7 USC 7957 - Marketing assistance loans and loan deficiency payments for peanuts

U.S Code last checked for updates: Nov 22, 2024

§ 7957.

Marketing assistance loans and loan deficiency payments for peanuts

(a)

Nonrecourse loans available

(1)

Availability

(2)

Eligible production

(3)

Treatment of certain commingled commodities

(4)

Options for obtaining loan

A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through—

(A)

a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or

(B)

the Farm Service Agency.

(5)

Storage of loan peanuts

As a condition on the Secretary’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—

(A)

to provide such storage on a nondiscriminatory basis; and

(B)

to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.

(6)

Payment of peanut storage costs

(7)

Marketing

(b)

Loan rate

(c)

Term of loan

(1)

In general

(2)

Extensions prohibited

(d)

Repayment rate

(1)

In general

The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of—

(A)

the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section 7283 of this title); or

(B)

a rate that the Secretary determines will—

(i)

minimize potential loan forfeitures;

(ii)

minimize the accumulation of stocks of peanuts by the Federal Government;

(iii)

minimize the cost incurred by the Federal Government in storing peanuts; and

(iv)

allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.

(2)

Good faith exception to beneficial interest requirement

(e)

Loan deficiency payments

(1)

Availability

(2)

Computation

A loan deficiency payment under this subsection shall be computed by multiplying—

(A)

the payment rate determined under paragraph (3) for peanuts; by

(B)

the quantity of the peanuts produced by the producers, excluding any quantity for which the producers obtain a marketing assistance loan under subsection (a).

(3)

Payment rate

For purposes of this subsection, the payment rate shall be the amount by which—

(A)

the loan rate established under subsection (b); exceeds

(B)

the rate at which a loan may be repaid under subsection (d).

(4)

Effective date for payment rate determination

(A)

In general

(B)

Special rule for 2002 crop year

For the 2002 crop year only, the Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as of the earlier of the following:

(i)

The date on which the producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary.

(ii)

The date the producers request the payment.

(f)

Compliance with conservation and wetlands requirements

(g)

Reimbursable agreements and payment of administrative expenses

(Pub. L. 107–171, title I, § 1307, May 13, 2002, 116 Stat. 175.)

cite as: 7 USC 7957