Page:United States Statutes at Large Volume 110 Part 1.djvu/929

 PUBLIC LAW 104-127—APR. 4, 1996 110 STAT. 905 Subtitle C—Nonrecourse Marketing Assistance Loans and Loan Deficiency Pay- ments SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 7 USC 7231. LOANS. (a) NONRECOURSE LOANS AVAILABLE.—For each of the 1996 through 2002 crops of each loan commodity, the Secretary shall make available to prodiicers on a farm nonrecourse marketing assistance loans for loan commodities 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 section 132 for the loan commodity. (b) ELIGIBLE PRODUCTION.— The following production shall be eligible for a marketing assistance loan under subsection (a): (1) In the case of a marketing assistance loan for a contract commodity, any production by a producer on a farm containing eligible cropland covered by a production flexibility contract. (2) In the case of a marketing assistance loan for extra long staple cotton and oilseeds, any production. (c) COMPLIANCE WITH CONSERVATION AND WETLANDS REQUIRE- MENTS.— ^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 the Act (16 U.S.C. 3821 et seq.) during the term of the loan. (d) ADDITIONAL OUTLAYS PROHIBITED.— The Secretary shall carry out this subtitle in such a manner that there are no additional outlays under this subtitle as a result of the reconstitution of a farm that occurs as a result of the combination of another farm that does not contain eligible cropland covered by a production flexibility contract. SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS. 7 USC 7232. (a) WHEAT. — (1) LOAN RATE.— Subject to paragraph (2), the loan rate for a marketing assistance loan under section 131 for wheat shall be— (A) not less than 85 percent of the simple average price received by producers of wheat, as determined by the Secretary, during the marketing years for the immediately preceding 5 crops of wheat, 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; but (B) not more than $2.58 per bushel. (2) STOCKS TO USE RATIO ADJUSTMENT.— I f the Secretary estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be— (A) equal to or greater than 30 percent, the Secretary may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year; (B) less than 30 percent but not less than 15 percent, the Secretary may reduce the loan rate for wheat for the 29-194O-96 -30:QL3Part1

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