7 U.S. Code § 7957 - Marketing assistance loans and loan deficiency payments for peanuts
(a) Nonrecourse loans available
For each of the 2002 through 2007 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b) of this section.
(2) Eligible production
The producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.
(3) Treatment of certain commingled commodities
In carrying out this subsection, the Secretary shall make loans to producers on a farm that would be eligible to obtain a marketing assistance loan, but for the fact the peanuts owned by the producers on the farm are commingled with other peanuts in facilities unlicensed for the storage of agricultural commodities by the Secretary or a State licensing authority, if the producers obtaining the loan agree to immediately redeem the loan collateral in accordance with section 7286 of this title.
(4) Options for obtaining loan
A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e) of this section, 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
(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—
(6) Payment of peanut storage costs
Effective for the 2002 through 2006 crops of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall use the funds of the Commodity Credit Corporation to pay storage, handling, and other associated costs. This authority terminates beginning with the 2007 crop of peanuts.
(b) Loan rate
The loan rate for a marketing assistance loan under for peanuts subsection (a) of this section shall be equal to $355 per ton.
(c) Term of loan
(1) In general
A marketing assistance loan for peanuts under subsection (a) of this section shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.
(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) of this section at a rate that is the lesser of—
(A) the loan rate established for peanuts under subsection (b) of this section, plus interest (determined in accordance with section 7283 of this title); or
(B) a rate that the Secretary determines will—
(2) Good faith exception to beneficial interest requirement
For the 2002 crop year only, in the case of the producers on a farm that marketed or otherwise lost beneficial interest in the peanuts for which a marketing assistance loan was made under this section before repaying the loan, the Secretary shall permit the producers to repay the loan at the applicable repayment rate that was in effect for peanuts under this subsection on the date that the producers lost beneficial interest, as determined by the Secretary, if the Secretary determines the producers acted in good faith.
(e) Loan deficiency payments
The Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan for peanuts under subsection (a) of this section, agree to forgo obtaining the loan for the peanuts in return for loan deficiency payments under this subsection.
A loan deficiency payment under this subsection shall be computed by multiplying—
(3) Payment rate
For purposes of this subsection, the payment rate shall be the amount by which—
(4) Effective date for payment rate determination
(A) In general
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 date the producers request the payment.
(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.
(f) Compliance with conservation and wetlands requirements
As a condition of the receipt of a marketing assistance loan under subsection (a) of this section, the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) during the term of the loan.
Source(Pub. L. 107–171, title I, § 1307,May 13, 2002, 116 Stat. 175.)
References in Text
The Food Security Act of 1985, referred to in subsec. (f), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354, as amended. Subtitles B and C of title XII of the Act are classified generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables.
This subchapter, referred to in subsec. (g), was in the original “this subtitle”, meaning subtitle C (§§ 1301–1310) of Pub. L. 107–171, title I, May 13, 2002, 116 Stat. 166, which is classified principally to this subchapter. For complete classification of subtitle C to the Code, see References in Text note set out under section 7951 of this title and Tables.