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SEC. 1403. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS.—Subject to subsection (b),
any commodity or crop may be planted on base acres on
a farm for which the producers on a farm elect to receive
average crop revenue payments (referred to in this section
as ‘‘base acres’’).
(b) LIMITATIONS
REGARDING
CERTAIN
COMMOD-
ITIES.—
(1) GENERAL LIMITATION.—The planting of an
agricultural commodity specified in paragraph (3)
shall be prohibited on base acres unless the com-
modity, if planted, is destroyed before harvest.
(2) 
TREATMENT
OF
TREES
AND
OTHER
PERENNIALS.—The planting of an agricultural com-
modity specified in paragraph (3) that is produced
on a tree or other perennial plant shall be prohibited
on base acres.
(3) COVERED
AGRICULTURAL
COMMODITIES.—
Paragraphs (1) and (2) apply to the following agri-
cultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and
pulse crops).
(C) Wild rice.
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(c) EXCEPTIONS.—Paragraphs (1) and (2) of sub-
section (b) shall not limit the planting of an agricultural
commodity specified in paragraph (3) of that subsection—
(1) in any region in which there is a history of
double-cropping of covered commodities with agricul-
tural commodities specified in subsection (b)(3), as
determined by the Secretary, in which case the dou-
ble-cropping shall be permitted;
(2) on a farm that the Secretary determines has
a history of planting agricultural commodities speci-
fied in subsection (b)(3) on base acres, except that av-
erage crop revenue payments shall be reduced by an
acre for each acre planted to such an agricultural
commodity; or
(3) by the producers on a farm that the Sec-
retary determines has an established planting history
of a specific agricultural commodity specified in sub-
section (b)(3), except that—
(A) the quantity planted may not exceed the
average annual planting history of such agricul-
tural commodity by the producers on the farm in
the 1991 through 1995 or 1998 through 2001
crop years (excluding any crop year in which no
plantings were made), as determined by the Sec-
retary; and
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(B) average crop revenue payments shall be
reduced by an acre for each acre planted to such
agricultural commodity.
(d) PLANTING TRANSFERABILITY PILOT PROJECT.—
Producers on a farm that elect to receive average crop rev-
enue payments shall be eligible to participate in the pilot
program established under section 1106(d) under the same
terms and conditions as producers that receive direct pay-
ments and counter-cyclical payments.
(e) PRODUCTION OF FRUITS OR VEGETABLES FOR
PROCESSING.—
(1) IN
GENERAL.—Subject to paragraphs (2)
through (4), effective beginning with the 2010 crop
years, producers on a farm that elect to receive aver-
age crop revenue payments, with the consent of the
owner of and any other producers on the farm, may
reduce the base acres for a covered commodity for the
farm if the reduced acres are used for the planting
and production of fruits or vegetables for processing.
(2) REVERSION TO BASE ACRES FOR COVERED
COMMODITY.—Any reduced acres on a farm devoted to
the planting and production of fruits or vegetables
during a crop year under paragraph (1) shall be in-
cluded in base acres for the covered commodity for the
subsequent crop year, unless the producers on the
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farm make the election described in paragraph (1) for
the subsequent crop year.
(3) RECALCULATION OF BASE ACRES.—
(A) IN GENERAL.—Subject to subparagraph
(B), if the Secretary recalculates base acres for
a farm, the planting and production of fruits or
vegetables for processing under paragraph (1)
shall be considered to be the same as the plant-
ing, prevented planting, or production of a cov-
ered commodity.
(B) AUTHORITY.—Nothing in this sub-
section provides authority for the Secretary to
recalculate base acres for a farm covered by this
subsection other than as provided in this sub-
section.
(4) LIMITATIONS.—
(A) IN GENERAL.—This subsection applies
in land located in each of the States of Illinois,
Indiana, Iowa, Michigan, Minnesota, Ohio, and
Wisconsin.
(B) ACREAGE LIMIT.—The total number of
base acres that may be reduced in any State
under this subsection shall not exceed 10,000.
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Subtitle C—Sugar
SEC. 1501. SUGAR PROGRAM.
Section 156 of the Federal Agriculture Improvement
and Reform Act of 1996 (7 U.S.C. 7272) is amended to
read as follows:
‘‘SEC. 156. SUGAR PROGRAM.
‘‘(a) SUGARCANE.—The Secretary shall make loans
available to processors of domestically grown sugarcane at
a rate equal to—
‘‘(1) 18.00 cents per pound for raw cane sugar
for the 2008 crop year;
‘‘(2) 18.25 cents per pound for raw cane sugar
for the 2009 crop year;
‘‘(3) 18.50 cents per pound for raw cane sugar
for the 2010 crop year;
‘‘(4) 18.75 cents per pound for raw cane sugar
for the 2011 crop year; and
‘‘(5) 19.00 cents per pound for raw cane sugar
for the 2012 crop year.
‘‘(b) SUGAR BEETS.—The Secretary shall make loans
available to processors of domestically grown sugar beets at
a rate per pound for refined beet sugar that is equal to
128.5 percent of the loan rate per pound of raw cane sugar
for the applicable crop year under subsection (a).
‘‘(c) TERM OF LOANS.—
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‘‘(1) IN GENERAL.—A loan under this section
during any fiscal year shall be made available not
earlier than the beginning of the fiscal year and shall
mature at the earlier of—
‘‘(A) the end of the 9-month period begin-
ning on the first day of the first month after the
month in which the loan is made; or
‘‘(B) the end of the fiscal year in which the
loan is made.
‘‘(2) SUPPLEMENTAL LOANS.—In the case of a
loan made under this section in the last 3 months of
a fiscal year, the processor may repledge the sugar as
collateral for a second loan in the subsequent fiscal
year, except that the second loan shall—
‘‘(A) be made at the loan rate in effect at
the time the first loan was made; and
‘‘(B) mature in 9 months less the quantity
of time that the first loan was in effect.
‘‘(d) LOAN TYPE; PROCESSOR ASSURANCES.—
‘‘(1) NONRECOURSE LOANS.—The Secretary shall
carry out this section through the use of nonrecourse
loans.
‘‘(2) PROCESSOR ASSURANCES.—
‘‘(A) IN GENERAL.—The Secretary shall ob-
tain from each processor that receives a loan
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under this section such assurances as the Sec-
retary considers adequate to ensure that the
processor will provide payments to producers
that are proportional to the value of the loan re-
ceived by the processor for the sugar beets and
sugarcane delivered by producers to the proc-
essor.
‘‘(B) MINIMUM PAYMENTS.—
‘‘(i) IN
GENERAL.—Subject to clause
(ii), the Secretary may establish appro-
priate minimum payments for purposes of
this paragraph.
‘‘(ii) LIMITATION.—In the case of
sugar beets, the minimum payment estab-
lished under clause (i) shall not exceed the
rate of payment provided for under the ap-
plicable contract between a sugar beet pro-
ducer and a sugar beet processor.
‘‘(3) ADMINISTRATION.—The Secretary may not
impose or enforce any prenotification requirement, or
similar administrative requirement not otherwise in
effect on May 13, 2002, that has the effect of pre-
venting a processor from electing to forfeit the loan
collateral (of an acceptable grade and quality) on the
maturity of the loan.
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‘‘(e) LOANS FOR IN-PROCESS SUGAR.—
‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND
SYRUPS.—In this subsection, the term ‘in-process sug-
ars and syrups’ does not include raw sugar, liquid
sugar, invert sugar, invert syrup, or other finished
product that is otherwise eligible for a loan under
subsection (a) or (b).
‘‘(2) AVAILABILITY.—The Secretary shall make
nonrecourse loans available to processors of a crop of
domestically grown sugarcane and sugar beets for in-
process sugars and syrups derived from the crop.
‘‘(3) LOAN RATE.—The loan rate shall be equal
to 80 percent of the loan rate applicable to raw cane
sugar or refined beet sugar, as determined by the Sec-
retary on the basis of the source material for the in-
process sugars and syrups.
‘‘(4) FURTHER PROCESSING ON FORFEITURE.—
‘‘(A) IN GENERAL.—As a condition of the
forfeiture of in-process sugars and syrups serving
as collateral for a loan under paragraph (2), the
processor shall, within such reasonable time pe-
riod as the Secretary may prescribe and at no
cost to the Commodity Credit Corporation, con-
vert the in-process sugars and syrups into raw
cane sugar or refined beet sugar of acceptable
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grade and quality for sugars eligible for loans
under subsection (a) or (b).
‘‘(B) TRANSFER
TO
CORPORATION.—Once
the in-process sugars and syrups are fully proc-
essed into raw cane sugar or refined beet sugar,
the processor shall transfer the sugar to the Com-
modity Credit Corporation.
‘‘(C) PAYMENT TO PROCESSOR.—On trans-
fer of the sugar, the Secretary shall make a pay-
ment to the processor in an amount equal to the
amount obtained by multiplying—
‘‘(i) the difference between—
‘‘(I) the loan rate for raw cane
sugar or refined beet sugar, as appro-
priate; and
‘‘(II) the loan rate the processor
received under paragraph (3); by
‘‘(ii) the quantity of sugar transferred
to the Secretary.
‘‘(5) LOAN CONVERSION.—If the processor does
not forfeit the collateral as described in paragraph
(4), but instead further processes the in-process sugars
and syrups into raw cane sugar or refined beet sugar
and repays the loan on the in-process sugars and syr-
ups, the processor may obtain a loan under subsection
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(a) or (b) for the raw cane sugar or refined beet
sugar, as appropriate.
‘‘(6) TERM OF LOAN.—The term of a loan made
under this subsection for a quantity of in-process sug-
ars and syrups, when combined with the term of a
loan made with respect to the raw cane sugar or re-
fined beet sugar derived from the in-process sugars
and syrups, may not exceed 9 months, consistent with
subsection (c).
‘‘(f) FEEDSTOCK FLEXIBILITY PROGRAM
FOR BIO-
ENERGY PRODUCERS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) BIOENERGY.—The term ‘bioenergy’
means fuel grade ethanol and other biofuel.
‘‘(B) BIOENERGY
PRODUCER.—The term
‘bioenergy producer’ means a producer of bio-
energy that uses an eligible commodity to
produce bioenergy under this subsection.
‘‘(C) ELIGIBLE COMMODITY.—The term ‘eli-
gible commodity’ means a form of raw or refined
sugar or in-process sugar that is eligible—
‘‘(i) to be marketed in the United
States for human consumption; or
‘‘(ii) to be used for the extraction of
sugar for human consumption.
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‘‘(D) ELIGIBLE ENTITY.—The term ‘eligible
entity’ means an entity located in the United
States that markets an eligible commodity in the
United States.
‘‘(2) FEEDSTOCK FLEXIBILITY PROGRAM.—
‘‘(A) PURCHASES AND SALES.—For each of
fiscal years 2008 through 2012, the Secretary
shall purchase eligible commodities from eligible
entities and sell such commodities to bioenergy
producers for the purpose of producing bioenergy
in a manner that ensures that this section is op-
erated at no cost to the Federal Government and
avoids forfeitures to the Commodity Credit Cor-
poration.
‘‘(B) COMPETITIVE PROCEDURES.—In car-
rying out the purchases and sales required under
subparagraph (A), the Secretary shall, to the
maximum extent practicable, use competitive
procedures, including the receiving, offering, and
accepting of bids, when entering into contracts
with eligible entities and bioenergy producers,
provided that the procedures are consistent with
the purposes of subparagraph (A).
‘‘(C) LIMITATION.—The purchase and sale
of eligible commodities under subparagraph (A)
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shall only be made for a fiscal year for which the
purchases and sales are necessary to ensure that
the program under this section is operated at no
cost to the Federal Government by avoiding for-
feitures to the Commodity Credit Corporation.
‘‘(3) NOTICE.—
‘‘(A) IN GENERAL.—As soon as practicable
after the date of enactment of the Food and En-
ergy Security Act of 2007, and each September
1 thereafter through fiscal year 2011, the Sec-
retary shall provide notice to eligible entities and
bioenergy producers of the quantity of eligible
commodities that shall be made available for
purchase and sale for the subsequent fiscal year
under this subsection.
‘‘(B) REESTIMATES.—Not later than the
first day of each of the second through fourth
quarters of each of fiscal years 2008 through
2012, the Secretary shall reestimate the quantity
of eligible commodities determined under sub-
paragraph (A), and provide notice and make
purchases and sales based on the reestimates.
‘‘(4) COMMODITY CREDIT CORPORATION INVEN-
TORY.—To the extent that an eligible commodity is
owned and held in inventory by the Commodity Cred-
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it Corporation (accumulated pursuant to the program
under this section), the Secretary shall sell the eligible
commodity to bioenergy producers under this sub-
section.
‘‘(5) TRANSFER RULE; STORAGE FEES.—
‘‘(A) GENERAL
TRANSFER
RULE.—Except
as provided in subparagraph (C), the Secretary
shall ensure that bioenergy producers that pur-
chase eligible commodities pursuant to this sub-
section take possession of the eligible commodities
not later than 30 calendar days after the date of
the purchase from the Commodity Credit Cor-
poration.
‘‘(B) PAYMENT OF STORAGE FEES PROHIB-
ITED.—
‘‘(i) 
IN
GENERAL.—The 
Secretary
shall, to the maximum extent practicable,
carry out this subsection in a manner that
ensures no storage fees are paid by the Com-
modity Credit Corporation in the adminis-
tration of this subsection.
‘‘(ii) EXCEPTION.—Clause (i) shall not
apply with respect to any commodities
owned and held in inventory by the Com-
modity Credit Corporation (accumulated
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pursuant to the program under this sec-
tion).
‘‘(C) 
OPTION
TO
PREVENT
STORAGE
FEES.—
‘‘(i) IN GENERAL.—The Secretary may
enter into contracts with bioenergy pro-
ducers to sell eligible commodities to the bio-
energy producers prior in time to entering
into contracts with eligible entities to pur-
chase the eligible commodities to be used to
satisfy the contracts entered into with the
bioenergy producers.
‘‘(ii) SPECIAL TRANSFER RULE.—If the
Secretary makes a sale and purchase re-
ferred to in clause (i), the Secretary shall
ensure that the bioenergy producer that pur-
chased eligible commodities takes possession
of the eligible commodities not later than 30
calendar days after the date on which the
Commodity Credit Corporation purchases
the eligible commodities.
‘‘(6) RELATION TO OTHER LAWS.—If sugar that
is subject to a marketing allotment under part VII of
subtitle B of title III of the Agricultural Adjustment
Act of 1938 (7 U.S.C. 1359aa et seq.) is the subject
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of a purchase by the Secretary under paragraph (2),
the sugar shall be considered marketed and shall
count against the allocation of a processor of an allot-
ment under that part, as applicable.
‘‘(7) FUNDING.—The Secretary shall use the
funds, facilities, and authorities of the Commodity
Credit Corporation, including the use of such sums as
are necessary, to carry out this subsection.
‘‘(g) AVOIDING FORFEITURES; CORPORATION INVEN-
TORY DISPOSITION.—
‘‘(1) IN GENERAL.—Subject to subsection (d)(3),
to the maximum extent practicable, the Secretary
shall operate the program established under this sec-
tion at no cost to the Federal Government by avoid-
ing the forfeiture of sugar to the Commodity Credit
Corporation.
‘‘(2) INVENTORY DISPOSITION.—
‘‘(A) IN
GENERAL.—To carry out para-
graph (1), the Commodity Credit Corporation
may accept bids to obtain raw cane sugar or re-
fined beet sugar in the inventory of the Com-
modity Credit Corporation from (or otherwise
make available such commodities, on appro-
priate terms and conditions, to) processors of
sugarcane and processors of sugar beets (acting
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in conjunction with the producers of the sugar-
cane or sugar beets processed by the processors)
in return for the reduction of production of raw
cane sugar or refined beet sugar, as appropriate.
‘‘(B) BIOENERGY FEEDSTOCK.—Sugar beets
or sugarcane planted on acreage diverted from
production to achieve any reduction required
under subparagraph (A) may not be used for
any commercial purpose other than as a bio-
energy feedstock.
‘‘(C) ADDITIONAL AUTHORITY.—The author-
ity provided under this paragraph is in addition
to any authority of the Commodity Credit Cor-
poration under any other law.
‘‘(h) INFORMATION REPORTING.—
‘‘(1) DUTY OF PROCESSORS AND REFINERS TO
REPORT.—A sugarcane processor, cane sugar refiner,
and sugar beet processor shall furnish the Secretary,
on a monthly basis, such information as the Secretary
may require to administer sugar programs, including
the quantity of purchases of sugarcane, sugar beets,
and sugar, and production, importation, distribution,
and stock levels of sugar.
‘‘(2) DUTY OF PRODUCERS TO REPORT.—