7 U.S.C. § 7234 — Repayment of loans

Page 1977 TITLE 7—AGRICULTURE § 7234 staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but (2) not more than $0.7965 per pound. (e) Rice The loan rate for a marketing assistance loan under section 7231 of this title for rice shall be $6.50 per hundredweight. (f) Oilseeds (1) Soybeans The loan rate for a marketing assistance loan under section 7231 of this title for soy- beans shall be— (A) not less than 85 percent of the simple average price received by producers of soy- beans, as determined by the Secretary, dur- ing the marketing years for the immediately preceding 5 crops of soybeans, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but (B) not less than $4.92 or more than $5.26 per bushel. (2) Sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed The loan rate for a marketing assistance loan under section 7231 of this title for sun- flower seed, canola, rapeseed, safflower, mus- tard seed, and flaxseed, individually, shall be— (A) not less than 85 percent of the simple average price received by producers of sun- flower seed, individually, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of sunflower seed, individually, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but (B) not less than $0.087 or more than $0.093 per pound. (3) Other oilseeds The loan rates for a marketing assistance loan under section 7231 of this title for other oilseeds shall be established at such level as the Secretary determines is fair and reason- able in relation to the loan rate available for soybeans, except in no event shall the rate for the oilseeds (other than cottonseed) be less than the rate established for soybeans on a per-pound basis for the same crop. (Pub. L. 104–127, title I, § 132, Apr. 4, 1996, 110 Stat. 905.) § 7233. Term of loans (a) Term of loan In the case of each loan commodity (other than upland cotton or extra long staple cotton), a marketing assistance loan under section 7231 of this title shall have a term of 9 months begin- ning on the first day of the first month after the month in which the loan is made. (b) Special rule for cotton A marketing assistance loan for upland cotton or extra long staple cotton shall have a term of 10 months beginning on the first day of the month in which the loan is made. (c) Extensions prohibited The Secretary may not extend the term of a marketing assistance loan for any loan com- modity. (Pub. L. 104–127, title I, § 133, Apr. 4, 1996, 110 Stat. 907.) § 7234. Repayment of loans (a) Repayment rates for wheat, feed grains, and oilseeds The Secretary shall permit a producer to repay a marketing assistance loan under section 7231 of this title for wheat, corn, grain sorghum, barley, oats, and oilseeds at a rate that is the lesser of— (1) the loan rate established for the com- modity under section 7232 of this title, plus in- terest (as determined by the Secretary); or (2) a rate 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; and (D) allow the commodity produced in the United States to be marketed freely and competitively, both domestically and inter- nationally. (b) Repayment rates for upland cotton and rice The Secretary shall permit producers to repay a marketing assistance loan under section 7231 of this title for upland cotton and rice at a rate that is the lesser of— (1) the loan rate established for the com- modity under section 7232 of this title, plus in- terest (as determined by the Secretary); or (2) the prevailing world market price for the commodity (adjusted to United States quality and location), as determined by the Secretary. (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 7232 of this title, plus interest (as determined by the Secretary). (d) Prevailing world market price For purposes of this section and section 7236 of this title, the Secretary shall prescribe by regu- lation— (1) a formula to determine the prevailing world market price for each loan commodity, adjusted to United States quality and loca- tion; and (2) a mechanism by which the Secretary shall announce periodically the prevailing world market price for each loan commodity. (e) Adjustment of prevailing world market price for upland cotton (1) In general During the period ending July 31, 2003, the prevailing world market price for upland cot- 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