§7234 Repayment of loans

Summary

Producers may repay marketing-assistance loans for wheat, corn, grain sorghum, barley, oats, and oilseeds at whichever is lower: the loan rate plus interest, or a rate the Secretary sets to cut loan forfeitures, lower government stockpiles and storage costs, and let U.S. crops be sold freely at home and abroad. For upland cotton and rice, repayment is the lower of the loan rate plus interest or the world market price adjusted to U.S. quality and location. Repayment for extra long staple cotton must be the loan rate plus interest. The Secretary must make a rule that explains how to calculate the adjusted world market price and how that price will be announced from time to time. Through July 31, 2003, the adjusted world market price for upland cotton will be further changed if two things happen: the adjusted price is less than 115 percent of the upland cotton loan rate, and the Friday-to-Thursday average price for the lowest-priced U.S. growth (Middling 13/32-inch cotton delivered C.I.F. Northern Europe) is higher than the Friday-to-Thursday average of the five lowest-priced growths (the “Northern Europe price”). That further change can use some or all of these data: U.S. share of world exports, current cotton export sales and shipments, and other relevant information. The extra adjustment cannot be larger than the difference between the Friday-to-Thursday average price for the lowest-priced U.S. growth (Middling 13/32-inch delivered C.I.F. Northern Europe) and the Northern Europe price.