S 2568 — Fair Sugar Policy Act of 2019

(a) Sugarcane The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to— (1) 18.00 cents per pound for raw cane sugar for the 2008 crop year; (2) 18.25 cents per pound for raw cane sugar for the 2009 crop year; (3) 18.50 cents per pound for raw cane sugar for the 2010 crop year; (4) 18.75 cents per pound for raw cane sugar for each of the 2011 through 2018 crop years; (5) 19.75 cents per pound for raw cane sugar for each of the 2019 through 2024 crop years; and (6) 24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years. (b) Sugar beets The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to— (1) 22.9 cents per pound for refined beet sugar for the 2008 crop year; (2) a rate that is equal to 128.5 percent of the loan rate per pound of raw cane sugar for the applicable crop year under subsection (a) for each of the 2009 through 2024 crop years; and (3) a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years. (c) Term of loans (1) In general A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of— (A) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or (B) the end of the fiscal year in which the loan is made. (2) Supplemental loans In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall— (A) be made at the loan rate in effect at the time the first loan was made; and (B) mature in 9 months less the quantity of time that the first loan was in effect. (d) Loan type; processor assurances (1) Nonrecourse loans The Secretary shall carry out this section through the use of nonrecourse loans. (2) Processor assurances (A) In general The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor. (B) Minimum payments (i) In general Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph. (ii) Limitation In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor. (3) Administration The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan. (e) Loans for in-process sugar (1) Definition of in-process sugars and syrups In this subsection, the term “in-process sugars and syrups” does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b). (2) Availability The Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop. (3) Loan rate The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups. (4) Further processing on forfeiture (A) In general As a condition of the forfeiture of in-process ...

(a) Definitions In this section: (1) Bioenergy The term “bioenergy” means fuel grade ethanol and other biofuel. (2) Bioenergy producer The term “bioenergy producer” means a producer of bioenergy that uses an eligible commodity to produce bioenergy under this section. (3) Eligible commodity The term “eligible commodity” means a form of raw or refined sugar or in-process sugar that is eligible to be marketed in the United States for human consumption or to be used for the extraction of sugar for human consumption. (4) Eligible entity The term “eligible entity” means an entity located in the United States that markets an eligible commodity in the United States. (b) Feedstock flexibility program (1) In general (A) Purchases and sales For each of the 2008 through 2026 crops, the Secretary shall purchase eligible commodities from eligible entities and sell such commodities to bioenergy producers for the purpose of producing bioenergy in a manner that ensures that section 7272 of this title is operated at no cost to the Federal Government by avoiding forfeitures to the Commodity Credit Corporation. (B) Competitive procedures In carrying out the purchases and sales required under subparagraph (A), the Secretary shall, to the maximum extent practicable, use competitive procedures, including the receiving, offering, and accepting of bids, when entering into contracts with eligible entities and bioenergy producers, provided that such procedures are consistent with the purposes of subparagraph (A). (C) Limitation The purchase and sale of eligible commodities under subparagraph (A) shall only be made in crop years in which such purchases and sales are necessary to ensure that the program authorized under section 7272 of this title is operated at no cost to the Federal Government by avoiding forfeitures to the Commodity Credit Corporation. (2) Notice (A) In general As soon as practicable after the date of enactment of the Food, Conservation, and Energy Act of 2008 and each September 1 thereafter through September 1, 2026, the Secretary shall provide notice to eligible entities and bioenergy producers of the quantity of eligible commodities that shall be made available for purchase and sale for the crop year following the date of the notice under this section. (B) Reestimates Not later than the January 1, April 1, and July 1 of the calendar year following the date of a notice under subparagraph (A), the Secretary shall reestimate the quantity of eligible commodities determined under subparagraph (A), and provide notice and make purchases and sales based on such reestimates. (3) Commodity Credit Corporation inventory (A) Dispositions (i) Bioenergy and generally Except as provided in clause (ii), to the extent that an eligible commodity is owned and held in inventory by the Commodity Credit Corporation (accumulated pursuant to the program authorized under section 7272 of this title), the Secretary shall— (I) sell the eligible commodity to bioenergy producers under this section consistent with paragraph (1)(C); (II) dispose of the eligible commodity in accordance with section 7272(f)(2) of this title; or (III) otherwise dispose of the eligible commodity through the buyback of certificates of quota entry. (ii) Preservation of other authorities Nothing in this section limits the use of other authorities for the disposition of an eligible commodity held in the inventory of the Commodity Credit Corporation for nonfood use or otherwise in a manner that does not increase the net quantity of sugar available for human consumption in the United States market, consistent with section 7272(f)(1) of this title. (B) Emergency shortages Notwithstanding subparagraph (A), if there is an emergency shortage of sugar for human consumption in the United States market that is caused by a war, flood, hurricane, or other natural disaster, or other similar event, the Secretary may dispose of an eligible commodity that is owned and held in inventory by the Commodity...