7 U.S.C. § 8757 — Marketing assistance loans and loan deficiency payments for peanuts

(a) Nonrecourse loans available. (1) For 2008 through 2012 peanut crops, the Secretary had to offer producers nonrecourse marketing assistance loans, using the peanuts themselves as collateral. (2) Terms are set by the Secretary, at the loan rate in (b). (3) Producers qualify for any quantity of peanuts they grow. (4) Producers can get the loan, or the loan deficiency payments in (e), through an approved marketing association or cooperative, or through the Farm Service Agency. (5) Anyone approved to store loan peanuts must agree to store them without discrimination and follow any other fairness rules the Secretary sets. (6) Starting with the 2008 crop, the Secretary had to pay handling and other costs (not storage) when peanuts go under loan; if a loan is repaid, that money must be paid back; if peanuts are forfeited instead, the Secretary pays storage, handling, and other costs on those too. (7) A marketing association or cooperative can market loan peanuts however fits consumer needs, including sorting by type and quality. (b) Loan rate. Except where section 8715 says otherwise, the loan rate is $355 per ton. (c) Term of loan. (1) A loan lasts 9 months, starting the first day of the month after it is made. (2) The Secretary cannot extend that term. (d) Repayment rate. (1) Producers repay at whichever is lower: (A) the loan rate plus interest, or (B) a rate the Secretary sets to minimize forfeitures, minimize government peanut stockpiles and storage costs, and keep U.S. peanuts competitive at home and abroad. (2) If there is a severe disruption to marketing, transportation, or related systems, the Secretary may temporarily adjust the repayment rate — but only on a short-term, temporary basis. (e) Loan deficiency payments. (1) The Secretary may pay producers who qualify for a loan but agree to skip it, instead of taking the loan. (2) The payment equals the payment rate (from (3)) multiplied by the peanuts produced, not counting any quantity already put under loan. (3) The payment rate is the loan rate minus the loan repayment rate. (4) The rate used is whatever is in effect on the date the producer requests payment. (f) Compliance with conservation and wetlands requirements. To get a loan, the producer must follow the Food Security Act of 1985's conservation and wetland protection rules during the loan term. (g) Reimbursable agreements and payment of administrative expenses. The Secretary may only handle reimbursable agreements or administrative expenses under this subchapter the same way it is done for other commodities.