Title 7 — AgricultureRelease 119-73not60

§7938 Special Competitive Provisions for Extra Long Staple Cotton

Title 7 › Chapter 106— COMMODITY PROGRAMS › Subchapter II— MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS › § 7938

Last updated Apr 3, 2026|Official source

Summary

From May 13, 2002, through July 31, 2008, the Secretary must run a program to keep and grow U.S. extra long staple (ELS) cotton use, increase ELS exports, and help U.S. ELS cotton stay competitive in world markets. The program pays U.S. ELS cotton users and exporters who sign an agreement with the Commodity Credit Corporation when two tests are met: for a consecutive 4-week period the adjusted world price for the cheapest competing ELS is below the prevailing U.S. price, and that adjusted world price is less than 134 percent of the ELS loan rate. Payments equal the price gap in the fourth week multiplied by documented purchases or export sales made in the week after that 4-week period. Recipients may choose cash or marketing certificates.

Full Legal Text

Title 7, §7938

Agriculture — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, during the period beginning on May 13, 2002, through July 31, 2008, the Secretary shall carry out a program—

(1)to maintain and expand the domestic use of extra long staple cotton produced in the United States;

(2)to increase exports of extra long staple cotton produced in the United States; and

(3)to ensure that extra long staple cotton produced in the United States remains competitive in world markets.

(b)Under the program, the Secretary shall make payments available under this section whenever—

(1)for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cotton; and

(2)the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton.

(c)The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton produced in the United States that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.

(d)Payments under this section shall be based on the amount of the difference in the prices referred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.

(e)Payments under this section shall be made through the issuance of cash or marketing certificates, at the option of eligible recipients of the payments.

Reference

Citations & Metadata

Citation

7 U.S.C. § 7938

Title 7 — Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60