COMMODITY CERTIFICATES.

SEC. 812. COMMODITY CERTIFICATES. Subtitle E of the Agricultural Market Transition Act (7 U.S.C. 7281 et seq.) is amended by adding at the end the following: “SEC. 166. COMMODITY CERTIFICATES. “(a) In General.—In making in-kind payments under subtitle C, the Commodity Credit Corporation may— “(1) acquire and use commodities that have been pledged to the Commodity Credit Corporation as collateral for loans made by the Corporation; “(2) use other commodities owned by the Commodity Credit Corporation; and “(3) redeem negotiable marketing certificates for cash under terms and conditions established by the Secretary. “(b) Methods of Payment.—The Commodity Credit Corporation may make in-kind payments— “(1) by delivery of the commodity at a warehouse or other similar facility; “(2) by the transfer of negotiable warehouse receipts; “(3) by the issuance of negotiable certificates, which the Commodity Credit Corporation shall exchange for a commodity owned or controlled by the Corporation in accordance with regulations promulgated by the Corporation; or “(4) by such other methods as the Commodity Credit Corporation determines appropriate to promote the efficient, equitable, and expeditious receipt of the in-kind payments so that 113 STAT. 1182a person receiving the payments receives the same total return as if the payments had been made in cash. “(c) Administration.— “(1) Form.—At the option of a producer, the Commodity Credit Corporation shall make negotiable certificates authorized under subsection (b)(3) available to the producer, in the form of program payments or by sale, in a manner that the Corporation determines will encourage the orderly marketing of commodities pledged as collateral for loans made to producers under subtitle C. “(2) Transfer.—A negotiable certificate issued in accordance with this subsection may be transferred to another person in accordance with regulations promulgated by the Secretary.”.