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(i) the average seasonally adjusted an-
nual 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 cot-
ton during the preceding 6 marketing
years; or
(II) cumulative exports of upland
cotton plus outstanding export sales for
the marketing year in which the quota
is established.
(C) LIMITED GLOBAL IMPORT QUOTA.—The
term ‘‘limited global import quota’’ means a
quantity of imports that is not subject to the
over-quota tariff rate of a tariff-rate quota.
(2) PROGRAM.—The President shall carry out an
import quota program that provides that whenever
the Secretary determines and announces that the av-
erage price of the base quality of upland cotton, as de-
termined by the Secretary, in the designated spot
markets for a month exceeded 130 percent of the aver-
age 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
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a limited global import quota subject to the following
conditions:
(A) QUANTITY.—The quantity of the quota
shall be equal to 21 days of domestic mill con-
sumption of upland cotton at the seasonally ad-
justed average rate of the most recent 3 months
for which data are available or as estimated 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 con-
sumption calculated under subparagraph (A) or
the quantity required to increase the supply to
130 percent of the demand.
(C) PREFERENTIAL TARIFF TREATMENT.—
The quantity under a limited global import
quota shall be considered to be an in-quota quan-
tity 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);
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(iii) section 503(d) of the Trade Act of
1974 (19 U.S.C. 2463(d)); and
(iv) General Note 3(a)(iv) to the Har-
monized Tariff Schedule.
(D) QUOTA ENTRY PERIOD.—When a quota
is established under this subsection, cotton may
be entered under the quota during the 90-day pe-
riod beginning on the date the quota is estab-
lished by the Secretary.
(3) NO OVERLAP.—Notwithstanding paragraph
(2), a quota period may not be established that over-
laps an existing quota period or a special quota pe-
riod established under subsection (a).
(c) ECONOMIC ADJUSTMENT ASSISTANCE TO USERS
OF UPLAND COTTON.—
(1) IN GENERAL.—Subject to paragraph (2), the
Secretary shall, on a monthly basis, provide economic
adjustment assistance to domestic users of upland cot-
ton in the form of payments for all documented use
of that upland cotton during the previous monthly pe-
riod regardless of the origin of the upland cotton.
(2) VALUE OF ASSISTANCE.—
(A) BEGINNING
PERIOD.—During the pe-
riod beginning on August 1, 2008, and ending
on June 30, 2013, the value of the assistance
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provided under paragraph (1) shall be 4 cents
per pound.
(B) SUBSEQUENT PERIOD.—Effective begin-
ning on July 1, 2013, the value of the assistance
provided under paragraph (1) shall be 0 cents
per pound.
(3) ALLOWABLE PURPOSES.—Economic adjust-
ment assistance under this subsection shall be made
available only to domestic users of upland cotton that
certify that the assistance shall be used only to ac-
quire, construct, install, modernize, develop, convert,
or expand land, plant, buildings, equipment, facili-
ties, or machinery.
(4) REVIEW OR AUDIT.—The Secretary may con-
duct 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 Sec-
retary determines, 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—
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(A) liable to repay the assistance to the Sec-
retary, plus interest, as determined by the Sec-
retary; and
(B) ineligible to receive assistance under
this subsection for a period of 1 year following
the determination of the Secretary.
SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA
LONG STAPLE COTTON.
(a) COMPETITIVENESS PROGRAM.—Notwithstanding
any other provision of law, during the period beginning on
the date of the enactment of this Act through July 31, 2013,
the Secretary shall carry out a program—
(1) to maintain and expand the domestic use of
extra long staple cotton produced in the United
States;
(2) to increase exports of extra long staple cotton
produced in the United States; and
(3) to ensure that extra long staple cotton pro-
duced in the United States remains competitive in
world markets.
(b) PAYMENTS UNDER PROGRAM; TRIGGER.—Under
the program, the Secretary shall make payments available
under this section whenever—
(1) for a consecutive 4-week period, the world
market price for the lowest priced competing growth
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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 cot-
ton; and
(2) the lowest priced competing growth of extra
long staple cotton (adjusted to United States quality
and location and for other factors affecting the com-
petitiveness of such cotton), as determined by the Sec-
retary, 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 ex-
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port by exporters made in the week following such a con-
secutive 4-week period.
SEC. 1209. AVAILABILITY OF RECOURSE LOANS FOR HIGH
MOISTURE FEED GRAINS AND SEED COTTON.
(a) HIGH MOISTURE FEED GRAINS.—
(1) DEFINITION OF HIGH MOISTURE STATE.—In
this subsection, the term ‘‘high moisture state’’ means
corn or grain sorghum having a moisture 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 sor-
ghum, the Secretary shall make available recourse
loans, as determined by the Secretary, to producers on
a farm that—
(A) normally harvest all or a portion of
their crop of corn or grain sorghum in a high
moisture state;
(B) present—
(i) certified scale tickets from an in-
spected, certified commercial scale, includ-
ing a licensed warehouse, feedlot, feed mill,
distillery, or other similar entity approved
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by the Secretary, pursuant to regulations
issued by the Secretary; or
(ii) field or other physical measure-
ments of the standing or stored crop in re-
gions of the United States, as determined by
the Secretary, that do not have certified
commercial scales from which certified scale
tickets may be obtained within 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 sub-
section was in fact harvested on the farm and de-
livered to, a feedlot, feed mill, or commercial or
on-farm high-moisture storage facility, or to a
facility maintained by the users of corn and
grain sorghum in a high moisture state; and
(D) comply with deadlines established by
the Secretary for harvesting the corn or grain
sorghum and submit applications for loans
under this subsection within deadlines estab-
lished by the Secretary.
(3) ELIGIBILITY OF ACQUIRED FEED GRAINS.—
A loan under this subsection shall be made on a
quantity of corn or grain sorghum of the same crop
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acquired by the producer equivalent to a quantity de-
termined by multiplying—
(A) the acreage of the corn or grain sor-
ghum 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 part I or the actual yield on a field, as
determined by the Secretary, that is similar to
the field from which the corn or grain sorghum
was obtained.
(b) RECOURSE LOANS AVAILABLE FOR SEED COT-
TON.—For each of the 2008 through 2012 crops of upland
cotton and extra long staple cotton, the Secretary shall make
available recourse seed cotton loans, as determined by the
Secretary, on any production.
(c) REPAYMENT RATES.—Repayment of a recourse
loan made under this section shall be at the loan rate estab-
lished for the commodity by the Secretary, plus interest (de-
termined in accordance with section 163 of the Federal Ag-
riculture Improvement and Reform Act of 1996 (7 U.S.C.
7283)).
SEC. 1210. ADJUSTMENTS OF LOANS.
(a) ADJUSTMENT AUTHORITY.—Subject to subsections
(e) and (f), the Secretary may make appropriate adjust-
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ments 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 subsection (a) shall, to the maximum extent prac-
ticable, be made in such a manner that the average loan
level for the commodity will, on the basis of the anticipated
incidence of the factors, be equal to the level of support de-
termined 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 national average loan
rate, if those loan rates do not result in an increase
in outlays.
(2) PROHIBITION.—Adjustments under this sub-
section 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 ap-
propriate adjustments in the loan rate for cotton for
differences in quality factors.
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(2) REVISIONS TO QUALITY ADJUSTMENTS FOR
UPLAND COTTON.—
(A) IN GENERAL.—Not later than 180 days
after the enactment of this Act and after con-
sultation with the private sector in accordance
with paragraph (3), the Secretary shall imple-
ment revisions in the administration of the mar-
keting assistance loan program for upland cotton
to more accurately and efficiently reflect market
values for upland cotton.
(B) 
MANDATORY
REVISIONS.—Revisions
under subparagraph (A) shall include—
(i) the elimination of warehouse loca-
tion differentials;
(ii) the establishment of differentials
for the various quality factors and staple
lengths of cotton based on a 3-year, weight-
ed moving average of the weighted des-
ignated 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
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(iv) a mechanism to ensure that no
premium or discount is established that ex-
ceeds 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 addition to spot market price data,
that would enhance the accuracy of the
price information used in determining qual-
ity adjustments under this subsection;
(ii) adjustments in the premiums or
discounts associated 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 calcula-
tions of the premiums or discounts; and
(iii) such other adjustments as the Sec-
retary determines appropriate, after con-
sultations conducted in accordance with
paragraph (3).
(3) CONSULTATION WITH PRIVATE SECTOR.—
(A) PRIOR TO REVISION.—Prior to imple-
menting any revisions to the administration of
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the marketing assistance loan program for up-
land cotton, the Secretary shall consult with a
private sector committee that—
(i) is in existence as of the date of en-
actment of this Act;
(ii) has a membership that includes
representatives of the production, ginning,
warehousing, cooperative, and merchan-
dising segments of the United States cotton
industry; and
(iii) has developed recommendations
concerning the revisions.
(B) REVIEW OF ADJUSTMENTS.—The Sec-
retary shall consult with the committee described
in subparagraph (A) when conducting a review
of adjustments in the operation of the loan pro-
gram for upland cotton in accordance with para-
graph (4).
(C) INAPPLICABILITY
OF
FEDERAL
ADVI-
SORY
COMMITTEE
ACT.—The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply
to consultations under this subsection.
(4) REVIEW OF ADJUSTMENTS.—The Secretary
may review the operation of the upland cotton quality
adjustments implemented pursuant to this subsection
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and may make further revisions to the administration
of the loan program for upland cotton, by—
(A) revoking or revising any actions taken
under paragraph (2)(B); or
(B) revoking or revising any actions taken
or authorized to be taken under paragraph
(2)(C).
(5) ADJUSTMENTS IN EFFECT PRIOR TO REVI-
SION.—The quality differences (premiums and dis-
counts for quality factors) applicable to the loan pro-
gram for upland cotton (prior to any revisions in ac-
cordance with this subsection) shall be established by
the Secretary by giving equal weight to—
(A) loan differences for the preceding crop;
and
(B) market differences for the crop in the
designated United States spot markets.
(e) CORN AND GRAIN SORGHUM.—In the case of corn
and grain sorghum, the Secretary—
(1) shall administer the applicable loan, mar-
keting loan, and related programs using a single loan
rate for corn and grain sorghum that is identical in
each individual county;
(2) shall provide that any adjustment in the
corn and grain sorghum loan rate for location shall
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be determined and applied on the basis of the com-
bined corn and grain sorghum data set in a manner
that any transportation adjustment shall be the same
for corn and grain sorghum in each individual coun-
ty; and
(3) may provide for adjustments for grade, type,
and quality, as appropriate, for the corn or grain sor-
ghum involved in each specific transaction.
(f) 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).
PART III—PEANUTS
SEC. 1301. DEFINITIONS.
In this part:
(1) BASE ACRES FOR PEANUTS.—The term ‘‘base
acres for peanuts’’ means the number of acres as-
signed 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 the day before the date
of enactment of this Act, subject to any adjustment
under section 1302 of this Act.
(2) COUNTER-CYCLICAL
PAYMENT.—The term
‘‘counter-cyclical payment’’ means a payment made
to producers on a farm under section 1304.
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(3) DIRECT PAYMENT.—The term ‘‘direct pay-
ment’’ 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 85 percent of the base acres for peanuts.
(6) PAYMENT
YIELD.—The term ‘‘payment
yield’’ means the yield established for direct payments
and 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 the day before the
date of enactment of this Act, 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 from the farm, or
would have shared had the crop been produced.
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(B) HYBRID SEED.—In determining wheth-
er a grower of hybrid seed is a producer, the Sec-
retary shall—
(i) not take into consideration the ex-
istence 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
part.
(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) TREATMENT
OF
CONSERVATION
RESERVE
CONTRACT ACREAGE.—The Secretary shall provide for
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an adjustment, as appropriate, in the base acres for
peanuts for a farm whenever either 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.
(B) Cropland is released from coverage
under a conservation reserve contract by the Sec-
retary.
(C) The producer has eligible pulse crop or
camelina acreage.
(D) The producer has eligible oilseed acre-
age as the result of the Secretary designating ad-
ditional oilseeds.
(2) SPECIAL CONSERVATION RESERVE ACREAGE
PAYMENT RULES.—For the crop year in which a base
acres for peanuts adjustment under 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 con-
servation reserve contract, but not both.
(b) PREVENTION OF EXCESS BASE ACRES FOR PEA-
NUTS.—
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(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 farm, the Secretary shall re-
duce 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 ex-
ceed the actual cropland acreage of the farm.
(2) OTHER
ACREAGE.—For purposes of para-
graph (1), the Secretary shall include the following:
(A) Any base acres for the farm for a cov-
ered commodity.
(B) Any acreage on the farm enrolled in the
conservation 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 pro-
ducing an agricultural commodity on the acre-
age.
(D) Any eligible pulse crop or camelina
acreage, which shall be determined in the same
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manner as eligible oilseed acreage under section
1101(a)(2) of the Farm Security and Rural In-
vestment 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 oil-
seed 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
ACRE-
AGE.—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
REQUIRE-
MENTS.—The Secretary shall take into account sec-
tion 1101(b) when applying the requirements of this
subsection.
(c) REDUCTION IN BASE ACRES.—
(1) REDUCTION AT OPTION OF OWNER.—
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(A) IN
GENERAL.—The owner of a farm
may reduce, at any time, the base acres for pea-
nuts 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 sus-
pend all direct, counter-cyclical, and average
crop revenue payments on base acres for peanuts
for land that is no longer a farming operation
or used in conjunction with a farming operation,
as determined by the Secretary.
(B) REDUCTION.—The Secretary shall re-
duce base acres for peanuts in a manner pre-
scribed by the Secretary, for land that—
(i) has been developed for commercial
or industrial use unless the producer dem-
onstrates that the land remains devoted ex-
clusively to agricultural production; or
(ii) has been subdivided and developed
for multiple residential units or other non-
farming uses, unless the producer dem-
onstrates that the land remains devoted ex-
clusively to agricultural production.
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(3) REVIEW AND REPORT.—Each year, to ensure,
to the maximum extent practicable, that payments
are received only by producers, the Secretary shall—
(A) track each reconstitution of land that is
reported by a producer that is covered by para-
graph (2);
(B) include in any end-of-the-year review
for purposes of payment limitations or other
compliance inspections or other actions taken by
the Secretary, a review to ensure compliance
with paragraph (2); and
(C) submit to Congress a report that de-
scribes the results of the actions taken under sub-
paragraphs (A) and (B).
SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEA-
NUTS.
(a) PAYMENT REQUIRED.—Except as provided in sec-
tion 1401, for each of the 2008 through 2012 crop years
for peanuts, the Secretary shall make direct payments to
the producers on a farm to which a payment yield and base
acres for peanuts are established.
(b) PAYMENT RATE.—The payment rate used to make
direct payments with respect to peanuts for a crop year
shall be equal to $36 per ton.
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(c) PAYMENT AMOUNT.—The amount of the direct pay-
ment to be paid to the producers on a farm for the 2008
through 2012 crops of peanuts 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.—In the case of each of the 2008
through 2012 crop years, the Secretary shall make di-
rect payments under this section not earlier than Oc-
tober 1 of the calendar year in which the crop is har-
vested.
(2) ADVANCE PAYMENTS.—
(A) OPTION.—At the option of the producers
on a farm, the Secretary shall pay in advance
up to 22 percent of the direct payment for pea-
nuts for any of the 2008 through 2011 crop years
to the producers on a farm.
(B) MONTH.—
(i) SELECTION.—Subject to clauses (ii)
and (iii), the producers on a farm shall se-
lect the month during which the advance
payment for a crop year will be made.
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(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 Sec-
retary the applicable amount of the advance payment,
as determined by the Secretary.
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SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAY-
MENTS FOR PEANUTS.
(a) PAYMENT REQUIRED.—Except as provided in sec-
tion 1401, for each of the 2008 through 2012 crop years
for peanuts, the Secretary shall make counter-cyclical pay-
ments to producers on farms for which payment yields and
base acres for peanuts are established if the Secretary deter-
mines that the effective price for peanuts is less than the
target price for peanuts.
(b) EFFECTIVE PRICE.—For purposes of subsection
(a), the effective 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 deter-
mined by the Secretary.
(B) The national average loan rate for a
marketing assistance loan for peanuts in effect
for the applicable period under this part.
(2) The payment rate in effect for peanuts under
section 1303 for the purpose of making direct pay-
ments.
(c) TARGET PRICE.—For purposes of subsection (a),
the target price for peanuts shall be equal to $495 per ton.
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(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; and
(2) the effective price determined under sub-
section (b).
(e) PAYMENT AMOUNT.—If counter-cyclical payments
are required to be paid for any of the 2008 through 2012
crops of peanuts, the amount of the counter-cyclical pay-
ment 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.—If the Secretary deter-
mines under subsection (a) that counter-cyclical pay-
ments are required to be made under this section for
a crop year, the Secretary shall make the counter-cy-
clical payments for the crop year beginning on Octo-
ber 1 or as soon as practicable after the end of the
marketing year.
(2) AVAILABILITY OF PARTIAL PAYMENTS.—
(A) IN GENERAL.—If, before the end of the
12-month marketing year, the Secretary esti-
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mates that counter-cyclical payments will be re-
quired under this section for a crop year, the
Secretary shall give producers on a farm the op-
tion 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 participants to make an election to
receive partial payments under subpara-
graph (A) at any time but not later than 30
days prior to the end of the marketing year
for the crop.
(ii) DATE
OF
ISSUANCE.—The Sec-
retary shall issue the partial payment after
the date of an announcement by the Sec-
retary 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 available 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 mar-
keting year for that crop; and
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(B) the final partial payment shall be made
on October 1 of the fiscal year starting in the
same calendar year as the end of the 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 par-
tial payment under paragraph (3) to the pro-
ducers 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
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the actual counter-cyclical payment to be made for
that crop year.
SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDI-
TION ON PROVISION OF DIRECT PAYMENTS
AND COUNTER-CYCLICAL PAYMENTS.
(a) COMPLIANCE WITH CERTAIN REQUIREMENTS.—
(1) REQUIREMENTS.—Before the producers on a
farm may receive direct payments or counter-cyclical
payments under this part 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
requirements 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 pro-
tection 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 quan-
tity equal to the attributable base acres for pea-
nuts and any base acres for the farm under part
I, for an agricultural or conserving use, and not
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for a nonagricultural commercial, industrial, or
residential use (including land subdivided and
developed into residential units or other non-
farming uses, or that is otherwise no longer in-
tended to be used in conjunction with a farming
operation), 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 agricultural 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 compliance with the requirements of para-
graph (1).
(3) MODIFICATION.—At the request of the trans-
feree or owner, the Secretary may modify the require-
ments of this subsection if the modifications are con-
sistent with the objectives of this subsection, as deter-
mined 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
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interest of the producers on a farm in the base
acres for peanuts for which direct payments or
counter-cyclical payments are made shall result
in the termination of the payments with respect
to those 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 di-
rect payment or counter-cyclical payment dies, be-
comes 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.—
(1) IN GENERAL.—As a condition on the receipt
of any benefits under this part, the Secretary shall re-
quire producers 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 ben-
efits under this part shall be assessed against the pro-
ducers on a farm for an inaccurate acreage report un-
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less the producers on the farm knowingly and will-
fully falsified the acreage report.
(d) TENANTS AND SHARECROPPERS.—In carrying out
this part, the Secretary shall provide adequate safeguards
to protect the interests of tenants and sharecroppers.
(e) SHARING OF PAYMENTS.—The Secretary shall pro-
vide for the sharing of direct payments and counter-cyclical
payments among the producers on a farm on a fair and
equitable basis.
SEC. 1306. PLANTING FLEXIBILITY.
(a) PERMITTED CROPS.—Subject to subsection (b),
any commodity or crop may be planted on the base acres
for peanuts on a farm.
(b) LIMITATIONS
REGARDING
CERTAIN
COMMOD-
ITIES.—
(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 com-
modity specified in paragraph (3) that is produced
on a tree or other perennial plant shall be prohibited
on base acres for peanuts.
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(3) COVERED
AGRICULTURAL
COMMODITIES.—
Paragraphs (1) and (2) apply to the following agri-
cultural commodities:
(A) Fruits.
(B) Vegetables (other than mung beans and
pulse crops).
(C) Wild rice.
(c) EXCEPTIONS.—Paragraphs (1) and (2) of sub-
section (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 com-
modities 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 speci-
fied in subsection (b)(3) on the base acres for peanuts,
except that direct payments and counter-cyclical pay-
ments shall be reduced by an acre for each acre plant-
ed to such an agricultural commodity; or
(3) by the producers on a farm that the Sec-
retary determines has an established planting history
of a specific agricultural commodity specified in sub-
section (b)(3), except that—
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(A) the quantity planted may not exceed the
average annual planting history of such agricul-
tural 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 Sec-
retary; and
(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 DE-
FICIENCY PAYMENTS FOR PEANUTS.
(a) NONRECOURSE LOANS AVAILABLE.—
(1) AVAILABILITY.—Except as provided in sec-
tion 1401, for each of the 2008 through 2012 crops of
peanuts, the Secretary shall make available to pro-
ducers 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
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under this subsection for any quantity of peanuts
produced on the farm.
(4) TREATMENT OF CERTAIN COMMINGLED COM-
MODITIES.—In carrying out this subsection, the Sec-
retary shall make loans to producers on a farm that
would be eligible to obtain a marketing assistance
loan, but for the fact the peanuts owned by the pro-
ducers on the farm are commingled with other pea-
nuts in facilities unlicensed for the storage of agricul-
tural commodities by the Secretary or a State licens-
ing authority, if the producers obtaining the loan
agree to immediately redeem the loan collateral in ac-
cordance with section 166 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C.
7286).
(5) OPTIONS
FOR
OBTAINING
LOAN.—A mar-
keting assistance loan under this subsection, and loan
deficiency payments under subsection (e), may be ob-
tained at the option of the producers on a farm
through—
(A) a designated marketing association or
marketing cooperative of producers that is ap-
proved by the Secretary; or
(B) the Farm Service Agency.
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(6) STORAGE OF LOAN PEANUTS.—As a condi-
tion on the Secretary’s approval of an individual or
entity to provide storage for peanuts for which a mar-
keting assistance loan is made under this section, the
individual or entity shall agree—
(A) to provide such storage on a non-
discriminatory basis; and
(B) to comply with such additional require-
ments as the Secretary considers appropriate to
accomplish the purposes of this section and pro-
mote fairness in the administration of the bene-
fits of this section.
(7) STORAGE, 
HANDLING, 
AND
ASSOCIATED
COSTS.—
(A) IN GENERAL.—Beginning with the 2007
crop of peanuts, to ensure proper storage of pea-
nuts for which a loan is made under this section
or section 1307 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7957), the Sec-
retary shall use the funds of the Commodity
Credit Corporation to pay handling and other
associated costs (other than storage costs) in-
curred at the time at which the peanuts are
placed under loan, as determined by the Sec-
retary.
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(B) REDEMPTION AND FORFEITURE.—The
Secretary shall—
(i) require the repayment of handling
and other associated costs paid under sub-
paragraph (A) for all peanuts pledged as
collateral for a loan that is redeemed under
this section or section 1307 of the Farm Se-
curity and Rural Investment Act of 2002 (7
U.S.C. 7957); and
(ii) pay storage, handling, and other
associated costs for all peanuts pledged as
collateral that are forfeited under this sec-
tion or section 1307 of that Act.
(8) MARKETING.—A marketing association or co-
operative may market peanuts for which a loan is
made under this section in any manner that conforms
to consumer needs, including the separation of pea-
nuts by type and quality.
(b) LOAN RATE.—The loan rate for a marketing assist-
ance 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
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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.—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—
(1) the loan rate established for peanuts under
subsection (b), plus interest (determined in accord-
ance with section 163 of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 7283));
or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of
peanuts by the Federal Government;
(C) minimize the cost incurred by the Fed-
eral Government in storing peanuts; and
(D) allow peanuts produced in the United
States to be marketed freely and competitively,
both domestically and internationally.
(e) LOAN DEFICIENCY PAYMENTS.—