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7 U.S.C. § 8737 — Loan deficiency payments
Federal law — U.S. Code and appendices · legal_authorities
**(a) Availability of loan deficiency payments**
(1) **In general** — Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim) with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
(2) **Unshorn pelts, hay, and silage**
(A) *Marketing assistance loans* — Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim).
(B) *Loan deficiency payment* — Effective for the 2008 through 2012 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
**(b) Computation** A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—
(1) the payment rate determined under subsection (c) for the commodity; by
(2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim).
**(c) Payment rate**
(1) **In general** — In the case of a loan commodity, the payment rate shall be th
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Source location: Title 7, Chapter 113, § 8737; chapter-113-agricultural-commodity-support-programs.md
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**(a) Availability of loan deficiency payments**
(1) **In general** — Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim) with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
(2) **Unshorn pelts, hay, and silage**
(A) *Marketing assistance loans* — Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim).
(B) *Loan deficiency payment* — Effective for the 2008 through 2012 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
**(b) Computation** A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying—
(1) the payment rate determined under subsection (c) for the commodity; by
(2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim).
**(c) Payment rate**
(1) **In general** — In the case of a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under [section 8732 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8732&num=0&edition=prelim) for the loan commodity; exceeds
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under [section 8734 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8734&num=0&edition=prelim).
(2) **Unshorn pelts** — In the case of unshorn pelts, the payment rate shall be the amount by which—
(A) the loan rate established under [section 8732 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8732&num=0&edition=prelim) for ungraded wool; exceeds
(B) the rate at which a marketing assistance loan for ungraded wool may be repaid under [section 8734 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8734&num=0&edition=prelim).
(3) **Hay and silage** — In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under [section 8732 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8732&num=0&edition=prelim) for the loan commodity from which the hay or silage is derived; exceeds
(B) the rate at which a marketing assistance loan for the loan commodity may be repaid under [section 8734 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8734&num=0&edition=prelim).
**(d) Exception for extra long staple cotton** This section shall not apply with respect to extra long staple cotton.
**(e) Effective date for payment rate determination** The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** In this section:
(1) **Agricultural commodity** — The term “agricultural commodity” has the meaning given the term in [section 5602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section5602&num=0&edition=prelim).
(2) **Geographically disadvantaged farmer or rancher** — The term “geographically disadvantaged farmer or rancher” has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 ([7 U.S.C. 2204](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2204&num=0&edition=prelim) note; Public Law 107–171).
**(b) Authorization** Subject to the availability of funds under subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).
**(c) Transportation**
(1) **In general** — Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) **Proof of eligibility** — To be eligible to receive assistance under paragraph (1), a geographically disadvantaged farmer or rancher shall demonstrate to the Secretary that transportation of the agricultural commodity or inputs occurred over a distance of more than 30 miles, as determined by the Secretary.
(3) **Amount**
(A) *In general* — Subject to paragraph (2), the amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under this section for a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically di
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 8701
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Federal law — U.S. Code and appendices · legal_authorities
**(a) 2008 crop year** For purposes of the 2008 crop year, the loan rate for a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim) for a loan commodity shall be equal to the following:
(1) In the case of wheat, $2.75 per bushel.
(2) In the case of corn, $1.95 per bushel.
(3) In the case of grain sorghum, $1.95 per bushel.
(4) In the case of barley, $1.85 per bushel.
(5) In the case of oats, $1.33 per bushel.
(6) In the case of base quality of upland cotton, $0.52 per pound.
(7) In the case of extra long staple cotton, $0.7977 per pound.
(8) In the case of long grain rice, $6.50 per hundredweight.
(9) In the case of medium grain rice, $6.50 per hundredweight.
(10) In the case of soybeans, $5.00 per bushel.
(11) In the case of other oilseeds, $9.30 per hundredweight for each of the following kinds of oilseeds:
(A) Sunflower seed.
(B) Rapeseed.
(C) Canola.
(D) Safflower.
(E) Flaxseed.
(F) Mustard seed.
(G) Crambe.
(H) Sesame seed.
(I) Other oilseeds designated by the Secretary.
(12) In the case of dry peas, $6.22 per hundredweight.
(13) In the case of lentils, $11.72 per hundredweight.
(14) In the case of small chickpeas, $7.43 per hundredweight.
(15) In the case of graded wool, $1.00 per pound.
(16) In the case of nongraded wool, $0.40 per pound.
(17) In the case of mohair, $4.20 per pound.
(18) In the case of honey, $0.60 per pound.
**(b) 2009 crop year** Except as provided in section 8715 11 See References in Text note below. of this title, for purposes of the 2009 crop year, the loan rate for a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 8734
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Calculation method** Subject to subsections (b) and (c), for the purposes of determining the amount of the counter-cyclical payments to be paid to the producers on a farm for long grain rice and medium grain rice under section 8714 11 See References in Text note below. of this title, the base acres of rice on the farm shall be apportioned using the 4-year average of the percentages of acreage planted in the applicable State to long grain rice and medium grain rice during the 2003 through 2006 crop years, as determined by the Secretary.
**(b) Producer election** As an alternative to the calculation method described in subsection (a), the Secretary shall provide producers on a farm the opportunity to elect to apportion rice base acres on the farm using the 4-year average of—
(1) the percentages of acreage planted on the farm to long grain rice and medium grain rice during the 2003 through 2006 crop years;
(2) the percentages of any acreage on the farm that the producers were prevented from planting to long grain rice and medium grain rice during the 2003 through 2006 crop years because of drought, flood, other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary; and
(3) in the case of a crop year for which a producer on a farm elected not to plant to long grain and medium grain rice during the 2003 through 2006 crop years, the percentages of acreage planted in the applicable State to long grain rice and medium grain rice, as determined by the Secretary.
**(c) Limitation** In carrying out this section, the Secretary shall use the same total base acres, payment acres, and payment yields established with respect to rice under sections 7911 and 7912 of this title, as in effect on September 30, 2007, subject to an
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Federal law — U.S. Code and appendices · legal_authorities
This subchapter shall be effective beginning with the 2008 crop year of each covered commodity through the 2012 crop year.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** The Secretary shall permit the producers on a farm to repay a marketing assistance loan under [section 8731 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8731&num=0&edition=prelim) for a loan commodity (other than upland cotton, long grain rice, medium grain rice, extra long staple cotton, 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 8732 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section8732&num=0&edition=prelim), plus interest (determined in accordance with [section 7283 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7283&num=0&edition=prelim));
(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) Repayment rates for upland cotton, lo
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Federal law — U.S. Code and appendices · legal_authorities
Page 2232
TITLE 7—AGRICULTURE
§ 8736
§ 8736. Payments in lieu of loan deficiency pay-
ments for grazed acreage
(a) Eligible producers
(1) In general
Effective for the 2008 through 2012 crop
years, in the case of a producer that would be
eligible for a loan deficiency payment under
section 8735 of this title for wheat, barley, or
oats, but that elects to use acreage planted to
the wheat, barley, or oats for the grazing of
livestock, the Secretary shall make a payment
to the producer under this section if the pro-
ducer enters into an agreement with the Sec-
retary to forgo any other harvesting of the
wheat, barley, or oats on that acreage.
(2) Grazing of triticale acreage
Effective for the 2008 through 2012 crop
years, with respect to a producer on a farm
that uses acreage planted to triticale for the
grazing of livestock, the Secretary shall make
a payment to the producer under this section
if the producer enters into an agreement with
the Secretary to forgo any other harvesting of
triticale on that acreage.
(b) Payment amount
(1) In general
The amount of a payment made under this
section to a producer on a farm described in
subsection (a)(1) shall be equal to the amount
determined by multiplying—
(A) the loan deficiency payment rate de-
termined under section 8735(c) of this title in
effect, as of the date of the agreement, for
the county in which the farm is located; by
(B) the payment quantity determined by
multiplying—
(i) the quantity of the grazed acreage on
the farm with respect to which the pro-
ducer elects to forgo harvesting of wheat,
barley, or oats; and
(ii) the payment yield in effect for the
calculation of direct payments under sub-
chapter I with respect to that loan com-
modity on the farm or, in the case of a
farm wit
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