Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is amended—
(1) in subsection (b)—
(A) by redesignating paragraph (1) as subparagraph (A) and indenting appropriately;
(B) in the matter preceding subparagraph (A) (as so redesignated), by striking “The Secretary” and inserting the following:
“(1) IN GENERAL.—The Secretary”; and
(C) by striking paragraph (2) and inserting the following:
“(B) (i) in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or
“(ii) in the case of upland cotton, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.
“(2) REFUND FOR UPLAND COTTON.—In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.”;
(2) in subsection (c)—
(A) by striking the period at the end and inserting “; and”;
(B) by striking “at the loan rate” and inserting the following: "at a rate that is the lesser of—
“(1) the loan rate”; and
(C) by adding at the end the following:
“(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.”;
(3) in subsection (d)—
(A) in paragraph (1), by striking “and medium grain rice” and inserting “medium grain rice, and extra long staple cotton”;
(B) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;
(C) in the matter preceding subparagraph (A) (as so redesignated), by striking “For purposes” and inserting the following:
“(1) IN GENERAL.—For purposes”; and
(D) by adding at the end the following:
“(2) UPLAND COTTON.—In the case of upland cotton, for any period when price quotations for Middling (M) 13⁄32 -inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.”; and
(4) in subsection (e)—
(A) in the subsection heading, by inserting “extra long staple cotton,” after “Upland cotton,”;
(B) in paragraph (2)—
(i) in the paragraph heading, by inserting “Upland” before “Cotton”; and
(ii) in subparagraph (B), in the matter preceding clause (i), by striking “2024” and inserting “2032”;
(C) by redesignating paragraph (3) as paragraph (4); and
(D) by inserting after paragraph (2) the following:
“(3) EXTRA LONG STAPLE COTTON.—The prevailing world market price for extra long staple cotton determined under subsection (d)—
“(A) shall be adjusted to United States quality and location, with the adjustment to include 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 beginning on the date of enactment of the Act entitled ‘An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14’ (119th Congress) and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—
“(i) to minimize potential loan forfeitures;
“(ii) to minimize the accumulation of stocks of extra long staple cotton by the Federal Government;
“(iii) to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and
“(iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except 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.”.