§ 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 and 2001 crop years, 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—
(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.
(g)
Effective date for payment rate determination
For the 2001 crop year, 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 using the payment rate in effect under subsection (c) of this section as of the earlier of the following: