PRIA Logo™
Title 7 — AgricultureRelease 119-73not60

§7284 Personal Liability of Producers for Deficiencies

Title 7 › Chapter 100— AGRICULTURAL MARKET TRANSITION › Subchapter V— ADMINISTRATION › § 7284

Last updated Apr 3, 2026|Official source

Summary

Producers are not personally responsible for any shortfall when collateral is sold for nonrecourse loans made under title I of the Farm Security and Rural Investment Act of 2002, title I of the Food, Conservation, and Energy Act of 2008, and title I of the Agricultural Act of 2014, unless the producer got the loan by lying. The Commodity Credit Corporation or the Secretary can still make a producer pay if the problem is a bad grade, poor quality, or wrong quantity; a failure to care for or preserve the commodity; or a failure or refusal to deliver the commodity under a program under those same titles. If the Commodity Credit Corporation takes title to unpaid collateral for such loans or under the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), it does not have to pay the producer for any market value of the collateral that is higher than the loan balance. If a sugarcane or sugar beet processor gives the Commodity Credit Corporation a security interest by signing a security agreement, that claim ranks ahead of any producer liens on raw cane sugar or refined beet sugar and ahead of any earlier recorded or unrecorded liens on the crops.

Full Legal Text

Title 7, §7284

Agriculture — Source: USLM XML via OLRC

(a)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 11 So in original. Probably should be followed by a comma. 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)Subsection (a) shall not prevent the Commodity Credit Corporation or the Secretary from requiring a producer to assume liability for—
(1)a deficiency in the grade, quality, or quantity of a commodity stored on a farm or delivered by the producer;
(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)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)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

Apr 3, 2026

Release point: 119-73not60