§ 7235. — Loan deficiency payments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7235]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN
DEFICIENCY PAYMENTS
Sec. 7235. Loan deficiency payments
(a) Availability of loan deficiency payments
Except as provided in subsection (d) of this section, the Secretary
may make loan deficiency payments available to--
(1) producers who, although eligible to obtain a marketing
assistance loan under section 7231 of this title with respect to a
loan commodity, agree to forgo obtaining the loan for the commodity
in return for payments under this section; and
(2) effective only for the 2000 and 2001 crop years, producers
that, although not eligible to obtain such a marketing assistance
loan under section 7231 of this title, produce a contract commodity.
(b) Computation
A loan deficiency payment under this section shall be computed by
multiplying--
(1) the loan payment rate determined under subsection (c) of
this section for the loan commodity; by
(2) the quantity of the loan commodity produced by the eligible
producers, excluding any quantity for which the producers obtain a
loan under section 7231 of this title.
(c) Loan payment rate
For purposes of this section, the loan payment rate shall be the
amount by which--
(1) the loan rate established under section 7232 of this title
for the loan commodity; exceeds
(2) the rate at which a loan for the commodity may be repaid
under section 7234 of this title.
(d) Exception for extra long staple cotton
This section shall not apply with respect to extra long staple
cotton.
(e) Transition
A payment to a producer eligible for a payment under subsection
(a)(2) of this section that harvested a commodity on or before the date
that is 30 days after the promulgation of the regulations implementing
subsection (a)(2) of this section shall be determined as the date the
producer lost beneficial interest in the commodity, as determined by the
Secretary.
(f) Beneficial interest
Subject to subsection (e) of this section, a producer shall be
eligible for a payment under this section only if the producer has a
beneficial interest in the commodity, as determined by the Secretary.
(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) of this section 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.
(Pub. L. 104-127, title I, Sec. 135, Apr. 4, 1996, 110 Stat. 909; Pub.
L. 106-224, title II, Sec. 206, June 20, 2000, 114 Stat. 405; Pub. L.
107-171, title I, Sec. 1205(f)(2), May 13, 2002, 116 Stat. 159.)
Amendments
2002--Subsec. (a)(2). Pub. L. 107-171, Sec. 1205(f)(2)(A),
substituted ``2000 and 2001 crop years'' for ``2000 crop year''.
Subsec. (g). Pub. L. 107-171, Sec. 1205(f)(2)(B), added subsec. (g).
2000--Subsec. (a). Pub. L. 106-224, Sec. 206(a), designated existing
provisions as par. (1) and added par. (2).
Subsec. (b)(2). Pub. L. 106-224, Sec. 206(b), substituted ``produced
by the eligible producers, excluding any quantity for which the
producers obtain a loan under section 7231 of this title.'' for ``that
the producers on a farm are eligible to place under loan but for which
the producers forgo obtaining the loan in return for payments under this
section.''
Subsecs. (e), (f). Pub. L. 106-224, Sec. 206(c), added subsecs. (e)
and (f).
