Title 7 — AgricultureRelease 119-73

§7236a Special competitive provisions for extra long staple cotton

Title 7 › Chapter CHAPTER 100— - AGRICULTURAL MARKET TRANSITION › Subchapter SUBCHAPTER III— - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS › § 7236a

Last updated Apr 6, 2026|Official source

Summary

The Secretary must run a program from October 1, 1999, through July 31, 2003 to keep U.S.-produced extra long staple cotton competitive, grow its use at home, and boost exports. Payments are made only if two tests are met: the adjusted world price for the cheapest competing extra long staple cotton stays below the U.S. price for four weeks in a row, and that adjusted world price is less than 134 percent of the loan rate. Payments go to U.S. users and exporters who sign an agreement with the Commodity Credit Corporation. The amount equals the price gap in the fourth week times documented purchases or export sales in the week after the four-week period. Recipients may get cash or marketing certificates.

Full Legal Text

Title 7, §7236a

Agriculture — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, during the period beginning on October 1, 1999, and ending on July 31, 2003, the Secretary shall carry out a program to maintain and expand the domestic use of extra long staple cotton produced in the United States, to increase exports of extra long staple cotton produced in the United States, and to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

(b)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)The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States who enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

(d)Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.

(e)Payments under this section shall be made through the issuance of cash or marketing certificates, at the option of eligible recipients of the payments.

Reference

Citations & Metadata

Citation

7 U.S.C. § 7236a

Title 7 — Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73