---
kind: "section"
citation: "7 U.S.C. § 7938"
title: "7"
title_heading: "Agriculture"
number: "7938"
heading: "Special competitive provisions for extra long staple cotton"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7938"
units:
  - "Chapter 106 — Commodity Programs"
  - "Subchapter II — Marketing Assistance Loans and Loan Deficiency Payments"
---

# §7938. Special competitive provisions for extra long staple cotton

- (a) **Competitiveness program—** Notwithstanding any other provision of law, during the period beginning on May 13, 2002, through July 31, 2008, the [Secretary](/usc/7/7901.md?p=13) shall carry out a program—
  - (1) to maintain and expand the domestic use of [extra long staple cotton](/usc/7/7901.md?p=7) produced in the [United States](/usc/7/7901.md?p=16);
  - (2) to increase exports of [extra long staple cotton](/usc/7/7901.md?p=7) produced in the [United States](/usc/7/7901.md?p=16); and
  - (3) to ensure that [extra long staple cotton](/usc/7/7901.md?p=7) produced in the [United States](/usc/7/7901.md?p=16) remains competitive in world [markets](/usc/7/198.md?p=1).
- (b) **Payments under program; trigger—** Under the program, the [Secretary](/usc/7/7901.md?p=13) shall make payments available under this section whenever—
  - (1) for a consecutive 4-week period, the world [market](/usc/7/198.md?p=1) price for the lowest priced competing growth of [extra long staple cotton](/usc/7/7901.md?p=7) (adjusted to [United States](/usc/7/7901.md?p=16) quality and location and for other factors affecting the competitiveness of such cotton), as determined by the [Secretary](/usc/7/7901.md?p=13), is below the prevailing [United States](/usc/7/7901.md?p=16) price for a competing growth of [extra long staple cotton](/usc/7/7901.md?p=7); and
  - (2) the lowest priced competing growth of [extra long staple cotton](/usc/7/7901.md?p=7) (adjusted to [United States](/usc/7/7901.md?p=16) quality and location and for other factors affecting the competitiveness of such cotton), as determined by the [Secretary](/usc/7/7901.md?p=13), is less than 134 percent of the loan rate for [extra long staple cotton](/usc/7/7901.md?p=7).
- (c) **Eligible recipients—** The [Secretary](/usc/7/7901.md?p=13) shall make payments available under this section to domestic users of [extra long staple cotton](/usc/7/7901.md?p=7) produced in the [United States](/usc/7/7901.md?p=16) and exporters of [extra long staple cotton](/usc/7/7901.md?p=7) produced in the [United States](/usc/7/7901.md?p=16) that enter into an agreement with the Commodity Credit Corporation to participate in the program under this section.
- (d) **Payment amount—** Payments under this section shall be based on the amount of the difference in the prices referred to in [subsection (b)(1)](#b-1) during the fourth week of the consecutive 4-week period multiplied by the amount of documented purchases by domestic users and sales for export by exporters made in the week following such a consecutive 4-week period.
- (e) **Form of payment—** Payments under this section shall be made through the issuance of cash or marketing certificates, at the option of eligible recipients of the payments.

## Source credit

(Pub. L. 107–171, title I, § 1208, May 13, 2002, 116 Stat. 164.)