LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995 MARKETING YEARS.

SEC. 701. LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995 MARKETING YEARS. Title II of the Agricultural Act of 1949 (7 U.S.C. 1446 et seq.) is amended— (1) in the matter preceding subsection (a) of section 201 (7 U.S.C. 1446), by striking “tung nuts,” and inserting the following: “oilseeds (including soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard seed, and such other oilseeds as the Secretary may determine),”; and (2) by adding at the end the following new section: “SEC. 205. LOANS AND PAYMENTS FOR OILSEEDS FOR 1991 THROUGH 1995 MARKETING YEARS. “(a) Definition of Oilseeds.— As used in this section, the term ‘oilseeds’ means soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard seed, and such other oilseeds as the Secretary may determine. “(b) In General.— The Secretary shall support the price of oilseeds through nonrecourse loans to producers on a farm for oilseeds produced on the farm in each of the 1991 through 1995 marketing years as provided in this section. “(c) Loan Level.— The loan level for each of the 1991 through 1995 crops of— “(1) soybeans shall not be less than $5.02 per bushel; “(2) sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed shall not be less than $0,089 per pound; and “(3) other oilseeds shall be established at such level as the Secretary determines is fair and reasonable in relation to the loan level available for soybeans, except that, in the case of cottonseed, in no event less than the level established for soybeans on a per-pound basis for the same crop year. “(d) Marketing Loan Provisions.— “(1) In general.— The Secretary shall permit a producer to repay a loan made under this section for a crop— “(A) at a level that is the lesser of— “(i) the loan level determined for the crop; or “(ii) the prevailing world market price for the applicable oilseed (adjusted to United States quality and location), as determined by the Secretary; or “(B) such other level (not in excess of the loan level determined for the crop) that the Secretary determines will— “(i) minimize potential loan forfeitures; 104 STAT. 3458 “(ii) minimize the accumulation of oilseed stocks by the Federal Government; “(iii) minimize the cost incurred by the Federal Government in storing oilseeds; and “(iv) allow oilseeds produced in the United States to be marketed freely and competitively, both domestically and internationally. “(2) Prevailing world market price.— The Secretary shall prescribe by regulation— “(A) a formula to define the prevailing world market price for oilseeds (adjusted to United States quality and location); and “(B) a mechanism by which the Secretary shall announce periodically the prevailing world market price for oilseeds (adjusted to United States quality and location). “(e) Loan Deficiency Payment.— “(1) In general.— The Secretary shall, for each of the 1991 through 1995 crops of oilseeds, make payments available to producers who, although eligible to obtain a loan under subsection (b), agree to forgo obtaining the loan in return for payments under this subsection. “(2) Computation.— A payment under this subsection shall be computed by multiplying— “(A) the loan payment rate; by “(B) the quantity of oilseeds the producer is eligible to place under loan but for which the producer forgoes obtaining the loan in return for payments under this subsection. “(3) Loan payment rate.— For purposes of this subsection, the loan payment rate shall be the amount by which— “(A) the loan level determined for the crop under subsection (c); exceeds “(B) the level at which a loan may be repaid under subsection (d). “(4) Marketing certificates.— “(A) In general.— The Secretary may make payments under this section available in the form of certificates redeemable for any agricultural commodity owned by the Commodity Credit Corporation. “(B) Minimal oilseed stocks.— The Secretary shall make certificates available under subparagraph (A) in such a manner so as to minimize the accumulation of oilseeds stocks. “(f) Marketing Year.— For purposes of this section, the marketing year for— “(1) soybeans shall be the 12-month period beginning on September 1 and ending on August 31; and “(2) other oilseeds shall be prescribed by the Secretary by regulation. “(g) Announcements.— “(1) In general.— Except as provided in paragraph (2), the Secretary shall make an announcement of the loan level for the crop not later than November 15 prior to the calendar year in which the crop is harvested. “(2) 1991 crop.— In the case of the 1991 crop, the Secretary shall make an announcement of the loan level for the crop as soon as practicable after the date of enactment of this section. 104 STAT. 3459 “(h) Loan Maturity.— A loan made for a crop of oilseeds under this section shall mature on the last day of the 9th month following the month the application for the loan is made. “(i) Other Terms and Conditions.— Notwithstanding any other provision of law— “(1) the Secretary shall not require participation in any production adjustment program for oilseeds or any other commodity as a condition of eligibility for price support for oilseeds; “(2) the Secretary may not authorize payments to producers to cover the cost of storing oilseeds; and “(3) oilseeds may not be considered an eligible commodity for any reserve program. “(j) Regulations.— The Secretary may issue such regulations as the Secretary determines necessary to carry out this section. “(k) Commodity Credit Corporation.— The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. “(l) Assignment of Payments.— The provisions of section 8(g) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)) (relating to assignment of payments) shall apply to payments under this section. “(m) Crops.— Notwithstanding any other provision of law, this section shall be effective only for the 1991 through 1995 crops of oilseeds.”.