7 U.S.C. § 7237 — Availability of recourse loans for high

Page 1981 TITLE 7—AGRICULTURE § 7237 Subsec. (b)(1). Pub. L. 106–78, § 806(b)(1), added par. (1) and struck out heading and text of former par. (1). Text read as follows: ‘‘The President shall carry out an im- port quota program that provides that, during the pe- riod ending July 31, 2003, whenever the Secretary deter- mines and announces that for any consecutive 10-week period, 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, adjusted for the value of any certificates issued under subsection (a) of this section, exceeds the Northern Europe price by more than 3 cents per pound, there shall immediately be in effect a special import quota.’’ Subsec. (b)(7). Pub. L. 106–78, § 806(b)(2), added par. (7). 1998—Subsecs. (a)(1)(A), (2), (b)(1). Pub. L. 105–277 sub- stituted ‘‘3 cents’’ for ‘‘1.25 cents’’. 1997—Subsec. (a)(1). Pub. L. 105–86, § 731(1), in intro- ductory provisions substituted ‘‘During’’ for ‘‘Subject to paragraph (4), during’’ and in subpar. (B) substituted ‘‘134’’ for ‘‘130’’. Subsec. (a)(4), (5). Pub. L. 105–86, § 731(2), (3) redesig- nated par. (5) as (4) and struck out heading and text of former par. (4). Text read as follows: ‘‘The Secretary shall not issue marketing certificates or cash payments under paragraph (1) if, for the immediately preceding consecutive 10-week period, the Friday through Thurs- day 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, adjusted for the value of any certificate issued under this sub- section, exceeds the Northern Europe price by more than 1.25 cents per pound.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–86, title VII, § 731, Nov. 18, 1997, 111 Stat. 2108, provided that the amendment made by that sec- tion is effective on Oct. 1, 1998. § 7236a. Special competitive provisions for extra long staple cotton (a) Competitiveness program Notwithstanding any other provision of law, during the period beginning on October 1, 1999, and ending on July 31, 2003, the Secretary shall carry out a program to maintain and expand the domestic use of extra long staple cotton pro- duced in the United States, to increase exports of extra long staple cotton produced in the United States, and to ensure that extra long sta- ple cotton produced in the United States re- mains competitive in world markets. (b) Payments under program; trigger Under the program, the Secretary shall make payments available under this section when- ever— (1) for a consecutive 4-week period, the world market price for the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other factors affecting the competitiveness of such cotton), as determined by the Secretary, is below the prevailing United States price for a competing growth of extra long staple cot- ton; and (2) the lowest priced competing growth of extra long staple cotton (adjusted to United States quality and location and for other fac- tors affecting the competitiveness of such cot- ton), as determined by the Secretary, is less than 134 percent of the loan rate for extra long staple cotton. (c) Eligible recipients The Secretary shall make payments available under this section to domestic users of extra long staple cotton produced in the United States and exporters of extra long staple cotton pro- duced in the United States who enter into an agreement with the Commodity Credit Corpora- tion to participate in the program under this section. (d) Payment amount Payments under this section shall be based on the amount of the difference in the prices re- ferred to in subsection (b)(1) during the fourth week of the consecutive 4-week period multi- plied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period. (e) Form of payment Payments under this section shall be made through the issuance of cash or marketing cer- tificates, at the option of eligible recipients of the payments. (Pub. L. 104–127, title I, § 136A, as added Pub. L. 106–113, div. B, § 1000(a)(5) [title I, § 104(c)], Nov. 29, 1999, 113 Stat. 1536, 1501A–291.) § 7237. Availability of recourse loans for high moisture feed grains and seed cotton and other fibers (a) High moisture feed grains (1) Recourse loans available For each of the 1996 through 2002 crops of corn and grain sorghum, the Secretary shall make available recourse loans, as determined by the Secretary, to producers on a farm con- taining eligible cropland covered by a produc- tion flexibility contract who— (A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture state; (B) present— (i) certified scale tickets from an in- spected, certified commercial scale, in- cluding a licensed warehouse, feedlot, feed mill, distillery, or other similar entity ap- proved by the Secretary, pursuant to regu- lations issued by the Secretary; or (ii) field or other physical measurements of the standing or stored crop in regions of the United States, as determined by the Secretary, that do not have certified com- mercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation; (C) certify that they were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-mois- ture storage facility, or to a facility main- tained by the users of corn and grain sor- ghum in a high moisture state; and (D) comply with deadlines established by the Secretary for harvesting the corn or grain sorghum and submit applications for Page 1982 TITLE 7—AGRICULTURE § 7251 loans under this subsection within deadlines established by the Secretary. (2) Eligibility of acquired feed grains A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the producer equivalent to a quantity determined by multiplying— (A) the acreage of the corn or grain sor- ghum in a high moisture state harvested on the producer’s farm; by (B) the lower of the farm program pay- ment yield or the actual yield on a field, as determined by the Secretary, that is similar to the field from which the corn or grain sor- ghum was obtained. (3) ‘‘High moisture state’’ defined In this subsection, the term ‘‘high moisture state’’ means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 7231 of this title. (b) Recourse loans available for seed cotton (1) Upland cotton For each of the 1996 through 2002 crops of up- land cotton, the Secretary shall make avail- able recourse seed cotton loans, as determined by the Secretary, to producers on a farm con- taining eligible cropland covered by a produc- tion flexibility contract. (2) Extra long staple cotton For each of the 1996 through 2002 crops of extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any produc- tion. (c) Recourse loans available for mohair (1) Recourse loans available Notwithstanding any other provision of law, during fiscal year 1999, the Secretary shall make available recourse loans, as determined by the Secretary, to producers of mohair pro- duced during or before that fiscal year. (2) Loan rate The loan rate for a loan under paragraph (1) shall be equal to $2.00 per pound. (3) Term of loan A loan under paragraph (1) shall have a term of 1 year beginning on the first day of the first month after the month in which the loan is made. (4) Waiver of interest Notwithstanding subsection (d), the Sec- retary shall not charge interest on a loan made under paragraph (1). (d) Repayment rates Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (as determined by the Secretary). (Pub. L. 104–127, title I, § 137, Apr. 4, 1996, 110 Stat. 912; Pub. L. 105–277, div. A, § 101(a) [title XI, § 1126], Oct. 21, 1998, 112 Stat. 2681, 2681–46.) Editorial Notes AMENDMENTS 1998—Pub. L. 105–277, § 101(a) [title XI, § 1126(1)], in- serted ‘‘and other fibers’’ after ‘‘seed cotton’’ in section catchline. Subsecs. (c), (d). Pub. L. 105–277, § 101(a) [title XI, § 1126(2), (3)], added subsec. (c) and redesignated former subsec. (c) as (d). SUBCHAPTER IV—OTHER COMMODITIES PART A—DAIRY § 7251. Milk price support program (a) Support activities The Secretary of Agriculture shall support the price of milk produced in the 48 contiguous States through the purchase of cheese, butter, and nonfat dry milk produced from the milk. (b) Rate The price of milk shall be supported at the fol- lowing rates per hundredweight for milk con- taining 3.67 percent butterfat: (1) During calendar year 1996, $10.35. (2) During calendar year 1997, $10.20. (3) During calendar year 1998, $10.05. (4) During each of calendar years 1999 through 2001, $9.90. (5) During the period beginning on January 1, 2002, and ending on May 31, 2002, $9.90. (c) Purchase prices The support purchase prices under this section for each of the products of milk (butter, cheese, and nonfat dry milk) announced by the Sec- retary shall be the same for all of that product sold by persons offering to sell the product to the Secretary. The purchase prices shall be suf- ficient to enable plants of average efficiency to pay producers, on average, a price that is not less than the rate of price support for milk in ef- fect under subsection (b). (d) Special rule for butter and nonfat dry milk purchase prices (1) Allocation of purchase prices The Secretary may allocate the rate of price support between the purchase prices for nonfat dry milk and butter in a manner that will re- sult in the lowest level of expenditures by the Commodity Credit Corporation or achieve such other objectives as the Secretary con- siders appropriate. Not later than 10 days after making or changing an allocation, the Sec- retary shall notify the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the allocation. Sec- tion 553 of title 5 shall not apply with respect to the implementation of this section. (2) Timing of purchase price adjustments The Secretary may make any such adjust- ments in the purchase prices for nonfat dry milk and butter the Secretary considers to be necessary not more than twice in each cal- endar year. (e) Refunds of 1995 and 1996 assessments (1) Refund required The Secretary shall provide for a refund of the entire reduction required under section