---
kind: "section"
citation: "7 U.S.C. § 7237"
title: "7"
title_heading: "Agriculture"
number: "7237"
heading: "Availability of recourse loans for high moisture feed grains and seed cotton and other fibers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7237"
units:
  - "Chapter 100 — Agricultural Market Transition"
  - "Subchapter III — Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments"
---

# §7237. Availability of recourse loans for high moisture feed grains and seed cotton and other fibers

- (a) **High moisture feed grains—**
  - (1) **Recourse loans available—** For each of the 1996 through 2002 crops of corn and grain sorghum, the [Secretary](/usc/7/7202.md?p=13) shall make available recourse loans, as determined by the [Secretary](/usc/7/7202.md?p=13), to [producers](/usc/7/7202.md?p=12) on a farm containing eligible cropland covered by a [production flexibility contract](/usc/7/7202.md?p=3) who—
    - (A) normally harvest all or a portion of their crop of corn or grain sorghum in a high moisture [state](/usc/7/7202.md?p=14);
    - (B) present—
      - (i) certified scale tickets from an inspected, certified commercial scale, including a licensed warehouse, feedlot, feed mill, distillery, or other similar entity approved by the [Secretary](/usc/7/7202.md?p=13), pursuant to regulations issued by the [Secretary](/usc/7/7202.md?p=13); or
      - (ii) field or other physical measurements of the standing or stored crop in regions of the [United States](/usc/7/7202.md?p=15), as determined by the [Secretary](/usc/7/7202.md?p=13), that do not have certified commercial scales from which certified scale tickets may be obtained within reasonable proximity of harvest operation;
    - (C) certify that they were the owners of the feed grain at the time of delivery to, and that the quantity to be placed under loan under this subsection was in fact harvested on the farm and delivered to, a feedlot, feed mill, or commercial or on-farm high-moisture storage facility, or to a facility maintained by the users of corn and grain sorghum in a high moisture [state](/usc/7/7202.md?p=14); and
    - (D) comply with deadlines established by the [Secretary](/usc/7/7202.md?p=13) for harvesting the corn or grain sorghum and submit applications for loans under this subsection within deadlines established by the [Secretary](/usc/7/7202.md?p=13).
  - (2) **Eligibility of acquired feed grains—** A loan under this subsection shall be made on a quantity of corn or grain sorghum of the same crop acquired by the [producer](/usc/7/7202.md?p=12) equivalent to a quantity determined by multiplying—
    - (A) the acreage of the corn or grain sorghum in a high moisture [state](/usc/7/7202.md?p=14) harvested on the [producer](/usc/7/7202.md?p=12)’s farm; by
    - (B) the lower of the [farm program payment yield](/usc/7/7202.md?p=9) or the actual yield on a field, as determined by the [Secretary](/usc/7/7202.md?p=13), that is similar to the field from which the corn or grain sorghum was obtained.
  - (3) **“High moisture state” defined—** In this subsection, the term “high moisture [state](/usc/7/7202.md?p=14)” means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the [Secretary](/usc/7/7202.md?p=13) under [section 7231 of this title](/usc/7/7231.md).
- (b) **Recourse loans available for seed cotton—**
  - (1) **Upland cotton—** For each of the 1996 through 2002 crops of upland cotton, the [Secretary](/usc/7/7202.md?p=13) shall make available recourse seed cotton loans, as determined by the [Secretary](/usc/7/7202.md?p=13), to [producers](/usc/7/7202.md?p=12) on a farm containing eligible cropland covered by a [production flexibility contract](/usc/7/7202.md?p=3).
  - (2) **Extra long staple cotton—** For each of the 1996 through 2002 crops of [extra long staple cotton](/usc/7/7202.md?p=8), the [Secretary](/usc/7/7202.md?p=13) shall make available recourse seed cotton loans, as determined by the [Secretary](/usc/7/7202.md?p=13), on any production.
- (c) **Recourse loans available for mohair—**
  - (1) **Recourse loans available—** Notwithstanding any other provision of law, during fiscal year 1999, the [Secretary](/usc/7/7202.md?p=13) shall make available recourse loans, as determined by the [Secretary](/usc/7/7202.md?p=13), to [producers](/usc/7/7202.md?p=12) of mohair produced during or before that fiscal year.
  - (2) **Loan rate—** The loan rate for a loan under [paragraph (1)](#c-1) shall be equal to $2.00 per pound.
  - (3) **Term of loan—** A loan under [paragraph (1)](#c-1) shall have a term of 1 year beginning on the first day of the first month after the month in which the loan is made.
  - (4) **Waiver of interest—** Notwithstanding [subsection (d)](#d), the [Secretary](/usc/7/7202.md?p=13) shall not charge interest on a loan made under [paragraph (1)](#c-1).
- (d) **Repayment rates—** Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the [Secretary](/usc/7/7202.md?p=13), plus interest (as determined by the [Secretary](/usc/7/7202.md?p=13)).

## Source credit

(Pub. L. 104–127, title I, § 137, Apr. 4, 1996, 110 Stat. 912; Pub. L. 105–277, div. A, § 101(a) [title XI, § 1126], Oct. 21, 1998, 112 Stat. 2681, 2681–46.)

## Notes

### Editorial Notes

### Amendments

1998—Pub. L. 105–277, § 101(a) [title XI, § 1126(1)], inserted “and other fibers” after “seed cotton” in section catchline.

Subsecs. (c), (d). Pub. L. 105–277, § 101(a) [title XI, § 1126(2), (3)], added subsec. (c) and redesignated former subsec. (c) as (d).