void or change the election made under para-
graph (1); 
(B) to the maximum extent practicable, 
shall use all available information and analysis, 
including data mining, to check for anomalies 
in the provision of revenue loss coverage pay-
ments; 
(C) to the maximum extent practicable, 
shall calculate a separate county revenue loss 
coverage trigger for irrigated and nonirrigated 
covered commodities and a separate actual 
county revenue for irrigated and nonirrigated 
covered commodities; 
(D) shall assign a benchmark county yield 
for each planted acre for the crop year for the 
covered commodity on the basis of the yield his-
tory of representative farms in the State, re-
gion, or crop reporting district, as determined 
by the Secretary, if— 
(i) the Secretary cannot establish the 
benchmark county yield for each planted 
acre for a crop year for a covered com-
modity in the county in accordance with 
paragraph (5); or
(ii) the yield determined under para-
graph (5) is an unrepresentative average 
yield for the county (as determined by the 
Secretary); and 
(E) to the maximum extent practicable, 
shall ensure that in order to be eligible for a 
payment under this subsection, the producers 
on the farm suffered an actual loss on the cov-
ered commodity for the crop year for which 
payment is sought. 
(d) ANNUAL REPORT.—The Secretary shall submit 
to the Committee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report annually containing 
an evaluation of the impact of price loss coverage and rev-
enue loss coverage— 
(1) on the planting, production, price, and ex-
port of covered commodities; and 
(2) on the cost of each commodity program. 
(e) CAP
ON TOTAL OBLIGATIONS
AND EXPENDI-
TURES.—Notwithstanding any other provision of this sec-
tion, the total amount of price loss coverage payments and 
revenue loss coverage payments made under this section 
during the period of fiscal years 2014 through 2020 shall 
not exceed $16,956,500,000. Producer agreements re-
quired by section 1108 shall specifically state that pay-
ments made under this section shall be reduced as nec-
essary to comply with this subsection. 
SEC. 1108. PRODUCER AGREEMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on 
a farm may receive payments under this subtitle 
with respect to the farm, the producers shall agree, 
during the crop year for which the payments are 
made and in exchange for the payments— 
(A) to comply with applicable conservation 
requirements under subtitle B of title XII of 
the Food Security Act of 1985 (16 U.S.C. 3811 
et seq.); 
(B) to comply with applicable wetland pro-
tection requirements under subtitle C of title 
XII of that Act (16 U.S.C. 3821 et seq.); and 
(C) to effectively control noxious weeds 
and otherwise maintain the land in accordance 
with sound agricultural practices, as determined 
by the Secretary. 
(2) COMPLIANCE.—The Secretary may issue 
such rules as the Secretary considers necessary to 
ensure producer compliance with the requirements of 
paragraph (1).
(3) MODIFICATION.—At the request of the 
transferee or owner, the Secretary may modify the 
requirements of this subsection if the modifications 
are consistent with the objectives of this subsection, 
as determined by the Secretary. 
(b) TRANSFER
OR
CHANGE
OF
INTEREST
IN 
FARM.— 
(1) TERMINATION.— 
(A) IN GENERAL.—Except as provided in 
paragraph (2), a transfer of (or change in) the 
interest of the producers on a farm for which 
payments under this subtitle are provided shall 
result in the termination of the payments, un-
less the transferee or owner of the acreage 
agrees to assume all obligations under sub-
section (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a 
payment under this subtitle dies, becomes incom-
petent, or is otherwise unable to receive the pay-
ment, the Secretary shall make the payment in ac-
cordance with rules issued by the Secretary.
(c) ACREAGE REPORTS.—As a condition on the re-
ceipt of any benefits under this subtitle or subtitle B, the 
Secretary shall require producers on a farm to submit to 
the Secretary annual acreage reports with respect to all 
cropland on the farm. 
(d) TENANTS AND SHARECROPPERS.—In carrying 
out this subtitle, the Secretary shall provide adequate safe-
guards to protect the interests of tenants and share-
croppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall 
provide for the sharing of payments made under this sub-
title among the producers on a farm on a fair and equi-
table basis. 
Subtitle B—Marketing Loans 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) DEFINITION OF LOAN COMMODITY.—In this sub-
title, the term ‘‘loan commodity’’ means wheat, corn, grain 
sorghum, barley, oats, upland cotton, extra long staple 
cotton, long grain rice, medium grain rice, peanuts, soy-
beans, other oilseeds, graded wool, nongraded wool, mo-
hair, honey, dry peas, lentils, small chickpeas, and large 
chickpeas. 
(b) NONRECOURSE LOANS AVAILABLE.—
(1) IN
GENERAL.—For the 2014 crops and 
each succeeding annual crops of each loan com-
modity, the Secretary shall make available to pro-
ducers on a farm nonrecourse marketing assistance 
loans for loan commodities produced on the farm. 
(2) TERMS AND CONDITIONS.—The marketing 
assistance loans shall be made under terms and con-
ditions that are prescribed by the Secretary and at 
the loan rate established under section 1202 for the 
loan commodity. 
(c) ELIGIBLE PRODUCTION.—The producers on a 
farm shall be eligible for a marketing assistance loan 
under subsection (b) for any quantity of a loan commodity 
produced on the farm. 
(d) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (b), the pro-
ducer shall comply with applicable conservation require-
ments under subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wet-
land protection requirements under subtitle C of title XII 
of that Act (16 U.S.C. 3821 et seq.) during the term of 
the loan. 
(e) SPECIAL RULES FOR PEANUTS.—
(A) IN GENERAL.—To ensure proper stor-
age of peanuts for which a loan is made under 
this section, the Secretary shall pay handling 
and other associated costs (other than storage 
costs) incurred at the time at which the peanuts 
are placed under loan, as determined by the 
Secretary. 
(B) REDEMPTION AND FORFEITURE.—The 
Secretary shall— 
(i) require the repayment of handling 
and other associated costs paid under sub-
paragraph (A) for all peanuts pledged as 
collateral for a loan that is redeemed under 
this section; and 
(ii) pay storage, handling, and other 
associated costs for all peanuts pledged as 
collateral that are forfeited under this sec-
tion. 
(5) MARKETING.—A marketing association or 
cooperative may market peanuts for which a loan is 
made under this section in any manner that con-
forms to consumer needs, including the separation of 
peanuts by type and quality. 
(6) REIMBURSABLE
AGREEMENTS
AND
PAY-
MENT
OF
ADMINISTRATIVE
EXPENSES.—The Sec-
retary may implement any reimbursable agreements 
or provide for the payment of administrative ex-
penses under this subsection only in a manner that 
is consistent with those activities in regard to other 
loan commodities. 
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING 
ASSISTANCE LOANS. 
(a) IN GENERAL.—For purposes of the 2014 crop 
year and each succeeding crop year, the loan rate for a 
marketing assistance loan under section 1201 for a loan 
commodity shall be equal to the following: 
(1) In the case of wheat, $2.94 per bushel. 
(2) In the case of corn, $1.95 per bushel. 
(3) In the case of grain sorghum, $1.95 per 
bushel. 
(4) In the case of barley, $1.95 per bushel. 
(5) In the case of oats, $1.39 per bushel. 
(6) In the case of base quality of upland cotton, 
for the 2014 crop year and each succeeding crop 
year, the simple average of the adjusted prevailing 
world price for the 2 immediately preceding mar-
keting years, as determined by the Secretary and an-
nounced October 1 preceding the next domestic 
plantings, but in no case less than $0.47 per pound 
or more than $0.52 per pound.
(7) In the case of extra long staple cotton, 
$0.7977 per pound. 
(8) In the case of long grain rice, $6.50 per 
hundredweight. 
(9) In the case of medium grain rice, $6.50 per 
hundredweight. 
(10) In the case of soybeans, $5.00 per bushel. 
(11) In the case of other oilseeds, $10.09 per 
hundredweight for each of the following kinds of oil-
seeds: 
(A) Sunflower seed. 
(B) Rapeseed. 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Sec-
retary. 
(12) In the case of dry peas, $5.40 per hun-
dredweight. 
(13) In the case of lentils, $11.28 per hundred-
weight.
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
(15) In the case of large chickpeas, $11.28 per 
hundredweight. 
(16) In the case of graded wool, $1.15 per 
pound. 
(17) In the case of nongraded wool, $0.40 per 
pound. 
(18) In the case of mohair, $4.20 per pound. 
(19) In the case of honey, $0.69 per pound. 
(20) In the case of peanuts, $355 per ton. 
(b) SINGLE COUNTY LOAN RATE FOR OTHER OIL-
SEEDS.—The Secretary shall establish a single loan rate 
in each county for each kind of other oilseeds described 
in subsection (a)(11). 
SEC. 1203. TERM OF LOANS. 
(a) TERM OF LOAN.—In the case of each loan com-
modity, a marketing assistance loan under section 1201 
shall have a term of 9 months beginning on the first day 
of the first month after the month in which the loan is 
made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may 
not extend the term of a marketing assistance loan for 
any loan commodity.
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the 
producers on a farm to repay a marketing assistance loan 
under section 1201 for a loan commodity (other than up-
land cotton, long grain rice, medium grain rice, extra long 
staple cotton, peanuts and confectionery and each other 
kind of sunflower seed (other than oil sunflower seed)) at 
a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); 
(2) a rate (as determined by the Secretary) 
that— 
(A) is calculated based on average market 
prices for the loan commodity during the pre-
ceding 30-day period; and 
(B) will minimize discrepancies in mar-
keting loan benefits across State boundaries 
and across county boundaries; or 
(3) a rate that the Secretary may develop using 
alternative methods for calculating a repayment rate 
for a loan commodity that the Secretary determines 
will— 
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of 
the commodity by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing the commodity; 
(D) allow the commodity produced in the 
United States to be marketed freely and com-
petitively, both domestically and internationally; 
and 
(E) minimize discrepancies in marketing 
loan benefits across State boundaries and 
across county boundaries. 
(b) REPAYMENT RATES FOR UPLAND COTTON, LONG 
GRAIN RICE, AND MEDIUM GRAIN RICE.—The Secretary 
shall permit producers to repay a marketing assistance 
loan under section 1201 for upland cotton, long grain rice, 
and medium grain rice at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the prevailing world market price for the 
commodity, as determined and adjusted by the Sec-
retary in accordance with this section.
(c) REPAYMENT RATES FOR EXTRA LONG STAPLE 
COTTON.—Repayment of a marketing assistance loan for 
extra long staple cotton shall be at the loan rate estab-
lished for the commodity under section 1202, plus interest 
(determined in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7283)). 
(d) PREVAILING WORLD MARKET PRICE.—For pur-
poses of this section and section 1207, the Secretary shall 
prescribe by regulation— 
(1) a formula to determine the prevailing world 
market price for each of upland cotton, long grain 
rice, and medium grain rice; and 
(2) a mechanism by which the Secretary shall 
announce periodically those prevailing world market 
prices. 
(e) ADJUSTMENT OF PREVAILING WORLD MARKET 
PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND 
MEDIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price 
for long grain rice and medium grain rice deter-
mined under subsection (d) shall be adjusted to 
United States quality and location.
(2) COTTON.—The prevailing world market 
price for upland cotton determined under subsection 
(d)— 
(A) shall be adjusted to United States 
quality and location, with the adjustment to in-
clude— 
(i) a reduction equal to any United 
States Premium Factor for upland cotton 
of a quality higher than Middling (M) 
13⁄32-inch; and 
(ii) the average costs to market the 
commodity, including average transpor-
tation costs, as determined by the Sec-
retary; and 
(B) may be further adjusted, during the 
period beginning on the date of enactment of 
this Act and ending on July 31, 2019, if the 
Secretary determines the adjustment is nec-
essary— 
(i) to minimize potential loan forfeit-
ures; 
(ii) to minimize the accumulation of 
stocks of upland cotton by the Federal 
Government;
(iii) to ensure that upland cotton pro-
duced in the United States can be mar-
keted freely and competitively, both domes-
tically and internationally; and 
(iv) to ensure an appropriate transi-
tion between current-crop and forward- 
crop price quotations, except that the Sec-
retary 
may 
use 
forward-crop 
price 
quotations prior to July 31 of a marketing 
year only if— 
(I) there are insufficient current- 
crop price quotations; and 
(II) 
the 
forward-crop 
price 
quotation is the lowest such quotation 
available. 
(3) GUIDELINES
FOR
ADDITIONAL
ADJUST-
MENTS.—In making adjustments under this sub-
section, the Secretary shall establish a mechanism 
for determining and announcing the adjustments in 
order to avoid undue disruption in the United States 
market. 
(f) REPAYMENT RATES FOR CONFECTIONERY AND 
OTHER KINDS OF SUNFLOWER SEEDS.—The Secretary 
shall permit the producers on a farm to repay a marketing 
assistance loan under section 1201 for confectionery and
each other kind of sunflower seed (other than oil sunflower 
seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity 
under section 1202, plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or 
(2) the repayment rate established for oil sun-
flower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.—Effec-
tive for the 2014 crop year and each succeeding crop year, 
the Secretary shall make cotton storage payments avail-
able in the same manner, and at the same rates as the 
Secretary provided storage payments for the 2006 crop 
of cotton, except that the rates shall be reduced by 10 
percent. 
(h) REPAYMENT RATE
FOR PEANUTS.—The Sec-
retary shall permit producers on a farm to repay a mar-
keting assistance loan for peanuts under section 1201 at 
a rate that is the lesser of— 
(1) the loan rate established for peanuts under 
section 1202(a)(20), plus interest (determined in ac-
cordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 
7283)); or
(2) a rate that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of 
peanuts by the Federal Government; 
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and 
(D) allow peanuts produced in the United 
States to be marketed freely and competitively, 
both domestically and internationally. 
(i) AUTHORITY TO TEMPORARILY ADJUST REPAY-
MENT RATES.— 
(1) ADJUSTMENT AUTHORITY.—In the event of 
a severe disruption to marketing, transportation, or 
related infrastructure, the Secretary may modify the 
repayment rate otherwise applicable under this sec-
tion for marketing assistance loans under section 
1201 for a loan commodity. 
(2) DURATION.—Any adjustment made under 
paragraph (1) in the repayment rate for marketing 
assistance loans for a loan commodity shall be in ef-
fect on a short-term and temporary basis, as deter-
mined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.—
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
under section 1201 with respect to a loan com-
modity, agree to forgo obtaining the loan for the 
commodity in return for loan deficiency payments 
under this section. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING
ASSISTANCE
LOANS.— 
Subject to subparagraph (B), nongraded wool 
in the form of unshorn pelts and hay and silage 
derived from a loan commodity are not eligible 
for a marketing assistance loan under section 
1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effec-
tive for the 2014 crop year and each succeeding 
crop year, the Secretary may make loan defi-
ciency payments available under this section to 
producers on a farm that produce unshorn pelts 
or hay and silage derived from a loan com-
modity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection
(a)(2) shall be equal to the product obtained by multi-
plying— 
(1) the payment rate determined under sub-
section (c) for the commodity; by 
(2) the quantity of the commodity produced by 
the eligible producers, excluding any quantity for 
which the producers obtain a marketing assistance 
loan under section 1201. 
(c) PAYMENT RATE.— 
(1) IN GENERAL.—In the case of a loan com-
modity, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for the loan commodity; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(2) UNSHORN PELTS.—In the case of unshorn 
pelts, the payment rate shall be the amount by 
which— 
(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204.
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the 
hay or silage is derived; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION
FOR EXTRA LONG STAPLE COT-
TON.—This section shall not apply with respect to extra 
long staple cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection 
(c) as of the date the producers request the payment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAY-
MENTS FOR GRAZED ACREAGE. 
(a) ELIGIBLE PRODUCERS.— 
(1) IN GENERAL.—Effective for the 2014 crop 
year and each succeeding crop year, in the case of 
a producer that would be eligible for a loan defi-
ciency payment under section 1205 for wheat, bar-
ley, or oats, but that elects to use acreage planted 
to the wheat, barley, or oats for the grazing of live-
stock, the Secretary shall make a payment to the 
producer under this section if the producer enters 
into an agreement with the Secretary to forgo any 
other harvesting of the wheat, barley, or oats on 
that acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effec-
tive for the 2014 crop year and each succeeding crop 
year, with respect to a producer on a farm that uses 
acreage planted to triticale for the grazing of live-
stock, the Secretary shall make a payment to the 
producer under this section if the producer enters 
into an agreement with the Secretary to forgo any 
other harvesting of triticale on that acreage. 
(b) PAYMENT AMOUNT.— 
(1) IN GENERAL.—The amount of a payment 
made under this section to a producer on a farm de-
scribed in subsection (a)(1) shall be equal to the 
amount determined by multiplying— 
(A) the loan deficiency payment rate deter-
mined under section 1205(c) in effect, 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 pro-
ducer elects to forgo harvesting of wheat, 
barley, or oats; and 
(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to that loan com-
modity on the farm; or 
(II) in the case of a farm without a 
payment yield for that loan commodity, an 
appropriate yield established by the Sec-
retary in a manner consistent with section 
1106(c) of this Act. 
(2) GRAZING
OF
TRITICALE
ACREAGE.—The 
amount of a payment made under this section to a 
producer on a farm described in subsection (a)(2) 
shall be equal to the amount determined by multi-
plying— 
(A) the loan deficiency payment rate deter-
mined 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 pro-
ducer elects to forgo harvesting of triticale; 
and 
(ii)(I) the payment yield in effect for 
the calculation of price loss coverage under 
subtitle A with respect to wheat on the 
farm; or 
(II) in the case of a farm without a 
payment yield for wheat, an appropriate 
yield established by the Secretary in a 
manner consistent with section 1106(c) of 
this Act. 
(c) TIME, MANNER, AND AVAILABILITY
OF PAY-
MENT.— 
(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 es-
tablish an availability period for the payments 
authorized by this section.
(B) CERTAIN COMMODITIES.—In the case 
of wheat, barley, and oats, the availability pe-
riod shall be consistent with the availability pe-
riod for the commodity established by the Sec-
retary for marketing assistance loans author-
ized by this subtitle. 
(d) PROHIBITION ON CROP INSURANCE INDEMNITY 
OR NONINSURED CROP ASSISTANCE.—A 2014 crop or 
succeeding annual crop of wheat, barley, oats, or triticale 
planted on acreage that a producer elects, in the agree-
ment 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.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.— 
In this subsection, 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 beginning 
on August 1, 2014, as provided in this sub-
section. 
(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, deliv-
ered to a definable and significant international 
market, as determined by the Secretary, ex-
ceeds the prevailing world market price, there 
shall immediately be in effect a special import 
quota. 
(3) QUANTITY.—The quota shall be equal to 
the consumption during a 1-week period of cotton by 
domestic mills at the seasonally adjusted average 
rate of the most recent 3 months for which official 
data of the Department of Agriculture are available 
or, in the absence of sufficient data, as estimated by 
the Secretary. 
(4) APPLICATION.—The quota shall apply to 
upland cotton purchased not later than 90 days 
after the date of the Secretary’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 sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The 
quantity under a special import quota shall be con-
sidered 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 Pref-
erence 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 Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing 
year under the special import quota established 
under this subsection may not exceed the equivalent 
of 10 weeks’ consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate
of the 3 months immediately preceding the first spe-
cial import quota established in any marketing year. 
(b) LIMITED GLOBAL IMPORT QUOTA FOR UPLAND 
COTTON.— 
(1) DEFINITIONS.—In this subsection: 
(A) 
DEMAND.—The 
term 
‘‘demand’’ 
means— 
(i) the average seasonally adjusted an-
nual rate of domestic mill consumption of 
cotton during the most recent 3 months 
for which official data of the Department 
of Agriculture are available or, in the ab-
sence of sufficient data, as estimated by 
the Secretary; and 
(ii) the larger of— 
(I) average exports of upland cot-
ton 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. 
(B) 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. 
(C) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Department 
of Agriculture— 
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
justed to 480-pound bales) in which the 
quota is established; 
(ii) production of the current crop; 
and 
(iii) imports to the latest date avail-
able during the marketing year. 
(2) PROGRAM.—The President shall carry out 
an import quota program that provides that when-
ever the Secretary determines and announces that 
the average price of the base quality of upland cot-
ton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 per-
cent of the average price of the quality of cotton in 
the markets for the preceding 36 months, notwith-
standing any other provision of law, there shall im-
mediately 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 con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months 
for which official data of the Department of Ag-
riculture are available or, in the absence of suf-
ficient data, as estimated by the Secretary. 
(B) QUANTITY
IF
PRIOR
QUOTA.—If a 
quota has been established under this sub-
section 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 de-
mand. 
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—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);