SHRINKAGE ALLOWANCE FOR PEANUTS.

SEC. 601. SHRINKAGE ALLOWANCE FOR PEANUTS. Effective only for the 1988 through 1990 crops of peanuts, section 359(p)(2)(B) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359(p)(2)(B)) is amended— (1) in clause (i), by striking “(less such reasonable allowances for shrinkage as the Secretary may prescribe)”; and (2) by adding at the end the following new clause: 103 STAT. 587 “(iv)(I) The obligation of a handler to export peanuts in quantities described in this subparagraph shall be reduced by a shrinkage allowance, to be determined by the Secretary, to reflect actual dollar value shrinkage experienced by handlers in commercial operations, except that such allowance shall not be less than 4 1/2 percent, except as provided in subclause (II). “(II) The Secretary may provide a lower shrinkage allowance for a handler who fails to comply with restrictions on the use of peanuts, as may be specified by the Commodity Credit Corporation, to take into account common industry practices.”.