§7935 — Title 7 Agriculture | U.S. Code

Summary

If a farmer could get a marketing assistance loan for a crop, the farmer can choose not to take that loan and instead get a loan deficiency payment. The payment can also be made for unshorn pelts and for hay or silage that come from a loan-eligible crop, but the Secretary may only allow those payments for the 2002 through 2007 crop years. Extra long staple cotton is not covered. The payment equals a per-unit payment rate times the amount of the crop the farmers produced, but not the part they did get a loan for. The per-unit payment rate is the loan rate for the crop minus the rate used to repay a marketing assistance loan. For unshorn pelts the ungraded wool loan rate is used. For hay or silage the loan rate of the crop it came from is used. The payment uses the rate in effect on the day the farmer asks for the payment. For the 2002 crop of wool, mohair, honey, dry peas, lentils, and small chickpeas, farmers who lost beneficial interest before the rules were published can still get the payment as of the date they marketed or lost interest, as the Secretary decides.

Title 7, §7935

Agriculture — Source: USLM XML via OLRC

(a)(1)Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 7931 of this title with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.

(2)Nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 7931 of this title. However, effective for the 2002 through 2007 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.

(b)A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—

(1)the payment rate determined under subsection (c) for the commodity; by

(2)the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 7931 of this title.

(c)(1)In the case of a loan commodity, the payment rate shall be the amount by which—

(A)the loan rate established under section 7932 of this title for the loan commodity; exceeds

(B)the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.

(2)In the case of unshorn pelts, the payment rate shall be the amount by which—

(A)the loan rate established under section 7932 of this title for ungraded wool; exceeds

(B)the rate at which a marketing assistance loan for ungraded wool may be repaid under section 7934 of this title.

(3)In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—

(A)the loan rate established under section 7932 of this title for the loan commodity from which the hay or silage is derived; exceeds

(B)the rate at which a marketing assistance loan for the loan commodity may be repaid under section 7934 of this title.

(d)This section shall not apply with respect to extra long staple cotton.

(e)The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.

(f)(1)For the 2002 crop of wool, mohair, honey, dry peas, lentils and small chickpeas, in the case of producers of such a crop that would be eligible for a loan deficiency payment under this section except for the fact that the producers lost beneficial interest in the crop prior to the date of publication of the regulations implementing this section, the producers shall be eligible for a loan deficiency payment as of the date producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary.

(2)

Editorial Notes

Codification Section is comprised of section 1205 of Pub. L. 107–171. Subsec. (f)(2) of section 1205 of Pub. L. 107–171 amended section 7235 of this title.

§7935 Loan Deficiency Payments

Summary

Title 7, §7935

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Editorial Notes

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