Post by Hank Goodwin on Dec 28, 2005 11:58:44 GMT -5
The Comprehensive Agricultural Stability and Flexibility Assurance Act (CASFAA)[/b]
Title I: Agricultural Support
A. Purpose: It is the purpose of this title to authorize the use of binding production flexibility contracts between the United States and agricultural producers to support farming certainty and flexibility while ensuring continued compliance with farm conservation and wetland protection requirements.
B. Definitions
(1) The Secretary: refers to the United States Secretary of Agriculture.
(2) CCC: Refers to the Comodity Credit Corporation.
C. Production Flexibility Contracts:
(1) The Secretary shall offer to enter into a production flexibility contract with an eligible owner or producer on a farm containing eligible cropland. Under the terms of a contract, the owner or producer shall agree, in exchange for annual contract payments, to--
(i) comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
(ii) comply with applicable wetland protection requirements under 16 U.S.C. 3821 et seq.;
(iii) use the land subject to the contract for an agricultural or related activity, but not for a nonagricultural commercial or industrial use, as determined by the Secretary.
(2) Quantity of Eligible Cropland Covered by Contract: An owner or producer may enroll as contract acreage all or a portion of the eligible cropland on the farm. An owner or producer who enters into a contract may subsequently reduce the quantity of contract acreage covered by the contract.
(3) Time and Duraction of Contract: To the extent practicable, the Secretary shall commence entering into contracts not later than 45 days after the date of enactment of this title. The Secretary may not enter into a contract after August 1, 2009. The term of a contract shall extend from the crop through the 2015 crop, unless earlier terminated by the owner or producer.
(4) Contract Payments:
(i) Timing: At the time the Secretary enters into a contract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made. An annual contract payment shall be made not later than September 30 of each applicable fiscal year.
(ii) Amount: The payment amount shall be equal to the payment rate multiplied by 85% of the contract acreage. The payment rate shall be determined by the Secretary based on the total number of contracts and the total appropriation for this purpose. From these numbers a base annual amount shall be determined and paid on the first year of the contact. This amount shall decrease so that the annual payment each subsequent year shall equal 95%, 90%, 85%, 80%, 75%, and 70% respectively, of the first year. At any time during the course of the contract the farmer may make a claim of financial duress to the Secretary. Upon finding the existence of such duress, the Secretary may freeze the payment level, thus negating this lowering of the payments throughout the remainder of the contract. The Secretary may also raise the payment amount, however, at not time may the payment amount be above that of the first year.
(iii)Limitations: No individual shall recieve more than 75,000 dollars in annual payments under this title.
(iv) Termination for Violation: if an owner or producer subject to a contract violates a requirement of the contract specified in this title, the Secretary shall terminate the contract. On the termination, the owner or producer shall forfeit all rights to receive future contract payments on each farm in which the owner or producer has an interest and shall refund to the Secretary all contract payments received during the period of the violation, together with interest on the contract payments as determined by the Secretary.
(5) Planting Flexibility: Any commodity or crop may be planted on contract acreage on a farm.
(6) Oversight: The Secretary shall deliver annual reports to the appropriate committees of congress, describing the usage and efficacy of this program.
D. Nonrecourse Marketing Assistance Loans
(1) For each of the 2009 through 20014 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.
(2) Eligibility: Any production by a producer on a farm containing eligible cropland covered by a production flexibility contract shall be eligible for a Marketing Assistance Loan.
(3) Compliance With Conservation and Wetlands Requirements: As a condition of the receipt of a marketing assistance loan the producer must comply with wetlands and conservation requirements listed under section C, subsection 1.
(4) Loan Rate: The secretary shall set a loan rate that shall be not less than 85 percent of the simple average price received by producers of the commodity to be covered during the marketing years for the immediately preceding 5 crops, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.
(5) Loan Term: A marketing assistance loan under shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.
(6) Loan Repayment: A marketing assistance loan may be repayed in one of two ways:
(i) At the loan rate plus interest costs (CCC interest cost of borrowing from the U.S. Treasury plus 1 percentage point);
(ii) By forfeiting the pledged crop to the CCC at loan maturity.
(7) Limitations: No individual shall recieve more than $75,000 in annual gains from marketting assistance loans.
(8) Use of Surplus: Any surplus developed in the CCC stores of any crop shall be used for:
(i) Nutritional programs for public schools.
(ii) Foreign aid programs.
(iii) The Federal Food Stamp Program
(iv) The Federal Emergency Food Assistance Program
(v) Support for hospitals, prisons, food banks, and other government and non-profit programs.
(vi) Other purposes proposed by the Secretary and approved by Congress.
(9) Oversight: The Secretary shall deliver annual reports to the appropriate committees of congress, describing the usage and efficacy of this program.
E. Emergency Deficiency Payments
(1) For the years 2009 to 2014, the Secretary shall be permitted to make emergency direct payments to any farm or individual.
(2) Conditions: The Secretary shall only be permitted to make such payments under the following conditions:
(i) Following any natural disaster which causes a significant effect on any farms, as determined by the Secretary.
(ii) A drop in the price of any agricultural commodity to 50% or less of the simple average price received by producers of the commodity to be covered during the marketing years for the immediately preceding 5 crops, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.
(iii) Any other declaration of emergency conditions by the Secretary.
(3) Oversight: For all usage of this section, the Secretary shall make a report within 30 days of the declaration of emergency to the appropriate committees of congress, describing the nature of the emergency and response.
(4) Limitations: No individual shall recieve more than $75,000 in emergency deficiency payments in any one year.
F. Funding
(1) A total of 14 billion dollars shall be appropriated to cover the programs of this title.
(2) Of this total, no more than $8 billion shall be used for the enacment of the Production Flexibility Contracts under Section C, and no more than $4 and no less than $2 billion shall be held back for the enacment of Emergency Deficiency Payments under section E.
(3) Any money appropriated under this title not spent by the end of the fiscal year shall be returned to the general budget.
G. Limitations: No one farm shall recieve more than $300,000 in payments in one year under the programs in this title.
Title II: Enhancement and Support of Conservation and Technology in Agriculture
A. Purpose: It is the purpose of this title to support the maintenance of America's farmlands, to enhance conservation and environmental protection in American agriculture, and to support the growth of agricultural technology and education.
B. Funding: For each of fiscal years 2009 through 2015, the Secretary shall use the funds, facilities, and authorities of the CCC to carry out the programs of this title. A total of six and one half billion dollars shall be appropriated to cover the programs of this title for each of those fiscal years.
C. Farmland Protection Program: The Farmland Protection Program (16 USC 3830) is extended.
(1) Funding: This program shall be funded by $750,000,000 per year for the fiscal years 2009 to 2015.
D. Conservation Security Program: The conservation security program is extended.
(1) Expansion of Limitations: For fiscal years 2009-2014, no individual farm enrolled in this program shall recieve payment in excess of:
(i) $30,000 annually for tier I.
(ii) $45,000 annually for tier II.
(iii) $55,000 annually for tier III.
(2) Funding: This program shall be funded by two billion dollars per year for the fiscal years 2009 to 2015.
E. Environmental Quality Incentives Program: The Environmental Quality Incentives Program is extended.
(1) This program shall be funded by two billion dollars per year for the fiscal years 2009 to 2015.
F. Agricultural Education Support Grants and Scholarships: $250,000,000 per year shall be appropriated to fund grants to support agricultural education. A maximum of $10,000,000 of this funding shall be used to provide loan forgiveness, grants, and scholarships to students enrolled in graduate and undergraduate level agricultural studies programs. The remainder of the funding shall be used to provide grants to accredited colleges and universities in the support of agricultural studies and research.
G. Technological Improvement Grants
(1) During the fiscal years 2009 to 2015, the Secretary shall make available grants for the purpose of enhancing technology on American farms.
(2) Agricultural Technology Grants: Within 30 days following the enactment of this bill, the Secretary shall create a list of advanced agricultural technologies. These technologies must show an ability to decrease costs, increase production, or otherwise enhance farming efficiency. This list must also contain the fair market value for each item on the list. The Secretary must update this list at least once every six months.
(3) General Technology Grant: Within 30 days following the enactment of this bill, the Secretary shall create a list of general advance technologies that, though not directly related to agriculture, have a demonstrable ability to materially enhance the practice of agriculture. Examples of such technologies are computers, software, and telecommunication equipment. This list must also contain the fair market value for each item on the list. The Secretary must update this list at least once every six months.
(4) Application for Grant: Any farm with yearly profits of less than $150,000 may make an application for a grant for any technology listed by the Secretary. Such an application shall include the name of the technology desired as well as a description of how that technology will enhance the operation of the farm, in addition to a full summary of the farm, its operations, history, and finances. The Secretary will review these applications and determine which grants shall be awarded.
(5) Terms of Grant: Each grant shall cover a portion of the costs of the technology dependent upon the total yearly profit of the farm:
(i) For those farms making less than $25,000 in yearly income, up to 95% of the cost of the technology may be covered by the grant.
(ii) For those farms making less than $50,000 in yearly income, up to 85% of the cost of the technology may be covered by the grant.
(iii) For those farms making less than $100,000 in yearly income, up to 75% of the cost of the technology may be covered by the grant.
(iv) For those farms making less than $150,000 in yearly income, up to 60% of the cost of the technology may be covered by the grant.
(6) Funding: During the fiscal years 2009 to 2015, one billion dollars shall be appropriated for the enactment of these grants. Of this total, no more than 25% may go to general technology grants.
H. Agricultural Research and Information Center
(1) Within one year following the enactment of this bill, the Secretary shall establish an Agricultural Research and Information Center.
(2) Purpose: The purpose of this center shall be to make the latest information and research on agricultural practices, trade, economics, and law available to all farmers, with a particular focus on farmers in rural and low-income areas.
(3) Funding: During the fiscal years 2009 to 2015, $500,000,000 shall be appropriated for the establishment of this center.
Title I: Agricultural Support
A. Purpose: It is the purpose of this title to authorize the use of binding production flexibility contracts between the United States and agricultural producers to support farming certainty and flexibility while ensuring continued compliance with farm conservation and wetland protection requirements.
B. Definitions
(1) The Secretary: refers to the United States Secretary of Agriculture.
(2) CCC: Refers to the Comodity Credit Corporation.
C. Production Flexibility Contracts:
(1) The Secretary shall offer to enter into a production flexibility contract with an eligible owner or producer on a farm containing eligible cropland. Under the terms of a contract, the owner or producer shall agree, in exchange for annual contract payments, to--
(i) comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
(ii) comply with applicable wetland protection requirements under 16 U.S.C. 3821 et seq.;
(iii) use the land subject to the contract for an agricultural or related activity, but not for a nonagricultural commercial or industrial use, as determined by the Secretary.
(2) Quantity of Eligible Cropland Covered by Contract: An owner or producer may enroll as contract acreage all or a portion of the eligible cropland on the farm. An owner or producer who enters into a contract may subsequently reduce the quantity of contract acreage covered by the contract.
(3) Time and Duraction of Contract: To the extent practicable, the Secretary shall commence entering into contracts not later than 45 days after the date of enactment of this title. The Secretary may not enter into a contract after August 1, 2009. The term of a contract shall extend from the crop through the 2015 crop, unless earlier terminated by the owner or producer.
(4) Contract Payments:
(i) Timing: At the time the Secretary enters into a contract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made. An annual contract payment shall be made not later than September 30 of each applicable fiscal year.
(ii) Amount: The payment amount shall be equal to the payment rate multiplied by 85% of the contract acreage. The payment rate shall be determined by the Secretary based on the total number of contracts and the total appropriation for this purpose. From these numbers a base annual amount shall be determined and paid on the first year of the contact. This amount shall decrease so that the annual payment each subsequent year shall equal 95%, 90%, 85%, 80%, 75%, and 70% respectively, of the first year. At any time during the course of the contract the farmer may make a claim of financial duress to the Secretary. Upon finding the existence of such duress, the Secretary may freeze the payment level, thus negating this lowering of the payments throughout the remainder of the contract. The Secretary may also raise the payment amount, however, at not time may the payment amount be above that of the first year.
(iii)Limitations: No individual shall recieve more than 75,000 dollars in annual payments under this title.
(iv) Termination for Violation: if an owner or producer subject to a contract violates a requirement of the contract specified in this title, the Secretary shall terminate the contract. On the termination, the owner or producer shall forfeit all rights to receive future contract payments on each farm in which the owner or producer has an interest and shall refund to the Secretary all contract payments received during the period of the violation, together with interest on the contract payments as determined by the Secretary.
(5) Planting Flexibility: Any commodity or crop may be planted on contract acreage on a farm.
(6) Oversight: The Secretary shall deliver annual reports to the appropriate committees of congress, describing the usage and efficacy of this program.
D. Nonrecourse Marketing Assistance Loans
(1) For each of the 2009 through 20014 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.
(2) Eligibility: Any production by a producer on a farm containing eligible cropland covered by a production flexibility contract shall be eligible for a Marketing Assistance Loan.
(3) Compliance With Conservation and Wetlands Requirements: As a condition of the receipt of a marketing assistance loan the producer must comply with wetlands and conservation requirements listed under section C, subsection 1.
(4) Loan Rate: The secretary shall set a loan rate that shall be not less than 85 percent of the simple average price received by producers of the commodity to be covered during the marketing years for the immediately preceding 5 crops, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.
(5) Loan Term: A marketing assistance loan under shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.
(6) Loan Repayment: A marketing assistance loan may be repayed in one of two ways:
(i) At the loan rate plus interest costs (CCC interest cost of borrowing from the U.S. Treasury plus 1 percentage point);
(ii) By forfeiting the pledged crop to the CCC at loan maturity.
(7) Limitations: No individual shall recieve more than $75,000 in annual gains from marketting assistance loans.
(8) Use of Surplus: Any surplus developed in the CCC stores of any crop shall be used for:
(i) Nutritional programs for public schools.
(ii) Foreign aid programs.
(iii) The Federal Food Stamp Program
(iv) The Federal Emergency Food Assistance Program
(v) Support for hospitals, prisons, food banks, and other government and non-profit programs.
(vi) Other purposes proposed by the Secretary and approved by Congress.
(9) Oversight: The Secretary shall deliver annual reports to the appropriate committees of congress, describing the usage and efficacy of this program.
E. Emergency Deficiency Payments
(1) For the years 2009 to 2014, the Secretary shall be permitted to make emergency direct payments to any farm or individual.
(2) Conditions: The Secretary shall only be permitted to make such payments under the following conditions:
(i) Following any natural disaster which causes a significant effect on any farms, as determined by the Secretary.
(ii) A drop in the price of any agricultural commodity to 50% or less of the simple average price received by producers of the commodity to be covered during the marketing years for the immediately preceding 5 crops, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period.
(iii) Any other declaration of emergency conditions by the Secretary.
(3) Oversight: For all usage of this section, the Secretary shall make a report within 30 days of the declaration of emergency to the appropriate committees of congress, describing the nature of the emergency and response.
(4) Limitations: No individual shall recieve more than $75,000 in emergency deficiency payments in any one year.
F. Funding
(1) A total of 14 billion dollars shall be appropriated to cover the programs of this title.
(2) Of this total, no more than $8 billion shall be used for the enacment of the Production Flexibility Contracts under Section C, and no more than $4 and no less than $2 billion shall be held back for the enacment of Emergency Deficiency Payments under section E.
(3) Any money appropriated under this title not spent by the end of the fiscal year shall be returned to the general budget.
G. Limitations: No one farm shall recieve more than $300,000 in payments in one year under the programs in this title.
Title II: Enhancement and Support of Conservation and Technology in Agriculture
A. Purpose: It is the purpose of this title to support the maintenance of America's farmlands, to enhance conservation and environmental protection in American agriculture, and to support the growth of agricultural technology and education.
B. Funding: For each of fiscal years 2009 through 2015, the Secretary shall use the funds, facilities, and authorities of the CCC to carry out the programs of this title. A total of six and one half billion dollars shall be appropriated to cover the programs of this title for each of those fiscal years.
C. Farmland Protection Program: The Farmland Protection Program (16 USC 3830) is extended.
(1) Funding: This program shall be funded by $750,000,000 per year for the fiscal years 2009 to 2015.
D. Conservation Security Program: The conservation security program is extended.
(1) Expansion of Limitations: For fiscal years 2009-2014, no individual farm enrolled in this program shall recieve payment in excess of:
(i) $30,000 annually for tier I.
(ii) $45,000 annually for tier II.
(iii) $55,000 annually for tier III.
(2) Funding: This program shall be funded by two billion dollars per year for the fiscal years 2009 to 2015.
E. Environmental Quality Incentives Program: The Environmental Quality Incentives Program is extended.
(1) This program shall be funded by two billion dollars per year for the fiscal years 2009 to 2015.
F. Agricultural Education Support Grants and Scholarships: $250,000,000 per year shall be appropriated to fund grants to support agricultural education. A maximum of $10,000,000 of this funding shall be used to provide loan forgiveness, grants, and scholarships to students enrolled in graduate and undergraduate level agricultural studies programs. The remainder of the funding shall be used to provide grants to accredited colleges and universities in the support of agricultural studies and research.
G. Technological Improvement Grants
(1) During the fiscal years 2009 to 2015, the Secretary shall make available grants for the purpose of enhancing technology on American farms.
(2) Agricultural Technology Grants: Within 30 days following the enactment of this bill, the Secretary shall create a list of advanced agricultural technologies. These technologies must show an ability to decrease costs, increase production, or otherwise enhance farming efficiency. This list must also contain the fair market value for each item on the list. The Secretary must update this list at least once every six months.
(3) General Technology Grant: Within 30 days following the enactment of this bill, the Secretary shall create a list of general advance technologies that, though not directly related to agriculture, have a demonstrable ability to materially enhance the practice of agriculture. Examples of such technologies are computers, software, and telecommunication equipment. This list must also contain the fair market value for each item on the list. The Secretary must update this list at least once every six months.
(4) Application for Grant: Any farm with yearly profits of less than $150,000 may make an application for a grant for any technology listed by the Secretary. Such an application shall include the name of the technology desired as well as a description of how that technology will enhance the operation of the farm, in addition to a full summary of the farm, its operations, history, and finances. The Secretary will review these applications and determine which grants shall be awarded.
(5) Terms of Grant: Each grant shall cover a portion of the costs of the technology dependent upon the total yearly profit of the farm:
(i) For those farms making less than $25,000 in yearly income, up to 95% of the cost of the technology may be covered by the grant.
(ii) For those farms making less than $50,000 in yearly income, up to 85% of the cost of the technology may be covered by the grant.
(iii) For those farms making less than $100,000 in yearly income, up to 75% of the cost of the technology may be covered by the grant.
(iv) For those farms making less than $150,000 in yearly income, up to 60% of the cost of the technology may be covered by the grant.
(6) Funding: During the fiscal years 2009 to 2015, one billion dollars shall be appropriated for the enactment of these grants. Of this total, no more than 25% may go to general technology grants.
H. Agricultural Research and Information Center
(1) Within one year following the enactment of this bill, the Secretary shall establish an Agricultural Research and Information Center.
(2) Purpose: The purpose of this center shall be to make the latest information and research on agricultural practices, trade, economics, and law available to all farmers, with a particular focus on farmers in rural and low-income areas.
(3) Funding: During the fiscal years 2009 to 2015, $500,000,000 shall be appropriated for the establishment of this center.