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7 U.S. Code § 8735

Loan deficiency payments

7 U.S. Code § 8735. 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 8731 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 8731 of this title.
(B) Loan deficiency payment
Effective for the 2008 through 2012 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
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