For other versions of this document, see http://wikileaks.org/wiki/CRS-RL31704
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                                                   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 (7-7331)
Narrative Comparison
Commodity Programs:
 Wheat, feedgrains, cotton, oilseeds,      Jasper Womach (7-7237)
 tobacco, and general rules
 Dairy                                     Ralph Chite (7-7296)
 Peanuts and Sugar                         Remy Jurenas (7-7281)
 Specialty crops
   Fruits, vegetables, nuts, flora         Brenda Branaman (7-4277)
   Honey, wool, mohair                     Carol Canada (7-7619)
Conservation                               Jeffrey Zinn (7-7257)
Agricultural Trade and Aid                 Geoffrey Becker (7-7287)
Nutrition Programs                         Joe Richardson (7-7325)
Farm Credit                                Jerry Heykoop (7-0248)
Rural Development                          Tadlock Cowan (7-7600)
Research                                   Jean Rawson (7-7283)
Forestry                                   Ross Gorte (7-7266)
Federal Crop Insurance                     Ralph Chite (7-7296)
Energy                                     Brent Yacobucci (7-9662)
Animal Welfare                             Alex Segarra (7-9664)
Genetically Engineered Food
Pesticides                                 Linda Schierow (7-7279)


For more information, see CRS Report RL31195, The 2002 Farm Bill: Overview and
Status; CRS Report RS21233, The 2002 Farm Law at a Glance.

Individual topic comparisons include the following CRS reports: CRS Report RL31524,
The 2002 Farm Bill: Comparison of Commodity Support Provisions with House and
Senate Proposals and Prior Law, by Jasper Womach; CRS Report RL31486, Resource
Conservation Title of the 2002 Farm Bill: Comparison of New Law with Bills passed by
the Senate and Prior Law, by Jeffrey Zinn; and CRS Report RL31271, Energy Provisions
the Farm Bill: Comparison of the New Law with Previous Law and House and Senate
Bills, by Brent Yacobucci.
    A New Farm Law: Comparing the 2002 Law
       with Previous Law and the House and
                    Senate Bills

                                  Overview
     President Bush signed a new farm law (P.L. 107-171, the Farm Security and
Rural Investment Act of 2002, on May 13, 2002. This followed almost two years
of hearings, committee deliberations, and floor debates. The House passed its bill
(H.R. 2646) on October 5, 2001. The Senate passed its version of this legislation on
February 13, 2002. The House and Senate conferees began formal meetings on
April 9, 2002 and reached agreement on their differences on April 22, 2002. The
House approved the conference agreement (H.R. 2646, H.Rept. 107-424). on May
2, 2002 by a vote of 280-141; the Senate approved it on May 8, 2002 by a vote of 64-
35.

      The final law contains ten titles: Commodity Programs, Conservation, Trade,
Nutrition Programs, Credit, Rural Development, Research and Related Matters,
Energy, and Miscellaneous. At the time of its enactment, the new law was projected
to add $73.5 billion to federal funding for food and agriculture programs over 10
years.1 This included new funding for farm commodity programs (+$47.8 billion);
conservation programs (+$17.1 billion); trade (+$1.1 billion); nutrition programs
(+$6.4 billion); research (+$1.3 billion); and rural development (+$870 million).
April 2002 CBO estimates projected new federal costs for the new law at $82.8
billion.

     Total budget authority for programs in the new law (that is, baseline spending
plus new spending) was projected by the Congressional Budget Office (CBO) when
the legislation was approved to be $274 billion over its six-year life span. Of this
amount some $99 billion was expected to go to about 600,000 farmers in the form
of direct payments; $150 billion to support the cost of food stamps and commodity
assistance to some 17 million low income persons; and the remaining $25 billion for
conservation ( $21 billion), trade ($2.1 billion), rural development ($1 billion), and
research, forestry and energy ($2.5 billion) programs.




1
  Based on March 2001 CBO baseline estimates. March 2002 baseline estimates brought
the estimated new cost to a total of $82.8 billion over 10 years.
                                        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 ered Planted" is 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, Non reco u rs 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
                                              for counter-cyclical
                                              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 ract 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      available for loan
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
Loan rates generally are to be not less than                              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
                                         moving 5-year Olympic
average of prices received by producers, or                               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
                                          non-PFC farms that
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
                                        compliance, planting                                                      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 Counter-cyclical deficiency 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.
                                                avoiding forfeitures.                              [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   Secretary would be                  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 er n m en 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 ul d recei ve 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 15-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
                                     compacts and export              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.               Mandated specialty crop             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 ted to $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 al l o wan ce o f an 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
                                                                                  analyze         and    make
                                                                    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.    total spending for                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.     Title II of the Agriculture,      Title II of the Farm Security and
of 1985 as amended by Title III of the                                        Conservation, and Rural           Rural Investment Act of 2002.
Federal Agriculture Improvement                                               Enhancement Act of 2001.
and Reform (FAIR) Act of 1996.
1. Purpose and Programs. No provisions.                                       Renames          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
soil and water resources.                                                                                                    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
the FY2001 Agriculture
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
long-term         agreements.                                                        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 ech 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        quality while maximizing                 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        management practice,"
"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 paym en t s f o r
authorizes contracts of 5 to 10 years;    environmental benefits per dollar spent;   Secretary to provide conservation        comprehensive nutrient
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 Ho 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 eval uat 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]                                                                                                             systems must               have
                                                                                                                      comprehensive nutrient
                                                                                                                      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       to provide competitive
                                     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             viability program and
                                                                                     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.                              Adopts House provision,
Program. Provides financial and        "FY2002 and each succeeding year" to                                           modified to authorize mandatory
technical assistance to rehabilitate   fund the Small Watershed                                                       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      program          under the
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
implementing conservation                                                       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
approved a n d i m plemented                                                                                 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 yp 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                                                                          limit, and permanently
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
                                    the Tree Planting Ini t i at 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
                                                                             to private conservation                 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
                                                                               implementing restoration              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      participants subject to
                                                                            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% of all mandatory
                                                               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)]
                                                                Authorizes a new Water
                                                                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         modified to authorize
                                                                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 Miscellaneous
                                                                  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 specified.
                                                                                                  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 years. Authorizes
                                                                                                             appropriations as necessary
                                                                                                             annually from FY2002-2007
                                                                                                             with the federal portion to pay
                                                                                                             for up to half of the total cost
                                                                                                             [Section 2601]
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 equires all im pl em ent i ng
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]              including commercial
                                                                                                                       requirements adversely
                                                                                                                       affecting new technology like
                                                                                                                       biotechnology and unjustified
                                                                                                                       sanitary or phytosanitary
                                                                                                                       restrictions; (4) unfair
                                                                                                                       implementation of tariff rate
                                                                                                                       quota rules; (5) failure to meet
                                                                                                                       trade agreement obligations
                                                                                                                       with the United States. [Section
                                                                                                                       3104]
                                                               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 the World Trade
Organization. [Food Security Act of 1985
as amended by Section 148 of the FAIR
Act of 1996]


5. Export Credit Guarantees (GSM)
a. Authority through FY2002 with 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 negotiations
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 end 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 organizations, 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 gan i z at 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. 480 Operation &
Administration                                       a. Authorizes the use of U.S. dollars   a. Similar to House [Sections       a.     Monetization language
a.    Permits PVOs to sell Title II                  and other currencies for                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
                                                                         program agreements 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
                                                                         transferred to eligible
                                                                         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
                                                                      streamlined application               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 es ,
                                                                      334]                                  respectively, the President and
                                                                                                            Secretary of Agriculture, within
                                                                                                            270 days, to review and make
                                                                                                            any needed changes in rules and
                                                                                                            procedures aimed at
                                                                                                            streamlining application
                                                                                                            procedures, including
                                                                                                            consideration of pre-screening
                                                                          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]         transferred to eligible
                                                                                 organizations for carrying out
                                                                                 projects. [Section 334]
7. Bill Emerson Humanitarian Trust
Authorizes, through FY2002, a trust        Extends the Trust through FY2011.     Extends the Trust through            Ex tends the Trust 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]             ye 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      the McGovern-Dole
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 Fo 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        Eligible organizations:
Section 416]                              to designate the federal agency to     organizations, and foreign           cooperatives, PVO's,
                                          administer program; defines eligible   countries, which are subject to a    intergovernmental
                                          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.        agencies, and other
                                          agencies, and other organizations.     [Section 325]                        organizations. Includes Senate
                                          [Section 312]                                                               graduation requirement;
                                                                                                                      program funding priorities and
                                                                                                                      application guidelines;
                                                                                                                      assurances that recipient
                                                                                                                      country 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 for
                                          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 expenses.
                                                                                                                      [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        adjustments in such
                                             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 section within the                 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   exporters harmed by                  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   concerns; authorizes                  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              assist 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 language directs
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               and semiperishable
                                                                           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       establishments 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"           "perishable agricultural                 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;    perishable agricultural               perishable agricultural
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 cl 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
assi st ance, l oans, most 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     payments" ex cluded under
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       inflation-indexed 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                            Repeals the current shelter
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                           ot her issuance system s are [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,        authorize nationwide
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                            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. 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
developing food stamp                                            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
certification period, specific                                   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
households leaving TANF.                 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 fu 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          indicators of effective
                                                 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                               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
                                         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.
$165 million for FY2002).                [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 amoa.         Mandat es t he
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).
FY2002 grant amount is                 [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 Mi 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
certain        aliens        whose                                   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                                  legal permanent residents,                  (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          FY2011, the $50 million                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            commodity authorities/
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        military personnel in
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. Nutrition          Education
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
                                                                                                                          to) a non-governmental
                                                                                                                          organization to coordinate with
                                                                                                                          federal agencies, states and
                                                                                                                          political subdivisions, and non-
                                                                                                                          governmental organizations to
                                                                                                                          gather information (and make
                                                                                                                          recommendations)about
                                                                                                                          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 ad d ition, adopt s an
                                                                                 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      $115        million        (budget         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   $115        million        ( 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)]
within 10 years (Section
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]                   program for FY2003-
                                                                                                            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          regarding 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]     House provision [Section
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.                                   finance agriculture-related
[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                          Repeals Fund for Rural
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        Value-Added Agricultural               Value-added Agriculture Market       House Provision
grants under the Agricultural Risk       Prod u ct Mark et Gran 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 ed In termed i a ry 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     [Note: Eligible rural
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 trep re 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
                                                                   fund regional planning
                                                                   organizations. Maximum grants of
                                                                   $100,000, "not to exceed 75% of
                                                                   the federal share of the cost of
                                                                   providing assistance to     local
                                                                   governments." [Section 624]
3. The Consolidated Farm and Rural No Provision                    Rural Endowment Program. $82 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     Reauthorizes Rural
Service: Miscellaneous loans and          Opportunity Grants [Section   the Consolidated Farm and Rural     Cooperative Development
grants:                                   607] , Rural Coop erative     Development          Act,     7     Grants [Section 6015], Rural
(1) Establishes Business Opportunity      Development Grants [Section   U.S.C.1926(a)(11)(D)) to            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 Venture Capital
[Section 310B(c)]; (3) Authorizes Rural      Makes Rural Empowerment               Consolidated Farm and Rural        Demonstration 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
Zo n es and Rural Enterpri s e
Communities (EZ/ECs) .
[Note: The 1996 FAIR Act incorporates
EZ/ECs. The Agriculture
Reorganization Act of 1994 (P.L.103-
354) reorganizes USDA Rural
Development into the RUS, RBS, and
RHS(former Farmers Home
Administration non-farm functions);
Act provided for the transfer to RBS of
the assets and liabilities of Business and
Industry Guaranteed Loan Program
(310)a))1) of the Consolidated Farm
and Rural Development Act of 1972.]
Cost of Rural Development 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-
                       discretionary authoriz ation development programs.             Total   2007. [Note: This figure
                       FY2002-2011, $3.6 billion.      direct and discretionary               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 1977 (NARETPA); 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          regarding           minimum
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 rm 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   Removes authority for                  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]                 NOTE: Makes student count
                                          mechanism more flexible and
                                          clarifies calculation of full-time
                                          Indian students. Previous calculation
                                          was designed for two specific tribal
                                          colleges under the Carl Perkins Act,
                                          and the new one is designed for 24
                                          of the now 31 tribal colleges under
                                          the 1978 Act.
4. Authorizes $5 m. 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 insurance,              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
                                                                                                                    organizations to expand
                                                                                                                    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      environmental effects of            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 ak 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 bioterrorism
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   money (but subject to
                                                                           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
                                                                           future food production,
                                                                           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 follows 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
                                                                              Relations to improve
                                                                              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
                                                                         moderate-sized farms, and
                                                                         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
USDA's Commodity Credit                                                         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
                                           promotion, including paid
                                           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    Ti tle IX, Energy and ot her
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 gr 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
that ex pansion.           All o w able                                                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]
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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 Secretary of              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]
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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        for fisca l ye ars 2003-
                                                                               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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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
                                                                              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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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
                                         [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
                                         carbon cycle research.                  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
                                                                                 environmental benefits of
                                                                                 conservation practices that increase
                                                                                 sequestration.      $10 million is
                                                                                 authorized each year for FY2002
                                                                                 through FY2006.
                                                                                 [Section 388K]
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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


9. Biomass Research and Development
Th e Bi om as 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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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
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 heari ngs into
                                      competition issues in agriculture
                                      and submit a report on findings and
                                      recommendations for administrative
                                      and legislative action. [Section 937]
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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
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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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
- 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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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
Protection Act (21 USC§134)].                               commerce, livestock, means of
                                                            conveyance, move, pest, and State.
                                                            [Sec. 1023].
                                                            [Note: Similar definitions are found
                                                            in 7USC§7702 from the Plant
                                                            Protection Act, P.L. 106-224, §403 ,
                                                            114 STAT 438-440.]


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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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
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
                                                                 CRS-200

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
                                                                    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]
                                                                CRS-201

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
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].
                                                                  CRS-202

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
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                                  which would include the
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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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
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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     OLD LAW/POLICY                              H.R. 2646                  S. 1731, amended               COVERS 2002-2007
     COVERS 1996-2002                         COVERS 2002-2011             COVERS 2002-2006
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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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
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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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
                                                                         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 introduces 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
                                       non-ambulatory livestock has been
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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
                                        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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MISCELLANEOUS                                       HOUSE BILL                   SENATE BILL                      NEW LAW P.L. 107-171
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     COVERS 1996-2002                             COVERS 2002-2011             COVERS 2002-2006
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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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. 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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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
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    Research           Council
                                      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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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
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
                                                                   CRS-212

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
                                                                        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 requirements for the                 Senate provisio n s , with
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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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
                                                                 State office of the Farm Service
                                                                 agency within 20 days of an election,
                                                                 and a national report no later than 90
                                                                 days after the first election after
                                                                 enactment. Sets the term of office for
                                                                 membership on a county, local or area
                                                                 committee at not more than 3 years.
                                                                 Requires the Secretary to publish in
                                                                 the Federal register proposed uniform
                                                                 guidelines to ensure fair
                                                                 representation of socially
                                                                 disadvantaged for conducting
                                                                 elections if necessary after analyzing
                                                                 the data contained in the election
                                                                 report. [Section 1057]
3. Definition of Socially
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.
                                                              CRS-214

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
S. Geographically Disadvantaged Farmers and Ranchers
No Provision                         No Provision                Establishes a new program to              Drops Senate provisions creating
                                                                 encourage geographically                  and funding a new program.
                                                                 disadvantaged farmers and ranchers        Maintains Senate provision
                                                                 in owning and operating farms and         defining geographically
                                                                 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 ouse and 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
                                                                                                           ranchers; and ways of
                                                                                                           encouraging and assisting such
                                                                                                           farmers and ranchers in owning
                                                                                                           and operating farms and ranches
                                                                                                           and participating in the full
                                                                                                           range. of USDA programs.
                                                                                                           [Section 10906]


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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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
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             Deletes new program
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
agencies, producers, 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 regulatory                                          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         necessary, subject to
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
                                                               CRS-216

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
                                                                  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   million of CCC funds,
                                                                  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,
                                                              CRS-217

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
                                                                 members from consumer groups, food          provide for Presidential
                                                                 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             recommendations would
                                                                 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
sales and use, Producer                                          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,     10905] ; geographically
                                                                 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
                                                                CRS-218

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
                                                                                                        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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