Section 10310: Repayment of Marketing Loans

Section 10310: Repayment of Marketing Loans

🧑‍🌾 What This Section Means – In 4th Grade Language:

Farmers sometimes borrow money from the government to help them hold onto their crops until prices go up. These are called “marketing loans.”

This new rule:

1. Makes the Loan System More Fair:

   • Farmers who grow cotton or rice can now pay back their loan using the world price of the crop if it’s cheaper than the amount they borrowed. This helps them save money when prices are low.

2. Refund for Cotton Farmers:

   • If cotton prices drop right after a farmer pays back the loan, they might get some money back—like a refund—based on how much the price went down.

3. Better Price Comparisons:

   • The government will now look at real-world prices more carefully, especially for cotton. It will check the 3 cheapest cotton prices around the world to decide what’s fair.

4. Cotton Quality and Delivery Costs:

   • When setting cotton prices, the government will also include delivery and marketing costs, so farmers aren’t shortchanged.

5. Special Rules Until 2032:

   • These cotton rules stay in effect until the year 2032, and the government can make more adjustments if:

     • Too many loans are going unpaid

     • Cotton is piling up and not selling

     • Farmers need more help to compete fairly in the world

Here's original:

SEC. 10310. REPAYMENT OF MARKETING LOANS.
    Section 1204 of the Agricultural Act of 2014 (7 U.S.C. 9034) is 
amended--
        (1) in subsection (b)--
            (A) by redesignating paragraph (1) as subparagraph (A) and 
        indenting appropriately;
            (B) in the matter preceding subparagraph (A) (as so 
        redesignated), by striking ``The Secretary'' and inserting the 
        following:
        ``(1) In general.--The Secretary''; and
            (C) by striking paragraph (2) and inserting the following:
            ``(B)(i) in the case of long grain rice and medium grain 
        rice, the prevailing world market price for the commodity, as 
        determined and adjusted by the Secretary in accordance with 
        this section; or
            ``(ii) in the case of upland cotton, the prevailing world 
        market price for the commodity, as determined and adjusted by 
        the Secretary in accordance with this section.
        ``(2) Refund for upland cotton.--In the case of a repayment for 
    a marketing assistance loan for upland cotton at a rate described 
    in paragraph (1)(B)(ii), the Secretary shall provide to the 
    producer a refund (if any) in an amount equal to the difference 
    between the lowest prevailing world market price, as determined and 
    adjusted by the Secretary in accordance with this section, during 
    the 30-day period following the date on which the producer repays 
    the marketing assistance loan and the repayment rate.'';
        (2) in subsection (c)--
            (A) by striking the period at the end and inserting ``; 
        and'';
            (B) by striking ``at the loan rate'' and inserting the 
        following: "at a rate that is the lesser of-- ``
        ``(1) the loan rate''; and
            (C) by adding at the end the following:
        ``(2) the prevailing world market price for the commodity, as 
    determined and adjusted by the Secretary in accordance with this 
    section.'';
        (3) in subsection (d)--
            (A) in paragraph (1), by striking ``and medium grain rice'' 
        and inserting ``medium grain rice, and extra long staple 
        cotton'';
            (B) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (C) in the matter preceding subparagraph (A) (as so 
        redesignated), by striking ``For purposes'' and inserting the 
        following:
        ``(1) In general.--For purposes''; and
            (D) by adding at the end the following:
        ``(2) Upland cotton.--In the case of upland cotton, for any 
    period when price quotations for Middling (M) 1\3/32\-inch cotton 
    are available, the formula under paragraph (1)(A) shall be based on 
    the average of the 3 lowest-priced growths that are quoted.''; and
        (4) in subsection (e)--
            (A) in the subsection heading, by inserting ``Extra Long 
        Staple Cotton,'' after ``Upland Cotton,'';
            (B) in paragraph (2)--
                (i) in the paragraph heading, by inserting ``Upland'' 
            before ``Cotton''; and
                (ii) in subparagraph (B), in the matter preceding 
            clause (i), by striking ``2024'' and inserting ``2032'';
            (C) by redesignating paragraph (3) as paragraph (4); and
            (D) by inserting after paragraph (2) the following:
        ``(3) Extra long staple cotton.--The prevailing world market 
    price for extra long staple cotton determined under subsection 
    (d)--
            ``(A) shall be adjusted to United States quality and 
        location, with the adjustment to include the average costs to 
        market the commodity, including average transportation costs, 
        as determined by the Secretary; and
            ``(B) may be further adjusted, during the period beginning 
        on the date of enactment of the Act entitled `An Act to provide 
        for reconciliation pursuant to title II of H. Con. Res. 14' 
        (119th Congress) and ending on July 31, 2032, if the Secretary 
        determines the adjustment is necessary--
                ``(i) to minimize potential loan forfeitures;
                ``(ii) to minimize the accumulation of stocks of extra 
            long staple cotton by the Federal Government;
                ``(iii) to ensure that extra long staple cotton 
            produced in the United States can be marketed freely and 
            competitively; and
                ``(iv) to ensure an appropriate transition between 
            current-crop and forward-crop price quotations, except that 
            the Secretary may use forward-crop price quotations prior 
            to July 31 of a marketing year only if--

                    ``(I) there are insufficient current-crop price 
                quotations; and
                    ``(II) the forward-crop price quotation is the 
                lowest such quotation available.''.