7 U.S.C. § 9035 — Loan deficiency payments

Page 2276 TITLE 7—AGRICULTURE § 9035 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 February 7, 2014, and end- ing on July 31, 2024, if the Secretary deter- mines the adjustment is necessary— (i) to minimize potential loan forfeit- ures; (ii) to minimize the accumulation of stocks of upland cotton by the Federal Government; (iii) to ensure that upland cotton pro- duced in the United States can be mar- keted freely and competitively, both do- mestically and internationally; and (iv) to ensure an appropriate transition between current-crop and forward-crop price quotations, except that the Sec- retary 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 9031 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 9032 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 Effective for each of the 2014 through 2023 crop years, the Secretary shall make cotton storage payments available in the same manner, and at the same rates as the Secretary provided stor- age payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent. (h) Repayment rate for peanuts The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under section 9031 of this title at a rate that is the lesser of— (1) the loan rate established for peanuts under subsection (a)(20) or (b)(20), as applica- ble, of section 9032 of this title, plus interest (determined in accordance with section 7283 of this title); or (2) a rate that the Secretary determines will— (A) minimize potential loan forfeitures; (B) minimize the accumulation of stocks of peanuts by the Federal Government; (C) minimize the cost incurred by the Fed- eral Government in storing peanuts; and (D) allow peanuts produced in the United States to be marketed freely and competi- tively, both domestically and internation- ally. (i) 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 9031 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. 113–79, title I, § 1204, Feb. 7, 2014, 128 Stat. 676; Pub. L. 115–334, title I, §§ 1201(b), 1202(b), Dec. 20, 2018, 132 Stat. 4509, 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—Subsec. (e)(2)(B). Pub. L. 115–334, § 1201(b)(1), substituted ‘‘2024’’ for ‘‘2019’’ in introductory provi- sions. Subsec. (g). Pub. L. 115–334, § 1201(b)(2), substituted ‘‘2023’’ for ‘‘2018’’. Subsec. (h)(1). Pub. L. 115–334, § 1202(b), substituted ‘‘subsection (a)(20) or (b)(20), as applicable, of section 9032’’ for ‘‘section 9032(a)(20)’’. § 9035. 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 9031 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. Page 2277 TITLE 7—AGRICULTURE § 9036 (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 9031 of this title. (B) Loan deficiency payment Effective for each of the 2014 through 2023 crop years, the Secretary may make loan de- ficiency 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 equal to the product obtained 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 9031 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 9032 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 9034 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 9032 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 9034 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 9032 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 9034 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. 113–79, title I, § 1205, Feb. 7, 2014, 128 Stat. 679; Pub. L. 115–334, title I, § 1201(c)(1), Dec. 20, 2018, 132 Stat. 4509.) 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—Subsec. (a)(2)(B). Pub. L. 115–334 substituted ‘‘2023’’ for ‘‘2018’’. § 9036. Payments in lieu of loan deficiency pay- ments for grazed acreage (a) Eligible producers (1) In general Effective for each of the 2014 through 2023 crop years, in the case of a producer that would be eligible for a loan deficiency pay- ment under section 9035 of this title for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage. (2) Grazing of triticale acreage Effective for each of the 2014 through 2023 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agree- ment with the Secretary to forgo any other harvesting of triticale on that acreage. (b) Payment amount (1) In general The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying— (A) the loan deficiency payment rate de- termined under section 9035(c) of this title in effect, as of the date of the agreement, for the county in which the farm is located; by (B) the payment quantity determined by multiplying— (i) the quantity of the grazed acreage on the farm with respect to which the pro- ducer elects to forgo harvesting of wheat, barley, or oats; and (ii)(I) the payment yield in effect for the calculation of price loss coverage under section 9015 of this title with respect to that loan commodity on the farm; (II) in the case of a farm for which agri- culture risk coverage is elected under sec- tion 9016(a) of this title, the payment yield that would otherwise be in effect with re- spect to that loan commodity on the farm in the absence of such election; or