HR 2419 PCS
(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. 
(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. 
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HR 2419 PCS
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.— 
‘‘(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. 
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‘‘(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 
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.— 
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‘‘(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. 
‘‘(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). 
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‘‘(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 
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. 
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‘‘(C) PAYMENT TO PROCESSOR.—On trans-
fer of the sugar, the Secretary shall make a 
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 
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