Page:United States Statutes at Large Volume 99 Part 2.djvu/343

 PUBLIC LAW 99-198—DEC. 23, 1985

99 STAT. 1453

control of the producers, the total quantity of peanuts, soybeans, sugar beets, or sugarcane that the producers are able to harvest on any farm is less than the result of multiplying 60 percent of the farm program payment yield established by the Secretary for such crop by the acreage planted for harvest for such crop, the Secretary may make a reduced jdeld disaster payment to the producers at a rate equal to 50 percent of the loan and purchase level for the crop for the deficiency in production below 60 percent for the crop. "(3) The Secretary may make such adjustments in the amount of pa3niients made available under this paragraph with respect to an individual farm so as to assure the equitable allotment of such payments among producers, taking into account other forms of Federal disaster assistance provided to the producers for the crop involved.". COST REDUCTION OPTIONS

SEC. 1009. (a) Notwithstanding any other provision of law, i^henever the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved. (b) In the announcement of the specific provisions of any commodity program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change. (c) When a nonrecourse loan program is in effect for a crop of a commodity, the Secretary may enter the commercial market to purchsise such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program. (d) When the domestic market price of a commodity for which a nonrecourse loan program is in effect is insufficient to cover the principal and accumulated interest on a loan made under such program, thereby encouraging default by a producer, the Secretary may provide for settlement of such loan and redemption by the producer of the commodity securing such loan for less than the total of the principal and all interest accumulated thereon if the Secretary determines that such reduction in the settlement price will yield savings to the Federal Government due to— (1) receipt by the Federal Government of a portion rather than none of the accumulated interest; (2) avoidance of default; or (3) elimination of storage, handling, and carrying charges on the forfeited commodity, but the Secretary may not reduce the settlement price to less than the principal due on the loan.

7 USC I308a.

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Loans.

Loans.,

Prohibition.

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