H. R. 6124 
One Hundred Tenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Thursday, 
the third day of January, two thousand and eight 
An Act 
To provide for the continuation of agricultural and other programs of the Department 
of Agriculture through fiscal year 2012, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Food, Con-
servation, 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 commod-
ities. 
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 cot-
ton. 
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 peanuts.
H. R. 6124—2 
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 nonfat 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 producers. 
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 com-
modity 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 
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 con-
servation. 
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 enrolled 
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 payments, 
and payment limitations.
H. R. 6124—3 
Sec. 2111. Conservation reserve program transition incentives for beginning farm-
ers 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 enrollment. 
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 pro-
gram. 
Sec. 2207. Duties of Secretary of Agriculture under wetlands reserve program. 
Sec. 2208. Payment limitations under wetlands reserve contracts and agreements. 
Sec. 2209. Repeal of payment limitations exception for State agreements for wet-
lands reserve enhancement. 
Sec. 2210. Report on implications of long-term nature of conservation easements. 
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. 
Sec. 2502. Definitions. 
Sec. 2503. Establishment and administration of environmental quality incentives 
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 pro-
grams. 
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 responsibilities. 
Subtitle I—Conservation Programs Under Other Laws 
Sec. 2801. Agricultural management assistance program. 
Sec. 2802. Technical assistance under Soil Conservation and Domestic Allotment 
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.
H. R. 6124—4 
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. 
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 dis-
tribution 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 agricultural 
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 Nutrition 
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. 
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.
H. R. 6124—5 
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 wholesale 
food concerns. 
Sec. 4133. Major systems failures. 
PART V—MISCELLANEOUS 
Sec. 4141. Pilot projects to evaluate health and nutrition promotion in the supple-
mental 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. 
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 International 
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 support 
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.
H. R. 6124—6 
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. 
Sec. 5304. Transition to private commercial or other sources of credit. 
Sec. 5305. Extension of the right of first refusal to reacquire homestead property 
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 program. 
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 sys-
tems 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.
H. R. 6124—7 
Sec. 6028. Rural Collaborative Investment Program. 
Sec. 6029. Funding of pending rural development loan and grant applications. 
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 efficiency 
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 telephone 
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 program. 
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 Economics 
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 fellow-
ships 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 indus-
trial hydrocarbons from agricultural commodities and forest products. 
Sec. 7111. Policy research centers. 
Sec. 7112. Education grants to Alaska Native-serving institutions and Native Ha-
waiian-serving institutions. 
Sec. 7113. Emphasis of human nutrition initiative. 
Sec. 7114. Human nutrition intervention and health promotion research program. 
Sec. 7115. Pilot research program to combine medical and agricultural research. 
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 colleges. 
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 District 
of Columbia land-grant university. 
Sec. 7125. Grants to upgrade agriculture and food sciences facilities and equipment 
at insular area land-grant institutions.
H. R. 6124—8 
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 education 
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 pro-
gram. 
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 insular 
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 ex-
tension initiative. 
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 pro-
gram. 
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.
H. R. 6124—9 
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. 
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 bac-
teria. 
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 resources. 
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 partner-
ship 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. 
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.
H. R. 6124—10 
Sec. 8402. Hispanic-serving institution agricultural land national resources leader-
ship 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 pur-
chase 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 regulated 
articles. 
Sec. 10205. Pest and Disease Revolving Loan Fund. 
Sec. 10206. Cooperative agreements relating to plant pest and disease prevention 
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 
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 program. 
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.
H. R. 6124—11 
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 program. 
Sec. 12028. Increase in service fees for noninsured crop assistance program. 
Sec. 12029. Determination of certain sweet potato production. 
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 dis-
aster 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.
H. R. 6124—12 
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. 
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 Indian 
reservations. 
Sec. 14002. Foreclosure. 
Sec. 14003. Receipt for service or denial of service from certain Department of Agri-
culture agencies. 
Sec. 14004. Outreach and technical assistance for socially disadvantaged farmers or 
ranchers. 
Sec. 14005. Accurate documentation in the Census of Agriculture and certain stud-
ies. 
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 disadvantaged 
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 planning, 
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. 
Sec. 14202. Designation of States for cotton research and promotion. 
Sec. 14203. Grants to reduce production of methamphetamines from anhydrous am-
monia. 
Sec. 14204. Grants to improve supply, stability, safety, and training of agricultural 
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 Agriculture 
programs for fraud.
H. R. 6124—13 
Sec. 14212. Prohibition on closure or relocation of county offices for the Farm Serv-
ice 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 
Sec. 15311. Temporary reduction in rate of tax on qualified timber gain of corpora-
tions. 
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 certain 
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.
H. R. 6124—14 
Sec. 15352. Modification to optional method of computing net earnings from self- 
employment. 
Sec. 15353. Information reporting for Commodity Credit Corporation transactions. 
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 compli-
ance 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. 
Sec. 15408. Extension of CBTPA. 
Sec. 15409. Sense of Congress on interpretation of textile and apparel provisions 
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 Secretary of Agri-
culture. 
SEC. 3. EXPLANATORY STATEMENT. 
The Joint Explanatory Statement submitted by the Committee 
of Conference for the conference report to accompany H.R. 2419 
of the 110th Congress (House Report 110-627) shall be deemed 
to be part of the legislative history 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 provide 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. 
(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 entitled ‘‘An Act 
to provide for the continuation of agricultural 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):
H. R. 6124—15 
(1) AVERAGE CROP REVENUE ELECTION PAYMENT.—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 Secu-
rity and Rural Investment Act of 2002 (7 U.S.C. 7911) 
as in effect on September 30, 2007, subject to any adjust-
ment under section 1101 of this Act. 
(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, barley, oats, upland cotton, 
long grain rice, medium grain rice, pulse crops, soybeans, and 
other oilseeds. 
(5) DIRECT PAYMENT.—The term ‘‘direct payment’’ 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 Secretary under section 1104 to deter-
mine 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 staple cotton, designated by 
the Secretary, having characteristics needed for various 
end uses for which United States upland cotton is not 
suitable and grown in irrigated cotton-growing regions of 
the United States designated by the Secretary or other 
areas designated by the Secretary as suitable for the 
production of the varieties or types; and 
(B) is ginned on a roller-type gin or, if authorized 
by the Secretary, ginned on another type gin for experi-
mental purposes. 
(8) LOAN COMMODITY.—The term ‘‘loan commodity’’ means 
wheat, corn, grain sorghum, barley, oats, upland cotton, extra 
long staple cotton, long grain rice, medium grain rice, soybeans, 
other oilseeds, graded wool, nongraded wool, mohair, honey, 
dry peas, lentils, small chickpeas, and large chickpeas. 
(9) MEDIUM GRAIN RICE.—The term ‘‘medium grain rice’’ 
includes short grain rice. 
(10) OTHER OILSEED.—The term ‘‘other oilseed’’ means a 
crop of sunflower seed, rapeseed, canola, safflower, flaxseed, 
mustard seed, crambe, sesame seed, or any oilseed designated 
by the Secretary. 
(11) 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 a covered commodity on a farm on 
which direct payments or counter-cyclical payments are 
made; and
H. R. 6124—16 
(B) in the case of direct payments for each of the 
2009 through 2011 crop years, 83.3 percent of the base 
acres for the covered commodity on a farm on which direct 
payments are made. 
(12) PAYMENT YIELD.—The term ‘‘payment yield’’ means 
the yield established for direct payments and the yield estab-
lished for counter-cyclical payments under section 1102 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
7912) as in effect on September 30, 2007, or under section 
1102 of this Act, for a farm for a covered commodity. 
(13) PRODUCER.— 
(A) IN
GENERAL.—The term ‘‘producer’’ means an 
owner, operator, landlord, tenant, or sharecropper that 
shares in the risk of producing a crop 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 existence 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 hundredweight (or other appropriate 
unit) of a covered commodity 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 adjust-
ment, as appropriate, in the base acres for covered commodities 
for a farm whenever any of the following circumstances occurs: 
(A) A conservation reserve contract entered into under 
section 1231 of the Food Security 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
H. R. 6124—17 
beginning on October 1, 2007, and ending on the date 
of enactment of this Act. 
(B) Cropland is released from coverage under a con-
servation reserve contract by the Secretary, or was released 
during the period beginning 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 Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acreage 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 Secu-
rity 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 pay-
ments and counter-cyclical payments with respect to the acre-
age 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 described in paragraph 
(2) exceeds the actual cropland acreage of the farm, the Sec-
retary 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 paragraph (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 conserva-
tion 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 producing an agricultural commodity on 
the acreage. 
(D) Any 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 
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 reduction required by paragraph 
(1) will be made.
H. R. 6124—18 
(4) 
EXCEPTION
FOR
DOUBLE-CROPPED
ACREAGE.—In 
applying paragraph (1), the Secretary shall make an exception 
in the case of double cropping, as determined by the Secretary. 
(5) COORDINATED
APPLICATION
OF
REQUIREMENTS.—The 
Secretary shall take into account section 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 Secretary. 
(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 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 agricultural 
use, unless the producers on the farm demonstrate that 
the land— 
(i) remains devoted to commercial agricultural 
production; or 
(ii) is likely to be returned to the previous agricul-
tural use. 
(B) REQUIREMENT.—The Secretary shall establish 
procedures to identify land described in subparagraph (A). 
(3) REVIEW
AND
REPORT.—Each year, to ensure, to the 
maximum extent practicable, that payments 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 pay-
ments 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. 
(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.
H. R. 6124—19 
SEC. 1102. PAYMENT YIELDS. 
(a) ESTABLISHMENT AND PURPOSE.—For the purpose of making 
direct payments and counter-cyclical payments under this subtitle, 
the Secretary shall provide for the establishment of a yield for 
each farm for any designated 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 des-
ignated 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 
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 following: 
(i) The average yield for the designated oilseed 
or pulse crop determined under paragraph (1). 
(ii) The ratio resulting from dividing the national 
average yield for the designated 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 INFORMATION AVAIL-
ABLE.—To the extent that national average yield informa-
tion for a designated oilseed or pulse crop is not available, 
the Secretary shall use such information as the Secretary 
determines to be fair and equitable to 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 average 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 determining 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 payments to producers on farms 
for which base acres and payment yields are established. 
(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.
H. R. 6124—20 
(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 hundredweight. 
(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 covered commodity for 
a crop year shall be equal to the product of the following: 
(1) The payment rate specified in subsection (b). 
(2) The payment acres of the covered commodity on the 
farm. 
(3) The payment yield for the covered commodity for the 
farm. 
(d) TIME FOR PAYMENT.— 
(1) IN GENERAL.—Except as provided in paragraph (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 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 direct payment for a covered com-
modity for any of the 2008 through 2011 crop years 
to the producers on a farm. 
(ii) 2008 CROP YEAR.—If the producers on a farm 
elect to receive advance direct payments under clause 
(i) for a covered commodity for the 2008 crop year, 
as soon as practicable after the election, the Secretary 
shall make the advance direct payment to the pro-
ducers on the farm. 
(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 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, before the date the remainder of the direct payment 
is made, the producer shall be responsible for repaying the
H. R. 6124—21 
Secretary the applicable amount of the advance payment, as 
determined by the Secretary. 
SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS. 
(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 
determines 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 following: 
(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 period under subtitle B. 
(B) The payment rate in effect for the covered com-
modity under section 1103 for the purpose 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 period 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 commodities 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 hundredweight. 
(H) Medium grain rice, $10.50 per hundredweight. 
(I) Soybeans, $5.80 per bushel. 
(J) Other oilseeds, $10.10 per hundredweight. 
(2) 2009 CROP YEAR.—For purposes of the 2009 crop year, 
the target prices for covered commodities shall be as follows: 
(A) Wheat, $3.92 per bushel. 
(B) Corn, $2.63 per bushel. 
(C) Grain sorghum, $2.57 per bushel.
H. R. 6124—22 
(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 hundredweight. 
(H) Medium grain rice, $10.50 per hundredweight. 
(I) Soybeans, $5.80 per bushel. 
(J) Other oilseeds, $10.10 per hundredweight. 
(K) Dry peas, $8.32 per hundredweight. 
(L) Lentils, $12.81 per hundredweight. 
(M) Small chickpeas, $10.36 per hundredweight. 
(N) Large chickpeas, $12.81 per hundredweight. 
(3) SUBSEQUENT CROP YEARS.—For purposes of each of the 
2010 through 2012 crop years, the target prices for covered 
commodities shall be as follows: 
(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 hundredweight. 
(H) Medium grain rice, $10.50 per hundredweight. 
(I) Soybeans, $6.00 per bushel. 
(J) Other oilseeds, $12.68 per hundredweight. 
(K) Dry peas, $8.32 per hundredweight. 
(L) Lentils, $12.81 per hundredweight. 
(M) Small chickpeas, $10.36 per hundredweight. 
(N) Large chickpeas, $12.81 per hundredweight. 
(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 subsection (b) for 
the covered commodity. 
(e) PAYMENT
AMOUNT.—If counter-cyclical payments are 
required to be paid under this section for any of the 2008 through 
2012 crop years of a covered commodity, 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 of the covered commodity on the 
farm. 
(3) The payment yield for the covered commodity 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 required 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 mar-
keting year for the covered commodity, the Secretary 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 Secretary shall
H. R. 6124—23 
give producers on a farm the option to receive partial 
payments of the counter-cyclical payment projected to be 
made for that crop of the covered commodity. 
(B) ELECTION.— 
(i) IN GENERAL.—The Secretary shall allow pro-
ducers on a farm to make an election to receive partial 
payments for a covered commodity under subparagraph 
(A) at any time but not later than 60 days prior to 
the end of the marketing year for that covered com-
modity. 
(ii) DATE OF ISSUANCE.—The Secretary shall issue 
the partial payment after the date of an announcement 
by the Secretary 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 practicable thereafter, after the 
end of the applicable marketing year for the covered com-
modity. 
(4) AMOUNT OF PARTIAL PAYMENT.— 
(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 covered 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 payments exceed the actual counter-cyclical pay-
ment to be made for the covered commodity for that crop 
year. 
SEC. 1105. AVERAGE CROP REVENUE ELECTION PROGRAM. 
(a) AVAILABILITY AND ELECTION OF ALTERNATIVE APPROACH.— 
(1) AVAILABILITY OF AVERAGE CROP REVENUE ELECTION PAY-
MENTS.—As an alternative to receiving counter-cyclical pay-
ments 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
H. R. 6124—24 
election to instead receive average crop revenue election 
(referred to in this section as ‘‘ACRE’’) payments under this 
section for the initial crop year for which the election 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 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 enroll in the program under this section. 
(3) ELECTION; TIME FOR ELECTION.— 
(A) IN GENERAL.—The Secretary shall provide notice 
to producers regarding the opportunity to make each of 
the elections described 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 notice of the election must be sub-
mitted to the Secretary. 
(4) ELECTION DEADLINE.—Within the time period and in 
the manner prescribed pursuant to paragraph (3), all of the 
producers on a farm shall submit to the Secretary notice of 
an election made under paragraph (1). 
(5) EFFECT OF FAILURE TO MAKE ELECTION.—If all of the 
producers on a farm fail to make an election under paragraph 
(1), make different elections under paragraph (1), or fail to 
timely notify the Secretary of the election made, as required 
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 commod-
ities and peanuts on the farm, and to otherwise not have 
made the election 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 pay-
ments for any of the 2009 through 2012 crop years for all 
covered commodities and peanuts, the Secretary shall make 
ACRE payments available to the producers on a farm in accord-
ance with this subsection. 
(2) ACRE PAYMENT.— 
(A) IN GENERAL.—Subject to paragraph (3), in the case 
of producers on a farm described in paragraph (1), the 
Secretary shall make ACRE payments available to the 
producers 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 deter-
mined under subsection (c); is less than
H. R. 6124—25 
(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 revenue for the 
crop year for the covered commodity 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 pay-
ments beginning October 1, or as soon as practicable thereafter, 
after the end of the applicable marketing year for the covered 
commodity 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 commodity or peanuts deter-
mined under paragraph (2); and 
(B) the national average market price for the crop 
year for the covered commodity or peanuts 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 
(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 commodity or peanuts in a State shall 
equal the greater of— 
(A) the national average market price received by pro-
ducers during the 12-month marketing year for the covered 
commodity or peanuts, 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 subsection (b)(2)(A) 
and subject to subparagraph (B), the ACRE program guar-
antee for a crop year for a covered commodity or peanuts 
in a State shall equal 90 percent of the product obtained 
by multiplying— 
(i) the benchmark State yield for each planted 
acre for the crop year for the covered commodity or
H. R. 6124—26 
peanuts in a State determined under paragraph (2); 
and 
(ii) the ACRE program guarantee price for the 
crop year for the covered commodity or peanuts deter-
mined under paragraph (3). 
(B) MINIMUM AND MAXIMUM GUARANTEE.—In the case 
of each of the 2010 through 2012 crop years, the ACRE 
program guarantee for a crop year for a covered commodity 
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 paragraph (1)(A)(i), 
subject to subparagraph (B), the benchmark State yield 
for each planted acre for a crop year for a covered com-
modity or peanuts in a State shall equal the average yield 
per planted acre for the covered commodity or peanuts 
in the State for the most recent 5 crop year yields, excluding 
each of the crop years with the highest and lowest yields, 
using National 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 unrepresentative aver-
age yield for the State (as determined by the Secretary), 
the Secretary shall assign 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 planted 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 program 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 received by producers of the covered commodity or peanuts 
for the most recent 2 crop years, as determined by the Sec-
retary. 
(4) STATES WITH IRRIGATED AND NONIRRIGATED 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 covered commodity or peanuts in the State is not irrigated, 
the Secretary shall calculate a separate ACRE program guar-
antee for the irrigated and nonirrigated areas of the State 
for the covered commodity or peanuts. 
(e) ACTUAL
FARM
REVENUE.—For purposes of subsection 
(b)(2)(B)(i), the amount of the actual farm revenue for a crop year 
for a covered commodity or peanuts shall equal the amount deter-
mined by multiplying— 
(1) the actual yield for the covered commodity or peanuts 
of the producers on the farm; and
H. R. 6124—27 
(2) the national average market price for the crop year 
for the covered commodity or peanuts determined under sub-
section (c)(3). 
(f) FARM ACRE BENCHMARK REVENUE.—For purposes of sub-
section (b)(2)(B)(ii), the farm ACRE benchmark 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 producers 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 required to 
be paid for any of the 2009 through 2012 crop years of a covered 
commodity or peanuts under this section, 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— 
(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 considered 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 producers on the farm for 
the most recent 5 crop 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 CONDITION 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
H. R. 6124—28 
producers shall agree, during the crop year for which the pay-
ments are made and in exchange for the payments— 
(A) to 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.); 
(B) to comply with applicable wetland protection 
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 farm under subtitle C, for an 
agricultural or conserving use, and not for a non-
agricultural commercial, industrial, 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 agricul-
tural or conserving 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 compli-
ance with the requirements of paragraph (1). 
(3) MODIFICATION.—At the request of the transferee or 
owner, the Secretary may modify the requirements of this sub-
section 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 base acres 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 direct payment, 
counter-cyclical payment, or average crop revenue election pay-
ment dies, becomes incompetent, or is otherwise unable to 
receive the payment, the Secretary shall make the payment, 
in accordance 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 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 subtitle B, the Secretary 
shall require producers on a farm that receive payments under 
section 1105 to submit to the Secretary annual production
H. R. 6124—29 
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 assessed against the pro-
ducers on a farm for an inaccurate acreage or production report 
unless the producers on the farm knowingly and willfully fal-
sified the acreage or production report. 
(d) TENANTS AND SHARECROPPERS.—In carrying out this sub-
title, the Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall provide for 
the sharing of direct payments, counter-cyclical payments, or aver-
age crop revenue election payments among the producers on a 
farm on a fair and equitable basis. 
SEC. 1107. PLANTING FLEXIBILITY. 
(a) PERMITTED CROPS.—Subject to subsection (b), any com-
modity or crop may be planted on base acres on a farm. 
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.— 
(1) GENERAL LIMITATION.—The planting of an agricultural 
commodity specified in paragraph (3) shall be prohibited on 
base acres unless the commodity, if planted, is destroyed before 
harvest. 
(2) TREATMENT
OF
TREES
AND
OTHER
PERENNIALS.—The 
planting of an agricultural commodity 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 agricultural commodities: 
(A) Fruits. 
(B) Vegetables (other than mung beans and pulse 
crops). 
(C) Wild rice. 
(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall 
not limit the planting of an agricultural commodity specified in 
paragraph (3) of that subsection— 
(1) in any region in which there is a history of double- 
cropping of covered commodities with agricultural commodities 
specified in subsection (b)(3), as determined 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 base acres, except that direct payments and counter- 
cyclical 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 Secretary deter-
mines has an established planting history of a specific agricul-
tural commodity specified in subsection (b)(3), except that— 
(A) the quantity planted may not exceed the average 
annual planting history of such agricultural 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 determined 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.
H. R. 6124—30 
(d) PLANTING TRANSFERABILITY PILOT PROJECT.— 
(1) PILOT
PROJECT
AUTHORIZED.—Notwithstanding para-
graphs (1) and (2) of subsection (b) and in addition to the 
exceptions provided in subsection (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 toma-
toes 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 Minnesota; 
(F) 4,000 acres in the State of Ohio; and 
(G) 9,000 acres in the State of Wisconsin. 
(3) CONTRACT
AND
MANAGEMENT
REQUIREMENTS.—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 contract to produce a 
crop of a commodity specified in paragraph (1) for proc-
essing; 
(B) agree to produce the crop as part of a program 
of crop rotation on the farm to achieve agronomic and 
pest and disease management 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 reduction 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 recalculates base 
acres for a farm while the farm is included in the pilot 
project, the planting and production of a crop of a com-
modity specified in paragraph (1) on base acres for which 
a temporary reduction was made under this section shall 
be considered to be the same as the planting and production 
of a covered commodity. 
(B) PROHIBITION.—Nothing in this paragraph provides 
authority for the Secretary to recalculate base acres for 
a farm. 
(7) PILOT IMPACT EVALUATION.— 
(A) IN
GENERAL.—The Secretary shall periodically 
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 processing. 
(B) DETERMINATION.—An evaluation under subpara-
graph (A) shall include a determination as to whether— 
(i) producers of fresh fruits and vegetables are 
being negatively impacted; and
H. R. 6124—31 
(ii) existing production capacities are being sup-
planted. 
(C) REPORT.—As soon as practicable after conducting 
an evaluation under subparagraph (A), the Secretary shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes 
the results of the evaluation. 
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 producers 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 percentages 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 Secretary 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 during 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 condi-
tion beyond the control of the producers, as determined by 
the Secretary; and 
(3) in the case of a crop year for which a producer 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 medium 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 adjustment 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 Payments 
SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
LOANS FOR LOAN COMMODITIES. 
(a) NONRECOURSE LOANS AVAILABLE.— 
(1) AVAILABILITY.—For each of the 2008 through 2012 crops 
of each loan commodity, the Secretary shall make available
H. R. 6124—32 
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 conditions that are pre-
scribed 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 WETLANDS REQUIRE-
MENTS.—As a condition of the receipt of a marketing assistance 
loan under subsection (a), the producer shall 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.) and applicable wetland 
protection requirements under subtitle C of title XII of that Act 
(16 U.S.C. 3821 et seq.) during the term of the loan. 
SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 
LOANS. 
(a) 2008 CROP YEAR.—For purposes of the 2008 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. 
(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 hundred-
weight. 
(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 oilseeds: 
(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 Secretary. 
(12) In the case of dry peas, $6.22 per hundredweight. 
(13) In the case of lentils, $11.72 per hundredweight. 
(14) In the case of small chickpeas, $7.43 per hundred-
weight. 
(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
H. R. 6124—33 
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. 
(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 hundred-
weight. 
(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 oilseeds: 
(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 Secretary. 
(12) In the case of dry peas, $5.40 per hundredweight. 
(13) In the case of lentils, $11.28 per hundredweight. 
(14) In the case of small chickpeas, $7.43 per hundred-
weight. 
(15) In the case of large chickpeas, $11.28 per hundred-
weight. 
(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. 
(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 hundred-
weight. 
(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 oilseeds: 
(A) Sunflower seed. 
(B) Rapeseed.
H. R. 6124—34 
(C) Canola. 
(D) Safflower. 
(E) Flaxseed. 
(F) Mustard seed. 
(G) Crambe. 
(H) Sesame seed. 
(I) Other oilseeds designated by the Secretary. 
(12) In the case of dry peas, $5.40 per hundredweight. 
(13) In the case of lentils, $11.28 per hundredweight. 
(14) In the case of small chickpeas, $7.43 per hundred-
weight. 
(15) In the case of large chickpeas, $11.28 per hundred-
weight. 
(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 OILSEEDS.—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 commodity, a 
marketing assistance loan under section 1201 shall have a term 
of 9 months beginning on the first day of the first month after 
the month in which the loan is made. 
(b) EXTENSIONS PROHIBITED.—The Secretary may not extend 
the term of a marketing assistance loan for any loan commodity. 
SEC. 1204. REPAYMENT OF LOANS. 
(a) GENERAL RULE.—The Secretary shall permit the producers 
on a farm to repay a marketing assistance loan under section 
1201 for a loan commodity (other than upland 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 sec-
tion 1202, plus interest (determined in accordance 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 preceding 30-day period; 
and 
(B) will minimize discrepancies in marketing loan bene-
fits across State boundaries and across county boundaries; 
or 
(3) a rate that the Secretary may develop using alternative 
methods for calculating a repayment rate for a loan commodity 
that the Secretary determines will— 
(A) minimize potential loan forfeitures; 
(B) minimize the accumulation of stocks of the com-
modity by the Federal Government; 
(C) minimize the cost incurred by the Federal Govern-
ment in storing the commodity;
H. R. 6124—35 
(D) allow the commodity produced in the United States 
to be marketed freely and competitively, 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 sec-
tion 1202, plus interest (determined in accordance with section 
163 of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7283)); or 
(2) the prevailing world market price for the commodity, 
as determined and adjusted by the Secretary 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 established 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 purposes of this 
section and section 1207, the Secretary shall prescribe by regula-
tion— 
(1) a formula to determine the prevailing world market 
price for each of upland cotton, long grain rice, and medium 
grain rice; and 
(2) a mechanism by which the Secretary shall announce 
periodically those prevailing world market prices. 
(e) ADJUSTMENT
OF PREVAILING WORLD MARKET PRICE
FOR 
UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.— 
(1) RICE.—The prevailing world market price for long grain 
rice and medium grain rice determined 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 include— 
(i) a reduction equal to any United States Premium 
Factor for upland cotton of a quality higher than Mid-
dling (M) 13⁄32-inch; and 
(ii) the average costs to market the commodity, 
including average transportation costs, as determined 
by the Secretary; and 
(B) may be further adjusted, during the period begin-
ning on the date of enactment of this Act and ending 
on July 31, 2013, if the Secretary determines the adjust-
ment is necessary to— 
(i) minimize potential loan forfeitures; 
(ii) minimize the accumulation of stocks of upland 
cotton by the Federal Government; 
(iii) ensure that upland cotton produced in the 
United States can be marketed freely and competi-
tively, both domestically and internationally; and
H. R. 6124—36 
(iv) ensure an appropriate transition between cur-
rent-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 ADJUSTMENTS.—In making 
adjustments under this subsection, the Secretary shall establish 
a mechanism for determining and announcing the adjustments 
in order to avoid undue disruption in the United States market. 
(f) REPAYMENT RATES FOR CONFECTIONERY AND OTHER KINDS 
OF SUNFLOWER SEEDS.—The Secretary shall permit the producers 
on a farm to repay a marketing assistance loan under section 
1201 for confectionery and each other kind of sunflower seed (other 
than oil sunflower seed) at a rate that is the lesser of— 
(1) the loan rate established for the commodity under sec-
tion 1202, plus interest (determined in accordance 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 sunflower seed. 
(g) PAYMENT OF COTTON STORAGE COSTS.— 
(1) 2008 THROUGH
2011
CROP
YEARS.—Effective 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 payments for the 2006 crop of cotton, except 
that the rates shall be reduced by 20 percent. 
(h) AUTHORITY TO TEMPORARILY ADJUST REPAYMENT RATES.— 
(1) ADJUSTMENT
AUTHORITY.—In the event of a severe 
disruption to marketing, transportation, or related infrastruc-
ture, the Secretary may modify the repayment rate otherwise 
applicable under this section 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 effect on a short-term and temporary 
basis, as determined by the Secretary. 
SEC. 1205. LOAN DEFICIENCY PAYMENTS. 
(a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Except as provided in subsection (d), the 
Secretary may make loan deficiency payments available to pro-
ducers on a farm that, although 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
H. R. 6124—37 
pelts and hay and silage derived from a loan commodity 
are not eligible for a marketing assistance loan under sec-
tion 1201. 
(B) LOAN DEFICIENCY PAYMENT.—Effective for the 2008 
through 2012 crop years, the Secretary may make loan 
deficiency payments available under this section to pro-
ducers on a farm that produce unshorn pelts or hay and 
silage derived from a loan commodity. 
(b) COMPUTATION.—A loan deficiency payment for a loan com-
modity or commodity referred to in subsection (a)(2) shall be com-
puted by multiplying— 
(1) the payment rate determined under subsection (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 commodity, 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 assistance 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 assistance loan 
for ungraded wool may be repaid under section 1204. 
(3) HAY AND SILAGE.—In the case of hay or silage 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 assistance loan 
for the loan commodity may be repaid under section 1204. 
(d) EXCEPTION FOR EXTRA LONG STAPLE COTTON.—This section 
shall not apply with respect to extra long staple cotton. 
(e) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.—The 
Secretary shall determine the amount of the loan deficiency pay-
ment 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 pay-
ment. 
SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS 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, 
barley, or oats 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
H. R. 6124—38 
any other harvesting of the wheat, barley, or oats on that 
acreage. 
(2) GRAZING OF TRITICALE ACREAGE.—Effective for the 2008 
through 2012 crop years, with respect 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 described in subsection 
(a)(1) shall be equal to the amount determined by multiplying— 
(A) the loan deficiency payment rate determined 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 producer elects to forgo har-
vesting of wheat, barley, or oats; and 
(ii) the payment yield in effect for the calculation 
of direct payments under subtitle A with respect to 
that loan commodity on the farm or, in the case of 
a farm without a payment yield for that loan com-
modity, an appropriate yield established by the Sec-
retary 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 pay-
ment made under this section to a producer on a farm described 
in subsection (a)(2) shall be equal to the amount determined 
by multiplying— 
(A) the loan deficiency payment rate determined 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 producer elects to forgo har-
vesting of triticale; and 
(ii) the payment yield in effect for the calculation 
of direct payments under subtitle A with respect to 
wheat on the farm or, in the case of a farm without 
a payment yield for wheat, an appropriate yield estab-
lished by the Secretary in a manner consistent with 
section 1102 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 7912). 
(c) TIME, MANNER, AND AVAILABILITY OF PAYMENT.— 
(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 establish an 
availability period for the payments authorized by this 
section. 
(B) CERTAIN
COMMODITIES.—In the case of wheat, 
barley, and oats, the availability period shall be consistent
H. R. 6124—39 
with the availability period for the commodity established 
by the Secretary for marketing assistance loans authorized 
by this subtitle. 
(d) PROHIBITION
ON CROP INSURANCE INDEMNITY
OR NON-
INSURED 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 a policy or plan of insurance 
authorized under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) or noninsured crop assistance under section 196 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333). 
SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
COTTON. 
(a) SPECIAL IMPORT QUOTA.— 
(1) DEFINITION OF SPECIAL IMPORT QUOTA.—In this sub-
section, 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 
quoted for Middling (M) 13⁄32-inch cotton, delivered to a 
definable and significant international market, as deter-
mined by the Secretary, exceeds 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 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 Sec-
retary’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 subsection if a quota period has been established 
under subsection (b). 
(6) PREFERENTIAL TARIFF TREATMENT.—The quantity under 
a special import quota shall be considered 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 Preference Act 
(19 U.S.C. 3203); 
(C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
2463(d)); and
H. R. 6124—40 
(D) General Note 3(a)(iv) to the Harmonized Tariff 
Schedule. 
(7) LIMITATION.—The quantity of cotton entered 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 
domestic mills at the seasonally adjusted average rate of the 
3 months immediately preceding the first special 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 Depart-
ment of Agriculture, and the Department of the Treasury— 
(i) the carry-over of upland cotton at the beginning 
of the marketing year (adjusted to 480-pound bales) 
in which the quota is established; 
(ii) production of the current crop; and 
(iii) imports to the latest date available during 
the marketing year. 
(B) DEMAND.—The term ‘‘demand’’ means— 
(i) the average seasonally adjusted annual 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 cotton 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 whenever the Secretary deter-
mines and announces that the average price of the base quality 
of upland cotton, as determined by the Secretary, in the des-
ignated spot markets for a month exceeded 130 percent of 
the average price of the quality of cotton in the markets for 
the preceding 36 months, notwithstanding any other provision 
of law, there shall immediately 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 consumption of upland 
cotton at the seasonally adjusted average rate of the most 
recent 3 months for which data are available or as esti-
mated by the Secretary. 
(B) QUANTITY IF PRIOR QUOTA.—If a quota has been 
established under this subsection 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 demand.
H. R. 6124—41 
(C) PREFERENTIAL TARIFF TREATMENT.—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 Harmonized Tariff 
Schedule. 
(D) QUOTA ENTRY PERIOD.—When a quota is estab-
lished under this subsection, cotton 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 overlaps an existing quota 
period or a special quota period 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, provide economic adjustment assist-
ance 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.— 
(A) BEGINNING PERIOD.—During the period 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 beginning on 
August 1, 2012, the value of the assistance provided under 
paragraph (1) shall be 3 cents per pound. 
(3) ALLOWABLE
PURPOSES.—Economic adjustment assist-
ance 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, convert, or expand land, plant, buildings, equipment, 
facilities, or machinery. 
(4) REVIEW OR AUDIT.—The Secretary may conduct such 
review or audit of the records of a domestic user under this 
subsection as the Secretary determines necessary to carry out 
this subsection. 
(5) IMPROPER USE OF ASSISTANCE.—If the Secretary deter-
mines, after a review or audit of the records of the domestic 
user, that economic adjustment assistance under this subsection 
was not used for the purposes specified in paragraph (3), the 
domestic 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 sub-
section for a period of 1 year following the determination 
of the Secretary.
H. R. 6124—42 
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 enact-
ment 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 cotton produced 
in the United States; and 
(3) to ensure that extra long staple cotton produced 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 affecting the competitiveness of such cotton), 
as determined 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 competitiveness 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 section 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 sub-
section, the term ‘‘high moisture state’’ means corn or grain 
sorghum having a moisture content 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 sorghum, 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 inspected, cer-
tified commercial scale, including a licensed warehouse,
H. R. 6124—43 
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 measurements of the 
standing or stored crop in regions of the United States, 
as determined by the Secretary, that do not have cer-
tified commercial scales from which certified scale 
tickets may be obtained within reasonable 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 har-
vested 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 dead-
lines established 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 sorghum in a 
high moisture state harvested on the producer’s farm; by 
(B) the lower of the farm program payment yield used 
to make counter-cyclical payments 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 COTTON.—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 established 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 subsection (e), the Sec-
retary may make appropriate adjustments in the loan rates for 
any loan commodity (other than cotton) for differences in grade, 
type, quality, location, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments under sub-
section (a) shall, to the maximum extent practicable, 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 counties in a manner 
that results in the lowest loan rate being 95 percent of the
H. R. 6124—44 
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 national 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 imple-
ment 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 subpara-
graph (A) shall include— 
(i) the elimination of warehouse location differen-
tials; 
(ii) the establishment of differentials for the var-
ious quality factors and staple lengths of cotton based 
on a 3-year, weighted moving average of the weighted 
designated spot market regions, as determined 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 exceeds the premium or 
discount associated with a leaf grade that is 1 better 
than the applicable color grade. 
(C) 
DISCRETIONARY
REVISIONS.—Revisions 
under 
subparagraph (A) may include— 
(i) the use of non-spot market price data, in addi-
tion to spot market price data, that would enhance 
the accuracy of the price information used in deter-
mining quality adjustments under this subsection; 
(ii) adjustments in the premiums or discounts asso-
ciated with upland cotton with a staple length of 33 
or above due to micronaire with the goal of eliminating 
any unnecessary artificial splits in the calculations 
of the premiums or discounts; and 
(iii) such other adjustments as the Secretary deter-
mines appropriate, after consultations conducted in 
accordance with paragraph (3). 
(3) CONSULTATION WITH PRIVATE SECTOR.— 
(A) PRIOR
TO
REVISION.—In making adjustments to 
the loan rate for cotton (including any review of the adjust-
ments) as provided in this subsection, the Secretary shall 
consult with representatives of the United States cotton 
industry. 
(B) INAPPLICABILITY OF FEDERAL ADVISORY COMMITTEE 
ACT.—The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to consultations under this subsection.
H. R. 6124—45 
(4) REVIEW OF ADJUSTMENTS.—The Secretary may review 
the operation of the upland cotton quality adjustments imple-
mented pursuant to this subsection and may make further 
revisions to the administration of the loan program for upland 
cotton, by— 
(A) revoking or revising any actions taken under para-
graph (2)(B); or 
(B) revoking or revising any actions taken or author-
ized to be taken under paragraph (2)(C). 
(e) RICE.—The Secretary shall not make adjustments in the 
loan rates for long grain rice and medium grain rice, except for 
differences in grade and quality (including 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 assigned 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 September 
30, 2007, subject to any adjustment under section 1302 
of this Act. 
(B) COVERED COMMODITIES.—The term ‘‘base acres’’, 
with respect to a covered commodity, has the meaning 
given the term in section 1101. 
(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 payment’’ 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 whether 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-cyclical payments are made; and 
(B) in the case of direct payments for each of the 
2009 through 2011 crop years, 83.3 percent 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 payments and the yield established 
for counter-cyclical 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 producing a crop on a farm and 
is entitled to share in the crop available for marketing
H. R. 6124—46 
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 existence 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; 
(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 determine the payment rate for 
counter-cyclical payments. 
(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 PEANUTS.— 
(1) IN GENERAL.—The Secretary shall provide for an adjust-
ment, as appropriate, in the base acres for peanuts for a farm 
whenever any of the following circumstances occur: 
(A) A conservation reserve contract entered into under 
section 1231 of the Food Security 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. 
(B) Cropland is released from coverage under a con-
servation reserve contract by the Secretary, or was released 
during the period beginning 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 Investment Act of 2002 (7 U.S.C. 7911(a)(2)). 
(D) The producer has eligible oilseed acreage 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 Secu-
rity 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 subparagraph (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 subsection 
or a prorated payment under the conservation reserve contract, 
but not both. 
(b) PREVENTION OF EXCESS BASE ACRES FOR PEANUTS.— 
(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 actual cropland acreage of the
H. R. 6124—47 
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 paragraph (1), the 
Secretary shall include the following: 
(A) Any base acres for the farm for a covered com-
modity. 
(B) Any acreage on the farm enrolled in the conserva-
tion 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 producing an agricultural commodity on 
the acreage. 
(D) Any 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 
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 covered commodities against 
which the reduction required by paragraph (1) will be made. 
(4) 
EXCEPTION
FOR
DOUBLE-CROPPED
ACREAGE.—In 
applying paragraph (1), the Secretary shall make an exception 
in the case of double cropping, as determined by the Secretary. 
(5) COORDINATED
APPLICATION
OF
REQUIREMENTS.—The 
Secretary shall take into account section 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 Secretary. 
(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 agricultural use, unless 
the producers on the farm demonstrate that the land— 
(i) remains devoted to commercial agricultural 
production; or 
(ii) is likely to be returned to the previous agricul-
tural use. 
(B) REQUIREMENT.—The Secretary shall establish 
procedures to identify land described in subparagraph (A).
H. R. 6124—48 
(3) REVIEW
AND
REPORT.—Each year, to ensure, to the 
maximum extent practicable, that payments 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 pay-
ments 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. 
(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 PEANUTS. 
(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 established. 
(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 following: 
(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 paragraph (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 direct 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 producers on a farm 
elect to receive advance direct payments under clause
H. R. 6124—49 
(i) for peanuts 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 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, before 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. 
SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEA-
NUTS. 
(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-cyclical 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 effec-
tive 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 determined 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. 
(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 subsection (b) for 
peanuts. 
(e) PAYMENT
AMOUNT.—If counter-cyclical payments are 
required to be paid for any of the 2008 through 2012 crops of
H. R. 6124—50 
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 required to be made under this section 
for a crop of peanuts, beginning October 1, or as soon as 
practicable after the end of the marketing year, the Secretary 
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 estimates 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 pro-
ducers on a farm to make an election to receive partial 
payments under subparagraph (A) at any time but 
not later than 60 days prior to the end of the marketing 
year for the crop. 
(ii) DATE OF ISSUANCE.—The Secretary shall issue 
the partial payment after the date of an announcement 
by the Secretary 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 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 that crop; and 
(B) the final partial payment shall be made beginning 
October 1, or as soon as practicable thereafter, after the 
end of the applicable marketing year for that crop. 
(4) AMOUNT OF PARTIAL PAYMENTS.— 
(A) FIRST
PARTIAL
PAYMENT.—For each of the 2008 
through 2010 crop years, 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 crop year, as determined by the Secretary. 
(B) FINAL
PAYMENT.—The final payment for a crop 
year shall be equal to the difference between— 
(i) the actual counter-cyclical payment to be made 
to the producers 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 payments exceed the actual counter-cyclical pay-
ment to be made for that crop year.
H. R. 6124—51 
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON 
PROVISION OF PAYMENTS. 
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.— 
(1) REQUIREMENTS.—Before the producers on a farm may 
receive direct payments or counter-cyclical payments under this 
subtitle, or average crop revenue election payments under sec-
tion 1105, 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 require-
ments 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 protection 
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 commer-
cial, industrial, 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 agricul-
tural or conserving 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 compli-
ance with the requirements of paragraph (1). 
(3) MODIFICATION.—At the request of the transferee or 
owner, the Secretary may modify the requirements of this sub-
section 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 direct payment, 
counter-cyclical payment, or average crop revenue election pay-
ment dies, becomes incompetent, or is otherwise unable to 
receive the payment, the Secretary shall make the payment, 
in accordance with rules issued by the Secretary. 
(c) ACREAGE REPORTS.—
H. R. 6124—52 
(1) IN
GENERAL.—As a condition on the receipt of any 
benefits under this subtitle, the Secretary shall require pro-
ducers 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 sub-
title, the Secretary shall provide adequate safeguards to protect 
the interests of tenants and sharecroppers. 
(e) SHARING OF PAYMENTS.—The Secretary shall provide for 
the sharing of direct payments, counter-cyclical payments, or aver-
age crop revenue election payments under section 1105 among 
the producers on a farm on a fair and equitable basis. 
SEC. 1306. PLANTING FLEXIBILITY. 
(a) PERMITTED CROPS.—Subject to subsection (b), any com-
modity or crop may be planted on the base acres for peanuts 
on a farm. 
(b) LIMITATIONS REGARDING CERTAIN COMMODITIES.— 
(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 harvest. 
(2) TREATMENT
OF
TREES
AND
OTHER
PERENNIALS.—The 
planting of an agricultural commodity 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 agricultural commodities: 
(A) Fruits. 
(B) Vegetables (other than mung beans and pulse 
crops). 
(C) Wild rice. 
(c) EXCEPTIONS.—Paragraphs (1) and (2) of subsection (b) shall 
not limit the planting of an agricultural commodity specified in 
paragraph (3) of that subsection— 
(1) in any region in which there is a history of double- 
cropping of peanuts with agricultural commodities specified 
in subsection (b)(3), as determined 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-cyclical 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 Secretary deter-
mines has an established planting history of a specific agricul-
tural commodity specified in subsection (b)(3), except that— 
(A) the quantity planted may not exceed the average 
annual planting history of such agricultural 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 determined by the 
Secretary; and
H. R. 6124—53 
(B) direct payments and counter-cyclical payments 
shall be reduced by an acre for each acre planted to such 
agricultural commodity. 
SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
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 prescribed by the Secretary 
and at the loan rate established 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 peanuts produced on the farm. 
(4) OPTIONS FOR OBTAINING LOAN.—A marketing 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 approved by the Secretary; 
or 
(B) the Farm Service Agency. 
(5) STORAGE OF LOAN PEANUTS.—As a condition 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 section, the individual or entity shall agree— 
(A) to provide such storage on a nondiscriminatory 
basis; and 
(B) to comply with such additional requirements as 
the Secretary considers appropriate to accomplish the pur-
poses of this section and promote fairness in the adminis-
tration of the benefits 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 Secretary. 
(B) REDEMPTION
AND
FORFEITURE.—The Secretary 
shall— 
(i) require the repayment of handling and other 
associated costs paid under subparagraph (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 section. 
(7) MARKETING.—A marketing association or cooperative 
may market peanuts for which a loan is made under this 
section in any manner that conforms to consumer needs, 
including the separation of peanuts by type and quality.
H. R. 6124—54 
(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. 
(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 sub-
section (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 Government; 
(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 competitively, both domesti-
cally and internationally. 
(2) AUTHORITY
TO
TEMPORARILY
ADJUST
REPAYMENT 
RATES.— 
(A) ADJUSTMENT AUTHORITY.—In the event of a severe 
disruption to marketing, transportation, or related infra-
structure, the Secretary may modify the repayment rate 
otherwise applicable under this subsection for marketing 
assistance loans for peanuts under subsection (a). 
(B) DURATION.—An adjustment made under subpara-
graph (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 subsection. 
(2) COMPUTATION.—A loan deficiency payment under this 
subsection shall be computed by multiplying— 
(A) the payment rate determined under paragraph (3) 
for peanuts; by 
(B) the quantity of the peanuts produced by the pro-
ducers, excluding any quantity for which the producers 
obtain a marketing assistance loan under subsection (a). 
(3) PAYMENT RATE.—For purposes of this subsection, the 
payment rate shall be the amount by which— 
(A) the loan rate established under subsection (b); 
exceeds
H. R. 6124—55 
(B) the rate at which a loan may be repaid under 
subsection (d). 
(4) EFFECTIVE DATE FOR PAYMENT RATE DETERMINATION.— 
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 
payment rate in effect under paragraph (3) as of the date 
the producers request the payment. 
(f) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIRE-
MENTS.—As a condition of the receipt of a marketing assistance 
loan under subsection (a), the producer shall 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.) and applicable wetland 
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 ADMINISTRA-
TIVE EXPENSES.—The Secretary may implement any reimbursable 
agreements or provide for the payment of administrative expenses 
under this subtitle only in a manner that is consistent with such 
activities in regard to other commodities. 
SEC. 1308. ADJUSTMENTS OF LOANS. 
(a) ADJUSTMENT AUTHORITY.—The Secretary may make appro-
priate adjustments in the loan rates for peanuts for differences 
in grade, type, quality, location, and other factors. 
(b) MANNER
OF ADJUSTMENT.—The adjustments under sub-
section (a) shall, to the maximum extent practicable, be made 
in such a manner that the average loan level for peanuts 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, D, and E. 
(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 national average loan rate 
for any year. 
Subtitle D—Sugar 
SEC. 1401. SUGAR PROGRAM. 
(a) IN
GENERAL.—Section 156 of the Federal Agriculture 
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;
H. R. 6124—56 
‘‘(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 applicable 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 begin-
ning of the fiscal year and shall mature at the earlier of— 
‘‘(A) the end of the 9-month period beginning 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 subsequent 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 nonrecourse 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 Secretary 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 Sec-
retary may establish appropriate minimum payments 
for purposes of this paragraph. 
‘‘(ii) LIMITATION.—In the case of sugar beets, the 
minimum payment established under clause (i) shall 
not exceed the rate of payment provided for under 
the applicable contract between a sugar beet producer 
and a sugar beet processor. 
‘‘(3) ADMINISTRATION.—The Secretary may not impose or 
enforce any prenotification requirement, or similar administra-
tive requirement not otherwise 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.—
H. R. 6124—57 
‘‘(1) DEFINITION OF IN-PROCESS SUGARS AND SYRUPS.—In 
this subsection, the term ‘in-process sugars and syrups’ does 
not include raw sugar, liquid sugar, invert sugar, invert syrup, 
or other finished 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 serving 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 processed into raw cane sugar 
or refined beet sugar, the processor shall transfer the sugar 
to the Commodity Credit Corporation. 
‘‘(C) PAYMENT
TO
PROCESSOR.—On transfer of the 
sugar, the Secretary shall make a payment to the processor 
in an amount equal to the amount obtained by multi-
plying— 
‘‘(i) the difference between— 
‘‘(I) the loan rate for raw cane sugar or refined 
beet sugar, as appropriate; and 
‘‘(II) the loan rate the processor received under 
paragraph (3); by 
‘‘(ii) the quantity of sugar transferred to the Sec-
retary. 
‘‘(5) LOAN CONVERSION.—If the processor does not forfeit 
the collateral as described in paragraph (4), but instead further 
processes the in-process sugars 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 refined beet 
sugar, as appropriate. 
‘‘(6) TERM OF LOAN.—The term of a loan made under this 
subsection for a quantity of in-process 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, consistent 
with subsection (c). 
‘‘(f) AVOIDING FORFEITURES; CORPORATION INVENTORY DISPOSI-
TION.— 
‘‘(1) IN GENERAL.—Subject to subsection (d)(3), to the max-
imum extent practicable, the Secretary shall operate the pro-
gram established under this section at no cost to the Federal 
Government by avoiding the forfeiture of sugar to the Com-
modity Credit Corporation.
H. R. 6124—58 
‘‘(2) INVENTORY DISPOSITION.— 
‘‘(A) IN
GENERAL.—To carry out paragraph (1), the 
Commodity Credit Corporation may accept bids to obtain 
raw cane sugar or refined beet sugar in the inventory 
of the Commodity Credit Corporation from (or otherwise 
make available such commodities, on appropriate terms 
and conditions, to) processors of sugarcane and processors 
of sugar beets (acting in conjunction with the producers 
of the sugarcane or sugar beets processed by the processors) 
in return for the reduction of production of raw cane sugar 
or refined beet sugar, as appropriate. 
‘‘(B) BIOENERGY
FEEDSTOCK.—If a reduction in the 
quantity of production accepted under subparagraph (A) 
involves sugar beets or 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 bio-
energy feedstock. 
‘‘(C) ADDITIONAL AUTHORITY.—The authority provided 
under this paragraph is in addition 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 refiner, and sugar beet proc-
essor shall furnish the Secretary, on a monthly basis, such 
information as the Secretary may require to administer sugar 
programs, including the quantity of purchases of sugarcane, 
sugar beets, and sugar, and production, importation, distribu-
tion, 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 producers of 
sugarcane to report, in the manner prescribed by the Sec-
retary, 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 report, 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 
Secretary, the quantities of the products imported by the 
importer and the sugar content or equivalent of the prod-
ucts. 
‘‘(B) TARIFF-RATE QUOTAS.—Subparagraph (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. 
‘‘(4) COLLECTION OF INFORMATION ON MEXICO.— 
‘‘(A) COLLECTION.—The Secretary shall collect—
H. R. 6124—59 
‘‘(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 subpara-
graph (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 violation. 
‘‘(6) MONTHLY
REPORTS.—Taking into consideration the 
information received under this subsection, the Secretary shall 
publish on a monthly basis composite data on production, 
imports, distribution, and stock levels of sugar. 
‘‘(h) SUBSTITUTION OF REFINED SUGAR.—For purposes of Addi-
tional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule 
of the United States and the reexport programs and polyhydric 
alcohol program administered 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 substitut-
able for the export of sugar and sugar-containing products under 
those programs. 
‘‘(i) EFFECTIVE PERIOD.—This section shall be effective 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 INTERNATIONAL 
SUGAR ORGANIZATION. 
The Secretary shall work with the Secretary of State to restore 
United States membership in the International 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), respectively; 
(2) by inserting before paragraph (2) (as so redesignated) 
the following: 
‘‘(1) HUMAN CONSUMPTION.—The term ‘human consump-
tion’, 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 redesignated) 
the following: 
‘‘(3) MARKET.— 
‘‘(A) IN GENERAL.—The term ‘market’ means to sell 
or otherwise dispose of in commerce in the United States. 
‘‘(B) INCLUSIONS.—The term ‘market’ includes—
H. R. 6124—60 
‘‘(i) the forfeiture of sugar under the loan program 
for sugar established under section 156 of the Federal 
Agriculture Improvement 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 production of ethanol 
or other bioenergy product, if the disposition of the 
sugar is administered by the Secretary under section 
9010 of the Farm Security and Rural Investment Act 
of 2002. 
‘‘(C) MARKETING YEAR.—Forfeited sugar described in 
subparagraph (B)(i) shall be considered to have been mar-
keted 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: 
‘‘SEC. 359b. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR. 
‘‘(a) SUGAR ESTIMATES.— 
‘‘(1) IN GENERAL.—Not later than August 1 before the begin-
ning 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 provide for 
reasonable carryover stocks; 
‘‘(C) the quantity of sugar that will be available from 
carry-in stocks for human consumption in the United States 
during the crop year; 
‘‘(D) the quantity of sugar that will be available from 
the domestic processing of sugarcane, sugar beets, and 
in-process beet sugar; and 
‘‘(E) the quantity of sugars, syrups, and molasses that 
will be imported for human consumption or to be used 
for the extraction of sugar for human consumption in the 
United States during the crop year, whether the articles 
are under a tariff-rate quota or are in excess 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 refined and reexported in refined form 
or in products containing sugar. 
‘‘(3) REESTIMATES.—The Secretary shall make reestimates 
of sugar consumption, stocks, production, 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—
H. R. 6124—61 
‘‘(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 sugar established under section 156 of 
the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7272); but 
‘‘(B) not less than 85 percent of the estimated 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 sucrose for human consump-
tion, derived from sugar cane, sugar beets, molasses, or sugar 
in the allotments 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 processors of sugar 
intended for domestic human consumption that has been proc-
essed 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 administration of 
marketing allotments for each of the 2002 through 2007 crop 
years, the marketing allotments shall not apply to sugar sold— 
‘‘(A) to facilitate the exportation of the sugar to a 
foreign country, except that the exports of sugar shall 
not be eligible to receive credits under reexport programs 
for refined sugar or sugar containing products administered 
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 adminis-
tered by the Secretary under section 9010 of the Farm 
Security and Rural Investment Act of 2002. 
‘‘(3) REQUIREMENT.—The sale of sugar described in para-
graph (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 proc-
essor of sugar beets or sugarcane shall market for domestic 
human consumption a quantity of sugar in excess of the alloca-
tion established for the processor, except— 
‘‘(A) to enable another processor to fulfill an allocation 
established for that other processor; 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 Corpora-
tion 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 viola-
tion.’’.
H. R. 6124—62 
(c) ESTABLISHMENT OF FLEXIBLE MARKETING ALLOTMENTS.— 
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 establish 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 forfeiture of sugar to the 
Commodity Credit Corporation; but 
‘‘(B) not less than a quantity equal to 85 percent of 
the estimated quantity of sugar for domestic human 
consumption for the crop year. 
‘‘(2) ADJUSTMENT.—Subject to paragraph (1), the Secretary 
shall adjust the overall allotment quantity to maintain— 
‘‘(A) raw and refined sugar prices above forfeiture levels 
to avoid the forfeiture of sugar to the Commodity Credit 
Corporation; and 
‘‘(B) adequate supplies of raw and refined sugar in 
the domestic market.’’; 
(2) in subsection (d)(2), by inserting ‘‘or in-process beet 
sugar’’ before the period at the end; 
(3) in subsection (g)(1)— 
(A) by striking ‘‘(1) IN GENERAL.—The Secretary’’ and 
inserting the following: 
‘‘(1) ADJUSTMENTS.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
Secretary’’; and 
(B) by adding at the end the following: 
‘‘(B) LIMITATION.—In carrying out subparagraph (A), 
the Secretary may not reduce the overall allotment quantity 
to a quantity of 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 inserting ‘‘If’’; and 
(2) in paragraph (2), by striking subparagraphs (G), (H), 
and (I) and inserting the following: 
‘‘(G) SALE OF FACTORIES OF A PROCESSOR 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 assign 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 the buyer and 
the seller have agreed upon the transfer of a different 
portion of the allocation of the seller, in which case,
H. R. 6124—63 
the Secretary shall transfer that portion agreed upon 
by the buyer and seller. 
‘‘(ii) APPLICATION
OF
ALLOCATION.—The assign-
ment 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 ALLOCA-
TION.—If the assignment of the allocation under clause 
(i) to the buyer for the 1 or more purchased factories 
cannot 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
PRODUCTION, 
REOPENING, OR
ACQUIRING
AN
EXISTING
FACTORY
WITH 
PRODUCTION HISTORY.— 
‘‘(i) DEFINITION OF NEW ENTRANT.— 
‘‘(I) IN GENERAL.—In this subparagraph, the 
term ‘new entrant’ means an individual, corpora-
tion, or other entity that— 
‘‘(aa) does not have an allocation of the 
beet sugar allotment under this part; 
‘‘(bb) is not affiliated with any other indi-
vidual, corporation, or entity that has an 
allocation of beet sugar under this part 
(referred 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 purposes of subclause 
(I)(bb), a new entrant and a third party shall be 
considered to be affiliated if— 
‘‘(aa) the third party has an ownership 
interest in the new entrant; 
‘‘(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 facilities 
or assets of the third party; or 
‘‘(ee) there are any other similar cir-
cumstances by which the Secretary determines 
that the new entrant and the third party are 
affiliated. 
‘‘(ii) ALLOCATION FOR A NEW ENTRANT THAT HAS 
CONSTRUCTED A NEW FACTORY OR REOPENED A FACTORY 
THAT WAS NOT OPERATED SINCE BEFORE 1998.—If a new 
entrant constructs a new sugar beet processing factory,
H. R. 6124—64 
or acquires and reopens a sugar beet processing factory 
that last processed sugar beets prior to the 1998 crop 
year and there is no allocation currently associated 
with the factory, the Secretary shall— 
‘‘(I) assign an allocation for beet sugar to the 
new entrant that provides 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 utiliza-
tion 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 allocation to the new entrant. 
‘‘(iii) ALLOCATION FOR A NEW ENTRANT THAT HAS 
ACQUIRED AN EXISTING FACTORY WITH A PRODUCTION 
HISTORY.— 
‘‘(I) IN GENERAL.—If a new entrant acquires 
an existing factory that 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 allocation associated with the factory, 
the Secretary shall transfer to the new entrant 
a portion of the allocation of the current allocation 
holder to reflect the historical contribution of the 
production of the 1 or more sold factories to the 
total allocation of the current allocation holder, 
unless the new entrant and current allocation 
holder have agreed upon the transfer of a different 
portion of the allocation of the current allocation 
holder, in which case, the Secretary shall transfer 
that portion agreed upon by the new entrant and 
the current allocation holder. 
‘‘(II) PROHIBITION.—In the absence of a mutual 
agreement described in subclause (I), the new 
entrant shall be ineligible for a beet sugar alloca-
tion. 
‘‘(iv) APPEALS.—Any decision made under this sub-
section may be appealed to the Secretary in accordance 
with section 359i.’’. 
(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) of the Agricul-
tural 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.—Section 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 para-
graphs (2) through (8), respectively; 
(3) by inserting before paragraph (2) (as so redesignated) 
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
H. R. 6124—65 
the production of sugarcane from which is produced sugar 
for human consumption. 
‘‘(B) EXCLUSION.—The term ‘seed’ does not include seed 
of a high-fiber cane variety dedicated to other uses, as 
determined by the Secretary’’; 
(4) in paragraph (3) (as so redesignated)— 
(A) in the first sentence— 
(i) by striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graph (2)’’; and 
(ii) by inserting ‘‘sugar produced from’’ after 
‘‘quantity of’’; and 
(B) in the second sentence, by striking ‘‘paragraph 
(7)’’ and inserting ‘‘paragraph (8)’’; 
(5) in the first sentence of paragraph (6)(C) (as so redesig-
nated), by inserting ‘‘for sugar’’ before ‘‘in excess of the farm’s 
proportionate share’’; and 
(6) in paragraph (8) (as so redesignated), by inserting 
‘‘sugar from’’ after ‘‘the amount of’’. 
(g) SPECIAL RULES.—Section 359g of the Agricultural Adjust-
ment Act of 1938 (7 U.S.C. 1359gg) is amended— 
(1) by striking subsection (a) and inserting the following: 
‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.— 
‘‘(1) TRANSFER
AUTHORIZED.—For the purpose of estab-
lishing proportionate shares for sugarcane farms under section 
359f(c), the Secretary, on application of any producer, with 
the written consent of all owners of a farm, may transfer 
the acreage base history of the farm to any other parcels 
of land of the applicant. 
‘‘(2) CONVERTED ACREAGE BASE.— 
‘‘(A) IN GENERAL.—Sugarcane acreage base established 
under section 359f(c) that has been or is converted to 
nonagricultural use on or after May 13, 2002, may be 
transferred to other land suitable for the production of 
sugarcane that can be delivered to a processor in a propor-
tionate share State in accordance with this paragraph. 
‘‘(B) NOTIFICATION.—Not later than 90 days after the 
Secretary becomes aware of a conversion of any sugarcane 
acreage base to a nonagricultural use, the Secretary shall 
notify the 1 or more affected landowners of the transfer-
ability of the applicable sugarcane acreage base. 
‘‘(C) INITIAL TRANSFER PERIOD.—The owner of the base 
attributable to the acreage at the time of the conversion 
shall be afforded 90 days from the date of the receipt 
of the notification under subparagraph (B) to transfer the 
base to 1 or more farms owned by the owner. 
‘‘(D) GROWER OF RECORD.—If a transfer under subpara-
graph (C) cannot be accomplished during the period speci-
fied in that subparagraph, the grower of record with regard 
to the acreage base on the date on which the acreage 
was converted to nonagricultural use shall— 
‘‘(i) be notified; and 
‘‘(ii) have 90 days from the date of the receipt 
of the notification to transfer the base to 1 or more 
farms operated by the grower. 
‘‘(E) POOL DISTRIBUTION.— 
‘‘(i) IN
GENERAL.—If transfers under subpara-
graphs (B) and (C) cannot be accomplished during the
H. R. 6124—66 
periods specified in those subparagraphs, the county 
committee of the Farm Service Agency for the 
applicable county shall place the acreage base in a 
pool for possible assignment to other farms. 
‘‘(ii) ACCEPTANCE OF REQUESTS.—After providing 
reasonable notice to farm owners, operators, and 
growers of record in the county, the county committee 
shall accept requests from owners, operators, and 
growers of record in the county. 
‘‘(iii) ASSIGNMENT.—The county committee shall 
assign the acreage base to other farms in the county 
that are eligible and capable of accepting the acreage 
base, based on a random drawing from among the 
requests received under clause (ii). 
‘‘(F) STATEWIDE REALLOCATION.— 
‘‘(i) IN
GENERAL.—Any acreage base remaining 
unassigned after the transfers and processes described 
in subparagraphs (A) through (E) shall be made avail-
able to the State committee of the Farm Service Agency 
for allocation among the remaining county committees 
in the State representing counties with farms eligible 
for assignment of the base, based on a random drawing. 
‘‘(ii) ALLOCATION.—Any county committee receiving 
acreage base under this subparagraph shall allocate 
the acreage base to eligible farms using the process 
described in subparagraph (E). 
‘‘(G) STATUS OF REASSIGNED BASE.—After acreage base 
has been reassigned in accordance with this subparagraph, 
the acreage base shall— 
‘‘(i) remain on the farm; and 
‘‘(ii) be subject to the transfer provisions of para-
graph (1).’’; and 
(2) in subsection (d)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘affected’’ before ‘‘crop-share 
owners’’ each place it appears; and 
(ii) by striking ‘‘, and from the processing company 
holding the applicable allocation for such shares,’’; and 
(B) in paragraph (2), by striking ‘‘based on’’ and all 
that follows through the end of subparagraph (B) and 
inserting ‘‘based on— 
‘‘(A) the number of acres of sugarcane base being trans-
ferred; and 
‘‘(B) the pro rata amount of allocation at the processing 
company holding the applicable allocation that equals the 
contribution of the grower to allocation of the processing 
company for the sugarcane acreage base being trans-
ferred.’’. 
(h) APPEALS.—Section 359i of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359ii) is amended— 
(1) in subsection (a), by inserting ‘‘or 359g(d)’’ after ‘‘359f’’; 
and 
(2) by striking subsection (c). 
(i) REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.—Section 
359k of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359kk) 
is repealed.
H. R. 6124—67 
(j) ADMINISTRATION OF TARIFF RATE QUOTAS.—Part VII of sub-
title B of title III of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1359aa) (as amended by subsection (i)) is amended by 
adding at the end the following: 
‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—Except as provided in paragraph (2) 
and notwithstanding any other provision of law, at the begin-
ning of the quota year, the Secretary shall establish the tariff- 
rate quotas for raw cane sugar and refined sugars at the 
minimum level necessary to comply with obligations under 
international trade agreements that have been approved by 
Congress. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to specialty 
sugar. 
‘‘(b) ADJUSTMENT.— 
‘‘(1) BEFORE APRIL 1.—Before April 1 of each fiscal year, 
if there is an emergency shortage of sugar in the United States 
market that is caused by a war, flood, hurricane, or other 
natural disaster, or other similar event as determined by the 
Secretary— 
‘‘(A) the Secretary shall take action to increase the 
supply of sugar in accordance with sections 359c(b)(2) and 
359e(b), including an increase in the tariff-rate quota for 
raw cane sugar to accommodate the reassignment to 
imports; and 
‘‘(B) if there is still a shortage of sugar in the United 
States market, and marketing of domestic sugar has been 
maximized, and domestic raw cane sugar refining capacity 
has been maximized, the Secretary may increase the tariff- 
rate quota for refined sugars sufficient to accommodate 
the supply increase, if the further increase will not threaten 
to result in the forfeiture of sugar pledged as collateral 
for a loan under section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272). 
‘‘(2) ON OR AFTER APRIL 1.—On or after April 1 of each 
fiscal year— 
‘‘(A) the Secretary may take action to increase the 
supply of sugar in accordance with sections 359c(b)(2) and 
359e(b), including an increase in the tariff-rate quota for 
raw cane sugar to accommodate the reassignment to 
imports; and 
‘‘(B) if there is still a shortage of sugar in the United 
States market, and marketing of domestic sugar has been 
maximized, the Secretary may increase the tariff-rate quota 
for raw cane sugar if the further increase will not threaten 
to result in the forfeiture of sugar pledged as collateral 
for a loan under section 156 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7272).’’. 
(k) PERIOD OF EFFECTIVENESS.—Part VII of subtitle B of title 
III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) 
(as amended by subsection (j)) is amended by adding at the end 
the following: 
‘‘SEC. 359l. PERIOD OF EFFECTIVENESS. 
‘‘(a) IN GENERAL.—This part shall be effective only for the 
2008 through 2012 crop years for sugar.
H. R. 6124—68 
‘‘(b) TRANSITION.—The Secretary shall administer flexible mar-
keting allotments for sugar for the 2007 crop year for sugar on 
the terms and conditions provided in this part as in effect on 
the day before the date of enactment of this section.’’. 
SEC. 1404. STORAGE FACILITY LOANS. 
Section 1402(c) of the Farm Security and Rural Investment 
Act of 2002 (7 U.S.C. 7971(c)) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the end; 
(2) by redesignating paragraph (2) as paragraph (3); 
(3) by inserting after paragraph (1) the following: 
‘‘(2) not include any penalty for prepayment; and’’; and 
(4) in paragraph (3) (as redesignated by paragraph (2)), 
by inserting ‘‘other’’ after ‘‘on such’’. 
SEC. 1405. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS. 
Subtitle E of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7281 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 167. COMMODITY CREDIT CORPORATION STORAGE PAYMENTS. 
‘‘(a) INITIAL CROP YEARS.—Notwithstanding any other provision 
of law, for each of the 2008 through 2011 crop years, the Commodity 
Credit Corporation shall establish rates for the storage of forfeited 
sugar in an amount that is not less than— 
‘‘(1) in the case of refined sugar, 15 cents per hundred-
weight of refined sugar per month; and 
‘‘(2) in the case of raw cane sugar, 10 cents per hundred-
weight of raw cane sugar per month. 
‘‘(b) SUBSEQUENT CROP YEARS.—For each of the 2012 and subse-
quent crop years, the Commodity Credit Corporation shall establish 
rates for the storage of forfeited sugar in the same manner as 
was used on the day before the date of enactment of this section.’’. 
Subtitle E—Dairy 
SEC. 1501. DAIRY PRODUCT PRICE SUPPORT PROGRAM. 
(a) DEFINITION OF NET REMOVALS.—In this section, the term 
‘‘net removals’’ means— 
(1) the sum of— 
(A) the quantity of a product described in subsection 
(b) purchased by the Commodity Credit Corporation under 
this section; and 
(B) the quantity of the product exported under section 
153 of the Food Security Act of 1985 (15 U.S.C. 713a– 
14); less 
(2) the quantity of the product sold for unrestricted use 
by the Commodity Credit Corporation. 
(b) SUPPORT ACTIVITIES.—During the period beginning on 
January 1, 2008, and ending December 31, 2012, the Secretary 
shall support the price of cheddar cheese, butter, and nonfat dry 
milk through the purchase of such products made from milk pro-
duced in the United States. 
(c) PURCHASE PRICE.—To carry out subsection (b) during the 
period specified in that subsection, the Secretary shall purchase— 
(1) cheddar cheese in blocks at not less than $1.13 per 
pound;
H. R. 6124—69 
(2) cheddar cheese in barrels at not less than $1.10 per 
pound; 
(3) butter at not less than $1.05 per pound; and 
(4) nonfat dry milk at not less than $0.80 per pound. 
(d) TEMPORARY PRICE ADJUSTMENT TO AVOID EXCESS INVEN-
TORIES.— 
(1) ADJUSTMENTS AUTHORIZED.—The Secretary may adjust 
the minimum purchase prices established under subsection (c) 
only as permitted under this subsection. 
(2) CHEESE INVENTORIES IN EXCESS OF 200,000,000 POUNDS.— 
If net removals for a period of 12 consecutive months exceed 
200,000,000 pounds of cheese, but do not exceed 400,000,000 
pounds, the Secretary may reduce the purchase prices under 
paragraphs (1) and (2) of subsection (c) during the immediately 
following month by not more than 10 cents per pound. 
(3) CHEESE INVENTORIES IN EXCESS OF 400,000,000 POUNDS.— 
If net removals for a period of 12 consecutive months exceed 
400,000,000 pounds of cheese, the Secretary may reduce the 
purchase prices under paragraphs (1) and (2) of subsection 
(c) during the immediately following month by not more than 
20 cents per pound. 
(4) BUTTER INVENTORIES IN EXCESS OF 450,000,000 POUNDS.— 
If net removals for a period of 12 consecutive months exceed 
450,000,000 pounds of butter, but do not exceed 650,000,000 
pounds, the Secretary may reduce the purchase price under 
subsection (c)(3) during the immediately following month by 
not more than 10 cents per pound. 
(5) BUTTER INVENTORIES IN EXCESS OF 650,000,000 POUNDS.— 
If net removals for a period of 12 consecutive months exceed 
650,000,000 pounds of butter, the Secretary may reduce the 
purchase price under subsection (c)(3) during the immediately 
following month by not more than 20 cents per pound. 
(6) NONFAT DRY MILK INVENTORIES IN EXCESS OF 600,000,000 
POUNDS.—If net removals for a period of 12 consecutive months 
exceed 600,000,000 pounds of nonfat dry milk, but do not exceed 
800,000,000 pounds, the Secretary may reduce the purchase 
price under subsection (c)(4) during the immediately following 
month by not more than 5 cents per pound. 
(7) NONFAT DRY MILK INVENTORIES IN EXCESS OF 800,000,000 
POUNDS.—If net removals for a period of 12 consecutive months 
exceed 800,000,000 pounds of nonfat dry milk, the Secretary 
may reduce the purchase price under subsection (c)(4) during 
the immediately following month by not more than 10 cents 
per pound. 
(e) UNIFORM PURCHASE PRICE.—The prices that the Secretary 
pays for cheese, butter, or nonfat dry milk, respectively, under 
subsection (b) shall be uniform for all regions of the United States. 
(f) SALES FROM INVENTORIES.—In the case of each commodity 
specified in subsection (c) that is available for unrestricted use 
in the inventory of the Commodity Credit Corporation, the Secretary 
may sell the commodity at the market prices prevailing for that 
commodity at the time of sale, except that the sale price may 
not be less than 110 percent of the minimum purchase price speci-
fied in subsection (c) for that commodity.
H. R. 6124—70 
SEC. 1502. DAIRY FORWARD PRICING PROGRAM. 
(a) PROGRAM REQUIRED.—The Secretary shall establish a pro-
gram under which milk producers and cooperative associations of 
producers are authorized to voluntarily enter into forward price 
contracts with milk handlers. 
(b) MINIMUM MILK PRICE REQUIREMENTS.—Payments made by 
milk handlers to milk producers and cooperative associations of 
producers, and prices received by milk producers and cooperative 
associations, in accordance with the terms of a forward price con-
tract authorized by subsection (a), shall be treated as satisfying— 
(1) all uniform and minimum milk price requirements of 
subparagraphs (B) and (F) of paragraph (5) of section 8c of 
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
with amendments by the Agricultural Marketing Agreement 
Act of 1937; and 
(2) the total payment requirement of subparagraph (C) 
of that paragraph. 
(c) MILK COVERED BY PROGRAM.— 
(1) COVERED MILK.—The program shall apply only with 
respect to the marketing of federally regulated milk that— 
(A) is not classified as Class I milk or otherwise 
intended for fluid use; and 
(B) is in the current of interstate or foreign commerce 
or directly burdens, obstructs, or affects interstate or for-
eign commerce in federally regulated milk. 
(2) RELATION TO CLASS I MILK.—To assist milk handlers 
in complying with paragraph (1)(A) without having to segregate 
or otherwise individually track the source and disposition of 
milk, a milk handler may allocate milk receipts from producers, 
cooperatives, and other sources that are not subject to a forward 
contract to satisfy the obligations of the handler with regard 
to Class I milk usage. 
(d) VOLUNTARY PROGRAM.— 
(1) IN GENERAL.—A milk handler may not require participa-
tion in a forward pricing contract as a condition of the handler 
receiving milk from a producer or cooperative association of 
producers. 
(2) 
PRICING.—A 
producer 
or 
cooperative 
association 
described in paragraph (1) may continue to have their milk 
priced in accordance with the minimum payment provisions 
of the Federal milk marketing order. 
(3) COMPLAINTS.— 
(A) IN GENERAL.—The Secretary shall investigate com-
plaints made by producers or cooperative associations of 
coercion by handlers to enter into forward contracts. 
(B) ACTION.—If the Secretary finds evidence of coer-
cion, the Secretary shall take appropriate action. 
(e) DURATION.— 
(1) NEW CONTRACTS.—No forward price contract may be 
entered into under the program established under this section 
after September 30, 2012. 
(2) APPLICATION.—No forward contract entered into under 
the program may extend beyond September 30, 2015.