LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1991 THROUGH 1995 CROPS OF RICE.

SEC. 601. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1991 THROUGH 1995 CROPS OF RICE. The Agricultural Act of 1949 is amended by inserting after section 101A (7 U.S.C. 1441–1) the following new section: “SEC. 101B. LOANS, PAYMENTS, AND ACREAGE REDUCTION PROGRAMS FOR THE 1991 THROUGH 1995 CROPS OF RICE. “(a) Loans and Purchases.— “(1) In general.— Except as otherwise provided in this subsection, the Secretary shall make available to producers on a farm nonrecourse loans and purchases for each of the 1991 through 1995 crops of rice produced on the farm at a level that is not less than the higher of— “(A) 85 percent of the simple average price received by producers, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of rice, 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; or “(B) $6.50 per hundredweight. “(2) Maximum reduction.— The loan level for any crop of rice determined under paragraph (1) may not be reduced by more than 5 percent from the level determined for the preceding crop. “(3) Announcement of loan level and established price.— The loan and purchase level and the established price for each of the 1991 through 1995 crops of rice shall be announced not later than January 31 of each calendar year for the crop harvested in the calendar year or, in the case of the 1991 crop, as soon as practicable after the date of enactment of this section. “(4) Term.— A loan made under this subsection shall have a term of not more than 9 months beginning after the month in which the application for the loan is made. “(5) Marketing loan provisions.— “(A) In general.— In order to ensure that a competitive market position is maintained for rice, the Secretary shall permit a producer to repay a loan made under paragraph (1) for a crop at a level that is the lesser of— “(i) the loan level determined for the crop; or “(ii) the higher of— “(I) the loan level determined for the crop multiplied by 70 percent; or “(II) the prevailing world market price for rice, as determined by the Secretary. 104 STAT. 3444 “(B) Prevailing world market price.— The Secretary shall prescribe by regulation— “(i) a formula to define the prevailing world market price for rice; and “(ii) a mechanism by which the Secretary shall announce periodically the prevailing world market price for rice. “(C) Producer purchase of marketing certificates.— “(i) In general.— As a condition of permitting a producer to repay a loan as provided in subparagraph (A), the Secretary may require a producer to purchase marketing certificates equal in value to an amount that does not exceed one-half the difference, as determined by the Secretary, between the amount of the loan obtained by the producer and the amount of the loan repayment. “(ii) Redemption for rice or cash.— The certificates shall be redeemable for agricultural commodities owned by the Commodity Credit Corporation valued at the prevailing market price, as determined by the Secretary or for cash, under such terms and conditions as the Secretary may prescribe. “(iii) Redemption, marketing, or exchange.— The Commodity Credit Corporation, under regulations prescribed by the Secretary, shall assist any person receiving marketing certificates under this subparagraph in the redemption or marketing or exchange of the certificates at such times, in such manner, and at such price levels as the Secretary determines will best effectuate the purposes of the program established under this section. “(iv) Charges.— If any such certificate is not presented for redemption or marketing within a reasonable number of days after issuance, as determined by the Secretary, reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after the reasonable number of days and ending with the date of the presentation of the certificate to the Commodity Credit Corporation. “(v) Designation of commodities and products.— Insofar as practicable, the Secretary shall permit owners of certificates to designate the commodities and the products thereof, including storage sites thereof, the owners would prefer to receive in exchange for certificates. “(vi) Sales price restrictions.— Notwithstanding any other provision of law, any price restrictions that may otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this subparagraph. “(vii) Displacement.— The Secretary shall take such measures as may be necessary to prevent the marketing or exchange of agricultural commodities and the products thereof for certificates under this subpara-104 STAT. 3445graph from adversely affecting the income of producers of the commodities or products. “(viii) Transfers.— Under regulations prescribed by the Secretary, certificates issued under this subparagraph may be transferred to other persons approved by the Secretary. “(D) Certificates to maintain competitiveness.— “(i) In general.— Notwithstanding any other provision of law, whenever, during the period beginning August 1, 1991, and ending July 31, 1996, the prevailing world market price for a class of rice (adjusted to United States quality and location), as determined by the Secretary, is below the current loan repayment rate for that class of rice, to make United States rice competitive in world markets and to maintain and expand exports of rice produced in the United States, the Commodity Credit Corporation shall make payments, through the issuance of marketing certificates, to persons who have entered into an agreement with the Commodity Credit Corporation to participate in the program established under this subparagraph. The payments shall be made in such monetary amounts and subject to such terms and conditions as the Secretary determines will make rice produced in the United States available at competitive prices consistent with the purposes of this subparagraph. “(ii) Value.— The value of each certificate issued under this subparagraph shall be based on the difference between— “(I) the loan repayment rate for the class of rice; and “(II) the prevailing world market price for the class of rice, as determined by the Secretary. “(iii) Terms and conditions of certificates.— Marketing certificates issued under this subparagraph shall be subject to the same terms and conditions as certificates issued under subparagraph (C). “(6) Simple average price.— For purposes of this section, the simple average price received by producers for the immediately preceding marketing year shall be based on the latest information available to the Secretary at the time of the determination. “(b) Loan Deficiency Payments.— “(1) In general.— The Secretary shall, for each of the 1991 through 1995 crops of rice, make payments (hereafter in this section referred to as ‘loan deficiency payments’) available to producers who, although eligible to obtain a loan or purchase agreement under subsection (a), agree to forgo obtaining the loan or agreement 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 rice the producer is eligible to place under loan (or obtain a purchase agreement) but for which the producer forgoes obtaining the loan or agreement 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— 104 STAT. 3446 “(A) the loan level determined for the crop under subsection (a); exceeds “(B) the level at which a loan may be repaid under subsection (a). “(4) Marketing certificates.— The Secretary may make up to one-half the amount of a payment under this subsection available in the form of marketing certificates, subject to the terms and conditions provided in subsection (a)(5)(C). “(c) Payments.— “(1) Deficiency payments.— “(A) In general.— The Secretary shall make available to producers payments (hereafter in this section referred to as ‘deficiency payments’) for each of the 1991 through 1995 crops of rice in an amount computed by multiplying— “(i) the payment rate; by “(ii) the payment acres for the crop; by “(iii) the farm program payment yield established for the crop for the farm. “(B) Payment rate.— “(i) Payment rate for 1991 through 1993 crops.— The payment rate for each of the 1991 through 1993 crops of rice shall be the amount by which the established price for the crop of rice exceeds the higher of— “(I) the national average market price received by producers during the first 5 months of the marketing year for the crop, as determined by the Secretary; or “(II) the loan level determined for the crop. “(ii) Payment rate of 1994 and 1995 crops.— The payment rate for the 1994 and 1995 crops of rice shall be determined in accordance with clause (i). “(ii) Minimum established price.— The established price for rice shall not be less than $10.71 per hundred-weight for each of the 1991 through 1995 crops. “(C) Payment acres.— Payment acres for a crop shall be the lesser of— “(i) the number of acres planted to the crop for harvest within the permitted acreage; or “(ii) 100 percent of the crop acreage base for the crop for the farm less the quantity of reduced acreage (as determined under subsection (e)(2)(D)). “(D) 50/92 program.— “(i) In general.— If an acreage limitation program under subsection (e)(2) is in effect for a crop of rice and the producers on a farm devote a portion of the maximum payment acres for rice as calculated under subparagraph (C)(ii) for equal to more than 8 percent of such rice acreage of the farm for the crop to conservation uses (except as provided in subparagraph (E))— “(I) such portion of the maximum payment acres in excess of 8 percent of such acreage devoted to conservation uses (except as provided in subparagraph (E)) shall be considered to be planted to rice for the purpose of determining the acreage on the farm required to be devoted to conservation uses in accordance with subsection (e)(2)(D); and 104 STAT. 3447 “(II) the producers shall be eligible for payments under this paragraph with respect to such acreage, subject to the compliance of the producers with clause (ii). “(ii) Minimum planting requirement.— To be eligible for payments under clause (i), except as provided in clauses (iv) and (v), the producers on a farm must actually plant rice for harvest on at least 50 percent of the maximum payment acres for rice for the farm. “(iii) Deficiency payments.— Notwithstanding any other provision of this section, any producer who devotes a portion of the maximum payment acres for rice for the farm to conservation uses (or other uses as provided in subparagraph (E)) under this subparagraph shall receive deficiency payments on the acreage that is considered to be planted to rice and eligible for payments under this subparagraph for the crop at a per hundredweight rate established by the Secretary, except that the rate may not be established at less than the projected deficiency payment rate for the crop, as determined by the Secretary. Such projected payment rate for the crop shall be announced by the Secretary prior to the period during which rice producers may agree to participate in the program for the crop. “(iv) Quarantines.— If a State or local agency has imposed in an area of a State or county a quarantine on the planting of rice for harvest on farms in the area, the State committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) may recommend to the Secretary that payments be made under this paragraph, without regard to the requirement imposed under clause (ii), to producers in the area who were required to forgo the planting of rice for harvest on acreage to alleviate or eliminate the condition requiring the quarantine. If the Secretary determines that the condition exists, the Secretary may make payments under this paragraph to the producers. To be eligible for payments under this clause, the producers must devote the acreage to conservation uses (except as provided in subparagraph (E)). “(v) Prevented planting.— If an acreage limitation program under subsection (e) is in effect for any crop of rice and if the Secretary determines that producers on a farm are prevented from planting the acreage intended for rice to rice because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make available to such producers payments under this subparagraph without regard to the requirement imposed under clause (ii). To be eligible for payments under this clause, the producers must devote the acreage to conservation uses (except as provided in subparagraph (E)). Any such acreage shall be considered to be planted to rice. “(vi) Crop acreage and payment yield.— The rice crop acreage base and rice farm program payment yield of the farm shall not be reduced due to the fact104 STAT. 3448 that a portion of the permitted rice acreage of the farm was devoted to conserving uses (except as provided in subparagraph (E)) under this subparagraph. “(vii) Limitation.— Other than as provided in clauses (i) through (vi), payments may not be made under this paragraph for any crop on a greater acreage than the acreage actually planted to rice. “(viii) Conservation use acreage under other programs.— Any acreage considered to be planted to rice in accordance with clauses (i) and (vi) may not also be designated as conservation use acreage for the purpose of fulfilling any provisions under any acreage limitation or land diversion program requiring that the producers devote a specified acreage to conservation uses. “(E) Alternative crops.— The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of acreage otherwise required to be devoted to conservation uses as a condition of qualifying for payments under subparagraph (D) to be devoted to sweet sorghum, guar, sesame, castor beans, crambe, plantago ovato, triticale, rye, mung beans, commodities for which no substantial domestic production or market exists but that could yield industrial raw material being imported, or likely to be imported, into the United States, or commodities grown for experimental purposes (including kenaf and milkweed), subject to the following sentence. The Secretary may permit the acreage to be devoted to the production only if the Secretary determines that— “(i) the production is not likely to increase the cost of the price support program and will not affect farm income adversely; and “(ii) the production is needed to provide an adequate supply of the commodity, or, in the case of commodities for which no substantial domestic production or market exists but that could yield industrial raw materials, the production is needed to encourage domestic manufacture of the raw material and could lead to increased industrial use of the raw material to the long-term benefit of United States industry. “(F) Reduction for disaster payments.— The total quantity of rice on which payments would otherwise be payable to a producer on a farm for any crop under this paragraph shall be reduced by the quantity on which any disaster payment is made to the producer for the crop under paragraph (2). “(2) Disaster payments.— “(A) Prevented planting.— Except as provided in subparagraph (C), if the Secretary determines that the producers on a farm are prevented from planting any portion of the acreage intended for rice to rice or other nonconserving crops because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the Secretary shall make a prevented planting disaster payment to the producers in an amount equal to the product obtained by multiplying— 104 STAT. 3449 “(i) the number of acres so affected but not to exceed the acreage planted to rice for harvest (including any acreage that the producers were prevented from planting to rice or other nonconserving crops in lieu of rice because of drought, flood, or other natural disaster, or other condition beyond the control of the producers) in the immediately preceding year; by “(ii) 75 percent of the farm program payment yield established for the farm by the Secretary; by “(iii) a payment rate equal to 33 1/3 percent of the established price for the crop. “(B) Reduced yields.— Except as provided in subparagraph (C), if the Secretary determines that because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the total quantity of rice that the producers are able to harvest on any farm is less than the result of multiplying 75 percent of the farm program payment yield established by the Secretary for the crop by the acreage planted for harvest for the crop, the Secretary shall make a reduced yield disaster payment to the producers at a rate equal to 33 ⅓ percent of the established price for the crop for the deficiency in production below 75 percent for the crop. “(C) Crop insurance.— Producers on a farm shall not be eligible for— “(i) prevented planting disaster payments under subparagraph (A), if prevented planting crop insurance is available to the producers under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) with respect to the rice acreage of the producers; or “(ii) reduced yield disaster payments under subparagraph (B), if reduced yield crop insurance is available to the producers under such Act with respect to the rice acreage of the producers. “(D) Administration.— “(i) Economic emergencies.— Notwithstanding subparagraph (C), the Secretary may make a disaster payment to the producers on a farm under this paragraph if the Secretary determines that— “(I) as the result of drought, flood, or other natural disaster, or other condition beyond the control of the producers, the producers have suffered substantial losses of production either from being prevented from planting rice or other nonconserving crops or from reduced yields; “(II) the losses have created an economic emergency for the producers; “(III) crop insurance indemnity payments under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and other forms of assistance made available by the Federal Government to the producers for the losses are insufficient to alleviate the economic emergency; and “(IV) additional assistance must be made available to the producers to alleviate the economic emergency. 104 STAT. 3450 “(ii) Adjustments.— The Secretary may make such adjustments in the amount of payments made available under this paragraph with respect to an individual farm as necessary to ensure the equitable allotment of the payments among producers, taking into account other forms of Federal disaster assistance provided to the producers for the crop involved. “(d) Payment Yields.— The farm program payment yields for farms for each crop of rice shall be determined under title V. “(e) Acreage Reduction Programs.— “(1) In general.— “(A) Establishment.— Notwithstanding any other provision of this Act, if the Secretary determines that the total supply of rice, in the absence of an acreage limitation program, will be excessive taking into account the need for an adequate carry-over to maintain reasonable and stable supplies and prices and to meet a national emergency, the Secretary may provide for any crop of rice an acreage limitation program as described in paragraph (2). “(B) Agricultural resources conservation program.— In making a determination under subparagraph (A), the Secretary shall take into consideration the number of acres placed in the agricultural resources conservation program established under subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.). “(C) Announcements.— If the Secretary elects to implement an acreage limitation program for any crop year, the Secretary shall announce any such program not later than January 31 of the calendar year in which the crop is harvested, except that in the case of the 1991 crop, the Secretary shall announce the program as soon as practicable after the date of enactment of this section. “(D) Carry-over.— The Secretary shall carry out an acreage limitation program described in paragraph (2) for a crop of rice in a manner that will result in carry-over stocks equal to 16.5 to 20 percent of the simple average of the total disappearance of rice for each of the 3 marketing years preceding the year for which the announcement is made. For the purpose of this subparagraph, the term ‘total disappearance’ means all rice utilization, including total domestic, total export, and total residual disappearance. “(2) Acreage limitation program.— “(A) Percentage reductions.— Except as provided in paragraph (3), if a rice acreage limitation program is announced under paragraph (1), such limitation shall be achieved by applying a uniform percentage reduction (from 0 to 35 percent) to the rice crop acreage base for the crop for each rice-producing farm. “(B) Compliance.— Except as provided in section 504, producers who knowingly produce rice in excess of the permitted rice acreage for the farm, as established in accordance with subparagraph (A), shall be ineligible for rice loans, purchases, and payments with respect to that farm. “(C) Crop acreage bases.— Rice crop acreage bases for each crop of rice shall be determined under title V. 104 STAT. 3451 “(D) Acreage devoted to conservation uses.— A number of acres on the farm shall be devoted to conservation uses, in accordance with regulations issued by the Secretary. Such number shall be determined by multiplying the rice crop acreage base by the percentage reduction required by the Secretary. The number of acres so determined is hereafter in this subsection referred to as ‘reduced acreage’. The remaining acreage is hereafter in this subsection referred to as ‘permitted acreage’. Permitted acreage may be adjusted by the Secretary as provided in paragraph (3) and in section 504. “(E) Individual farm program acreage.— Except as otherwise provided in subsection (c), the individual farm program acreage shall be the acreage planted on the farm to rice for harvest within the permitted rice acreage for the farm as established under this paragraph. “(F) Planting designated crops on reduced acreage.— “(i) Definition of designated crop.— As used in this subparagraph, the term ‘designated crop’ means a crop defined in section 504(b)(1), excluding any program crop as defined in section 502(3). “(ii) In general.— Subject to clause (iii), the Secretary may permit producers on a farm to plant a designated crop on no more than one-half of the reduced acreage on the farm. “(iii) Limitations.— If the producers on a farm elect to plant a designated crop on reduced acreage under this subparagraph— “(I) the amount of the deficiency payment that the producers are otherwise eligible to receive under subsection (c) shall be reduced, for each acre (or portion thereof) that is planted to the designated crop, by an amount equal to the deficiency payment that would be made with respect to a number of acres of the crop that the Secretary considers appropriate, except that if the producers on the farm are participating in a program established for more than one program crop, the amount of the reduction shall be determined by prorating the reduction based on the acreage planted or considered planted on the farm to all of such program crops; and “(II) the Secretary shall ensure that reductions in deficiency payments under subclause (I) are sufficient to ensure that this subparagraph will result in no additional cost to the Commodity Credit Corporation. “(3) Targeted option payments.— “(A) In general.— Notwithstanding any other provision of this section, if the Secretary implements an acreage limitation program with respect to any of the 1991 through 1995 crops of rice and announces an acreage limitation percentage of 20 percent or less, the Secretary may make available to producers on a farm who do not receive payments under subsection (c)(1)(D) for such crop on the farm, adjustments in the level of deficiency payments that would otherwise be made available to the producers if the produc-104 STAT. 3452ers exercise the payment options provided in this paragraph. “(B) Payment options.— If the Secretary elects to carry out this paragraph, the Secretary shall make the payment options specified in subparagraphs (C) and (D) available to producers who agree to make adjustments in the quantity of acreage diverted from the production of rice under an acreage limitation program in accordance with this paragraph. “(C) Increased acreage limitation option.— “(i) Increase in established price.— If the Secretary elects to carry out this paragraph, a producer shall be eligible to receive an increase in the established price for rice under clause (ii) if the producer agrees to an increase in the acreage limitation percentage to be applied to the producers’ rice acreage base above the acreage limitation percentage announced by the Secretary. “(ii) Method of calculation.— For the purposes of calculating deficiency payments to be made available to producers who participate in the program under this paragraph, the Secretary shall increase the established price for rice by an amount determined by the Secretary, but not less than 0.5 percent, nor more than 1 percent, for each 1 percentage point increase in the acreage limitation percentage applied to the producers’ rice acreage base. “(iii) Limitation.— The acreage limitation percentage to be applied to the producers’ rice acreage base shall not be increased by more than 5 percentage points above the acreage limitation percentage announced by the Secretary. “(iv) Adjustment for under plantings.— In determining the increased acreage limitation percentage that is applied to the producer’s rice acreage base under this paragraph, the Secretary shall exclude an amount of acreage equal to the average difference between the producer’s permitted rice acreage and the acreage actually planted (including acreage devoted to conserving uses under subsection (c)(1)(D)) to rice for harvest during the previous 2 years. “(D) Decreased acreage limitation option.— “(i) Decrease in acreage limitation requirement.— If the Secretary elects to carry out this paragraph, a producer shall be eligible to decrease the acreage limitation percentage applicable to the producers’ rice acreage base (as announced by the Secretary) if the producer agrees to a decrease in the established price for rice under clause (ii) for the purpose of calculating deficiency payments to be made available to the producer. “(ii) Method of calculation.— For the purposes of calculating deficiency payments to be made available to producers who choose the option set forth in this subparagraph, the Secretary shall decrease the established price for rice by an amount to be determined by the Secretary, but not less than 0.5 percent, nor more104 STAT. 3453 than 1 percent, for each 1 percentage point decrease in the acreage limitation percentage applied to the producers’ rice acreage base. “(iii) Limitation.— A producer may not choose to decrease the acreage limitation percentage applicable to the producers’ rice acreage base under this paragraph by more than one-half of the announced acreage limitation percentage. “(E) Participation and production effects.— Notwithstanding any other provision of this paragraph, the Secretary shall, to the extent practicable, ensure that the program provided for in this paragraph does not have a significant effect on program participation or total production and shall be offered in such a manner that the Secretary determines will result in no additional budget outlays. The Secretary shall provide an analysis of the Secretary’s determination to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. “(4) Administration.— “(A) Protection from weeds and erosion.— The regulations issued by the Secretary under paragraph (2) with respect to acreage required to be devoted to conservation uses shall assure protection of the acreage from weeds and wind and water erosion. “(B) Annual or perennial cover.— “(i) In general.— Except as provided in paragraph (2), a producer who participates in an acreage reduction program established for a crop of rice under this subsection shall be required to plant to an annual or perennial cover 50 percent (or more, at the option of the producer) of the acreage that is required to be removed from the production of rice, but not to exceed 5 percent (or more, at the option of the producer) of the crop acreage base established for the crop. This requirement shall not apply with respect to arid areas (including summer fallow areas), as determined by the Secretary. “(ii) Multiyear program.— “(I) Cost-share assistance.— If a producer elects to establish a perennial cover capable of improving water quality or wildlife habitat on the acreage, the Commodity Credit Corporation shall make available cost-share assistance for 25 percent of the approved cost of establishing the cover on not more than 50 percent of the acreage that is required to be diverted from production, but not to exceed 5 percent (or more, at the option of the producer) of the crop acreage base established for a crop. “(II) Agreement of producer.— If a producer elects to establish a perennial cover on the acreage under this subparagraph and receives cost-share assistance from the Corporation with respect to the cover, the producer, under such terms and conditions as may be prescribed by the Secretary, taking into consideration guidelines established by the State technical committees established in subtitle104 STAT. 3454 G of title XII of the Food Security Act of 1985, shall agree to maintain the perennial cover for a minimum of 3 years. “(iii) Conserving crops.— The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the acreage to be devoted to sweet sorghum, guar, sesame, castor beans, crambe, plantago ovato, triticale, rye, mung beans, milkweed, or other commodity, if the Secretary determines that the production is needed to provide an adequate supply of the commodities, is not likely to increase the cost of the price support program, and will not affect farm income adversely. “(C) Haying and grazing.— “(i) In general.— Except as provided in clause (ii), haying and grazing of reduced acreage, acreage devoted to a conservation use under subsection (c)(1)(D), and acreage diverted from production under a land diversion program established under this section shall be permitted, except during any consecutive 5-month period that is established by the State committee established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) for a State. The 5-month period shall be established during the period beginning April 1, and ending October 31, of a year. “(ii) Natural disasters.— In the case of a natural disaster, the Secretary may permit unlimited haying and grazing on the acreage. The Secretary may not exclude irrigated or irrigable acreage not planted in alfalfa when exercising the authority under this clause. “(D) Water storage uses.— “(i) In general.— The regulations issued by the Secretary under paragraph (2) with respect to acreage required to be devoted to conservation uses shall provide that land that has been converted to water storage uses shall be considered to be devoted to conservation uses if the land was devoted to wheat, feed grains, cotton, rice, or oilseeds in at least 3 of the immediately preceding 5 years. The land shall be considered to be devoted to conservation uses for the period that the land remains in water storage uses, but not to exceed 5 years subsequent to its conversion to water storage uses. “(ii) Limitations.— Land converted to water storage uses for the purposes of this subparagraph may not be devoted to any commercial use, including commercial fish production. The water stored on the land may not be ground water. The farm on which the land is located must have been irrigated with ground water during at least 1 of the preceding 5 crop years. “(5) Land diversion program.— “(A) In general.— The Secretary may make land diversion payments to producers of rice, whether or not an acreage limitation program for rice is in effect, if the Secretary determines that the land diversion payments are necessary to assist in adjusting the total national acreage of104 STAT. 3455 rice to desirable goals. The land diversion payments shall be made to producers who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with the producers. “(B) Amounts.— The amounts payable to producers under land diversion contracts may be determined through the submission of bids for the contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. “(C) Limitation on diverted acreage.— The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community. “(6) Conservation practices.— “(A) Wildlife food plots or habitat.— The reduced acreage and additional diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purposes of this subparagraph. “(B) Public access.— The Secretary may provide for an additional payment on the acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations. “(7) Participation agreements.— “(A) In general.— Producers on a farm desiring to participate in the program conducted under this subsection shall execute an agreement with the Secretary providing for the participation not later than such date as the Secretary may prescribe. “(B) Modification or termination.— The Secretary may, by mutual agreement with producers on a farm, modify or terminate any such agreement if the Secretary determines the action necessary because of an emergency created by drought or other disaster or to prevent or alleviate a shortage in the supply of agricultural commodities. The Secretary may modify the agreement under this subparagraph for the purpose of alleviating a shortage in the supply of agricultural commodities only if there has been a significant change in the estimated stocks of the commodity since the Secretary announced the final terms and conditions of the program for the crop of rice. “(f) Inventory Reduction Payments.— “(1) In general.— The Secretary may, for each of the 1991 through 1995 crops of rice, make payments available to producers who meet the requirements of this subsection. 104 STAT. 3456 “(2) Form.— The payments may be made in the form of marketing certificates. “(3) Payments.— “(A) In general.— Payments under this subsection shall be determined in the same manner as provided in subsection (b). “(B) Quantity of rice made available.— The quantity of rice to be made available to a producer under this subsection shall be equal in value to the payments so determined under this subsection. “(4) Eligibility.— A producer shall be eligible to receive a payment under this subsection for a crop if the producer— “(A) agrees to forgo obtaining a loan or purchase agreement under subsection (a); “(B) agrees to forgo receiving payments under subsection (c); “(C) does not plant rice for harvest in excess of the crop acreage base reduced by one-half of any acreage required to be diverted from production under subsection (e); and “(D) otherwise complies with this section. “(g) Equitable Relief.— “(1) Loans and payments.— If the failure of a producer to comply fully with the terms and conditions of the program conducted under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as the Secretary determines are equitable in relation to the seriousness of the failure. The Secretary may consider whether the producer made a good faith effort to comply fully with the terms and conditions of the program in determining whether equitable relief is warranted under this paragraph. “(2) Deadlines and program requirements.— The Secretary may authorize the county and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) to waive or modify deadlines and other program requirements in cases in which lateness or failure to meet the other requirements does not affect adversely the operation of the program. “(h) Regulations.— The Secretary may issue such regulations as the Secretary determines necessary to carry out this section. “(i) Commodity Credit Corporation.— The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. “(j) 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. “(k) Sharing of Payments.— The Secretary shall provide for the sharing of payments made under this section for any farm among the producers on the farm on a fair and equitable basis. “(l) Tenants and Sharecroppers.— The Secretary shall provide adequate safeguards to protect the interests of tenants and share-croppers. “(m) Cross-Compliance.— “(1) In general.— Compliance on a farm with the terms and conditions of any other commodity program, or compliance with crop acreage base requirements for any other commodity, may 104 STAT. 3457 not be required as a condition of eligibility for loans, purchases, or payments under this section. “(2) Compliance on other farms.— The Secretary may not require producers on a farm, as a condition of eligibility for loans, purchases, or payments under this section for the farm, to comply with the terms and conditions of the rice program with respect to any other farm operated by the producers. “(n) Crops.— Notwithstanding any other provision of law, this section shall be effective only for the 1991 through 1995 crops of rice.”.