§7934 Repayment of loans

Summary

Farmers must be allowed to repay marketing assistance loans for most commodities at whichever is lower: the loan rate plus interest, or a rate the Secretary sets to avoid loan forfeitures, reduce government stockpiles and storage costs, keep U.S. products competitive at home and abroad, and make benefits more even across States and counties. Upland cotton and rice can be repaid at the lower of the loan rate plus interest or the prevailing world market price adjusted to U.S. quality and location as set by the Secretary. Extra long staple cotton must be repaid at the loan rate plus interest. Confectionery and other non‑oil sunflower seed can be repaid at the lower of the loan rate plus interest or the oil sunflower seed repayment rate. Dry peas, lentils, and small chickpeas use quality grades specified in section 7932(d). The Secretary must make a formula and a way to publish the world prices for upland cotton and rice. From May 13, 2002, through July 31, 2008, the world price for upland cotton may be further adjusted if the adjusted price is less than 115 percent of the loan rate and a specific Friday-through-Thursday price test using Middling (M) 13⁄32-inch cotton delivered C.I.F. Northern Europe is met. That further adjustment can use U.S. export share, export sales and shipments, and other relevant data, but it cannot exceed the difference between the Friday-through-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 (the average of the 5 lowest-priced growths quoted the same way). For the 2001 crop year only, producers who lost beneficial interest before repaying a loan may repay at the repayment rate that was in effect on the date they lost beneficial interest if the Secretary finds they acted in good faith.