7 U.S.C. § 8735 — Loan deficiency payments

Page 2231 TITLE 7—AGRICULTURE § 8735 (h) Authority to temporarily adjust repayment rates (1) Adjustment authority In the event of a severe disruption to mar- keting, transportation, or related infrastruc- ture, the Secretary may modify the repay- ment rate otherwise applicable under this sec- tion for marketing assistance loans under sec- tion 8731 of this title for a loan commodity. (2) Duration 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 deter- mined by the Secretary. (Pub. L. 110–234, title I, § 1204, May 22, 2008, 122 Stat. 956; Pub. L. 110–246, § 4(a), title I, § 1204, June 18, 2008, 122 Stat. 1664, 1684.) Editorial Notes REFERENCES IN TEXT The date of enactment of this Act, referred to in sub- sec. (e)(2)(B), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008. 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 L. 110–234 was repealed by section 4(a) of Pub.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. § 8735. Loan deficiency payments (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, al- though eligible to obtain a marketing assist- ance loan under section 8731 of this title with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in re- turn 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. (B) Loan deficiency payment Effective for the 2008 through 2012 crop years, the Secretary may make loan defi- ciency payments available under this sec- tion 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 com- modity or commodity referred to in subsection (a)(2) shall be computed by multiplying— (1) the payment rate determined under sub- section (c) for the commodity; by (2) the quantity of the commodity produced by the eligible producers, excluding any quan- tity for which the producers obtain a mar- keting assistance loan under section 8731 of this title. (c) Payment rate (1) In general In the case of a loan commodity, the pay- ment rate shall be the amount by which— (A) the loan rate established under section 8732 of this title for the loan commodity; ex- ceeds (B) the rate at which a marketing assist- ance loan for the loan commodity may be re- paid under section 8734 of this title. (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 for ungraded wool; exceeds (B) the rate at which a marketing assist- ance loan for ungraded wool may be repaid under section 8734 of this title. (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 for the loan commodity from which the hay or silage is derived; ex- ceeds (B) the rate at which a marketing assist- ance loan for the loan commodity may be re- paid under section 8734 of this title. (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 determina- tion The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with re- spect to a quantity of a loan commodity or com- modity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment. (Pub. L. 110–234, title I, § 1205, May 22, 2008, 122 Stat. 958; Pub. L. 110–246, § 4(a), title I, § 1205, June 18, 2008, 122 Stat. 1664, 1686.) Editorial Notes 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. 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 without a payment yield for that loan commodity, an appropriate yield es- tablished by the Secretary in a manner consistent with section 7912 of this title. (2) Grazing of triticale acreage The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) 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 for wheat, as of the date of the agree- ment, for the county in which the farm is lo- cated; 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 triticale; and (ii) the payment yield in effect for the calculation of direct payments under sub- chapter I with respect to wheat on the farm or, in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 7912 of this title. (c) Time, manner, and availability of payment (1) Time and manner A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under sec- tion 8735 of this title. (2) Availability (A) In general The Secretary shall establish an avail- ability period for the payments authorized by this section. (B) Certain commodities In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this sub- chapter. (d) Prohibition on crop insurance indemnity or noninsured crop assistance A 2008 through 2012 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eli- gible for an indemnity under a policy or plan of insurance authorized under the Federal Crop In- surance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 7333 of this title. (Pub. L. 110–234, title I, § 1206, May 22, 2008, 122 Stat. 959; Pub. L. 110–246, § 4(a), title I, § 1206, June 18, 2008, 122 Stat. 1664, 1687.) Editorial Notes REFERENCES IN TEXT The Federal Crop Insurance Act, referred to in sub- sec. (d), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to sub- chapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see sec- tion 1501 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. § 8737. Special marketing loan provisions for up- land cotton (a) Special import quota (1) Definition of special import quota In this subsection, the term ‘‘special import quota’’ means a quantity of imports that is