.
No comparable provision.
Creates
a competitive grant
No provision.
[Section 524(a)(3) of the Federal
program to be administered by
Crop Insurance Act]
CSREES to enhance land grant
and non-land grant education
programs on risk management for
beginning farmers. [Section 785]
2. Research on rural issues. [Section
No comparable provision.
Adds an emphasis on rural
No provision.
1417 of NARETPA]
economic, community, and
business research to existing rural
research authority. [Section 703]
3. Technology transfer for rural
No comparable provision.
Establishes a joint ARS- Rural
No provision; conference report
development. [No existing authority]
Business-Cooperative Service
language states that the
program to make ARS and RBCS
Managers expect RBCS to
rural development technologies
promote technology transfer to
available to rural areas more
rural businesses in cooperation
quickly. [Section 795]
with ARS, the Forest Service,
and other USDA agencies.
4. Rural electronic commerce
No comparable provision.
Authorizes $60 million annually
Adopts the Senate provision
development program. [No existing
in FY2002-06 for an extension
(FY2003-07). [Section 6202]
authority]
program to help small businesses
in rural areas adopt electronic
commerce business practices and
technologies. [Section 733]

CRS-169
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
5. Beginning farmer and rancher
No comparable provision.
Creates
a competitive grant
Adopts the Senate provision and
education. [No existing authority]
program to help local and regional
authorizes $15 million annually
education, training, outreach, and
through FY2007 in mandatory
technical assistance organizations
m o n e y ( b u t s ub j e c t t o
assist beginning farmers and
appropriation). [Section 7405]
ranchers. Authorizes $15 m.
annually through FY2006 to be
transferred from the U.S. Treasury
to support the program. [Section
796]
6. Rural research fund. [No existing
No comparable provision.
Establishes a Rural Research Fund No provision.
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]
7. Alternative Agriculture Research
Extends authority for appropriations
Title VI (Rural Development) of
Repeals the authority for
and Commercialization Revolving
through 2011.
the Senate-passed H.R. 2646
AARCC; any remaining funds
Fund. [Section 1664(g)(1) of 1990
contains a provision to repeal the
are to cover the cost of closing
Act]
authority for the Alternative
the program and then revert to
Agricultural Research and
the U.S. Treasury. [Section
Commercialization Corporation
6201]
(AARCC) and transfer its funds to
USDA to be used for research on
f u t u r e f o o d p r o d u c t i o n ,
environmental protection, and farm
income. [Section 651]

CRS-170
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
M. Miscellaneous Research Provisions
1. National Agricultural Research,
Adds to the advisory board one
Extends authority for advisory
Adopts the House provision.
Extension, Education, and Economic
member from a non-land grant
board with no changes.
[Section 7209]
Advisory Board. [Section 1408 of
institution, and requires the Board to
NARETPA]
consult with the House and Senate
Agriculture and Appropriations
Committees. [Section 745]
2. ARS review. [First authorized in
No comparable provision.
Reauthorizes an outside review of
Adopts the Senate provision and
1998 Act]
the purpose, efficiency, and
adds authority for a task force to
effectiveness of ARS research.
study and report to Congress
[Section 794]
whether the structure of federal
NOTE: S.Rept. 107-117 indicates
agricultural research should be
that the earlier review was not
modeled after the National
carried out according to the intent
Institutes of Health and the
of the original language.
National Science Foundation.
[Section 7404]
2. Senior Scientific Research
No comparable provision.
Establishes a 100-member Senior
Adopts Senate provision.
Service. [No existing authority]
Scientific Research Service
[Section 7219]
comprised of highly qualified
scientists. Minimum GS-15
salary. [Section 750B]
3. Regulatory and inspection
No comparable provision.
Authorizes the Secretary to
No provision.
research. [No specific authority exists
conduct urgent applied research to
for this type of research, but such
support the regulatory programs of
work currently is conducted under
AMS, APHIS, FSIS, and FGIS.
general authority found in
[Section 792]
NARETPA]

CRS-171
RESEARCH
HOUSE BILL
SENATE BILL
NEW LAW
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
P.L.107-171
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
COVERS 2002-2007
4. Repeal of certain activities and
authorities.
[Sections 615(b) and (c) of the 1998
Food safety research national
No comparable provision.
Adopts House provision.
Act]
conference and report. [Section 771]
[Section 7301]
[Section 617 of the 1998 Act]
Reimbursement of expenses under
No comparable provision.
Adopts the House provision.
the Sheep Promotion, Research, and
[Section 7302]
Information Act of 1994. [Section
772]
[Section 1634 of the 1990 Act]
National Genetic Resources
Extends program through FY2006.
Adopts Senate provision through
Program. [Section 773]
[Section 731]
FY2007. [Section 7118]
[Sections 1639 and 1640 of the 1990
National Advisory Board on
No comparable provision.
Adopts the House provision.
Act]
Agricultural Weather. [Section 774]
[Section 7304]
[Section 1420 of the 1985 Act]
Agricultural information exchange
No comparable provision.
Adopts the House provision.
with Ireland. [Section 775]
[Section 7305]
[Section 1437 of the 1985 Act]
Pesticide resistance study. [Section
No comparable provision.
Adopts House provision.
776]
[Section 7306]
[Section 1438 of the 1985 Act]
Expansion of education study.
No comparable provision.
Adopts House provision.
[Section 777]
[Section 7307]
[Sections 1412 and 1413(c) of
Support for advisory board. [Section
No comparable provision.
No provision.
NARETPA]
778]
No comparable provision.
Adopts the House provision.
[Research Facilities Act of 1963]
Task force on 10-year strategic plan
[Section 7308]
for agricultural research facilities.
[Section 779]

CRS-172
VIII. FORESTRY
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
Primarily, provisions of the
Cooperative Forestry Assistance Act
Title VIII - Forestry Initiatives
Title VIII - Forestry
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.
1. House Provision. [Section
provides cost-sharing for tree planting
NOTE:FIP expires at the end of
[Section 804]
8001]
and other forest improvement practices.
FY2002. The repeal in the House bill
[Section 4, CFAA]
is not needed to effectively end the
program.
2. Stewardship Incentives Program
2. Repeals SIP. [Section 801]
2. No provision.
2. House Provision [Section
(SIP) provides cost-sharing for a wide
NOTE: SIP is permanently
8001]
variety of forestry practices. [Section 6,
authorized, and requires no
CFAA]
reauthorization
3. No provision.
3. Establishes new Forest Land
3. Establishes new Sustainable
Generally fol l ows House
Enhancement Program (FLEP) to
Forest Management Program to
provision establishing new Forest
supplant FIP and SIP, with cost-
supplement FIP and SIP, with cost-
Land enhancement Program to
sharing for the same practices (and
sharing for additional practices and
supplant FIP and SIP, with cost-
more) and $20 million annually in
$48 million annually in mandatory
sharing for the same practices
mandatory spending. [Section 802]
spending. (Section 806)
(and More) and $100 million in
NOTE: The House bill replaces
NOTE: The Senate Bill adds to
mandatory spending through
former programs with this new
existing programs.
FY2007. [Section 8002]
program
4. No provision.
4. No provision.
4. Establishes new Sustainable
4. No provision
Forestry Cooperative Program to

CRS-173
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
assist landowners in creating
cooperatives for sustainable forest
management. (Section 805)
B. Suburban and Community Forestry Initiative
(NOTE: Existing financial and
No
provision.
Creates new Suburban
and
No provision
technical assistance programs to urban
Community Forestry and Open
areas, communities, and private
Space Initiative, to conserve private
nonprofit organizations are permanently
forest land and working forests in
authorized in Section 9 of CFAA, and
suburbs and help control urban
are unchanged in the House and Senate
sprawl, through 50% cost share
bills.)
grants to states and nonprofits.
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
1. No provision
programs include activities to protect
Assistance Program, for cost-
watersheds, but none focuses on
sharing by states for forest practices
watershed protection.)
to protect and enhance water
quality, authorized at $20 million
annually. (Section 812)
2. No provision
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

CRS-174
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
and $3.5 million for FY2003-
FY2006. (Section 810)
D. Fire Protection
(NOTE: Existing financial and
Creates new Enhanced Community
1. Similar to H.R. 2646. (Section
1. Generally follows House
technical assistance programs to states
Fire Protection program to inform and
811)
provision, creating new Enhanced
and to volunteer fire departments are
assist landowners in wildfire
Community Fire Protection
permanently authorized in Section 10 of
protection; authorized at $35 million
program, authorized at $35
CFAA, and are unchanged in the House
annually. Appears to allow federal
million annually; appears to allow
and Senate bills. Fire research is
activities on private lands (Section
federal activity on private lands
authorized under the Forest and
804)
[Section 8003]
Rangeland Renewable Resources
Research Act (P.L. 95-307), and 3 fire
research centers already exist.)
2. No provision.
2. Authorizes creation of 2 forest
2. No provision
fire research centers. (Section 808)
3. Authorizes new hazardous fuel
3. Authorizes new hazardous fuel
3. No provision
reduction grants of $5-10 per ton of
reduction grants of $5-10 per ton to
(both provisions dropped in
hazardous fuel removed from forests
operators of facilities that produce
conference)
to operators of facilities that produce
energy from hazardous fuel
energy from biomass, with
removed from forests, or to persons
monitoring of grant recipients and of
to use or increase value of
treatment effects (the latter being
hazardous fuels; grant allocation
limited to federal lands), authorized at
based on minimizing environmental
$50 million annually. (Section 921,
effects and maximizing community
in Title IX)
benefits, with monitoring of grant
recipients, and of environmental
a n d e m p l o ym e n t e f f e c t s .
Authorized at $50 million annually.
(Section 809)

CRS-175
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
4. No provision.
4 . R e q u i r e s i n d e p e n d e n t
4. No provision.
investigation of firefighter fatalities
by USDA Inspector General.
(Section 820)
E. Forest Health Protection
(NOTE: Existing forest health
1. No provision.
1. Authorizes new research,
1. No provision
protection program authorizes insect
monitoring, and treatment program
and disease survey and control on
for Sudden Oak Death Syndrome,
federal lands and with consent,
with an advisory committee to
cooperation, and participation, on other
oversee implementation; authorized
lands. This is permanently authorized in
at $14.25 million annually, with
Section 8 of CFAA, and is unchanged
allocation among activities
in the House and Senate bills.)
specified. (Section 819)
2. No provision.
2. Authorizes new program of
2. No provision
Adaptive Ecosystem Restoration of
Arizona and New Mexico Forests
and Woodlands, to improve
ecological health and reduce threats
to forests while encouraging
collaboration, by creating two
ecological institutes, requiring
federal cooperation, and monitoring
results; annual authorization is $10
million. (Section 821)
F. Forestry Research
Forestry research at land grant
Reaffirms the importance of forestry
Identical to House version. (Section
House bill [Section 8201]
universities is authorized under the
research under McIntire-Stennis.
802)
McIntire-Stennis Act of 1962 (P.L. 87-
(Section 807)

CRS-176
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
788). (NOTE: Forest Service research
Note: Incorrectly cites the public law
is authorized under the Forest and
number as P.L.87-88.
Rangeland Renewable Resources
Research Act of 1978, P.L. 95-307.)
G. Renewable Resources (RREA)
The Renewable Resources Extension
Reauthorizes RREA, doubles
House and Senate provisions are
Generally follows House bill,
Act (RREA; P.L. 95-306) authorizes
authorized funding to $30 million
similar, but not identical.
reauthorizing RREA, doubling
educational assistance in natural
annually, and establishes new
Reauthorizes RREA, doubles
authorized funding to $30 million
resources management.
Sustainable Forestry Outreach
authorized funding to $30 million
annually, and establishing a new
Initiative. (Section 803)
annually, and establishes new
Sustainable Forestry Outreach
Sustainable Forestry Outreach
Initiative. [Section 8101]
Initiative. (Section 803)
H. International Forestry
1. Technical forestry assistance to other
1. Effectively reauthorizes the
1. No provision.
1. No provision
countries is permanently authorized
International Forestry “ through 2011.
under Title VI of P.L. 101-513 (Foreign
(Section 805)
Operations Appropriations, 1991).
2. The Forest Service Office of
2. No provision
2. Reauthorizes “Office of
2. Generally follows Senate bill,
International Forestry expires at end of
International Forestry” through
reauthorizing the Office of
FY2002 under Section 2405(d) of the
2006. (Section 801)
International Forestry through
1990 Farm Bill.
FY2007. [Section 8102]
I. Tribal Forestry
1. No provision.
1. No provision.
1. Establishes Office of Tribal
1. No Provision
R e l a t i o n s t o i m p r o v e
communication between tribal
governments and USDA and Forest
Service. (Section 817)

CRS-177
FORESTRY
HOUSE BILL
SENATE BILL
NEW LAW (P.L. 107-171)
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
2. No provision.
2. No provision.
2 . E s t a b l i s h e s p r o g r a m f o r
2. No Provision
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
No provision (both bills
The broadest authorization is in the
Stewardship Contracts” for reducing
Stewardship Contracts for reducing
provisions dropped)
Forest and Rangeland Renewable
hazardous fuels in the national forests
hazardous fuels in the Wildland-
Resources Planning Act of 1974 (RPA;
as part of timber sale contracts (i.e.,
Urban Interface in national forests
P.L. 93-378) as amended by the
authorizes goods-for-services
as part of timber sale contracts, with
National Forest Management Act of
contracts, where the Forest Service
14 using goods-for-services
1976 (NFMA; P.L. 94-588).)
can use timber to pay for fuel
contracts (where the Forest Service
treatment services). (Section 806)
can use timber to pay for fuel
treatment services) and the other 14
using separate contracts to collect
woody material and to sell the
timber.[Section 815]

CRS-178
IX. MISCELLANEOUS PROVISIONS
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
A. Federal Crop Insurance
Prohibition on Continuous Coverage
No
provision.
Makes permanent the
temporary
Adopts Senate provision
The Federal Crop Insurance Act, as
prohibition on continuous coverage in
[Section 10002]
amended by the Agriculture Risk
current law. [Section 1012]
Protection Act of 2000, requires
participating producers in the federal
Note: CBO scored an average annual
crop insurance program to select a
savings of approximately $320
coverage level that is a multiple of 5,
million beginning in FY2006.
between the 55% and 85% level of crop
yield 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
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%

CRS-179
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
level of coverage, from dropping back
to 64% coverage just to receive the
higher subsidy level.
Quality Loss Adjustment Procedures
No provision.
Requires USDA to implement the
Extends Senate requirement for
The Federal Crop Insurance Act, as
review findings by the 2003 insurance
implementation of review
amended, requires USDA to contract a
year. [Section 1013]
findings by 2004 insurance year
study reviewing the quality loss
and allows certain warehouse
adjustment procedures of the crop
operators to make adjustments
insurance program, and make
for quality for the purposes of
adjustments based on this review.
quality loss adjustment. [Section
[Section 508(m)(3)]
10003]
Conservation Requirements
No provision.
Prohibits farmers from receiving a
No provision
The 1985 farm bill (P.L. 99-198)
crop insurance indemnity payment
prohibits any farmer from receiving
when the producer grows a crop on
certain federal farm payments or loans
highly erodible land or a converted
when the producer grows a crop on
wetland. [Section 1014]
either highly erodible land [Sect. 1211],
or a converted wetland [Sect. 1221]
Sweet Potatoes
Permanently includes sweet
Identical to the House provision.
Adopts House and Senate
The Federal Crop Insurance Act
potatoes as a crop that would be
[Section 1011]
provision [Section 10001]
prohibits farmers from receiving crop
eligible for indemnity payments
insurance indemnity payments once the
after harvest. [Section 928 ]
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
Adopts Senate provision (with

CRS-180
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
The Federal Crop Insurance Act, as
development reimbursements to $32
amendments) requiring that
amended, authorizes USDA to
million in FY2002 (up $22 million);
USDA complete a report on
reimburse private entities for the cost of
$27.5 million for each of FY2003 and
specialty crop insurance and
research and development of new crop
FY2004 (up $12.5 million in each
complete the study within 180
insurance programs. Mandatory
year); and $25 million for each of
days. Deletes Senate provisions
funding of $10 million for each of
FY2005 and FY2006 (up $10 million
that increased funding for
FY2001 and 2002, and not more than
in each year). Also increases funding
specialty crop initiatives, and
$15 million in FY2003 and subsequent
for education and information
adds sense of Congress language
years is provided [Section 522(b)].
programs to $10 million in FY2003
requiring the USDA to address
The act also authorizes USDA to
(up $5 million); $13 million in
the needs of producers through
establish crop insurance education and
FY2004 (up $8 million); and $15
expansion of the federal crop
information programs for producers in
million for each of FY2005 and
insurance pilot programs,
states that traditionally have a low
FY2006 (up $10 million in each
including revenue insurance for
participation rate in the crop insurance
year).
Georgia pecans and coverage for
program or are underserved by the
Total 5-year increase for R&D
continuous crops of Kansas
program. Mandatory funding of $5
reimbursements is $67 million; total
wheat. [Section 10005]
million for FY2001 and each
4-year increase for education
subsequent year is provided. [Section
programs is $33 million. The
524]
combined $100 million additional
cost is funded through savings
associated with reducing the payment
limits for farm commodity support
programs. Also requires USDA to
complete a report by September 30,
2002 focusing on progress made by
USDA in the research development of
new risk management programs for
specialty crop growers, small and
m o d e r a t e - s i z e d f a r m s , a n d
underserved areas. [Section 169]
Restriction of Crop Insurance
No provision.
Prohibits the subsidization of any
No provision

CRS-181
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
Payments to Previously Cropped
federal crop insurance policy that
Land
covers a farm commodity that is
No restriction in current law
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
No provision.
Requires USDA to continue through
Adopts Senate provision with an
Pilot Program
at least the 2004 insurance year, the
amendment that expands the
The Federal Crop Insurance Act, as
adjusted gross revenue (AGR)
pilot program for the 2003 crop
amended, authorizes USDA to conduct
insurance pilot program in effect for
year to include at least 8 counties
pilot programs to evaluate whether a
the 2002 crop year. Expands the pilot
in California and at least 8
new risk management program is
program in 2003 to include at least 8
counties in Pennsylvania. Also
suitable for the marketplace and
counties in the state that produces the
requires the USDA to work with
addresses the needs of farmers. [Section
highest quantity of specialty crops for
the respective state Departments
523]
which AGR insurance is currently not
of Agriculture of Pennsylvania
USDA currently implements an
available (i.e, California). Counties
and California to determine
Adjusted Gross Revenue (AGR) pilot
selected by USDA should produce a
which counties are to be
program which allows a farmer to
significant quantity of specialty crops.
included. [Section 10004]
insure a percentage of historical
[Section 1079D]
revenue for all crops grown on the farm
rather than insuring each crop
separately.
Study on Producer Indemnification
No provision.
Requires the Secretary of Agriculture
Adopts Senate provision with an
for Government-Caused Disasters
to conduct a study of the feasability
amendment to clarify that the
The Federal Crop Insurance Act limits
of expanding crop insurance and the
study must focus on disaster
covered perils under the crop insurance
noninsured assistance program to
conditions caused by Federal

CRS-182
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
program to drought, flood, or other
farmers experiencing disaster
agency action restricting access
natural disaster (as determined by the
conditions caused primarily by a
to irrigation water, including any
Secretary). [Section 508(a)(1)]
federal agency action. Report to be
lack of access to an adequate
submitted to the House and Senate
supply of water caused by the
Agriculture Committees within 150
failure of the Secretary of
days of enactment. [Section 1085]
Interior to fulfill a contract in
accordance with the Central
Valley Project Improvement Act.
[section 10108]
Risk Management Education for
No
provision.
Allows the Secretary,
(through
No Provision
Beginning Farmers
CSREES,) to establish risk
The Federal Crop Insurance Act
management education programs
established a “Partnership for Risk
targeted to the needs of beginning
Management” program within USDA’s
farmers and ranchers, using existing
Cooperative State Research, Education
available funds in Section 524 of the
and Extension Service (CSREES),
Federal Crop Insurance Act. [Section
whereby competitive grants are made to
785]
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
No
provision.
Adopts the House
Provision
The 1996 farm bill (P.L. 104-624)
sea oats as an eligible crop under
[Section 10101]
makes eligible for the noninsured
the noninsured assistance program.
assistance program all crops that are not
[Section 929]
eligible for federal crop insurance

CRS-183
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
coverage, and certain specific crops.
[Section 196(a)(2)]
C. Emergency Crop Disaster and Income Loss Assistance
a. Crop Disaster Payments. Various
No
provision.
a. Authorizes the Secretary
of
No Provision
emergency supplemental acts in recent
Agriculture to use $1.8 billion in
years have provided ad hoc direct
Commodity Credit Corporation
payments to crop producers to
(CCC) funds for payments to
compensate them for major production
producers who experienced losses to
losses caused by natural disasters.
the 2001 crop caused by natural
Most recently, the FY2001 agriculture
disasters. Payments are to be made in
appropriations act (P.L. 106-387)
the same manner as for 2000 losses.
provided such sums as are necessary for
Secretary has discretion to use some
disaster payments for 2000 crop year
of the funds to reimburse farmers for
losses. [Section 815]
income losses not caused by a natural
disaster. [Section 191]
Transfers $50 million from the U.S.
Treasury to USDA to pay salaries and
expenses of administering emergency
crop and livestock programs. [Section
195]
All funds made available for these
programs carry an emergency
designation, and therefore do not
count toward the budget limitations
placed on new farm bill spending.
[Section 197]

CRS-184
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
D. Market Loss Assistance
a. Extension of Deadlines for Market
Loss Assistance Payments
No Provision
a. Allows USDA to make payments
a. Adopts Senate provision and
Various emergency supplemental
to persons eligible to receive
extends similar privileges to
funding laws enacted since 1998 have
assistance under P.L. 107-25 who did
eligible producers under all
provided direct payments to growers of
not receive payments or assistance
previous market loss assistance
specific commodities to compensate
prior to October 1, 2001, Specifies
programs who did not receive
them for low market prices. Most
that the amount of payment or
payment by the respective
recently P.L.107-25 provided $5.5
assistance cannot exceed that which
deadline date. [Section 1617]
billion in market loss assistance with a
the person would have been eligible
payment deadlines of September 30,
to receive under the law. [Section
2001]
175]
b. Apple and Onion Income Loss
No Provision
b. Provides $100 million in CCC
b. Provides $94 million to apple
Assistance
funds to make payments to apple
growers for 2000 crop year
FY2002 agriculture appropriations
producers for the loss of markets
losses [Section 10105}
(P.L.107-76) made $75 million
curing the 2000 crop year. [Section
Also provides $10 million as a
available exclusively to apple producers
193]
grant to the state of New York to
for their loss of markets for their 2000
be used to support current onion
crop.
producers in Orange county,
New York who suffered losses to
onion crops during one or more
of the 1996-2000 years. [Section
10106]
E. Livestock Assistance
1. Emergency Livestock Assistance
a. Various emergency supplemental acts
a. Permanently authorizes livestock
a. Requires the Secretary of
a. Adopts House Provision
in recent years have authorized ad hoc
assistance, subject to annual
Agriculture to implement a program
[Section 10104]
assistance for livestock farmers when
appropriations, and at discretion of
to provide feed assistance to livestock
on-farm feed or forage is damaged or
the Secretary of Agriculture. Such
producers affected by disasters,

CRS-185
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
destroyed by a natural disaster
assistance would include indemnity
subject to annual appropriations. For
(Livestock Assistance Program) or to
payments for livestock mortality
FY2003 through FY2008, $500
replenish herds when a natural disaster
losses, livestock feed assistance,
million is authorized to be
causes widespread livestock mortality
compensation for sudden increases
appropriated. [Section 168]
(Livestock Indemnity Program).
in production costs, and other
assistance as deemed appropriate by
the Secretary of Agriculture.
[Section 931]
b. Programs are generally funded
b. No provision.
b. Requires the Secretary to use $500
b. No provision
through the borrowing authority of
million of Commodity Credit
U S D A ’ s C o m m o d i t y C r e d i t
Corporation funds to make payments
Corporation. Most recent authority was
for livestock losses in 2001 in a
granted for calendar year 2000 livestock
county that has received emergency
losses in emergency provisions
designation by the President or
included within the FY2001 agriculture
Secretary after January 1, 2001. Of
appropriations act (P.L. 106-387)
this amount, $12 million is for the
[Section 806]
American 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
Amends Senate provision to
program to provide live lamb to
require a feasibility report by the
Afghanistan and requires USDA to
USDA on U.S. food aid

CRS-186
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
submit a report by January 1, 2004.
programs. [Section 3207 (Trade
[Section 309]
title)]
F. Migrant and Seasonal Farmworker Assistance
The 1990 farm bill (P.L. 101-624) gave
No
provision.
In c r e a s e s t h e a u t h o r i t y
f o r
Eliminates the current law $20
permanent authority to the Secretary of
appropriations to $40 million for
million authorization limitation,
Agriculture to disburse up to $20
FY2002 through FY2006. No
effectively authorizing such a
million in grants (subject to annual
authority for appropriations beyond
sums as are necessary, subject to
appropriations) to public agencies or
FY2006. [Section 1061]
appropriations. [Section 10102]
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).
G. Tree Assistance and Caneberries
1. Tree Assistance Program:
a. Implemented on an ad hoc basis,
a. Authorizes a program of
a. Same as House bill, except that it
a. Adopts House provision with
usually under temporary authority given
assistance to growers who planted
contains an authorization for
amendment that person may not
in various emergency supplemental acts
trees, vines and bushes for
appropriations for fiscal years 2002-
receive payments on more than
over the years.
commercial purposes and suffered
2006. [Title X, Subtitle D, Section
500 acres and adds “lightning” to
NOTE: Program implemented in 1998
losses as a result of a natural
1062]
the definition of natural disaster.
Supplemental Appropriations Act (P.L.
disaster. Assistance would consist
[Section 10205]
105-174) reimbursed tree and vine
of reimbursement of 75% of the
owners up to 100% of the cost of
cost of replanting trees lost in
replanting when owners suffer 20% or
excess of 15 % mortality (adjusted
greater loss (adjusted for normal
for normal mortality), or sufficient
mortality).
seedlings to reestablish the stand.

CRS-187
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
[Title IX, Subtitle A, Sections 901-
902, 904]
b. House provision with
b. Payment limit of $25,000 per
b. Payments may not exceed
amendment setting payments
eligible tree and vine owner. Excludes
b. Payments may not exceed
$100,000 to each grower or an
limit of $75,000 [Section 10204]
assistance to owners earning more than
$50,000 for each grower, or an
equivalent value in tree seedlings. No
$2.5 million gross annual revenue in the
equivalent value in tree seedlings.
requirement on amount of gross
tax year preceding the year when the
No requirement on amount of gross
annual revenue or acreage. [Title X,
losses occurred. [See note above]
annual revenue, but grower must
Subtitle D, Section 1062]
own 500 acres or less of
commercial trees. [Title IX, Subtitle
A, Section 903(a)]
Amends the Agricultural Marketing
No provision.
Senate Provision [Subtitle G,
2. Caneberries Marketing Order:
Agreement Act of 1937 to authorize
Section 10601]
No provision
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
p r o m o t i o n , i ncluding p a i d
advertising. Imports of caneberries
must comply with the market order
restrictions as domestic caneberries
[Title IX, Section 925]
H. Energy
Miscellaneous laws and regulations (see
Various titles
Title IX - Energy, and other sections
T i t l e IX, Energy a n d o t h e r
below)
sections

CRS-188
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
1. Commodity Credit Corporation (CCC) Bioenergy Program
Under the Bioenergy Program, CCC
A n i m a l f a t s , a g r i c u l t u r a l
No Provision.
Program is extended and
may grant payments to ethanol and
byproducts, and oils are added to
expanded. Mandatory spending
bioproducers who expand their
the list of allowable commodities.
Note: S. 1731 expresses the sense of
of up to $150 million is provided
production capacity. Payments intended
[Section 922]
the Congress that the Bioenergy
annually for FY2003-2006. CBO
to help cover the purchase cost of the
Program should be continued and
estimates $204 million total will
additional commodities necessary for
expanded. In addition, the section
be authorized between FY2002
t h a t e x p a n s i o n . A l l o w a b l e
states that expanded ethanol and
and FY2003.
commodities include crops such as
biodiesel production will be needed to
[Section 9010]
barley, corn, soybeans, and wheat, as
phase out methyl tertiary butyl ether
well as cellulosic crops such as
(MTBE) — a common additive in
switchgrass and short rotation trees.
gasoline that has contaminated
[7 CFR 1424]
groundwater in several states.[Section
Note: This program was scheduled to
907] S.Amdt. 2676, and S.Amdt.
expire at the end of 2002.
2678, substitutes, add the House
language to the Senate bill.
[Sec 921]
2. Renewable Energy on Conservation Reserve Program (CRP) Lands
The Farm Security Act of 1985 created
Amends the Act to allow the use of
Amends the act to allow the use of
Similar to House Provision
the Conservation Reserve Program (16
CRP land for wind energy
CRP land for wind energy generation
[Section 2101]
U.S.C. 3830 et. seq.) To assist and
generation and biomass harvesting
(with reduced payments).
encourage farmers and ranchers to
for energy production (with reduced
[Section 212(h)]
conserve and enhance soil and other
payments).
resources
[Section 213]
[Section 3832(a)(7)(A)]

CRS-189
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
3. Emergency Loans to Respond to Sharply Increasing Energy Costs
The Consolidated Farm and Rural
Amends the Act to allow loans in
No provision.
No Provision
Development Act (7 U.S.C. 1969)
response to economic emergencies,
provide for emergency loans for natural
which are defined to include
disasters.
sharply increasing energy costs.
[Section 329]
[Section 501]
4. Grants to Reduce Hazardous Forest Fuels for Energy Production
The Cooperative Forestry Assistance
Creates a new section of the code
Similar to the House provision, but
No Provision
Act of 1978 (16 U.S.C. 2101 et. seq)
which authorizes the Secretary of
amends the Cooperative Forestry
provides for technical and financial
Agriculture to provide grants to
Assistance Act to add a section on
assistance for rural fire control. There
energy producers who purchase
hazardous fuels reductions instead of
are no provisions for biomass reduction
biomass that poses a wildfire hazard
establishing a new section of the
grants.[P.L. 95-313]
for the production of electric power,
code.[Section 809]
useful heat, or transportation fuels.
Authorizes $50 million each fiscal
year.[Section 921]
5. Clean Energy
Under the current law, the Consolidated
General sections amend various
Several sections amend various laws
Adds new sections (see below)
Farm and Rural Development Act
laws (see below)
(see below).CFRDA is amended to
(CFRDA) (7 U.S.C. 1921 et. seq.),
add a Subtitle L (3 chapters) on
there are no provisions for clean energy.
“Clean Energy” that establishes
[P.L. 87-128]
programs on biobased products,
renewable energy and energy
efficiency, and carbon sequestration.
[Section 902]

CRS-190
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
6. Clean Energy - Chapter 1: Biobased Product Development
a. No provision for biobased products
1. No provision
a. Requires the Secret ary o f
Similar to Senate provision but
under CFRDA.
Agriculture to publish a list of
products are not required to be
biobased products that are
environmentally preferable,.
environmentally preferable (defined
Mandatory spending of $1
as a having a reduced effect on human
million is provided for each of
health and the environment compared
fiscal years 2002-2007.
with competing products). Federal
[Section 9002]
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
b. Establishes a new grant program to
Similar to Senate provision, but
CFRDA.
biorefineries. However, the bill
assist in the development and
no mandatory spending is
amends the Agricultural Research,
construction of biorefineries, defined
authorized [Section 9003]
Extension, Education, and Reform
as facilities that convert biomass into
Act of 1988 (7 U.S.C. 7624) to
fuels and chemicals. For FY2002
extend authority to provide grants
through FY2006, mandatory spending
for pilot projects on biobased
is increased by $15 million per year,
product development. Authority,
to remain available until expended.
which expired at the end of
[Section 388C]
FY2001, is extended to FY2011.
Also, Section 379 of the Act is
[Section 725]
amended to give priority to bioenergy
and biochemical projects for
grants.[Section 644]

CRS-191
MISCELLANEOUS
HOUSE BILL
SENATE BILL
NEW LAW P.L. 107-171
OLD LAW/POLICY
H.R. 2646
S. 1731, amended
COVERS 2002-2007
COVERS 1996-2002
COVERS 2002-2011
COVERS 2002-2006
c. No provision for Biodiesel fuel
c. No provision.
c. Establishes a new program to
Similar to Senate provision, but
under CFRDA.
provide grants to nonprofit
only $1 million in annual
organizations that educate fleet
mandatory spending is provided
operators and the public about the
f o r f i s c a l ye a r s 2 0 0 3 -
benefits of biodiesel. For FY2002
2007.[Section 6013]
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
a. Amends Section 30 of the Act to
a. Establishes a new program to
Similar to House provision. No
guarantees for the installation of solar
allow loans and loan guarantees for
assist farmers, ranchers, and rural
new budget authority granted.
energy systems.
renewable energy systems. No new
business ventures in the establishment
[Section 6013]
[Section 30]
budget authority is granted.
or expansion of electrical facilities
[Section 606]
powered by renewable 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
Similar to Senate provision,
CFRDA.
provide grants to entities that assist
except that no mandatory
farmers, ranchers, and rural small
spending authorized.
businesses in performing audits to
[Section 9005]
identify potential for improving
energy efficiency and developing
renewable energy. For FY2002
through FY2006, mandatory spending
is increased by $15 annually, to

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remain available until expended.
[Section 388F]
c. No provision for energy systems
c. No provision.
c. Establishes new a system of grants Similar to Senate except that
under CFRDA.
and loans to farmers, ranchers, and
energy efficiency improvements
rural small businesses for the
also are eligible, and the
purchase of renewable energy
Secretary of Agriculture is given
systems. Recipients must have sales
authority to define a “small
less than $1 million per year. For
business” and $23 million in
FY2002 through FY2006, mandatory
mandatory spending is provided
spending is increased by $33 million
annually for fiscal years 2003-
per year, to remain available until
2007. [Section 9006]
expended.
[Section 388G]
d. No provision for hydrogen and fuel
d. No provision.
d. Establishes a new grant program
d. Requires the Departments of
cells under CFRDA.
for cooperative research on hydrogen
Agriculture and Energy to
and fuel cell technologies for use in
cooperate on research into farm
farm, ranch, and rural applications.
and rural applications of
For FY2002 through FY2006,
hydrogen fuel and fuel cell
mandatory spending is increased by
technologies. No new budget
$5 million annually, to remain
authority or funding is provided
available until expended. [Section
for this. [Section 9007]
388H]
e. No provision for technical assistance
e. Amends the Food Security Act
e. Establishes a new program
e. No Provision
to support energy development under
of 1985 (16 U.S.C. 3839aa) to
providing technical assistance for
CFRDA.
allow the Secretary to provide
farmers and ranchers to develop
education and technical assistance
renewable energy resources. The
to farmers and ranchers to develop
Secretary may retain up to 4% of the
and market renewable energy
funds in the above areas to assist
resources. No new budget authority
farmers and ranchers in developing
is created.
and marketing renewable energy.

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[Section 942]
[Section 388I]
8. Clean Energy - Chapter 3: Carbon Sequestration Research, Development and Demonstration Program
a. No provision for carbon
a. Amends the Agricultural Risk
a. Authorizes new funding for basic
a. Similar to House provision
sequestration research under CFRDA.
Protection Act of 2000 (P.L. 106-
and applied carbon sequestration
except authorization is through
Note: Other USDA programs including
224, Section 211) to extend the
research, conducted either by the
2007. No new mandatory
its general research authority provide
authorization of the Carbon Cycle
Secretary of Agriculture, or by other
funding is provided. [Section
for some similar research.
Research Program, which provides
entities funded through competitive
9009]
grants to land grant universities for
grants. The research goals include the
c a r b o n c y c l e r e s e a r c h .
study of net sequestration of carbon
Authorization is extended through
by soils and plants, and the net
2011 (originally a one-time
greenhouse gas emissions from
authorization of $15 million).
agriculture. $25 million is authorized
[Section 751]
annually for FY2002 through
FY2006. S.Amdt. 2546 added state
forestry agencies to the list of eligible
entities.
[Section 388J]
b. Carbon Sequestration Projects.
No provision.
b. No provision.
b. Authorizes projects, administered
b. No provision
by the Secretary, to demonstrate the
ability to monitor and verify carbon
sequestration, and to educate farmers
and ranchers about the economic and
e n v i r o n m e n t a l b e n e f i t s o f
conservation practices that increase
sequestration. $10 million is
authorized each year for FY2002
through FY2006.
[Section 388K]

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9. Biomass Research and Development
T h e B i o m a s s R e s e a r c h a n d
Extends authority for the program
Amends the Act to provide for
Similar to Senate version except
Development Act of 2000 provides
through FY2011; adds animal
additional funding of $15 million
authority is through FY2007 and
competitive funding for R&D projects
byproducts to the definition of
each year for FY2002 through
mandatory funding is set at $5
on biofuels and other biobased
“biomass”; and adds a livestock
FY2006, to remain available until
million for FY2002 and $14
chemicals and products, administered
trade association representative to
expended. Program authority is
million annually thereafter
by the Secretaries of Agriculture and
the Technical Advisory Board.
extended by one year, to September
through FY2007. Additional $49
Energy. $49 million per year is
Authorized appropriations will
30, 2006.[Section 903]
million annually in discretionary
authorized for FY2002 through
increase from zero to $49 million in
(Note: Congress provided $15 million
funding is also authorized for
FY2005. The authority for the program
each of FY2006 through FY2011.
for this initiative in FY2002. Total
FY2002-2007. [Section 9008]
expires December 31, 2005.
[Section 746]
funding would remain at $15 million
[P.L. 106-244, Title III]
per year, but would be mandatory.)
10. Renewable Energy Projects
The Rural Electrification Act of 1936
Amends the Act to allow loan
Amends the Act to establish a loan
No provision
authorizes the Rural Utilities Service,
guarantees for the purchase of
and grant program for renewable
which provides credit assistance to
renewable energy systems by
energy projects at rural electric
build and operate electric generating
farmers, ranchers and rural small
utilities and cooperatives. Grants
facilities, wholesale transmission
businesses. [Section 605]
may cover up to 75% of an economic
equipment, and local distribution lines.
feasibility study or for technical
The Secretary of Agriculture is
assistance on a project. Loans, at 4%
authorized to provide loans and grants
interest, may be used to cover a
to improve electricity supply in rural
percentage (to be determined by the
areas. Currently, there are no
Secretary) of the project cost. For
provisions for renewable energy.
FY2002 through FY2006, $9 million
[7 U.S.C. 901 et. seq.]
per year in mandatory spending is
provided, to remain available until
expended. [Section 904]

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11. Carbon Sequestration Demonstration Program
The Agricultural Research, Extension,
No provision.
Amends the Act (adding Section 409)
No provision
and Education Reform Act of 1998
to authorize $20 million each year for
establishes an account in the Treasury
FY2002 through FY2006 to establish
to be used by the Secretary of
projects that can show demonstrable
Agriculture for matching grants to
reductions in net greenhouse gas
address critical emerging agricultural
emissions or increases in carbon
issues.[P.L. 105-185]
sequestration by soils and
forests.[Section 905]
12. Mandatory Spending Increases for Energy Provisions
Not relevant.
None.
$110 million/year; $550 million total
$405 million total for FY2002-
(CBO estimate)
2007 (CBO estimate)
I. Anti-trust and Competition
1. Competition Task Force and
GIPSA Resources.
Directs the Secretary of Agriculture
No provision
a. No Provision
a. Interagency Task Force on
to set up an Interagency Task Force
(NOTE: An earlier version of the
Agricultural Competition.
on Agricultural Competition
Senate farm bill (S. 1628) contained a
No provision
comprised of nine employees from
Competition title that was struck
USDA and the Department of
during committee markup.)
Justice. The Task Force is directed
to conduct hear i n gs into
competition issues in agriculture
and submit a report on findings and
recommendations for administrative
and legislative action. [Section 937]

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b. GIPSA Staffing. No provision
b. Authorizes appropriations to
b. No provision
b. No Provision
enhance the capability of the Grain
Inspection, Packers and Stockyards
Administration (GIPSA) to review
competition in the meatpacking
industry and hire litigation
attorneys. [Section 938]
2. Meat Packer Concentration
a. Section 202 of the Packers and
a. No provision
a. Prohibits packers from owning,
a. No Provision
Stockyards Act of 1921]
feeding, or controlling livestock (to
No provision
the extent that the producer no longer
is “materially participating in the
production of livestock) for more than
14 days prior to slaughter. Exempts
cooperatives or entities owned by a
cooperatives and small (less than 2%
of livestock slaughtered) producer
packers owned by producers from this
prohibition. Requires packers who
own, feed or control livestock on the
date of enactment to be in compliance
within 18 months for hog packers and
180 days for all other livestock (e.g.,
cattle, sheep horses, mules and goats)
intended for slaughter. [Section 1043]
Note: adopted during Senate floor
debate.
b. GIPSA and Livestock Production
No Provision
b. Extends GIPSA authority to
b. Senate provisions amended to
Contract (Sections 202,203, 204, 205

include livestock production
include only swine production
of Packers and Stockyards Act of 1921)
contracts. [Section 1044]
contracts. [Section 10502]

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- currently GIPSA protects broiler
farmers growing under contract and
livestock producers selling directly to
packers; no authority over livestock
producers growing under contract.
c. Arbitration Clauses.( Packers and
No provision
c. Adds a new section 413A to
c. No Provision
Stockyards Act of 1921)
Packers and Stockyards Act that
No provision
removes mandatory arbitration
clauses from livestock contracts and
allows for dispute settlement through
other legal means in addition to
arbitration. [Section 1046]
(Note: Offered as a floor amendment
by Senators Feingold, Grassley, and
Harkin and adopted)
d. Confidentiality Clauses (Packers
No Provision
d. Amends PSA to add new section
d. Senate provision amended to
and Stockyards Act of 1921)
417 that allows contract producers to
apply provision to contracts
No provision
discuss contracts with advisors and
entered into, amended, renewed,
enforcement agencies even if the
or extended after enactment of
contract contains a confidentiality
this Act. [Section 10503]
agreement. [Section 1044]
ANIMAL WELFARE (Subtitle D)
J. Animal Transport, Inspection and Health
1. Definitions under the Animal
Health Protection Act
Current animal health-related statutes
No Provisions
Adds new definitions for: animal,
Senate Provisions [Section
define ‘animal’, ‘interstate’, Secretary,
article, disease, enter, export, facility,
10403]
and ‘United States’ [Animal Health
import, Indian Tribe, interstate

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Protection Act (21 USC§134)].
commerce, liv es t ock, m eans 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
No provision
Removes expiration date on surcharge Senate provision amended to
Animals
authority. [Section 1060]
include honeybees. [Section
Section 651 of the FY2002 Agricultural
10501]
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
No Provisions.
a. Consolidates current authorities on
a. Senate provisions [Section
President to suspend animal
animal importation. Among other
10404]
importations to protect U.S. animals
things, authorizes the Secretary to
from infectious contagious animal
prohibit or regulate the importation of
diseases (Section 101 of Title 21).
any animal, transport vehicles or
Gives the Secretary a variety of
facilities if this is needed to prevent
authorities to prevent the dissemination
entry or dissemination of a pest or
of a disease into the United States ((21
disease into the United States.
USC §102, §103, and (§§105 and
Applies similar restrictions to animals

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134a.).
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.]
b. Exportation. Authorizes the
b. No provisions.
b. Gives Secretary new authority to
b. Senate Provisions [Section
Secretary to adopt measures and issue
recover costs from owners for failures
10405]
regulations to prevent the exportation of
to comply and to regulate exportation.
diseased livestock and poultry (21 USC
Consolidates and keeps current
§§113,120,134b and §§612-614.)
authorities. [Section 1025].
c Interstate Movement. Broadly
c. No Provisions.
c. Consolidates current authorities.
c. Senate Provisions [Section
authorizes the Secretary to regulate and
[Section 1026].
10406]
to adopt measures to prevent the
transport or movement of diseased or
quarantined livestock and poultry
within the United States. (21
USC§§120, 125-128, 134a)
d. Animal Enterprise Terrorism
d. No provision
d. New provision making it unlawful
d. No provision
No provision
for a person to travel in interstate or
foreign commerce or use or cause to
be used the mail or any facility for
the purpose of causing physical
disruption of the functioning on an

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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. Adds new authorities allowing the
a. Senate Proposal [Section
a Several sections of Title 21 give the
No Provisions.
Secretary to ‘hold’, ‘treat’ or
10407]
Secretary broad authorities to prevent
‘destroy’ animals, articles and means
the spread of contagious infectious
of conveyance (from imports or in
diseases within the United States. (see
interstate commerce), if these are
21USC§§ 111, 113, 123, 134(a) and
affected by or have been exposed to a
134a(b)].
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.
b. No Provisions.
b. Makes final compensation payment
b. Senate provisions [Section
not subject to judicial review (Section
10407(d)(2)(C)]
1027).
[Note: similar language is found in
7USC§7715 for Plant Protection
Authorities.]
c. Gives new authorities to the
c. Inspection, Seizures, and Warrants.
No provisions.
Secretary to stop and inspect, on
c. Senate Provisions [Section
Authorizes the Secretary to inspect,
probable cause, persons or means of
10408]

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without a warrant all persons or means
conveyance coming from quarantined
of conveyance entering the United
areas in intrastate commerce. Retains
States for prevention of introduction or
current authorities for warrantless
dissemination of any communicable
inspections of persons or means of
animal disease (7USC§134d ). The
conveyance in international and
Secretary has similar authorities in
interstate commerce and authorities to
interstate commerce when, on probable
inspect premises with a warrant, but
cause, there is a need to determine
adds allowance for said warrant to be
whether persons or means of
executed by a U.S. marshal. [Section
conveyance are carrying infected or
1028].
exposed animals, products, or regulated
(Note: Similar authorities are found in
articles. The statute also authorizes the
7USC§7731 for Plant Protection.)
inspection of premises, and seizures (on
probable cause and with a court
warrant) to prevent the introduction or
dissemination of an animal disease.
Needed warrants may be executed by
USDA officials.
d. Detection, Control, and Eradication
d. No Provisions.
d. Authorizes the Secretary to carry
d. Senate Provisions [Section
of Diseases and Pests.
out activities to detect, control, or
10409]
No similar authorities
eradicate any pest and disease of
livestock (including the drawing of
blood and diagnostic testing of
animals), including animals at a
slaughterhouse, stockyards, or any
other point of concentration. The
measure also authorizes the payment
of claims arising from the destruction
of animals, articles or means of
conveyance. [Section 1029].

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5. Veterinary Accreditation
Program.
No Provisions.
Authorizes the Secretary to establish
Senate Provision [Section
No similar authorities exist. Current
a veterinary accreditation program,
10410]
veterinary accreditation program is
w h i c h w o u l d i n c l u d e t h e
voluntary.
establishment of standards of conduct
for veterinary practitioners. [Section
1030].
6. Cooperation.
(a) Several sections of Title 21 give the
No Provisions.
a. Keeps and consolidates present
Senate Provision [Section
Secretary broad authorities to cooperate
authorities.[Section 1031]
10411]
with 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
b. No Provision
b. Retains the screwworms program
b. Senate Provision [Section
produce and sell sterile screwworms to
as currently authorized, except that its
10411(c).]
foreign countries or international
proceeds are to be deposited directly
organizations, with the proceeds going
to the account from which the
into the U.S. Treasury, and credited to
operating expenses have been paid
the appropriation from which the
and not to the program’s yearly
operating expenses of the facility
appropriation. [Section 1031].
producing the screwworms had been
paid. (21USC§114d).

7. Consultations with Heads of
No Provisions.
Directs the Secretary to consult with
Senate Provisions [Section
Federal Agencies.
the heads of a Federal agencies with
104119(d)]
No similar authorities exist related to
respect to any activity that is under

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animal health laws.
their jurisdiction. The new provision
also appoints USDA as lead agency
with respect issues related to pests
and diseases of livestock. [Section
1031].
8. Reimbursable Agreements.
The Secretary is currently authorized to
No Provisions.
Keeps current authorities, but adds a
Senate Provisions [Section
enter into reimbursable fee agreements
new subsection for late payment
10412]
with persons at locations outside of the
penalties, including the payment of
United States to run animal and plant
interest as currently required under
health importation preclearance
31USC§3717 on Interest and
programs. (7USC§2260a). Statute also
Penalties on Claims [Section1032].
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
provisions.
Adds new authorities for
the
Senate Provisions [Section
No similar authorities exist related to
Secretary to acquire and maintain real
10413]
animal health laws.
or personal property, employ a
person, and make grants, contracts, or
agreements to carry out this Act. In
addition, the Secretary acquires new
authority to pay tort claims outside of
the United States, as authorized by
applicable statutes. [Section 1033]

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10. Penalties.
a. Current law establishes criminal
No Provisions.
Streamlines criminal and civil
Senate Provisions [Section
penalties of fines and/or up to one year
penalties for violations of animal
10414]
of imprisonment, and also civil
health statutes. Provides for new civil
penalties of up to $1000 for violations
penalties, and fines. Provides new
animal importation regulations
authority for the Secretary to suspend
(21USC§104). Section 21USC§117
or revoke accreditation to any
establishes penalties for knowingly
veterinarian that violates the Act.
transporting diseased livestock or
The Secretary may also summarily
poultry in violation of law with:(1)
suspend an accreditation if there is
criminal penalties that make it a
reason to believe that the statutes
misdemeanor punishable by up to
have been violated. A prompt post-
$5,000 fines or imprisonment, or both
suspension hearing is mandated in
to; and (2) civil penalties of fines up to
such cases [Section 1034].
$1,000 after a notice and the
(Note: Identical authorities are found
opportunity for a hearing on record.
in 7USC§7734 for Plant Protection
Orders for penalties shall be treated as
Authorities.)
a final, and are reviewable under
28USC§158. (Similar civil and
criminal penalties are established by in
Title 21 sections 122, 127, and 134b).
11. Regulations and Orders.
Currently several statutes authorize the
No Provisions.
Consolidates the Secretary’s broad
Senate provisions. Section
Secretary to issue regulations necessary
authority to promulgate regulations,
10416]
to carry out animal health law
and issue orders, as necessary to carry
provisions for export, transport,
out animal health statutes. [Section
certification, inspection, disinfection of
1036].
livestock and poultry. (21USC§§ 111,
120, 125 and 134f).

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K. Plant Protection
New Penalties for Violations of the
No Provisions.
Amends §424 of the Plant Protection
Senate provision [Section
Plant Protection Act
Act (7USC§7734): (1) by replacing
10810]
criminal penalties provisions with a
new subsection which describes
criminal penalties for major violations
(e.g., multiple violations or for
violations with the intent to harm
agriculture in the United States), and
for other violations; and (2) by adding
a subsection to allow for forfeiture in
criminal and civil cases and for the
establishment of appropriate
procedures. [Section 1068].
L. Pseudorabies Eradication
Section 2506(d) of the Food,
No Provisions
Extends the pseudorabies eradication
House provision with extension
Agriculture, Conservation, and Trade
program authority until FY2006.
of authority through FY2007.
Act of 1990 authorized the
[Section 1059].
[Section 10505]
pseudorabies eradication 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.

M. Preclearance Quarantine Inspections for Hawaii
No Provisions
No Provisions
Orders the Secretary to conduct
Senate Provision with $3 million
preclearance inspections for
of FY2003 appropriations

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departures out of Hawaii and destined
[Section 10811]
to the continental United States or its
territories, provided that no less than
$3 million in FY2002 appropriations
be made available for an act different
that P.L. 107-76 (Agriculture
appropriations for FY2002). [Section
1063].
N. Non-Ambulatory Farm Animals
No similar provision for unlawful
Adds a new section to Title III of
Same as House [Section 1045].
Dropped House and Senate
practices
PSA that i nt roduces new
provisions instead adopting a
(Packers and Stockyards Act (PSA) of
definitions, unlawful practices, and
requirement that the Secretary
1921)
exceptions, as follows:
investigate and issue a report to
‘Humanely euthanized’ is defined
Congress on practices involving
to mean to kill an animal by
non-ambulatory livestock, and
mechanical, chemical, or other
authorizing the issuance of
means that immediately render the
regulations based on the findings
animal unconscious, with this state
of the report, if the Secretary
remaining until the animal’s death,”
determines this is necessary.
“Non-ambulatory Livestock” means
[Section 10815]
any livestock that is unable to stand
and walk unassisted.
Makes it unlawful under Section
312 of the PSA (1) for any
stockyard owner, market agency, or
dealer to buy, sell, give, receive,
transfer, market, hold, or drag any
non-ambulatory livestock unless the
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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].
O. Animal Welfare Act (nonfarm animals)
1. Care and Treatment standards for
dogs.
No Provisions
Amends the Animal Welfare Act
No Provision
No provisions
ordering the Secretary to include
minimum standard requirements: (1)
for the socialization of dogs intended
for sale as pets; and (2) for 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.
a. Excepts birds, rats and mice used
a. Senate Provisions [Section
Welfare Act. The Animal Welfare Act
for research from protection under the
10304]
sets minimum standards of animal care
Animal Welfare Act (AWA) by
for experimental laboratories, animal
amending the definition of “animal”
dealers, and others. In 1970, the AWA
in Section 26 of the Animal Welfare
was amended to protect “warm-
Act [7USC§2156 2(g)]. The

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blooded animals” used in research but
provision codifies current regulations,
gave the Secretary the authority to
which specifically exclude birds, rats
determine AWA’s applicability to
and mice for research use from
animals not specifically mentioned in
protection under this Act (see
the Act. Current regulations specifically
9CFR§1.1). [Section 1051].
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).
b. Report
No provisions.
b. Requires from the Secretary of
b. Senate Provisions [section

Agriculture a report, completed by the
10304]
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].

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3. Animal Fighting Ventures and
Cockfighting
Imposes fines of not more than $5,000
Amends Section 26(e) of AWA by
Same as House [Section1052].
House version with “special
or imprisonment for not more than 1
increasing fines to not more that
rule” for states where fighting is
year, or both, for each violation
$15,000 and imprisonment to no
legal. [Section 10302
(Section 26 (e) of the Animal Welfare
more than 2 years, or both, for each
Act, as amended by Section 17 of the
violation. [Section 940(a)(1)].
Animal Welfare Amendments Act of
Adds phrase “or from any State into
1976)
a foreign country” to the statute’s
Defines ‘Interstate or Foreign
‘interstate or foreign commerce’
Commence’ as: (A) any movement
definition. [Section 940(a)(2)].
between any place in a State to any
place in another State or between places
in the same State through another State;
or (B) any movement from a foreign
country into any State. (Section
26(g)(2))

4. Interstate Movement of Animals
for Animal Fighting:
Currently, interstate movement of
Amends Section 26(d) of the
Same as House [Section 1053].
House provision [Section 10301]
animals for fighting is legal to states
Animal Welfare Act to prohibit the
where fighting is allowed. Section
interstate movement of animals for
26(d) of the Animal Welfare Act, as
fighting. Section 26(d) would read
amended, reads as follows: “(d) Not
as follows: “(d) Activities Not
withstanding the provisions of
Subject to Prohibition- This section
subsection (a), (b), or (c) of this section,
does not apply to the selling,
the activities prohibited by such
buying, transporting, or delivery of
subsection shall be unlawful with
an animal in interstate or foreign

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respect to fighting ventures involving
commerce for any purpose, so long
live birds only if the fight is to take
as the purpose does not include
place in a State where it would be in
participation of the animal in an
violation of the laws thereof.” (7USC§
animal fighting venture.” [Section
2156(d)).
941(a)].
5. Humane Methods for Animal
Free standing provision expresses
Similar to House bill, except that also
Adopts both House and Senate
Slaughter
sense of Congress that USDA
calls for resuming the tracking and
provisions. [Section 10305]
Humane Methods Slaughter Act of
should fully enforce the Humane
reporting of Act violations to
1958.
Methods Slaughter Act of 1958
Congress. [Section 1067].
(7USC§§1901 et seq.) [Section
939].
P. Genetically Engineered Products
Report on Genetically Engineered Food
Authorizes $0.5 million for a
Sense of the Senate Resolution for the
Sense of the Congress that the
(GEF) and Genetically Engineered Pest
National Academy of Sciences
Secretary to submit a report on
Secretary review National
Protected Plants
report on GEF regulations, safety
genetically engineered pest-protected
R e s e a r c h C o u n c i l
and monitoring. [Section 933].
plants. Authorizes appropriations of
recommendations and submit a
$10 million from FY2002 and sums
report on this to the Congress.
as necessary for other fiscal years.
[Section 7410]
[Section 1083]
Public Education of GEF
Authorizes a USDA program to
No provision
No provision.
educate the public about GEF.
[Section 935].

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Q. Pesticides and School Pesticide Management Plans
1. Fee collection
No provision
Amends FIFRA to reauthorize fee
No provision.
[Section 4, Federal Insecticide,
collection (to support reregistration of
Fungicide, and Rodenticide Act,
pesticides), increase maintenance
FIFRA]2. Small Business Eligibility
fees, prohibit collection of
for reduced fees.
registration fees for five years, and
Permits lower maintenance fees for
allow expedited registration
businesses with 150 or fewer
processing for inert gradients. It also
employees.
would strictly limit increases in
[Section 4, FIFRA)]
tolerance processing fees charged to
registrants of pesticides used on food.
Expands the number of businesses
eligible for reduced fees from those
with 150 or fewer employees to those
with 500 or fewer employees.
[Section 1041]
3. Pest Management in Schools
No provision
No provision
Amends FIFRA to create a new
No Provision
section 33, “School Environment
Protection Act of 2002” that requires
Pest Management in Schools.
Requires states to develop pest
management plans as part of state
cooperative enforcement agreements
with the EPA. Set requirements for
what should be included in plans and
requires the EPA to distribute
guidelines to states no later than one
year after enactment, after which
State educational agencies would be

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required to develop plans and submit
them to the Administrator for
approval. Local education agencies
would be required to implement their
state plan within one year of receiving
it. [Section 1042]
R. Socially Disadvantaged Farmers and Ranchers (See also Title V, Farm Credit)
1. Compilation of program participation
No Provision
Amends Section 2507 of the FACT
S e n a t e p r o v i s i o n w i t h
data
Act to require the Secretary to
amendments. [Section 10708]
No provision in current law
compute annually for each county and
[Section 2507 of the Food, Agriculture,
state. the participation rate of socially
Conservation and Trade Act of 1990]
disadvantaged farmers and ranchers
as a percentage of total USDA
program participants. [Section 1057]
2. Elections for country areas or local
committees.
No provision
Adds requ i rem en t s fo r the
S en at e p r o v i si o n s , wi t h
No provision in current law
composition of county, area or local
amendments to require the
[Section 8 (b)(5) of the Soil
committees that will make them fairly
Secretary to report participation
Conservation and Domestic Allotment
representative. Requires the Secretary
rates of socially-disadvantaged
Act]
to establish procedures for
farmers and ranchers by race,
nominations and elections committees
ethnicity, and gender and in
and to solicit and accept nominations
those instances when socially-
from organizations representing
disadvantaged farmers or
interests of socially disadvantaged
ranchers are not adequately
farmers. Requires public notice and
represented on a local or area
observation of opening and counting
committee, permits the Secretary
of ballots by any person, and filing of
to appoint one additional voting
an election report on the outcome of
member to the committee.
the election with the Secretary and the
[Section 10708]

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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
g u i d e l i n e s t o e n s u r e f a i r
r e p r e s e n t a t i o n o f s o c i a l l y
disadvantaged for conducting
elections if necessary after analyzing
the data contained in the election
report. [Section 1057]
3 . D e f i n i t i o n o f S o c i a l l y
disadvantaged group. For the purpose
No Provision
Amends 1990 FACT Act to add
Senate Provision [Section
of Outreach and assistance, defines a
“gender” to the definition of a
10708]
socially disadvantaged group as a group
socially disadvantaged group eligible
whose members have been subjected to
for outreach and assistance. [Section
racial or ethnic prejudice because of
1057]
their identity as members of a group
without regard to their individual
identities.[Section 2501(e) of the FACT
Act of 1990].
Note: Section 355(e) of the
Consolidated Farm and Rural
Development Act of 1999 adds
“gender” to the definition of a socially
disadvantaged group for the purposes of
loan eligibility.

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S. Geographically Disadvantaged Farmers and Ranchers
No Provision
No Provision
Establishes a new program to
Drops Senate provisions creating
e n c o u r a g e g e o g r a p h i c a l l y
and funding a new program.
disadvantaged farmers and ranchers
Maintains Senate provision
in owning and operating farms and
d e f i n i n g g e o g r a p h i c a l l y
ranches and participating equitably in
disadvantaged farmers and
the full range of agriculture programs
ranchers. Adds a provision
offered by the USDA. Authorizes $20
requiring the Secretary of
million annually for FY2002-2006 to
Agriculture to submit a report to
carry out this program, and defines a
t h e H o u s e a n d S e n a t e
geographically disadvantaged farmer
Agriculture Committees not later
or rancher as one in an insular area or
than one year after enactment
a state other than one of the 48
that describes: barriers to
contiguous states. [Section 1079B]
efficient and competitive
transportation of inputs and
products by geographically
disadvantaged farmers and
r a n ch ers ; a n d w a ys o f
encouraging and assisting such
farmers and ranchers in owning
and operating farms and ranches
and participating in the full
range. of USDA programs.
[Section 10906]
T. Assistant Secretary of Agriculture
No Provision
Amends Section 218 to require the
Senate provisions amended to
for Civil Rights
Secretary of Agriculture to establish
endure that this new Secretary is
the position of Assistant Secretary of
under the authority of the
[Section 218 of the Department of
Agriculture for Civil rights to be
Secretary of Agriculture [Section
Agriculture Reorganization Act of
appointed by the President by and
10704]

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1994]
with the advice and consent of the
No provision
Senate, with listed duties and
responsibilities [Section 1056]
U. Farm Marketing Programs
1. State Marketing Programs.
1. No provision
Establishes a State Marketing
D e l e t e s n e w p r o g r a m
Federal support for: the promotion of
Program funded with CCC funds
authorization, funding and
agricultural products through research
(mandated at $7 million FY2003, $8
priorities; instead requires the
to improve the marketing, handling,
million for FY2004 and $10 million
Secretary to work with states to
storage, distribution and transportation
for each of fiscal years 2005 and
develop programs to train
of agricultural products; cooperation
2006). Fund are to be allotted to state
managers of farmers markets,
between federal, state and local
departments of agriculture and other
develop opportunities for
agenci es , pro d ucers, industry
appropriate State agencies for
information sharing, and
organizations and others in research and
cooperative projects in marketing
establish a program to train
application of effective marketing
services and research. From the CCC
cooperative extension services
program; and integrated administration
funds allotted under this program , the
employees in the development of
of all laws enacted by the Congress to
Secretary is to give priority to
direct marketing techniques.
aid the distribution of agricultural
initiatives designed to support direct
[Section 10605(b)]
products through research , market aids
and others marketing efforts of small
and services and r egulatory
farms and limited resource farmers.
activities.[Title II Agricultural
[Section 1050]
Marketing Act of 1946. ]
2. Farmers Market Promotion
No provision.
Among other things, authorizes $10
Authorizes such funds as are
Program. Federal aid to promote the
million annually for fiscal years
n e c e s s a r y , s u b j e c t t o
development and expansion, of direct
2002-2006 to make grants under a
appropriations, for the creation
marketing of agricultural commodities
new ‘Farmers’ Market Promotion
of a new Farmers Market
from farmers to consumers farmers’
Program’ to establish, expand and
Promotion Program. Maintains
market and other means (i.e., farmers
promote farmers markets. Maximum
Senate provisions regarding
markets) [The Farmer-to-Consumer
grant amounts set at $500,000 in any
eligible entities, but gives the
Direct Marketing Act of 1976]
fiscal year. Includes types of entities
Secretary the authority to set

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eligible for such funds, and the
criteria and guidelines instead of
criteria and guidelines for grant
setting these in the aw. [Section
submission, evaluation and funding.
10605(a)]
[Section 1050]
V.Organic Certification
1. Cost-Share Program - No Provision
No Provision
Directs the Secretary to use $3.5
Adopts Senate provision, revised
million of CCC funds for each of
to require the Secretary to use $5
fiscal years 2002-2004 and $3 million
m i l l ion of CCC fund s,
for FY2005 to establish a national
beginning in FY2002, to
organic certification cost-share
establish a national organic
program to assist producers and
certification cost-share program.
handlers of agricultural products in
[Section 10606]
obtaining certification under the
National Organic Production
Program. Sets maximum federal share
at 75%, and maximum individual
payment to a producer or handler at
$500. [Section 1065]
2. Exemptions from assessments for
No Provision
No Provision
Exempts from assessments under
organic farmers. No Provision
a commodity promotion law a
person that produces and markets
100% organic products and
requires Secretary to promulgate
relevant regulations within 1
year of enactment [Section
10607]
W. Food Safety Commission
No Provision
No Provision
E s t a b l i s h e s
a F o o d S a f e t y
Adopts Senate provision with
Commission composed of 15
revisions to, among other things,

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members from consumer groups, food
p rovide for Pres i d en t i al
processors, producers and retailers;
appointment of membership,
public health professionals; food
change eligibility standards for
inspectors and regulators, academics
appointees, and describe how
and other interested individuals.
each of the Commission’s
Requires the Commission to make
r e c o m m e n d a t i o n s w o u l d
specific recommendations that build
improve food safety [Section
on the recommendations of the NAS
10807].
report on ensuring safe food, that
provide a basis for legislative
language to improve the food safety
system, public health and harmonize
the food safety system. [Section
1066]
X. Miscellaneous Studies, Reports and Task Forces
1. Requires Studies and/or Reports -
No Provisions
Requires the Secretary to issue a
Requires reports or studies on
Salmon, Genetically modified plants,
report or study on: Pouched and
specialty crop purchases [section
U. of Arkansas Litter Bank, Pesticide
canned salmon; genetically modified
10901]; the effect on producers
s a l e s a n d u s e , P r o d u c e r
pest protected plants; the feasibility of
of updated yield bases [section
Indemnification, Rats, mice and birds -
producer indemnification from
10903]; the effect of farm
No Provisions
government caused disasters; creation
program payments [section
of Litter bank by the University of
10904]; Chiloquin Dam fish
Arkansas; the sale and use of
passage feasibility [section
pesticides for agricultural uses; rats,
1 0 9 0 5 ] ; g e o g r a p h i c a l l y
mice and birds. Of these only the
disadvantaged farmers and
study of GM pest-protected plants
ranchers [section 10906] ;
authorizes funding — $10 million for
agricultural research and
FY2002 and such sums as are
technology [section 10907]; the
necessary thereafter. [Sections 1081,
sale and use of pesticides for
0183, 1084, 1085, 1086 and 1087].]
agricultural purposes [section

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10909]; review of the operation
of agricultural and natural
resource programs on tribal trust
land [section 10910]
Requires the Comptroller General to
2. Master Settlement Agreement
No provision
submit annually to the Congress,
Senate provision [section 10908]
beginning December 31, 2002, a
report describing all programs and
activities carried out by states using
funds receive und the master
Settlement Agreement of 1997.
[Section 1082]
3. Task Force on National Institutes of
No Provision
Requires the Secretary to establish a
No provision
Plant and Agricultural Sciences
task 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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