(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). 
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS 
OF UPLAND COTTON.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall, on a monthly basis, make eco-
nomic adjustment assistance available to domestic 
users of upland cotton in the form of payments for 
all documented use of that upland cotton during the 
previous monthly period regardless of the origin of 
the upland cotton. 
(2) VALUE OF ASSISTANCE.—Effective begin-
ning on August 1, 2013, the value of the assistance
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-
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 for the repayment of the assist-
ance to the Secretary, plus interest, as deter-
mined 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, the Secretary shall carry out 
a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple 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. 
(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 the 
2014 crop and each succeeding annual crop of corn 
and grain sorghum, the Secretary shall make avail-
able 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 the producers on the farm 
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 commercial or on-farm 
high-moisture storage facility, or to a facility 
maintained by the users of corn and grain sor-
ghum 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 
farm of the producer; by 
(B) the lower of the farm program pay-
ment yield used to make payments under sub-
title A or the actual yield on a field, as deter-
mined 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 the 2014 crop and each succeeding annual 
crop of upland cotton and extra long staple cotton, the 
Secretary shall make available recourse seed cotton loans, 
as determined by the Secretary, on any production. 
(c) REPAYMENT RATES.—Repayment of a recourse 
loan made under this section shall be at the loan rate 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
ple length of 33 or above due to micronaire 
with the goal of eliminating any unnecessary ar-
tificial splits in the calculations of the pre-
miums or discounts; and 
(C) such other adjustments as the Sec-
retary determines appropriate, after consulta-
tions 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 adjustments to the 
administration of the loan program for upland cot-
ton, by revoking or revising any adjustment taken 
under paragraph (2). 
(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—Sugar 
SEC. 1301. SUGAR PROGRAM. 
(a) CONTINUATION
OF CURRENT PROGRAM
AND 
LOAN RATES.— 
(1) SUGARCANE.—Section 156(a)(5) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(a)(5)) is amended by striking 
‘‘the 2012 crop year’’ and inserting ‘‘the 2012 crop 
year and each succeeding crop year’’. 
(2) SUGAR BEETS.—Section 156(b)(2) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(b)(2)) is amended by striking 
‘‘each of the 2009 through 2012 crop years’’ and in-
serting ‘‘the 2009 crop year and each succeeding 
crop year’’. 
(3) EFFECTIVE PERIOD.—Section 156(i) of the 
Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272(i)) is repealed.
(b) FLEXIBLE
MARKETING
ALLOTMENTS
FOR 
SUGAR.— 
(1) SUGAR ESTIMATES.—Section 359b(a)(1) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359bb(a)(1)) is amended by striking ‘‘each of the 
2008 through 2012 crop years’’ and inserting ‘‘the 
2008 crop year and each succeeding crop year’’. 
(2) EFFECTIVE
PERIOD.—Section 359i(a) of 
the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ii(a)) is amended by striking ‘‘only for the 2008 
through 2012 crop years’’ and inserting ‘‘for the 
2008 crop year and each succeeding crop year’’. 
Subtitle D—Dairy 
PART I—DAIRY PRODUCER MARGIN INSURANCE 
PROGRAM 
SEC. 1401. DAIRY PRODUCER MARGIN INSURANCE PRO-
GRAM. 
Subtitle E of title I of the Food, Conservation, and 
Energy Act of 2008 (7 U.S.C. 8771 et seq.) is amended 
by adding at the end the following new section: 
‘‘SEC. 1511. DAIRY PRODUCER MARGIN INSURANCE PRO-
GRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ACTUAL DAIRY PRODUCER MARGIN.—The 
term ‘actual dairy producer margin’ means the dif-
ference between the all-milk price and the average 
feed cost, as calculated under subsection (b)(2). 
‘‘(2) ALL-MILK
PRICE.—The term ‘all-milk 
price’ means the average price received, per hun-
dredweight of milk, by dairy producers for all milk 
sold to plants and dealers in the United States, as 
reported by the National Agricultural Statistics 
Service. 
‘‘(3) AVERAGE FEED COST.—The term ‘average 
feed cost’ means the average cost of feed used by a 
dairy operation to produce a hundredweight of milk, 
determined under subsection (b)(1) using the sum of 
the following: 
‘‘(A) The product determined by multi-
plying— 
‘‘(i) 1.0728; by 
‘‘(ii) the price of corn per bushel. 
‘‘(B) The product determined by multi-
plying— 
‘‘(i) 0.00735; by 
‘‘(ii) the price of soybean meal per 
ton. 
‘‘(C) The product determined by multi-
plying— 
‘‘(i) 0.0137; by
‘‘(ii) the price of alfalfa hay per ton. 
‘‘(4) CONSECUTIVE
2-MONTH
PERIOD.—The 
term ‘consecutive 2-month period’ refers to the 2- 
month period consisting of the months of January 
and February, March and April, May and June, 
July and August, September and October, or No-
vember and December, respectively. 
‘‘(5) DAIRY PRODUCER.—The term ‘dairy pro-
ducer’ means an individual or entity that directly or 
indirectly (as determined by the Secretary)— 
‘‘(A) shares in the risk of producing milk; 
and 
‘‘(B) makes contributions (including land, 
labor, management, equipment, or capital) to 
the dairy operation of the individual or entity 
that are at least commensurate with the share 
of the individual or entity of the proceeds of the 
operation. 
‘‘(6) MARGIN INSURANCE PROGRAM.—The term 
‘margin insurance program’ means the dairy pro-
ducer margin insurance program required by this 
section. 
‘‘(7) PARTICIPATING
DAIRY
PRODUCER.—The 
term ‘participating dairy producer’ means a dairy
producer that registers under subsection (d)(2) to 
participate in the margin insurance program. 
‘‘(8) PRODUCTION
HISTORY.—The term ‘pro-
duction history’ means the quantity of annual milk 
marketings determined for a dairy producer under 
subsection (e)(1). 
‘‘(9) UNITED
STATES.—The term ‘United 
States’, in a geographical sense, means the 50 
States. 
‘‘(b) CALCULATION OF AVERAGE FEED COST AND 
ACTUAL DAIRY PRODUCER MARGINS.— 
‘‘(1) CALCULATION OF AVERAGE FEED COST.— 
The Secretary shall calculate the national average 
feed cost for each month using the following data: 
‘‘(A) The price of corn for a month shall 
be the price received during that month by agri-
cultural producers in the United States for 
corn, as reported in the monthly Agriculture 
Prices report by the Secretary. 
‘‘(B) The price of soybean meal for a 
month shall be the central Illinois price for soy-
bean meal, as reported in the Market News– 
Monthly Soybean Meal Price Report by the Sec-
retary.
‘‘(C) The price of alfalfa hay for a month 
shall be the price received during that month by 
agricultural producers in the United States for 
alfalfa hay, as reported in the monthly Agri-
culture Prices report by the Secretary. 
‘‘(2) CALCULATION
OF
ACTUAL
DAIRY
PRO-
DUCER MARGINS.—The Secretary shall calculate the 
actual dairy producer margin for each consecutive 2- 
month period by subtracting— 
‘‘(A) the average feed cost for that con-
secutive 2-month period, determined in accord-
ance with paragraph (1); from 
‘‘(B) the all-milk price for that consecutive 
2-month period. 
‘‘(c) ESTABLISHMENT OF DAIRY PRODUCER MARGIN 
INSURANCE PROGRAM.—The Secretary shall establish and 
administer a dairy producer margin insurance program for 
the purpose of protecting dairy producer income by paying 
participating dairy producers margin insurance payments 
when actual dairy producer margins are less than the 
threshold levels for the payments. 
‘‘(d) ELIGIBILITY
AND REGISTRATION
OF DAIRY 
PRODUCERS FOR MARGIN INSURANCE PROGRAM.—
‘‘(1) ELIGIBILITY.—All dairy producers in the 
United States shall be eligible to participate in the 
margin insurance program. 
‘‘(2) REGISTRATION PROCESS.— 
‘‘(A) REGISTRATION.— 
‘‘(i) ANNUAL REGISTRATION.—On an 
annual basis, the Secretary shall register 
all interested dairy producers in the mar-
gin insurance program. 
‘‘(ii) MANNER AND FORM.—The Sec-
retary shall specify the manner and form 
by which a dairy producer shall register for 
the margin insurance program. 
‘‘(B) TREATMENT
OF
MULTI-PRODUCER 
OPERATIONS.—If a dairy operation consists of 
more than 1 dairy producer, all of the dairy 
producers of the operation shall be treated as a 
single dairy producer for purposes of— 
‘‘(i) purchasing margin insurance; and 
‘‘(ii) payment of producer premiums 
under subsection (f)(4). 
‘‘(C) TREATMENT
OF
PRODUCERS
WITH 
MULTIPLE DAIRY OPERATIONS.—If a dairy pro-
ducer operates 2 or more dairy operations, each 
dairy operation of the producer shall require a
separate registration to participate and pur-
chase margin insurance. 
‘‘(3) TIME FOR REGISTRATION.— 
‘‘(A) EXISTING DAIRY PRODUCERS.—Dur-
ing the 1-year period beginning on the date of 
enactment of this section, and annually there-
after, a dairy producer that is actively engaged 
in a dairy operation as of that date may reg-
ister with the Secretary to participate in the 
margin insurance program. 
‘‘(B) NEW ENTRANTS.—A dairy producer 
that has no existing interest in a dairy oper-
ation as of the date of enactment of this sec-
tion, but that, after that date, establishes a new 
dairy operation, may register with the Secretary 
during the 180-day period beginning on the 
date on which the dairy operation first markets 
milk commercially to participate in the margin 
insurance program. 
‘‘(4) RETROACTIVITY.— 
‘‘(A) NOTICE OF AVAILABILITY OF RETRO-
ACTIVE PROTECTION.—Not later than 30 days 
after the effective date of this section, the Sec-
retary shall publish a notice in the Federal Reg-
ister to inform dairy producers of the avail-
ability of retroactive margin insurance, subject 
to the condition that interested producers must 
file a notice of intent (in such form and manner 
as the Secretary specifies in the Federal Reg-
ister notice) to participate in the margin insur-
ance program. 
‘‘(B) RETROACTIVE MARGIN INSURANCE.— 
‘‘(i) AVAILABILITY.—If a dairy pro-
ducer files a notice of intent under sub-
paragraph (A) to participate in the margin 
insurance program before the initiation of 
the sign-up period for the margin insur-
ance program and subsequently signs up 
for the margin insurance program, the pro-
ducer shall receive margin insurance retro-
active to the effective date of this section. 
‘‘(ii) DURATION.—Retroactive margin 
insurance under this paragraph for a dairy 
producer shall apply from the effective 
date of this section until the date on which 
the producer signs up for the margin in-
surance program. 
‘‘(C) NOTICE OF INTENT AND OBLIGATION 
TO PARTICIPATE.—In no way does filing a no-
tice of intent under this paragraph obligate a
dairy producer to sign up for the margin insur-
ance program once the program rules are final, 
but if a producer does file a notice of intent and 
subsequently signs up for the margin insurance 
program, that dairy producer is obligated to 
pay premiums for any retroactive margin insur-
ance selected in the notice of intent. 
‘‘(5) RECONSTITUTION.—The Secretary shall 
ensure that a dairy producer does not reconstitute a 
dairy operation for the sole purpose of purchasing 
margin insurance. 
‘‘(e) PRODUCTION
HISTORY
OF
PARTICIPATING 
DAIRY PRODUCERS.— 
‘‘(1) DETERMINATION
OF
PRODUCTION
HIS-
TORY.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
determine the production history of the dairy 
operation of each participating dairy producer 
in the margin insurance program. 
‘‘(B) CALCULATION.—Except as provided 
in subparagraphs (C) and (D), the production 
history of a participating dairy producer shall 
be equal to the highest annual milk marketings 
of the dairy producer during any 1 of the 3 cal-
endar years immediately preceding the registra-
tion of the dairy producer for participation in 
the margin insurance program. 
‘‘(C) UPDATING PRODUCTION HISTORY.— 
So long as a participating producer remains 
registered, the production history of the partici-
pating producer shall be annually updated 
based on the highest annual milk marketings of 
the dairy producer during any one of the 3 im-
mediately preceding calendar years. 
‘‘(D) NEW PRODUCERS.—If a dairy pro-
ducer has been in operation for less than 1 
year, the Secretary shall determine the initial 
production history of the dairy producer under 
subparagraph (B) by extrapolating the actual 
milk marketings for the months that the dairy 
producer has been in operation to a yearly 
amount. 
‘‘(2) 
REQUIRED
INFORMATION.—A 
partici-
pating dairy producer shall provide all information 
that the Secretary may require in order to establish 
the production history of the dairy operation of the 
dairy producer. 
‘‘(3) TRANSFER OF PRODUCTION HISTORY.— 
‘‘(A) TRANSFER BY SALE.—
‘‘(i) REQUEST FOR TRANSFER.—If an 
existing dairy producer sells an entire 
dairy operation to another party, the seller 
and purchaser may jointly request that the 
Secretary transfer to the purchaser the in-
terest of the seller in the production his-
tory of the dairy operation. 
‘‘(ii) TRANSFER.—If the Secretary de-
termines that the seller has sold the entire 
dairy operation to the purchaser, the Sec-
retary shall approve the transfer and, 
thereafter, the seller shall have no interest 
in the production history of the sold dairy 
operation. 
‘‘(B) TRANSFER BY LEASE.— 
‘‘(i) REQUEST FOR TRANSFER.—If an 
existing dairy producer leases an entire 
dairy operation to another party, the lessor 
and lessee may jointly request that the 
Secretary transfer to the lessee for the du-
ration of the term of the lease the interest 
of the lessor in the production history of 
the dairy operation. 
‘‘(ii) TRANSFER.—If the Secretary de-
termines that the lessor has leased the en-
move of a dairy operation under subparagraph 
(A). 
‘‘(C) SUBSEQUENT
OCCUPATION
OF
VA-
CATED LOCATION.—A party subsequently occu-
pying a dairy operation location vacated as de-
scribed in subparagraph (A) shall have no inter-
est in the production history previously associ-
ated with the operation at that location. 
‘‘(f) MARGIN INSURANCE.— 
‘‘(1) IN GENERAL.—At the time of the registra-
tion of a dairy producer in the margin insurance 
program under subsection (d) and annually there-
after during the duration of the margin insurance 
program, an eligible dairy producer may purchase 
margin insurance. 
‘‘(2) SELECTION OF PAYMENT THRESHOLD.—A 
participating dairy producer purchasing margin in-
surance shall elect a coverage level in any increment 
of $0.50, with a minimum of $4.00 and a maximum 
of $8.00. 
‘‘(3) SELECTION OF COVERAGE PERCENTAGE.— 
A participating dairy producer purchasing margin 
insurance shall elect a percentage of coverage, equal 
to not more than 80 percent nor less than 25 per-
121 
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $125,000 for any crop year, or an 
equivalent value in tree seedlings. 
(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
(f) PAYMENT LIMITATIONS.— 
(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘‘legal entity’’ 
and ‘‘person’’ have the meaning given those terms in 
section 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a)). 
(2) AMOUNT.—The total amount of disaster as-
sistance payments received, directly or indirectly, by 
a person or legal entity (excluding a joint venture or 
general partnership) under this section (excluding 
payments received under subsection (e)) may not ex-
ceed $125,000 for any crop year. 
(3) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions