110TH CONGRESS 
2D SESSION 
H. R. 6124 
AN ACT 
To provide for the continuation of agricultural and other 
programs of the Department of Agriculture through fis-
cal year 2012, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Food, Conservation, and Energy Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definition of Secretary. 
Sec. 3. Explanatory Statement. 
Sec. 4. Repeal of duplicative enactment. 
TITLE I—COMMODITY PROGRAMS 
Sec. 1001. Definitions. 
Subtitle A—Direct Payments and Counter-Cyclical Payments 
Sec. 1101. Base acres. 
Sec. 1102. Payment yields. 
Sec. 1103. Availability of direct payments. 
Sec. 1104. Availability of counter-cyclical payments. 
Sec. 1105. Average crop revenue election program. 
Sec. 1106. Producer agreement required as condition of provision of payments. 
Sec. 1107. Planting flexibility. 
Sec. 1108. Special rule for long grain and medium grain rice. 
Sec. 1109. Period of effectiveness. 
Subtitle B—Marketing Assistance Loans and Loan Deficiency Payments 
Sec. 1201. Availability of nonrecourse marketing assistance loans for loan com-
modities. 
Sec. 1202. Loan rates for nonrecourse marketing assistance loans. 
Sec. 1203. Term of loans. 
Sec. 1204. Repayment of loans. 
Sec. 1205. Loan deficiency payments. 
Sec. 1206. Payments in lieu of loan deficiency payments for grazed acreage. 
Sec. 1207. Special marketing loan provisions for upland cotton. 
Sec. 1208. Special competitive provisions for extra long staple cotton. 
Sec. 1209. Availability of recourse loans for high moisture feed grains and seed 
cotton. 
Sec. 1210. Adjustments of loans. 
Subtitle C—Peanuts 
Sec. 1301. Definitions. 
Sec. 1302. Base acres for peanuts for a farm. 
Sec. 1303. Availability of direct payments for peanuts. 
Sec. 1304. Availability of counter-cyclical payments for peanuts. 
Sec. 1305. Producer agreement required as condition on provision of payments. 
Sec. 1306. Planting flexibility. 
Sec. 1307. Marketing assistance loans and loan deficiency payments for pea-
nuts. 
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Sec. 1308. Adjustments of loans. 
Subtitle D—Sugar 
Sec. 1401. Sugar program. 
Sec. 1402. United States membership in the International Sugar Organization. 
Sec. 1403. Flexible marketing allotments for sugar. 
Sec. 1404. Storage facility loans. 
Sec. 1405. Commodity Credit Corporation storage payments. 
Subtitle E—Dairy 
Sec. 1501. Dairy product price support program. 
Sec. 1502. Dairy forward pricing program. 
Sec. 1503. Dairy export incentive program. 
Sec. 1504. Revision of Federal marketing order amendment procedures. 
Sec. 1505. Dairy indemnity program. 
Sec. 1506. Milk income loss contract program. 
Sec. 1507. Dairy promotion and research program. 
Sec. 1508. Report on Department of Agriculture reporting procedures for non-
fat dry milk. 
Sec. 1509. Federal Milk Marketing Order Review Commission. 
Sec. 1510. Mandatory reporting of dairy commodities. 
Subtitle F—Administration 
Sec. 1601. Administration generally. 
Sec. 1602. Suspension of permanent price support authority. 
Sec. 1603. Payment limitations. 
Sec. 1604. Adjusted gross income limitation. 
Sec. 1605. Availability of quality incentive payments for covered oilseed pro-
ducers. 
Sec. 1606. Personal liability of producers for deficiencies. 
Sec. 1607. Extension of existing administrative authority regarding loans. 
Sec. 1608. Assignment of payments. 
Sec. 1609. Tracking of benefits. 
Sec. 1610. Government publication of cotton price forecasts. 
Sec. 1611. Prevention of deceased individuals receiving payments under farm 
commodity programs. 
Sec. 1612. Hard white wheat development program. 
Sec. 1613. Durum wheat quality program. 
Sec. 1614. Storage facility loans. 
Sec. 1615. State, county, and area committees. 
Sec. 1616. Prohibition on charging certain fees. 
Sec. 1617. Signature authority. 
Sec. 1618. Modernization of Farm Service Agency. 
Sec. 1619. Information gathering. 
Sec. 1620. Leasing of office space. 
Sec. 1621. Geographically disadvantaged farmers and ranchers. 
Sec. 1622. Implementation. 
Sec. 1623. Repeals. 
TITLE II—CONSERVATION 
Subtitle A—Definitions and Highly Erodible Land and Wetland Conservation 
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Sec. 2001. Definitions relating to conservation title of Food Security Act of 
1985. 
Sec. 2002. Review of good faith determinations related to highly erodible land 
conservation. 
Sec. 2003. Review of good faith determinations related to wetland conservation. 
Subtitle B—Conservation Reserve Program 
Sec. 2101. Extension of conservation reserve program. 
Sec. 2102. Land eligible for enrollment in conservation reserve. 
Sec. 2103. Maximum enrollment of acreage in conservation reserve. 
Sec. 2104. Designation of conservation priority areas. 
Sec. 2105. Treatment of multi-year grasses and legumes. 
Sec. 2106. Revised pilot program for enrollment of wetland and buffer acreage 
in conservation reserve. 
Sec. 2107. Additional duty of participants under conservation reserve contracts. 
Sec. 2108. Managed haying, grazing, or other commercial use of forage on en-
rolled land and installation of wind turbines. 
Sec. 2109. Cost sharing payments relating to trees, windbreaks, shelterbelts, 
and wildlife corridors. 
Sec. 2110. Evaluation and acceptance of contract offers, annual rental pay-
ments, and payment limitations. 
Sec. 2111. Conservation reserve program transition incentives for beginning 
farmers or ranchers and socially disadvantaged farmers or 
ranchers. 
Subtitle C—Wetlands Reserve Program 
Sec. 2201. Establishment and purpose of wetlands reserve program. 
Sec. 2202. Maximum enrollment and enrollment methods. 
Sec. 2203. Duration of wetlands reserve program and lands eligible for enroll-
ment. 
Sec. 2204. Terms of wetlands reserve program easements. 
Sec. 2205. Compensation for easements under wetlands reserve program. 
Sec. 2206. Wetlands reserve enhancement program and reserved rights pilot 
program. 
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve program. 
Sec. 2208. Payment limitations under wetlands reserve contracts and agree-
ments. 
Sec. 2209. Repeal of payment limitations exception for State agreements for 
wetlands reserve enhancement. 
Sec. 2210. Report on implications of long-term nature of conservation ease-
ments. 
Subtitle D—Conservation Stewardship Program 
Sec. 2301. Conservation stewardship program. 
Subtitle E—Farmland Protection and Grassland Reserve 
Sec. 2401. Farmland protection program. 
Sec. 2402. Farm viability program. 
Sec. 2403. Grassland reserve program. 
Subtitle F—Environmental Quality Incentives Program 
Sec. 2501. Purposes of environmental quality incentives program. 
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Sec. 2502. Definitions. 
Sec. 2503. Establishment and administration of environmental quality incen-
tives program. 
Sec. 2504. Evaluation of applications. 
Sec. 2505. Duties of producers under environmental quality incentives program. 
Sec. 2506. Environmental quality incentives program plan. 
Sec. 2507. Duties of the Secretary. 
Sec. 2508. Limitation on environmental quality incentives program payments. 
Sec. 2509. Conservation innovation grants and payments. 
Sec. 2510. Agricultural water enhancement program. 
Subtitle G—Other Conservation Programs of the Food Security Act of 1985 
Sec. 2601. Conservation of private grazing land. 
Sec. 2602. Wildlife habitat incentive program. 
Sec. 2603. Grassroots source water protection program. 
Sec. 2604. Great Lakes Basin Program for soil erosion and sediment control. 
Sec. 2605. Chesapeake Bay watershed program. 
Sec. 2606. Voluntary public access and habitat incentive program. 
Subtitle H—Funding and Administration of Conservation Programs 
Sec. 2701. Funding of conservation programs under Food Security Act of 
1985. 
Sec. 2702. Authority to accept contributions to support conservation programs. 
Sec. 2703. Regional equity and flexibility. 
Sec. 2704. Assistance to certain farmers and ranchers to improve their access 
to conservation programs. 
Sec. 2705. Report regarding enrollments and assistance under conservation 
programs. 
Sec. 2706. Delivery of conservation technical assistance. 
Sec. 2707. Cooperative conservation partnership initiative. 
Sec. 2708. Administrative requirements for conservation programs. 
Sec. 2709. Environmental services markets. 
Sec. 2710. Agriculture conservation experienced services program. 
Sec. 2711. Establishment of State technical committees and their responsibil-
ities. 
Subtitle I—Conservation Programs Under Other Laws 
Sec. 2801. Agricultural management assistance program. 
Sec. 2802. Technical assistance under Soil Conservation and Domestic Allot-
ment Act. 
Sec. 2803. Small watershed rehabilitation program. 
Sec. 2804. Amendments to Soil and Water Resources Conservation Act of 
1977. 
Sec. 2805. Resource Conservation and Development Program. 
Sec. 2806. Use of funds in Basin Funds for salinity control activities upstream 
of Imperial Dam. 
Sec. 2807. Desert terminal lakes. 
Subtitle J—Miscellaneous Conservation Provisions 
Sec. 2901. High Plains water study. 
Sec. 2902. Naming of National Plant Materials Center at Beltsville, Maryland, 
in honor of Norman A. Berg. 
Sec. 2903. Transition. 
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Sec. 2904. Regulations. 
TITLE III—TRADE 
Subtitle A—Food for Peace Act 
Sec. 3001. Short title. 
Sec. 3002. United States policy. 
Sec. 3003. Food aid to developing countries. 
Sec. 3004. Trade and development assistance. 
Sec. 3005. Agreements regarding eligible countries and private entities. 
Sec. 3006. Use of local currency payments. 
Sec. 3007. General authority. 
Sec. 3008. Provision of agricultural commodities. 
Sec. 3009. Generation and use of currencies by private voluntary organizations 
and cooperatives. 
Sec. 3010. Levels of assistance. 
Sec. 3011. Food Aid Consultative Group. 
Sec. 3012. Administration. 
Sec. 3013. Assistance for stockpiling and rapid transportation, delivery, and 
distribution of shelf-stable prepackaged foods. 
Sec. 3014. General authorities and requirements. 
Sec. 3015. Definitions. 
Sec. 3016. Use of Commodity Credit Corporation. 
Sec. 3017. Administrative provisions. 
Sec. 3018. Consolidation and modification of annual reports regarding agricul-
tural trade issues. 
Sec. 3019. Expiration of assistance. 
Sec. 3020. Authorization of appropriations. 
Sec. 3021. Minimum level of nonemergency food assistance. 
Sec. 3022. Coordination of foreign assistance programs. 
Sec. 3023. Micronutrient fortification programs. 
Sec. 3024. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program. 
Subtitle B—Agricultural Trade Act of 1978 and Related Statutes 
Sec. 3101. Export credit guarantee program. 
Sec. 3102. Market access program. 
Sec. 3103. Export enhancement program. 
Sec. 3104. Foreign market development cooperator program. 
Sec. 3105. Food for Progress Act of 1985. 
Sec. 3106. McGovern-Dole International Food for Education and Child Nutri-
tion Program. 
Subtitle C—Miscellaneous 
Sec. 3201. Bill Emerson Humanitarian Trust. 
Sec. 3202. Global Crop Diversity Trust. 
Sec. 3203. Technical assistance for specialty crops. 
Sec. 3204. Emerging markets and facility guarantee loan program. 
Sec. 3205. Consultative Group to Eliminate the Use of Child Labor and Forced 
Labor in Imported Agricultural Products. 
Sec. 3206. Local and regional food aid procurement projects. 
Subtitle D—Softwood Lumber 
Sec. 3301. Softwood lumber. 
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TITLE IV—NUTRITION 
Subtitle A—Food Stamp Program 
PART I—RENAMING OF FOOD STAMP ACT AND PROGRAM 
Sec. 4001. Renaming of Food Stamp Act and program. 
Sec. 4002. Conforming amendments. 
PART II—BENEFIT IMPROVEMENTS 
Sec. 4101. Exclusion of certain military payments from income. 
Sec. 4102. Strengthening the food purchasing power of low-income Americans. 
Sec. 4103. Supporting working families with child care expenses. 
Sec. 4104. Asset indexation, education, and retirement accounts. 
Sec. 4105. Facilitating simplified reporting. 
Sec. 4106. Transitional benefits option. 
Sec. 4107. Increasing the minimum benefit. 
Sec. 4108. Employment, training, and job retention. 
PART III—PROGRAM OPERATIONS 
Sec. 4111. Nutrition education. 
Sec. 4112. Technical clarification regarding eligibility. 
Sec. 4113. Clarification of split issuance. 
Sec. 4114. Accrual of benefits. 
Sec. 4115. Issuance and use of program benefits. 
Sec. 4116. Review of major changes in program design. 
Sec. 4117. Civil rights compliance. 
Sec. 4118. Codification of access rules. 
Sec. 4119. State option for telephonic signature. 
Sec. 4120. Privacy protections. 
Sec. 4121. Preservation of access and payment accuracy. 
Sec. 4122. Funding of employment and training programs. 
PART IV—PROGRAM INTEGRITY 
Sec. 4131. Eligibility disqualification. 
Sec. 4132. Civil penalties and disqualification of retail food stores and whole-
sale food concerns. 
Sec. 4133. Major systems failures. 
PART V—MISCELLANEOUS 
Sec. 4141. Pilot projects to evaluate health and nutrition promotion in the sup-
plemental nutrition assistance program. 
Sec. 4142. Study on comparable access to supplemental nutrition assistance for 
Puerto Rico. 
Subtitle B—Food Distribution Programs 
PART I—EMERGENCY FOOD ASSISTANCE PROGRAM 
Sec. 4201. Emergency food assistance. 
Sec. 4202. Emergency food program infrastructure grants. 
PART II—FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS 
Sec. 4211. Assessing the nutritional value of the FDPIR food package. 
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PART III—COMMODITY SUPPLEMENTAL FOOD PROGRAM 
Sec. 4221. Commodity supplemental food program. 
PART IV—SENIOR FARMERS’ MARKET NUTRITION PROGRAM 
Sec. 4231. Seniors farmers’ market nutrition program. 
Subtitle C—Child Nutrition and Related Programs 
Sec. 4301. State performance on enrolling children receiving program benefits 
for free school meals. 
Sec. 4302. Purchases of locally produced foods. 
Sec. 4303. Healthy food education and program replicability. 
Sec. 4304. Fresh fruit and vegetable program. 
Sec. 4305. Whole grain products. 
Sec. 4306. Buy American requirements. 
Sec. 4307. Survey of foods purchased by school food authorities. 
Subtitle D—Miscellaneous 
Sec. 4401. Bill Emerson National Hunger Fellows and Mickey Leland Inter-
national Hunger Fellows. 
Sec. 4402. Assistance for community food projects. 
Sec. 4403. Joint nutrition monitoring and related research activities. 
Sec. 4404. Section 32 funds for purchase of fruits, vegetables, and nuts to sup-
port domestic nutrition assistance programs. 
Sec. 4405. Hunger-free communities. 
Sec. 4406. Reauthorization of Federal food assistance programs. 
Sec. 4407. Effective and implementation dates. 
TITLE V—CREDIT 
Subtitle A—Farm Ownership Loans 
Sec. 5001. Direct loans. 
Sec. 5002. Conservation loan and loan guarantee program. 
Sec. 5003. Limitations on amount of farm ownership loans. 
Sec. 5004. Down payment loan program. 
Sec. 5005. Beginning farmer or rancher and socially disadvantaged farmer or 
rancher contract land sales program. 
Subtitle B—Operating Loans 
Sec. 5101. Farming experience as eligibility requirement. 
Sec. 5102. Limitations on amount of operating loans. 
Sec. 5103. Suspension of limitation on period for which borrowers are eligible 
for guaranteed assistance. 
Subtitle C—Emergency Loans 
Sec. 5201. Eligibility of equine farmers and ranchers for emergency loans. 
Subtitle D—Administrative Provisions 
Sec. 5301. Beginning farmer and rancher individual development accounts pilot 
program. 
Sec. 5302. Inventory sales preferences; loan fund set-asides. 
Sec. 5303. Loan authorization levels. 
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Sec. 5304. Transition to private commercial or other sources of credit. 
Sec. 5305. Extension of the right of first refusal to reacquire homestead prop-
erty to immediate family members of borrower-owner. 
Sec. 5306. Rural development and farm loan program activities. 
Subtitle E—Farm Credit 
Sec. 5401. Farm Credit System Insurance Corporation. 
Sec. 5402. Technical correction. 
Sec. 5403. Bank for cooperatives voting stock. 
Sec. 5404. Premiums. 
Sec. 5405. Certification of premiums. 
Sec. 5406. Rural utility loans. 
Sec. 5407. Equalization of loan-making powers of certain district associations. 
Subtitle F—Miscellaneous 
Sec. 5501. Loans to purchasers of highly fractioned land. 
TITLE VI—RURAL DEVELOPMENT 
Subtitle A—Consolidated Farm and Rural Development Act 
Sec. 6001. Water, waste disposal, and wastewater facility grants. 
Sec. 6002. SEARCH grants. 
Sec. 6003. Rural business opportunity grants. 
Sec. 6004. Child day care facility grants, loans, and loan guarantees. 
Sec. 6005. Community facility grants to advance broadband. 
Sec. 6006. Rural water and wastewater circuit rider program. 
Sec. 6007. Tribal College and University essential community facilities. 
Sec. 6008. Emergency and imminent community water assistance grant pro-
gram. 
Sec. 6009. Water systems for rural and native villages in Alaska. 
Sec. 6010. Grants to nonprofit organizations to finance the construction, refur-
bishing, and servicing of individually-owned household water 
well systems in rural areas for individuals with low or moderate 
incomes. 
Sec. 6011. Interest rates for water and waste disposal facilities loans. 
Sec. 6012. Cooperative equity security guarantee. 
Sec. 6013. Rural cooperative development grants. 
Sec. 6014. Grants to broadcasting systems. 
Sec. 6015. Locally or regionally produced agricultural food products. 
Sec. 6016. Appropriate technology transfer for rural areas. 
Sec. 6017. Rural economic area partnership zones. 
Sec. 6018. Definitions. 
Sec. 6019. National rural development partnership. 
Sec. 6020. Historic barn preservation. 
Sec. 6021. Grants for NOAA weather radio transmitters. 
Sec. 6022. Rural microentrepreneur assistance program. 
Sec. 6023. Grants for expansion of employment opportunities for individuals 
with disabilities in rural areas. 
Sec. 6024. Health care services. 
Sec. 6025. Delta Regional Authority. 
Sec. 6026. Northern Great Plains Regional Authority. 
Sec. 6027. Rural Business Investment Program. 
Sec. 6028. Rural Collaborative Investment Program. 
Sec. 6029. Funding of pending rural development loan and grant applications. 
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Subtitle B—Rural Electrification Act of 1936 
Sec. 6101. Energy efficiency programs. 
Sec. 6102. Reinstatement of Rural Utility Services direct lending. 
Sec. 6103. Deferment of payments to allows loans for improved energy effi-
ciency and demand reduction and for energy efficiency and use 
audits. 
Sec. 6104. Rural electrification assistance. 
Sec. 6105. Substantially underserved trust areas. 
Sec. 6106. Guarantees for bonds and notes issued for electrification or tele-
phone purposes. 
Sec. 6107. Expansion of 911 access. 
Sec. 6108. Electric loans for renewable energy. 
Sec. 6109. Bonding requirements. 
Sec. 6110. Access to broadband telecommunications services in rural areas. 
Sec. 6111. National Center for Rural Telecommunications Assessment. 
Sec. 6112. Comprehensive rural broadband strategy. 
Sec. 6113. Study on rural electric power generation. 
Subtitle C—Miscellaneous 
Sec. 6201. Distance learning and telemedicine. 
Sec. 6202. Value-added agricultural market development program grants. 
Sec. 6203. Agriculture innovation center demonstration program. 
Sec. 6204. Rural firefighters and emergency medical service assistance pro-
gram. 
Sec. 6205. Insurance of loans for housing and related facilities for domestic 
farm labor. 
Sec. 6206. Study of rural transportation issues. 
Subtitle D—Housing Assistance Council 
Sec. 6301. Short title. 
Sec. 6302. Assistance to Housing Assistance Council. 
Sec. 6303. Audits and reports. 
Sec. 6304. Persons not lawfully present in the United States. 
Sec. 6305. Limitation on use of authorized amounts. 
TITLE VII—RESEARCH AND RELATED MATTERS 
Subtitle A—National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 
Sec. 7101. Definitions. 
Sec. 7102. National Agricultural Research, Extension, Education, and Econom-
ics Advisory Board. 
Sec. 7103. Specialty crop committee report. 
Sec. 7104. Renewable energy committee. 
Sec. 7105. Veterinary medicine loan repayment. 
Sec. 7106. Eligibility of University of the District of Columbia for grants and 
fellowships for food and agricultural sciences education. 
Sec. 7107. Grants to 1890 schools to expand extension capacity. 
Sec. 7108. Expansion of food and agricultural sciences awards. 
Sec. 7109. Grants and fellowships for food and agricultural sciences education. 
Sec. 7110. Grants for research on production and marketing of alcohols and in-
dustrial hydrocarbons from agricultural commodities and forest 
products. 
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Sec. 7111. Policy research centers. 
Sec. 7112. Education grants to Alaska Native-serving institutions and Native 
Hawaiian-serving institutions. 
Sec. 7113. Emphasis of human nutrition initiative. 
Sec. 7114. Human nutrition intervention and health promotion research pro-
gram. 
Sec. 7115. Pilot research program to combine medical and agricultural re-
search. 
Sec. 7116. Nutrition education program. 
Sec. 7117. Continuing animal health and disease research programs. 
Sec. 7118. Cooperation among eligible institutions. 
Sec. 7119. Appropriations for research on national or regional problems. 
Sec. 7120. Animal health and disease research program. 
Sec. 7121. Authorization level for extension at 1890 land-grant colleges. 
Sec. 7122. Authorization level for agricultural research at 1890 land-grant col-
leges. 
Sec. 7123. Grants to upgrade agricultural and food sciences facilities at 1890 
land-grant colleges, including Tuskegee University. 
Sec. 7124. Grants to upgrade agriculture and food sciences facilities at the Dis-
trict of Columbia land-grant university. 
Sec. 7125. Grants to upgrade agriculture and food sciences facilities and equip-
ment at insular area land-grant institutions. 
Sec. 7126. National research and training virtual centers. 
Sec. 7127. Matching funds requirement for research and extension activities of 
1890 institutions. 
Sec. 7128. Hispanic-serving institutions. 
Sec. 7129. Hispanic-serving agricultural colleges and universities. 
Sec. 7130. International agricultural research, extension, and education. 
Sec. 7131. Competitive grants for international agricultural science and edu-
cation programs. 
Sec. 7132. Administration. 
Sec. 7133. Research equipment grants. 
Sec. 7134. University research. 
Sec. 7135. Extension Service. 
Sec. 7136. Supplemental and alternative crops. 
Sec. 7137. New Era Rural Technology Program. 
Sec. 7138. Capacity building grants for NLGCA Institutions. 
Sec. 7139. Borlaug international agricultural science and technology fellowship 
program. 
Sec. 7140. Aquaculture assistance programs. 
Sec. 7141. Rangeland research grants. 
Sec. 7142. Special authorization for biosecurity planning and response. 
Sec. 7143. Resident instruction and distance education grants program for in-
sular area institutions of higher education. 
Subtitle B—Food, Agriculture, Conservation, and Trade Act of 1990 
Sec. 7201. National genetics resources program. 
Sec. 7202. National Agricultural Weather Information System. 
Sec. 7203. Partnerships. 
Sec. 7204. High-priority research and extension areas. 
Sec. 7205. Nutrient management research and extension initiative. 
Sec. 7206. Organic Agriculture Research and Extension Initiative. 
Sec. 7207. Agricultural bioenergy feedstock and energy efficiency research and 
extension initiative. 
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Sec. 7208. Farm business management and benchmarking. 
Sec. 7209. Agricultural telecommunications program. 
Sec. 7210. Assistive technology program for farmers with disabilities. 
Sec. 7211. Research on honey bee diseases. 
Sec. 7212. National Rural Information Center Clearinghouse. 
Subtitle C—Agricultural Research, Extension, and Education Reform Act of 
1998 
Sec. 7301. Peer and merit review. 
Sec. 7302. Partnerships for high-value agricultural product quality research. 
Sec. 7303. Precision agriculture. 
Sec. 7304. Biobased products. 
Sec. 7305. Thomas Jefferson Initiative for Crop Diversification. 
Sec. 7306. Integrated research, education, and extension competitive grants 
program. 
Sec. 7307. Fusarium graminearum grants. 
Sec. 7308. Bovine Johne’s disease control program. 
Sec. 7309. Grants for youth organizations. 
Sec. 7310. Agricultural biotechnology research and development for developing 
countries. 
Sec. 7311. Specialty crop research initiative. 
Sec. 7312. Food animal residue avoidance database program. 
Sec. 7313. Office of pest management policy. 
Subtitle D—Other Laws 
Sec. 7401. Critical Agricultural Materials Act. 
Sec. 7402. Equity in Educational Land-Grant Status Act of 1994. 
Sec. 7403. Smith-Lever Act. 
Sec. 7404. Hatch Act of 1887. 
Sec. 7405. Agricultural Experiment Station Research Facilities Act. 
Sec. 7406. Agriculture and food research initiative. 
Sec. 7407. Agricultural Risk Protection Act of 2000. 
Sec. 7408. Exchange or sale authority. 
Sec. 7409. Enhanced use lease authority pilot program. 
Sec. 7410. Beginning farmer and rancher development program. 
Sec. 7411. Public education regarding use of biotechnology in producing food 
for human consumption. 
Sec. 7412. McIntire-Stennis Cooperative Forestry Act. 
Sec. 7413. Renewable Resources Extension Act of 1978. 
Sec. 7414. National Aquaculture Act of 1980. 
Sec. 7415. Construction of Chinese Garden at the National Arboretum. 
Sec. 7416. National Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985. 
Sec. 7417. Eligibility of University of the District of Columbia for certain land- 
grant university assistance. 
Subtitle E—Miscellaneous 
PART I—GENERAL PROVISIONS 
Sec. 7501. Definitions. 
Sec. 7502. Grazinglands research laboratory. 
Sec. 7503. Fort Reno Science Park Research Facility. 
Sec. 7504. Roadmap. 
Sec. 7505. Review of plan of work requirements. 
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Sec. 7506. Budget submission and funding. 
PART II—RESEARCH, EDUCATION, AND ECONOMICS 
Sec. 7511. Research, education, and economics. 
PART III—NEW GRANT AND RESEARCH PROGRAMS 
Sec. 7521. Research and education grants for the study of antibiotic-resistant 
bacteria. 
Sec. 7522. Farm and ranch stress assistance network. 
Sec. 7523. Seed distribution. 
Sec. 7524. Live virus foot and mouth disease research. 
Sec. 7525. Natural products research program. 
Sec. 7526. Sun grant program. 
Sec. 7527. Study and report on food deserts. 
Sec. 7528. Demonstration project authority for temporary positions. 
Sec. 7529. Agricultural and rural transportation research and education. 
TITLE VIII—FORESTRY 
Subtitle A—Amendments to Cooperative Forestry Assistance Act of 1978 
Sec. 8001. National priorities for private forest conservation. 
Sec. 8002. Long-term State-wide assessments and strategies for forest re-
sources. 
Sec. 8003. Community forest and open space conservation program. 
Sec. 8004. Assistance to the Federated States of Micronesia, the Republic of 
the Marshall Islands, and the Republic of Palau. 
Sec. 8005. Changes to Forest Resource Coordinating Committee. 
Sec. 8006. Changes to State Forest Stewardship Coordinating Committees. 
Sec. 8007. Competition in programs under Cooperative Forestry Assistance Act 
of 1978. 
Sec. 8008. Competitive allocation of funds for cooperative forest innovation 
partnership projects. 
Subtitle B—Cultural and Heritage Cooperation Authority 
Sec. 8101. Purposes. 
Sec. 8102. Definitions. 
Sec. 8103. Reburial of human remains and cultural items. 
Sec. 8104. Temporary closure for traditional and cultural purposes. 
Sec. 8105. Forest products for traditional and cultural purposes. 
Sec. 8106. Prohibition on disclosure. 
Sec. 8107. Severability and savings provisions. 
Subtitle C—Amendments to Other Forestry-Related Laws 
Sec. 8201. Rural revitalization technologies. 
Sec. 8202. Office of International Forestry. 
Sec. 8203. Emergency forest restoration program. 
Sec. 8204. Prevention of illegal logging practices. 
Sec. 8205. Healthy forests reserve program. 
Subtitle D—Boundary Adjustments and Land Conveyance Provisions 
Sec. 8301. Green Mountain National Forest boundary adjustment. 
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Sec. 8302. Land conveyances, Chihuahuan Desert Nature Park, New Mexico, 
and George Washington National Forest, Virginia. 
Sec. 8303. Sale and exchange of National Forest System land, Vermont. 
Subtitle E—Miscellaneous Provisions 
Sec. 8401. Qualifying timber contract options. 
Sec. 8402. Hispanic-serving institution agricultural land national resources 
leadership program. 
TITLE IX—ENERGY 
Sec. 9001. Energy. 
Sec. 9002. Biofuels infrastructure study. 
Sec. 9003. Renewable fertilizer study. 
TITLE X—HORTICULTURE AND ORGANIC AGRICULTURE 
Sec. 10001. Definitions. 
Subtitle A—Horticulture Marketing and Information 
Sec. 10101. Independent evaluation of Department of Agriculture commodity 
purchase process. 
Sec. 10102. Quality requirements for clementines. 
Sec. 10103. Inclusion of specialty crops in census of agriculture. 
Sec. 10104. Mushroom promotion, research, and consumer information. 
Sec. 10105. Food safety education initiatives. 
Sec. 10106. Farmers’ market promotion program. 
Sec. 10107. Specialty crops market news allocation. 
Sec. 10108. Expedited marketing order for Hass avocados for grades and 
standards and other purposes. 
Sec. 10109. Specialty crop block grants. 
Subtitle B—Pest and Disease Management 
Sec. 10201. Plant pest and disease management and disaster prevention. 
Sec. 10202. National Clean Plant Network. 
Sec. 10203. Plant protection. 
Sec. 10204. Regulations to improve management and oversight of certain regu-
lated articles. 
Sec. 10205. Pest and Disease Revolving Loan Fund. 
Sec. 10206. Cooperative agreements relating to plant pest and disease preven-
tion activities. 
Subtitle C—Organic Agriculture 
Sec. 10301. National organic certification cost-share program. 
Sec. 10302. Organic production and market data initiatives. 
Sec. 10303. National Organic Program. 
Subtitle D—Miscellaneous 
Sec. 10401. National Honey Board. 
Sec. 10402. Identification of honey. 
Sec. 10403. Grant program to improve movement of specialty crops. 
Sec. 10404. Market loss assistance for asparagus producers. 
TITLE XI—LIVESTOCK 
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Sec. 11001. Livestock mandatory reporting. 
Sec. 11002. Country of origin labeling. 
Sec. 11003. Agricultural Fair Practices Act of 1967 definitions. 
Sec. 11004. Annual report. 
Sec. 11005. Production contracts. 
Sec. 11006. Regulations. 
Sec. 11007. Sense of Congress regarding pseudorabies eradication program. 
Sec. 11008. Sense of Congress regarding the cattle fever tick eradication pro-
gram. 
Sec. 11009. National Sheep Industry Improvement Center. 
Sec. 11010. Trichinae certification program. 
Sec. 11011. Low pathogenic diseases. 
Sec. 11012. Animal protection. 
Sec. 11013. National Aquatic Animal Health Plan. 
Sec. 11014. Study on bioenergy operations. 
Sec. 11015. Interstate shipment of meat and poultry inspected by Federal and 
State agencies for certain small establishments. 
Sec. 11016. Inspection and grading. 
Sec. 11017. Food safety improvement. 
TITLE XII—CROP INSURANCE AND DISASTER ASSISTANCE 
PROGRAMS 
Subtitle A—Crop Insurance and Disaster Assistance 
Sec. 12001. Definition of organic crop. 
Sec. 12002. General powers. 
Sec. 12003. Reduction in loss ratio. 
Sec. 12004. Premiums adjustments. 
Sec. 12005. Controlled business insurance. 
Sec. 12006. Administrative fee. 
Sec. 12007. Time for payment. 
Sec. 12008. Catastrophic coverage reimbursement rate. 
Sec. 12009. Grain sorghum price election. 
Sec. 12010. Premium reduction authority. 
Sec. 12011. Enterprise and whole farm units. 
Sec. 12012. Payment of portion of premium for area revenue plans. 
Sec. 12013. Denial of claims. 
Sec. 12014. Settlement of crop insurance claims on farm-stored production. 
Sec. 12015. Time for reimbursement. 
Sec. 12016. Reimbursement rate. 
Sec. 12017. Renegotiation of Standard Reinsurance Agreement. 
Sec. 12018. Change in due date for Corporation payments for underwriting 
gains. 
Sec. 12019. Malting barley. 
Sec. 12020. Crop production on native sod. 
Sec. 12021. Information management. 
Sec. 12022. Research and development. 
Sec. 12023. Contracts for additional policies and studies. 
Sec. 12024. Funding from insurance fund. 
Sec. 12025. Pilot programs. 
Sec. 12026. Risk management education for beginning farmers or ranchers. 
Sec. 12027. Coverage for aquaculture under noninsured crop assistance pro-
gram. 
Sec. 12028. Increase in service fees for noninsured crop assistance program. 
Sec. 12029. Determination of certain sweet potato production. 
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Sec. 12030. Declining yield report. 
Sec. 12031. Definition of basic unit. 
Sec. 12032. Crop insurance mediation. 
Sec. 12033. Supplemental agricultural disaster assistance. 
Sec. 12034. Fisheries disaster assistance. 
Subtitle B—Small Business Disaster Loan Program 
Sec. 12051. Short title. 
Sec. 12052. Definitions. 
PART I—DISASTER PLANNING AND RESPONSE 
Sec. 12061. Economic injury disaster loans to nonprofits. 
Sec. 12062. Coordination of disaster assistance programs with FEMA. 
Sec. 12063. Public awareness of disaster declaration and application periods. 
Sec. 12064. Consistency between administration regulations and standard oper-
ating procedures. 
Sec. 12065. Increasing collateral requirements. 
Sec. 12066. Processing disaster loans. 
Sec. 12067. Information tracking and follow-up system. 
Sec. 12068. Increased deferment period. 
Sec. 12069. Disaster processing redundancy. 
Sec. 12070. Net earnings clauses prohibited. 
Sec. 12071. Economic injury disaster loans in cases of ice storms and blizzards. 
Sec. 12072. Development and implementation of major disaster response plan. 
Sec. 12073. Disaster planning responsibilities. 
Sec. 12074. Assignment of employees of the office of disaster assistance and 
disaster cadre. 
Sec. 12075. Comprehensive disaster response plan. 
Sec. 12076. Plans to secure sufficient office space. 
Sec. 12077. Applicants that have become a major source of employment due to 
changed economic circumstances. 
Sec. 12078. Disaster loan amounts. 
Sec. 12079. Small business bonding threshold. 
PART II—DISASTER LENDING 
Sec. 12081. Eligibility for additional disaster assistance. 
Sec. 12082. Additional economic injury disaster loan assistance. 
Sec. 12083. Private disaster loans. 
Sec. 12084. Immediate Disaster Assistance program. 
Sec. 12085. Expedited disaster assistance loan program. 
Sec. 12086. Gulf Coast Disaster Loan Refinancing Program. 
PART III—MISCELLANEOUS 
Sec. 12091. Reports on disaster assistance. 
TITLE XIII—COMMODITY FUTURES 
Sec. 13001. Short title. 
Subtitle A—General Provisions 
Sec. 13101. Commission authority over agreements, contracts or transactions 
in foreign currency. 
Sec. 13102. Anti-fraud authority over principal-to-principal transactions. 
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Sec. 13103. Criminal and civil penalties. 
Sec. 13104. Authorization of appropriations. 
Sec. 13105. Technical and conforming amendments. 
Sec. 13106. Portfolio margining and security index issues. 
Subtitle B—Significant Price Discovery Contracts on Exempt Commercial 
Markets 
Sec. 13201. Significant price discovery contracts. 
Sec. 13202. Large trader reporting. 
Sec. 13203. Conforming amendments. 
Sec. 13204. Effective date. 
TITLE XIV—MISCELLANEOUS 
Subtitle A—Socially Disadvantaged Producers and Limited Resource 
Producers 
Sec. 14001. Improved program delivery by Department of Agriculture on In-
dian reservations. 
Sec. 14002. Foreclosure. 
Sec. 14003. Receipt for service or denial of service from certain Department of 
Agriculture agencies. 
Sec. 14004. Outreach and technical assistance for socially disadvantaged farm-
ers or ranchers. 
Sec. 14005. Accurate documentation in the Census of Agriculture and certain 
studies. 
Sec. 14006. Transparency and accountability for socially disadvantaged farmers 
or ranchers. 
Sec. 14007. Oversight and compliance. 
Sec. 14008. Minority Farmer Advisory Committee. 
Sec. 14009. National Appeals Division. 
Sec. 14010. Report of civil rights complaints, resolutions, and actions. 
Sec. 14011. Sense of Congress relating to claims brought by socially disadvan-
taged farmers or ranchers. 
Sec. 14012. Determination on merits of Pigford claims. 
Sec. 14013. Office of Advocacy and Outreach. 
Subtitle B—Agricultural Security 
Sec. 14101. Short title. 
Sec. 14102. Definitions. 
CHAPTER 1—AGRICULTURAL SECURITY 
Sec. 14111. Office of Homeland Security. 
Sec. 14112. Agricultural biosecurity communication center. 
Sec. 14113. Assistance to build local capacity in agricultural biosecurity plan-
ning, preparedness, and response. 
CHAPTER 2—OTHER PROVISIONS 
Sec. 14121. Research and development of agricultural countermeasures. 
Sec. 14122. Agricultural biosecurity grant program. 
Subtitle C—Other Miscellaneous Provisions 
Sec. 14201. Cotton classification services. 
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Sec. 14202. Designation of States for cotton research and promotion. 
Sec. 14203. Grants to reduce production of methamphetamines from anhydrous 
ammonia. 
Sec. 14204. Grants to improve supply, stability, safety, and training of agricul-
tural labor force. 
Sec. 14205. Amendment to the Right to Financial Privacy Act of 1978. 
Sec. 14206. Report on stored quantities of propane. 
Sec. 14207. Prohibitions on dog fighting ventures. 
Sec. 14208. Department of Agriculture conference transparency. 
Sec. 14209. Federal Insecticide, Fungicide, and Rodenticide Act amendments. 
Sec. 14210. Importation of live dogs. 
Sec. 14211. Permanent debarment from participation in Department of Agri-
culture programs for fraud. 
Sec. 14212. Prohibition on closure or relocation of county offices for the Farm 
Service Agency. 
Sec. 14213. USDA Graduate School. 
Sec. 14214. Fines for violations of the Animal Welfare Act. 
Sec. 14215. Definition of central filing system. 
Sec. 14216. Consideration of proposed recommendations of study on use of cats 
and dogs in Federal research. 
Sec. 14217. Regional economic and infrastructure development. 
Sec. 14218. Coordinator for chronically underserved rural areas. 
Sec. 14219. Elimination of statute of limitations applicable to collection of debt 
by administrative offset. 
Sec. 14220. Availability of excess and surplus computers in rural areas. 
Sec. 14221. Repeal of section 3068 of the Water Resources Development Act 
of 2007. 
Sec. 14222. Domestic food assistance programs. 
Sec. 14223. Technical correction. 
TITLE XV—TRADE AND TAX PROVISIONS 
Sec. 15001. Short title; etc. 
Subtitle A—Supplemental Agricultural Disaster Assistance From the 
Agricultural Disaster Relief Trust Fund 
Sec. 15101. Supplemental agricultural disaster assistance. 
Subtitle B—Revenue Provisions for Agriculture Programs 
Sec. 15201. Customs User Fees. 
Sec. 15202. Time for payment of corporate estimated taxes. 
Subtitle C—Tax Provisions 
PART I—CONSERVATION 
SUBPART A—LAND AND SPECIES PRESERVATION PROVISIONS 
Sec. 15301. Exclusion of conservation reserve program payments from SECA 
tax for certain individuals. 
Sec. 15302. Two-year extension of special rule encouraging contributions of 
capital gain real property for conservation purposes. 
Sec. 15303. Deduction for endangered species recovery expenditures. 
SUBPART B—TIMBER PROVISIONS 
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Sec. 15311. Temporary reduction in rate of tax on qualified timber gain of cor-
porations. 
Sec. 15312. Timber REIT modernization. 
Sec. 15313. Mineral royalty income qualifying income for timber REITs. 
Sec. 15314. Modification of taxable REIT subsidiary asset test for timber 
REITs. 
Sec. 15315. Safe harbor for timber property. 
Sec. 15316. Qualified forestry conservation bonds. 
PART II—ENERGY PROVISIONS 
SUBPART A—CELLULOSIC BIOFUEL 
Sec. 15321. Credit for production of cellulosic biofuel. 
Sec. 15322. Comprehensive study of biofuels. 
SUBPART B—REVENUE PROVISIONS 
Sec. 15331. Modification of alcohol credit. 
Sec. 15332. Calculation of volume of alcohol for fuel credits. 
Sec. 15333. Ethanol tariff extension. 
Sec. 15334. Limitations on duty drawback on certain imported ethanol. 
PART III—AGRICULTURAL PROVISIONS 
Sec. 15341. Increase in loan limits on agricultural bonds. 
Sec. 15342. Allowance of section 1031 treatment for exchanges involving cer-
tain mutual ditch, reservoir, or irrigation company stock. 
Sec. 15343. Agricultural chemicals security credit. 
Sec. 15344. 3-year depreciation for race horses that are 2-years old or younger. 
Sec. 15345. Temporary tax relief for Kiowa County, Kansas and surrounding 
area. 
Sec. 15346. Competitive certification awards modification authority. 
PART IV—OTHER REVENUE PROVISIONS 
Sec. 15351. Limitation on excess farm losses of certain taxpayers. 
Sec. 15352. Modification to optional method of computing net earnings from 
self-employment. 
Sec. 15353. Information reporting for Commodity Credit Corporation trans-
actions. 
PART V—PROTECTION OF SOCIAL SECURITY 
Sec. 15361. Protection of social security. 
Subtitle D—Trade Provisions 
PART I—EXTENSION OF CERTAIN TRADE BENEFITS 
Sec. 15401. Short title. 
Sec. 15402. Benefits for apparel and other textile articles. 
Sec. 15403. Labor Ombudsman and technical assistance improvement and com-
pliance needs assessment and remediation program. 
Sec. 15404. Petition process. 
Sec. 15405. Conditions regarding enforcement of circumvention. 
Sec. 15406. Presidential proclamation authority. 
Sec. 15407. Regulations and procedures. 
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Sec. 15408. Extension of CBTPA. 
Sec. 15409. Sense of Congress on interpretation of textile and apparel provi-
sions for Haiti. 
Sec. 15410. Sense of Congress on trade mission to Haiti. 
Sec. 15411. Sense of Congress on visa systems. 
Sec. 15412. Effective date. 
PART II—MISCELLANEOUS TRADE PROVISIONS 
Sec. 15421. Unused merchandise drawback. 
Sec. 15422. Requirements relating to determination of transaction value of im-
ported merchandise. 
SEC. 2. DEFINITION OF SECRETARY. 
In this Act, the term ‘‘Secretary’’ means the Sec-
retary of Agriculture. 
SEC. 3. EXPLANATORY STATEMENT. 
The Joint Explanatory Statement submitted by the 
Committee of Conference for the conference report to ac-
company H.R. 2419 of the 110th Congress (House Report 
110-627) shall be deemed to be part of the legislative his-
tory of this Act and shall have the same effect with respect 
to the implementation of this Act as it would have had 
with respect to the implementation of H.R. 2419. 
SEC. 4. REPEAL OF DUPLICATIVE ENACTMENT. 
(a) IN GENERAL.—The Act entitled ‘‘An Act to pro-
vide for the continuation of agricultural programs through 
fiscal year 2012, and for other purposes’’ (H.R. 2419 of 
the 110th Congress), and the amendments made by that 
Act, are repealed, effective on the date of enactment of 
that Act. 
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(b) EFFECTIVE DATE.—Except as otherwise provided 
in this Act, this Act and the amendments made by this 
Act shall take effect on the earlier of— 
(1) the date of enactment of this Act; or 
(2) the date of the enactment of the Act enti-
tled ‘‘An Act to provide for the continuation of agri-
cultural programs through fiscal year 2012, and for 
other purposes’’ (H.R. 2419 of the 110th Congress). 
TITLE I—COMMODITY 
PROGRAMS 
SEC. 1001. DEFINITIONS. 
In this title (other than subtitle C): 
(1) AVERAGE CROP REVENUE ELECTION PAY-
MENT.—The term ‘‘average crop revenue election 
payment’’ means a payment made to producers on 
a farm under section 1105. 
(2) BASE ACRES.— 
(A) IN GENERAL.—The term ‘‘base acres’’, 
with respect to a covered commodity on a farm, 
means the number of acres established under 
section 1101 of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 7911) as in 
effect on September 30, 2007, subject to any 
adjustment under section 1101 of this Act. 
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(B) PEANUTS.—The term ‘‘base acres for 
peanuts’’ has the meaning given the term in 
section 1301. 
(3) COUNTER-CYCLICAL PAYMENT.—The term 
‘‘counter-cyclical payment’’ means a payment made 
to producers on a farm under section 1104. 
(4) COVERED COMMODITY.—The term ‘‘covered 
commodity’’ means wheat, corn, grain sorghum, bar-
ley, oats, upland cotton, long grain rice, medium 
grain rice, pulse crops, soybeans, and other oilseeds. 
(5) DIRECT PAYMENT.—The term ‘‘direct pay-
ment’’ means a payment made to producers on a 
farm under section 1103. 
(6) EFFECTIVE
PRICE.—The term ‘‘effective 
price’’, with respect to a covered commodity for a 
crop year, means the price calculated by the Sec-
retary under section 1104 to determine whether 
counter-cyclical payments are required to be made 
for that crop year. 
(7) EXTRA LONG STAPLE COTTON.—The term 
‘‘extra long staple cotton’’ means cotton that— 
(A) is produced from pure strain varieties 
of the Barbadense species or any hybrid of the 
species, or other similar types of extra long sta-
ple cotton, designated by the Secretary, having 
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characteristics needed for various end uses for 
which United States upland cotton is not suit-
able and grown in irrigated cotton-growing re-
gions of the United States designated by the 
Secretary or other areas designated by the Sec-
retary as suitable for the production of the vari-
eties or types; and 
(B) is ginned on a roller-type gin or, if au-
thorized by the Secretary, ginned on another 
type gin for experimental purposes. 
(8) LOAN COMMODITY.—The term ‘‘loan com-
modity’’ means wheat, corn, grain sorghum, barley, 
oats, upland cotton, extra long staple cotton, long 
grain rice, medium grain rice, soybeans, other oil-
seeds, graded wool, nongraded wool, mohair, honey, 
dry peas, lentils, small chickpeas, and large chick-
peas. 
(9) MEDIUM GRAIN RICE.—The term ‘‘medium 
grain rice’’ includes short grain rice. 
(10) OTHER OILSEED.—The term ‘‘other oil-
seed’’ means a crop of sunflower seed, rapeseed, 
canola, safflower, flaxseed, mustard seed, crambe, 
sesame seed, or any oilseed designated by the Sec-
retary. 
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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 ex-
istence 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 
title. 
(14) PULSE
CROP.—The term ‘‘pulse crop’’ 
means dry peas, lentils, small chickpeas, and large 
chickpeas. 
(15) 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. 
(16) TARGET PRICE.—The term ‘‘target price’’ 
means the price per bushel, pound, or hundred-
weight (or other appropriate unit) of a covered com-
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modity used to determine the payment rate for 
counter-cyclical payments. 
(17) UNITED
STATES.—The term ‘‘United 
States’’, when used in a geographical sense, means 
all of the States. 
(18) UNITED STATES PREMIUM FACTOR.—The 
term ‘‘United States Premium Factor’’ means the 
percentage by which the difference in the United 
States loan schedule premiums for Strict Middling 
(SM) 11⁄8-inch upland cotton and for Middling (M) 
13⁄32-inch upland cotton exceeds the difference in the 
applicable premiums for comparable international 
qualities. 
Subtitle A—Direct Payments and 
Counter-Cyclical Payments 
SEC. 1101. BASE ACRES. 
(a) ADJUSTMENT OF BASE ACRES.— 
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for covered commodities for a farm whenever any of 
the following circumstances occurs: 
(A) A conservation reserve contract en-
tered into under section 1231 of the Food Secu-
rity Act of 1985 (16 U.S.C. 3831) with respect 
to the farm expires or is voluntarily terminated, 
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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 conservation reserve contract by the 
Secretary, or was released during the period be-
ginning 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 In-
vestment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acre-
age 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 Security 
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 adjustment under subparagraph (A) or 
(B) of paragraph (1) is first made, the owner of the 
farm shall elect to receive either direct payments 
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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.— 
(1) REQUIRED REDUCTION.—If the sum of the 
base acres for a farm, together with the acreage de-
scribed in paragraph (2) exceeds the actual cropland 
acreage of the farm, the Secretary shall reduce the 
base acres for 1 or more covered commodities for the 
farm or the base acres for peanuts for the farm so 
that the sum of the base acres and acreage described 
in paragraph (2) does not exceed the actual cropland 
acreage of the farm. 
(2) OTHER ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following: 
(A) Any base acres for peanuts for the 
farm. 
(B) Any acreage on the farm enrolled in 
the conservation 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 
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payments are made in exchange for not pro-
ducing an agricultural commodity on the acre-
age. 
(D) Any eligible pulse crop acreage, which 
shall be determined in the same manner as eli-
gible oilseed acreage under section 1101(a)(2) 
of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7911(a)(2)). 
(E) If the Secretary designates additional 
oilseeds, any eligible oilseed 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)). 
(3) SELECTION OF ACRES.—The Secretary shall 
give the owner of the farm the opportunity to select 
the base acres for a covered commodity or the base 
acres for peanuts for the farm against which the re-
duction required by paragraph (1) will be made. 
(4) EXCEPTION FOR DOUBLE-CROPPED ACRE-
AGE.—In applying paragraph (1), the Secretary 
shall make an exception in the case of double crop-
ping, as determined by the Secretary. 
(5) COORDINATED APPLICATION OF REQUIRE-
MENTS.—The Secretary shall take into account sec-
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tion 1302(b) when applying the requirements of this 
subsection. 
(c) REDUCTION IN BASE ACRES.— 
(1) REDUCTION AT OPTION OF OWNER.— 
(A) IN GENERAL.—The owner of a farm 
may reduce, at any time, the base acres for any 
covered commodity for the farm. 
(B) EFFECT OF REDUCTION.—A reduction 
under subparagraph (A) shall be permanent 
and made in a manner prescribed by the Sec-
retary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN
GENERAL.—The Secretary shall 
proportionately reduce base acres on a farm for 
covered commodities for land that has been sub-
divided and developed for multiple residential 
units or other nonfarming uses if the size of the 
tracts and the density of the subdivision is such 
that the land is unlikely to return to the pre-
vious agricultural use, unless the producers on 
the farm demonstrate that the land— 
(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use. 
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(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described 
in subparagraph (A). 
(3) REVIEW AND REPORT.—Each year, to en-
sure, to the maximum extent practicable, that pay-
ments are received only by producers, the Secretary 
shall submit to Congress a report that describes the 
results of the actions taken under paragraph (2). 
(d) TREATMENT OF FARMS WITH LIMITED BASE 
ACRES.— 
(1) PROHIBITION
ON
PAYMENTS.—Except as 
provided in paragraph (2) and notwithstanding any 
other provision of this title, a producer on a farm 
may not receive direct payments, counter-cyclical 
payments, or average crop revenue election payments 
if the sum of the base acres of the farm is 10 acres 
or less, as determined by the Secretary. 
(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to a farm owned by— 
(A) a socially disadvantaged farmer or 
rancher (as defined in section 355(e) of the 
Consolidated Farm and Rural Development Act 
(7 U.S.C. 2003(e)); or 
(B) a limited resource farmer or rancher, 
as defined by the Secretary. 
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(3) DATA
COLLECTION
AND
PUBLICATION.— 
The Secretary shall— 
(A) collect and publish segregated data 
and survey information about the farm profiles, 
utilization of land, and crop production; and 
(B) perform an evaluation on the supply 
and price of fruits and vegetables based on the 
effects of suspension of base acres under this 
section. 
SEC. 1102. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the pur-
pose of making direct payments and counter-cyclical pay-
ments under this subtitle, the Secretary shall provide for 
the establishment of a yield for each farm for any des-
ignated oilseed or eligible pulse crop for which a payment 
yield was not established under section 1102 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 
7912) in accordance with this section. 
(b) PAYMENT YIELDS FOR DESIGNATED OILSEEDS 
AND ELIGIBLE PULSE CROPS.— 
(1) DETERMINATION OF AVERAGE YIELD.—In 
the case of designated oilseeds and eligible pulse 
crops, the Secretary shall determine the average 
yield per planted acre for the designated oilseed or 
pulse crop on a farm for the 1998 through 2001 
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crop years, excluding any crop year in which the 
acreage planted to the designated oilseed or pulse 
crop was zero. 
(2) ADJUSTMENT FOR PAYMENT YIELD.— 
(A) IN GENERAL.—The payment yield for 
a farm for a designated oilseed or eligible pulse 
crop shall be equal to the product of the fol-
lowing: 
(i) The average yield for the des-
ignated oilseed or pulse crop determined 
under paragraph (1). 
(ii) The ratio resulting from dividing 
the national average yield for the des-
ignated oilseed or pulse crop for the 1981 
through 1985 crops by the national aver-
age yield for the designated oilseed or 
pulse crop for the 1998 through 2001 
crops. 
(B) NO NATIONAL AVERAGE YIELD INFOR-
MATION AVAILABLE.—To the extent that na-
tional average yield information for a des-
ignated oilseed or pulse crop is not available, 
the Secretary shall use such information as the 
Secretary determines to be fair and equitable to 
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establish a national average yield under this 
section. 
(3) 
USE
OF
PARTIAL
COUNTY
AVERAGE 
YIELD.—If the yield per planted acre for a crop of 
a designated oilseed or pulse crop for a farm for any 
of the 1998 through 2001 crop years was less than 
75 percent of the county yield for that designated 
oilseed or pulse crop, the Secretary shall assign a 
yield for that crop year equal to 75 percent of the 
county yield for the purpose of determining the aver-
age under paragraph (1). 
(4) NO HISTORIC YIELD DATA AVAILABLE.—In 
the case of establishing yields for designated oilseeds 
and eligible pulse crops, if historic yield data is not 
available, the Secretary shall use the ratio for dry 
peas calculated under paragraph (2)(A)(ii) in deter-
mining the yields for designated oilseeds and eligible 
pulse crops, as determined to be fair and equitable 
by the Secretary. 
SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS. 
(a) PAYMENT REQUIRED.—For each of the 2008 
through 2012 crop years of each covered commodity (other 
than pulse crops), the Secretary shall make direct pay-
ments to producers on farms for which base acres and 
payment yields are established. 
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(b) PAYMENT RATE.—Except as provided in section 
1105, the payment rates used to make direct payments 
with respect to covered commodities for a crop year shall 
be as follows: 
(1) Wheat, $0.52 per bushel. 
(2) Corn, $0.28 per bushel. 
(3) Grain sorghum, $0.35 per bushel. 
(4) Barley, $0.24 per bushel. 
(5) Oats, $0.024 per bushel. 
(6) Upland cotton, $0.0667 per pound. 
(7) Long grain rice, $2.35 per hundredweight. 
(8) Medium grain rice, $2.35 per hundred-
weight. 
(9) Soybeans, $0.44 per bushel. 
(10) Other oilseeds, $0.80 per hundredweight. 
(c) PAYMENT AMOUNT.—The amount of the direct 
payment to be paid to the producers on a farm for a cov-
ered commodity for a crop year shall be equal to the prod-
uct of the following: 
(1) The payment rate specified in subsection 
(b). 
(2) The payment acres of the covered com-
modity on the farm. 
(3) The payment yield for the covered com-
modity for the farm. 
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(d) TIME FOR PAYMENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), in the case of each of the 2008 through 
2012 crop years, the Secretary may not make direct 
payments before October 1 of the calendar year in 
which the crop of the covered commodity is har-
vested. 
(2) ADVANCE PAYMENTS.— 
(A) OPTION.— 
(i) IN GENERAL.—At the option of the 
producers on a farm, the Secretary shall 
pay in advance up to 22 percent of the di-
rect payment for a covered commodity for 
any of the 2008 through 2011 crop years 
to the producers on a farm. 
(ii) 2008 CROP
YEAR.—If the pro-
ducers on a farm elect to receive advance 
direct payments under clause (i) for a cov-
ered commodity for the 2008 crop year, as 
soon as practicable after the election, the 
Secretary shall make the advance direct 
payment to the producers on the farm. 
(B) MONTH.— 
(i) SELECTION.—Subject to clauses 
(ii) and (iii), the producers on a farm shall 
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select the month during which the advance 
payment for a crop year will be made. 
(ii) OPTIONS.—The month selected 
may be any month during the period— 
(I) beginning on December 1 of 
the calendar year before the calendar 
year in which the crop of the covered 
commodity is harvested; and 
(II) ending during the month 
within which the direct payment 
would otherwise be made. 
(iii) CHANGE.—The producers on a 
farm may change the selected month for a 
subsequent advance payment by providing 
advance notice to the Secretary. 
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a 
producer on a farm that receives an advance direct 
payment for a crop year ceases to be a producer on 
that farm, or the extent to which the producer 
shares in the risk of producing a crop changes, be-
fore the date the remainder of the direct payment is 
made, the producer shall be responsible for repaying 
the Secretary the applicable amount of the advance 
payment, as determined by the Secretary. 
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SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS. 
(a) PAYMENT REQUIRED.—Except as provided in 
section 1105, for each of the 2008 through 2012 crop 
years for each covered commodity, the Secretary shall 
make counter-cyclical payments to producers on farms for 
which payment yields and base acres are established with 
respect to the covered commodity if the Secretary deter-
mines that the effective price for the covered commodity 
is less than the target price for the covered commodity. 
(b) EFFECTIVE PRICE.— 
(1) COVERED
COMMODITIES
OTHER
THAN 
RICE.—Except as provided in paragraph (2), for 
purposes of subsection (a), the effective price for a 
covered commodity is equal to the sum of the fol-
lowing: 
(A) The higher of the following: 
(i) The national average market price 
received by producers during the 12-month 
marketing year for the covered commodity, 
as determined by the Secretary. 
(ii) The national average loan rate for 
a marketing assistance loan for the covered 
commodity in effect for the applicable pe-
riod under subtitle B. 
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(B) The payment rate in effect for the cov-
ered commodity under section 1103 for the pur-
pose of making direct payments with respect to 
the covered commodity. 
(2) RICE.—In the case of long grain rice and 
medium grain rice, for purposes of subsection (a), 
the effective price for each type or class of rice is 
equal to the sum of the following: 
(A) The higher of the following: 
(i) The national average market price 
received by producers during the 12-month 
marketing year for the type or class of 
rice, as determined by the Secretary. 
(ii) The national average loan rate for 
a marketing assistance loan for the type or 
class of rice in effect for the applicable pe-
riod under subtitle B. 
(B) The payment rate in effect for the 
type or class of rice under section 1103 for the 
purpose of making direct payments with respect 
to the type or class of rice. 
(c) TARGET PRICE.— 
(1) 2008 CROP
YEAR.—For purposes of the 
2008 crop year, the target prices for covered com-
modities shall be as follows: 
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(A) Wheat, $3.92 per bushel. 
(B) Corn, $2.63 per bushel. 
(C) Grain sorghum, $2.57 per bushel. 
(D) Barley, $2.24 per bushel. 
(E) Oats, $1.44 per bushel. 
(F) Upland cotton, $0.7125 per pound. 
(G) Long grain rice, $10.50 per hundred-
weight. 
(H) Medium grain rice, $10.50 per hun-
dredweight. 
(I) Soybeans, $5.80 per bushel. 
(J) Other oilseeds, $10.10 per hundred-
weight. 
(2) 2009 CROP
YEAR.—For purposes of the 
2009 crop year, the target prices for covered com-
modities shall be as follows: 
(A) Wheat, $3.92 per bushel. 
(B) Corn, $2.63 per bushel. 
(C) Grain sorghum, $2.57 per bushel. 
(D) Barley, $2.24 per bushel. 
(E) Oats, $1.44 per bushel. 
(F) Upland cotton, $0.7125 per pound. 
(G) Long grain rice, $10.50 per hundred-
weight. 
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(H) Medium grain rice, $10.50 per hun-
dredweight. 
(I) Soybeans, $5.80 per bushel. 
(J) Other oilseeds, $10.10 per hundred-
weight. 
(K) Dry peas, $8.32 per hundredweight. 
(L) Lentils, $12.81 per hundredweight. 
(M) Small chickpeas, $10.36 per hundred-
weight. 
(N) Large chickpeas, $12.81 per hundred-
weight. 
(3) SUBSEQUENT CROP YEARS.—For purposes 
of each of the 2010 through 2012 crop years, the 
target prices for covered commodities shall be as fol-
lows: 
(A) Wheat, $4.17 per bushel. 
(B) Corn, $2.63 per bushel. 
(C) Grain sorghum, $2.63 per bushel. 
(D) Barley, $2.63 per bushel. 
(E) Oats, $1.79 per bushel. 
(F) Upland cotton, $0.7125 per pound. 
(G) Long grain rice, $10.50 per hundred-
weight. 
(H) Medium grain rice, $10.50 per hun-
dredweight. 
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(I) Soybeans, $6.00 per bushel. 
(J) Other oilseeds, $12.68 per hundred-
weight. 
(K) Dry peas, $8.32 per hundredweight. 
(L) Lentils, $12.81 per hundredweight. 
(M) Small chickpeas, $10.36 per hundred-
weight. 
(N) Large chickpeas, $12.81 per hundred-
weight. 
(d) PAYMENT RATE.—The payment rate used to 
make counter-cyclical payments with respect to a covered 
commodity for a crop year shall be equal to the difference 
between— 
(1) the target price for the covered commodity; 
and 
(2) the effective price determined under sub-
section (b) for the covered commodity. 
(e) PAYMENT AMOUNT.—If counter-cyclical pay-
ments are required to be paid under this section for any 
of the 2008 through 2012 crop years of a covered com-
modity, the amount of the counter-cyclical payment to be 
paid to the producers on a farm for that crop year shall 
be equal to the product of the following: 
(1) The payment rate specified in subsection 
(d). 
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(2) The payment acres of the covered com-
modity on the farm. 
(3) The payment yield for the covered com-
modity for the farm. 
(f) TIME FOR PAYMENTS.— 
(1) GENERAL
RULE.—Except as provided in 
paragraph (2), if the Secretary determines under 
subsection (a) that counter-cyclical payments are re-
quired to be made under this section for the crop of 
a covered commodity, beginning October 1, or as 
soon as practicable thereafter, after the end of the 
marketing year for the covered commodity, the Sec-
retary shall make the counter-cyclical payments for 
the crop. 
(2) AVAILABILITY OF PARTIAL PAYMENTS.— 
(A) IN GENERAL.—If, before the end of 
the 12-month marketing year for a covered 
commodity, 
the 
Secretary 
estimates 
that 
counter-cyclical payments will be required for 
the crop of the covered commodity, the Sec-
retary shall give producers on a farm the option 
to receive partial payments of the counter-cycli-
cal payment projected to be made for that crop 
of the covered commodity. 
(B) ELECTION.— 
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(i) IN GENERAL.—The Secretary shall 
allow producers on a farm to make an elec-
tion to receive partial payments for a cov-
ered commodity under subparagraph (A) 
at any time but not later than 60 days 
prior to the end of the marketing year for 
that covered commodity. 
(ii) DATE
OF
ISSUANCE.—The Sec-
retary shall issue the partial payment after 
the date of an announcement by the Sec-
retary but not later than 30 days prior to 
the end of the marketing year. 
(3) TIME FOR PARTIAL PAYMENTS.—When the 
Secretary makes partial payments for a covered 
commodity for any of the 2008 through 2010 crop 
years— 
(A) the first partial payment shall be made 
after completion of the first 180 days of the 
marketing year for the covered commodity; and 
(B) the final partial payment shall be 
made beginning October 1, or as soon as prac-
ticable thereafter, after the end of the applica-
ble marketing year for the covered commodity. 
(4) AMOUNT OF PARTIAL PAYMENT.— 
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(A) FIRST PARTIAL PAYMENT.—For each 
of the 2008 through 2010 crops of a covered 
commodity, the first partial payment under 
paragraph (3) to the producers on a farm may 
not exceed 40 percent of the projected counter- 
cyclical payment for the covered commodity for 
the crop year, as determined by the Secretary. 
(B) FINAL PAYMENT.—The final payment 
for a covered commodity for a crop year shall 
be equal to the difference between— 
(i) the actual counter-cyclical payment 
to be made to the producers for the cov-
ered commodity for that crop year; and 
(ii) the amount of the partial payment 
made to the producers under subparagraph 
(A). 
(5) REPAYMENT.—The producers on a farm 
that receive a partial payment under this subsection 
for a crop year shall repay to the Secretary the 
amount, if any, by which the total of the partial pay-
ments exceed the actual counter-cyclical payment to 
be made for the covered commodity for that crop 
year. 
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SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM. 
(a) AVAILABILITY AND ELECTION OF ALTERNATIVE 
APPROACH.— 
(1) AVAILABILITY OF AVERAGE CROP REVENUE 
ELECTION PAYMENTS.—As an alternative to receiv-
ing counter-cyclical payments under section 1104 or 
1304 and in exchange for a 20-percent reduction in 
direct payments under section 1103 or 1303 and a 
30-percent reduction in marketing assistance loan 
rates under section 1202 or 1307, with respect to all 
covered commodities and peanuts on a farm, during 
each of the 2009, 2010, 2011, and 2012 crop years, 
the Secretary shall give the producers on the farm 
an opportunity to make an irrevocable election to in-
stead receive average crop revenue election (referred 
to in this section as ‘‘ACRE’’) payments under this 
section for the initial crop year for which the elec-
tion is made through the 2012 crop year. 
(2) LIMITATION.— 
(A) IN
GENERAL.—The total number of 
planted acres for which the producers on a farm 
may receive ACRE payments under this section 
may not exceed the total base acreage for all 
covered commodities and peanuts on the farm. 
(B) ELECTION.—If the total number of 
planted acres to all covered commodities and 
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peanuts of the producers on a farm exceeds the 
total base acreage of the farm, the producers on 
the farm may choose which planted acres to en-
roll in the program under this section. 
(3) ELECTION; TIME FOR ELECTION.— 
(A) IN
GENERAL.—The Secretary shall 
provide notice to producers regarding the op-
portunity to make each of the elections de-
scribed in paragraph (1). 
(B) NOTICE REQUIREMENTS.—The notice 
shall include— 
(i) notice of the opportunity of the 
producers on a farm to make the election; 
and 
(ii) information regarding the manner 
in which the election must be made and 
the time periods and manner in which no-
tice of the election must be submitted to 
the Secretary. 
(4) ELECTION DEADLINE.—Within the time pe-
riod and in the manner prescribed pursuant to para-
graph (3), all of the producers on a farm shall sub-
mit to the Secretary notice of an election made 
under paragraph (1). 
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(5) EFFECT
OF
FAILURE
TO
MAKE
ELEC-
TION.—If all of the producers on a farm fail to 
make an election under paragraph (1), make dif-
ferent elections under paragraph (1), or fail to time-
ly notify the Secretary of the election made, as re-
quired by paragraph (4), all of the producers on the 
farm shall be deemed to have made the election to 
receive counter-cyclical payments under section 1104 
or 1304 for all covered commodities and peanuts on 
the farm, and to otherwise not have made the elec-
tion described in paragraph (1), for the applicable 
crop years. 
(b) PAYMENTS REQUIRED.— 
(1) IN GENERAL.—In the case of producers on 
a farm who make an election under subsection (a) 
to receive ACRE payments for any of the 2009 
through 2012 crop years for all covered commodities 
and peanuts, the Secretary shall make ACRE pay-
ments available to the producers on a farm in ac-
cordance with this subsection. 
(2) ACRE PAYMENT.— 
(A) IN GENERAL.—Subject to paragraph 
(3), in the case of producers on a farm de-
scribed in paragraph (1), the Secretary shall 
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make ACRE payments available to the pro-
ducers on a farm for each crop year if— 
(i) the actual State revenue for the 
crop year for the covered commodity or 
peanuts in the State determined under 
subsection (c); is less than 
(ii) the ACRE program guarantee for 
the crop year for the covered commodity or 
peanuts in the State determined under 
subsection (d). 
(B) INDIVIDUAL
LOSS.—The Secretary 
shall make ACRE payments available to the 
producers on a farm in a State for a crop year 
only if (as determined by the Secretary)— 
(i) the actual farm revenue for the 
crop year for the covered commodity or 
peanuts, as determined under subsection 
(e); is less than 
(ii) the farm ACRE benchmark rev-
enue for the crop year for the covered com-
modity or peanuts, as determined under 
subsection (f). 
(3) TIME FOR PAYMENTS.—In the case of each 
of the 2009 through 2012 crop years, the Secretary 
shall make ACRE payments beginning October 1, or 
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as soon as practicable thereafter, after the end of 
the applicable marketing year for the covered com-
modity or peanuts. 
(c) ACTUAL STATE REVENUE.— 
(1) IN GENERAL.—For purposes of subsection 
(b)(2)(A), the amount of the actual State revenue 
for a crop year of a covered commodity or peanuts 
shall equal the product obtained by multiplying— 
(A) the actual State yield for each planted 
acre for the crop year for the covered com-
modity or peanuts determined under paragraph 
(2); and 
(B) the national average market price for 
the crop year for the covered commodity or pea-
nuts determined under paragraph (3). 
(2) ACTUAL
STATE
YIELD.—For purposes of 
paragraph (1)(A), the actual State yield for each 
planted acre for a crop year for a covered commodity 
or peanuts in a State shall equal (as determined by 
the Secretary)— 
(A) the quantity of the covered commodity 
or peanuts that is produced in the State during 
the crop year; divided by 
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(B) the number of acres that are planted 
to the covered commodity or peanuts in the 
State during the crop year. 
(3) NATIONAL AVERAGE MARKET PRICE.—For 
purposes of paragraph (1)(B), the national average 
market price for a crop year for a covered com-
modity or peanuts in a State shall equal the greater 
of— 
(A) the national average market price re-
ceived by producers during the 12-month mar-
keting year for the covered commodity or pea-
nuts, as determined by the Secretary; or 
(B) the marketing assistance loan rate for 
the covered commodity or peanuts under section 
1202 or 1307, as reduced under subsection 
(a)(1). 
(d) ACRE PROGRAM GUARANTEE.— 
(1) AMOUNT.— 
(A) IN GENERAL.—For purposes of sub-
section (b)(2)(A) and subject to subparagraph 
(B), the ACRE program guarantee for a crop 
year for a covered commodity or peanuts in a 
State shall equal 90 percent of the product ob-
tained by multiplying— 
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(i) the benchmark State yield for each 
planted acre for the crop year for the cov-
ered commodity or peanuts in a State de-
termined under paragraph (2); and 
(ii) the ACRE program guarantee 
price for the crop year for the covered 
commodity or peanuts determined under 
paragraph (3). 
(B) 
MINIMUM
AND
MAXIMUM
GUAR-
ANTEE.—In the case of each of the 2010 
through 2012 crop years, the ACRE program 
guarantee for a crop year for a covered com-
modity or peanuts under subparagraph (A) 
shall not decrease or increase more than 10 
percent from the guarantee for the preceding 
crop year. 
(2) BENCHMARK STATE YIELD.— 
(A) IN GENERAL.—For purposes of para-
graph (1)(A)(i), subject to subparagraph (B), 
the benchmark State yield for each planted acre 
for a crop year for a covered commodity or pea-
nuts in a State shall equal the average yield per 
planted acre for the covered commodity or pea-
nuts in the State for the most recent 5 crop 
year yields, excluding each of the crop years 
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with the highest and lowest yields, using Na-
tional Agricultural Statistics Service data. 
(B) ASSIGNED
YIELD.—If the Secretary 
cannot establish the benchmark State yield for 
each planted acre for a crop year for a covered 
commodity or peanuts in a State in accordance 
with subparagraph (A) or if the yield deter-
mined under subparagraph (A) is an unrepre-
sentative average yield for the State (as deter-
mined by the Secretary), the Secretary shall as-
sign a benchmark State yield for each planted 
acre for the crop year for the covered com-
modity or peanuts in the State on the basis 
of— 
(i) previous average yields for a period 
of 5 crop years, excluding each of the crop 
years with the highest and lowest yields; or 
(ii) benchmark State yields for plant-
ed acres for the crop year for the covered 
commodity or peanuts in similar States. 
(3) ACRE PROGRAM GUARANTEE PRICE.—For 
purposes of paragraph (1)(A)(ii), the ACRE pro-
gram guarantee price for a crop year for a covered 
commodity or peanuts in a State shall be the simple 
average of the national average market price re-
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ceived by producers of the covered commodity or 
peanuts for the most recent 2 crop years, as deter-
mined by the Secretary. 
(4) STATES
WITH
IRRIGATED
AND
NONIRRI-
GATED LAND.—In the case of a State in which at 
least 25 percent of the acreage planted to a covered 
commodity or peanuts in the State is irrigated and 
at least 25 percent of the acreage planted to the cov-
ered commodity or peanuts in the State is not irri-
gated, the Secretary shall calculate a separate 
ACRE program guarantee for the irrigated and non-
irrigated areas of the State for the covered com-
modity or peanuts. 
(e) ACTUAL FARM REVENUE.—For purposes of sub-
section (b)(2)(B)(i), the amount of the actual farm rev-
enue for a crop year for a covered commodity or peanuts 
shall equal the amount determined by multiplying— 
(1) the actual yield for the covered commodity 
or peanuts of the producers on the farm; and 
(2) the national average market price for the 
crop year for the covered commodity or peanuts de-
termined under subsection (c)(3). 
(f) FARM ACRE BENCHMARK REVENUE.—For pur-
poses of subsection (b)(2)(B)(ii), the farm ACRE bench-
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mark revenue for the crop year for a covered commodity 
or peanuts shall equal the sum obtained by adding— 
(1) the amount determined by multiplying— 
(A) the average yield per planted acre for 
the covered commodity or peanuts of the pro-
ducers on the farm for the most recent 5 crop 
years, excluding each of the crop years with the 
highest and lowest yields; and 
(B) the ACRE program guarantee price 
for the applicable crop year for the covered 
commodity or peanuts in a State determined 
under subsection (d)(3); and 
(2) the amount of the per acre crop insurance 
premium required to be paid by the producers on the 
farm for the applicable crop year for the covered 
commodity or peanuts on the farm. 
(g) PAYMENT AMOUNT.—If ACRE payments are re-
quired to be paid for any of the 2009 through 2012 crop 
years of a covered commodity or peanuts under this sec-
tion, the amount of the ACRE payment to be paid to the 
producers on the farm for the crop year under this section 
shall be equal to the product obtained by multiplying— 
(1) the lesser of— 
(A) the difference between— 
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(i) the ACRE program guarantee for 
the crop year for the covered commodity or 
peanuts in the State determined under 
subsection (d); and 
(ii) the actual State revenue from the 
crop year for the covered commodity or 
peanuts in the State determined under 
subsection (c); and 
(B) 25 percent of the ACRE program 
guarantee for the crop year for the covered 
commodity or peanuts in the State determined 
under subsection (d); 
(2)(A) for each of the 2009 through 2011 crop 
years, 83.3 percent of the acreage planted or consid-
ered planted to the covered commodity or peanuts 
for harvest on the farm in the crop year; and 
(B) for the 2012 crop year, 85 percent of the 
acreage planted or considered planted to the covered 
commodity or peanuts for harvest on the farm in the 
crop year; and 
(3) the quotient obtained by dividing— 
(A) the average yield per planted acre for 
the covered commodity or peanuts of the pro-
ducers on the farm for the most recent 5 crop 
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years, excluding each of the crop years with the 
highest and lowest yields; by 
(B) the benchmark State yield for the crop 
year, as determined under subsection (d)(2). 
SEC. 1106. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION OF PROVISION OF PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on 
a farm may receive direct payments, counter-cyclical 
payments, or average crop revenue election payments 
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.); 
(C) to comply with the planting flexibility 
requirements of section 1107; 
(D) to use the land on the farm, in a 
quantity equal to the attributable base acres for 
the farm and any base acres for peanuts for the 
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farm under subtitle C, for an agricultural or 
conserving use, and not for a nonagricultural 
commercial, industrial, or residential use, as de-
termined by the Secretary; and 
(E) to effectively control noxious weeds 
and otherwise maintain the land in accordance 
with sound agricultural practices, as determined 
by the Secretary, if the agricultural or con-
serving use involves the noncultivation of any 
portion of the land referred to in subparagraph 
(D). 
(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 
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interest of the producers on a farm in base 
acres for which direct payments or counter-cy-
clical payments are made, or on which average 
crop revenue election payments are based, shall 
result in the termination of the direct pay-
ments, counter-cyclical payments, or average 
crop revenue election payments to the extent 
the payments are made or based on the base 
acres, unless the transferee or owner of the 
acreage agrees to assume all obligations under 
subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a di-
rect payment, counter-cyclical payment, or average 
crop revenue election payment 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) REPORTS.— 
(1) ACREAGE REPORTS.—As a condition on the 
receipt of any benefits under this subtitle or subtitle 
B, the Secretary shall require producers on a farm 
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to submit to the Secretary annual acreage reports 
with respect to all cropland on the farm. 
(2) PRODUCTION REPORTS.—As a condition on 
the receipt of any benefits under this subtitle or sub-
title B, the Secretary shall require producers on a 
farm that receive payments under section 1105 to 
submit to the Secretary annual production reports 
with respect to all covered commodities and peanuts 
produced on the farm. 
(3) PENALTIES.—No penalty with respect to 
benefits under this subtitle or subtitle B shall be as-
sessed against the producers on a farm for an inac-
curate acreage or production report unless the pro-
ducers on the farm knowingly and willfully falsified 
the acreage or production report. 
(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 direct payments, counter-cyclical 
payments, or average crop revenue election payments 
among the producers on a farm on a fair and equitable 
basis. 
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SEC. 1107. PLANTING FLEXIBILITY. 
(a) PERMITTED CROPS.—Subject to subsection (b), 
any commodity or crop may be planted on base acres on 
a farm. 
(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. 
(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— 
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(d) PLANTING TRANSFERABILITY PILOT PROJECT.— 
(1) PILOT
PROJECT
AUTHORIZED.—Notwith-
standing paragraphs (1) and (2) of subsection (b) 
and in addition to the exceptions provided in sub-
section (c), the Secretary shall carry out a pilot 
project to permit the planting of cucumbers, green 
peas, lima beans, pumpkins, snap beans, sweet corn, 
and tomatoes grown for processing on base acres 
during each of the 2009 through 2012 crop years. 
(2) PILOT PROJECT STATES AND ACRES.—The 
number of base acres eligible during each crop year 
for the pilot project under paragraph (1) shall be— 
(A) 9,000 acres in the State of Illinois; 
(B) 9,000 acres in the State of Indiana; 
(C) 1,000 acres in the State of Iowa; 
(D) 9,000 acres in the State of Michigan; 
(E) 34,000 acres in the State of Min-
nesota; 
(F) 4,000 acres in the State of Ohio; and 
(G) 9,000 acres in the State of Wisconsin. 
(3) CONTRACT
AND
MANAGEMENT
REQUIRE-
MENTS.—To be eligible for selection to participate in 
the pilot project, the producers on a farm shall— 
(A) demonstrate to the Secretary that the 
producers on the farm have entered into a con-
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tract to produce a crop of a commodity speci-
fied in paragraph (1) for processing; 
(B) agree to produce the crop as part of 
a program of crop rotation on the farm to 
achieve agronomic and pest and disease man-
agement benefits; and 
(C) provide evidence of the disposition of 
the crop. 
(4) TEMPORARY REDUCTION IN BASE ACRES.— 
The base acres on a farm for a crop year shall be 
reduced by an acre for each acre planted under the 
pilot program. 
(5) DURATION
OF
REDUCTIONS.—The reduc-
tion in the base acres of a farm for a crop year 
under paragraph (4) shall expire at the end of the 
crop year. 
(6) RECALCULATION OF BASE ACRES.— 
(A) IN GENERAL.—If the Secretary recal-
culates base acres for a farm while the farm is 
included in the pilot project, the planting and 
production of a crop of a commodity specified 
in paragraph (1) on base acres for which a tem-
porary reduction was made under this section 
shall be considered to be the same as the plant-
ing and production of a covered commodity. 
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(B) PROHIBITION.—Nothing in this para-
graph provides authority for the Secretary to 
recalculate base acres for a farm. 
(7) PILOT IMPACT EVALUATION.— 
(A) IN GENERAL.—The Secretary shall pe-
riodically evaluate the pilot project conducted 
under this subsection to determine the effects of 
the pilot project on the supply and price of— 
(i) fresh fruits and vegetables; and 
(ii) fruits and vegetables for proc-
essing. 
(B) 
DETERMINATION.—An 
evaluation 
under subparagraph (A) shall include a deter-
mination as to whether— 
(i) producers of fresh fruits and vege-
tables are being negatively impacted; and 
(ii) existing production capacities are 
being supplanted. 
(C) REPORT.—As soon as practicable after 
conducting an evaluation under subparagraph 
(A), the Secretary shall submit to the Com-
mittee on Agriculture of the House of Rep-
resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report 
that describes the results of the evaluation. 
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SEC. 1108. SPECIAL RULE FOR LONG GRAIN AND MEDIUM 
GRAIN RICE. 
(a) CALCULATION METHOD.—Subject to subsections 
(b) and (c), for the purposes of determining the amount 
of the counter-cyclical payments to be paid to the pro-
ducers on a farm for long grain rice and medium grain 
rice under section 1104, the base acres of rice on the farm 
shall be apportioned using the 4-year average of the per-
centages of acreage planted in the applicable State to long 
grain rice and medium grain rice during the 2003 through 
2006 crop years, as determined by the Secretary. 
(b) PRODUCER ELECTION.—As an alternative to the 
calculation method described in subsection (a), the Sec-
retary shall provide producers on a farm the opportunity 
to elect to apportion rice base acres on the farm using 
the 4-year average of— 
(1) the percentages of acreage planted on the 
farm to long grain rice and medium grain rice dur-
ing the 2003 through 2006 crop years; 
(2) the percentages of any acreage on the farm 
that the producers were prevented from planting to 
long grain rice and medium grain rice during the 
2003 through 2006 crop years because of drought, 
flood, other natural disaster, or other condition be-
yond the control of the producers, as determined by 
the Secretary; and 
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(3) in the case of a crop year for which a pro-
ducer on a farm elected not to plant to long grain 
and medium grain rice during the 2003 through 
2006 crop years, the percentages of acreage planted 
in the applicable State to long grain rice and me-
dium grain rice, as determined by the Secretary. 
(c) LIMITATION.—In carrying out this section, the 
Secretary shall use the same total base acres, payment 
acres, and payment yields established with respect to rice 
under sections 1101 and 1102 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 7911, 7912), as 
in effect on September 30, 2007, subject to any adjust-
ment under section 1101 of this Act. 
SEC. 1109. PERIOD OF EFFECTIVENESS. 
This subtitle shall be effective beginning with the 
2008 crop year of each covered commodity through the 
2012 crop year. 
Subtitle B—Marketing Assistance 
Loans and Loan Deficiency Pay-
ments 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING 
ASSISTANCE LOANS FOR LOAN COMMOD-
ITIES. 
(a) NONRECOURSE LOANS AVAILABLE.— 
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(1) AVAILABILITY.—For each of the 2008 
through 2012 crops of each loan commodity, the 
Secretary shall make available to producers 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. 
(b) ELIGIBLE PRODUCTION.—The producers on a 
farm shall be eligible for a marketing assistance loan 
under subsection (a) for any quantity of a loan commodity 
produced on the farm. 
(c) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
a marketing assistance loan under subsection (a), 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. 
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(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, $6.22 per hun-
dredweight. 
(13) In the case of lentils, $11.72 per hundred-
weight. 
(14) In the case of small chickpeas, $7.43 per 
hundredweight. 
(15) In the case of graded wool, $1.00 per 
pound. 
(16) In the case of nongraded wool, $0.40 per 
pound. 
(17) In the case of mohair, $4.20 per pound. 
(18) In the case of honey, $0.60 per pound. 
(b) 2009 CROP YEAR.—Except as provided in section 
1105, for purposes of the 2009 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, $2.75 per bushel. 
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(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, $1.85 per bushel. 
(5) In the case of oats, $1.33 per bushel. 
(6) In the case of base quality of upland cotton, 
$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, $9.30 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. 
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(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, $1.00 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, $0.60 per pound. 
(c) 2010 THROUGH 2012 CROP YEARS.—Except as 
provided in section 1105, for purposes of each of the 2010 
through 2012 crop years, 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. 
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(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, 
$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. 
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(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. 
(d) 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 subsections (a)(11), (b)(11), and (c)(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. 
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(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, 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 
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(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 
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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.— 
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(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, 2013, if the 
Secretary determines the adjustment is nec-
essary to— 
(i) minimize potential loan forfeitures; 
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(ii) minimize the accumulation of 
stocks of upland cotton by the Federal 
Government; 
(iii) ensure that upland cotton pro-
duced in the United States can be mar-
keted freely and competitively, both domes-
tically and internationally; and 
(iv) ensure an appropriate transition 
between current-crop and forward-crop 
price quotations, except that the Secretary 
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. 
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(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.— 
(1) 2008 THROUGH 2011 CROP YEARS.—Effec-
tive for each of the 2008 through 2011 crop years, 
the Secretary shall provide cotton storage payments 
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. 
(2) SUBSEQUENT
CROP
YEARS.—Beginning 
with the 2012 crop year, the Secretary shall provide 
cotton storage payments in the same manner, and at 
the same rates as the Secretary provided storage 
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payments for the 2006 crop of cotton, except that 
the rates shall be reduced by 20 percent. 
(h) 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 
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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 2008 through 2012 crop years, the 
Secretary may make loan deficiency payments 
available under this section to producers on a 
farm that produce unshorn pelts or hay and si-
lage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a 
loan commodity or commodity referred to in subsection 
(a)(2) shall be computed by multiplying— 
(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.— 
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(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. 
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(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 2008 
through 2012 crop years, in the case of a producer 
that would be eligible for a loan deficiency payment 
under section 1205 for wheat, barley, or oats, but 
that elects to use acreage planted to the wheat, bar-
ley, or oats for the grazing of livestock, the Sec-
retary 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 2008 through 2012 crop years, with re-
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spect to a producer on a farm that uses acreage 
planted to triticale for the grazing of livestock, 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) the payment yield in effect for the 
calculation of direct payments under sub-
title A with respect to that loan commodity 
on the farm or, in the case of a farm with-
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out a payment yield for that loan com-
modity, an appropriate yield established by 
the Secretary 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 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) the payment yield in effect for the 
calculation of direct payments under sub-
title A with respect to wheat on the farm 
or, in the case of a farm without a pay-
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ment yield for wheat, an appropriate yield 
established by the Secretary in a manner 
consistent with section 1102 of the Farm 
Security and Rural Investment Act of 
2002 (7 U.S.C. 7912). 
(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 2008 through 
2012 crop of wheat, barley, oats, or triticale planted on 
acreage that a producer elects, in the agreement required 
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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 au-
thorized 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 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 
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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 1 
week’s consumption of cotton by domestic mills at 
the seasonally adjusted average rate of the most re-
cent 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 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— 
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(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 week’s 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) SUPPLY.—The term ‘‘supply’’ means, 
using the latest official data of the Bureau of 
the Census, the Department of Agriculture, and 
the Department of the Treasury— 
(i) the carry-over of upland cotton at 
the beginning of the marketing year (ad-
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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. 
(B) 
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 data are available; 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. 
(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. 
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(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 data are available or 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 
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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); 
(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 Har-
monized Tariff Schedule. 
(D) QUOTA
ENTRY
PERIOD.—When a 
quota is established under this subsection, cot-
ton 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 over-
laps an existing quota period or a special quota pe-
riod established under subsection (a). 
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(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall, on a monthly basis, provide eco-
nomic adjustment assistance to domestic users of 
upland cotton in the form of payments for all docu-
mented use of that upland cotton during the pre-
vious monthly period regardless of the origin of the 
upland cotton. 
(2) VALUE OF ASSISTANCE.— 
(A) BEGINNING PERIOD.—During the pe-
riod 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 be-
ginning on August 1, 2012, the value of the as-
sistance provided under paragraph (1) shall be 
3 cents per pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance 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, con-
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vert, or expand land, plant, buildings, equipment, fa-
cilities, or machinery. 
(4) REVIEW
OR
AUDIT.—The Secretary may 
conduct such review or audit of the records of a do-
mestic user under this subsection as the Secretary 
determines necessary to carry out this subsection. 
(5) IMPROPER
USE
OF
ASSISTANCE.—If the 
Secretary determines, after a review or audit of the 
records of the domestic user, that economic adjust-
ment assistance under this subsection was not used 
for the purposes specified in paragraph (3), the do-
mestic 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 subsection 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 enactment of this Act through July 31, 
2013, the Secretary shall carry out a program— 
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(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 cot-
ton produced in the United States; and 
(3) to ensure that extra long staple cotton pro-
duced 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 af-
fecting the competitiveness of such cotton), as deter-
mined by the Secretary, is below the prevailing 
United 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 com-
petitiveness of such cotton), as determined by the 
Secretary, is less than 134 percent of the loan rate 
for extra long staple cotton. 
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(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 sec-
tion 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 subsection, the term ‘‘high moisture state’’ 
means corn or grain sorghum having a moisture con-
tent 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 sor-
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ghum, 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 in-
spected, certified commercial scale, includ-
ing 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 measure-
ments of the standing or stored crop in re-
gions of the United States, as determined 
by the Secretary, that do not have certified 
commercial scales from which certified 
scale tickets may be obtained within rea-
sonable 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 harvested on the 
farm and delivered to, a feedlot, feed mill, or 
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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 deadlines estab-
lished by the Secretary. 
(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 sor-
ghum in a high moisture state harvested on the 
producer’s farm; by 
(B) the lower of the farm program pay-
ment yield used to make counter-cyclical pay-
ments 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 COT-
TON.—For each of the 2008 through 2012 crops of upland 
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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 es-
tablished 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 sub-
section (e), the Secretary may make appropriate adjust-
ments in the loan rates for any loan commodity (other 
than cotton) for differences in grade, type, quality, loca-
tion, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, 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 
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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 na-
tional 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 implement 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 subparagraph (A) shall include— 
(i) the elimination of warehouse loca-
tion differentials; 
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(ii) the establishment of differentials 
for the various quality factors and staple 
lengths of cotton based on a 3-year, 
weighted moving average of the weighted 
designated spot market regions, as deter-
mined 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 ex-
ceeds the premium or discount associated 
with a leaf grade that is 1 better than the 
applicable color grade. 
(C) 
DISCRETIONARY
REVISIONS.—Revi-
sions under subparagraph (A) may include— 
(i) the use of non-spot market price 
data, in addition to spot market price data, 
that would enhance the accuracy of the 
price information used in determining 
quality adjustments under this subsection; 
(ii) adjustments in the premiums or 
discounts associated with upland cotton 
with a staple length of 33 or above due to 
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micronaire with the goal of eliminating any 
unnecessary artificial splits in the calcula-
tions of the premiums or discounts; and 
(iii) such other adjustments as the 
Secretary determines appropriate, after 
consultations conducted in accordance with 
paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR TO REVISION.—In making ad-
justments to the loan rate for cotton (including 
any review of the adjustments) as provided in 
this subsection, the Secretary shall consult with 
representatives of the United States cotton in-
dustry. 
(B) INAPPLICABILITY OF FEDERAL ADVI-
SORY 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 qual-
ity adjustments implemented pursuant to this sub-
section and may make further revisions to the ad-
ministration of the loan program for upland cotton, 
by— 
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(A) revoking or revising any actions taken 
under paragraph (2)(B); or 
(B) revoking or revising any actions taken 
or authorized to be taken under paragraph 
(2)(C). 
(e) RICE.—The Secretary shall not make adjust-
ments in the loan rates for long grain rice and medium 
grain rice, except for differences in grade and quality (in-
cluding 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 as-
signed to a farm pursuant to section 1302 of 
the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 7952), as in effect on Sep-
tember 30, 2007, subject to any adjustment 
under section 1302 of this Act. 
(B) COVERED
COMMODITIES.—The term 
‘‘base acres’’, with respect to a covered com-
modity, has the meaning given the term in sec-
tion 1101. 
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(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 pay-
ment’’ 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 wheth-
er 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-cy-
clical payments are made; and 
(B) in the case of direct payments for each 
of the 2009 through 2011 crop years, 83.3 per-
cent 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 pay-
ments and the yield established for counter-cyclical 
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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 pro-
ducing 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 ex-
istence 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; 
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(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 deter-
mine the payment rate for counter-cyclical pay-
ments. 
(10) UNITED
STATES.—The term ‘‘United 
States’’, when used in a geographical sense, means 
all of the States. 
SEC. 1302. BASE ACRES FOR PEANUTS FOR A FARM. 
(a) ADJUSTMENT
OF BASE ACREAGE
FOR PEA-
NUTS.— 
(1) IN GENERAL.—The Secretary shall provide 
for an adjustment, as appropriate, in the base acres 
for peanuts for a farm whenever any of the following 
circumstances occur: 
(A) A conservation reserve contract en-
tered into under section 1231 of the Food Secu-
rity 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. 
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(B) Cropland is released from coverage 
under a conservation reserve contract by the 
Secretary, or was released during the period be-
ginning 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 In-
vestment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acre-
age 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 Security 
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 subpara-
graph (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 sub-
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section or a prorated payment under the conserva-
tion reserve contract, but not both. 
(b) PREVENTION OF EXCESS BASE ACRES FOR PEA-
NUTS.— 
(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 ac-
tual 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 para-
graph (1), the Secretary shall include the following: 
(A) Any base acres for the farm for a cov-
ered commodity. 
(B) Any acreage on the farm enrolled in 
the conservation 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 pro-
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ducing an agricultural commodity on the acre-
age. 
(D) Any eligible pulse crop acreage, which 
shall be determined in the same manner as eli-
gible oilseed acreage under section 1101(a)(2) 
of the Farm Security and Rural Investment Act 
of 2002 (7 U.S.C. 7911(a)(2)). 
(E) If the Secretary designates additional 
oilseeds, any eligible oilseed 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)). 
(3) SELECTION OF ACRES.—The Secretary shall 
give the owner of the farm the opportunity to select 
the base acres for peanuts or the base acres for cov-
ered commodities against which the reduction re-
quired by paragraph (1) will be made. 
(4) EXCEPTION FOR DOUBLE-CROPPED ACRE-
AGE.—In applying paragraph (1), the Secretary 
shall make an exception in the case of double crop-
ping, as determined by the Secretary. 
(5) COORDINATED APPLICATION OF REQUIRE-
MENTS.—The Secretary shall take into account sec-
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tion 1101(b) when applying the requirements of this 
subsection. 
(c) REDUCTION IN BASE ACRES.— 
(1) REDUCTION AT OPTION OF OWNER.— 
(A) IN GENERAL.—The owner of a farm 
may reduce, at any time, the base acres for 
peanuts for the farm. 
(B) EFFECT OF REDUCTION.—A reduction 
under subparagraph (A) shall be permanent 
and made in a manner prescribed by the Sec-
retary. 
(2) REQUIRED ACTION BY SECRETARY.— 
(A) IN
GENERAL.—The Secretary shall 
proportionately reduce base acres on a farm for 
peanuts for land that has been subdivided and 
developed for multiple residential units or other 
nonfarming uses if the size of the tracts and 
the density of the subdivision is such that the 
land is unlikely to return to the previous agri-
cultural use, unless the producers on the farm 
demonstrate that the land— 
(i) remains devoted to commercial ag-
ricultural production; or 
(ii) is likely to be returned to the pre-
vious agricultural use. 
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(B) REQUIREMENT.—The Secretary shall 
establish procedures to identify land described 
in subparagraph (A). 
(3) REVIEW AND REPORT.—Each year, to en-
sure, to the maximum extent practicable, that pay-
ments are received only by producers, the Secretary 
shall submit to Congress a report that describes the 
results of the actions taken under paragraph (2). 
(d) TREATMENT OF FARMS WITH LIMITED BASE 
ACRES.— 
(1) PROHIBITION
ON
PAYMENTS.—Except as 
provided in paragraph (2) and notwithstanding any 
other provision of this title, a producer on a farm 
may not receive direct payments, counter-cyclical 
payments, or average crop revenue election payments 
if the sum of the base acres of the farm is 10 acres 
or less, as determined by the Secretary. 
(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to a farm owned by— 
(A) a socially disadvantaged farmer or 
rancher (as defined in section 355(e) of the 
Consolidated Farm and Rural Development Act 
(7 U.S.C. 2003(e)); or 
(B) a limited resource farmer or rancher, 
as defined by the Secretary. 
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(3) DATA
COLLECTION
AND
PUBLICATION.— 
The Secretary shall— 
(A) collect and publish segregated data 
and survey information about the farm profiles, 
utilization of land, and crop production; and 
(B) perform an evaluation on the supply 
and price of fruits and vegetables based on the 
effects of suspension of base acres under this 
section. 
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEA-
NUTS. 
(a) PAYMENT REQUIRED.—For each of the 2008 
through 2012 crop years for peanuts, the Secretary shall 
make direct payments to the producers on a farm for 
which a payment yield and base acres for peanuts are es-
tablished. 
(b) PAYMENT RATE.—Except as provided in section 
1105, the payment rate used to make direct payments 
with respect to peanuts for a crop year shall be equal to 
$36 per ton. 
(c) PAYMENT AMOUNT.—The amount of the direct 
payment to be paid to the producers on a farm for peanuts 
for a crop year shall be equal to the product of the fol-
lowing: 
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(1) The payment rate specified in subsection 
(b). 
(2) The payment acres on the farm. 
(3) The payment yield for the farm. 
(d) TIME FOR PAYMENT.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), in the case of each of the 2008 through 
2012 crop years, the Secretary may not make direct 
payments under this section before October 1 of the 
calendar year in which the crop is harvested. 
(2) ADVANCE PAYMENTS.— 
(A) OPTION.— 
(i) IN GENERAL.—At the option of the 
producers on a farm, the Secretary shall 
pay in advance up to 22 percent of the di-
rect payment for peanuts for any of the 
2008 through 2011 crop years to the pro-
ducers on a farm. 
(ii) 2008 CROP
YEAR.—If the pro-
ducers on a farm elect to receive advance 
direct payments under clause (i) for pea-
nuts for the 2008 crop year, as soon as 
practicable after the election, the Secretary 
shall make the advance direct payment to 
the producers on the farm. 
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(B) MONTH.— 
(i) SELECTION.—Subject to clauses 
(ii) and (iii), the producers on a farm shall 
select the month during which the advance 
payment for a crop year will be made. 
(ii) OPTIONS.—The month selected 
may be any month during the period— 
(I) beginning on December 1 of 
the calendar year before the calendar 
year in which the crop of peanuts is 
harvested; and 
(II) ending during the month 
within which the direct payment 
would otherwise be made. 
(iii) CHANGE.—The producers on a 
farm may change the selected month for a 
subsequent advance payment by providing 
advance notice to the Secretary. 
(3) REPAYMENT OF ADVANCE PAYMENTS.—If a 
producer on a farm that receives an advance direct 
payment for a crop year ceases to be a producer on 
that farm, or the extent to which the producer 
shares in the risk of producing a crop changes, be-
fore the date the remainder of the direct payment is 
made, the producer shall be responsible for repaying 
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the Secretary the applicable amount of the advance 
payment, as determined by the Secretary. 
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS FOR PEANUTS. 
(a) PAYMENT REQUIRED.—Except as provided in 
section 1105, for each of the 2008 through 2012 crop 
years for peanuts, the Secretary shall make counter-cycli-
cal payments to producers on farms for which payment 
yields and base acres for peanuts are established if the 
Secretary determines that the effective price for peanuts 
is less than the target price for peanuts. 
(b) EFFECTIVE PRICE.—For purposes of subsection 
(a), the effective price for peanuts is equal to the sum 
of the following: 
(1) The higher of the following: 
(A) The national average market price for 
peanuts received by producers during the 12- 
month marketing year for peanuts, as deter-
mined by the Secretary. 
(B) The national average loan rate for a 
marketing assistance loan for peanuts in effect 
for the applicable period under this subtitle. 
(2) The payment rate in effect for peanuts 
under section 1303 for the purpose of making direct 
payments. 
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(c) TARGET PRICE.—For purposes of subsection (a), 
the target price for peanuts shall be equal to $495 per 
ton. 
(d) PAYMENT RATE.—The payment rate used to 
make counter-cyclical payments for a crop year shall be 
equal to the difference between— 
(1) the target price for peanuts; and 
(2) the effective price determined under sub-
section (b) for peanuts. 
(e) PAYMENT AMOUNT.—If counter-cyclical pay-
ments are required to be paid for any of the 2008 through 
2012 crops of peanuts, the amount of the counter-cyclical 
payment to be paid to the producers on a farm for that 
crop year shall be equal to the product of the following: 
(1) The payment rate specified in subsection 
(d). 
(2) The payment acres on the farm. 
(3) The payment yield for the farm. 
(f) TIME FOR PAYMENTS.— 
(1) GENERAL
RULE.—Except as provided in 
paragraph (2), if the Secretary determines under 
subsection (a) that counter-cyclical payments are re-
quired to be made under this section for a crop of 
peanuts, beginning October 1, or as soon as prac-
ticable after the end of the marketing year, the Sec-
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retary shall make the counter-cyclical payments for 
the crop. 
(2) AVAILABILITY OF PARTIAL PAYMENTS.— 
(A) IN GENERAL.—If, before the end of 
the 12-month marketing year, the Secretary es-
timates that counter-cyclical payments will be 
required under this section for a crop year, the 
Secretary shall give producers on a farm the 
option to receive partial payments of the 
counter-cyclical payment projected to be made 
for the crop. 
(B) ELECTION.— 
(i) IN GENERAL.—The Secretary shall 
allow producers on a farm to make an elec-
tion to receive partial payments under sub-
paragraph (A) at any time but not later 
than 60 days prior to the end of the mar-
keting year for the crop. 
(ii) DATE
OF
ISSUANCE.—The Sec-
retary shall issue the partial payment after 
the date of an announcement by the Sec-
retary but not later than 30 days prior to 
the end of the marketing year. 
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(ii) the amount of the partial payment 
made to the producers under subparagraph 
(A). 
(5) REPAYMENT.—The producers on a farm 
that receive a partial payment under this subsection 
for a crop year shall repay to the Secretary the 
amount, if any, by which the total of the partial pay-
ments exceed the actual counter-cyclical payment to 
be made for that crop year. 
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION ON PROVISION OF PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on 
a farm may receive direct payments or counter-cycli-
cal payments under this subtitle, or average crop 
revenue election payments under section 1105, with 
respect to the farm, the producers shall agree, dur-
ing 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.); 
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(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.); 
(C) to comply with the planting flexibility 
requirements of section 1306; 
(D) to use the land on the farm, in a 
quantity equal to the attributable base acres for 
peanuts and any base acres for the farm under 
subtitle A, for an agricultural or conserving use, 
and not for a nonagricultural commercial, in-
dustrial, or residential use, as determined by 
the Secretary; and 
(E) to effectively control noxious weeds 
and otherwise maintain the land in accordance 
with sound agricultural practices, as determined 
by the Secretary, if the agricultural or con-
serving use involves the noncultivation of any 
portion of the land referred to in subparagraph 
(D). 
(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 
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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 in the base 
acres for peanuts for which direct payments or 
counter-cyclical payments are made, or on 
which average crop revenue election payments 
are based, shall result in the termination of the 
direct payments, counter-cyclical payments, or 
average crop revenue election payments to the 
extent the payments are made or based on the 
base acres, unless the transferee or owner of 
the acreage agrees to assume all obligations 
under subsection (a). 
(B) EFFECTIVE
DATE.—The termination 
shall take effect on the date determined by the 
Secretary. 
(2) EXCEPTION.—If a producer entitled to a di-
rect payment, counter-cyclical payment, or average 
crop revenue election payment dies, becomes incom-
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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.— 
(1) IN GENERAL.—As a condition on the receipt 
of any benefits under this subtitle, the Secretary 
shall require producers on a farm to submit to the 
Secretary annual acreage reports with respect to all 
cropland on the farm. 
(2) PENALTIES.—No penalty with respect to 
benefits under this subtitle shall be assessed against 
the producers on a farm for an inaccurate acreage 
report unless the producers on the farm knowingly 
and willfully falsified the acreage report. 
(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 direct payments, counter-cyclical 
payments, or average crop revenue election payments 
under section 1105 among the producers on a farm on 
a fair and equitable basis. 
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SEC. 1306. PLANTING FLEXIBILITY. 
(a) PERMITTED CROPS.—Subject to subsection (b), 
any commodity or crop may be planted on the base acres 
for peanuts on a farm. 
(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 for peanuts unless 
the commodity, if planted, is destroyed before har-
vest. 
(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 for peanuts. 
(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. 
(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— 
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(1) in any region in which there is a history of 
double-cropping of peanuts with agricultural com-
modities specified in subsection (b)(3), as deter-
mined by the Secretary, in which case the double- 
cropping shall be permitted; 
(2) on a farm that the Secretary determines 
has a history of planting agricultural commodities 
specified in subsection (b)(3) on the base acres for 
peanuts, except that direct payments and counter-cy-
clical 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 his-
tory of a specific agricultural commodity specified in 
subsection (b)(3), except that— 
(A) the quantity planted may not exceed 
the average annual planting history of such ag-
ricultural 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 de-
termined by the Secretary; and 
(B) direct payments and counter-cyclical 
payments shall be reduced by an acre for each 
acre planted to such agricultural commodity. 
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SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DE-
FICIENCY PAYMENTS FOR PEANUTS. 
(a) NONRECOURSE LOANS AVAILABLE.— 
(1) AVAILABILITY.—For each of the 2008 
through 2012 crops of peanuts, the Secretary shall 
make available to producers on a farm nonrecourse 
marketing assistance loans for peanuts produced on 
the farm. 
(2) TERMS AND CONDITIONS.—The loans shall 
be made under terms and conditions that are pre-
scribed by the Secretary and at the loan rate estab-
lished under subsection (b). 
(3) ELIGIBLE PRODUCTION.—The producers on 
a farm shall be eligible for a marketing assistance 
loan under this subsection for any quantity of pea-
nuts produced on the farm. 
(4) OPTIONS FOR OBTAINING LOAN.—A mar-
keting assistance loan under this subsection, and 
loan deficiency payments under subsection (e), may 
be obtained at the option of the producers on a farm 
through— 
(A) a designated marketing association or 
marketing cooperative of producers that is ap-
proved by the Secretary; or 
(B) the Farm Service Agency. 
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(5) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the Secretary’s approval of an individual or 
entity to provide storage for peanuts for which a 
marketing assistance loan is made under this sec-
tion, the individual or entity shall agree— 
(A) to provide such storage on a non-
discriminatory basis; and 
(B) to comply with such additional require-
ments as the Secretary considers appropriate to 
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section. 
(6) STORAGE, HANDLING, AND
ASSOCIATED 
COSTS.— 
(A) IN
GENERAL.—Beginning with the 
2008 crop of peanuts, to ensure proper storage 
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 Sec-
retary. 
(B) REDEMPTION AND FORFEITURE.—The 
Secretary shall— 
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(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. 
(7) 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. 
(b) LOAN RATE.—Except as provided in section 
1105, the loan rate for a marketing assistance loan for 
peanuts under subsection (a) shall be equal to $355 per 
ton. 
(c) TERM OF LOAN.— 
(1) IN GENERAL.—A marketing assistance loan 
for peanuts under subsection (a) 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. 
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(2) EXTENSIONS PROHIBITED.—The Secretary 
may not extend the term of a marketing assistance 
loan for peanuts under subsection (a). 
(d) REPAYMENT RATE.— 
(1) IN GENERAL.—The Secretary shall permit 
producers on a farm to repay a marketing assistance 
loan for peanuts under subsection (a) at a rate that 
is the lesser of— 
(A) the loan rate established for peanuts 
under subsection (b), plus interest (determined 
in accordance with section 163 of the Federal 
Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7283)); or 
(B) a rate that the Secretary determines 
will— 
(i) minimize potential loan forfeitures; 
(ii) minimize the accumulation of 
stocks of peanuts by the Federal Govern-
ment; 
(iii) minimize the cost incurred by the 
Federal Government in storing peanuts; 
and 
(iv) allow peanuts produced in the 
United States to be marketed freely and 
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competitively, both domestically and inter-
nationally. 
(2) AUTHORITY TO TEMPORARILY ADJUST RE-
PAYMENT RATES.— 
(A) ADJUSTMENT
AUTHORITY.—In the 
event of a severe disruption to marketing, 
transportation, or related infrastructure, the 
Secretary may modify the repayment rate oth-
erwise applicable under this subsection for mar-
keting assistance loans for peanuts under sub-
section (a). 
(B) DURATION.—An adjustment made 
under subparagraph (A) in the repayment rate 
for marketing assistance loans for peanuts shall 
be in effect on a short-term and temporary 
basis, as determined by the Secretary. 
(e) LOAN DEFICIENCY PAYMENTS.— 
(1) AVAILABILITY.—The Secretary may make 
loan deficiency payments available to producers on a 
farm that, although eligible to obtain a marketing 
assistance loan for peanuts under subsection (a), 
agree to forgo obtaining the loan for the peanuts in 
return for loan deficiency payments under this sub-
section. 
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(2) COMPUTATION.—A loan deficiency payment 
under this subsection shall be computed by multi-
plying— 
(A) the payment rate determined under 
paragraph (3) for peanuts; by 
(B) the quantity of the peanuts produced 
by the producers, excluding any quantity for 
which the producers obtain a marketing assist-
ance loan under subsection (a). 
(3) PAYMENT RATE.—For purposes of this sub-
section, the payment rate shall be the amount by 
which— 
(A) the loan rate established under sub-
section (b); exceeds 
(B) the rate at which a loan may be repaid 
under subsection (d). 
(4) EFFECTIVE DATE FOR PAYMENT RATE DE-
TERMINATION.—The Secretary shall determine the 
amount of the loan deficiency payment to be made 
under this subsection to the producers on a farm 
with respect to a quantity of peanuts using the pay-
ment rate in effect under paragraph (3) as of the 
date the producers request the payment. 
(f) COMPLIANCE WITH CONSERVATION AND WET-
LANDS REQUIREMENTS.—As a condition of the receipt of 
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a marketing assistance loan under subsection (a), 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. 
(g) REIMBURSABLE AGREEMENTS AND PAYMENT OF 
ADMINISTRATIVE EXPENSES.—The Secretary may imple-
ment any reimbursable agreements or provide for the pay-
ment of administrative expenses under this subtitle only 
in a manner that is consistent with such activities in re-
gard to other commodities. 
SEC. 1308. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—The Secretary may 
make appropriate adjustments in the loan rates for pea-
nuts for differences in grade, type, quality, location, and 
other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments 
under subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan 
level for peanuts will, on the basis of the anticipated inci-
dence of the factors, be equal to the level of support deter-
mined in accordance with this subtitle and subtitles B, D, 
and E. 
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(c) ADJUSTMENT ON COUNTY BASIS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may establish loan rates for a crop of 
peanuts 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 na-
tional average loan rate for any year. 
Subtitle D—Sugar 
SEC. 1401. SUGAR PROGRAM. 
(a) IN GENERAL.—Section 156 of the Federal Agri-
culture 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; 
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‘‘(4) 18.75 cents per pound for raw cane sugar 
for the 2011 crop year; and 
‘‘(5) 18.75 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 equal to— 
‘‘(1) 22.9 cents per pound for refined beet 
sugar for the 2008 crop year; and 
‘‘(2) a rate that is equal to 128.5 percent of the 
loan rate per pound of raw cane sugar for the appli-
cable crop year under subsection (a) for each of the 
2009 through 2012 crop years. 
‘‘(c) TERM OF LOANS.— 
‘‘(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 
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of a fiscal year, the processor may repledge the 
sugar as collateral for a second loan in the subse-
quent 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 non-
recourse loans. 
‘‘(2) PROCESSOR ASSURANCES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
obtain from each processor that receives a loan 
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 
received by the processor for the sugar beets 
and sugarcane delivered by producers to the 
processor. 
‘‘(B) MINIMUM PAYMENTS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the Secretary may establish appro-
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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 require-
ment, or similar administrative requirement not oth-
erwise in effect on May 13, 2002, that has the effect 
of preventing a processor from electing to forfeit the 
loan collateral (of an acceptable grade and quality) 
on the maturity of the loan. 
‘‘(e) LOANS FOR IN-PROCESS SUGAR.— 
‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND 
SYRUPS.—In this subsection, the term ‘in-process 
sugars and syrups’ does not include raw sugar, liq-
uid sugar, invert sugar, invert syrup, or other fin-
ished 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 
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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 
Secretary 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 serv-
ing as collateral for a loan under paragraph (2), 
the processor shall, within such reasonable time 
period 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 
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 
Commodity Credit Corporation. 
‘‘(C) PAYMENT TO PROCESSOR.—On trans-
fer of the sugar, the Secretary shall make a 
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payment 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 sug-
ars and syrups into raw cane sugar or refined beet 
sugar and repays the loan on the in-process sugars 
and syrups, the processor may obtain a loan under 
subsection (a) or (b) for the raw cane sugar or re-
fined beet sugar, as appropriate. 
‘‘(6) TERM
OF
LOAN.—The term of a loan 
made under this subsection for a quantity of in-proc-
ess sugars and syrups, when combined with the term 
of a loan made with respect to the raw cane sugar 
or refined beet sugar derived from the in-process 
sugars and syrups, may not exceed 9 months, con-
sistent with subsection (c). 
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‘‘(f) AVOIDING FORFEITURES; CORPORATION INVEN-
TORY DISPOSITION.— 
‘‘(1) IN
GENERAL.—Subject to subsection 
(d)(3), to the maximum extent practicable, the Sec-
retary shall operate the program established under 
this section at no cost to the Federal Government by 
avoiding 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 
in conjunction with the producers of the sugar-
cane or sugar beets processed by the proc-
essors) in return for the reduction of production 
of raw cane sugar or refined beet sugar, as ap-
propriate. 
‘‘(B) BIOENERGY
FEEDSTOCK.—If a re-
duction in the quantity of production accepted 
under subparagraph (A) involves sugar beets or 
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sugarcane that has already been planted, the 
sugar beets or sugarcane so planted may not be 
used for any commercial purpose other than as 
a bioenergy feedstock. 
‘‘(C) ADDITIONAL
AUTHORITY.—The au-
thority provided under this paragraph is in ad-
dition to any authority of the Commodity Credit 
Corporation under any other law. 
‘‘(g) INFORMATION REPORTING.— 
‘‘(1) DUTY OF PROCESSORS AND REFINERS TO 
REPORT.—A sugarcane processor, cane sugar re-
finer, and sugar beet processor shall furnish the Sec-
retary, on a monthly basis, such information as the 
Secretary may require to administer sugar pro-
grams, including the quantity of purchases of sugar-
cane, sugar beets, and sugar, and production, impor-
tation, distribution, and stock levels of sugar. 
‘‘(2) DUTY OF PRODUCERS TO REPORT.— 
‘‘(A) PROPORTIONATE SHARE STATES.—As 
a condition of a loan made to a processor for 
the benefit of a producer, the Secretary shall 
require each producer of sugarcane located in a 
State (other than the Commonwealth of Puerto 
Rico) in which there are in excess of 250 pro-
ducers of sugarcane to report, in the manner 
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prescribed by the Secretary, the sugarcane 
yields and acres planted to sugarcane of the 
producer. 
‘‘(B) OTHER STATES.—The Secretary may 
require each producer of sugarcane or sugar 
beets not covered by subparagraph (A) to re-
port, in a manner prescribed by the Secretary, 
the yields of, and acres planted to, sugarcane or 
sugar beets, respectively, of the producer. 
‘‘(3) DUTY OF IMPORTERS TO REPORT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall require 
an importer of sugars, syrups, or molasses to be 
used for human consumption or to be used for 
the extraction of sugar for human consumption 
to report, in the manner prescribed by the Sec-
retary, the quantities of the products imported 
by the importer and the sugar content or equiv-
alent of the products. 
‘‘(B) 
TARIFF-RATE
QUOTAS.—Subpara-
graph (A) shall not apply to sugars, syrups, or 
molasses that are within the quantities of tariff- 
rate quotas that are subject to the lower rate 
of duties. 
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‘‘(4) COLLECTION OF INFORMATION ON MEX-
ICO.— 
‘‘(A) COLLECTION.—The Secretary shall 
collect— 
‘‘(i) information on the production, 
consumption, stocks, and trade of sugar in 
Mexico, including United States exports of 
sugar to Mexico; and 
‘‘(ii) publicly available information on 
Mexican production, consumption, and 
trade of high fructose corn syrups. 
‘‘(B) PUBLICATION.—The data collected 
under subparagraph (A) shall be published in 
each edition of the World Agricultural Supply 
and Demand Estimates. 
‘‘(5) PENALTY.—Any person willfully failing or 
refusing to furnish the information required to be 
reported by paragraph (1), (2), or (3), or furnishing 
willfully false information, shall be subject to a civil 
penalty of not more than $10,000 for each such vio-
lation. 
‘‘(6) MONTHLY REPORTS.—Taking into consid-
eration the information received under this sub-
section, the Secretary shall publish on a monthly 
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basis composite data on production, imports, dis-
tribution, and stock levels of sugar. 
‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For pur-
poses of Additional U.S. Note 6 to chapter 17 of the Har-
monized Tariff Schedule of the United States and the re-
export programs and polyhydric alcohol program adminis-
tered by the Secretary, all refined sugars (whether derived 
from sugar beets or sugarcane) produced by cane sugar 
refineries and beet sugar processors shall be fully substi-
tutable for the export of sugar and sugar-containing prod-
ucts under those programs. 
‘‘(i) EFFECTIVE PERIOD.—This section shall be ef-
fective only for the 2008 through 2012 crops of sugar 
beets and sugarcane.’’. 
(b) TRANSITION.—The Secretary shall make loans 
for raw cane sugar and refined beet sugar available for 
the 2007 crop year on the terms and conditions provided 
in section 156 of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7272), as in effect on 
the day before the date of enactment of this Act. 
SEC. 1402. UNITED STATES MEMBERSHIP IN THE INTER-
NATIONAL SUGAR ORGANIZATION. 
The Secretary shall work with the Secretary of State 
to restore United States membership in the International 
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144 
Sugar Organization not later than 1 year after the date 
of enactment of this Act. 
SEC. 
1403. 
FLEXIBLE 
MARKETING 
ALLOTMENTS 
FOR 
SUGAR. 
(a) DEFINITIONS.—Section 359a of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended— 
(1) by redesignating paragraphs (1), (2), (3), 
and (4) as paragraphs (2), (4), (5), and (6), respec-
tively; 
(2) by inserting before paragraph (2) (as so re-
designated) the following: 
‘‘(1) 
HUMAN
CONSUMPTION.—The 
term 
‘human consumption’, when used in the context of a 
reference to sugar (whether in the form of sugar, in- 
process sugar, syrup, molasses, or in some other 
form) for human consumption, includes sugar for 
use in human food, beverages, or similar products.’’; 
and 
(3) by inserting after paragraph (2) (as so re-
designated) the following: 
‘‘(3) MARKET.— 
‘‘(A) IN
GENERAL.—The term ‘market’ 
means to sell or otherwise dispose of in com-
merce in the United States. 
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‘‘(B) INCLUSIONS.—The term ‘market’ in-
cludes— 
‘‘(i) the forfeiture of sugar under the 
loan program for sugar established under 
section 156 of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 
U.S.C. 7272); 
‘‘(ii) with respect to any integrated 
processor and refiner, the movement of 
raw cane sugar into the refining process; 
and 
‘‘(iii) the sale of sugar for the produc-
tion of ethanol or other bioenergy product, 
if the disposition of the sugar is adminis-
tered by the Secretary under section 9010 
of the Farm Security and Rural Invest-
ment Act of 2002. 
‘‘(C) MARKETING YEAR.—Forfeited sugar 
described in subparagraph (B)(i) shall be con-
sidered to have been marketed during the crop 
year for which a loan is made under the loan 
program described in that subparagraph.’’. 
(b) FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.—Section 359b of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359bb) is amended to read as follows: 
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‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR 
SUGAR. 
‘‘(a) SUGAR ESTIMATES.— 
‘‘(1) IN GENERAL.—Not later than August 1 
before the beginning of each of the 2008 through 
2012 crop years for sugarcane and sugar beets, the 
Secretary shall estimate— 
‘‘(A) the quantity of sugar that will be 
subject to human consumption in the United 
States during the crop year; 
‘‘(B) the quantity of sugar that would pro-
vide for reasonable carryover stocks; 
‘‘(C) the quantity of sugar that will be 
available from carry-in stocks for human con-
sumption in the United States during the crop 
year; 
‘‘(D) the quantity of sugar that will be 
available from the domestic processing of sugar-
cane, sugar beets, and in-process beet sugar; 
and 
‘‘(E) the quantity of sugars, syrups, and 
molasses that will be imported for human con-
sumption or to be used for the extraction of 
sugar for human consumption in the United 
States during the crop year, whether the arti-
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147 
cles are under a tariff-rate quota or are in ex-
cess or outside of a tariff-rate quota. 
‘‘(2) EXCLUSION.—The estimates under this 
subsection shall not apply to sugar imported for the 
production of polyhydric alcohol or to any sugar re-
fined and reexported in refined form or in products 
containing sugar. 
‘‘(3) REESTIMATES.—The Secretary shall make 
reestimates of sugar consumption, stocks, produc-
tion, and imports for a crop year as necessary, but 
not later than the beginning of each of the second 
through fourth quarters of the crop year. 
‘‘(b) SUGAR ALLOTMENTS.— 
‘‘(1) ESTABLISHMENT.—By the beginning of 
each crop year, the Secretary shall establish for that 
crop year appropriate allotments under section 359c 
for the marketing by processors of sugar processed 
from sugar cane or sugar beets or in-process beet 
sugar (whether the sugar beets or in-process beet 
sugar was produced domestically or imported) at a 
level that is— 
‘‘(A) sufficient to maintain raw and refined 
sugar prices above forfeiture levels so that there 
will be no forfeitures of sugar to the Commodity 
Credit Corporation under the loan program for 
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sugar established under section 156 of the Fed-
eral Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7272); but 
‘‘(B) not less than 85 percent of the esti-
mated quantity of sugar for domestic human 
consumption for the crop year. 
‘‘(2) PRODUCTS.—The Secretary may include 
sugar products, the majority content of which is su-
crose for human consumption, derived from sugar 
cane, sugar beets, molasses, or sugar in the allot-
ments established under paragraph (1) if the Sec-
retary determines it to be appropriate for purposes 
of this part. 
‘‘(c) COVERAGE OF ALLOTMENTS.— 
‘‘(1) IN GENERAL.—The marketing allotments 
under this part shall apply to the marketing by proc-
essors of sugar intended for domestic human con-
sumption that has been processed from sugar cane, 
sugar beets, or in-process beet sugar, whether such 
sugar beets or in-process beet sugar was produced 
domestically or imported. 
‘‘(2) EXCEPTIONS.—Consistent with the admin-
istration of marketing allotments for each of the 
2002 through 2007 crop years, the marketing allot-
ments shall not apply to sugar sold— 
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149 
‘‘(A) to facilitate the exportation of the 
sugar to a foreign country, except that the ex-
ports of sugar shall not be eligible to receive 
credits under reexport programs for refined 
sugar or sugar containing products adminis-
tered by the Secretary; 
‘‘(B) to enable another processor to fulfill 
an allocation established for that processor; or 
‘‘(C) for uses other than domestic human 
consumption, except for the sale of sugar for 
the production of ethanol or other bioenergy if 
the disposition of the sugar is administered by 
the Secretary under section 9010 of the Farm 
Security and Rural Investment Act of 2002. 
‘‘(3) REQUIREMENT.—The sale of sugar de-
scribed in paragraph (2)(B) shall be— 
‘‘(A) made prior to May 1; and 
‘‘(B) reported to the Secretary. 
‘‘(d) PROHIBITIONS.— 
‘‘(1) IN GENERAL.—During all or part of any 
crop year for which marketing allotments have been 
established, no processor of sugar beets or sugarcane 
shall market for domestic human consumption a 
quantity of sugar in excess of the allocation estab-
lished for the processor, except— 
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‘‘(A) to enable another processor to fulfill 
an allocation established for that other proc-
essor; or 
‘‘(B) to facilitate the exportation of the 
sugar. 
‘‘(2) CIVIL
PENALTY.—Any processor who 
knowingly violates paragraph (1) shall be liable to 
the Commodity Credit Corporation for a civil penalty 
in an amount equal to 3 times the United States 
market value, at the time of the commission of the 
violation, of that quantity of sugar involved in the 
violation.’’. 
(c) ESTABLISHMENT OF FLEXIBLE MARKETING AL-
LOTMENTS.—Section 359c of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1359cc) is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) OVERALL ALLOTMENT QUANTITY.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish the overall quantity of sugar to be allotted for 
the crop year (referred to in this part as the ‘overall 
allotment quantity’) at a level that is— 
‘‘(A) sufficient to maintain raw and refined 
sugar prices above forfeiture levels to avoid for-
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less than 85 percent of the estimated quantity 
of sugar for domestic human consumption for 
the crop year.’’; and 
(4) by striking subsection (h). 
(d) ALLOCATION OF MARKETING ALLOTMENTS.— 
Section 359d(b) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1359dd(b)) is amended— 
(1) in paragraph (1)(F), by striking ‘‘Except as 
otherwise provided in section 359f(c)(8), if’’ and in-
serting ‘‘If’’; and 
(2) in paragraph (2), by striking subparagraphs 
(G), (H), and (I) and inserting the following: 
‘‘(G) SALE
OF
FACTORIES
OF
A
PROC-
ESSOR TO ANOTHER PROCESSOR.— 
‘‘(i) EFFECT
OF
SALE.—Subject to 
subparagraphs (E) and (F), if 1 or more 
factories of a processor of beet sugar (but 
not all of the assets of the processor) are 
sold to another processor of beet sugar 
during a crop year, the Secretary shall as-
sign a pro rata portion of the allocation of 
the seller to the allocation of the buyer to 
reflect the historical contribution of the 
production of the sold 1 or more factories 
to the total allocation of the seller, unless 
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153 
the buyer and the seller have agreed upon 
the transfer of a different portion of the 
allocation of the seller, in which case, the 
Secretary 
shall 
transfer 
that 
portion 
agreed upon by the buyer and seller. 
‘‘(ii) APPLICATION OF ALLOCATION.— 
The assignment of the allocation under 
clause (i) shall apply— 
‘‘(I) during the remainder of the 
crop year for which the sale described 
in clause (i) occurs; and 
‘‘(II) during each subsequent 
crop year. 
‘‘(iii) USE OF OTHER FACTORIES TO 
FILL ALLOCATION.—If the assignment of 
the allocation under clause (i) to the buyer 
for the 1 or more purchased factories can-
not be filled by the production of the 1 or 
more purchased factories, the remainder of 
the allocation may be filled by beet sugar 
produced by the buyer from other factories 
of the buyer. 
‘‘(H) NEW ENTRANTS STARTING PRODUC-
TION, REOPENING, OR ACQUIRING AN EXISTING 
FACTORY WITH PRODUCTION HISTORY.— 
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‘‘(i) DEFINITION OF NEW ENTRANT.— 
‘‘(I) IN GENERAL.—In this sub-
paragraph, the term ‘new entrant’ 
means an individual, corporation, or 
other entity that— 
‘‘(aa) does not have an allo-
cation of the beet sugar allotment 
under this part; 
‘‘(bb) is not affiliated with 
any other individual, corporation, 
or entity that has an allocation of 
beet sugar under this part (re-
ferred to in this clause as a ‘third 
party’); and 
‘‘(cc) 
will 
process 
sugar 
beets produced by sugar beet 
growers under contract with the 
new entrant for the production of 
sugar at the new or re-opened 
factory that is the basis for the 
new entrant allocation. 
‘‘(II) AFFILIATION.—For pur-
poses of subclause (I)(bb), a new en-
trant and a third party shall be con-
sidered to be affiliated if— 
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155 
‘‘(aa) the third party has an 
ownership interest in the new en-
trant; 
‘‘(bb) the new entrant and 
the third party have owners in 
common; 
‘‘(cc) the third party has the 
ability to exercise control over the 
new entrant by organizational 
rights, contractual rights, or any 
other means; 
‘‘(dd) the third party has a 
contractual relationship with the 
new entrant by which the new 
entrant will make use of the fa-
cilities or assets of the third 
party; or 
‘‘(ee) there are any other 
similar circumstances by which 
the Secretary determines that the 
new entrant and the third party 
are affiliated. 
‘‘(ii) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS CONSTRUCTED A NEW 
FACTORY OR REOPENED A FACTORY THAT 
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156 
WAS
NOT
OPERATED
SINCE
BEFORE 
1998.—If a new entrant constructs a new 
sugar beet processing factory, or acquires 
and reopens a sugar beet processing fac-
tory that last processed sugar beets prior 
to the 1998 crop year and there is no allo-
cation currently associated with the fac-
tory, the Secretary shall— 
‘‘(I) assign an allocation for beet 
sugar to the new entrant that pro-
vides a fair and equitable distribution 
of the allocations for beet sugar so as 
to enable the new entrant to achieve a 
factory utilization rate comparable to 
the factory utilization rates of other 
similarly-situated processors; and 
‘‘(II) reduce the allocations for 
beet sugar of all other processors on 
a pro rata basis to reflect the alloca-
tion to the new entrant. 
‘‘(iii) ALLOCATION
FOR
A
NEW
EN-
TRANT THAT HAS ACQUIRED AN EXISTING 
FACTORY WITH A PRODUCTION HISTORY.— 
‘‘(I) IN GENERAL.—If a new en-
trant acquires an existing factory that 
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has processed sugar beets from the 
1998 or subsequent crop year and has 
a production history, on the mutual 
agreement of the new entrant and the 
company currently holding the alloca-
tion associated with the factory, the 
Secretary shall transfer to the new en-
trant a portion of the allocation of the 
current allocation holder to reflect the 
historical contribution of the produc-
tion of the 1 or more sold factories to 
the total allocation of the current allo-
cation holder, unless the new entrant 
and current allocation holder have 
agreed upon the transfer of a dif-
ferent portion of the allocation of the 
current allocation holder, in which 
case, the Secretary shall transfer that 
portion agreed upon by the new en-
trant and the current allocation hold-
er. 
‘‘(II) PROHIBITION.—In the ab-
sence of a mutual agreement de-
scribed in subclause (I), the new en-
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158 
trant shall be ineligible for a beet 
sugar allocation. 
‘‘(iv) APPEALS.—Any decision made 
under this subsection may be appealed to 
the Secretary in accordance with section 
359i.’’. 
(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ee(b)) is amended in paragraphs (1)(D) and (2)(C), 
by inserting ‘‘of raw cane sugar’’ after ‘‘imports’’ each 
place it appears. 
(f) PROVISIONS APPLICABLE TO PRODUCERS.—Sec-
tion 359f(c) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1359ff(c)) is amended— 
(1) by striking paragraph (8); 
(2) by redesignating paragraphs (1) through 
(7) as paragraphs (2) through (8), respectively; 
(3) by inserting before paragraph (2) (as so re-
designated) the following: 
‘‘(1) DEFINITION OF SEED.— 
‘‘(A) IN GENERAL.—In this subsection, the 
term ‘seed’ means only those varieties of seed 
that are dedicated to the production of sugar-
cane from which is produced sugar for human 
consumption. 
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