§8735 — Title 7 Agriculture | U.S. Code

Summary

The Secretary of Agriculture can let farmers who could get a marketing assistance loan choose not to take the loan and instead get a loan deficiency payment. Normally ungraded wool in unshorn pelts and hay or silage made from a loan commodity are not eligible for marketing loans, but for the 2008 through 2012 crop years the Secretary may allow loan deficiency payments for those unshorn pelts or that hay and silage. Extra long staple cotton is not covered. The payment equals the payment rate times the amount of the commodity the eligible producers made, excluding any amount that got a marketing assistance loan. The payment rate is the loan rate (set under section 8732) minus the loan repayment rate (under section 8734). For unshorn pelts use the ungraded wool loan rate. For hay or silage use the loan rate for the commodity it came from. The Secretary must use the payment rate in effect on the day the producers ask for the payment.

Title 7, §8735

Agriculture — Source: USLM XML via OLRC

(a)(1)Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 8731 of this title with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.

(2)(A)Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 8731 of this title.

(B)Effective for the 2008 through 2012 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.

(b)A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—

(1)the payment rate determined under subsection (c) for the commodity; by

(2)the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 8731 of this title.

(c)(1)In the case of a loan commodity, the payment rate shall be the amount by which—

(A)the loan rate established under section 8732 of this title for the loan commodity; exceeds

(B)the rate at which a marketing assistance loan for the loan commodity may be repaid under section 8734 of this title.

(2)In the case of unshorn pelts, the payment rate shall be the amount by which—

(A)the loan rate established under section 8732 of this title for ungraded wool; exceeds

(B)the rate at which a marketing assistance loan for ungraded wool may be repaid under section 8734 of this title.

(3)In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—

(A)the loan rate established under section 8732 of this title for the loan commodity from which the hay or silage is derived; exceeds

(B)the rate at which a marketing assistance loan for the loan commodity may be repaid under section 8734 of this title.

(d)This section shall not apply with respect to extra long staple cotton.

(e)The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§8735 Loan deficiency payments