§8757 Marketing assistance loans and loan deficiency payments for peanuts

Summary

For the 2008 through 2012 peanut crops, the Agriculture Secretary must offer nonrecourse loans to peanut growers for any amount they produce. The Secretary sets the loan rules and the loan rate, which is $355 per ton. Growers can get the loan or, instead, take a smaller cash payment if they skip the loan, through an approved marketing cooperative or the Farm Service Agency. Places that store loaned peanuts must store them fairly and follow extra rules the Secretary sets. When peanuts go under a loan, the government will pay handling and related costs (but not storage at that time). If the loan is redeemed, those handling costs must be paid back. If peanuts are forfeited to the government, the government will pay storage, handling, and related costs. Cooperatives may sort and sell loaned peanuts to meet buyer needs. Each loan lasts 9 months, starting the first day of the month after the loan is made, and the term cannot be extended. Growers may repay the loan at the lower of the loan rate plus interest or a Secretary-set rate meant to reduce forfeitures, government stockpiles, and storage costs and to keep marketing competitive. The Secretary can temporarily change the repayment rate after major disruptions. The alternate payment for skipping a loan is the difference between the loan rate and the repayment rate multiplied by the quantity not under loan; the payment rate is fixed when the grower requests the payment. Loans require meeting conservation and wetland protection rules, and administrative and payment agreements must be handled the same way as for other crops.