7 USC 8740 - Adjustments of loans

U.S Code last checked for updates: Nov 23, 2024

§ 8740.

Adjustments of loans

(a)

Adjustment authority

(b)

Manner of adjustment

(c)

Adjustment on county basis

(1)

In general

(2)

Prohibition

(d)

Adjustment in loan rate for cotton

(1)

In general

(2)

Revisions to quality adjustments for upland cotton

(A)

In general

(B)

Mandatory revisions

Revisions under subparagraph (A) shall include—

(i)

the elimination of warehouse location differentials;

(ii)

the establishment of differentials for the various quality factors and staple lengths of cotton based on a 3-year, weighted moving average of the weighted designated spot market regions, as determined by regional production;

(iii)

the elimination of any artificial split in the premium or discount between upland cotton with a 32 or 33 staple length due to micronaire; and

(iv)

a mechanism to ensure that no premium or discount is established that exceeds the premium or discount associated with a leaf grade that is 1 better than the applicable color grade.

(C)

Discretionary revisions

Revisions under subparagraph (A) may include—

(i)

the use of non-spot market price data, in addition to spot market price data, that would enhance the accuracy of the price information used in determining quality adjustments under this subsection;

(ii)

adjustments in the premiums or discounts associated with upland cotton with a staple length of 33 or above due to micronaire with the goal of eliminating any unnecessary artificial splits in the calculations of the premiums or discounts; and

(iii)

such other adjustments as the Secretary determines appropriate, after consultations conducted in accordance with paragraph (3).

(3)

Consultation with private sector

(A)

Prior to revision

(B)

Inapplicability of chapter 10 of title 5

(4)

Review of adjustments

The Secretary may review the operation of the upland cotton quality adjustments implemented pursuant to this subsection and may make further revisions to the administration of the loan program for upland cotton, by—

(A)

revoking or revising any actions taken under paragraph (2)(B); or

(B)

revoking or revising any actions taken or authorized to be taken under paragraph (2)(C).

(e)

Rice

(Pub. L. 110–234, title I, § 1210, May 22, 2008, 122 Stat. 965; Pub. L. 110–246, § 4(a), title I, § 1210, June 18, 2008, 122 Stat. 1664, 1693; Pub. L. 117–286, § 4(a)(42), Dec. 27, 2022, 136 Stat. 4310.)

cite as: 7 USC 8740