(a) Nonrecourse loans available
(1) Availability
For each of the 2002 through 2007 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b).
(2) Eligible production
The producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.
(3) Treatment of certain commingled commodities
In carrying out this subsection, the Secretary shall make loans to producers on a farm that would be eligible to obtain a marketing assistance loan, but for the fact the peanuts owned by the producers on the farm are commingled with other peanuts in facilities unlicensed for the storage of agricultural commodities by the Secretary or a State licensing authority, if the producers obtaining the loan agree to immediately redeem the loan collateral in accordance with section
7286 of this title.
(4) Options for obtaining loan
A marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through—
(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or
(B) the Farm Service Agency.
(5) Storage of loan peanuts
As a condition on the Secretary's approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—
(A) to provide such storage on a nondiscriminatory basis; and
(B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.
(6) Payment of peanut storage costs
Effective for the 2002 through 2006 crops of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall use the funds of the Commodity Credit Corporation to pay storage, handling, and other associated costs. This authority terminates beginning with the 2007 crop of peanuts.
(7) Marketing
A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.
(b) Loan rate
The loan rate for a marketing assistance loan under for peanuts subsection (a) shall be equal to $355 per ton.
(c) Term of loan
(1) In general
A marketing assistance loan for peanuts under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.
(2) Extensions prohibited
The Secretary may not extend the term of a marketing assistance loan for peanuts under subsection (a).
(d) Repayment rate
(1) In general
The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of—
(A) the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section
7283 of this title); or
(B) a rate that the Secretary determines will—
(i) minimize potential loan forfeitures;
(ii) minimize the accumulation of stocks of peanuts by the Federal Government;
(iii) minimize the cost incurred by the Federal Government in storing peanuts; and
(iv) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally.
(2) Good faith exception to beneficial interest requirement
For the 2002 crop year only, in the case of the producers on a farm that marketed or otherwise lost beneficial interest in the peanuts for which a marketing assistance loan was made under this section before repaying the loan, the Secretary shall permit the producers to repay the loan at the applicable repayment rate that was in effect for peanuts under this subsection on the date that the producers lost beneficial interest, as determined by the Secretary, if the Secretary determines the producers acted in good faith.
(e) Loan deficiency payments
(1) Availability
The Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan for peanuts under subsection (a), agree to forgo obtaining the loan for the peanuts in return for loan deficiency payments under this subsection.
(2) Computation
A loan deficiency payment under this subsection shall be computed by multiplying—
(A) the payment rate determined under paragraph (3) for peanuts; by
(B) the quantity of the peanuts produced by the producers, excluding any quantity for which the producers obtain a marketing assistance loan under subsection (a).
(3) Payment rate
For purposes of this subsection, the payment rate shall be the amount by which—
(A) the loan rate established under subsection (b); exceeds
(B) the rate at which a loan may be repaid under subsection (d).
(4) Effective date for payment rate determination
(A) In general
The Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as of the date the producers request the payment.
(B) Special rule for 2002 crop year
For the 2002 crop year only, the Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as of the earlier of the following:
(i) The date on which the producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary.
(ii) The date the producers request the payment.
(f) Compliance with conservation and wetlands requirements
As a condition of the receipt of a marketing assistance loan under subsection (a), the producer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C.
3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C.
3821 et seq.) during the term of the loan.
(g) Reimbursable agreements and payment of administrative expenses
The Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subchapter only in a manner that is consistent with such activities in regard to other commodities.