7 U.S.C. § 9035 | Loan deficiency payments

(a)

Availability of loan deficiency payments

(1)

In general

section 9031 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 9031 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 each of the 2014 through 2031 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 equal to the product obtained by multiplying—

(1)

the payment rate determined under subsection (c) for the commodity; by

(2)

section 9031 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 9032 of this title the loan rate established under for the loan commodity; exceeds

(B)

section 9034 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 9032 of this title the loan rate established under for ungraded wool; exceeds

(B)

section 9034 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 9032 of this title the loan rate established under for the loan commodity from which the hay or silage is derived; exceeds

(B)

section 9034 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. 113–79, title I, § 1205Feb. 7, 2014128 Stat. 679 Pub. L. 115–334, title I, § 1201(c)(1)Dec. 20, 2018132 Stat. 4509 Pub. L. 119–21, title I, § 10309(d)(1)July 4, 2025139 Stat. 94(, , ; , , ; , , .)

Editorial Notes

Codification

Pub. L. 113–79 section 102(c)(1) of Pub. L. 118–22 section 9001 of this titleProvisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of applicable to the 2024 crop year for that loan commodity, see , set out in an Extension of Agricultural Programs note under .

Amendments

Pub. L. 119–212025—Subsec. (a)(2)(B). substituted “2031” for “2023”.

Pub. L. 115–3342018—Subsec. (a)(2)(B). substituted “2023” for “2018”.