Farm Spouse Fairness and Equity Act of 1990

Farm Spouse Fairness and Equity Act of 1990 - Amends the Food Security Act of 1985 to treat a husband and wife who each provide active personal management or labor to their farm or to an after-acquired inherited farm as separate persons for farm program payment purposes (thus qualifying them for two separate payments).

Continues a farm's multiyear program payments to a person who receives such farm by way of gift or descent. States that such payments shall: (1) not exceed the previous owner's payments; and (2) continue without regard to other payments received by the new owner from such farm or from other farming operations.

 
S 2585 IS
101st CONGRESS
2d Session
S. 2585
To amend the Food Security Act of 1985 to provide farm program payment fairness
and equity to married couples when both the husband and the wife contribute
active personal management or labor to the operation of a farm enterprise,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 8 (legislative day, APRIL 18), 1990
Mrs. KASSEBAUM introduced the following bill; which was read twice and
referred to the Committee on Agriculture, Nutrition, and Forestry
A BILL
To amend the Food Security Act of 1985 to provide farm program payment fairness
and equity to married couples when both the husband and the wife contribute
active personal management or labor to the operation of a farm enterprise,
and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Farm Spouse Fairness and Equity Act of 1990'.
SEC. 2. APPLICATION OF PAYMENT LIMITATIONS TO MARRIED COUPLES.
  Effective beginning with the 1990 crops, section 1001(5)(B) of the Food
  Security Act of 1985 (7 U.S.C. 1308(5)(B)) is amended by striking clause
  (iii) and inserting the following new clause:
  `(iii) The regulations shall provide that, with respect to a married couple,
  the husband and wife shall be considered to be one person, except--
  `(I) in the case of a married couple that owns or operates a farming
  operation that is otherwise eligible for farm program payments under
  paragraph (1), the couple may designate one spouse as the `primary recipient'
  for the purpose of receiving the payments and the other spouse shall be
  considered to be a separate person actively engaged in farming for the
  purpose of receiving farm program payments not to exceed the per-person
  limitation amount contained in paragraph (1), if the other spouse makes a
  significant contribution (based on the total value of the farming operation)
  of active personal management of personal labor;
  `(II) in the case of a 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 actively engaged in
  farming with respect to the farming operation brought into the marriage by
  the spouse, if the spouse continues to provide a significant contribution
  of active personal management or labor in relation to the farming operation
  brought into the marriage; and
  `(III) in the case of a married couple consisting of a spouse who, following
  the marriage, becomes the owner of an unrelated farming operation by way
  of gift (in anticipation of death or on disability of the donor), devise,
  or descent, the spouse shall be treated as a separate person actively
  engaged in farming with respect to the acquired farming operation, if the
  spouse provides a significant contribution of active personal management
  or labor in relation to the farming operation so acquired.'.
SEC. 3. TREATMENT OF MULTIYEAR PROGRAM CONTRACT PAYMENTS.
  Effective beginning with the 1989 crops, the Food Security Act of 1985 is
  amended by inserting after section 1001C (7 U.S.C. 1308-3) the following
  new section:
`SEC. 1001D. TREATMENT OF MULTIYEAR PROGRAM CONTRACT PAYMENTS.
  `(a) IN GENERAL- Notwithstanding any other provision of law, in the event
  of a transfer of ownership of a farming operation (or an ownership interest
  in a farming operation) by way of gift (in anticipation of death or on
  disability of the donor), devise, or descent, the Secretary of Agriculture
  shall continue to make to the new owner all payments that may become due
  and payable by virtue of any multiyear program contract that was in effect
  at the time of the gift or the death of the prior owner.
  `(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 gift or the death of the prior owner.
  `(c) OTHER FARMING OPERATIONS- Payments shall be made pursuant to this
  section to the new owner of a farming operation (or an ownership interest
  in a farming operation) without regard to any limitation on farm program
  payments received by the new owner in the capacity of the new owner as
  a separate person actively engaged in farming with regard to any other
  farming operation, including the operation subject to the multiyear program
  payment contract that is the basis of the section.'.