Title 7, AgricultureRelease 119-110
§7284 Personal Liability of Producers for Deficiencies
Title 7 › CHAPTER 100 — AGRICULTURAL MARKET TRANSITION › SUBCHAPTER V — ADMINISTRATION › § 7284
Summary
Producers are not personally responsible if the crops or goods used as security for certain federal nonrecourse farm loans are sold and do not cover the loan, unless the producer got the loan by lying. The Commodity Credit Corporation or the Secretary can still require a producer to cover losses for problems with the commodity’s grade, quality, or quantity, for not caring for or preserving the commodity, or for failing or refusing to deliver it as the program requires. If the Commodity Credit Corporation takes title to unredeemed collateral, it does not have to pay the producer any market value above what is owed on the loan. For sugar, when a processor signs a security agreement, the CCC’s claim on raw cane sugar and refined beet sugar takes priority over growers’ liens and any earlier liens on those crops.
Full Legal Text
Title 7, §7284
Agriculture, Source: USLM XML via OLRC
(a)In general
Except as provided in subsection (b), no producer shall be personally liable for any deficiency arising from the sale of the collateral securing any nonrecourse loan made under this chapter title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.] unless the loan was obtained through a fraudulent representation by the producer.
(b)Limitations
Subsection (a) shall not prevent the Commodity Credit Corporation or the Secretary from requiring a producer to assume liability for— (1)
(2)a failure to properly care for and preserve a commodity; or
(3)a failure or refusal to deliver a commodity in accordance with a program established under this chapter 1 title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.].
(c)Acquisition of collateral
In the case of a nonrecourse loan made under this chapter 1 title I of the Farm Security and Rural Investment Act of 2002 [7 U.S.C. 7901 et seq.], title I of the Food, Conservation, and Energy Act of 2008 [7 U.S.C. 8701 et seq.], and title I of the Agricultural Act of 2014 [7 U.S.C. 9001 et seq.] or the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), if the Commodity Credit Corporation acquires title to the unredeemed collateral, the Corporation shall be under no obligation to pay for any market value that the collateral may have in excess of the loan indebtedness.
(d)Sugarcane and sugar beets
A security interest obtained by the Commodity Credit Corporation as a result of the execution of a security agreement by the processor of sugarcane or sugar beets shall be superior to all statutory and common law liens on raw cane sugar and refined beet sugar in favor of the producers of sugarcane and sugar beets and all prior recorded and unrecorded liens on the crops of sugarcane and sugar beets from which the sugar was derived.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
For definition of “this chapter”, referred to in text, see note set out under section 7201 of this title. The Farm Security and Rural Investment Act of 2002, referred to in subsecs. (a), (b)(3), and (c), is Pub. L. 107–171, May 13, 2002, 116 Stat. 134. Title I of the Act is classified principally to chapter 106 (§ 7901 et seq.) of this title. For complete classification of this Act to the Code, see
Short Title
note under section 7901 of this title and Tables. The Food, Conservation, and Energy Act of 2008, referred to in subsecs. (a), (b)(3), and (c), is Pub. L. 110–246, June 18, 2008, 122 Stat. 1651. Title I of the Act is classified principally to chapter 113 (§ 8701 et seq.) of this title. For complete classification of this Act to the Code, see
Short Title
note set out under section 8701 of this title and Tables. The Agricultural Act of 2014, referred to in subsecs. (a), (b)(3), and (c), is Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 649. Title I of the Act is classified principally to chapter 115 (§ 9001 et seq.) of this title. For complete classification of this Act to the Code, see
Short Title
note set out under section 9001 of this title and Tables. The Commodity Credit Corporation Charter Act, referred to in subsec. (c), is act June 29, 1948, ch. 704, 62 Stat. 1070, which is classified generally to subchapter II (§ 714 et seq.) of chapter 15 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see
Short Title
note set out under section 714 of title 15 and Tables. Codification Pub. L. 110–234 and Pub. L. 110–246 made identical
Amendments
to this section. The
Amendments
by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Amendments
2014—Subsecs. (a), (b)(3), (c). Pub. L. 113–79 substituted “title I of the Food, Conservation, and Energy Act of 2008, and title I of the Agricultural Act of 2014” for “and title I of the Food, Conservation, and Energy Act of 2008”. 2008—Subsecs. (a), (b)(3), (c). Pub. L. 110–246, § 1606, substituted “title I of the Farm Security and Rural Investment Act of 2002, and title I of the Food, Conservation, and Energy Act of 2008” for “and title I of the Farm Security and Rural Investment Act of 2002”. 2002—Subsecs. (a), (b)(3), (c). Pub. L. 107–171 substituted “this chapter and title I of the Farm Security and Rural Investment Act of 2002” for “this chapter”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2008 AmendmentAmendment 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 an
Effective Date
note under section 8701 of this title.
Reference
Citations & Metadata
Citation
7 U.S.C. § 7284
Title 7, Agriculture
Last Updated
Sep 23, 2026
Release point: 119-110