§9031 — Title 7 Agriculture | U.S. Code

Summary

The Secretary of Agriculture must offer nonrecourse marketing assistance loans to farmers for the 2014 through 2031 crops of certain crops. "Loan commodity" means the specific crops listed by the law, including wheat, corn, grain sorghum, barley, oats, upland and extra-long-staple cotton, long and medium grain rice, peanuts, soybeans and other oilseeds, graded and nongraded wool, mohair, honey, dry peas, lentils, and small and large chickpeas. Loans are made under rules the Secretary sets and at the loan rate found in section 9032. Farmers on a farm can get loans for any amount of these crops they grow. To get a loan, the farmer must follow the farm conservation and wetland protection rules while the loan is in effect. For peanuts only, farmers may choose to get the loan or a loan deficiency payment through an approved marketing cooperative or through the Farm Service Agency. Anyone approved to store loaned peanuts must offer storage fairly and follow extra rules the Secretary sets. The government will pay handling and other costs (not storage) when peanuts go under loan, require repayment of those handling costs if the loan is redeemed, and pay storage and handling costs if the peanuts are forfeited. Approved cooperatives may market loaned peanuts by type and quality, and any reimbursable or admin payments must match how other loan commodities are handled.

Title 7, §9031

Agriculture — Source: USLM XML via OLRC

(a)In this subchapter, the term “loan commodity” means wheat, corn, grain sorghum, barley, oats, upland cotton, extra long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas.

(b)(1)For each of the 2014 through 2031 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commodities produced on the farm.

(2)The marketing assistance loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under section 9032 of this title for the loan commodity.

(c)The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm.

(d)As a condition of the receipt of a marketing assistance loan under subsection (b), 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.

(e)(1)This subsection shall apply only to producers of peanuts.

(2)A marketing assistance loan under this section, and loan deficiency payments under section 9035 of this title, 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.

(3)As a condition on the approval by the Secretary 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 the 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.

(4)(A)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)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.

(5)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.

(6)The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Food Security Act of 1985, referred to in subsec. (d), 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 Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of Pub. L. 113–79 applicable to the 2024 crop year for that loan commodity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

Amendments

2025—Subsec. (b)(1). Pub. L. 119–21 substituted “2031” for “2023”. 2018—Subsec. (b)(1). Pub. L. 115–334 substituted “2023” for “2018”.

§9031 Availability of Nonrecourse Marketing Assistance Loans for Loan Commodities