7 U.S.C. § 7231 — Availability of nonrecourse marketing as-

Page 1975 TITLE 7—AGRICULTURE § 7231 tract in effect on the date of the foreclosure shall apply. (d) Review A determination of the Secretary under this section shall be considered to be an adverse deci- sion for purposes of the availability of adminis- trative review of the determination. (Pub. L. 104–127, title I, § 116, Apr. 4, 1996, 110 Stat. 903.) § 7217. Transfer or change of interest in lands subject to contract (a) Termination Except as provided in subsection (c), a transfer of (or change in) the interest of an owner or pro- ducer subject to a contract in the contract acre- age covered by the contract shall result in the termination of the contract with respect to the acreage, unless the transferee or owner of the acreage agrees to assume all obligations under the contract. The termination shall be effective on the date of the transfer or change. (b) Modification At the request of the transferee or owner, the Secretary may modify the contract if the modi- fications are consistent with the objectives of this subchapter, as determined by the Secretary. (c) Exception If an owner or producer who is entitled to a contract payment dies, becomes incompetent, or is otherwise unable to receive the contract pay- ment, the Secretary shall make the payment, in accordance with regulations prescribed by the Secretary. (Pub. L. 104–127, title I, § 117, Apr. 4, 1996, 110 Stat. 904.) § 7218. Planting flexibility (a) Permitted crops Subject to subsection (b), any commodity or crop may be planted on contract acreage on a farm. (b) Limitations and exceptions regarding fruits and vegetables (1) Limitations The planting of fruits and vegetables (other than lentils, mung beans, and dry peas) shall be prohibited on contract acreage. (2) Exceptions Paragraph (1) shall not limit the planting of a fruit or vegetable— (A) in any region in which there is a his- tory of double-cropping of contract commod- ities with fruits or vegetables, as determined by the Secretary, in which case the double- cropping shall be permitted; (B) on a farm that the Secretary deter- mines has a history of planting fruits or vegetables on contract acreage, except that a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable; or (C) by a producer who the Secretary deter- mines has an established planting history of a specific fruit or vegetable, except that— (i) the quantity planted may not exceed the producer’s average annual planting history of the fruit or vegetable in the 1991 through 1995 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and (ii) a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable. (Pub. L. 104–127, title I, § 118, Apr. 4, 1996, 110 Stat. 904.) Statutory Notes and Related Subsidiaries CONTRACT PAYMENTS FOR WILD RICE ACREAGE Pub. L. 106–78, title VII, § 727, Oct. 22, 1999, 113 Stat. 1164, provided that: ‘‘None of the funds appropriated or otherwise available to the Department of Agriculture in fiscal year 2000 or thereafter may be used to admin- ister the provision of contract payments to a producer under the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) for contract acreage on which wild rice is planted unless the contract payment is reduced by an acre for each contract acre planted to wild rice.’’ Similar provisions were contained in the following prior appropriations acts: Pub. L. 105–277, div. A, § 101(a) [title VII, § 727], Oct. 21, 1998, 112 Stat. 2681, 2681–28. Pub. L. 105–86, title VII, § 734, Nov. 18, 1997, 111 Stat. 2110. SUBCHAPTER III—NONRECOURSE MAR- KETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS § 7231. Availability of nonrecourse marketing as- sistance loans (a) Nonrecourse loans available For each of the 1996 through 2002 crops of each loan commodity, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for loan commod- ities produced on the farm. The loans shall be made under terms and conditions that are pre- scribed by the Secretary and at the loan rate es- tablished under section 7232 of this title for the loan commodity. (b) Eligible production The following production shall be eligible for a marketing assistance loan under subsection (a): (1) In the case of a marketing assistance loan for a contract commodity, any produc- tion by a producer on a farm containing eligi- ble cropland covered by a production flexi- bility contract. (2) In the case of a marketing assistance loan for extra long staple cotton and oilseeds, any production. (c) Compliance with conservation and wetlands requirements As a condition of the receipt of a marketing assistance loan under subsection (a), the pro- ducer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) during the term of the loan. (d) Additional outlays prohibited The Secretary shall carry out this subchapter in such a manner that there are no additional Page 1976 TITLE 7—AGRICULTURE § 7232 outlays under this subchapter as a result of the reconstitution of a farm that occurs as a result of the combination of another farm that does not contain eligible cropland covered by a pro- duction flexibility contract. (Pub. L. 104–127, title I, § 131, Apr. 4, 1996, 110 Stat. 905.) Editorial Notes REFERENCES IN TEXT The Food Security Act of 1985, referred to in subsec. (c), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Sub- titles B and C of title XII of the Act are classified gen- erally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Conserva- tion. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables. § 7232. Loan rates for marketing assistance loans (a) Wheat (1) Loan rate Subject to paragraph (2), the loan rate for a marketing assistance loan under section 7231 of this title for wheat shall be— (A) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, dur- ing the marketing years for the immediately preceding 5 crops of wheat, 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 more than $2.58 per bushel. (2) Stocks to use ratio adjustment If the Secretary estimates for any mar- keting year that the ratio of ending stocks of wheat to total use for the marketing year will be— (A) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year; (B) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or (C) less than 15 percent, the Secretary may not reduce the loan rate for wheat for the corresponding crop. (b) Feed grains (1) Loan rate for corn Subject to paragraph (2), the loan rate for a marketing assistance loan under section 7231 of this title for corn shall be— (A) not less than 85 percent of the simple average price received by producers of corn, as determined by the Secretary, during the marketing years for the immediately pre- ceding 5 crops of corn, 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 more than $1.89 per bushel. (2) Stocks to use ratio adjustment If the Secretary estimates for any mar- keting year that the ratio of ending stocks of corn to total use for the marketing year will be— (A) equal to or greater than 25 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 10 percent in any year; (B) less than 25 percent but not less than 12.5 percent, the Secretary may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 5 percent in any year; or (C) less than 12.5 percent, the Secretary may not reduce the loan rate for corn for the corresponding crop. (3) Other feed grains The loan rate for a marketing assistance loan under section 7231 of this title for grain sorghum, barley, and oats, respectively, shall be established at such level as the Secretary determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn. (c) Upland cotton (1) Loan rate Subject to paragraph (2), the loan rate for a marketing assistance loan under section 7231 of this title for upland cotton shall be estab- lished by the Secretary at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the Sec- retary, at average locations in the United States a rate that is not less than the smaller of— (A) 85 percent of the average price (weight- ed by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5- year period ending July 31 of the year pre- ceding 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 pe- riod; or (B) 90 percent of the average, for the 15- week period beginning July 1 of the year preceding the year in which the crop is planted, of the 5 lowest-priced growths of the growths quoted for Middling 13⁄32-inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year pre- ceding the year in which the crop is planted between the average Northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for the base quality of upland cotton), as determined by the Secretary. (2) Limitations The loan rate for a marketing assistance loan for upland cotton shall not be less than $0.50 per pound or more than $0.5192 per pound. (d) Extra long staple cotton The loan rate for a marketing assistance loan under section 7231 of this title for extra long sta- ple cotton shall be— (1) not less than 85 percent of the simple av- erage price received by producers of extra long