§ 7935. Loan deficiency payments

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2002

   Pub. L. 107–171 title I § 1205 · 116 Stat. 134

   Enacted · 7 U.S.C. § 7935

   (Pub. L. 107–171, title I, § 1205, May 13, 2002, 116 Stat. 158.)

   Source evidence

   Code source credit
   (Pub. L. 107–171, title I, § 1205, May 13, 2002, 116 Stat. 158.)

   Enacted provision · exact public law section
   SEC. 1205. 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, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section. (2) Unshorn pelts, hay, and silage.— 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 1201. However, effective for the 2002 through 2007 crop years, the Secretary may make loan deficiency payments available under this section 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 commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying— (1) the payment rate determined under subsection (c) for the commodity; by (2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201. (c) Payment Rate.— (1) In general.— In the case of a loan commodity, the payment rate shall be the amount by which— (A) the loan rate established under section 1202 for the loan commodity; exceeds (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204. (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 1202 for ungraded wool; exceeds (B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204. (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 1202 for the loan commodity from which the hay or silage is derived; exceeds (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204. (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 Determination.— The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment. (f) Special Loan Deficiency Payment Rules.— (1) First-time loan commodities.— For the 2002 crop of wool, mohair, honey, dry peas, lentils and small chickpeas, in the case of producers of such a crop that would be eligible for a loan deficiency payment under this section except for the fact that the producers lost beneficial interest in the crop prior to the date of publication of the regulations implementing this section, the producers shall be eligible for a loan deficiency payment as of the date producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary. (2) 2001 crop year.— Section 135 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7235) is amended— (A) in subsection (a)(2), by striking “2000 crop year” and inserting “2000 and 2001 crop years”; and (B) by adding at the end the following: “(g) Effective Date for Payment Rate Determination.— For the 2001 crop year, the Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity using the payment rate in effect under subsection (c) as of the earlier of the following: “(1) The date on which the producers marketed 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.”.

1 of 1 references resolved to an enrolled provision