Collapse to view only § 7935. Loan deficiency payments
- § 7931. Availability of nonrecourse marketing assistance loans for loan commodities
- § 7932. Loan rates for nonrecourse marketing assistance loans
- § 7933. Term of loans
- § 7934. Repayment of loans
- § 7935. Loan deficiency payments
- § 7936. Payments in lieu of loan deficiency payments for grazed acreage
- § 7937. Special marketing loan provisions for upland cotton
- § 7938. Special competitive provisions for extra long staple cotton
- § 7939. Availability of recourse loans for high moisture feed grains and seed cotton
§ 7931. Availability of nonrecourse marketing assistance loans for loan commodities
(a) Nonrecourse loans available
(1) Availability
(2) Terms and conditions
(b) Eligible production
(c) Treatment of certain commingled commodities
(d) Compliance with conservation and wetlands requirements
(e) Termination of superseded loan authority
(Pub. L. 107–171, title I, § 1201, May 13, 2002, 116 Stat. 155.)
§ 7932. Loan rates for nonrecourse marketing assistance loans
(a) 2002 and 2003 crop yearsFor purposes of the 2002 and 2003 crop years, the loan rate for a marketing assistance loan under section 7931 of this title for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.80 per bushel.
(2) In the case of corn, $1.98 per bushel.
(3) In the case of grain sorghum, $1.98 per bushel.
(4) In the case of barley, $1.88 per bushel.
(5) In the case of oats, $1.35 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $.0960 per pound for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(11) In the case of graded wool, $1.00 per pound.
(12) In the case of nongraded wool, $0.40 per pound.
(13) In the case of mohair, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.33 per hundredweight.
(16) In the case of lentils, $11.94 per hundredweight.
(17) In the case of small chickpeas, $7.56 per hundredweight.
(b) 2004 through 2007 crop yearsFor purposes of the 2004 through 2007 crop years, the loan rate for a marketing assistance loan under section 7931 of this title for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of rice, $6.50 per hundredweight.
(9) In the case of soybeans, $5.00 per bushel.
(10) In the case of other oilseeds, $.0930 per pound for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(11) In the case of graded wool, $1.00 per pound.
(12) In the case of nongraded wool, $0.40 per pound.
(13) In the case of mohair, $4.20 per pound.
(14) In the case of honey, $0.60 per pound.
(15) In the case of dry peas, $6.22 per hundredweight.
(16) In the case of lentils, $11.72 per hundredweight.
(17) In the case of small chickpeas, $7.43 per hundredweight.
(c) Single county loan rate for other oilseeds
(d) Quality grades for dry peas, lentils, and small chickpeasThe loan rate for dry peas, lentils, and small chickpeas shall be based on—
(1) in the case of dry peas, United States feed peas;
(2) in the case of lentils, United States number 3 lentils; and
(3) in the case of small chickpeas, United States number 3 small chickpeas that drop below a 20/64 screen.
(Pub. L. 107–171, title I, § 1202, May 13, 2002, 116 Stat. 155; Pub. L. 108–7, div. A, title VII, § 763(b), Feb. 20, 2003, 117 Stat. 46.)
§ 7933. Term of loans
(a) Term of loan
(b) Extensions prohibited
(
§ 7934. Repayment of loans
(a) General ruleThe Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 7931 of this title for a loan commodity (other than upland cotton, rice, extra long staple cotton, and 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 section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); or
(2) a rate that the Secretary determines will—
(A) minimize potential loan forfeitures;
(B) minimize the accumulation of stocks of the commodity by the Federal Government;
(C) minimize the cost incurred by the Federal Government in storing the commodity;
(D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and
(E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.
(b) Repayment rates for upland cotton and riceThe Secretary shall permit producers to repay a marketing assistance loan under section 7931 of this title for upland cotton and rice at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); or
(2) the prevailing world market price for the commodity (adjusted to United States quality and location), as determined by the Secretary.
(c) Repayment rates for extra long staple cotton
(d) Prevailing world market priceFor purposes of this section and section 7937 of this title, the Secretary shall prescribe by regulation—
(1) a formula to determine the prevailing world market price for upland cotton and rice, adjusted to United States quality and location; and
(2) a mechanism by which the Secretary shall announce periodically the prevailing world market price for upland cotton and rice.
(e) Adjustment of prevailing world market price for upland cotton
(1) In generalDuring the period beginning on May 13, 2002, through July 31, 2008, the prevailing world market price for upland cotton (adjusted to United States quality and location) established under subsection (d) shall be further adjusted if—
(A) the adjusted prevailing world market price is less than 115 percent of the loan rate for upland cotton established under section 7932 of this title, as determined by the Secretary; and
(B) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 13⁄32-inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe (referred to in this section as the “Northern Europe price”).
(2) Further adjustmentExcept as provided in paragraph (3), the adjusted prevailing world market price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:
(A) The United States share of world exports.
(B) The current level of cotton export sales and cotton export shipments.
(C) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location).
(3) Limitation on further adjustmentThe adjustment under paragraph (2) may not exceed the difference between—
(A) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 13⁄32-inch cotton delivered C.I.F. Northern Europe; and
(B) the Northern Europe price.
(f) Repayment rates for confectionery and other kinds of sunflower seedsThe Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 7931 of this title 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 section 7932 of this title, plus interest (determined in accordance with section 7283 of this title); or
(2) the repayment rate established for oil sunflower seed.
(g) Quality grades for dry peas, lentils, and small chickpeas
(h) Good faith exception to beneficial interest requirement
(Pub. L. 107–171, title I, § 1204, May 13, 2002, 116 Stat. 156; Pub. L. 108–7, div. A, title VII, § 763(c), Feb. 20, 2003, 117 Stat. 47.)
§ 7935. Loan deficiency payments
(a) Availability of loan deficiency payments
(1) In general
(2) Unshorn pelts, hay, and silage
(b) Computation
A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—
(1) the payment rate determined under subsection (c) for the commodity; by
(2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 7931 of this title.
(c) Payment rate
(1) In general
In the case of a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under section 7932 of this title for the loan commodity; exceeds
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.
(2) Unshorn pelts
In the case of unshorn pelts, the payment rate shall be the amount by which—
(A) the loan rate established under section 7932 of this title for ungraded wool; exceeds
(B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 7934 of this title.
(3) Hay and silage
In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under section 7932 of this title for the loan commodity from which the hay or silage is derived; exceeds
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.
(d) Exception for extra long staple cotton
(e) Effective date for payment rate determination
(f) Special loan deficiency payment rules
(1) First-time loan commodities
(2) Omitted
(Pub. L. 107–171, title I, § 1205, May 13, 2002, 116 Stat. 158.)
§ 7936. Payments in lieu of loan deficiency payments for grazed acreage
(a) Eligible producers
(1) In general
(2) Grazing of triticale acreage
(b) Payment amount
(1) In generalThe amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—
(A) the loan deficiency payment rate determined under section 7935(c) of this title in effect, as of the date of the agreement, for the county in which the farm is located; by
(B) the payment quantity determined by multiplying—
(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and
(ii) the payment yield in effect for the calculation of direct payments under subchapter I with respect to that loan commodity on the farm or, in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 7912(c) of this title.
(2) Grazing of triticale acreageThe amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—
(A) the loan deficiency payment rate determined under section 7935(c) of this title in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by
(B) the payment quantity determined by multiplying—
(i) the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and
(ii) the payment yield in effect for the calculation of direct payments under subchapter I with respect to wheat on the farm or, in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 7912(c) of this title.
(c) Time, manner, and availability of payment
(1) Time and manner
(2) Availability
(d) Prohibition on crop insurance indemnity or noninsured crop assistance
(Pub. L. 107–171, title I, § 1206, May 13, 2002, 116 Stat. 159.)
§ 7937. Special marketing loan provisions for upland cotton
(a) Repealed. Pub. L. 109–171, title I, § 1103(a)(1), Feb. 8, 2006, 120 Stat. 5
(b) Special import quota
(1) Establishment
(A) In general
(B) Program requirements
(C) Tight domestic supply
(D) Season-ending United States stocks-to-use ratio
(E) Delayed application of threshold
(2) Quantity
(3) Application
(4) Overlap
(5) Preferential tariff treatmentThe quantity under a special import quota shall be considered to be an in-quota quantity for purposes of—
(A)section 2703(d) of title 19;
(B)section 3203 of title 19;
(C)section 2463(d) of title 19; and
(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(6) Definition
(7) Limitation
(c) Limited global import quota for upland cotton
(1) In generalThe President shall carry out an import quota program that provides that whenever the Secretary determines and announces that the average price of the base quality of upland cotton, as determined by the Secretary, in the designated spot markets for a month exceeded 130 percent of the average price of such quality of cotton in the markets for the preceding 36 months, notwithstanding any other provision of law, there shall immediately be in effect a limited global import quota subject to the following conditions:
(A) Quantity
(B) Quantity if prior quota
(C) Preferential tariff treatmentThe quantity under a limited global import quota shall be considered to be an in-quota quantity for purposes of—
(i)section 2703(d) of title 19;
(ii)section 3203 of title 19;
(iii)section 2463(d) of title 19; and
(iv) General Note 3(a)(iv) to the Harmonized Tariff Schedule.
(D) DefinitionsIn this subsection:
(i) SupplyThe term “supply” means, using the latest official data of the Bureau of the Census, the Department of Agriculture, and the Department of the Treasury—(I) the carry-over of upland cotton at the beginning of the marketing year (adjusted to 480-pound bales) in which the quota is established;(II) production of the current crop; and(III) imports to the latest date available during the marketing year.
(ii) DemandThe term “demand” means—(I) the average seasonally adjusted annual rate of domestic mill consumption during the most recent 3 months for which data are available; and(II) the larger of—(aa) average exports of upland cotton during the preceding 6 marketing years; or(bb) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.
(iii) Limited global import quota
(E) Quota entry period
(2) No overlap
(Pub. L. 107–171, title I, § 1207, May 13, 2002, 116 Stat. 161; Pub. L. 109–171, title I, § 1103(a), Feb. 8, 2006, 120 Stat. 5.)
§ 7938. Special competitive provisions for extra long staple cotton
(a) Competitiveness program
Notwithstanding any other provision of law, during the period beginning on May 13, 2002, through July 31, 2008, the Secretary shall carry out a program—
(1) to maintain and expand the domestic use of extra long staple cotton produced in the United States;
(2) to increase exports of extra long staple cotton produced in the United States; and
(3) to ensure that extra long staple cotton produced in the United States remains competitive in world markets.
(b) Payments under program; trigger
Under the program, the Secretary shall make payments available under this section whenever—
(1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and
(2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.
(c) Eligible recipients
(d) Payment amount
(e) Form of payment
(Pub. L. 107–171, title I, § 1208, May 13, 2002, 116 Stat. 164.)
§ 7939. Availability of recourse loans for high moisture feed grains and seed cotton
(a) High moisture feed grains
(1) Recourse loans availableFor each of the 2002 through 2007 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—
(A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;
(B) present—
(i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or
(ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;
(C) certify that they were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and
(D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.
(2) Eligibility of acquired feed grainsA loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—
(A) the acreage of the corn or grain sorghum in a high moisture state harvested on the producer’s farm; by
(B) the lower of the farm program payment yield used to make counter-cyclical payments under subchapter I or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.
(3) High moisture state defined
(b) Recourse loans available for seed cotton
(c) Repayment rates
(d) Termination of superseded loan authority
(Pub. L. 107–171, title I, § 1209, May 13, 2002, 116 Stat. 165.)