To phase out the Federal sugar program.

SA 2393. Mr. REID proposed an amendment to amendment SA 2392 proposed
by Mr. Reid to the amendment SA 2391 proposed by Mr. Reid to the bill
S. 3240, to reauthorize agricultural programs through 2017, and for
other purposes; as follows:

SEC. __. SHORT TITLE.

This subtitle may be cited as the ``Stop Unfair Giveaways
and Restrictions Act of 2012'' or ``SUGAR Act of 2012''.

SEC. __. SUGAR PROGRAM.

(a) In General.--Section 156 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7272) is
amended--
(1) in subsection (d), by striking paragraph (1) and
inserting the following:
``(1) Loans.--The Secretary shall carry out this section
through the use of recourse loans.'';
(2) by redesignating subsection (i) as subsection (j);
(3) by inserting after subsection (h) the following:
``(i) Phased Reduction of Loan Rate.--For each of the 2012,
2013, and 2014 crops of sugar beets and sugarcane, the
Secretary shall lower the loan rate for each succeeding crop
in a manner that progressively and uniformly lowers the loan
rate for sugar beets and sugarcane to $0 for the 2015
crop.''; and
(4) in subsection (j) (as redesignated), by striking
``2012'' and inserting ``2014''.
(b) Prospective Repeal.--Effective beginning with the 2015
crop of sugar beets and sugarcane, section 156 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272) is repealed.

SEC. __. ELIMINATION OF SUGAR PRICE SUPPORT AND PRODUCTION
ADJUSTMENT PROGRAMS.

(a) In General.--Notwithstanding any other provision of
law--
(1) a processor of any of the 2015 or subsequent crops of
sugarcane or sugar beets shall not be eligible for a loan
under any provision of law with respect to the crop; and
(2) the Secretary may not make price support available,
whether in the form of a loan, payment, purchase, or other
operation, for any of the 2015 and subsequent crops of sugar
beets and sugarcane by using the funds of the Commodity
Credit Corporation or other funds available to the Secretary.
(b) Termination of Marketing Quotas and Allotments.--
(1) In general.--Part VII of subtitle B of title III of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.)
is repealed.
(2) Conforming amendment.--Section 344(f)(2) of the
Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(2)) is
amended by striking ``sugar cane for sugar, sugar beets for
sugar,''.
(c) General Powers.--
(1) Section 32 activities.--Section 32 of the Act of August
24, 1935 (7 U.S.C. 612c), is amended in the second sentence
of the first paragraph--
(A) in paragraph (1), by inserting ``(other than sugar
beets and sugarcane)'' after ``commodities''; and
(B) in paragraph (3), by inserting ``(other than sugar
beets and sugarcane)'' after ``commodity''.
(2) Powers of commodity credit corporation.--Section 5(a)
of the Commodity Credit

[[Page S4104]]

Corporation Charter Act (15 U.S.C. 714c(a)) is amended by
inserting ``, sugar beets, and sugarcane'' after ``tobacco''.
(3) Price support for nonbasic agricultural commodities.--
Section 201(a) of the Agricultural Act of 1949 (7 U.S.C.
1446(a)) is amended by striking ``milk, sugar beets, and
sugarcane'' and inserting ``, and milk''.
(4) Commodity credit corporation storage payments.--Section
167 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7287) is repealed.
(5) Suspension and repeal of permanent price support
authority.--Section 171(a)(1) of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7301(a)(1)) is
amended--
(A) by striking subparagraph (E); and
(B) by redesignating subparagraphs (F) through (I) as
subparagraphs (E) through (H), respectively.
(6) Storage facility loans.--Section 1402(c) of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7971) is
repealed.
(7) Feedstock flexibility program for bioenergy
producers.--Effective beginning with the 2013 crop of sugar
beets and sugarcane, section 9010 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 8110) is repealed.
(d) Transition Provisions.--This section and the amendments
made by this section shall not affect the liability of any
person under any provision of law as in effect before the
application of this section and the amendments made by this
section.

SEC. __. TARIFF-RATE QUOTAS.

(a) Establishment.--Except as provided in subsection (c)
and notwithstanding any other provision of law, not later
than October 1, 2012, the Secretary shall develop and
implement a program to increase the tariff-rate quotas for
raw cane sugar and refined sugars for a quota year in a
manner that ensures--
(1) a robust and competitive sugar processing industry in
the United States; and
(2) an adequate supply of sugar at reasonable prices in the
United States.
(b) Factors.--In determining the tariff-rate quotas
necessary to satisfy the requirements of subsection (a), the
Secretary shall consider the following:
(1) The quantity and quality of sugar that will be subject
to human consumption in the United States during the quota
year.
(2) The quantity and quality of sugar that will be
available from domestic processing of sugarcane, sugar beets,
and in-process beet sugar.
(3) The quantity of sugar that would provide for reasonable
carryover stocks.
(4) The quantity of sugar that will be available from
carryover stocks for human consumption in the United States
during the quota year.
(5) Consistency with the obligations of the United States
under international agreements.
(c) Exemption.--Subsection (a) shall not include specialty
sugar.
(d) Definitions.--In this section, the terms ``quota year''
and ``human consumption'' have the meaning such terms had
under section 359k of the Agricultural Adjustment Act of 1938
(7 U.S.C. 1359kk) (as in effect on the day before the date of
the enactment of this Act).

SEC. __. APPLICATION.

Except as otherwise provided in this subtitle, this
subtitle and the amendments made by this subtitle shall apply
beginning with the 2012 crop of sugar beets and sugarcane.
______