- § 8731. Availability of nonrecourse marketing assistance loans for loan commodities
- § 8732. Loan rates for nonrecourse marketing assistance loans
- § 8733. Term of loans
- § 8734. Repayment of loans
- § 8735. Loan deficiency payments
- § 8736. Payments in lieu of loan deficiency payments for grazed acreage
- § 8737. Special marketing loan provisions for upland cotton
- § 8738. Special competitive provisions for extra long staple cotton
- § 8739. Availability of recourse loans for high moisture feed grains and seed cotton
- § 8740. Adjustments of loans
§ 8731. Availability of nonrecourse marketing assistance loans for loan commodities
(a) Nonrecourse loans available
(1) Availability
(2) Terms and conditions
(b) Eligible production
(c) Compliance with conservation and wetlands requirements
(Pub. L. 110–234, title I, § 1201, May 22, 2008, 122 Stat. 953; Pub. L. 110–246, § 4(a), title I, § 1201, June 18, 2008, 122 Stat. 1664, 1681.)
§ 8732. Loan rates for nonrecourse marketing assistance loans
(a) 2008 crop yearFor purposes of the 2008 crop year, the loan rate for a marketing assistance loan under section 8731 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 base quality 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 long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight 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.
(12) In the case of dry peas, $6.22 per hundredweight.
(13) In the case of lentils, $11.72 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.
(b) 2009 crop yearExcept as provided in section 8715 1
1 See References in Text note below.
of this title, for purposes of the 2009 crop year, the loan rate for a marketing assistance loan under section 8731 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 base quality 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 long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight 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.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of large chickpeas, $11.28 per hundredweight.
(16) In the case of graded wool, $1.00 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.60 per pound.
(c) 2010 through 2012 crop yearsExcept as provided in section 8715 1 of this title, for purposes of each of the 2010 through 2012 crop years, the loan rate for a marketing assistance loan under section 8731 of this title for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.94 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, $1.95 per bushel.
(5) In the case of oats, $1.39 per bushel.
(6) In the case of base quality 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 long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $10.09 per hundredweight 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.
(12) In the case of dry peas, $5.40 per hundredweight.
(13) In the case of lentils, $11.28 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of large chickpeas, $11.28 per hundredweight.
(16) In the case of graded wool, $1.15 per pound.
(17) In the case of nongraded wool, $0.40 per pound.
(18) In the case of mohair, $4.20 per pound.
(19) In the case of honey, $0.69 per pound.
(d) Single county loan rate for other oilseeds
(Pub. L. 110–234, title I, § 1202, May 22, 2008, 122 Stat. 954; Pub. L. 110–246, § 4(a), title I, § 1202, June 18, 2008, 122 Stat. 1664, 1682.)
§ 8733. Term of loans
(a) Term of loan
(b) Extensions prohibited
(Pub. L. 110–234, title I, § 1203, May 22, 2008, 122 Stat. 956; Pub. L. 110–246, § 4(a), title I, § 1203, June 18, 2008, 122 Stat. 1664, 1684.)
§ 8734. Repayment of loans
(a) General ruleThe Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 8731 of this title for a loan commodity (other than upland cotton, long grain rice, medium grain 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 8732 of this title, plus interest (determined in accordance with section 7283 of this title);
(2) a rate (as determined by the Secretary) that—
(A) is calculated based on average market prices for the loan commodity during the preceding 30-day period; and
(B) will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or
(3) a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity 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, long grain rice, and medium grain riceThe Secretary shall permit producers to repay a marketing assistance loan under section 8731 of this title for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—
(1) the loan rate established for the commodity under section 8732 of this title, plus interest (determined in accordance with section 7283 of this title); or
(2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.
(c) Repayment rates for extra long staple cotton
(d) Prevailing world market priceFor purposes of this section and section 8737 of this title, the Secretary shall prescribe by regulation—
(1) a formula to determine the prevailing world market 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) Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice
(1) Rice
(2) CottonThe 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 Middling (M) 13⁄32-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 beginning on the date of enactment of this Act and ending on July 31, 2013, if the Secretary determines the adjustment is necessary to—
(i) minimize 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 competitively, both domestically and internationally; and
(iv) 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.
(3) Guidelines for additional adjustments
(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 8731 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 8732 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) Payment of cotton storage costs
(1) 2008 through 2011 crop years
(2) Subsequent crop years
(h) Authority to temporarily adjust repayment rates
(1) Adjustment authority
(2) Duration
(Pub. L. 110–234, title I, § 1204, May 22, 2008, 122 Stat. 956; Pub. L. 110–246, § 4(a), title I, § 1204, June 18, 2008, 122 Stat. 1664, 1684.)
§ 8735. Loan deficiency payments
(a) Availability of loan deficiency payments
(1) In general
(2) Unshorn pelts, hay, and silage
(A) Marketing assistance loans
(B) Loan deficiency payment
(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 8731 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 8732 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 8734 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 8732 of this title for ungraded wool; exceeds
(B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 8734 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 8732 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 8734 of this title.
(d) Exception for extra long staple cotton
(e) Effective date for payment rate determination
(Pub. L. 110–234, title I, § 1205, May 22, 2008, 122 Stat. 958; Pub. L. 110–246, § 4(a), title I, § 1205, June 18, 2008, 122 Stat. 1664, 1686.)
§ 8736. 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 8735(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 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 8735(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 of this title.
(c) Time, manner, and availability of payment
(1) Time and manner
(2) Availability
(A) In general
(B) Certain commodities
(d) Prohibition on crop insurance indemnity or noninsured crop assistance
(Pub. L. 110–234, title I, § 1206, May 22, 2008, 122 Stat. 959; Pub. L. 110–246, § 4(a), title I, § 1206, June 18, 2008, 122 Stat. 1664, 1687.)
§ 8737. Special marketing loan provisions for upland cotton
(a) Special import quota
(1) Definition of special import quota
(2) Establishment
(A) In general
(B) Program requirements
(3) Quantity
(4) Application
(5) Overlap
(6) 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.
(7) Limitation
(b) Limited global import quota for upland cotton
(1) DefinitionsIn this subsection:
(A) 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.
(B) DemandThe term “demand” means—
(i) the average seasonally adjusted annual rate of domestic mill consumption of cotton during the most recent 3 months for which data are available; and
(ii) the larger of—(I) average exports of upland cotton during the preceding 6 marketing years; or(II) cumulative exports of upland cotton plus outstanding export sales for the marketing year in which the quota is established.
(C) Limited global import quota
(2) ProgramThe 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 the 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) Quota entry period
(3) No overlap
(Pub. L. 110–234, title I, § 1207, May 22, 2008, 122 Stat. 960; Pub. L. 110–246, § 4(a), title I, § 1207, June 18, 2008, 122 Stat. 1664, 1689; Pub. L. 115–334, title I, § 1203(a), Dec. 20, 2018, 132 Stat. 4510.)
§ 8738. Special competitive provisions for extra long staple cotton
(a) Competitiveness program
Notwithstanding any other provision of law, during the period beginning on the date of enactment of this Act through July 31, 2013, 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
(Pub. L. 110–234, title I, § 1208, May 22, 2008, 122 Stat. 963; Pub. L. 110–246, § 4(a), title I, § 1208, June 18, 2008, 122 Stat. 1664, 1692.)
§ 8739. Availability of recourse loans for high moisture feed grains and seed cotton
(a) High moisture feed grains
(1) Definition of high moisture state
(2) Recourse loans availableFor each of the 2008 through 2012 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.
(3) 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.
(b) Recourse loans available for seed cotton
(c) Repayment rates
(Pub. L. 110–234, title I, § 1209, May 22, 2008, 122 Stat. 964; Pub. L. 110–246, § 4(a), title I, § 1209, June 18, 2008, 122 Stat. 1664, 1692.)
§ 8740. Adjustments of loans
(a) Adjustment authority
(b) Manner of adjustment
(c) Adjustment on county basis
(1) In general
(2) Prohibition
(d) Adjustment in loan rate for cotton
(1) In general
(2) Revisions to quality adjustments for upland cotton
(A) In general
(B) Mandatory revisions
Revisions under subparagraph (A) shall include—
(i) the elimination of warehouse location differentials;
(ii) the establishment of differentials for the various quality factors and staple lengths of cotton based on a 3-year, weighted moving average of the weighted designated spot market regions, as determined by regional production;
(iii) the elimination of any artificial split in the premium or discount between upland cotton with a 32 or 33 staple length due to micronaire; and
(iv) a mechanism to ensure that no premium or discount is established that exceeds the premium or discount associated with a leaf grade that is 1 better than the applicable color grade.
(C) Discretionary revisions
Revisions under subparagraph (A) may include—
(i) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;
(ii) adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and
(iii) such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).
(3) Consultation with private sector
(A) Prior to revision
(B) Inapplicability of chapter 10 of title 5
(4) Review of adjustments
The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further revisions to the administration of the loan program for upland cotton, by—
(A) revoking or revising any actions taken under paragraph (2)(B); or
(B) revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).
(e) Rice
(Pub. L. 110–234, title I, § 1210, May 22, 2008, 122 Stat. 965; Pub. L. 110–246, § 4(a), title I, § 1210, June 18, 2008, 122 Stat. 1664, 1693; Pub. L. 117–286, § 4(a)(42), Dec. 27, 2022, 136 Stat. 4310.)