7 U.S.C. § 1425 — Producer rights and liabilities

(a) Liability for deficiencies Except as otherwise provided in section 1425a of this title , no producer must be personally liable for any deficiency arising from the sale of the collateral securing any loan made under authority of this Act unless such loan was obtained through fraudulent representations by the producer. This provision must not, however, be construed to prevent the Commodity Credit Corporation or the Secretary from requiring producers to assume liability for deficiencies in the grade, quality, or quantity of commodities stored on the farm or delivered by them, for failure properly to care for and preserve commodities, or for failure or refusal to deliver commodities under the requirements of the program. There is authorized to be included in the terms and conditions of any such nonrecourse loan a provision whereby on and after the maturity of the loan or any extension of it Commodity Credit Corporation must have the right to acquire title to the unredeemed collateral without obligation to pay for any market value which such collateral may have in excess of the loan indebtedness. (b) Sugarcane and sugar beets The security interests obtained by the Commodity Credit Corporation as a result of the execution of security agreements by the processors of sugarcane and sugar beets must be superior to all statutory and common law liens on raw cane sugar and refined beet sugar in favor of the producers of sugarcane and sugar beets and all earlier recorded and unrecorded liens on the crops of sugarcane and sugar beets from which the sugar was derived. The preceding sentence must not affect the application of section 1421(e)(2) of this title .