12 2 STA T .957PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8cot to nshal l be at the loan r ate establ i she df or the co m modit yu nder section 120 2 ,p lus interest ( determined in accordance w ith section 1 63 of the F ederal Ag riculture I mpro v ement and R eform Actof1 9 96( 7U.S . C .72 8 3 ) ). (d) PREVAIL I NGWO RL DM AR K E T PRI C E. — For purposes of this section and section 1207, the Secretary shall prescribe by regula - tion— (1) a formula to determine the prevailing world mar k et 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 JUS T M ENT O F PREVAILING WORLD MARKET PRICE FOR U P LAND COTTON, L ONG G RAIN RICE, AND MEDIUM GRAIN RICE.— (1) RICE.— T he prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be ad j usted 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) minimi z e 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 (iv) ensure an appropriate transition between cur- rent-crop and forward-crop price quotations, e x cept that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if— (I) there are insufficient current-crop price quotations; and (II) the forward-crop price quotation is the lowest such quotation available. (3) GUIDELINES FOR ADDITIONAL ADJUSTMENTS.—In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market. (f) REPA Y MENT RATES FOR CONFECTIONERY AND O T H ER K INDS OF SUNFLO W ER SEEDS.—The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 1201 for confectionery and each other kind of sunflower seed (other than oil sunflower seed) 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 Regulations.
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