H. R. 2419—38 
(i) the quantity of the grazed acreage on the farm 
with respect to which the producer elects to forgo har-
vesting of wheat, barley, or oats; and 
(ii) the payment yield in effect for the calculation 
of direct payments under subtitle A with respect to 
that loan commodity on the farm or, in the case of 
a farm without a payment yield for that loan com-
modity, an appropriate yield established by the Sec-
retary in a manner consistent with section 1102 of 
the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 7912). 
(2) GRAZING OF TRITICALE ACREAGE.—The amount of a pay-
ment made under this section to a producer on a farm described 
in subsection (a)(2) shall be equal to the amount determined 
by multiplying— 
(A) the loan deficiency payment rate determined under 
section 1205(c) in effect for wheat, as of the date of the 
agreement, for the county in which the farm is located; 
by 
(B) the payment quantity determined by multiplying— 
(i) the quantity of the grazed acreage on the farm 
with respect to which the producer elects to forgo har-
vesting of triticale; and 
(ii) the payment yield in effect for the calculation 
of direct payments under subtitle A with respect to 
wheat on the farm or, in the case of a farm without 
a payment yield for wheat, an appropriate yield estab-
lished by the Secretary in a manner consistent with 
section 1102 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 7912). 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(1) TIME AND MANNER.—A payment under this section shall 
be made at the same time and in the same manner as loan 
deficiency payments are made under section 1205. 
(2) AVAILABILITY.— 
(A) IN
GENERAL.—The Secretary shall establish an 
availability period for the payments authorized by this 
section. 
(B) CERTAIN
COMMODITIES.—In the case of wheat, 
barley, and oats, the availability period shall be consistent 
with the availability period for the commodity established 
by the Secretary for marketing assistance loans authorized 
by this subtitle. 
(d) PROHIBITION
ON CROP INSURANCE INDEMNITY
OR NON-
INSURED CROP ASSISTANCE.—A 2008 through 2012 crop of wheat, 
barley, oats, or triticale planted on acreage that a producer elects, 
in the agreement required by subsection (a), to use for the grazing 
of livestock in lieu of any other harvesting of the crop shall not 
be eligible for an indemnity under a policy or plan of insurance 
authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) or noninsured crop assistance under section 196 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
COTTON. 
(a) SPECIAL IMPORT QUOTA.—
H. R. 2419—39 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this sub-
section, the term ‘‘special import quota’’ means a quantity of 
imports that is not subject to the over-quota tariff rate of 
a tariff-rate quota. 
(2) ESTABLISHMENT.— 
(A) IN GENERAL.—The President shall carry out an 
import quota program during the period beginning on the 
date of enactment of this Act through July 31, 2013, as 
provided in this subsection. 
(B) PROGRAM REQUIREMENTS.—Whenever the Secretary 
determines and announces that for any consecutive 4-week 
period, the Friday through Thursday average price 
quotation for the lowest-priced United States growth, as 
quoted for Middling (M) 13⁄32-inch cotton, delivered to a 
definable and significant international market, as deter-
mined by the Secretary, exceeds the prevailing world 
market price, there shall immediately be in effect a special 
import quota. 
(3) QUANTITY.—The quota shall be equal to 1 week’s 
consumption of cotton by domestic mills at the seasonally 
adjusted average rate of the most recent 3 months for which 
data are available. 
(4) APPLICATION.—The quota shall apply to upland cotton 
purchased not later than 90 days after the date of the Sec-
retary’s announcement under paragraph (2) and entered into 
the United States not later than 180 days after that date. 
(5) OVERLAP.—A special quota period may be established 
that overlaps any existing quota period if required by paragraph 
(2), except that a special quota period may not be established 
under this subsection if a quota period has been established 
under subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under 
a special import quota shall be considered to be an in-quota 
quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Preference Act 
(19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
2463(d)); and 
(D) General Note 3(a)(iv) to the Harmonized Tariff 
Schedule. 
(7) LIMITATION.—The quantity of cotton entered into the 
United States during any marketing year under the special 
import quota established under this subsection may not exceed 
the equivalent of 10 week’s consumption of upland cotton by 
domestic mills at the seasonally adjusted average rate of the 
3 months immediately preceding the first special import quota 
established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND COTTON.— 
(1) DEFINITIONS.—In this subsection: 
(A) SUPPLY.—The term ‘‘supply’’ means, using the 
latest official data of the Bureau of the Census, the Depart-
ment of Agriculture, and the Department of the Treasury— 
(i) the carry-over of upland cotton at the beginning 
of the marketing year (adjusted to 480-pound bales) 
in which the quota is established;
H. R. 2419—40 
(ii) production of the current crop; and 
(iii) imports to the latest date available during 
the marketing year. 
(B) DEMAND.—The term ‘‘demand’’ means— 
(i) the average seasonally adjusted annual rate 
of domestic mill consumption of cotton during the most 
recent 3 months for which data are available; and 
(ii) the larger of— 
(I) average exports of upland cotton during 
the preceding 6 marketing years; or 
(II) cumulative exports of upland cotton plus 
outstanding export sales for the marketing year 
in which the quota is established. 
(C) LIMITED GLOBAL IMPORT QUOTA.—The term ‘‘limited 
global import quota’’ means a quantity of imports that 
is not subject to the over-quota tariff rate of a tariff-rate 
quota. 
(2) PROGRAM.—The President shall carry out an import 
quota program that provides that whenever the Secretary deter-
mines and announces that the average price of the base quality 
of upland cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 percent of 
the average price of the quality of cotton in the markets for 
the preceding 36 months, notwithstanding any other provision 
of law, there shall immediately be in effect a limited global 
import quota subject to the following conditions: 
(A) QUANTITY.—The quantity of the quota shall be 
equal to 21 days of domestic mill consumption of upland 
cotton at the seasonally adjusted average rate of the most 
recent 3 months for which data are available or as esti-
mated by the Secretary. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota has been 
established under this subsection during the preceding 12 
months, the quantity of the quota next established under 
this subsection shall be the smaller of 21 days of domestic 
mill consumption calculated under subparagraph (A) or 
the quantity required to increase the supply to 130 percent 
of the demand. 
(C) PREFERENTIAL TARIFF TREATMENT.—The quantity 
under a limited global import quota shall be considered 
to be an in-quota quantity for purposes of— 
(i) section 213(d) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(d)); 
(ii) section 204 of the Andean Trade Preference 
Act (19 U.S.C. 3203); 
(iii) section 503(d) of the Trade Act of 1974 (19 
U.S.C. 2463(d)); and 
(iv) General Note 3(a)(iv) to the Harmonized Tariff 
Schedule. 
(D) QUOTA ENTRY PERIOD.—When a quota is estab-
lished under this subsection, cotton may be entered under 
the quota during the 90-day period beginning on the date 
the quota is established by the Secretary. 
(3) NO OVERLAP.—Notwithstanding paragraph (2), a quota 
period may not be established that overlaps an existing quota 
period or a special quota period established under subsection 
(a).
H. R. 2419—41 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS OF UPLAND 
COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), the Secretary 
shall, on a monthly basis, provide economic adjustment assist-
ance to domestic users of upland cotton in the form of payments 
for all documented use of that upland cotton during the previous 
monthly period regardless of the origin of the upland cotton. 
(2) VALUE OF ASSISTANCE.— 
(A) BEGINNING PERIOD.—During the period beginning 
on August 1, 2008, and ending on July 31, 2012, the value 
of the assistance provided under paragraph (1) shall be 
4 cents per pound. 
(B) SUBSEQUENT
PERIOD.—Effective beginning on 
August 1, 2012, the value of the assistance provided under 
paragraph (1) shall be 3 cents per pound. 
(3) ALLOWABLE
PURPOSES.—Economic adjustment assist-
ance under this subsection shall be made available only to 
domestic users of upland cotton that certify that the assistance 
shall be used only to acquire, construct, install, modernize, 
develop, convert, or expand land, plant, buildings, equipment, 
facilities, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may conduct such 
review or audit of the records of a domestic user under this 
subsection as the Secretary determines necessary to carry out 
this subsection. 
(5) IMPROPER USE OF ASSISTANCE.—If the Secretary deter-
mines, after a review or audit of the records of the domestic 
user, that economic adjustment assistance under this subsection 
was not used for the purposes specified in paragraph (3), the 
domestic user shall be— 
(A) liable to repay the assistance to the Secretary, 
plus interest, as determined by the Secretary; and 
(B) ineligible to receive assistance under this sub-
section for a period of 1 year following the determination 
of the Secretary. 
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 
STAPLE COTTON. 
(a) COMPETITIVENESS PROGRAM.—Notwithstanding any other 
provision of law, during the period beginning on the date of enact-
ment of this Act through July 31, 2013, the Secretary shall carry 
out a program— 
(1) to maintain and expand the domestic use of extra long 
staple cotton produced in the United States; 
(2) to increase exports of extra long staple cotton produced 
in the United States; and 
(3) to ensure that extra long staple cotton produced in 
the United States remains competitive in world markets. 
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under the program, 
the Secretary shall make payments available under this section 
whenever— 
(1) for a consecutive 4-week period, the world market price 
for the lowest priced competing growth of extra long staple 
cotton (adjusted to United States quality and location and 
for other factors affecting the competitiveness of such cotton), 
as determined by the Secretary, is below the prevailing United
H. R. 2419—42 
States price for a competing growth of extra long staple cotton; 
and 
(2) the lowest priced competing growth of extra long staple 
cotton (adjusted to United States quality and location and 
for other factors affecting the competitiveness of such cotton), 
as determined by the Secretary, is less than 134 percent of 
the loan rate for extra long staple cotton. 
(c) ELIGIBLE RECIPIENTS.—The Secretary shall make payments 
available under this section to domestic users of extra long staple 
cotton produced in the United States and exporters of extra long 
staple cotton produced in the United States that enter into an 
agreement with the Commodity Credit Corporation to participate 
in the program under this section. 
(d) PAYMENT AMOUNT.—Payments under this section shall be 
based on the amount of the difference in the prices referred to 
in subsection (b)(1) during the fourth week of the consecutive 4- 
week period multiplied by the amount of documented purchases 
by domestic users and sales for export by exporters made in the 
week following such a consecutive 4-week period. 
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 
FEED GRAINS AND SEED COTTON. 
(a) HIGH MOISTURE FEED GRAINS.— 
(1) DEFINITION
OF
HIGH
MOISTURE
STATE.—In this sub-
section, the term ‘‘high moisture state’’ means corn or grain 
sorghum having a moisture content in excess of Commodity 
Credit Corporation standards for marketing assistance loans 
made by the Secretary under section 1201. 
(2) RECOURSE
LOANS
AVAILABLE.—For each of the 2008 
through 2012 crops of corn and grain sorghum, the Secretary 
shall make available recourse loans, as determined by the 
Secretary, to producers on a farm that— 
(A) normally harvest all or a portion of their crop 
of corn or grain sorghum in a high moisture state; 
(B) present— 
(i) certified scale tickets from an inspected, cer-
tified commercial scale, including a licensed warehouse, 
feedlot, feed mill, distillery, or other similar entity 
approved by the Secretary, pursuant to regulations 
issued by the Secretary; or 
(ii) field or other physical measurements of the 
standing or stored crop in regions of the United States, 
as determined by the Secretary, that do not have cer-
tified commercial scales from which certified scale 
tickets may be obtained within reasonable proximity 
of harvest operation; 
(C) certify that they were the owners of the feed grain 
at the time of delivery to, and that the quantity to be 
placed under loan under this subsection was in fact har-
vested on the farm and delivered to, a feedlot, feed mill, 
or commercial or on-farm high-moisture storage facility, 
or to a facility maintained by the users of corn and grain 
sorghum in a high moisture state; and 
(D) comply with deadlines established by the Secretary 
for harvesting the corn or grain sorghum and submit 
applications for loans under this subsection within dead-
lines established by the Secretary.
H. R. 2419—43 
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—A loan under 
this subsection shall be made on a quantity of corn or grain 
sorghum of the same crop acquired by the producer equivalent 
to a quantity determined by multiplying— 
(A) the acreage of the corn or grain sorghum in a 
high moisture state harvested on the producer’s farm; by 
(B) the lower of the farm program payment yield used 
to make counter-cyclical payments under subtitle A or the 
actual yield on a field, as determined by the Secretary, 
that is similar to the field from which the corn or grain 
sorghum was obtained. 
(b) RECOURSE LOANS AVAILABLE FOR SEED COTTON.—For each 
of the 2008 through 2012 crops of upland cotton and extra long 
staple cotton, the Secretary shall make available recourse seed 
cotton loans, as determined by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse loan made 
under this section shall be at the loan rate established for the 
commodity by the Secretary, plus interest (determined in accordance 
with section 163 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7283)). 
SEC. 1210. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—Subject to subsection (e), the Sec-
retary may make appropriate adjustments in the loan rates for 
any loan commodity (other than cotton) for differences in grade, 
type, quality, location, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments under sub-
section (a) shall, to the maximum extent practicable, be made 
in such a manner that the average loan level for the commodity 
will, on the basis of the anticipated incidence of the factors, be 
equal to the level of support determined in accordance with this 
subtitle and subtitles B through E. 
(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—The Secretary may establish loan rates 
for a crop for producers in individual counties in a manner 
that results in the lowest loan rate being 95 percent of the 
national average loan rate, if those loan rates do not result 
in an increase in outlays. 
(2) PROHIBITION.—Adjustments under this subsection shall 
not result in an increase in the national average loan rate 
for any year. 
(d) ADJUSTMENT IN LOAN RATE FOR COTTON.— 
(1) IN
GENERAL.—The Secretary may make appropriate 
adjustments in the loan rate for cotton for differences in quality 
factors. 
(2) REVISIONS
TO
QUALITY
ADJUSTMENTS
FOR
UPLAND 
COTTON.— 
(A) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary shall imple-
ment revisions in the administration of the marketing 
assistance loan program for upland cotton to more 
accurately and efficiently reflect market values for upland 
cotton. 
(B) MANDATORY REVISIONS.—Revisions under subpara-
graph (A) shall include— 
(i) the elimination of warehouse location differen-
tials;
H. R. 2419—44 
(ii) the establishment of differentials for the var-
ious quality factors and staple lengths of cotton based 
on a 3-year, weighted moving average of the weighted 
designated spot market regions, as determined by 
regional production; 
(iii) the elimination of any artificial split in the 
premium or discount between upland cotton with a 
32 or 33 staple length due to micronaire; and 
(iv) a mechanism to ensure that no premium or 
discount is established that exceeds the premium or 
discount associated with a leaf grade that is 1 better 
than the applicable color grade. 
(C) 
DISCRETIONARY
REVISIONS.—Revisions 
under 
subparagraph (A) may include— 
(i) the use of non-spot market price data, in addi-
tion to spot market price data, that would enhance 
the accuracy of the price information used in deter-
mining quality adjustments under this subsection; 
(ii) adjustments in the premiums or discounts asso-
ciated with upland cotton with a staple length of 33 
or above due to micronaire with the goal of eliminating 
any unnecessary artificial splits in the calculations 
of the premiums or discounts; and 
(iii) such other adjustments as the Secretary deter-
mines appropriate, after consultations conducted in 
accordance with paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR
TO
REVISION.—In making adjustments to 
the loan rate for cotton (including any review of the adjust-
ments) as provided in this subsection, the Secretary shall 
consult with representatives of the United States cotton 
industry. 
(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE 
ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to consultations under this subsection. 
(4) REVIEW OF ADJUSTMENTS.—The Secretary may review 
the operation of the upland cotton quality adjustments imple-
mented pursuant to this subsection and may make further 
revisions to the administration of the loan program for upland 
cotton, by— 
(A) revoking or revising any actions taken under para-
graph (2)(B); or 
(B) revoking or revising any actions taken or author-
ized to be taken under paragraph (2)(C). 
(e) RICE.—The Secretary shall not make adjustments in the 
loan rates for long grain rice and medium grain rice, except for 
differences in grade and quality (including milling yields). 
Subtitle C—Peanuts 
SEC. 1301. DEFINITIONS. 
In this subtitle: 
(1) BASE ACRES FOR PEANUTS.— 
(A) IN GENERAL.—The term ‘‘base acres for peanuts’’ 
means the number of acres assigned to a farm pursuant 
to section 1302 of the Farm Security and Rural Investment
H. R. 2419—45 
Act of 2002 (7 U.S.C. 7952), as in effect on September 
30, 2007, subject to any adjustment under section 1302 
of this Act. 
(B) COVERED COMMODITIES.—The term ‘‘base acres’’, 
with respect to a covered commodity, has the meaning 
given the term in section 1101. 
(2) COUNTER-CYCLICAL
PAYMENT.—The term ‘‘counter- 
cyclical payment’’ means a payment made to producers on 
a farm under section 1304. 
(3) DIRECT PAYMENT.—The term ‘‘direct payment’’ means 
a direct payment made to producers on a farm under section 
1303. 
(4) EFFECTIVE
PRICE.—The term ‘‘effective price’’ means 
the price calculated by the Secretary under section 1304 for 
peanuts to determine whether counter-cyclical payments are 
required to be made under that section for a crop year. 
(5) PAYMENT ACRES.—The term ‘‘payment acres’’ means, 
in the case of direct payments and counter-cyclical payments— 
(A) except as provided in subparagraph (B), 85 percent 
of the base acres of peanuts on a farm on which direct 
payments or counter-cyclical payments are made; and 
(B) in the case of direct payments for each of the 
2009 through 2011 crop years, 83.3 percent of the base 
acres for peanuts on a farm on which direct payments 
are made. 
(6) PAYMENT YIELD.—The term ‘‘payment yield’’ means the 
yield established for direct payments and the yield established 
for counter-cyclical payments under section 1302 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7952), 
as in effect on September 30, 2007, for a farm for peanuts. 
(7) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ means an 
owner, operator, landlord, tenant, or sharecropper that 
shares in the risk of producing a crop on a farm and 
is entitled to share in the crop available for marketing 
from the farm, or would have shared had the crop been 
produced. 
(B) HYBRID SEED.—In determining whether a grower 
of hybrid seed is a producer, the Secretary shall— 
(i) not take into consideration the existence of a 
hybrid seed contract; and 
(ii) ensure that program requirements do not 
adversely affect the ability of the grower to receive 
a payment under this subtitle. 
(8) STATE.—The term ‘‘State’’ means— 
(A) a State; 
(B) the District of Columbia; 
(C) the Commonwealth of Puerto Rico; and 
(D) any other territory or possession of the United 
States. 
(9) TARGET PRICE.—The term ‘‘target price’’ means the price 
per ton of peanuts used to determine the payment rate for 
counter-cyclical payments. 
(10) UNITED STATES.—The term ‘‘United States’’, when used 
in a geographical sense, means all of the States.
H. R. 2419—46 
SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM. 
(a) ADJUSTMENT OF BASE ACREAGE FOR PEANUTS.— 
(1) IN GENERAL.—The Secretary shall provide for an adjust-
ment, as appropriate, in the base acres for peanuts for a farm 
whenever any of the following circumstances occur: 
(A) A conservation reserve contract entered into under 
section 1231 of the Food Security Act of 1985 (16 U.S.C. 
3831) with respect to the farm expires or is voluntarily 
terminated, or was terminated or expired during the period 
beginning on October 1, 2007, and ending on the date 
of enactment of this Act. 
(B) Cropland is released from coverage under a con-
servation reserve contract by the Secretary, or was released 
during the period beginning on October 1, 2007, and ending 
on the date of enactment of this Act. 
(C) The producer has eligible pulse crop acreage, which 
shall be determined in the same manner as eligible oilseed 
acreage under section 1101(a)(2) of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acreage as the 
result of the Secretary designating additional oilseeds, 
which shall be determined in the same manner as eligible 
oilseed acreage under section 1101(a)(2) of the Farm Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(2) SPECIAL
CONSERVATION
RESERVE
ACREAGE
PAYMENT 
RULES.—For the crop year in which a base acres for peanuts 
adjustment under subparagraph (A) or (B) of paragraph (1) 
is first made, the owner of the farm shall elect to receive 
either direct payments and counter-cyclical payments with 
respect to the acreage added to the farm under this subsection 
or a prorated payment under the conservation reserve contract, 
but not both. 
(b) PREVENTION OF EXCESS BASE ACRES FOR PEANUTS.— 
(1) REQUIRED REDUCTION.—If the sum of the base acres 
for peanuts for a farm, together with the acreage described 
in paragraph (2), exceeds the actual cropland acreage of the 
farm, the Secretary shall reduce the base acres for peanuts 
for the farm or the base acres for 1 or more covered commodities 
for the farm so that the sum of the base acres for peanuts 
and acreage described in paragraph (2) does not exceed the 
actual cropland acreage of the farm. 
(2) OTHER ACREAGE.—For purposes of paragraph (1), the 
Secretary shall include the following: 
(A) Any base acres for the farm for a covered com-
modity. 
(B) Any acreage on the farm enrolled in the conserva-
tion reserve program or wetlands reserve program under 
chapter 1 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3830 et seq.). 
(C) Any other acreage on the farm enrolled in a Federal 
conservation program for which payments are made in 
exchange for not producing an agricultural commodity on 
the acreage. 
(D) Any eligible pulse crop acreage, which shall be 
determined in the same manner as eligible oilseed acreage 
under section 1101(a)(2) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7911(a)(2)).