--- kind: "section" citation: "7 U.S.C. § 7232" title: "7" title_heading: "Agriculture" number: "7232" heading: "Loan rates for marketing assistance loans" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/7232" units: - "Chapter 100 — Agricultural Market Transition" - "Subchapter III — Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments" --- # §7232. Loan rates for marketing assistance loans - (a) **Wheat—** - (1) **Loan rate—** Subject to [paragraph (2)](#a-2), the loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for wheat shall be— - (A) not less than 85 percent of the simple average price received by [producers](/usc/7/7202.md?p=12) of wheat, as determined by the [Secretary](/usc/7/7202.md?p=13), during the marketing years for the immediately preceding 5 crops of wheat, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but - (B) not more than $2.58 per bushel. - (2) **Stocks to use ratio adjustment—** If the [Secretary](/usc/7/7202.md?p=13) estimates for any marketing year that the ratio of ending stocks of wheat to total use for the marketing year will be— - (A) equal to or greater than 30 percent, the [Secretary](/usc/7/7202.md?p=13) may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 10 percent in any year; - (B) less than 30 percent but not less than 15 percent, the [Secretary](/usc/7/7202.md?p=13) may reduce the loan rate for wheat for the corresponding crop by an amount not to exceed 5 percent in any year; or - (C) less than 15 percent, the [Secretary](/usc/7/7202.md?p=13) may not reduce the loan rate for wheat for the corresponding crop. - (b) **Feed grains—** - (1) **Loan rate for corn—** Subject to [paragraph (2)](#b-2), the loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for corn shall be— - (A) not less than 85 percent of the simple average price received by [producers](/usc/7/7202.md?p=12) of corn, as determined by the [Secretary](/usc/7/7202.md?p=13), during the marketing years for the immediately preceding 5 crops of corn, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but - (B) not more than $1.89 per bushel. - (2) **Stocks to use ratio adjustment—** If the [Secretary](/usc/7/7202.md?p=13) estimates for any marketing year that the ratio of ending stocks of corn to total use for the marketing year will be— - (A) equal to or greater than 25 percent, the [Secretary](/usc/7/7202.md?p=13) may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 10 percent in any year; - (B) less than 25 percent but not less than 12.5 percent, the [Secretary](/usc/7/7202.md?p=13) may reduce the loan rate for corn for the corresponding crop by an amount not to exceed 5 percent in any year; or - (C) less than 12.5 percent, the [Secretary](/usc/7/7202.md?p=13) may not reduce the loan rate for corn for the corresponding crop. - (3) **Other feed grains—** The loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for grain sorghum, barley, and oats, respectively, shall be established at such level as the [Secretary](/usc/7/7202.md?p=13) determines is fair and reasonable in relation to the rate that loans are made available for corn, taking into consideration the feeding value of the commodity in relation to corn. - (c) **Upland cotton—** - (1) **Loan rate—** Subject to [paragraph (2)](#c-2), the loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for upland cotton shall be established by the [Secretary](/usc/7/7202.md?p=13) at such loan rate, per pound, as will reflect for the base quality of upland cotton, as determined by the [Secretary](/usc/7/7202.md?p=13), at average locations in the [United States](/usc/7/7202.md?p=15) a rate that is not less than the smaller of— - (A) 85 percent of the average price (weighted by [market](/usc/7/198.md?p=1) and month) of the base quality of cotton as quoted in the designated [United States](/usc/7/7202.md?p=15) spot [markets](/usc/7/198.md?p=1) during 3 years of the 5-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; or - (B) 90 percent of the average, for the 15-week period beginning July 1 of the year preceding the year in which the crop is planted, of the 5 lowest-priced growths of the growths quoted for Middling 13⁄32-inch cotton C.I.F. Northern Europe (adjusted downward by the average difference during the period April 15 through October 15 of the year preceding the year in which the crop is planted between the average Northern European price quotation of such quality of cotton and the [market](/usc/7/198.md?p=1) quotations in the designated [United States](/usc/7/7202.md?p=15) spot [markets](/usc/7/198.md?p=1) for the base quality of upland cotton), as determined by the [Secretary](/usc/7/7202.md?p=13). - (2) **Limitations—** The loan rate for a marketing assistance loan for upland cotton shall not be less than $0.50 per pound or more than $0.5192 per pound. - (d) **Extra long staple cotton—** The loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for [extra long staple cotton](/usc/7/7202.md?p=8) shall be— - (1) not less than 85 percent of the simple average price received by [producers](/usc/7/7202.md?p=12) of [extra long staple cotton](/usc/7/7202.md?p=8), as determined by the [Secretary](/usc/7/7202.md?p=13), during 3 years of the 5-year period ending July 31 of the year preceding the year in which the crop is planted, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but - (2) not more than $0.7965 per pound. - (e) **Rice—** The loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for rice shall be $6.50 per hundredweight. - (f) **Oilseeds—** - (1) **Soybeans—** The loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for soybeans shall be— - (A) not less than 85 percent of the simple average price received by [producers](/usc/7/7202.md?p=12) of soybeans, as determined by the [Secretary](/usc/7/7202.md?p=13), during the marketing years for the immediately preceding 5 crops of soybeans, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but - (B) not less than $4.92 or more than $5.26 per bushel. - (2) **Sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed—** The loan rate for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for sunflower seed, canola, rapeseed, safflower, mustard seed, and flaxseed, individually, shall be— - (A) not less than 85 percent of the simple average price received by [producers](/usc/7/7202.md?p=12) of sunflower seed, individually, as determined by the [Secretary](/usc/7/7202.md?p=13), during the marketing years for the immediately preceding 5 crops of sunflower seed, individually, excluding the year in which the average price was the highest and the year in which the average price was the lowest in the period; but - (B) not less than $0.087 or more than $0.093 per pound. - (3) **Other oilseeds—** The loan rates for a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for other [oilseeds](/usc/7/7202.md?p=11) shall be established at such level as the [Secretary](/usc/7/7202.md?p=13) determines is fair and reasonable in relation to the loan rate available for soybeans, except in no event shall the rate for the [oilseeds](/usc/7/7202.md?p=11) (other than cottonseed) be less than the rate established for soybeans on a per-pound basis for the same crop. ## Source credit (Pub. L. 104–127, title I, § 132, Apr. 4, 1996, 110 Stat. 905.)