§7232 Loan Rates for Marketing Assistance Loans

Summary

Sets how high or low marketing-assistance loan rates must be for certain crops. For wheat, the loan rate must be at least 85% of the average price farmers got over the last five marketing years after dropping the single highest and lowest year, but it cannot be more than $2.58 per bushel. If the Secretary of Agriculture thinks ending stocks divided by total use will be 30% or more, the Secretary may cut the wheat rate by up to 10%. If that ratio is between 15% and under 30%, the Secretary may cut the rate by up to 5%. If the ratio is under 15%, no cut is allowed. For corn, the loan rate must follow the same 85% of the 5-year average rule but cannot exceed $1.89 per bushel. The Secretary may reduce the corn rate up to 10% if ending stocks/use are 25% or more, up to 5% if they are between 12.5% and under 25%, and not at all if under 12.5%. Loan rates for grain sorghum, barley, and oats are set in relation to the corn rate, taking feeding value into account. Upland cotton’s loan rate per pound is set so it reflects recent market prices using one of two price methods the Secretary uses, and it must be at least $0.50 and no more than $0.5192 per pound. Extra long staple cotton must be at least 85% of a recent multi-year average (dropping the highest and lowest year) but not more than $0.7965 per pound. Rice loan rates are $6.50 per hundredweight. Soybean loan rates must be at least 85% of the recent 5-year average (dropping the highest and lowest year) and in any case no less than $4.92 or more than $5.26 per bushel. Sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed each must be at least 85% of their own recent 5-year average (dropping the highest and lowest year) and must be between $0.087 and $0.093 per pound. Other oilseed loan rates are set in relation to soybeans and, except for cottonseed, cannot be lower per pound than the soybean rate.