
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC7232]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
    SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                           DEFICIENCY PAYMENTS
 
Sec. 7232. Loan rates for marketing assistance loans


(a) Wheat

                            (1) Loan rate

        Subject to paragraph (2), the loan rate for a marketing 
    assistance loan under section 7231 of this title for wheat shall 
    be--
            (A) not less than 85 percent of the simple average price 
        received by producers of wheat, as determined by the Secretary, 
        during the marketing years for the immediately preceding 5 crops 
        of wheat, excluding the year in which the average price was the 
        highest and the year in which the average price was the lowest 
        in the period; but
            (B) not more than $2.58 per bushel.

                 (2) Stocks to use ratio adjustment

        If the Secretary estimates for any marketing year that the ratio 
    of ending stocks of wheat to total use for the marketing year will 
    be--
            (A) equal to or greater than 30 percent, the Secretary may 
        reduce the loan rate for wheat for the corresponding crop by an 
        amount not to exceed 10 percent in any year;
            (B) less than 30 percent but not less than 15 percent, the 
        Secretary may reduce the loan rate for wheat for the 
        corresponding crop by an amount not to exceed 5 percent in any 
        year; or
            (C) less than 15 percent, the Secretary may not reduce the 
        loan rate for wheat for the corresponding crop.

(b) Feed grains

                       (1) Loan rate for corn

        Subject to paragraph (2), the loan rate for a marketing 
    assistance loan under section 7231 of this title for corn shall be--
            (A) not less than 85 percent of the simple average price 
        received by producers of corn, as determined by the Secretary, 
        during the marketing years for the immediately preceding 5 crops 
        of corn, excluding the year in which the average price was the 
        highest and the year in which the average price was the lowest 
        in the period; but
            (B) not more than $1.89 per bushel.

                 (2) Stocks to use ratio adjustment

        If the Secretary estimates for any marketing year that the ratio 
    of ending stocks of corn to total use for the marketing year will 
    be--
            (A) equal to or greater than 25 percent, the Secretary may 
        reduce the loan rate for corn for the corresponding crop by an 
        amount not to exceed 10 percent in any year;
            (B) less than 25 percent but not less than 12.5 percent, the 
        Secretary may reduce the loan rate for corn for the 
        corresponding crop by an amount not to exceed 5 percent in any 
        year; or
            (C) less than 12.5 percent, the Secretary may not reduce the 
        loan rate for corn for the corresponding crop.

                        (3) Other feed grains

        The loan rate for a marketing assistance loan under section 7231 
    of this title for grain sorghum, barley, and oats, respectively, 
    shall be established at such level as the Secretary determines is 
    fair and reasonable in relation to the rate that loans are made 
    available for corn, taking into consideration the feeding value of 
    the commodity in relation to corn.

(c) Upland cotton

                            (1) Loan rate

        Subject to paragraph (2), the loan rate for a marketing 
    assistance loan under section 7231 of this title for upland cotton 
    shall be established by the Secretary at such loan rate, per pound, 
    as will reflect for the base quality of upland cotton, as determined 
    by the Secretary, at average locations in the United States a rate 
    that is not less than the smaller of--
            (A) 85 percent of the average price (weighted by market and 
        month) of the base quality of cotton as quoted in the designated 
        United States spot markets during 3 years of the 5-year period 
        ending July 31 of the year preceding the year in which the crop 
        is planted, excluding the year in which the average price was 
        the highest and the year in which the average price was the 
        lowest in the period; or
            (B) 90 percent of the average, for the 15-week period 
        beginning July 1 of the year preceding the year in which the 
        crop is planted, of the 5 lowest-priced growths of the growths 
        quoted for Middling 1\3/32\-inch cotton C.I.F. Northern Europe 
        (adjusted downward by the average difference during the period 
        April 15 through October 15 of the year preceding the year in 
        which the crop is planted between the average Northern European 
        price quotation of such quality of cotton and the market 
        quotations in the designated United States spot markets for the 
        base quality of upland cotton), as determined by the Secretary.

                           (2) Limitations

        The loan rate for a marketing assistance loan for upland cotton 
    shall not be less than $0.50 per pound or more than $0.5192 per 
    pound.

(d) Extra long staple cotton

    The loan rate for a marketing assistance loan under section 7231 of 
this title for extra long staple cotton shall be--
        (1) not less than 85 percent of the simple average price 
    received by producers of extra long staple cotton, as determined by 
    the Secretary, during 3 years of the 5-year period ending July 31 of 
    the year preceding the year in which the crop is planted, excluding 
    the year in which the average price was the highest and the year in 
    which the average price was the lowest in the period; but
        (2) not more than $0.7965 per pound.

(e) Rice

    The loan rate for a marketing assistance loan under section 7231 of 
this title for rice shall be $6.50 per hundredweight.

(f) Oilseeds

                            (1) Soybeans

        The loan rate for a marketing assistance loan under section 7231 
    of this title for soybeans shall be--
            (A) not less than 85 percent of the simple average price 
        received by producers of soybeans, as determined by the 
        Secretary, during the marketing years for the immediately 
        preceding 5 crops of soybeans, excluding the year in which the 
        average price was the highest and the year in which the average 
        price was the lowest in the period; but
            (B) not less than $4.92 or more than $5.26 per bushel.

      (2) Sunflower seed, canola, rapeseed, safflower, mustard 
                             seed, and flaxseed

        The loan rate for a marketing assistance loan under section 7231 
    of this title for sunflower seed, canola, rapeseed, safflower, 
    mustard seed, and flaxseed, individually, shall be--
            (A) not less than 85 percent of the simple average price 
        received by producers of sunflower seed, individually, as 
        determined by the Secretary, during the marketing years for the 
        immediately preceding 5 crops of sunflower seed, individually, 
        excluding the year in which the average price was the highest 
        and the year in which the average price was the lowest in the 
        period; but
            (B) not less than $0.087 or more than $0.093 per pound.

                         (3) Other oilseeds

        The loan rates for a marketing assistance loan under section 
    7231 of this title for other oilseeds shall be established at such 
    level as the Secretary determines is fair and reasonable in relation 
    to the loan rate available for soybeans, except in no event shall 
    the rate for the oilseeds (other than cottonseed) be less than the 
    rate established for soybeans on a per-pound basis for the same 
    crop.

(Pub. L. 104-127, title I, Sec. 132, Apr. 4, 1996, 110 Stat. 905.)

                  Section Referred to in Other Sections

    This section is referred to in sections 1308, 7231, 7234, 7235, 7236 
of this title.
