Family Farmer Policy Reform Act of 1985

Family Farmer Policy Reform Act of 1985 - Title I: Agricultural Commodity Supply Management - Amends the Agricultural Act of 1949, effective for the 1986 through 1999 crops, to require the Secretary of Agriculture to conduct referendums (August of 1985, 1989, 1993, and 1997) to determine by majority vote if a mandatory supply management program shall be in effect for the succeeding four-year program period. Provides that the Secretary shall determine the farm program for the succeeding four-year period if such referendum fails.

Provides for 36-month loans at rates of 90 percent of parity for 1986 through 1999. Eliminates target prices.

Directs the Secretary to proclaim a national marketing quota (for each commodity) for each of the 1986 through 1999 crops based on domestic and export demands and food aid and carryover requirements.

Directs the Secretary to proclaim a national acreage allotment for each of the 1986 through 1999 crop years. Requires producers who earn more than 50 percent of their gross income from nonfarm sources to set aside an additional ten percent of eligible crop acreage.

Permits the Secretary to award bonus acres if the allotment request totals do not exceed the national marketing quota.

Directs the Secretary to issue marketing certificates for each commodity at the same time acreage allotments are assigned. Bases such certificates on the higher of county average yield or farm yield. Permits adjustments. Permits excess production to be: (1) used for on-farm use; (2) stored and marketed in the subsequent year; (3) donated for specified foreign food assistance programs; and (4) sold to the Commodity Credit Corporation (CCC) for 50 percent of the loan level.

Requires producers to apply conservation measures (including haying and grazing or wildlife use) to set-aside acres.

Directs the Secretary to establish a farmers disaster reserve (in lieu of crop insurance) for each commodity for the 1986 through 1999 crop years. Requires producers to contribute a portion of their production to such reserve. Provides that in the event of a disaster, producers will receive 90 percent of their marketing certificate amount reduced by actual production, not to exceed an annual value of $360,000. Permits the use of CCC stocks to supplement insufficient reserve stocks.

Suspends marketing quota, certificate, and other specified provisions of current law with regard to the 1986 through 1999 wheat and feed grain crops.

Title II: Agricultural Credit - Amends the Consolidated Farm and Rural Development Act to limit Farmers Home Administration (FmHA) guaranteed ownership and operating loans to ten percent of such total loans.

Requires farm recordkeeping training for limited resource borrowers.

Limits direct operating loans to any individual to $200,000, except that no more than 25 percent of the funds may be used for loans in excess of $100,000. Limits similar guaranteed operating loans to $400,000, except that no more than 25 percent of guaranty authority may be for loans in excess of $200,000. Limits total individual indebtedness to $500,000.

Revises FmHA emergency loan provisions, including: (1) making such loans more family-farm oriented; (2) reducing the individual loan ceiling; and (3) making such loans available only to persons unable to secure credit elsewhere.

Provides for loan (principal and interest) and foreclosure deferrals for up to five years, for the period 1986 through 1999. Sets forth loan default provisions.

Expands county committee membership to five, of which three must be farmer-elected.

Sets forth time limits for approval of FmHA loans and loan guarantees.

Establishes an appeals procedure for FmHA loan applications, including: (1) written notice of an adverse decision; and (2) opportunities for informal and formal hearings.

Limits the leasing or sale of FmHA-held land to persons who are eligible for FmHA ownership or operating loans. Sets forth a priority order for such dispositions, with first priority for limited resource borrowers. Directs the Secretary to sell to such borrower at a price which reflects the average expected income from such land. Authorizes the Secretary to make or insure loans to assist borrowers. Directs the Secretary to conduct an ongoing search to identify, publicize, and transfer such farmland to eligible borrowers.

Requires the Secretary to furnish borrowers with loan summary statements at least once a year.

Increases from 20 percent to 25 percent the amount of FmHA ownership and operating loans for limited resource borrowers.

Directs the Secretary to: (1) conduct a study of the appropriateness of the FmHA "Farm and Home Plan"; and (2) report within 120 days to the appropriate congressional committees.

Directs the CCC to guarantee certain agricultural loans made by private lending institutions.

Title III: Agricultural Exports - Amends the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) to permit local currency sales to developing countries with a per capita gross national product of $500 or less.

Authorizes grants to private entities for projects to improve storage and marketing or expand private enterprise.

Requires using at least $500,000,000 annually for FY 1985 through 1988 for an intermediate export credit program.

Increases minimum food relief tonnage under title II of P.L. 480 for FY 1985 through 1990. Requires at least 60 percent of such commodities to be in the form of processed and fortified foods.

Authorizes multiyear agreements with nonprofit voluntary agencies. Requires such agencies to maintain an operating reserve of at least 15 percent in disaster or drought-prone areas.

Directs the Secretary to maintain a processed product and fortified grain reserve.

Increases famine relief funding for: (1) CCC reimbursement; and (2) foreign currency purchases.

Directs the President, to the extent possible, to enter into multilateral agreements with other food exporting nations to aid needy nations.

Authorizes foreign currency proceeds from agricultural sales to be used to carry out direct feeding programs and agricultural development projects. Directs the President, to the extent practicable, to make at least 50,000 metric tons available annually for nondirect feeding projects.

Directs the Secretary to utilize existing law to minimize agricultural and food imports.

Title IV: Soil and Water Conservation - Subtitle A: Soil and Water Conservation - Amends the Soil Conservation and Domestic Allotment Act to direct the Secretary to establish a training program for Soil Conservation Service personnel.

Directs the Secretary to: (1) promote energy and water conservation through dry land farming; and (2) strengthen the role of local and State committees.

Requires producers to use agricultural conservation program payments and grants in accordance with a conservation plan approved by the local soil and water conservation district or by the Secretary. Directs the Secretary to provide technical assistance.

Directs the Secretary to enter into five-year minimum contracts (conservation reserve program) to promote soil and water conservation on erosion-prone land. Authorizes appropriations.

Authorizes the Secretary to enter into ten-year minimum contracts to reduce water use from underground aquifers to irrigate land. Authorizes appropriations.

Subtitle B: Highly Erodible Land Conservation - Makes any person who cultivates crops on highly erodible land ineligible for: (1) price supports; (2) farm storage facility loans; (3) crop insurance; (4) disaster payments; or (5) specified other agricultural loans.

Exempts crops planted: (1) on land cultivated from 1976 through 1985; (2) before enactment of this Act; or (3) under specified conservation systems.

Directs the Secretary to: (1) use local agricultural committees to help administer such program; and (2) complete certain soil capability surveys as soon as practicable.

Title V: Effective Date - Makes the provisions of this Act effective upon enactment, unless otherwise provided.