7 U.S.C. § 8735 | Loan deficiency payments

(a)

Availability of loan deficiency payments

(1)

In general

section 8731 of this titleExcept 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 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

section 8731 of this titleSubject 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 .

(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)

section 8731 of this title the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under .

(c)

Payment rate

(1)

In general

In the case of a loan commodity, the payment rate shall be the amount by which—

(A)

section 8732 of this title the loan rate established under for the loan commodity; exceeds

(B)

section 8734 of this title the rate at which a marketing assistance loan for the loan commodity may be repaid under .

(2)

Unshorn pelts

In the case of unshorn pelts, the payment rate shall be the amount by which—

(A)

section 8732 of this title the loan rate established under for ungraded wool; exceeds

(B)

section 8734 of this title the rate at which a marketing assistance loan for ungraded wool may be repaid under .

(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)

section 8732 of this title the loan rate established under for the loan commodity from which the hay or silage is derived; exceeds

(B)

section 8734 of this title the rate at which a marketing assistance loan for the loan commodity may be repaid under .

(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.

Pub. L. 110–234, title I, § 1205May 22, 2008122 Stat. 958 Pub. L. 110–246, § 4(a)June 18, 2008122 Stat. 1664 (, , ; , title I, § 1205, , , 1686.)

Editorial Notes

Codification

Pub. L. 110–234 Pub. L. 110–246 Pub. L. 110–234 section 4(a) of Pub. L. 110–246 and enacted identical sections. was repealed by .

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 110–234 Pub. L. 110–246May 22, 2008Pub. L. 110–234 section 4 of Pub. L. 110–246 section 8701 of this titleEnactment of this section and repeal of by effective , the date of enactment of , see , set out as a note under .