§ 7232. — Loan rates for marketing assistance loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7232]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS
Sec. 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,
during 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 marketing 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 preceding 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 marketing 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 established by the Secretary at such loan rate, per pound,
as will reflect for the base quality of upland cotton, as determined
by the Secretary, at average locations in the United States a rate
that is not less than the smaller of--
(A) 85 percent of the average price (weighted 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 preceding 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 period; 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 1\3/32\-inch cotton C.I.F. Northern Europe
(adjusted downward by the average difference during the period
April 15 through October 15 of the year preceding 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 staple cotton shall be--
(1) not less than 85 percent of the simple average price
received by producers of extra long staple cotton, as determined by
the Secretary, during 3 years of the 5-year period ending July 31 of
the year preceding 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 period; but
(2) not more than $0.7965 per pound.
(e) Rice
The loan rate for a marketing assistance loan under section 7231 of
this title for rice shall be $6.50 per hundredweight.
(f) Oilseeds
(1) Soybeans
The loan rate for a marketing assistance loan under section 7231
of this title for soybeans shall be--
(A) not less than 85 percent of the simple average price
received by producers of soybeans, as determined by the
Secretary, during the marketing years for the immediately
preceding 5 crops of soybeans, 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 less than $4.92 or more than $5.26 per bushel.
(2) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed
The loan rate for a marketing assistance loan under section 7231
of this title for sunflower seed, canola, rapeseed, safflower,
mustard seed, and flaxseed, individually, shall be--
(A) not less than 85 percent of the simple average price
received by producers of sunflower seed, individually, as
determined by the Secretary, during the marketing years for the
immediately preceding 5 crops of sunflower seed, individually,
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 less than $0.087 or more than $0.093 per pound.
(3) Other oilseeds
The loan rates for a marketing assistance loan under section
7231 of this title for other oilseeds shall be established at such
level as the Secretary determines is fair and reasonable in relation
to the loan rate available for soybeans, except in no event shall
the rate for the oilseeds (other than cottonseed) be less than the
rate established for soybeans on a per-pound basis for the same
crop.
(Pub. L. 104-127, title I, Sec. 132, Apr. 4, 1996, 110 Stat. 905.)
Section Referred to in Other Sections
This section is referred to in sections 7231, 7234, 7235, 7236 of
this title.
