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price for upland cotton, long grain rice, and medium 
and short grain rice; and 
(4) a mechanism by which the Secretary will 
make the adjustments, required by subsection (e), to 
the prevailing world market price for upland cotton, 
long grain rice, and medium and short grain rice. 
(e) ADJUSTMENT OF PREVAILING WORLD MARKET 
PRICE FOR UPLAND COTTON AND RICE.— 
(1) RICE.—The prevailing world market price 
for long grain, medium grain, and short grain rice 
determined in subsection (d) shall be adjusted to 
United States quality and location. 
(2) COTTON.—The prevailing world market 
price for upland cotton, determined in subsection (d) 
shall be— 
(A) adjusted to United States quality and 
location, with such quality adjustment to in-
clude— 
(i) any existing United States loan 
schedule premiums for Comparable United 
States Quality; and 
(ii) a reduction equal to any United 
States Premium Factor to upland cotton of 
a quality higher than Middling (M) 13⁄32- 
inch; and
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(B) adjusted to take into account average 
costs to market the commodity, including aver-
age transportation costs, as determined by the 
Secretary. 
(f) ADDITIONAL ADJUSTMENT AUTHORITY REGARD-
ING PREVAILING WORLD MARKET PRICE FOR UPLAND 
COTTON.— 
(1) IN GENERAL.—During the period beginning 
on the date of the enactment of this Act through 
July 31, 2013, the Secretary may further adjust the 
prevailing world market price for upland cotton (ad-
justed under subsection (d)) if the Secretary deter-
mines such adjustment necessary— 
(A) to minimize potential loan forfeitures; 
(B) to minimize the accumulation of stocks 
of the commodity by the Federal Government; 
(C) to allow the commodity produced in 
the United States to be marketed freely and 
competitively, both domestically and inter-
nationally; 
(D) to ensure that United States cotton is 
competitive in world markets; and 
(E) to ensure an appropriate transition be-
tween current-crop and forward-crop price 
quotations, except that the Secretary may use
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forward-crop price quotations prior to July 31 
of the current marketing year only if there are 
less than three current-crop price quotations 
and only if such forward-crop price quotation is 
the lowest such quotation available. 
(2) GUIDELINES
FOR
ADDITIONAL
ADJUST-
MENT.—In further adjusting the prevailing world 
market price for upland cotton under this sub-
section, the Secretary shall establish a mechanism 
for determining and announcing such adjustments in 
order to avoid undue disruption in the United States 
market. 
(g) 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.
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(h) QUALITY GRADES FOR DRY PEAS, LENTILS, AND 
SMALL CHICKPEAS.—The loan repayment rate for dry 
peas, lentils, and small chickpeas shall be based on the 
quality grades for the applicable commodity. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY
OF
LOAN
DEFICIENCY
PAY-
MENTS.— 
(1) IN GENERAL.—Except as provided in sub-
section (d), the Secretary may make loan deficiency 
payments available to producers on a farm that, al-
though eligible to obtain a marketing assistance loan 
under section 1201 with respect to a loan com-
modity, agree to forgo obtaining the loan for the 
commodity in return for loan deficiency payments 
under this section. 
(2) UNSHORN PELTS, HAY, AND SILAGE.— 
(A) MARKETING
ASSISTANCE
LOANS.— 
Subject to subparagraph (B), nongraded wool 
in the form of unshorn pelts and hay and silage 
derived from a loan commodity are not eligible 
for a marketing assistance loan under section 
1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effec-
tive for the 2008 through 2012 crop years, the 
Secretary may make loan deficiency payments
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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.— 
(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—
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(A) the loan rate established under section 
1202 for ungraded wool; exceeds 
(B) the rate at which a marketing assist-
ance loan for ungraded wool may be repaid 
under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or si-
lage derived from a loan commodity, the payment 
rate shall be the amount by which— 
(A) the loan rate established under section 
1202 for the loan commodity from which the 
hay or silage is derived; exceeds 
(B) the rate at which a marketing assist-
ance loan for the loan commodity may be repaid 
under section 1204. 
(d) EXCEPTION
FOR EXTRA LONG STAPLE COT-
TON.—This section shall not apply with respect to extra 
long staple cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETER-
MINATION.—The Secretary shall determine the amount of 
the loan deficiency payment to be made under this section 
to the producers on a farm with respect to a quantity of 
a loan commodity or commodity referred to in subsection 
(a)(2) using the payment rate in effect under subsection 
(c) as of the date the producers request the payment.
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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-
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—
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(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-
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—
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(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-
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.
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(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 
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 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’’
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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 the enactment 
of this Act through July 31, 2013, as provided 
in this subsection. 
(B) PROGRAM REQUIREMENTS.—Whenever 
the Secretary determines and announces that 
for any consecutive 4-week period, the Friday 
through Thursday average price quotation for 
the lowest-priced United States growth, as 
quoted for Middling (M) 13⁄32-inch cotton, deliv-
ered C/F Far East, exceeds the Far East price 
there shall immediately be in effect a special 
import quota. 
(3) QUANTITY.—The quota shall be equal to 1 
week’s consumption of upland cotton by domestic 
mills at the seasonally adjusted average rate of the 
most recent 3 months for which data are available. 
(4) APPLICATION.—The quota shall apply to 
upland cotton purchased not later than 90 days 
after the date of the Secretary’s announcement
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under paragraph (1) and entered into the United 
States not later than 180 days after that date. 
(5) OVERLAP.—A special quota period may be 
established that overlaps any existing quota period if 
required by paragraph (2), except that a special 
quota period may not be established under this sub-
section if a quota period has been established under 
subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The 
quantity under a special import quota shall be con-
sidered to be an in-quota quantity for purposes of— 
(A) section 213(d) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(d)); 
(B) section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 
1974 (19 U.S.C. 2463(d)); and 
(D) General Note 3(a)(iv) to the Har-
monized Tariff Schedule. 
(7) LIMITATION.—The quantity of cotton en-
tered into the United States during any marketing 
year under the special import quota established 
under this subsection may not exceed the equivalent 
of 10 week’s consumption of upland cotton by do-
mestic mills at the seasonally adjusted average rate
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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-
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 
during the most recent 3 months for which 
data are available; and 
(ii) the larger of—
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(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. 
(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-
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justed average rate of the most recent 3 months 
for which data are available. 
(B) QUANTITY
IF
PRIOR
QUOTA.—If a 
quota has been established under this sub-
section during the preceding 12 months, the 
quantity of the quota next established under 
this subsection shall be the smaller of 21 days 
of domestic mill consumption calculated under 
subparagraph (A) or the quantity required to 
increase the supply to 130 percent of the de-
mand. 
(C) 
PREFERENTIAL
TARIFF
TREAT-
MENT.—The quantity under a limited global 
import quota shall be considered to be an in- 
quota quantity for purposes of— 
(i) section 213(d) of the Caribbean 
Basin Economic Recovery Act (19 U.S.C. 
2703(d)); 
(ii) section 204 of the Andean Trade 
Preference Act (19 U.S.C. 3203); 
(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.
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(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) ISSUANCE OF MARKETING CERTIFICATES OR 
CASH PAYMENTS.—During the period beginning on 
the date of the enactment of this Act through July 
31, 2013, the Secretary shall issue, on a monthly 
basis, marketing certificates or cash payments, at 
the option of the recipient, to domestic users of up-
land cotton for all documented use of upland cotton 
during the previous monthly period regardless of the 
origin of the upland cotton. 
(2) VALUE OF CERTIFICATES OR PAYMENTS.— 
The value of the marketing certificates or cash pay-
ments shall be 4 cents per pound. 
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made
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available only to domestic users of upland cotton 
that certify that such funds shall be used only for 
acquisition, construction, installation, modernization, 
development, conversion, or expansion of land, plant, 
buildings, equipment, facilities, 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 determined nec-
essary to carry out the provisions of 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 liable to repay such assistance 
to the Secretary, plus interest, as determined by the 
Secretary, and shall be ineligible to participate in 
the program established by this subsection for a pe-
riod of 12 months 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
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on the date of the enactment of this Act through July 31, 
2013, the Secretary shall carry out a program— 
(1) to maintain and expand the domestic use of 
extra long staple cotton produced in the United 
States; 
(2) to increase exports of extra long staple 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
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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. 
(e) FORM OF PAYMENT.—Payments under this sec-
tion shall be made through the issuance of cash or mar-
keting certificates, at the option of eligible recipients of 
the payments. 
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’’
•HR 2419 EH1S 
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-
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
•HR 2419 EH1S 
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 
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
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(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 
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. DEADLINE FOR REPAYMENT OF MARKETING AS-
SISTANCE LOAN FOR PEANUTS. 
(a) JUNE 30 REDEMPTION DEADLINE.—Notwith-
standing any other provision of law, a marketing assist-
ance loan for peanuts may not be redeemed after June 
30 of the year subsequent to the year in which the peanuts 
were harvested.
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(b) EFFECT OF FAILURE TO REDEEM.—A marketing 
assistance loan for peanuts that is not redeemed before 
the deadline imposed by subsection (a) shall be deemed 
to be forfeited to the Commodity Credit Corporation. 
SEC. 1211. COMMODITY QUALITY INCENTIVE PAYMENTS 
FOR HEALTHY OILSEEDS. 
(a) INCENTIVE PAYMENTS REQUIRED.—Subject to 
the availability of funds for this purpose, the Secretary 
shall provide commodity quality incentive payments during 
the 2009 through 2013 crop years for the production of 
oilseeds with specialized traits that enhance human health, 
as determined by the Secretary. 
(b) COVERED OILSEEDS.—The Secretary shall make 
payments under this section only for the production of an 
oilseed that has, as determined by the Secretary— 
(1) been demonstrated to reduce or eliminate 
the need to partially hydrogenate the oil derived 
from the oilseed for use in human consumption; and 
(2) 1 or more traits for which compelling im-
pediments to commercialization have been identified. 
(c) REQUEST FOR PROPOSALS.— 
(1) ISSUANCE.—If funds are available to carry 
out this section for a crop year, the Secretary shall 
issue a request for proposals for payments under 
this section.
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(2) MULTIYEAR
PROPOSALS.—An entity may 
submit a multiyear proposal for payments under this 
section. 
(3) CONTENT OF PROPOSALS.—A proposal for 
payments under this section shall include a descrip-
tion of— 
(A) each trait of the oilseed described in 
subsection (b)(2) and the value of the trait as 
a matter of public policy; 
(B) the projected market size and value of 
the trait; 
(C) the projected impact of the proposal 
on— 
(i) the future price of loan commod-
ities; and 
(ii) if appropriate, on Federal Govern-
ment farm program outlays to support 
loan commodities; 
(D) a range for the amount of total per 
bushel premiums to be paid to producers; 
(E) a per bushel amount of incentive pay-
ments requested for each year under this sec-
tion that— 
(i) does not exceed 1⁄3 of the total pre-
mium offered for any year; and
•HR 2419 EH1S 
(ii) declines over time; 
(F) the period of time, of not to exceed 4 
years, during which incentive payments are to 
be provided to producers; and 
(G) the targeted total quantity of produc-
tion and estimated acres needed to produce the 
targeted quantity for each year under this sec-
tion. 
(d) CONTRACTS FOR PRODUCTION.— 
(1) IN GENERAL.—The Secretary shall approve 
successful proposals submitted under subsection (c) 
on a timely basis so as to allow successful applicants 
to offer production contracts to producers beginning 
in advance of the spring planting season for the 
2009 crop year. 
(2) MULTIYEAR CONTRACTS.—A successful ap-
plicant may enter into a multiyear contract with— 
(A) a specific group of producers; or 
(B) various groups of producers. 
(3) TIMING
OF
PAYMENTS.—The Secretary 
shall make payments under this section after the 
Secretary receives documentation that the total pre-
mium offered for crops produced under a contract 
(including the amount of incentive payments) has 
been made to covered producers.
•HR 2419 EH1S 
(e) ADMINISTRATION.—If funding provided for a crop 
year is not fully allocated under the initial request for pro-
posals under subsection (c), the Secretary shall issue addi-
tional requests for proposals for subsequent years under 
this section. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 
2009 through 2013. 
Subtitle C—Sugar 
SEC. 1301. 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 
for raw cane sugar available to processors of domestically 
grown sugarcane at a rate equal to 18.5 cents per pound 
for each of the 2008 through 2012 crop years. 
‘‘(b) SUGAR BEETS.—The Secretary shall make loans 
for refined beet sugar available to processors of domesti-
cally grown sugar beets at a rate equal to 23.5 cents per 
pound for each of the 2008 through 2012 crop years. 
‘‘(c) TERM OF LOANS.—
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‘‘(1) IN GENERAL.—A loan under this section 
during any fiscal year shall be made available not 
earlier than the beginning of the fiscal year and 
shall mature at the earlier of— 
‘‘(A) the end of the 9-month period begin-
ning on the first day of the first month after 
the month in which the loan is made; or 
‘‘(B) the end of the fiscal year in which the 
loan is made. 
‘‘(2) SUPPLEMENTAL LOANS.—In the case of a 
loan made under this section in the last 3 months 
of a fiscal year, the processor may repledge the 
sugar as collateral for a second loan in the 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
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under this section such assurances as the Sec-
retary considers adequate to ensure that the 
processor will provide payments to producers 
that are proportional to the value of the loan 
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-
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.
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‘‘(e) LOANS FOR IN-PROCESS SUGAR.— 
‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND 
SYRUPS.—In this subsection, the term ‘in-process 
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 
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