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7 U.S.C. § 1446F

Section 1446f · 1446f to 1446h. Repealed. Pub. L. 104127, title I, 171(b)(2)(H), Apr. 4, 1996, 110 Stat. 938

Amended 5 times on record

(a) “Oilseeds” defined

As used in this section, the term “oilseeds” means soybeans, sunflower seed, canola, rapeseed, safflower, flaxseed, mustard seed, and such other oilseeds as the Secretary may determine.

(b) In general

The Secretary shall support the price of oilseeds through nonrecourse loans to producers on a farm for oilseeds produced on the farm in each of the 1991 through 1995 marketing years as provided in this section.

(c) Loan level

The loan level for each of the 1991 through 1995 crops of—

(1) soybeans shall not be less than $5.02 per bushel for each of the 1991 through 1993 crops and $4.92 per bushel for each of the 1994 through 1997 crops;

(2) sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed, individually, shall not be less than $0.089 per pound for each of the 1991 through 1993 crops and $0.087 per pound for each of the 1994 through 1997 crops; and

(3) other oilseeds shall be established at such level as the Secretary determines is fair and reasonable in relation to the loan level available for soybeans, except in no event shall the level for such oilseeds (other than cottonseed) be less than the level established for soybeans on a per-pound basis for the same crop year.

To ensure that producers have an equitable opportunity to produce an alternative crop in areas of limited crop options, the Secretary may limit, insofar as practicable, adjustments in the loan rate established under paragraph (2) applicable to a particular region, State, or county for the purpose of reflecting transportation differentials such that the regional, State, or county loan rate does not increase or decrease by more than 9 percent from the basic national loan rate.

(d) Marketing loan provisions

(1) In general

The Secretary shall permit a producer to repay a loan made under this section for a crop—

(A) at a level that is the lesser of—

(i) the loan level determined for the crop; or

(ii) the prevailing world market price for the applicable oilseed (adjusted to United States quality and location), as determined by the Secretary; or

(B) such other level (not in excess of the loan level determined for the crop) that the Secretary determines will—

(i) minimize potential loan forfeitures;

(ii) minimize the accumulation of oilseed stocks by the Federal Government;

(iii) minimize the cost incurred by the Federal Government in storing oilseeds; and

(iv) allow oilseeds produced in the United States to be marketed freely and competitively, both domestically and internationally.

(2) Prevailing world market price

The Secretary shall prescribe by regulation—

(A) a formula to define the prevailing world market price for oilseeds (adjusted to United States quality and location); and

(B) a mechanism by which the Secretary shall announce periodically the prevailing world market price for oilseeds (adjusted to United States quality and location).

(e) Loan deficiency payment

(1) In general

The Secretary shall, for each of the 1991 through 1995 crops of oilseeds, make payments available to producers who, although eligible to obtain a loan under subsection (b) of this section, agree to forgo obtaining the loan in return for payments under this subsection.

(2) Computation

A payment under this subsection shall be computed by multiplying—

(A) the loan payment rate; by

(B) the quantity of oilseeds the producer is eligible to place under loan but for which the producer forgoes obtaining the loan in return for payments under this subsection.

(3) Loan payment rate

For purposes of this subsection, the loan payment rate shall be the amount by which—

(A) the loan level determined for the crop under subsection (c) of this section; exceeds

(B) the level at which a loan may be repaid under subsection (d) of this section.

(4) Marketing certificates

(A) In general

The Secretary may make payments under this section available in the form of certificates redeemable for any agricultural commodity owned by the Commodity Credit Corporation.

(B) Minimal oilseed stocks

The Secretary shall make certificates available under subparagraph (A) in such a manner so as to minimize the accumulation of oilseeds stocks.

(f) Marketing year

For purposes of this section, the marketing year for—

(1) soybeans shall be the 12-month period beginning on September 1 and ending on August 31; and

(2) other oilseeds shall be prescribed by the Secretary by regulation.

(g) Announcements

(1) In general

Except as provided in paragraph (2), the Secretary shall make an announcement of the loan level for the crop not later than November 15 prior to the calendar year in which the crop is harvested.

(2) 1991 crop

In the case of the 1991 crop, the Secretary shall make an announcement of the loan level for the crop as soon as practicable after November 28, 1990.

(h) Loan maturity

A loan made for a crop of oilseeds under this section shall mature—

(1) in the case of each of the 1991 through 1993 crops, on the last day of the 9th month following the month the application for the loan is made; and

(2) in the case of each of the 1994 through 1997 crops, on the last day of the 9th month following the month the application for the loan is made, except that the loan may not mature later than the last day of the fiscal year in which the application is made.

(i) Other terms and conditions

Notwithstanding any other provision of law—

(1) the Secretary shall not require participation in any production adjustment program for oilseeds or any other commodity as a condition of eligibility for price support for oilseeds;

(2) the Secretary may not authorize payments to producers to cover the cost of storing oilseeds; and

(3) oilseeds may not be considered an eligible commodity for any reserve program.

(j) Regulations

The Secretary may issue such regulations as the Secretary determines necessary to carry out this section.

(k) Commodity Credit Corporation

The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.

(l) Assignment of payments

The provisions of section 590h(g) of title 16) (relating to assignment of payments) shall apply to payments under this section.

(m) Loan origination fee

(1) Loans

The Secretary shall charge a producer a loan origination fee for a crop of oilseeds, in connection with making a loan, equal to the product obtained by multiplying—

(A) the loan level determined for the crop under subsection (c) of this section; by

(B) 2 percent; by

(C) the quantity of oilseeds for which the producer obtains the loan.

(2) Loan deficiency payments

The Secretary shall deduct, from the amount of any loan deficiency payment made under subsection (e) of this section, an amount equal to the amount of the loan origination fee that would otherwise be paid under paragraph (1) if the producer obtained a loan rather a loan deficiency payment.

(3) Applicability

This subsection shall apply only to each of the 1991 through 1993 crops of oilseeds.

(n) Crops

Notwithstanding any other provision of law, this section shall be effective only for the 1991 through 1995 crops of oilseeds.

Editorial notes U.S. Code · Office of the Law Revision Counsel

Amendments

1993—Subsec. (c)(1). Pub. L. 103–66, §1108(1)(A), inserted “for each of the 1991 through 1993 crops and $4.92 per bushel for each of the 1994 through 1997 crops” after “$5.02 per bushel”.

Subsec. (c)(2). Pub. L. 103–66, §1108(1)(B), inserted “for each of the 1991 through 1993 crops and $0.087 per pound for each of the 1994 through 1997 crops” after “$0.089 per pound”.

Subsec. (h). Pub. L. 103–66, §1108(2), substituted “mature—” for “mature on the last day of the 9th month following the month the application for the loan is made.” and added pars. (1) and (2).

Subsec. (m)(3). Pub. L. 103–66, §1108(3), added par. (3).

1991—Subsec. (c). Pub. L. 102–237 substituted “flaxseed, individually,” for “flaxseed” in par. (2), substituted “in no event shall the level for such oilseeds (other than cottonseed) be less” for “that, in the case of cottonseed, in no event less” in par. (3), and inserted sentence after and below par. (3).

1990—Subsecs. (m), (n). Pub. L. 101–508 added subsec. (m) and redesignated former subsec. (m) as (n).

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as a note under section 511r of this title.

Effective Date

Section effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as as an Effective Date of 1990 Amendment note under section 1421 of this title.

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