§9034 — Title 7 Agriculture | U.S. Code

Summary

Producers may repay a marketing assistance loan at the lowest of a few different rates. For most commodities (excluding upland cotton, long- and medium-grain rice, extra long staple cotton, peanuts, confectionery sunflower seed, and non‑oil sunflower seed), the repayment rate must be the smallest of: the loan rate plus interest; a rate based on the average market price over the past 30 days meant to reduce differences across States and counties; or a rate the Secretary creates by other methods that aims to cut loan forfeitures, lower government stockpiles and storage costs, keep U.S. crops competitively marketable, and reduce State and county payment differences. For upland cotton and long- and medium-grain rice, repayment must be the lower of the loan rate plus interest or the prevailing world market price as set by the Secretary. If an upland cotton loan is repaid at that world price rate, the Secretary must refund the producer any difference between the lowest prevailing world price during the 30 days after repayment and the rate the producer paid. Extra long staple cotton follows the same lower-of loan-rate-or-world-price rule. The Secretary must create formulas and public announcements for world prices, adjust those prices to U.S. quality and location (with specific adjustment rules and temporary adjustment authority for certain years), treat confectionery and non‑oil sunflower seed like oil sunflower seed for repayment, provide cotton storage payments on specified terms for 2014–2025 and 2026–2031 with exact dollar limits ($4.90 for CA/AZ, $3.00 for other States), set peanut repayment rates to minimize forfeitures and costs, and may make short-term repayment changes during severe marketing or transportation disruptions.

Title 7, §9034

Agriculture — Source: USLM XML via OLRC

(a)The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 9031 of this title for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, peanuts and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—

(1)the loan rate established for the commodity under section 9032 of this title, plus interest (determined in accordance with section 7283 of this title);

(2)a rate (as determined by the Secretary) that—

(A)is calculated based on average market prices for the loan commodity during the preceding 30-day period; and

(B)will minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries; or

(3)a rate that the Secretary may develop using alternative methods for calculating a repayment rate for a loan commodity that the Secretary determines will—

(A)minimize potential loan forfeitures;

(B)minimize the accumulation of stocks of the commodity by the Federal Government;

(C)minimize the cost incurred by the Federal Government in storing the commodity;

(D)allow the commodity produced in the United States to be marketed freely and competitively, both domestically and internationally; and

(E)minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries.

(b)(1)The Secretary shall permit producers to repay a marketing assistance loan under section 9031 of this title for upland cotton, long grain rice, and medium grain rice at a rate that is the lesser of—

(A)the loan rate established for the commodity under section 9032 of this title, plus interest (determined in accordance with section 7283 of this title); or

(B)(i)in the case of long grain rice and medium grain rice, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section; or

(ii)in the case of upland cotton, the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.

(2)In the case of a repayment for a marketing assistance loan for upland cotton at a rate described in paragraph (1)(B)(ii), the Secretary shall provide to the producer a refund (if any) in an amount equal to the difference between the lowest prevailing world market price, as determined and adjusted by the Secretary in accordance with this section, during the 30-day period following the date on which the producer repays the marketing assistance loan and the repayment rate.

(c)Repayment of a marketing assistance loan for extra long staple cotton shall be at a rate that is the lesser of—

(1)the loan rate established for the commodity under section 9032 of this title, plus interest (determined in accordance with section 7283 of this title); and

(2)the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.

(d)(1)For purposes of this section and section 9037 of this title, the Secretary shall prescribe by regulation—

(A)a formula to determine the prevailing world market price for each of upland cotton, long grain rice, medium grain rice, and extra long staple cotton; and

(B)a mechanism by which the Secretary shall announce periodically those prevailing world market prices.

(2)In the case of upland cotton, for any period when price quotations for Middling (M) 13⁄32-inch cotton are available, the formula under paragraph (1)(A) shall be based on the average of the 3 lowest-priced growths that are quoted.

(e)(1)The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location.

(2)The prevailing world market price for upland cotton determined under subsection (d)—

(A)shall be adjusted to United States quality and location, with the adjustment to include—

(i)a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 13⁄32-inch; and

(ii)the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and

(B)may be further adjusted, during the period beginning on February 7, 2014, and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—

(i)to minimize potential loan forfeitures;

(ii)to minimize the accumulation of stocks of upland cotton by the Federal Government;

(iii)to ensure that upland cotton produced in the United States can be marketed freely and competitively, both domestically and internationally; and

(iv)to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if—

(I)there are insufficient current-crop price quotations; and

(II)the forward-crop price quotation is the lowest such quotation available.

(3)The prevailing world market price for extra long staple cotton determined under subsection (d)—

(A)shall be adjusted to United States quality and location, with the adjustment to include the average costs to market the commodity, including average transportation costs, as determined by the Secretary; and

(B)may be further adjusted, during the period beginning on July 4, 2025, and ending on July 31, 2032, if the Secretary determines the adjustment is necessary—

(i)to minimize potential loan forfeitures;

(ii)to minimize the accumulation of stocks of extra long staple cotton by the Federal Government;

(iii)to ensure that extra long staple cotton produced in the United States can be marketed freely and competitively; and

(I)there are insufficient current-crop price quotations; and

(II)the forward-crop price quotation is the lowest such quotation available.

(4)In making adjustments under this subsection, the Secretary shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the United States market.

(f)The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 9031 of this title for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—

(1)the loan rate established for the commodity under section 9032 of this title, plus interest (determined in accordance with section 7283 of this title); or

(2)the repayment rate established for oil sunflower seed.

(g)(1)Effective for each of the 2014 through 2025 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent.

(2)Effective for each of the 2026 through 2031 crop years, the Secretary shall make cotton storage payments for upland cotton and extra long staple cotton available in the same manner as the Secretary provided storage payments for the 2006 crop of upland cotton, except that the payment rate shall be equal to the lesser of—

(A)the submitted storage charge for the current marketing year; and

(B)in the case of storage in—

(i)California or Arizona, a payment rate of $4.90; and

(ii)any other State, a payment rate of $3.00.

(h)The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under section 9031 of this title at a rate that is the lesser of—

(1)the loan rate established for peanuts under subsection (a)(20) or (b)(20), as applicable, of section 9032 of this title, plus interest (determined in accordance with section 7283 of this title); or

(2)a rate that the Secretary determines will—

(A)minimize potential loan forfeitures;

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

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

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

(i)(1)In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this section for marketing assistance loans under section 9031 of this title for a loan commodity.

(2)Any adjustment made under paragraph (1) in the repayment rate for marketing assistance loans for a loan commodity shall be in effect on a short-term and temporary basis, as determined by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

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). Pub. L. 119–21, § 10310(1), designated introductory provisions as par. (1) and inserted heading, redesignated former par. (1) as subpar. (A) of par. (1) and realigned margins, added subpar. (B) of par. (1) and par. (2), and struck out former par. (2) which read as follows: “the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section.” Subsec. (c). Pub. L. 119–21, § 10310(2), substituted “shall be at a rate that is the lesser of—” for “shall be at”, inserted par. (1) designation before “the loan rate”, and added par. (2). Subsec. (d). Pub. L. 119–21, § 10310(3), designated introductory provisions as par. (1) and inserted heading, redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, of par. (1) and realigned margins, substituted “medium grain rice, and extra long staple cotton” for “and medium grain rice” in subpar. (A), and added par. (2). Subsec. (e). Pub. L. 119–21, § 10310(4)(A), inserted “extra long staple cotton,” after “upland cotton,” in heading. Subsec. (e)(2). Pub. L. 119–21, § 10310(4)(B)(i), inserted “Upland” before “cotton” in heading. Subsec. (e)(2)(B). Pub. L. 119–21, § 10310(4)(B)(ii), substituted “2032” for “2024” in introductory provisions. Subsec. (e)(3), (4). Pub. L. 119–21, § 10310(4)(C), (D), added par. (3) and redesignated former par. (3) as (4). Subsec. (g). Pub. L. 119–21, § 10309(c), designated existing provisions as par. (1), inserted heading, and substituted “2025” for “2023”, and added par. (2). 2018—Subsec. (e)(2)(B). Pub. L. 115–334, § 1201(b)(1), substituted “2024” for “2019” in introductory provisions. Subsec. (g). Pub. L. 115–334, § 1201(b)(2), substituted “2023” for “2018”. Subsec. (h)(1). Pub. L. 115–334, § 1202(b), substituted “subsection (a)(20) or (b)(20), as applicable, of section 9032” for “section 9032(a)(20)”.

§9034 Repayment of Loans

Summary

Title 7, §9034

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata