7 U.S.C. § 8757 — Marketing assistance loans and loan defi-

Page 2240 TITLE 7—AGRICULTURE § 8756 (Pub. L. 110–234, title I, § 1305, May 22, 2008, 122 Stat. 972; Pub. L. 110–246, § 4(a), title I, § 1305, June 18, 2008, 122 Stat. 1664, 1701; Pub. L. 110–398, § 1(b)(2), Oct. 13, 2008, 122 Stat. 4213.) Editorial Notes REFERENCES IN TEXT Section 8715 of this title, referred to in subsecs. (a)(1) and (e), was repealed by Pub.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. (a)(1)(A), (B), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classi- fied 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 L. 110–234 was repealed by section 4(a) of Pub.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. AMENDMENTS 2008—Subsec. (f). Pub. L. 110–398 added subsec. (f). 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. § 8756. Planting flexibility (a) Permitted crops Subject to subsection (b), any commodity or crop may be planted on the base acres for pea- nuts on a farm. (b) Limitations regarding certain commodities (1) General limitation The planting of an agricultural commodity specified in paragraph (3) shall be prohibited on base acres for peanuts unless the com- modity, if planted, is destroyed before harvest. (2) Treatment of trees and other perennials The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohib- ited on base acres for peanuts. (3) Covered agricultural commodities Paragraphs (1) and (2) apply to the following agricultural commodities: (A) Fruits. (B) Vegetables (other than mung beans and pulse crops). (C) Wild rice. (c) Exceptions Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural com- modity specified in paragraph (3) of that sub- section— (1) in any region in which there is a history of double-cropping of peanuts with agricul- tural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be per- mitted; (2) on a farm that the Secretary determines has a history of planting agricultural com- modities specified in subsection (b)(3) on the base acres for peanuts, except that direct pay- ments and counter-cyclical payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or (3) by the producers on a farm that the Sec- retary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that— (A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and (B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural com- modity. (Pub. L. 110–234, title I, § 1306, May 22, 2008, 122 Stat. 973; Pub. L. 110–246, § 4(a), title I, § 1306, June 18, 2008, 122 Stat. 1664, 1702.) 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. § 8757. Marketing assistance loans and loan defi- ciency payments for peanuts (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 Sec- retary 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 sub- section for any quantity of peanuts produced on the farm. (4) Options for obtaining loan A marketing assistance loan under this sub- section, 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 Page 2241 TITLE 7—AGRICULTURE § 8757 1 See References in Text note below. (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 non- discriminatory basis; and (B) to comply with such additional re- quirements as the Secretary considers ap- propriate to accomplish the purposes of this section and promote fairness in the adminis- tration 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 Sec- retary shall pay handling and other associ- ated costs (other than storage costs) in- curred at the time at which the peanuts are placed under loan, as determined by the Sec- retary. (B) Redemption and forfeiture The Secretary shall— (i) require the repayment of handling and other associated costs paid under sub- paragraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and (ii) pay storage, handling, and other as- sociated costs for all peanuts pledged as collateral that are forfeited under this sec- tion. (7) Marketing A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that con- forms to consumer needs, including the sepa- ration of peanuts by type and quality. (b) Loan rate Except as provided in section 8715 1 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) the loan rate established for peanuts under subsection (b), plus interest (deter- mined in accordance with section 7283 of this title); or (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 mar- keting, transportation, or related infrastruc- ture, the Secretary may modify the repay- ment 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 as- sistance loans for peanuts shall be in effect on a short-term and temporary basis, as de- termined 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 pay- ments under this subsection. (2) Computation A loan deficiency payment under this sub- section 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 as- sistance 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 sub- section (b); exceeds (B) the rate at which a loan may be repaid under subsection (d). (4) Effective date for payment rate determina- tion 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 para- graph (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 pro- Page 2242 TITLE 7—AGRICULTURE § 8758 ducer 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 ad- ministrative expenses The Secretary may implement any reimburs- able 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. (Pub. L. 110–234, title I, § 1307, May 22, 2008, 122 Stat. 974; Pub. L. 110–246, § 4(a), title I, § 1307, June 18, 2008, 122 Stat. 1664, 1703.) 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. Sub- titles B and C of title XII of the Act are classified gen- erally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Conserva- tion. 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. § 8758. Adjustments of loans (a) Adjustment authority The Secretary may make appropriate adjust- ments in the loan rates for peanuts for dif- ferences in grade, type, quality, location, and other factors. (b) Manner of adjustment The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for peanuts will, on the basis of the anticipated in- cidence of the factors, be equal to the level of support determined in accordance with this sub- chapter and subtitles B, D, and E. (c) Adjustment on county basis (1) In general Subject to paragraph (2), the Secretary may establish loan rates for a crop of peanuts for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays. (2) Prohibition Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. (Pub. L. 110–234, title I, § 1308, May 22, 2008, 122 Stat. 977; Pub. L. 110–246, § 4(a), title I, § 1308, June 18, 2008, 122 Stat. 1664, 1705.) Editorial Notes REFERENCES IN TEXT Subtitles B, D, and E, referred to in subsec. (b), are subtitles B (§ 1201 et seq.), D (§ 1401 et seq.), and E (§ 1501 et seq.), respectively, of title I of Pub. L. 110–246, June 18, 2008, 122 Stat. 1681. Subtitle B is classified generally to subchapter II (§ 8731 et seq.) of this chapter. Subtitle D enacted sections 1359kk, 1359ll, and 7287 of this title, amended sections 1359aa to 1359gg, 1359ii, 7272, and 7971 of this title, repealed former section 1359kk of this title, and enacted provisions set out as notes under sec- tions 3602 and 7272 of this title. Subtitle E enacted sub- chapter IV (§ 8771 et seq.) of this chapter and amended sections 608c, 1637b, 4502, 4504, 4531, and 4553 of this title and section 713a–14 of Title 15, Commerce and Trade. For complete classification of subtitles B, D, and E to the Code, see 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. SUBCHAPTER IV—DAIRY § 8771. Repealed. Pub. L. 113–79, title I, § 1421, Feb. 7, 2014, 128 Stat. 694 Section, Pub. L. 110–234, title I, § 1501, May 22, 2008, 122 Stat. 990; Pub. L. 110–246, § 4(a), title I, § 1501, June 18, 2008, 122 Stat. 1664, 1718, related to the dairy product price support program. § 8772. Dairy forward pricing program (a) Program required The Secretary shall establish a program under which milk producers and cooperative associa- tions of producers are authorized to voluntarily enter into forward price contracts with milk handlers. (b) Minimum milk price requirements Payments made by milk handlers to milk pro- ducers and cooperative associations of pro- ducers, and prices received by milk producers and cooperative associations, in accordance with the terms of a forward price contract authorized by subsection (a), shall be treated as satis- fying— (1) all uniform and minimum milk price re- quirements of subparagraphs (B) and (F) of paragraph (5) of section 608c of this title; and (2) the total payment requirement of sub- paragraph (C) of that paragraph.