7 U.S.C. § 7935 — Loan deficiency payments
submitted 24 years ago by Pub. L. 107-171 to r/title-7-AGRICULTURE · 579 words · no verdicts yet
Farmers can choose loan deficiency payments instead of taking out a marketing loan. The payment equals the loan-rate gap times the quantity produced. Extra long staple cotton and some newly added crops have special rules.
(a) Availability. (1) Normally, instead of taking out a marketing assistance loan, a farmer eligible for one can ask the Secretary* for a "loan deficiency payment" instead, giving up the loan in exchange for the payment. (2) Nongraded wool that is still on the pelt ("unshorn pelts"), and hay or silage made from a loan commodity*, cannot get a regular marketing loan. But from 2002 through 2007, farmers producing these can still get a loan deficiency payment.
(b) Computation. The payment equals the payment rate (set in subsection (c)) multiplied by the quantity of the commodity the farmer produced, not counting any amount for which the farmer already took out a marketing loan.
(c) Payment rate. (1) For a regular loan commodity, the rate is the loan rate (section 7932) minus the rate at which the loan could be repaid (section 7934). (2) For unshorn pelts, it is the ungraded-wool loan rate minus the ungraded-wool repayment rate. (3) For hay or silage, it is the loan rate for the original commodity minus that commodity's repayment rate.
(d) Exception. This section does not apply to extra long staple cotton* at all.
(e) Timing. The Secretary uses the payment rate in effect on the date the farmer actually asks for the payment.
(f) Special first-time rule. (1) For the 2002 crop of wool, mohair, honey, dry peas, lentils, and small chickpeas — commodities newly covered by this kind of payment — a farmer who already lost the crop (sold it or otherwise gave up interest in it) before the rules were published can still qualify. The Secretary treats them as eligible as of the date they lost the crop. (2) A further paragraph here was "Omitted" from the source text — it was left out by the people who compile the U.S. Code, so no content is available for it.
Except as provided in subsection (d), the Secretary* may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 7931 of this title with respect to a loan commodity*, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
Nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 7931 of this title. However, effective for the 2002 through 2007 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—
the payment rate determined under subsection (c) for the commodity; by
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.
In the case of a loan commodity, the payment rate shall be the amount by which—
the loan rate established under section 7932 of this title for the loan commodity; exceeds
the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.
In the case of unshorn pelts, the payment rate shall be the amount by which—
the loan rate established under section 7932 of this title for ungraded wool; exceeds
the rate at which a marketing assistance loan for ungraded wool may be repaid under section 7934 of this title.
In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
the loan rate established under section 7932 of this title for the loan commodity from which the hay or silage is derived; exceeds
the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.
This section shall not apply with respect to extra long staple cotton.
The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.
For the 2002 crop of wool, mohair, honey, dry peas, lentils and small chickpeas, in the case of producers of such a crop that would be eligible for a loan deficiency payment under this section except for the fact that the producers lost beneficial interest in the crop prior to the date of publication of the regulations implementing this section, the producers shall be eligible for a loan deficiency payment as of the date producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary.
Source credit: (Pub. L. 107–171, title I, § 1205, May 13, 2002, 116 Stat. 158.)
- 2002Enacted · Pub. L. 107-171 · 116 Stat. 158
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-171 on 2002-05-13.
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