Subject to subsection (e), the Secretary may make appropriate adjustments in the loan rates for any loan commodity (other than cotton) for differences in grade, type, quality, location, and other factors.
(b) Manner of adjustment
The adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for the commodity will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subtitle and subtitles B through E.
(c) Adjustment on county basis
(1) In general
The Secretary may establish loan rates for a crop for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays.
Adjustments under this subsection shall not result in an increase in the national average loan rate for any year.
(d) Adjustment in loan rate for cotton
(1) In general
The Secretary may make appropriate adjustments in the loan rate for cotton for differences in quality factors.
(2) Revisions to quality adjustments for upland cotton
(A) In general
Not later than 180 days after the date of enactment of this Act, the Secretary shall implement revisions in the administration of the marketing assistance loan program for upland cotton to more accurately and efficiently reflect market values for upland cotton.
(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
In making adjustments to the loan rate for cotton (including any review of the adjustments) as provided in this subsection, the Secretary shall consult with representatives of the United States cotton industry.
(B) Inapplicability of Federal Advisory Committee Act
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to consultations under this subsection.
(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).
The Secretary shall not make adjustments in the loan rates for long grain rice and medium grain rice, except for differences in grade and quality (including milling yields).
This subtitle and subtitles B through E, referred to in subsec. (b), probably means subtitle B (§ 1201 et seq.) and subtitles C (§ 1301 et seq.), D (§ 1401 et seq.), and E (§ 1501 et seq.) of title I of Pub. L. 110–246, June 18, 2008, 122 Stat. 1681. Subtitles B and C are classified generally to this subchapter and subchapter III (§ 8751 et seq.), respectively, of this chapter. Subtitle D enacted sections
7287 of this title, amended sections
7971 of this title, repealed former section
1359kk of this title, and enacted provisions set out as notes under sections
7272 of this title. Subtitle E enacted subchapter IV (§ 8771 et seq.) of this chapter and amended sections
4531 of this title and section
713a–14 of Title
15, Commerce and Trade. For complete classification of subtitles B to E to the Code, see Tables.
The date of enactment of this Act, referred to in subsec. (d)(2)(A), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.
The Federal Advisory Committee Act, referred to in subsec. (d)(3)(B), is Pub. L. 92–463, Oct. 6, 1972, 86 Stat. 770, which is set out in the Appendix to Title 5, Government Organization and Employees.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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