7 U.S.C. § 9040 — Adjustments of loans

Page 2281 TITLE 7—AGRICULTURE § 9040 cluding a licensed warehouse, feedlot, feed mill, distillery, or other similar entity ap- proved by the Secretary, pursuant to regu- lations issued by the Secretary; or (ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified com- mercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation; (C) certify that the producers on the farm were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on- farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture state; and (D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the Secretary. (3) Eligibility of acquired feed grains A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying— (A) the acreage of the corn or grain sor- ghum in a high moisture state harvested on the farm of the producer; by (B) the lower of— (i) the payment yield in effect for the calculation of price loss coverage under section 9015 of this title, or the payment yield deemed to be in effect or established under subclause (II) or (III) of section 9036(b)(1)(B)(ii) of this title, with respect to corn or grain sorghum on a field that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained; or (ii) the actual yield of corn or grain sor- ghum on a field, as determined by the Sec- retary, that is similar to the field from which the corn or grain sorghum referred to in subparagraph (A) was obtained. (b) Recourse loans available for seed cotton For each of the 2014 through 2023 crops of up- land cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production. (c) Recourse loans available for contaminated commodities In the case of a loan commodity that is ineli- gible for 100 percent of the nonrecourse mar- keting loan rate in the county due to a deter- mination that the commodity is contaminated yet still merchantable, for each of the 2019 through 2023 crops of such loan commodity, the Secretary shall make available recourse com- modity loans, at the rate provided under section 9032 of this title, on any production. (d) Repayment rates Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 7283 of this title). (Pub. L. 113–79, title I, § 1209, Feb. 7, 2014, 128 Stat. 685; Pub. L. 115–334, title I, § 1205, Dec. 20, 2018, 132 Stat. 4510.) 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 com- modity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under sec- tion 9001 of this title. AMENDMENTS 2018—Subsecs. (a)(2), (b). Pub. L. 115–334, § 1205(a), sub- stituted ‘‘2023’’ for ‘‘2018’’. Subsecs. (c), (d). Pub. L. 115–334, § 1205(b), added sub- sec. (c) and redesignated former subsec. (c) as (d). § 9040. Adjustments of loans (a) Adjustment authority Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences 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 the commodity will, on the basis of the antici- pated incidence of the factors, be equal to the level of support determined in accordance with this subchapter and subtitle C. (c) Adjustment on county basis (1) In general The Secretary may establish loan rates for a crop 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 in- crease in outlays. (2) Prohibition Adjustments under this subsection shall not result in an increase in the national average loan rate for any year. (d) Adjustment in loan rate for cotton (1) In general The Secretary may make appropriate ad- justments in the loan rate for cotton for dif- ferences in quality factors. (2) Types of adjustments Loan rate adjustments under paragraph (1) may include— (A) the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price in- formation used in determining quality ad- justments under this subsection; (B) adjustments in the premiums or dis- counts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any Page 2282 TITLE 7—AGRICULTURE § 9051 unnecessary artificial splits in the calcula- tions of the premiums or discounts; and (C) such other adjustments as the Sec- retary determines appropriate, after con- sultations conducted in accordance with paragraph (3). (3) Consultation with private sector (A) Prior to revision In making adjustments to the loan rate for cotton (including any review of the adjust- ments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry. (B) Inapplicability of chapter 10 of title 5 Chapter 10 of title 5 shall not apply to con- sultations under this subsection. (4) Review of adjustments The Secretary may review the operation of the upland cotton quality adjustments imple- mented pursuant to this subsection and may make further adjustments to the administra- tion of the loan program for upland cotton, by revoking or revising any adjustment taken under paragraph (2). (e) Rice The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields). (Pub. L. 113–79, title I, § 1210, Feb. 7, 2014, 128 Stat. 686; Pub. L. 117–286, § 4(a)(43), Dec. 27, 2022, 136 Stat. 4310.) Editorial Notes REFERENCES IN TEXT Subtitle C, referred to in subsec. (b), means subtitle C of title I of Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 687, which amended sections 1359bb, 1359ll, and 7272 of this title. AMENDMENTS 2022—Subsec. (d)(3)(B). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘Federal Advisory Com- mittee Act’’ in heading and ‘‘Chapter 10 of title 5’’ for ‘‘The Federal Advisory Committee Act (5 U.S.C. App.)’’ in text. SUBCHAPTER III—DAIRY PART A—DAIRY MARGIN COVERAGE Editorial Notes CODIFICATION Pub. L. 115–334, title I, § 1401(k)(1), Dec. 20, 2018, 132 Stat. 4516, substituted ‘‘Dairy Margin Coverage’’ for ‘‘Margin Protection Program for Dairy Producers’’ in part heading. § 9051. Definitions In this part: (1) Actual dairy production margin The term ‘‘actual dairy production margin’’ means the difference between the all-milk price and the average feed cost, as calculated under section 9052 of this title. (2) All-milk price The term ‘‘all-milk price’’ means the aver- age price received, per hundredweight of milk, by dairy operations for all milk sold to plants and dealers in the United States, as deter- mined by the Secretary. (3) Average feed cost The term ‘‘average feed cost’’ means the av- erage cost of feed used by a dairy operation to produce a hundredweight of milk, determined under section 9052 of this title using the sum of the following: (A) The product determined by multi- plying 1.0728 by the price of corn per bushel. (B) The product determined by multi- plying 0.00735 by the price of soybean meal per ton. (C) The product determined by multiplying 0.0137 by the price of alfalfa hay per ton. (4) Dairy operation (A) In general The term ‘‘dairy operation’’ means, as de- termined by the Secretary, 1 or more dairy producers that produce and market milk as a single dairy operation in which each dairy producer— (i) shares in the risk of producing milk; and (ii) makes contributions (including land, labor, management, equipment, or capital) to the dairy operation of the individual or entity, which are at least commensurate with the individual or entity’s share of the proceeds of the operation. (B) Additional ownership structures The Secretary shall determine additional ownership structures to be covered by the definition of dairy operation. (5) Dairy margin coverage The term ‘‘dairy margin coverage’’ means the dairy margin coverage program required by section 9053 of this title. (6) Dairy margin coverage payment The term ‘‘dairy margin coverage payment’’ means a payment made to a participating dairy operation under dairy margin coverage pursuant to section 9056 of this title. (7) Participating dairy operation The term ‘‘participating dairy operation’’ means a dairy operation that registers under section 9054 of this title to participate in dairy margin coverage. (8) Production history The term ‘‘production history’’ means the production history determined for a partici- pating dairy operation under subsection (a) or (b) of section 9055 of this title when the par- ticipating dairy operation first registers to participate in dairy margin coverage. (9) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture. (10) United States The term ‘‘United States’’, in a geographical sense, means the 50 States, the District of Co- lumbia, American Samoa, Guam, the Com- monwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, the Virgin