Title 7 — AgricultureRelease 119-73not60

§7939 Availability of Recourse Loans for High Moisture Feed Grains and Seed Cotton

Title 7 › Chapter 106— COMMODITY PROGRAMS › Subchapter II— MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS › § 7939

Last updated Apr 3, 2026|Official source

Summary

Makes special recourse loans available for the 2002 through 2007 crops of corn and grain sorghum that are harvested with high moisture. To get a loan, a farmer must normally harvest part or all of the crop wet, show proof of the amount (either certified scale tickets from an approved commercial scale or field measurements where scales aren’t nearby), certify they owned and delivered the crop to an approved facility or on‑farm high‑moisture storage, and meet harvest and loan application deadlines set by the Secretary. The loan amount is acreage harvested wet times the lower of two yields: the farm program payment yield used for counter‑cyclical payments or an actual yield from a similar field as set by the Secretary. “High moisture” means moisture above Commodity Credit Corporation standards for marketing assistance loans under section 7931. For 2002 through 2007, the Secretary must also offer recourse seed‑cotton loans for upland and extra long staple cotton on any production. Loans must be repaid at the commodity loan rate plus interest as determined under section 7283. Loans under section 7237 will not be made for the 2002 crop of corn, grain sorghum, and seed cotton.

Full Legal Text

Title 7, §7939

Agriculture — Source: USLM XML via OLRC

(a)(1)For each of the 2002 through 2007 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm that—

(A)normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state;

(B)present—

(i)certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the Secretary, pursuant to regulations issued by the Secretary; or

(ii)field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;

(C)certify that they were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and

(D)comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary.

(2)A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying—

(A)the acreage of the corn or grain sorghum in a high moisture state harvested on the producer’s farm; by

(B)the lower of the farm program payment yield used to make counter-cyclical payments under subchapter I or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sorghum was obtained.

(3)In this subsection, the term “high moisture state” means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 7931 of this title.

(b)For each of the 2002 through 2007 crops of upland cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production.

(c)Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 7283 of this title).

(d)Notwithstanding section 7237 of this title, recourse loans shall not be made for the 2002 crop of corn, grain sorghum, and seed cotton under such section.

Reference

Citations & Metadata

Citation

7 U.S.C. § 7939

Title 7 — Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60