PROGRAM INELIGIBILITY.

SEC. 321. PROGRAM INELIGIBILITY. (a) Program Ineligibility.— Section 1221 of the Food Security Act of 1985 (16 U.S.C. 3821) is amended— (1) by redesignating subsection (b) as subsection (c); and (2) by striking the section heading and all that follows through the end of subsection (a) and inserting the following: “SEC. 1221. PROGRAM INELIGIBILITY. “(a) Production on Converted Wetland.— Except as provided in this subtitle and notwithstanding any other provision of law, any person who in any crop year produces an agricultural commodity on converted wetland, as determined by the Secretary, shall be— “(1) in violation of this section; and “(2) ineligible for loans or payments in an amount determined by the Secretary to be proportionate to the severity of the violation. “(b) Ineligibility for Certain Loans and Payments.— If a person is determined to have committed a violation under subsection (a) during a crop year, the Secretary shall determine which of, and the amount of, the following loans and payments for which the person shall be ineligible: “(1) Contract payments under a production flexibility contract, marketing assistance loans, and any type of price support or payment made available under the Agricultural Market 110 STAT. 987Transition Act, the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or any other Act. “(2) A loan made or guaranteed under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) or any other provision of law administered by the Consolidated Farm Service Agency, if the Secretary determines that the proceeds of the loan will be used for a purpose that will contribute to conversion of a wetland (other than as provided in this subtitle) to produce an agricultural commodity. “(3) During the crop year: “(A) A payment made pursuant to a contract entered into under the environmental quality incentives program under chapter 4 of subtitle D. “(B) A payment under any other provision of subtitle D. “(C) A payment under section 401 or 402 of the Agricultural Credit Act of 1978 (16 U.S.C. 2201 and 2202). “(D) A payment, loan, or other assistance under section 3 or 8 of the Watershed Protection and Flood Prevention Act (16 U.S.C. 1003 and 1006a).”. (b) Conforming Amendments.— (1) Section 1221(c) of the Food Security Act of 1985 (as redesignated by subsection (a)(1)) is amended— (A) by striking “Except” and inserting “Wetland Conversion.—Except”; (B) by striking “subsequent to the date of enactment of the Food, Agriculture, Conservation, and Trade Act of 1990” and inserting “beginning after November 28, 1990,”; and (C) by striking “subsections (a) (1) through (3)” and inserting “subsection (b)”. (2) Section 1221 of the Food Security Act of 1985 (as amended by subsection (a)) is amended by adding at the end the following: “(d) Prior Loans.— This section shall not apply to a loan described in subsection (b) made before December 23, 1985.”.