7 USC 1308a - Cost reduction options

U.S Code last checked for updates: Apr 03, 2025

§ 1308a.

Cost reduction options

(a)

Authority of Secretary to take action

(b)

Reservation of Secretary’s right to reopen or change contracts if producer agrees

(c)

Purchase from other sources of commodities covered by nonrecourse loans

(d)

Reduction in settlement price of nonrecourse loans

When the domestic market price of a commodity for which a nonrecourse loan program (including the program authorized by section 1445e of this title) is in effect is insufficient to cover the principal and accumulated interest on a loan made under such program, thereby encouraging default by a producer, the Secretary may provide for settlement of such loan and redemption by the producer of the commodity securing such loan for less than the total of the principal and all interest accumulated thereon if the Secretary determines that such reduction in the settlement price will yield benefits to the Federal Government due to—

(1)

receipt by the Federal Government of a portion rather than none of the accumulated interest;

(2)

avoidance of default; or

(3)

elimination of storage, handling, and carrying charges on the forfeited commodity.

(e)

Reopening of production control or loan programs to allow for payment in kind

(f)

Other authorities of Secretary not affected

(Pub. L. 99–198, title X, § 1009, Dec. 23, 1985, 99 Stat. 1453; Pub. L. 101–134, § 3, Oct. 30, 1989, 103 Stat. 781; Pub. L. 110–234, title I, § 1603(g)(1), May 22, 2008, 122 Stat. 1011; Pub. L. 110–246, § 4(a), title I, § 1603(g)(1), June 18, 2008, 122 Stat. 1664, 1739.)

cite as: 7 USC 1308a