§ 1433c-1. — Advance recourse loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1433c-1]
TITLE 7--AGRICULTURE
CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1433c-1. Advance recourse loans
(a) Availability; due date; procedures for repayment; applicability;
security; limitation
It is the sense of Congress that the Secretary of Agriculture carry
out a program authorized by section 424 of the Agricultural Act of 1949
[7 U.S.C. 1433c]. Such program, if implemented, shall provide for the
following:
(1) Advance recourse loans shall be made available only to those
producers of a commodity who are unable to obtain sufficient credit
elsewhere to finance the production of the 1986 crop of that
commodity, taking into consideration prevailing private and
cooperative rates and terms for loans for similar purposes (as
determined by the Secretary) in the community in or near which the
applicant resides. A producer who has received a commitment or been
furnished sufficient credit or a loan for production of the 1986
crop of a commodity shall not be eligible for an advance recourse
loan to finance the production of that commodity for such crop year.
(2) Advance recourse loans shall be made available to producers
of a commodity at the applicable nonrecourse loan rate for the
commodity (as determined by the Secretary). Within the limits set
out in paragraphs (5) and (7), advance recourse loans shall be
available--
(A) to producers of wheat, feed grains, cotton, and rice who
agree to participate in the program announced for the commodity
on an amount of the commodity equal to one-half of the farm
program yield for the commodity multiplied by the farm program
acreage intended to be planted to the commodity for harvest in
1986, as determined by the Secretary;
(B) to producers of tobacco and peanuts who are on a farm
for which a marketing quota or poundage quota has been
established on an amount of the commodity equal to one-half of
the farm marketing quota or poundage quota for the commodity, as
determined by the Secretary; and
(C) to producers of other commodities on an amount of the
commodity equal to one-half of the farm yield for the commodity
multiplied by the farm acreage intended to be planted to the
commodity for harvest in 1986, as determined by the Secretary.
(3) An advance recourse loan under section 424 [7 U.S.C. 1433c]
shall come due at such time immediately following harvest as the
Secretary determines appropriate. Each loan contract entered into
under section 424 shall specify the date on which the loan is to
come due.
(4)(A) The Secretary shall establish procedures, when
practicable, under which a producer, simultaneously with repayment
of his recourse loan, may obtain a nonrecourse loan on his crop (as
otherwise provided for in the Agricultural Act of 1949 [7 U.S.C.
1421 et seq.]) in an amount sufficient to repay his recourse loan.
(B) In cases in which nonrecourse loans under such Act are not
normally made available directly to producers, the Secretary shall
establish procedures under which a producer may repay a recourse
loan at the same time the producer receives advances or other
payment from the producer's disposition of his crop.
(5) Advance recourse loans shall be made available as needed
solely to cover costs involved in the production of the 1986 crop
that are incurred or are outstanding on or after March 20, 1986.
(6) To obtain an advance recourse loan, the producer on a farm
must--
(A) provide as security for the loan a first lien on the
crop covered by the loan or provide such other security as may
be available to the producer and determined by the Secretary to
be adequate to protect the Government's interests; and
(B) obtain multiperil crop insurance, if available, to
protect the crop that serves as security for the loan.
If a producer does not have multiperil crop insurance and is located
in a county in which the signup period for multiperil crop insurance
has expired, the producer shall be required to obtain other crop
insurance, if available.
(7) The total amount in advance recourse loans that may be made
to a producer under section 424 [7 U.S.C. 1433c] may not exceed
$50,000.
(8) An advance recourse loan may be made available only to a
producer who agrees to comply with such other terms and conditions
determined appropriate by the Secretary and consistent with the
provisions of section 424 [7 U.S.C. 1433c].
(b) Use of Commodity Credit Corporation, Agricultural Stabilization and
Conservation Service, and county committees
The Secretary shall carry out the program provided for under section
424 [7 U.S.C. 1433c] through the Commodity Credit Corporation, using the
services of the Agricultural Stabilization and Conservation Service and
the county committees established under section 590h(b) of title 16 to
make determinations of eligibility with respect to the credit test under
subsection (a)(1) of this section, and determinations as to the
sufficiency of security under subsection (a)(6) of this section. The
Secretary may use such committees for such other purposes as the
Secretary determines appropriate in carrying out section 424.
(c) Regulations
It is further the sense of Congress that the Secretary of
Agriculture issue or, as appropriate, amend regulations to implement any
program established under section 424 [7 U.S.C. 1433c] as soon as
practicable, but not later than 15 days after March 20, 1986. Loans and
other assistance provided under such program shall be made available
beginning on the date such regulations are issued or amended.
(Pub. L. 99-260, Sec. 13, Mar. 20, 1986, 100 Stat. 53.)
References in Text
The Agricultural Act of 1949, referred to in subsec. (a)(4), is act
Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is classified
principally to this chapter (Sec. 1421 et seq.). For complete
classification of this Act to the Code, see Short Title note set out
under section 1421 of this title and Tables.
Codification
Section was enacted as part of the Food Security Improvements Act of
1986, and not as part of the Agricultural Act of 1949 which is
classified principally to this chapter. For complete classification of
the 1949 Act to the Code, see Short Title note set out under section
1421 of this title and Tables.
