12 2 STA T . 1 687PUBLIC LA W 11 0– 2 4 6 —J U NE 18 , 2008 peltsandh a y and s i la g ede r i v ed f r om a loan c ommodity are not eligi b leforamar k eting assistance loan u nder sec - tion 120 1 .(B)LOANDEFIC IENC YP AY M EN T . —E ffective for the 200 8 through 2012 crop years , the S ecretary may make loan deficiency payments available under this section to pro- ducers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity. (b) C OMP U TATION.— A loan deficiency payment for a loan com- modity or commodity referred to in subsection (a)(2) shall be com- puted by multiplying— (1) the payment rate determined under subsection (c) for the commodity
by (2) the q uantity of the commodity produced by the eligible producers, e x cluding any quantity for w hich the producers obtain a marketing assistance loan under section 1201. (c) P AYMENT R ATE.— (1) I N G ENE R A L .—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 120 4 . (2) U N SH ORN PELTS.—In the case of unshorn pelts, the payment rate shall be the amount by which— (A) the loan rate established under section 1202 for ungraded wool; exceeds (B) the rate at which a marketing assistance loan for ungraded wool may be repaid under section 1204. ( 3 ) H AY AND SILAGE.—In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which— (A) the loan rate established under section 1202 for the loan commodity from which the hay or silage is derived; exceeds (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under section 1204. (d) E X CEPTION FOR EXTRA LONG STAPLE COTTON.— T his section shall not apply with respect to extra long staple cotton. (e) EFFECTI V E D ATE FOR PAYMENT RATE DETERMINATION.—The Secretary shall determine the amount of the loan deficiency pay- ment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the pay- ment. SEC.1206 . PAYM E NT S I N L IE UOF LOAN D EFICIENCY PAYMENTS FO RG RA Z ED ACREAGE. (a) ELIGI B LE PRODUCERS.— (1) IN GENERAL.—Effective for the 2008 through 2012 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 120 5 for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the gra z ing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo 7USC8 7 36.
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