S.1242: A bill to amend the Federal Crop Insurance Act and Farm Security and Rural Investment Act of 2002 to establish a biofuel pilot program to offer crop insurance to producers of experimental biofuel crops and a program to make loans and loan guarantees to producers of experimental biofuel crops.

Amends the Federal Crop Insurance Act to establish a crop insurance pilot program for experimental biofuel crops (nonpetroleum fuel source or nonpetroleum lubricant use).

Amends the Farm Security and Reinvestment Act to: (1) direct the Secretary of Agriculture to provide loans and loan guarantees to producers of experimental biofuel crops; and (2) authorize the Secretary to make grants to research facilities and institutions of higher education for studies of such crops as animal feed and research on harvesting and planting techniques for such crops.