12 2 STA T . 1 685PUBLIC LA W 11 0– 2 4 6 —J U NE 18 , 2008 (D)al l owthec o m mo di t ypr od u ced i n the U nited S tate s to b e mar k eted f reely and competiti v ely , both domestically and internationally
and ( E ) minimi z e discrepancies in marketin g loan benefits across State boundaries and across county boundaries . (b) REPAYM E NT RATE SFOR UP L AN DC OTTON, L ON GG RA I NRI C E, AND M EDI U M GRAIN RICE. —T he Secretary shall permit producers to repay a marketing assistance loan under section 120 1 for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of— (1) the loan rate established for the commodity under sec - tion 1202, plus interest (determined in accordance with section 1 63 of the F ederal A griculture I mprovement and Reform Act of1 9 96( 7 U.S.C. 72 8 3)); or (2) the prevailing world market price for the commodity, as determined and ad j usted by the Secretary in accordance with this section. (c) REPAYMENT RATES FOR E X TRA LONG STAPLE COTTON.— Repayment of a marketing assistance loan for e x tra long staple cotton shall be at the loan rate established for the commodity under section 1202, plus interest (determined in accordance with section 163 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7283)). (d) P RE V AILING W ORLD MAR K ET PRICE.—For purposes of this section and section 1207, the Secretary shall prescribe by regula- tion— (1) a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and (2) a mechanism by which the Secretary shall announce periodically those prevailing world market prices. (e) AD J USTMENT OF PREVAILING WORLD MARKET PRICE FOR UPLAND COTTON, LONG GRAIN RICE, AND MEDIUM GRAIN RICE.— (1) RICE.—The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States q uality and location. (2) COTTON.—The prevailing world market price for upland cotton determined under subsection (d)— (A) shall be adjusted to United States quality and location, with the adjustment to include— (i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Mid- dling (M) 1 3⁄ 3 2 -inch; and (ii) the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and ( B ) may be further adjusted, during the period begin- ning on the date of enactment of this Act and ending on J uly 31, 2013, if the Secretary determines the adjust- ment is necessary to— (i) minimize potential loan forfeitures; (ii) minimize the accumulation of stocks of upland cotton by the Federal Government; (iii) ensure that upland cotton produced in the United States can be marketed freely and competi- tively, both domestically and internationally; and Regulations.
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