7 U.S. Code § 8757 - Marketing assistance loans and loan deficiency payments for peanuts
(a) Nonrecourse loans available
For each of the 2008 through 2012 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm.
(2) Terms and conditions
The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).
(3) 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.
(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
(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) Storage, handling, and associated costs
(A) In general
Beginning with the 2008 crop of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary.
(B) Redemption and forfeiture
The Secretary shall—
(i) require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and
(b) Loan rate
Except as provided in section 8715 of this title, the loan rate for a marketing assistance loan for peanuts under subsection (a) shall be equal to $355 per ton.
(c) Term of loan
(1) In general
A marketing assistance loan for peanuts under subsection (a) 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) 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—
(2) Authority to temporarily adjust repayment rates
(A) Adjustment authority
In the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this subsection for marketing assistance loans for peanuts under subsection (a).
(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), 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
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.
(f) Compliance with conservation and wetlands requirements
As a condition of the receipt of a marketing assistance loan under subsection (a), 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. 110–234, title I, § 1307,May 22, 2008, 122 Stat. 974; Pub. L. 110–246, § 4(a), title I, § 1307,June 18, 2008, 122 Stat. 1664, 1703.)
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. 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.