HR 2419 PCS
If a New Entrant acquires an existing fac-
tory that has processed sugar beets from 
the 1998 or later crop years and has a 
production history, then, upon 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 por-
tion of allocation of the current allocation 
holder to reflect the historical contribution 
of the production of the acquired factory to 
the total allocation of the current alloca-
tion holder. In the absence of mutual 
agreement, the new entrant shall be ineli-
gible for a beet sugar allocation. 
‘‘(iii) APPEALS.—Any decision made 
under this subsection may be appealed to 
the Secretary pursuant to section 359i. 
‘‘(iv) DEFINITION.—In this subpara-
graph, the term ‘New Entrant’ means an 
individual, corporation, or other entity that 
does not have an allocation of the beet 
sugar allotment under this part, is not af-
filiated with any other individual, corpora-
tion, or entity that has an allocation of 
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beet sugar under this part (known as a 
‘third party’), and will process sugar beets 
produced by sugar beet growers under con-
tract with the New Entrant for the produc-
tion of sugar at the new or re-opened fac-
tory that is the basis for the New Entrant 
allocation. 
‘‘(v) AFFILIATION.—For purposes of 
this subparagraph, a New Entrant and a 
third party shall be deemed to be ‘affili-
ated’ if— 
‘‘(I) the third party has an own-
ership interest in the New Entrant; 
‘‘(II) the New Entrant and the 
third party have owners in common; 
‘‘(III) the third party has the 
ability to exercise control over the 
New Entrant by organizational rights, 
contractual 
rights, 
or 
any 
other 
means; 
‘‘(IV) the third party has a con-
tractual relationship with the New 
Entrant by which the New Entrant 
will make use of the facilities or assets 
of such third party; or 
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‘‘(V) 
any 
other 
similar 
cir-
cumstance exists by which the Sec-
retary determines that the New En-
trant and the third party are affili-
ated.’’. 
(e) REASSIGNMENT OF DEFICITS.—Section 359e(b) 
of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359ee(b)) is amended in both paragraphs (1)(D) and 
(2)(C) by inserting ‘‘of raw cane sugar’’ after ‘‘imports’’. 
(f) PROVISIONS APPLICABLE TO PRODUCERS.—Sec-
tion 359f(c) of the Agricultural Adjustment Act of 1938 
(7 U.S.C. 1359ff(c)) is amended— 
(1) in paragraph (2), by striking ‘‘quantity of 
sugarcane’’ and inserting ‘‘quantity of sugar pro-
duced from sugarcane’’; 
(2) in paragraph (5)(C), by inserting ‘‘for 
sugar’’ before ‘‘in excess of the farm’s proportionate 
share’’; 
(3) in paragraph (7), by striking ‘‘amount of 
sugarcane’’ and inserting ‘‘amount of sugar from 
sugarcane’’; and 
(4) by striking paragraph (8) and inserting the 
following new paragraph: 
‘‘(8) SEED
DEFINITION.—In this subsection, 
the term ‘seed’ includes only varieties of seed dedi-
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cated to the production of sugarcane from which is 
produced sugar for human consumption, and ex-
cludes seed of high-fiber cane varieties dedicated to 
other uses, as determined by the Secretary.’’. 
(g) SPECIAL RULES.—Section 359g of the Agricul-
tural Adjustment Act of 1938 (7 U.S.C. 1359gg) is 
amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) TRANSFER OF ACREAGE BASE HISTORY.— 
‘‘(1) TRANSFER
AUTHORIZED.—For the pur-
pose of establishing proportionate shares for sugar-
cane 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 base acre-
age established under section 359f(c) that has 
been or is converted to non-agricultural use on 
or after May 13, 2002, may be transferred to 
other land suitable for the production of sugar-
cane that can be delivered to a processor in a 
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proportionate share State in accordance with 
this paragraph. 
‘‘(B) NOTIFICATION.—Not later than 90 
days after the date of the enactment of the 
Farm, Nutrition, and Bioenergy Act of 2007, 
or the subsequent conversion of sugarcane base 
acreage to a non-agricultural use, the Sec-
retary, acting through the Farm Service Agen-
cy, shall notify the affected landowner (or land-
owners) of the transferability of the applicable 
sugarcane base acreage. 
‘‘(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 notifi-
cation under subparagraph (B) to transfer the 
base to one or more farms owned by the owner. 
‘‘(D) GROWER OF RECORD.—If the trans-
fer under subparagraph (C) cannot be accom-
plished within the time period prescribed in 
such subparagraph, then the grower of record 
with regard to the base acreage on the date on 
which the acreage was converted to non-agricul-
tural use shall be so notified, and shall be af-
forded 90 days from the date of the receipt of 
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such notification to transfer the base to one or 
more farms operated by the grower. 
‘‘(E) POOL DISTRIBUTION.—If the trans-
fers under subparagraphs (B) and (C) cannot 
be accomplished within the time periods pre-
scribed therein, then the county committee for 
the applicable parish shall place the acreage 
base in a pool for possible assignment to other 
farms. After providing reasonable notice to 
farm owners, operators, and growers of record 
in the parish, the county committee shall accept 
requests from owners, operators, and growers of 
record in the parish. The county committee 
shall assign the base to other farms in the par-
ish that are eligible and capable of accepting 
such base, based on a random drawing from 
among the requests received from owners, oper-
ators, and growers of record with eligible farms. 
‘‘(F) STATEWIDE
REALLOCATION.—Any 
base remaining unassigned after the processes 
in subparagraphs (A) through (E) shall be 
made available to the State committee for allo-
cation among the remaining county committees 
in the State representing parishes with farms 
eligible for assignment of the base. The remain-
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