7 U.S.C. § 7235 — Loan deficiency payments

Page 1978 TITLE 7—AGRICULTURE § 7235 ton (adjusted to United States quality and lo- cation) established under subsection (d) shall be further adjusted if— (A) the adjusted prevailing world market price is less than 115 percent of the loan rate for upland cotton established under section 7232 of this title, as determined by the Sec- retary; and (B) the Friday through Thursday average price quotation for the lowest-priced United States growth as quoted for Middling (M) 13⁄32-inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest- priced growths of upland cotton, as quoted for Middling (M) 13⁄32-inch cotton, delivered C.I.F. Northern Europe (referred to in this section as the ‘‘Northern Europe price’’). (2) Further adjustment Except as provided in paragraph (3), the ad- justed prevailing world market price for up- land cotton shall be further adjusted on the basis of some or all of the following data, as available: (A) The United States share of world ex- ports. (B) The current level of cotton export sales and cotton export shipments. (C) Other data determined by the Sec- retary to be relevant in establishing an ac- curate prevailing world market price for up- land cotton (adjusted to United States qual- ity and location). (3) Limitation on further adjustment The adjustment under paragraph (2) may not exceed the difference between— (A) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 13⁄32-inch cot- ton delivered C.I.F. Northern Europe; and (B) the Northern Europe price. (Pub. L. 104–127, title I, § 134, Apr. 4, 1996, 110 Stat. 908.) § 7235. Loan deficiency payments (a) Availability of loan deficiency payments Except as provided in subsection (d), the Sec- retary may make loan deficiency payments available to— (1) producers who, although eligible to ob- tain a marketing assistance loan under sec- tion 7231 of this title with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for payments under this section; and (2) effective only for the 2000 and 2001 crop years, producers that, although not eligible to obtain such a marketing assistance loan under section 7231 of this title, produce a contract commodity. (b) Computation A loan deficiency payment under this section shall be computed by multiplying— (1) the loan payment rate determined under subsection (c) for the loan commodity; by (2) the quantity of the loan commodity pro- duced by the eligible producers, excluding any quantity for which the producers obtain a loan under section 7231 of this title. (c) Loan payment rate For purposes of this section, the loan payment rate shall be the amount by which— (1) the loan rate established under section 7232 of this title for the loan commodity; ex- ceeds (2) the rate at which a loan for the com- modity may be repaid under section 7234 of this title. (d) Exception for extra long staple cotton This section shall not apply with respect to extra long staple cotton. (e) Transition A payment to a producer eligible for a pay- ment under subsection (a)(2) that harvested a commodity on or before the date that is 30 days after the promulgation of the regulations imple- menting subsection (a)(2) shall be determined as the date the producer lost beneficial interest in the commodity, as determined by the Secretary. (f) Beneficial interest Subject to subsection (e), a producer shall be eligible for a payment under this section only if the producer has a beneficial interest in the commodity, as determined by the Secretary. (g) Effective date for payment rate determina- tion For the 2001 crop year, the Secretary shall de- termine the amount of the loan deficiency pay- ment to be made under this section to the pro- ducers on a farm with respect to a quantity of a loan commodity using the payment rate in ef- fect under subsection (c) as of the earlier of the following: (1) The date on which the producers mar- keted or otherwise lost beneficial interest in the crop of the loan commodity, as determined by the Secretary. (2) The date the producers requested the payment. (Pub. L. 104–127, title I, § 135, Apr. 4, 1996, 110 Stat. 909; Pub. L. 106–224, title II, § 206, June 20, 2000, 114 Stat. 405; Pub. L. 107–171, title I, § 1205(f)(2), May 13, 2002, 116 Stat. 159.) Editorial Notes AMENDMENTS 2002—Subsec. (a)(2). Pub. L. 107–171, § 1205(f)(2)(A), sub- stituted ‘‘2000 and 2001 crop years’’ for ‘‘2000 crop year’’. Subsec. (g). Pub. L. 107–171, § 1205(f)(2)(B), added sub- sec. (g). 2000—Subsec. (a). Pub. L. 106–224, § 206(a), designated existing provisions as par. (1) and added par. (2). Subsec. (b)(2). Pub. L. 106–224, § 206(b), substituted ‘‘produced by the eligible producers, excluding any quantity for which the producers obtain a loan under section 7231 of this title.’’ for ‘‘that the producers on a farm are eligible to place under loan but for which the producers forgo obtaining the loan in return for pay- ments under this section.’’ Subsecs. (e), (f). Pub. L. 106–224, § 206(c), added sub- secs. (e) and (f). § 7236. Special marketing loan provisions for up- land cotton (a) Cotton user marketing certificates (1) Issuance During the period ending July 31, 2003, the Secretary shall issue marketing certificates or