7 U.S.C. § 1433c — Advance recourse commodity loans

Page 732 TITLE 7—AGRICULTURE § 1433b 1 So in original. Probably should be followed by a comma. (Oct. 31, 1949, ch. 792, title IV, § 422, as added Pub. L. 97–98, title X, § 1002, Dec. 22, 1981, 95 Stat. 1260.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as a note under section 4301 of this title. INAPPLICABILITY OF SECTION Section inapplicable to 2014 through 2018 crops of cov- ered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see section 9092(b)(10) of this title. Section inapplicable to 2008 through 2012 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see section 8782(b)(10) of this title. Section inapplicable to 2002 through 2007 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(10) of this title. Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(J) of this title. § 1433b. Processing of surplus agricultural com- modities into liquid fuels and agricultural commodity byproducts (a) Authority of Commodity Credit Corporation; terms and conditions established by Sec- retary; fuel prices Notwithstanding any other provision of law, in order to prevent the accumulation of excessive stocks of agricultural commodities through the price support and stabilization operations of the Commodity Credit Corporation 1 the Corporation may, under terms and conditions established by the Secretary, make its accumulated stocks of agricultural commodities available, at no cost or reduced cost, to encourage the purchase of such commodities for the production of liquid fuels and agricultural commodity byproducts. In carrying out the program established by this section, the Secretary shall ensure, insofar as possible, that any use of agricultural commod- ities made available be made in such manner as to encourage increased use and avoid displacing usual marketings of agricultural commodities. (b) Feasibility of processing In determining the feasibility of providing for the processing of Commodity Credit Corporation stocks of commodities under subsection (a), the Secretary shall consider the nature of the com- modities, and the acquisition, transportation, handling, storage, interest, and other costs asso- ciated with acquiring and maintaining such stocks, including the effect of such stocks in de- pressing commodity prices, as well as the value and utility of such stocks when processed into liquid fuels and agricultural commodity byprod- ucts. (Oct. 31, 1949, ch. 792, title IV, § 423, as added Pub. L. 97–358, § 2, Oct. 21, 1982, 96 Stat. 1714; amended Pub. L. 99–198, title X, § 1024, Dec. 23, 1985, 99 Stat. 1460.) Editorial Notes CODIFICATION Subsection (c), which required the Secretary to re- port annually to Congress on the operation of this sec- tion, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, page 46 of House Document No. 103–7. AMENDMENTS 1985—Subsec. (a). Pub. L. 99–198 substituted provision authorizing the Corporation to make its accumulated agricultural commodities stocks available at no cost or reduced cost to encourage the purchase thereof for the production of liquid fuels and commodity byproducts, with any use of such commodities to be made in such a manner as to encourage increased use and avoid dis- placing usual marketings of such commodities for pro- vision authorizing the Corporation to provide for proc- essing of its accumulated stock into liquid fuels and commodity byproducts to be either made available to Federal agencies to meet their regular or emergency needs or to be sold commercially by the Corporation, at a price determined by the Secretary notwithstanding any other provisions of law and in a manner so as not to disrupt the prices in commercial markets of agri- culturally-derived liquid fuel. Statutory Notes and Related Subsidiaries INAPPLICABILITY OF SECTION Section inapplicable to 2014 through 2018 crops of cov- ered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see section 9092(b)(10) of this title. Section inapplicable to 2008 through 2012 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see section 8782(b)(10) of this title. Section inapplicable to 2002 through 2007 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(10) of this title. Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(J) of this title. § 1433c. Advance recourse commodity loans Notwithstanding any other provision of this Act, the Secretary may make advance recourse loans available to producers of the commodities of the 1986 through 1990 crops for which non- recourse loans are made available under this Act if the Secretary finds that such action is nec- essary to ensure that adequate operating credit is available to producers. Such recourse loans may be made available under such reasonable terms and conditions as the Secretary may pre- scribe, except that the Secretary shall require that a producer obtain crop insurance for the crop as a condition of eligibility for a loan. (Oct. 31, 1949, ch. 792, title IV, § 424, as added Pub. L. 99–198, title X, § 1003, Dec. 23, 1985, 99 Stat. 1447.) Editorial Notes REFERENCES IN TEXT This Act, referred to in text, is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§ 1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables. Page 733 TITLE 7—AGRICULTURE § 1433c–1 Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES Pub. L. 99–198, title X, § 1003, Dec. 23, 1985, 99 Stat. 1447, provided that this section is effective for the 1986 through 1990 crops. INAPPLICABILITY OF SECTION Section inapplicable to 2014 through 2018 crops of cov- ered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see section 9092(b)(10) of this title. Section inapplicable to 2008 through 2012 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see section 8782(b)(10) of this title. Section inapplicable to 2002 through 2007 crops of cov- ered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see section 7992(b)(10) of this title. Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(J) of this title. § 1433c–1. Advance recourse loans (a) Availability; due date; procedures for repay- ment; applicability; security; limitation It is the sense of Congress that the Secretary of Agriculture carry out a program authorized by section 424 of the Agricultural Act of 1949 [7 U.S.C. 1433c]. Such program, if implemented, shall provide for the following: (1) Advance recourse loans shall be made available only to those producers of a com- modity who are unable to obtain sufficient credit elsewhere to finance the production of the 1986 crop of that commodity, taking into consideration prevailing private and coopera- tive rates and terms for loans for similar pur- poses (as determined by the Secretary) in the community in or near which the applicant re- sides. A producer who has received a commit- ment or been furnished sufficient credit or a loan for production of the 1986 crop of a com- modity shall not be eligible for an advance re- course loan to finance the production of that commodity for such crop year. (2) Advance recourse loans shall be made available to producers of a commodity at the applicable nonrecourse loan rate for the com- modity (as determined by the Secretary). Within the limits set out in paragraphs (5) and (7), advance recourse loans shall be available— (A) to producers of wheat, feed grains, cot- ton, and rice who agree to participate in the program announced for the commodity on an amount of the commodity equal to one- half of the farm program yield for the com- modity multiplied by the farm program acreage intended to be planted to the com- modity for harvest in 1986, as determined by the Secretary; (B) to producers of peanuts who are on a farm for which a marketing quota or pound- age quota has been established on an amount of the commodity equal to one-half of the farm marketing quota or poundage quota for the commodity, as determined by the Sec- retary; and (C) to producers of other commodities on an amount of the commodity equal to one- half of the farm yield for the commodity multiplied by the farm acreage intended to be planted to the commodity for harvest in 1986, as determined by the Secretary. (3) An advance recourse loan under section 424 [7 U.S.C. 1433c] shall come due at such time immediately following harvest as the Sec- retary determines appropriate. Each loan con- tract entered into under section 424 shall specify the date on which the loan is to come due. (4)(A) The Secretary shall establish proce- dures, when practicable, under which a pro- ducer, simultaneously with repayment of his recourse loan, may obtain a nonrecourse loan on his crop (as otherwise provided for in the Agricultural Act of 1949 [7 U.S.C. 1421 et seq.]) in an amount sufficient to repay his recourse loan. (B) In cases in which nonrecourse loans under such Act are not normally made avail- able directly to producers, the Secretary shall establish procedures under which a producer may repay a recourse loan at the same time the producer receives advances or other pay- ment from the producer’s disposition of his crop. (5) Advance recourse loans shall be made available as needed solely to cover costs in- volved in the production of the 1986 crop that are incurred or are outstanding on or after March 20, 1986. (6) To obtain an advance recourse loan, the producer on a farm must— (A) provide as security for the loan a first lien on the crop covered by the loan or pro- vide such other security as may be available to the producer and determined by the Sec- retary to be adequate to protect the Govern- ment’s interests; and (B) obtain multiperil crop insurance, if available, to protect the crop that serves as security for the loan. If a producer does not have multiperil crop in- surance and is located in a county in which the signup period for multiperil crop insurance has expired, the producer shall be required to obtain other crop insurance, if available. (7) The total amount in advance recourse loans that may be made to a producer under section 424 [7 U.S.C. 1433c] may not exceed $50,000. (8) An advance recourse loan may be made available only to a producer who agrees to comply with such other terms and conditions determined appropriate by the Secretary and consistent with the provisions of section 424 [7 U.S.C. 1433c]. (b) Use of Commodity Credit Corporation, Agri- cultural Stabilization and Conservation Serv- ice, and county committees The Secretary shall carry out the program provided for under section 424 [7 U.S.C. 1433c] through the Commodity Credit Corporation, using the services of the Agricultural Stabiliza- tion and Conservation Service and the county committees established under section 590h(b) of title 16 to make determinations of eligibility with respect to the credit test under subsection (a)(1), and determinations as to the sufficiency