
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: 7USC7235]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
    SUBCHAPTER III--NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN 
                           DEFICIENCY PAYMENTS
 
Sec. 7235. Loan deficiency payments


(a) Availability of loan deficiency payments

    Except as provided in subsection (d) of this section, the Secretary 
may make loan deficiency payments available to--
        (1) producers who, although eligible to obtain a marketing 
    assistance loan under section 7231 of this title with respect to a 
    loan commodity, agree to forgo obtaining the loan for the commodity 
    in return for payments under this section; and
        (2) effective only for the 2000 crop year, producers that, 
    although not eligible to obtain such a marketing assistance loan 
    under section 7231 of this title, produce a contract commodity.

(b) Computation

    A loan deficiency payment under this section shall be computed by 
multiplying--
        (1) the loan payment rate determined under subsection (c) of 
    this section for the loan commodity; by
        (2) the quantity of the loan commodity produced by the eligible 
    producers, excluding any quantity for which the producers obtain a 
    loan under section 7231 of this title.

(c) Loan payment rate

    For purposes of this section, the loan payment rate shall be the 
amount by which--
        (1) the loan rate established under section 7232 of this title 
    for the loan commodity; exceeds
        (2) the rate at which a loan for the commodity may be repaid 
    under section 7234 of this title.

(d) Exception for extra long staple cotton

    This section shall not apply with respect to extra long staple 
cotton.

(e) Transition

    A payment to a producer eligible for a payment under subsection 
(a)(2) of this section that harvested a commodity on or before the date 
that is 30 days after the promulgation of the regulations implementing 
subsection (a)(2) of this section shall be determined as the date the 
producer lost beneficial interest in the commodity, as determined by the 
Secretary.

(f) Beneficial interest

    Subject to subsection (e) of this section, a producer shall be 
eligible for a payment under this section only if the producer has a 
beneficial interest in the commodity, as determined by the Secretary.

(Pub. L. 104-127, title I, Sec. 135, Apr. 4, 1996, 110 Stat. 909; Pub. 
L. 106-224, title II, Sec. 206, June 20, 2000, 114 Stat. 405.)


                               Amendments

    2000--Subsec. (a). Pub. L. 106-224, Sec. 206(a), designated existing 
provisions as par. (1) and added par. (2).
    Subsec. (b)(2). Pub. L. 106-224, Sec. 206(b), substituted ``produced 
by the eligible producers, excluding any quantity for which the 
producers obtain a loan under section 7231 of this title.'' for ``that 
the producers on a farm are eligible to place under loan but for which 
the producers forgo obtaining the loan in return for payments under this 
section.''
    Subsecs. (e), (f). Pub. L. 106-224, Sec. 206(c), added subsecs. (e) 
and (f).

                  Section Referred to in Other Sections

    This section is referred to in section 1308 of this title.
