7 U.S.C. § 8734 — Repayment of loans

Page 2229 TITLE 7—AGRICULTURE § 8734 (E) Flaxseed. (F) Mustard seed. (G) Crambe. (H) Sesame seed. (I) Other oilseeds designated by the Sec- retary. (12) In the case of dry peas, $5.40 per hun- dredweight. (13) In the case of lentils, $11.28 per hundred- weight. (14) In the case of small chickpeas, $7.43 per hundredweight. (15) In the case of large chickpeas, $11.28 per hundredweight. (16) In the case of graded wool, $1.00 per pound. (17) In the case of nongraded wool, $0.40 per pound. (18) In the case of mohair, $4.20 per pound. (19) In the case of honey, $0.60 per pound. (c) 2010 through 2012 crop years Except as provided in section 8715 1 of this title, for purposes of each of the 2010 through 2012 crop years, the loan rate for a marketing as- sistance loan under section 8731 of this title for a loan commodity shall be equal to the fol- lowing: (1) In the case of wheat, $2.94 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, $1.95 per bushel. (5) In the case of oats, $1.39 per bushel. (6) In the case of base quality of upland cot- ton, $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, $10.09 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 Sec- retary. (12) In the case of dry peas, $5.40 per hun- dredweight. (13) In the case of lentils, $11.28 per hundred- weight. (14) In the case of small chickpeas, $7.43 per hundredweight. (15) In the case of large chickpeas, $11.28 per hundredweight. (16) In the case of graded wool, $1.15 per pound. (17) In the case of nongraded wool, $0.40 per pound. (18) In the case of mohair, $4.20 per pound. (19) In the case of honey, $0.69 per pound. (d) Single county loan rate for other oilseeds The Secretary shall establish a single loan rate in each county for each kind of other oil- seeds described in subsections (a)(11), (b)(11), and (c)(11). (Pub. L. 110–234, title I, § 1202, May 22, 2008, 122 Stat. 954; Pub. L. 110–246, § 4(a), title I, § 1202, June 18, 2008, 122 Stat. 1664, 1682.) Editorial Notes REFERENCES IN TEXT Section 8715 of this title, referred to in subsecs. (b) and (c), was repealed by Pub. L. 113–79, title I, § 1103(a), Feb. 7, 2014, 128 Stat. 658. 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. § 8733. Term of loans (a) Term of loan In the case of each loan commodity, a mar- keting assistance loan under section 8731 of this title 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. (b) Extensions prohibited The Secretary may not extend the term of a marketing assistance loan for any loan com- modity. (Pub. L. 110–234, title I, § 1203, May 22, 2008, 122 Stat. 956; Pub. L. 110–246, § 4(a), title I, § 1203, June 18, 2008, 122 Stat. 1664, 1684.) 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. § 8734. Repayment of loans (a) General rule The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 8731 of this title for a loan commodity (other than upland cotton, long grain rice, me- dium 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— Page 2230 TITLE 7—AGRICULTURE § 8734 (1) the loan rate established for the com- modity under section 8732 of this title, plus in- terest (determined in accordance with section 7283 of this title); (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 mar- keting loan benefits across State boundaries and across county boundaries; or (3) a rate that the Secretary may develop using alternative methods for calculating a re- payment 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 Govern- ment; (C) minimize the cost incurred by the Fed- eral Government in storing the commodity; (D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and inter- nationally; and (E) minimize discrepancies in marketing loan benefits across State boundaries and across county boundaries. (b) Repayment rates for upland cotton, long grain rice, and medium grain rice The Secretary shall permit producers to repay a marketing assistance loan under section 8731 of this title for upland cotton, long grain rice, and medium grain rice at a rate that is the less- er of— (1) the loan rate established for the com- modity under section 8732 of this title, plus in- terest (determined in accordance with section 7283 of this title); or (2) the prevailing world market price for the commodity, as determined and adjusted by the Secretary in accordance with this section. (c) Repayment rates for extra long staple cotton Repayment of a marketing assistance loan for extra long staple cotton shall be at the loan rate established for the commodity under section 8732 of this title, plus interest (determined in ac- cordance with section 7283 of this title). (d) Prevailing world market price For purposes of this section and section 8737 of this title, the Secretary shall prescribe by regu- lation— (1) a formula to determine the prevailing world market price for each of upland cotton, long grain rice, and medium grain rice; and (2) a mechanism by which the Secretary shall announce periodically those prevailing world market prices. (e) Adjustment of prevailing world market price for upland cotton, long grain rice, and me- dium grain rice (1) Rice The prevailing world market price for long grain rice and medium grain rice determined under subsection (d) shall be adjusted to United States quality and location. (2) Cotton The prevailing world market price for up- land cotton determined under subsection (d)— (A) shall be adjusted to United States quality and location, with the adjustment to include— (i) a reduction equal to any United States Premium Factor for upland cotton of a quality higher than Middling (M) 13⁄32- inch; and (ii) the average costs to market the com- modity, including average transportation costs, as determined by the Secretary; and (B) may be further adjusted, during the pe- riod beginning on the date of enactment of this Act and ending on July 31, 2013, if the Secretary determines the adjustment is nec- essary to— (i) minimize potential loan forfeitures; (ii) minimize the accumulation of stocks of upland cotton by the Federal Govern- ment; (iii) ensure that upland cotton produced in the United States can be marketed free- ly and competitively, both domestically and internationally; and (iv) ensure an appropriate transition be- tween current-crop and forward-crop price quotations, except that the Secretary may use forward-crop price quotations prior to July 31 of a marketing year only if— (I) there are insufficient current-crop price quotations; and (II) the forward-crop price quotation is the lowest such quotation available. (3) Guidelines for additional adjustments In making adjustments under this sub- section, the Secretary shall establish a mecha- nism for determining and announcing the ad- justments in order to avoid undue disruption in the United States market. (f) Repayment rates for confectionery and other kinds of sunflower seeds The Secretary shall permit the producers on a farm to repay a marketing assistance loan under section 8731 of this title for 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 com- modity under section 8732 of this title, plus in- terest (determined in accordance with section 7283 of this title); or (2) the repayment rate established for oil sunflower seed. (g) Payment of cotton storage costs (1) 2008 through 2011 crop years Effective for each of the 2008 through 2011 crop years, the Secretary shall provide cotton storage payments in the same manner, and at the same rates as the Secretary provided stor- age payments for the 2006 crop of cotton, ex- cept that the rates shall be reduced by 10 per- cent. (2) Subsequent crop years Beginning with the 2012 crop year, the Sec- retary shall provide cotton storage payments in the same manner, and at the same rates as the Secretary provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 20 percent. 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.