Sugar Policy Modernization Act of 2017

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sugar Policy Modernization Act of 
2017''.

SEC. 2. SUGAR PROGRAM.

    (a) Loan Rates.--Section 156 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272) is amended by striking 
subsections (a) and (b) and inserting the following new subsections:
    ``(a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to--
            ``(1) 18.75 cents per pound for raw cane sugar for the 2018 
        crop year;
            ``(2) 18.50 cents per pound for raw cane sugar for the 2019 
        crop year;
            ``(3) 18.25 cents per pound for raw cane sugar for the 2020 
        crop year; and
            ``(4) 18.00 cents per pound for raw cane sugar for the 2021 
        through 2023 crop years.
    ``(b) Sugar Beets.--The Secretary shall make loans available to 
processors of domestically grown sugar beets at a rate equal to 128.5 
percent of the loan rate per pound of raw cane sugar for the applicable 
crop year under subsection (a) for each of the 2018 through 2023 crop 
years.''.
    (b) Avoiding Forfeitures While Ensuring Adequate Supplies at 
Reasonable Prices.--Section 156(f) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)) is amended--
            (1) in the subsection heading, by inserting ``While 
        Ensuring Adequate Supplies at Reasonable Prices'' after 
        ``Forfeitures''; and
            (2) in paragraph (1), by inserting ``ensure adequate 
        supplies of sugar at reasonable prices and'' after ``shall''.
    (c) Assurance of No Net Cost and Means for Recovery of Net Costs.--
Section 156(f) of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(f)) is further amended by adding at the end the 
following new paragraph:
            ``(3) Assurance of no net cost; recovery of net costs.--
                    ``(A) Recovery required.--Whenever the Secretary 
                finds that, notwithstanding paragraph (1), the program 
                established under this section has resulted in a net 
                cost to the Federal Government, the Secretary shall 
                recover, in a manner determined by the Secretary in 
                regulations prescribed under subparagraph (C), such net 
                cost from processors of domestically grown sugarcane 
                and sugar beets.
                    ``(B) Recovery method.--The Secretary may provide 
                for single or multiple payments by each processor of 
                domestically grown sugarcane or sugar beets for the 
                recovery of such net cost under this paragraph.
                    ``(C) Net cost defined.--In this paragraph, the 
                term `net cost' refers to a situation in which Federal 
                expenditures (including disbursement of loan proceeds) 
                for a fiscal year pursuant to the program established 
                under this section exceed receipts under such program 
                (including loan repayments) for the same fiscal year.
                    ``(D) Regulations.--The Secretary shall issue 
                regulations to carry out this paragraph.
                    ``(E) Application.--This paragraph shall apply 
                beginning with the 2019 crop year.''.
    (d) Effective Period.--Section 156(i) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272(i)) is amended by 
striking ``2018'' and inserting ``2023''.

SEC. 3. ONE-YEAR EXTENSION OF FEEDSTOCK FLEXIBILITY PROGRAM FOR 
              BIOENERGY PRODUCERS AND SUBSEQUENT TERMINATION.

    (a) Extension.--Section 9010(b) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8110(b)) is amended--
            (1) in paragraph (1)(A), by striking ``2018'' and inserting 
        ``2019''; and
            (2) in paragraph (2)(A), by striking ``2018'' and inserting 
        ``2019''.
    (b) Termination.--Section 9010 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8110) is amended by adding at the end 
the following new subsection:
    ``(c) Termination.--The Secretary may not carry out the feedstock 
flexibility program under subsection (b) for the 2020 or subsequent 
crops of eligible commodities.''.

SEC. 4. TWO-YEAR EXTENSION OF MARKETING ALLOTMENTS FOR SUGAR AND 
              SUBSEQUENT ADMINISTRATION OF TARIFF-RATE QUOTAS.

    (a) Flexible Marketing Allotments for Sugar.--
            (1) Sugar estimates.--Section 359b(a)(1) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb(a)(1)) is 
        amended by striking ``2018'' and inserting ``2020''.
            (2) Effective period.--Section 359l(a) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359ll(a)) is amended by 
        striking ``2018'' and inserting ``2020''.
            (3) Transition to final stocks to use ratio.--Section 
        359k(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1359kk(b)) is amended by adding at the end the following new 
        paragraph:
            ``(3) Stocks-to-use ratio.--Notwithstanding paragraphs (1) 
        and (2), the Secretary shall adjust tariff-rate quotas 
        established under subsection (a) in such a manner as to ensure, 
        to the maximum extent practicable, that--
                    ``(A) the final ratio of sugar stocks to total 
                sugar use at the end of a crop year will be 
                approximately--
                            ``(i) 14.5 percent for fiscal year 2019; 
                        and
                            ``(ii) 15 percent for fiscal year 2020; and
                    ``(B) stocks of raw cane and refined beet sugar are 
                adequate throughout the crop year to meet the needs of 
                the marketplace, including the efficient utilization of 
                cane refining capacity.''.
    (b) Repeal and Replacement.--
            (1) In general.--Effective October 1, 2020, part VII of 
        subtitle B of title III of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1359aa et seq.) is amended to read as follows:

                           ``PART VII--SUGAR

``SEC. 359. ADMINISTRATION OF TARIFF-RATE QUOTAS.

    ``(a) Establishment.--Notwithstanding any other provision of law, 
at the beginning of fiscal year 2021 and each fiscal year thereafter 
through the end of the effective period, the Secretary shall establish 
the tariff-rate quotas for raw cane sugar and refined sugar to provide 
adequate supplies of sugar at reasonable prices, but at no less than 
the minimum level necessary to comply with obligations under 
international trade agreements that have been approved by Congress.
    ``(b) Adjustment Authority.--The Secretary shall adjust tariff-rate 
quotas established under subsection (a) in such a manner as to ensure, 
to the maximum extent practicable, that--
            ``(1) the final ratio of sugar stocks to total sugar use at 
        the end of a fiscal year will be approximately 15.5 percent for 
        fiscal year 2021 and each fiscal year thereafter through the 
        end of the effective period; and
            ``(2) stocks of raw cane and refined beet sugar are 
        adequate throughout the crop year to meet the needs of the 
        marketplace, including the efficient utilization of cane 
        refining capacity.
    ``(c) Transfer of Quota Shares.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations that--
                    ``(A) promote full use of the tariff-rate quotas 
                for raw cane sugar and refined sugar and ensure 
                adequate supplies for cane refiners in the United 
                States;
                    ``(B) provide that any country that has been 
                allocated a share of the quotas may temporarily 
                transfer all or part of the share to any other country 
                that has also been allocated a share of the quotas.
            ``(2) Transfers voluntary.--Any transfer under this 
        subsection shall be valid only pursuant to a voluntary 
        agreement between the transferor and the transferee, consistent 
        with procedures established by the Secretary.
            ``(3) Limitations on transfers with respect to fiscal 
        year.--
                    ``(A) In general.--Any transfer under this 
                subsection shall be valid only for the duration of the 
                fiscal year during which the transfer is made.
                    ``(B) Following fiscal year.--No transfer under 
                this subsection shall affect the share of the quota 
                allocated to the transferor or transferee for the 
                following fiscal year.
    ``(d) Effective Period.--This section shall be effective for fiscal 
years only through the 2023 crop year for sugar.''.
            (2) Continued application of prior law to certain sugar 
        crops.--Part VII of subtitle B of title III of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.), as in effect 
        on the day before the date specified in paragraph (1), shall 
        continue to apply to the 2019 and 2020 crop years for sugar.

SEC. 5. SENSE OF CONGRESS.

    It is the sense of Congress that the President should establish, as 
major goals of the United States trade policy, the following:
            (1) The elimination of all direct and indirect subsidies 
        benefitting the production or export of sugar by any 
        government.
            (2) The enforcement, negotiation, and implementation of 
        trade agreements that provide commercially meaningful sugar 
        trade liberalization globally and enhance trade opportunities 
        for United States agriculture and all sectors of the United 
        States economy.

Summary: Sugar Policy Modernization Act of 2017 This bill amends the Federal Agriculture Improvement and Reform Act of 1996 and other agricultural laws to modify the Department of Agriculture (USDA) sugar program. The bill modifies the sugar program to: reduce the rates for price support loans to processors of domestically grown sugarcane and sugar beets. Require USDA to recover the net cost of the program from domestic sugar processors. Extend through 2019 and then terminate the Feedstock Flexibility Program under which USDA purchases surplus sugar from domestic processors for resale to ethanol producers. Extend through 2020 and then repeal the flexible marketing allotments which limit the amount of sugar that domestic processing companies may sell for domestic human use. Require USDA to administer the program to provide adequate supplies of sugar at reasonable prices. Require USDA to adjust sugar tariff-rate quota imports to achieve specified ratios of sugar stocks to total sugar use, and allow the transfer of quotas between countries.