---
kind: "section"
citation: "7 U.S.C. § 7234"
title: "7"
title_heading: "Agriculture"
number: "7234"
heading: "Repayment of loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7234"
units:
  - "Chapter 100 — Agricultural Market Transition"
  - "Subchapter III — Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments"
---

# §7234. Repayment of loans

- (a) **Repayment rates for wheat, feed grains, and oilseeds—** The [Secretary](/usc/7/7202.md?p=13) shall permit a [producer](/usc/7/7202.md?p=12) to repay a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for wheat, corn, grain sorghum, barley, oats, and [oilseeds](/usc/7/7202.md?p=11) at a rate that is the lesser of—
  - (1) the loan rate established for the commodity under [section 7232 of this title](/usc/7/7232.md), plus interest (as determined by the [Secretary](/usc/7/7202.md?p=13)); or
  - (2) a rate that the [Secretary](/usc/7/7202.md?p=13) determines will—
    - (A) minimize potential loan forfeitures;
    - (B) minimize the accumulation of stocks of the commodity by the Federal Government;
    - (C) minimize the cost incurred by the Federal Government in storing the commodity; and
    - (D) allow the commodity produced in the [United States](/usc/7/7202.md?p=15) to be marketed freely and competitively, both domestically and internationally.
- (b) **Repayment rates for upland cotton and rice—** The [Secretary](/usc/7/7202.md?p=13) shall permit [producers](/usc/7/7202.md?p=12) to repay a marketing assistance loan under [section 7231 of this title](/usc/7/7231.md) for upland cotton and rice at a rate that is the lesser of—
  - (1) the loan rate established for the commodity under [section 7232 of this title](/usc/7/7232.md), plus interest (as determined by the [Secretary](/usc/7/7202.md?p=13)); or
  - (2) the prevailing world [market](/usc/7/198.md?p=1) price for the commodity (adjusted to [United States](/usc/7/7202.md?p=15) quality and location), as determined by the [Secretary](/usc/7/7202.md?p=13).
- (c) **Repayment rates for extra long staple cotton—** Repayment of a marketing assistance loan for [extra long staple cotton](/usc/7/7202.md?p=8) shall be at the loan rate established for the commodity under [section 7232 of this title](/usc/7/7232.md), plus interest (as determined by the [Secretary](/usc/7/7202.md?p=13)).
- (d) **Prevailing world market price—** For purposes of this section and [section 7236 of this title](/usc/7/7236.md), the [Secretary](/usc/7/7202.md?p=13) shall prescribe by regulation—
  - (1) a formula to determine the prevailing world [market](/usc/7/198.md?p=1) price for each [loan commodity](/usc/7/7202.md?p=10), adjusted to [United States](/usc/7/7202.md?p=15) quality and location; and
  - (2) a mechanism by which the [Secretary](/usc/7/7202.md?p=13) shall announce periodically the prevailing world [market](/usc/7/198.md?p=1) price for each [loan commodity](/usc/7/7202.md?p=10).
- (e) **Adjustment of prevailing world market price for upland cotton—**
  - (1) **In general—** During the period ending July 31, 2003, the prevailing world [market](/usc/7/198.md?p=1) price for upland cotton (adjusted to [United States](/usc/7/7202.md?p=15) quality and location) established under [subsection (d)](#d) shall be further adjusted if—
    - (A) the adjusted prevailing world [market](/usc/7/198.md?p=1) price is less than 115 percent of the loan rate for upland cotton established under [section 7232 of this title](/usc/7/7232.md), as determined by the [Secretary](/usc/7/7202.md?p=13); and
    - (B) the Friday through Thursday average price quotation for the lowest-priced [United States](/usc/7/7202.md?p=15) growth as quoted for Middling (M) 1<sup>3</sup>⁄<sub>32</sub>-inch cotton delivered C.I.F. Northern Europe is greater than the Friday through Thursday average price of the 5 lowest-priced growths of upland cotton, as quoted for Middling (M) 1<sup>3</sup>⁄<sub>32</sub>-inch cotton, delivered C.I.F. Northern Europe (referred to in this section as the “Northern Europe price”).
  - (2) **Further adjustment—** Except as provided in [paragraph (3)](#e-3), the adjusted prevailing world [market](/usc/7/198.md?p=1) price for upland cotton shall be further adjusted on the basis of some or all of the following data, as available:
    - (A) The [United States](/usc/7/7202.md?p=15) share of world exports.
    - (B) The current level of cotton export sales and cotton export shipments.
    - (C) Other data determined by the [Secretary](/usc/7/7202.md?p=13) to be relevant in establishing an accurate prevailing world [market](/usc/7/198.md?p=1) price for upland cotton (adjusted to [United States](/usc/7/7202.md?p=15) quality and location).
  - (3) **Limitation on further adjustment—** The adjustment under [paragraph (2)](#e-2) may not exceed the difference between—
    - (A) the Friday through Thursday average price for the lowest-priced [United States](/usc/7/7202.md?p=15) growth as quoted for Middling 1<sup>3</sup>⁄<sub>32</sub>-inch cotton delivered C.I.F. Northern Europe; and
    - (B) the Northern Europe price.

## Source credit

(Pub. L. 104–127, title I, § 134, Apr. 4, 1996, 110 Stat. 908.)