Page:United States Statutes at Large Volume 104 Part 5.djvu/100

 104 STAT. 3422 PUBLIC LAW 101-624—NOV. 28, 1990 the Secretary, reflecting accrued storage charges of not more than 60 days, make available for the 1991 through 1995 crops of upland cotton to producers on a farm nonrecourse loans for upland cotton produced on the farm for a term of 10 months from the first day of the month in which the loan is made at such loan level, per pound, as will reflect for the base quality of upland cotton, as determined by the Secretary, at average location in the United States a level that is not less than the smaller of— "(A) 85 percent of the average price (weighted by market and month) of the base quality of cotton as quoted in the designated United States spot markets during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or "(B) 90 percent of the average, for the 15-week period beginning July 1 of the year in which the loan level is announced, of the 5 lowest-priced growths of the growths quoted for Middling one and three-thirty-seconds inch cotton C.LF. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year in which the loan is announced between the average Northern European price quotation of such quality of cotton and the market quotations in the designated United States spot markets for the base quality of upland cotton, as determined by the Secretary. "(2) ADJUSTMENTS TO LOAN LEVEL. — "(A) LIMITATION ON DECREASE IN LOAN LEVEL. —The loan level for any crop determined under paragraph (1) may not be reduced by more than 5 percent from the level determined for the preceding crop, and may not be reduced below 50 cents per pound. "(B) LIMITATION ON INCREASE IN LOAN LEVEL. —I f for any crop the average Northern European price determined under paragraph (I)(B) is less than the average United States spot market price determined under paragraph (I)(A), the Secretary may increase the loan level to such level as the Secretary may consider appropriate, not in excess of the average United States spot market price determined under paragraph (I)(A). "(3) ANNOUNCEMENT OF LOAN LEVEL. —The loan level for any crop of upland cotton shall be determined and announced by the Secretary not later than November 1 of the calendar year preceding the marketing year for which the loan is to be effective or, in the case of the 1991 crop, as soon as is practicable after the date of enactment of this Act. The loan level shall not thereafter be changed. "(4) EXTENSION OF LOAN PERIOD. — "(A) IN GENERAL.— Except as provided in subparagraph (B), nonrecourse loans provided for in this section shall, on request of the producer during the 10th month of the loan period for the cotton, be made available for an additional term of 8 months. "(B) LIMITATION. —A request to extend the loan period shall not be approved in any month in which the average price of the base quality of upland cotton, as determined by

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