§ 8735. 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. 2008

   Pub. L. 110–234 title I § 1205 · 122 Stat. 923

   Enacted · 7 U.S.C. § 8735

   Pub. L. 110–234, title I, § 1205, May 22, 2008, 122 Stat. 958

   Source evidence

   Code source credit
   Pub. L. 110–234, title I, § 1205, May 22, 2008, 122 Stat. 958

   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.— (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 1201. (B) Loan deficiency payment.— Effective for the 2008 through 2012 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.

1 of 1 references resolved to an enrolled provision