I 

115TH CONGRESS 

1ST SESSION H. R. 4265 

To modernize the sugar program under the Federal Agriculture Improvement 

and Reform Act of 1996, to provide for the repeal of the feedstock 

flexibility program for bioenergy producers under the Farm Security 

and Rural Investment Act of 2002 and marketing allotments for sugar 

under the Agricultural Adjustment Act of 1938, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 7, 2017 

Ms. FOXX (for herself, Mr. DANNY K. DAVIS of Illinois, Mr. GOODLATTE, Mr. 

BLUMENAUER, Mr. DENT, Ms. SPEIER, Mr. ROE of Tennessee, Mr. 

RUSH, Mr. CHABOT, Mr. LIPINSKI, Mr. HENSARLING, Mr. GARAMENDI, 

Mr. SHUSTER, Ms. KUSTER of New Hampshire, Mrs. BROOKS of Indiana, 

Mr. KIND, Mrs. BLACK, Mrs. BEATTY, Mr. FRELINGHUYSEN, Mr. 

SCHNEIDER, Mr. BARLETTA, Mr. MEADOWS, Mr. SMUCKER, Mr. LATTA, 

Mr. SENSENBRENNER, Mr. GOHMERT, Mr. MASSIE, Mr. COSTELLO of 

Pennsylvania, Mr. BANKS of Indiana, Mr. COLLINS of Georgia, Mr. 

WOMACK, Mr. DESJARLAIS, Mrs. WALORSKI, Mr. JOHNSON of Ohio, 

Mrs. BLACKBURN, Mr. ROTHFUS, Mr. BRAT, Mr. KELLY of Pennsylvania, Mr. JOYCE of Ohio, Mr. FLEISCHMANN, Mr. FITZPATRICK, Ms. 

SHEA-PORTER, Ms. SINEMA, and Mr. STEWART) introduced the following 

bill; which was referred to the Committee on Agriculture, and in addition 

to the Committee on Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To modernize the sugar program under the Federal Agriculture Improvement and Reform Act of 1996, to provide 

for the repeal of the feedstock flexibility program for 

bioenergy producers under the Farm Security and Rural 

Investment Act of 2002 and marketing allotments for 


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sugar under the Agricultural Adjustment Act of 1938, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sugar Policy Mod5 ernization Act of 2017’’. 

6 SEC. 2. SUGAR PROGRAM. 

7 (a) LOAN RATES.—Section 156 of the Federal Agri8 culture Improvement and Reform Act of 1996 (7 U.S.C. 

9 7272) is amended by striking subsections (a) and (b) and 

10 inserting the following new subsections: 

11 ‘‘(a) SUGARCANE.—The Secretary shall make loans 

12 available to processors of domestically grown sugarcane at 

13 a rate equal to— 

14 ‘‘(1) 18.75 cents per pound for raw cane sugar 

15 for the 2018 crop year; 

16 ‘‘(2) 18.50 cents per pound for raw cane sugar 

17 for the 2019 crop year; 

18 ‘‘(3) 18.25 cents per pound for raw cane sugar 

19 for the 2020 crop year; and 

20 ‘‘(4) 18.00 cents per pound for raw cane sugar 

21 for the 2021 through 2023 crop years. 

22 ‘‘(b) SUGAR BEETS.—The Secretary shall make loans 

23 available to processors of domestically grown sugar beets 

24 at a rate equal to 128.5 percent of the loan rate per pound 


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1 of raw cane sugar for the applicable crop year under sub2 section (a) for each of the 2018 through 2023 crop 

3 years.’’. 

4 (b) AVOIDING FORFEITURES WHILE ENSURING ADE5 QUATE SUPPLIES AT REASONABLE PRICES.—Section 

6 156(f) of the Federal Agriculture Improvement and Re7 form Act of 1996 (7 U.S.C. 7272(f)) is amended— 

8 (1) in the subsection heading, by inserting 

9 ‘‘WHILE ENSURING ADEQUATE SUPPLIES AT REA10 SONABLE PRICES’’ after ‘‘FORFEITURES’’; and 

11 (2) in paragraph (1), by inserting ‘‘ensure ade12 quate supplies of sugar at reasonable prices and’’ 

13 after ‘‘shall’’. 

14 (c) ASSURANCE OF NO NET COST AND MEANS FOR

15 RECOVERY OF NET COSTS.—Section 156(f) of the Fed16 eral Agriculture Improvement and Reform Act of 1996 (7 

17 U.S.C. 7272(f)) is further amended by adding at the end 

18 the following new paragraph: 

19 ‘‘(3) ASSURANCE OF NO NET COST; RECOVERY

20 OF NET COSTS.— 

21 ‘‘(A) RECOVERY REQUIRED.—Whenever 

22 the Secretary finds that, notwithstanding para23 graph (1), the program established under this 

24 section has resulted in a net cost to the Federal 

25 Government, the Secretary shall recover, in a 


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1 manner determined by the Secretary in regula2 tions prescribed under subparagraph (C), such 

3 net cost from processors of domestically grown 

4 sugarcane and sugar beets. 

5 ‘‘(B) RECOVERY METHOD.—The Secretary 

6 may provide for single or multiple payments by 

7 each processor of domestically grown sugarcane 

8 or sugar beets for the recovery of such net cost 

9 under this paragraph. 

10 ‘‘(C) NET COST DEFINED.—In this para11 graph, the term ‘net cost’ refers to a situation 

12 in which Federal expenditures (including dis13 bursement of loan proceeds) for a fiscal year 

14 pursuant to the program established under this 

15 section exceed receipts under such program (in16 cluding loan repayments) for the same fiscal 

17 year. 

18 ‘‘(D) REGULATIONS.—The Secretary shall 

19 issue regulations to carry out this paragraph. 

20 ‘‘(E) APPLICATION.—This paragraph shall 

21 apply beginning with the 2019 crop year.’’. 

22 (d) EFFECTIVE PERIOD.—Section 156(i) of the Fed23 eral Agriculture Improvement and Reform Act of 1996 (7 

24 U.S.C. 7272(i)) is amended by striking ‘‘2018’’ and in25 serting ‘‘2023’’. 


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1 SEC. 3. ONE-YEAR EXTENSION OF FEEDSTOCK FLEXIBILITY 

2 PROGRAM FOR BIOENERGY PRODUCERS AND 

3 SUBSEQUENT TERMINATION. 

4 (a) EXTENSION.—Section 9010(b) of the Farm Secu5 rity and Rural Investment Act of 2002 (7 U.S.C. 8110(b)) 

6 is amended— 

7 (1) in paragraph (1)(A), by striking ‘‘2018’’ 

8 and inserting ‘‘2019’’; and 

9 (2) in paragraph (2)(A), by striking ‘‘2018’’ 

10 and inserting ‘‘2019’’. 

11 (b) TERMINATION.—Section 9010 of the Farm Secu12 rity and Rural Investment Act of 2002 (7 U.S.C. 8110) 

13 is amended by adding at the end the following new sub14 section: 

15 ‘‘(c) TERMINATION.—The Secretary may not carry 

16 out the feedstock flexibility program under subsection (b) 

17 for the 2020 or subsequent crops of eligible commodities.’’. 

18 SEC. 4. TWO-YEAR EXTENSION OF MARKETING ALLOT19 MENTS FOR SUGAR AND SUBSEQUENT AD20 MINISTRATION OF TARIFF-RATE QUOTAS. 

21 (a) FLEXIBLE MARKETING ALLOTMENTS FOR

22 SUGAR.— 

23 (1) SUGAR ESTIMATES.—Section 359b(a)(1) of 

24 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

25 1359bb(a)(1)) is amended by striking ‘‘2018’’ and 

26 inserting ‘‘2020’’. 


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1 (2) EFFECTIVE PERIOD.—Section 359l(a) of 

2 the Agricultural Adjustment Act of 1938 (7 U.S.C. 

3 1359ll(a)) is amended by striking ‘‘2018’’ and in4 serting ‘‘2020’’. 

5 (3) TRANSITION TO FINAL STOCKS TO USE

6 RATIO.—Section 359k(b) of the Agricultural Adjust7 ment Act of 1938 (7 U.S.C. 1359kk(b)) is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(3) STOCKS-TO-USE RATIO.—Notwithstanding 

10 paragraphs (1) and (2), the Secretary shall adjust 

11 tariff-rate quotas established under subsection (a) in 

12 such a manner as to ensure, to the maximum extent 

13 practicable, that— 

14 ‘‘(A) the final ratio of sugar stocks to total 

15 sugar use at the end of a crop year will be ap16 proximately— 

17 ‘‘(i) 14.5 percent for fiscal year 2019; 

18 and 

19 ‘‘(ii) 15 percent for fiscal year 2020; 

20 and 

21 ‘‘(B) stocks of raw cane and refined beet 

22 sugar are adequate throughout the crop year to 

23 meet the needs of the marketplace, including 

24 the efficient utilization of cane refining capac25 ity.’’. 


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1 (b) REPEAL AND REPLACEMENT.— 

2 (1) IN GENERAL.—Effective October 1, 2020, 

3 part VII of subtitle B of title III of the Agricultural 

4 Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) 

5 is amended to read as follows: 

6 ‘‘PART VII—SUGAR 

7 ‘‘SEC. 359. ADMINISTRATION OF TARIFF-RATE QUOTAS. 

8 ‘‘(a) ESTABLISHMENT.—Notwithstanding any other 

9 provision of law, at the beginning of fiscal year 2021 and 

10 each fiscal year thereafter through the end of the effective 

11 period, the Secretary shall establish the tariff-rate quotas 

12 for raw cane sugar and refined sugar to provide adequate 

13 supplies of sugar at reasonable prices, but at no less than 

14 the minimum level necessary to comply with obligations 

15 under international trade agreements that have been ap16 proved by Congress. 

17 ‘‘(b) ADJUSTMENT AUTHORITY.—The Secretary shall 

18 adjust tariff-rate quotas established under subsection (a) 

19 in such a manner as to ensure, to the maximum extent 

20 practicable, that— 

21 ‘‘(1) the final ratio of sugar stocks to total 

22 sugar use at the end of a fiscal year will be approxi23 mately 15.5 percent for fiscal year 2021 and each 

24 fiscal year thereafter through the end of the effective 

25 period; and 


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1 ‘‘(2) stocks of raw cane and refined beet sugar 

2 are adequate throughout the crop year to meet the 

3 needs of the marketplace, including the efficient uti4 lization of cane refining capacity. 

5 ‘‘(c) TRANSFER OF QUOTA SHARES.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall pro7 mulgate regulations that— 

8 ‘‘(A) promote full use of the tariff-rate 

9 quotas for raw cane sugar and refined sugar 

10 and ensure adequate supplies for cane refiners 

11 in the United States; 

12 ‘‘(B) provide that any country that has 

13 been allocated a share of the quotas may tem14 porarily transfer all or part of the share to any 

15 other country that has also been allocated a 

16 share of the quotas. 

17 ‘‘(2) TRANSFERS VOLUNTARY.—Any transfer 

18 under this subsection shall be valid only pursuant to 

19 a voluntary agreement between the transferor and 

20 the transferee, consistent with procedures estab21 lished by the Secretary. 

22 ‘‘(3) LIMITATIONS ON TRANSFERS WITH RE23 SPECT TO FISCAL YEAR.— 

24 ‘‘(A) IN GENERAL.—Any transfer under 

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1 tion of the fiscal year during which the transfer 

2 is made. 

3 ‘‘(B) FOLLOWING FISCAL YEAR.—No 

4 transfer under this subsection shall affect the 

5 share of the quota allocated to the transferor or 

6 transferee for the following fiscal year. 

7 ‘‘(d) EFFECTIVE PERIOD.—This section shall be ef8 fective for fiscal years only through the 2023 crop year 

9 for sugar.’’. 

10 (2) CONTINUED APPLICATION OF PRIOR LAW

11 TO CERTAIN SUGAR CROPS.—Part VII of subtitle B 

12 of title III of the Agricultural Adjustment Act of 

13 1938 (7 U.S.C. 1359aa et seq.), as in effect on the 

14 day before the date specified in paragraph (1), shall 

15 continue to apply to the 2019 and 2020 crop years 

16 for sugar. 

17 SEC. 5. SENSE OF CONGRESS. 

18 It is the sense of Congress that the President should 

19 establish, as major goals of the United States trade policy, 

20 the following: 

21 (1) The elimination of all direct and indirect 

22 subsidies benefitting the production or export of 

23 sugar by any government. 

24 (2) The enforcement, negotiation, and imple25 mentation of trade agreements that provide commerVerDate Sep 11 2014 23:19 Nov 08, 2017 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4265.IH H4265

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1 cially meaningful sugar trade liberalization globally 

2 and enhance trade opportunities for United States 

3 agriculture and all sectors of the United States econ4 omy. 

Æ 


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