160 
‘‘(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 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 sugar-
cane that can be delivered to a processor in a 
proportionate 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 trans-
ferability of the applicable sugarcane acreage 
base. 
‘‘(C) INITIAL
TRANSFER
PERIOD.—The 
owner of the base attributable to the acreage at 
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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 1 or more farms owned by the owner. 
‘‘(D) GROWER OF RECORD.—If a transfer 
under subparagraph (C) cannot be accom-
plished during the period specified in that sub-
paragraph, the grower of record with regard to 
the acreage base on the date on which the acre-
age 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 
subparagraphs (B) and (C) cannot be ac-
complished during the periods specified in 
those subparagraphs, the county committee 
of the Farm Service Agency for the appli-
cable county shall place the acreage base in 
a pool for possible assignment to other 
farms. 
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‘‘(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 com-
mittee 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 available to 
the State committee of the Farm Service 
Agency for allocation among the remaining 
county committees in the State rep-
resenting counties with farms eligible for 
assignment of the base, based on a random 
drawing. 
‘‘(ii) ALLOCATION.—Any county com-
mittee receiving acreage base under this 
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subparagraph shall allocate the acreage 
base to eligible farms using the process de-
scribed in subparagraph (E). 
‘‘(G) STATUS
OF
REASSIGNED
BASE.— 
After acreage base has been reassigned in ac-
cordance with this subparagraph, the acreage 
base shall— 
‘‘(i) remain on the farm; and 
‘‘(ii) be subject to the transfer provi-
sions of paragraph (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 proc-
essing company holding the applicable allo-
cation for such shares,’’; and 
(B) in paragraph (2), by striking ‘‘based 
on’’ and all that follows through the end of sub-
paragraph (B) and inserting ‘‘based on— 
‘‘(A) the number of acres of sugarcane 
base being transferred; and 
‘‘(B) the pro rata amount of allocation at 
the processing company holding the applicable 
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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 Ad-
justment 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 SHORT-
FALLS.—Section 359k of the Agricultural Adjustment Act 
of 1938 (7 U.S.C. 1359kk) is repealed. 
(j) ADMINISTRATION OF TARIFF RATE QUOTAS.— 
Part VII of subtitle B of title III of the Agricultural Ad-
justment Act of 1938 (7 U.S.C. 1359aa) (as amended by 
subsection (i)) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 359k. ADMINISTRATION OF TARIFF RATE QUOTAS. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2) and notwithstanding any other provision 
of law, at the beginning of the quota year, the Sec-
retary shall establish the tariff-rate quotas for raw 
cane sugar and refined sugars at the minimum level 
necessary to comply with obligations under inter-
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national 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 in-
crease 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 im-
ports; and 
‘‘(B) if there is still a shortage of sugar in 
the United States market, and marketing of do-
mestic sugar has been maximized, and domestic 
raw cane sugar refining capacity has been 
maximized, the Secretary may increase the tar-
iff-rate quota for refined sugars sufficient to ac-
commodate the supply increase, if the further 
increase will not threaten to result in the for-
feiture of sugar pledged as collateral for a loan 
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(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 EX-
CESS 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 EX-
CESS 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, 
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