Page:United States Statutes at Large Volume 116 Part 1.djvu/184

 116 STAT. 158 PUBLIC LAW 107-171—MAY 13, 2002 (B) The current level of cotton export sales and cotton export shipments. (C) Other data determined by the Secretary to be relevant in establishing an accurate prevailing world market price for upland cotton (adjusted to United States quality and location). (3) LIMITATION ON FURTHER ADJUSTMENT.— The adjustment under paragraph (2) may not exceed the difference between— (A) the Friday through Thursday average price for the lowest-priced United States growth as quoted for Middling 1%2-inch cotton delivered C.I.F. Northern Europe; and (B) the Northern Europe price. (f) GOOD FAITH EXCEPTION TO BENEFICIAL INTEREST REQUIRE- MENT. — For the 2001 crop year only, in the case of the producers on a farm that marketed or otherwise lost beneficial interest in a loan commodity for which a marketing assistance loan was made under section 131 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7231) before repaying the loan, the Secretary shall permit the producers to repay the loan at the appropriate repayment rate that was in effect for the loan commodity under section 134 of that Act (7 U.S.C. 7234) on the date that the producers lost beneficial interest, as determined by the Secretary, if the Secretary determines the producers acted in good faith. 7 USC 7935. SEC. 1205. LOAN DEFICIENCY PAYMENTS. (a) AVAILABILITY OF LOAN DEFICIENCY PAYMENTS.— (1) IN GENERAL.— Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under section 1201 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section. (2) UNSHORN PELTS, HAY, AND SILAGE.— Nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under section 1201. However, effective for the 2002 through 2007 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity. (b) COMPUTATION. —^A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be computed by multiplying— (1) the payment rate determined under subsection (c) for the commodity; by (2) the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 1201. (c) PAYMENT RATE. — (1) IN GENERAL. —In the case of a loan commodity, the payment rate shall be the amount by which— (A) the loan rate established under section 1202 for the loan commodity; exceeds (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204.

�