A bill to provide emergency assistance to farmers and ranchers adversely affected by this year's drought and excessively hot weather.

(Measure passed House, amended, roll call #288 (418-0))

Directs the Secretary of Agriculture to make available in 1986 at no cost to farmers and ranchers in natural disaster areas (as defined by this Act) surplus Commodity Credit Corporation (CCC) commodities (including transportation costs) for emergency livestock or poultry feed. States that such commodities shall be made available when the Secretary determines that the local supply of reasonably-priced feed and forage is insufficient to cover a 72-hour period, or other period required to bring feed in from surplus areas, and significant livestock losses will result without such assistance.

Directs the Secretary to use specified regulations issued under the Food and Agriculture Act of 1977 to determine feed needs and commodity amounts.

Makes such assistance available until the earlier of the period beginning three days after enactment of this Act and ending March 31, 1987, or the date, as determined by the Secretary, on which the emergency no longer exists.

Directs the Secretary to make in-kind emergency livestock and poultry feed assistance available under the Food and Agriculture Act of 1977 to farmers and ranchers in natural disaster areas. Sets maximum reimbursement rates at 50 percent, except that net costs cannot exceed prices offered to foreign purchasers under an export development program.

Directs the Secretary to permit any 1986 drought-affected producer of wheat, feed grains, upland cotton, or rice who is participating in specified acreage reduction programs under the Agricultural Act of 1949, to devote such acreage to hay or grazing without regard to certain limitations imposed by such Act.

Directs the President, in carrying out an emergency assistance program under the Disaster Relief Act of 1974, to require the Secretary to implement an emergency hay program, including paying 80 percent of transportation costs. Stipulates that such program shall be undertaken only if the Secretary determines, after consultation with the Governor and other State offcials, that: (1) available stocks of hay are insufficient; and (2) emergency feed assistance and additional haying and grazing acreage will be insufficient to prevent substantial livestock loss or herd liquidations.

Makes such emergency feed assistance and additional haying and grazing provisions effective 15 days after enactment of this Act. States that such assistance shall be available until the earlier of March 31, 1987, or the date, as determined by the Secretary, on which the emergency no longer exists.

Requires that such assistance be made available if other assistance under the Agricultural Act of 1949 is not made available within a specified time.

Directs the Secretary to make disaster payments in-kind to requesting producers of 1986 wheat, feed grain, upland cotton, rice, soybean, and peanut crops in natural disaster areas. Limits aggregate payments to any one producer to $100,000. States that holders of crop insurance will not have such disaster payments reduced as a consequence of being insured under the Federal Crop Insurance Act.

Prohibits reduction in the price received by milk producers in natural disaster areas for the period beginning October 1, 1986, and ending December 31, 1986. Increases such reductions during the period beginning January 1, 1987, and ending September 30, 1987, in order to make up for such prohibited price reductions.

Amends the Agricultural Adjustment Act of 1938 to waive, upon request, specified farm poundage quota leasing requirements for the 1986 peanut crop.

Provides that tobacco lease and transfer prohibitions shall become effective beginning with the 1988 crop if the holder of record is: (1) age 55 or older or a single head of household and receives at least one-half of his or her income from the allotment or quota; or (2) blind or disabled.

Directs the Secretary to make cost-sharing payments (at least 50 percent) available in natural disaster areas for: (1) conservation measures designed to prevent soil erosion due to loss of vegetative cover; and (2) reestablishment of stands of pine trees. Provides for in-kind cost-sharing payments. Makes such assistance available during the period beginning 15 days after enactment of this Act and ending March 30, 1987.

Authorizes the Secretary in making in-kind payments, to use commodities owned by the CCC or pledged to the CCC as loan security. Permits such payments to be made by: (1) warehouse delivery; (2) transfer of negotiable warehouse receipts; (3) issuance of negotiable commodity certificates; or (4) other appropriate methods.

Directs the Secretary, to the maximum extent practicable, to use CCC commodities stored in storage deficient areas in the midwestern United States.

Requires that transportation expenses under the emergency feed donation program and hay transportation program be made in-kind prior to October 1, 1986, or in-kind or cash after September 30, 1986.

Expresses the sense of the Congress, with respect to farm borrowers adversely affected by natural disasters in 1986, that: (1) the Secretary should exercise specified authority under the Consolidated Farm and Rural Development Act to defer repayments and forgo foreclosures on Farmers Home Administration loans; and (2) the Farm Credit System and commercial lenders should be encouraged to adopt lenient lending, forbearance, and foreclosure policies, and to participate with government agencies in borrower assistance programs.

Expresses the sense of the Congress that the Secretary should: (1) establish a coordinating mechanism within the Department of Agriculture to coordinate Executive assistance; (2) ensure that Government and voluntary agencies and the farmers and ranchers in each natural disaster area are provided a single contact person or unit for Federal assistance, and that a similar contact is provided for assistance from outside such areas; and (3) consult with the Governor and other appropriate State officials concerning the disaster needs of affected farmers and ranchers.

Provides for the sale of certain Rural Development Insurance Fund notes during FY 1986 and 1987 to cover costs resulting from this Act. Permits Farm Credit System institutions to purchase such notes.