PAYMENT LIMITATIONS.

SEC. 1111. PAYMENT LIMITATIONS. (a) In General.— Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended— (1) in paragraph (1)— (A) by inserting “(A)” after the paragraph designation; (B) by striking “1990” and inserting “1995”; and (C) by adding at the end the following new subparagraph: “(B) Subject to sections 1001A through 1001C for each of the 1991 through 1995 crops, the total amount of payments specified in clauses (iii), (iv), and (v) of paragraph (2)(B) that a person shall be entitled to receive under one or more of the annual programs established under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for wheat, feed grains, upland cotton, rice, and oilseeds (as defined in section 205(a) of the Agricultural Act of 1949) may not exceed $75,000.”; (2) in paragraph (2)(A)— (A) by striking “1987 through 1990 crops” and inserting “1991 through 1995 crops”; and (B) by striking “honey, and (with respect to clause (iii)(II) of subparagraph (B))” and inserting “and”; and (3) in paragraph (2)(B)— 104 STAT. 3498 (A) by striking clause (iii) and inserting the following new clause: “(iii) any gain realized by a producer from repaying a loan for a crop of any commodity (other than honey) at a lower level than the original loan level established under the Agricultural Act of 1949;”; (B) in clause (iv)— (i) by striking “section 107D(c)(1) or 105C(c)(1)” and inserting “107B(c)(1) or 105B(c)(1); and (ii) by striking “section 107D(a)(4) or 105C(a)(3)” and inserting “section 107B(a)(3) or 105B(a)(3)”; (C) by striking clause (v) and inserting the following new clause: “(v) any loan deficiency payment received for a crop of wheat, feed grains, upland cotton, rice, or oilseeds under section 107B(b), 105B(b), 103B(b), 101B(b), or 205(e), respectively, of the Agricultural Act of 1949; and”; and (D) in clause (vi), by striking “section 107D(g), 105C(g), 103A(g), or 101A(g)” and inserting “section 107B(f), 105B(f), 103B(f), or 101B(f)”. (b) Foreign Persons.— Section 1001C(a) of such Act (7 U.S.C. 1308–3(a)) is amended— (1) by striking “1989 and 1990 crops” and inserting “1991 through 1995 crops”; and (2) by inserting after “(16 U.S.C. 3831 et seq.)” the following: “, or under any contract entered into under title XII during the 1989 through 1995 crop years,”. (c) Spouses.— Clause (iii) of section 1001(5)(B) of such Act (7 U.S.C. 1308(5)(B)(iii)) is amended to read as follows: “(iii) The regulations shall provide that, with respect to any married couple, the husband and wife shall be considered to be one person, except that, for the purpose of the application of the limitations established under this section— “(I) in the case of any married couple consisting of spouses who, prior to their marriage, were separately engaged in unrelated farming operations, each spouse shall be treated as a separate person with respect to the farming operation brought into the marriage by the spouse so long as the operation remains as a separate farming operation; and “(II) at the option of the Secretary, in the case of any married couple consisting of spouses who do not hold, directly or indirectly, a substantial beneficial interest in more than one entity (including the spouses themselves) engaged in farm operations that also receives farm program payments (as described in paragraphs (1) and (2)) as separate persons, the spouses may be considered as separate persons if each spouse meets the other requirements established under this section and section 1001A to be considered to be a separate person.”. (d) Growers of Hybrid Seed.— Section 1001A(b) of such Act (7 U.S.C. 1308–1(b)) is amended by adding at the end the following new paragraph: “(6) Growers of hybrid seed.— To determine whether a person growing hybrid seed under contract shall be considered to be actively engaged in farming, the Secretary shall not take into consideration the existence of a hybrid seed contract.”. 104 STAT. 3499 (e) Irrevocable Trusts.— Section 1001(5)(B)(ii) of such Act (7 U.S.C. 1308(5)(B)(ii)) is amended by adding at the end the following new subparagraph: “(III) Notwithstanding any other provision of law, to be considered a separate person under this section, an irrevocable trust (other than a trust established prior to January 1, 1987) must not allow for modification or termination of the trust by the grantor, allow for the grantor to have any future, contingent, or remainder interest in the corpus of the trust, or provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years from the date the trust is established except in cases where the transfer is contingent on the remainder beneficiary achieving at least the age of majority or is contingent on the death of the grantor or income beneficiary.”. (f) Minimal Beneficial Interests.— Section 1001A(a)(2) of such Act (7 U.S.C. 1308–1(a)(2)) is amended by striking “10 percent” and inserting “0 to 10 percent”. (g) Education Program.— –Such Act is amended by inserting after section 1001C (7 U.S.C. 1308–3) the following new section: “SEC. 1001D. EDUCATION PROGRAM. “(a) In General.— The Secretary shall carry out a payment provisions education program for appropriate personnel of the Department of Agriculture and members and other personnel of county and State committees established under section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)), for the purpose of fostering more effective and uniform application of the payment limitations and restrictions established under sections 1001 through 1001C. “(b) Training.— The education program shall provide training to the personnel in the fair, accurate, and uniform application to individual farming operations of the provisions of law and regulation relating to the payment provisions of sections 1001 through 1001C. “(c) Administration.— The State office of the Agricultural Stabilization and Conservation Service shall make the initial determination concerning the application of payment limitations and restrictions established under sections 1001 through 1001C to farm operations consisting of more than 5 persons, subject to review by the Secretary. “(d) Commodity Credit Corporation.— The Secretary shall carry out the program provided under this section through the Commodity Credit Corporation.”, (h) Treatment of Multiyear Program Contract Payments.— Such Act (as amended by subsection (g) of this section) is further amended by inserting after section 1001D the following new section: “SEC. 1001E. TREATMENT OF MULTIYEAR PROGRAM CONTRACT PAYMENTS. “(a) In General.— Notwithstanding any other provision of law, in the event of a transfer of ownership of land (or an ownership interest in land) by way of devise or descent, the Secretary of Agriculture may, if the new owner succeeds to the prior owner’s contract entered into under title XII, make payments to the new owner under such contract without regard to the amount of payments received by the new owner under any contract entered into under title XII executed prior to such devise or descent. 104 STAT. 3500 “(b) Limitation.— Payments made pursuant to this section shall not exceed the amount to which the previous owner was entitled to receive under the terms of the contract at the time of the death of the prior owner.”. (i) Treatment of Cash Rent Tenants.— Section 2 of Public Law 101–217 is amended by striking “Effective only for” and inserting “Effective beginning with”.