7 U.S.C. § 8757: Marketing assistance loans…

Summary

Producers can get nonrecourse marketing loans for peanuts grown on a farm for the 2008 through 2012 crops. The loan rate is $355 per ton. Any amount of peanuts on the farm can be covered. Producers may get loans or loan deficiency payments through an approved marketing association or the Farm Service Agency. People or companies that store loaned peanuts must store them fairly and follow extra rules the Secretary sets. When peanuts are placed under loan, the government will pay handling and related costs (not storage). If the loan is paid back, the producer must repay those handling costs; if the peanuts are forfeited, the government pays storage, handling, and related costs. Marketing groups may sell loaned peanuts by type and quality to meet buyer needs. Each loan lasts 9 months, starting the first day of the month after it is made, and it cannot be extended. Producers may repay the loan at the lower of the loan rate plus interest or a rate set by the Secretary to reduce forfeitures, government stockpiles, and storage costs and to keep peanuts competitive. The Secretary can temporarily change repayment rates during severe disruptions. If a producer skips the loan, they may get a loan deficiency payment equal to (loan rate minus the repayment rate) times the peanut quantity, using the payment rate in effect when they request it. Producers must follow conservation and wetland protections under subtitle B and C of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.; 16 U.S.C. 3821 et seq.) while the loan is in effect. The Secretary must handle reimbursable agreements and admin payments the same way as for other commodities.

Title 7, §8757

Agriculture, Source: USLM XML via OLRC

(a)Nonrecourse loans available

(1)Availability

For each of the 2008 through 2012 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm.

(2)Terms and conditions

The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).

(3)Eligible production

The producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.

(4)Options for obtaining loan

A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through—

(A)a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or

(B)the Farm Service Agency.

(5)Storage of loan peanuts

As a condition on the Secretary’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—

(A)to provide such storage on a nondiscriminatory basis; and

(B)to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.

(6)Storage, handling, and associated costs

(A)In general

Beginning with the 2008 crop of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.

(B)Redemption and forfeiture

The Secretary shall—

(i)require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and

(ii)pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section.

(7)Marketing

A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.

(b)Loan rate

Except as provided in section 8715 of this title, the loan rate for a marketing assistance loan for peanuts under subsection (a) shall be equal to $355 per ton.

(c)Term of loan

(1)In general

A marketing assistance loan for peanuts under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.

(2)Extensions prohibited

The Secretary may not extend the term of a marketing assistance loan for peanuts under subsection (a).

(d)Repayment rate

(1)In general

The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of— (A)

(B)a rate that the Secretary determines will—

(i)minimize potential loan forfeitures;

(ii)minimize the accumulation of stocks of peanuts by the Federal Government;

(iii)minimize the cost incurred by the Federal Government in storing peanuts; and

(iv)allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.

(2)Authority to temporarily adjust repayment rates

(A)Adjustment authority

In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this subsection for marketing assistance loans for peanuts under subsection (a).

(B)Duration

An adjustment made under subparagraph (A) in the repayment rate for marketing assistance loans for peanuts shall be in effect on a short-term and temporary basis, as determined by the Secretary.

(e)Loan deficiency payments

(1)Availability

The Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan for peanuts under subsection (a), agree to forgo obtaining the loan for the peanuts in return for loan deficiency payments under this subsection.

(2)Computation

A loan deficiency payment under this subsection shall be computed by multiplying—

(A)the payment rate determined under paragraph (3) for peanuts; by

(B)the quantity of the peanuts produced by the producers, excluding any quantity for which the producers obtain a marketing assistance loan under subsection (a).

(3)Payment rate

For purposes of this subsection, the payment rate shall be the amount by which—

(A)the loan rate established under subsection (b); exceeds

(B)the rate at which a loan may be repaid under subsection (d).

(4)Effective date for payment rate determination

The Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as of the date the producers request the payment.

(f)Compliance with conservation and wetlands requirements

As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) during the term of the loan.

(g)Reimbursable agreements and payment of administrative expenses

The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subchapter only in a manner that is consistent with such activities in regard to other commodities.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 8715 of this title, referred to in subsec. (b), was repealed by Pub. L. 113–79, title I, § 1103(a), Feb. 7, 2014, 128 Stat. 658. The Food Security Act of 1985, referred to in subsec. (f), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classified generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Conservation. For complete classification of this Act to the Code, see

Short Title

of 1985 Amendment note set out under section 1281 of this title and Tables. Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment 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 a note under section 8701 of this title.

§8757 Marketing Assistance Loans and Loan Deficiency Payments for Peanuts