12 2 STA T .95 9 PUBLIC LA W 11 0– 2 34—M A Y 22 , 200 8(A)theloanr ate e s ta b l i she du nder se c tion 120 2 f or the loan co m modit y; e x ceeds ( B ) the rate at w hich a mar k etin g assistance loan for the loan commodity may be re p aid under section 120 4. (2) UNSHOR N PELT S. —I n 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 ) HAY AN D S I LA G E.—In the case of hay or silage deri v ed 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) EXC EPTION F OR EXTRA L ONG S TAPLE C OTTON.— T his section shall not apply with respect to extra long staple cotton. (e) EFFECTI V E D ATE FOR P AY M ENT R ATE 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 q uantity 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 PROD U CERS.— (1) IN GENERAL.—Effective for the 200 8 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 any other harvesting of the wheat, barley, or oats on that acreage. (2) G RA Z ING OF TRITICALE ACREAGE.—Effective for the 2008 through 2012 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing 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 any other harvesting of triticale on that acreage. (b) PAYMENT AMOUNT.— (1) IN GENERAL.—The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying— (A) the loan deficiency payment rate determined under section 1205(c) in effect, as of the date of the agreement, for the county in which the farm is located; by (B) the payment quantity determined by multiplying— 7USC8 7 36.
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