SUGAR.

SEC. 111. SUGAR. (a) Sugar Price Support and Marketing Assessments.— Section 206 (7 U.S.C. 1446g) is amended— (1) in subsection (e), by striking “announce the loan rate” and inserting “announce the basic loan rates for beet sugar and cane sugar”; (2) in subsection (f), by striking “Loans” and inserting “Except as provided in subsection (g), loans”; (3) by striking subsection (g) and inserting the following new subsection: “(g) Supplementary Nonrecourse Loans.— The Secretary shall make available to eligible processors price support loans with respect to sugar processed from sugar beets and sugarcane harvested in the last 3 months of a fiscal year. Such loans shall mature at the end of the fiscal year. The processor may repledge the sugar as collateral for a price support loan in the subsequent fiscal year, except that the second loan shall— 105 STAT. 1830 “(1) be made at the loan rate in effect at the time the second loan is made; and “(2) mature in 9 months less the quantity of time that the first loan was in effect.”; and (4) in subsection (i)— (A) by striking paragraphs (1), (2), and (3) and inserting the following new paragraphs: “(1) Sugarcane.— Effective only for marketings of raw cane sugar during the 1992 through 1996 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to .18 cents per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing). “(2) Sugar Beets.— Effective only for marketings of beet sugar during the 1992 through 1996 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to .193 cents per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed. “(3) Collection.— “(A) Timing.— Marketing assessments required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation within 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of that year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed. “(B) Manner.— Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.”; and (B) in paragraph (4), by striking “collect or remit the reduction” and inserting “remit the assessment”. (b) Security Interests.— Subsection (b) of section 405 (7 U.S.C. 1425) is amended to read as follows: “(b) Sugarcane and Sugar Beets.— The security interests obtained by the Commodity Credit Corporation as a result of the execution of security agreements by the processors of sugarcane and sugar beets shall be superior to all statutory and common law liens on raw cane sugar and refined beet sugar in favor of the producers of sugarcane and sugar beets and all prior recorded and unrecorded liens on the crops of sugarcane and sugar beets from which the sugar was derived. The preceding sentence shall not affect the application of section 401(e)(2).”. (c) Sugar Information Reporting.— Section 359a of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is amended— (1) by striking subsection (a) and inserting the following new subsection: “(a) Duty of Processors, Refiners and Manufacturers to Report.— 105 STAT. 1831 “(1) Processors and refiners.— All sugarcane processors, cane sugar refiners, and sugar beet processors 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, distribution, and stock levels of sugar. “(2) Manufacturers of crystalline fructose.— All manufacturers of crystalline fructose from corn (hereafter in this part referred to as ‘crystalline fructose’) shall furnish the Secretary, on a monthly basis, such information as the Secretary may require with respect to the manufacturer’s distribution of crystalline fructose.”; (2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; (3) by inserting after subsection (a) the following new subsection: “(b) Duty of Producers to Report.— The Secretary may require a producer of sugarcane or sugar beets to report, in the manner prescribed by the Secretary, the producer’s sugarcane or sugar beet yields and acres planted to sugarcane or sugar beets, respectively.”; and (4) in subsection (d) (as redesignated by paragraph (2))— (A) by striking “data on imports,” and inserting “data on production, imports,”; and (B) by inserting “composite data on distributions of after “sugar and”. (d) Marketing Allotments for Sugar and Crystalline Fructose.— Section 359b of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359bb) is amended— (1) by striking subsection (a) and inserting the following new subsection: “(a) Sugar Estimates.— “(1) In general.— Before the beginning of each of the fiscal years 1992 through 1996, the Secretary shall estimate— “(A) the quantity of sugar that will be consumed in the United States during the fiscal year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in sugar containing products) and the quantity of sugar that would provide for reasonable carryover stocks; “(B) the quantity of sugar that will be available from carry-in stocks or from domestically-produced sugarcane and sugar beets for consumption in the United States during the year; and “(C) the quantity of sugar that will be imported for consumption in the United States during the year (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in a refined form or in sugar containing products), based on the difference between— “(i) the sum of the quantity of estimated consumption and reasonable carryover stocks; and “(ii) the quantity of sugar estimated to be available from domestically-produced sugarcane and sugar beets and from carry-in stocks. “(2) Quarterly reestimates.— The Secretary shall make quarterly reestimates of sugar consumption, stocks, production,105 STAT. 1832 and imports for a fiscal year no later than the beginning of each of the second through fourth quarters of the fiscal year.”; (2) by striking subsection (b) and inserting the following new subsection: “(b) Sugar Allotments.— “(1) In general.— For any fiscal year in which the Secretary estimates, under subsection (a)(1)(C), that imports of sugar for consumption in the United States (other than sugar imported for the production of polyhydric alcohol or to be refined and reexported in refined form or in sugar containing products) will be less than 1,250,000 short tons, raw value, the Secretary shall establish for that year appropriate allotments under section 359c for the marketing by processors of sugar processed from domestically-produced sugarcane and sugar beets, at a level that the Secretary estimates will result in imports of sugar of not less than 1,250,000 short tons, raw value, for that year. “(2) Products.— The Secretary may include sugar products, whose majority content is sucrose or crystalline fructose for human consumption, derived from sugarcane, sugar beets, molasses or sugar in the allotments under paragraph (1) if the Secretary determines it to be appropriate for purposes of this part.”; and (3) in subsection (d)(4), by inserting after “the United States” the following: “(including, with respect to any integrated processor and refiner, the movement of raw cane sugar into the refining process)”. (e) Establishment of Marketing Allotments.— Section 359c of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended— (1) in subsection (b)(1)— (A) by striking “from the estimated sugar consumption” and inserting “from the sum of the estimated sugar consumption and reasonable carryover stocks (at the end of the fiscal year)”; and (B) in subparagraph (A), by striking “(representing minimum imports of sugar for consumption in the United States during the fiscal year)”; (2) in subsection (b)(2), by striking “prevent the accumulation of sugar acquired by” and inserting “avoid the forfeiture of sugar to”; (3) in subsection (f)— (A) in the subsection heading, by striking “SUGARCANE ALLOTMENT” and inserting “CANE SUGAR ALLOTMENTS”; and (B) by striking “allotted among the 5 States in the United States in which sugarcane is produced” and inserting “allotted, among the 5 States in the United States in which sugarcane is produced,”; (4) in subsection (g)— (A) by striking paragraph (1) and inserting the following new paragraph: “(1) In general.— The Secretary shall, based on reestimates under section 359b(a)(2)— “(A) adjust upward or downward marketing allotments established under subsections (a) through (f) in a fair and equitable manner; 105 STAT. 1833 “(B) establish marketing allotments for the fiscal year or any portion of such fiscal year; or “(C) suspend the allotments, as the Secretary determines appropriate, to reflect changes in estimated sugar consumption, stocks, production, or imports.”. (B) by striking paragraph (3) and inserting the following new paragraph: “(3) Reductions.— Whenever a marketing allotment for a fiscal year is required to be reduced during the fiscal year under this subsection, if the quantity of sugar marketed, including sugar pledged as collateral for a price support loan under section 206 of the Agricultural Act of 1949 (7 U.S.C. 1446g), for the fiscal year at the time of the reduction by any individual processor covered by the allotment exceeds the processor’s reduced allocation, the allocation of an allotment, if any, next established for the processor shall be reduced by the quantity of the excess sugar marketed.”; and (5) by striking subsection (h) and inserting the following new subsection: “(h) Filling Cane Sugar and Beet Sugar Allotments.— Each marketing allotment for cane sugar established under this section may only be filled with sugar processed from domestically grown sugarcane, and each marketing allotment for beet sugar established under this section may only be filled with sugar processed from domestically grown sugar beets.”. (f) Allocation of Marketing Allotments.— Section 359d of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359dd) is amended— (1) in subsection (a)(2) by striking “after such hearing” both places it appears and inserting “after a hearing, if requested by interested parties,”; and (2) by striking subsection (b) and inserting the following new subsection: “(b) Filling Cane Sugar Allotments.— Except as otherwise provided in section 359e, a State cane sugar allotment established under section 359c(f) for a fiscal year may be filled only with sugar processed from sugarcane grown in the State covered by the allotment.”. (g) Reassignments of Deficits.— Section 359e of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ee) is amended to read as follows: “SEC. 359e. REASSIGNMENT OF DEFICITS. “(a) Estimates of Deficits.— At any time allotments are in effect under this part, the Secretary, from time to time, shall determine whether (in view of then-current inventories of sugar, the estimated production of sugar and expected marketings, and other pertinent factors) any processor of sugarcane will be unable to market the sugar covered by the portion of the State cane sugar allotment allocated to the processor and whether any processor of sugar beets will be unable to market sugar covered by the portion of the beet sugar allotment allocated to the processor. “(b) Reassignment of Deficits.— “(1) Cane sugar.— If the Secretary determines that any sugarcane processor who has been allocated a share of a State cane sugar allotment will be unable to market the processor’s allocation of the State’s allotment for the fiscal year— 105 STAT. 1834 “(A) the Secretary first shall reassign the estimated quantity of the deficit to the allocations for other processors within that State, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors; “(B) if after the reassignments the deficit cannot be completely eliminated, the Secretary shall reassign the estimated quantity of the deficit proportionately to the allotments for other cane sugar States, depending on the capacity of each other State to fill the portion of the deficit to be assigned to it, with the reassigned quantity to each State to be allocated among processors in that State in proportion to the allocations of the processors; and “(C) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports. “(2) Beet sugar.— If the Secretary determines that a sugar beet processor who has been allocated a share of the beet sugar allotment will be unable to market that allocation— “(A) the Secretary first shall reassign the estimated quantity of the deficit to the allotments for other sugar beet processors, depending on the capacity of each other processor to fill the portion of the deficit to be assigned to it and taking into account the interests of producers served by the processors; and “(B) if after the reassignments, the deficit cannot be completely eliminated, the Secretary shall reassign the remainder to imports. “(3) Corresponding increase.— The allocation of each processor receiving a reassigned quantity of an allotment under this subsection for a fiscal year shall be increased to reflect the reassignment.”. (h) Provisions Applicable to Producers.— Section 359f(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ff(b)) is amended— (1) in paragraph (1)(A), by striking “250 producers in such State” and inserting “250 sugarcane producers in the State (other than Puerto Rico)”; (2) in paragraph (2), by striking “establish proportionate shares for the crop of sugarcane that is harvested during” and inserting “establish a proportionate share for each sugarcane-producing farm that limits the acreage of sugarcane that may be harvested on the farm for sugar or seed during”; and (3) by striking paragraphs (3), (4), and (5) and inserting the following new paragraphs: “(3) Method of determining.— For purposes of determining proportionate shares for any crop of sugarcane: “(A) The Secretary shall establish the State’s per-acre yield goal for a crop of sugarcane at a level (not less than the average per-acre yield in the State for the preceding 5 years, as determined by the Secretary) that will ensure an adequate net return per pound to producers in the State, taking into consideration any available production research data that the Secretary considers relevant. 105 STAT. 1835 “(B) The Secretary shall adjust the per-acre yield goal by the average recovery rate of sugar produced from sugarcane by processors in the State. “(C) The Secretary shall convert the State allotment for the fiscal year involved into a State acreage allotment for the crop by dividing the State allotment by the per-acre yield goal for the State, as established under subparagraph (A) and as further adjusted under subparagraph (B). “(D) The Secretary shall establish a uniform reduction percentage for the crop by dividing the State acreage allotment, as determined for the crop under subparagraph (C), by the sum of all adjusted acreage bases in the State, as determined by the Secretary. “(E) The uniform reduction percentage for the crop, as determined under subparagraph (D), shall be applied to the acreage base for each sugarcane-producing farm in the State to determine the farm’s proportionate share of sugarcane acreage that may be harvested for sugar or seed. “(4) Acreage base.— For purposes of this subsection, the acreage base for each sugarcane-producing farm shall be determined by the Secretary, as follows: “(A) The acreage base for any farm shall be the number of acres that is equal to the average of the acreage planted and considered planted for harvest for sugar or seed on the farm in each of the 5 crop years preceding the fiscal year the proportionate share will be in effect. “(B) Acreage planted to sugarcane that producers on a farm were unable to harvest to sugarcane for sugar or seed because of drought, flood, other natural disaster, or other condition beyond the control of the producers may be considered as harvested for the production of sugar or seed for purposes of this paragraph. “(5) Violation.— “(A) In general.— Whenever proportionate shares are in effect in a State for a crop of sugarcane, producers on a farm shall not knowingly harvest, or allow to be harvested, for sugar or seed an acreage of sugarcane in excess of the farm’s proportionate share for the fiscal year, or otherwise violate proportionate share regulations issued by the Secretary under section 359h(a). “(B) Civil penalty.— Any producer who violates subparagraph (A) shall be liable to the Commodity Credit Corporation 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 the quantity of sugar produced from that quantity of sugarcane involved in the violation. The quantity of sugarcane involved shall be determined based on the per-acre yield goal established under paragraph (3).”. (i) Special rules.— Section 359g of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359gg) is amended— (1) by striking subsections (a) and (b) and inserting the following new subsections: “(a) Transfer of Acreage Base History.— For the purpose of establishing proportionate shares for sugarcane farms under section 359f, 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. 105 STAT. 1836 “(b) Preservation of Acreage Base History.— If for reasons beyond the control of a producer on a farm, the producer is unable to harvest an acreage of sugarcane for sugar or seed with respect to all or a portion of the proportionate share established for the farm under section 359f, the Secretary, on the application of the producer and with the written consent of all owners of the farm, may preserve for a period of not more than 8 consecutive years the acreage base history of the farm to the extent of the proportionate share involved. The Secretary may permit the proportionate share to be redistributed to other farms, but no acreage base history for purposes of establishing acreage bases shall accrue to the other farms by virtue of the redistribution of the proportionate share.”; and (2) in subsection (c)— (A) by striking “hearing and”; and (B) by inserting “required to be” after “proportionate share was”. (j) Regulations.— Subsection (a) of section 359h of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359hh(a)) is amended to read as follows: “(a) Regulations.— The Secretary or the Commodity Credit Corporation, as appropriate, shall issue such regulations as may be necessary to carry out the authority vested in the Secretary in administering this part.”; and (k) Appeals.— Paragraph (2) of section 359i(b) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359ii(b)(2)) is amended to read as follows: “(2) Hearing.— The Secretary shall provide each appellant an opportunity for a hearing before an administrative law judge in accordance with sections 554 and 556 of title 5, United States Code. The expenses for conducting the hearing shall be reimbursed by the Commodity Credit Corporation.”.