((a)) ** In general** The Secretary shall formulate and administer a farmer owned reserve program under which producers of wheat and feed grains will be able to store wheat and feed grains when the commodities are in abundant supply, extend the time period for the orderly marketing of the commodities, and provide for adequate carryover stocks to ensure a reliable supply of the commodities.

((b)) ** Terms of program**

((1)) ** Price support loans** In carrying out this program, the Secretary shall provide extended price support loans for wheat and feed grains. An extended loan shall only be made to a producer after the expiration of a 9-month price support loan (hereafter in this section referred to as the “original loan”) made in accordance with this subchapter.

((2)) ** Level of loans** Loans made under this section shall not be less than the then current level of support under the wheat and feed grain programs established under this subchapter.

((3)) ** Other terms and conditions** The Secretary shall provide for—

((A)) repayment of the extended price support loan 27 months from the date on which the original loan expired unless, at the discretion of the Secretary, the loan has been extended for one 6-month period;

((B)) a rate of interest as provided under subsection (c); and

((C)) payments to producers for storage as provided in subsection (d).

((4)) ** Regional differences** The Secretary shall ensure that producers are afforded a fair and equitable opportunity to participate in the program established under this section, taking into account regional differences in the time of harvest.

((c)) ** Interest charges**

((1)) ** Levying of interest** The Secretary may charge interest on loans under this section whenever the price of wheat or feed grains is equal to or exceeds 105 percent of the then current established price for the commodity.

((2)) ** 90-day period** If interest is levied on the loans under paragraph (1), the interest may be charged for a period of 90 days after the last day on which the price of wheat or feed grains was equal to or in excess of 105 percent of the established price for the commodities.

((3)) ** Rate of interest** The rate of interest charged participants in this program shall not be less than the rate of interest charged by the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust the interest as the Secretary considers appropriate to effectuate the purposes of this section.

((d)) ** Storage payments**

((1)) ** In general** The Secretary shall provide storage payments to producers for storage of wheat or feed grains under the program established in this section in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program.

((2)) ** Timing** The Secretary shall make storage payments available to participants in this program at the end of each quarter.

((3)) ** Duration** The Secretary shall cease making storage payments whenever the price of wheat or feed grains is equal to or exceeds 95 percent of the then current established price for the commodities, and for any 90-day period immediately following the last day on which the price of wheat or feed grains was equal to or in excess of 95 percent of the then current established price for the commodities.

((e)) ** Emergencies** Notwithstanding any other provision of law, the Secretary may require producers to repay loans made under this section, plus accrued interest and such other charges as may be required by regulation prior to the maturity date thereof, if the Secretary determines that emergency conditions exist that require that the commodity be made available in the market to meet urgent domestic or international needs and the Secretary reports the determination and the reasons for the determination to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 14 days before taking the action.

((f)) ** Quantity of commodities in program** The Secretary may establish maximum quantities of wheat and feed grains that may receive loans and storage payments under this program as follows:

((1)) The maximum quantities of wheat may not be established at less than 300 million bushels, nor more than 450 million bushels.

((2)) The maximum quantities of feed grains may not be established at less than 600 million bushels, nor more than 900 million bushels.

((g)) ** Announcement of program**

((1)) ** Time of announcement** The Secretary shall announce the terms and conditions of the producer storage program for a crop of wheat and feed grains by—

((A)) in the case of wheat, December 15 of the year in which the crop of wheat was harvested; and

((B)) in the case of feed grains, March 15 of the year following the year in which the crop of corn was harvested.

((2)) ** Discretionary entry** The Secretary may make extended loans available to producers of wheat or feed grains if—

((A)) the Secretary determines that the average market price for wheat or corn, respectively, for the 90-day period prior to the dates specified in paragraph (1) is less than 120 percent of the current loan rate for wheat or corn, respectively; or

((B)) as of the appropriate date specified in paragraph (1), the Secretary estimates that the stocks-to-use ratio on the last day of the current marketing year will be—

((i)) in the case of wheat, more than 37.5 percent; and

((ii)) in the case of corn, more than 22.5 percent.

((3)) ** Mandatory entry** The Secretary shall make extended loans available to producers of wheat or feed grains if the conditions specified in subparagraphs (A) and (B) of paragraph (2) are met for wheat or feed grains, respectively.

((4)) ** Content of announcement** In the announcement, the Secretary shall specify the maximum quantity of wheat or feed grains to be stored under this program that the Secretary determines appropriate to promote the orderly marketing of the commodities.

((h)) ** Discretionary exit** A producer may repay a loan extended under this section at any time.

((i)) ** Reconcentration of grain** The Secretary may, with the concurrence of the owner of grain stored under this program, reconcentrate all such grain stored in commercial warehouses at such points as the Secretary considers to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations that assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by the producer’s or warehouseman’s commitment.

((j)) ** Management of grain** Whenever grain is stored under this section, the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate the commodities that the Commodity Credit Corporation owns or controls. The purchases to offset sales shall be made within 2 market days following the sales. The Secretary shall make a daily list available showing the price, location, and quantity of the transactions.

((k)) ** Use of Commodity Credit Corporation** The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. To the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall utilize the usual and customary channels, facilities, and arrangements of trade and commerce.

((l)) ** Use of commodity certificates** Notwithstanding any other provision of law, if a producer has substituted purchased or other commodities for the commodities originally pledged as collateral for a loan made under this section, the Secretary may allow a producer to repay the loan using a generic commodity certificate that may be exchanged for commodities owned by the Commodity Credit Corporation, if the substitute commodities have been pledged as loan collateral and redeemed only within the same county.

((m)) ** Additional authority** The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations.

((n)) ** Regulations** The Secretary of Agriculture shall issue such regulations as are necessary to carry out this section not later than 60 days after .November 28, 19901990-11-28

((o)) ** Review** In announcing the terms and conditions of the producer storage program under this section, the Secretary shall review standards concerning the quality of grain that shall be allowed to be stored under the program, and such standards should encourage only quality grain, as determined by the Secretary, to be pledged as collateral for such loans. The Secretary shall review inspection, maintenance, and stock rotation requirements and take the necessary steps to maintain the quality of such grain.

((p)) ** Crops** Notwithstanding any other provision of law, this section shall become effective .December 1, 19901990-12-01