§7237 Availability of Recourse Loans for High Moisture Feed Grains and Seed Cotton and Other Fibers

Summary

Makes special recourse loans available to certain farm producers for high-moisture feed grains, seed cotton, and mohair for the years shown. For the 1996 through 2002 crops of corn and grain sorghum, producers on farms with eligible cropland under a production flexibility contract may get recourse loans if they normally harvest in a high-moisture state, show certified scale tickets or approved field measurements, confirm they owned and delivered the grain to an approved storage or use facility, and meet Secretary-set harvest and application deadlines. The loan quantity equals the acres harvested in a high-moisture state multiplied by the lower of the farm program payment yield or the actual yield of a similar field. “High-moisture state” means moisture above the Commodity Credit Corporation standards used for marketing assistance loans. For seed cotton, recourse seed-cotton loans are available for 1996–2002 upland cotton on eligible-contract farms, and for 1996–2002 extra long staple cotton on any production. For mohair, the Secretary must offer recourse loans in fiscal year 1999 for mohair produced during or before that year at $2.00 per pound, with a 1-year term starting the first day of the month after the loan is made and no interest charged. All other recourse loans must be repaid at the loan rate plus interest as set by the Secretary.