7 U.S. Code § 9035 - Loan deficiency payments
(a) Availability of loan deficiency payments
(1) In general
Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 9031 of this title with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
(2) Unshorn pelts, hay, and silage
(A) Marketing assistance loans
Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 9031 of this title.
A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—
(c) Payment rate
(1) In general
In the case of a loan commodity, the payment rate shall be the amount by which—
(2) Unshorn pelts
In the case of unshorn pelts, the payment rate shall be the amount by which—
(3) Hay and silage
In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
(A) the loan rate established under section 9032 of this title for the loan commodity from which the hay or silage is derived; exceeds
(d) Exception for extra long staple cotton
This section shall not apply with respect to extra long staple cotton.
(e) Effective date for payment rate determination
The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.
LII has no control over and does not endorse any external Internet site that contains links to or references LII.