---
kind: "section"
citation: "7 U.S.C. § 7957"
title: "7"
title_heading: "Agriculture"
number: "7957"
heading: "Marketing assistance loans and loan deficiency payments for peanuts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7957"
units:
  - "Chapter 106 — Commodity Programs"
  - "Subchapter III — Peanuts"
---

# §7957. Marketing assistance loans and loan deficiency payments for peanuts

- (a) **Nonrecourse loans available—**
  - (1) **Availability—** For each of the 2002 through 2007 crops of peanuts, the [Secretary](/usc/7/7901.md?p=13) shall make available to [producers](/usc/7/7901.md?p=12) on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. The loans shall be made under terms and conditions that are prescribed by the [Secretary](/usc/7/7901.md?p=13) and at the loan rate established under [subsection (b)](#b).
  - (2) **Eligible production—** The [producers](/usc/7/7901.md?p=12) on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm.
  - (3) **Treatment of certain commingled commodities—** In carrying out this subsection, the [Secretary](/usc/7/7901.md?p=13) shall make loans to [producers](/usc/7/7901.md?p=12) on a farm that would be eligible to obtain a marketing assistance loan, but for the fact the peanuts owned by the [producers](/usc/7/7901.md?p=12) on the farm are commingled with other peanuts in facilities unlicensed for the storage of agricultural commodities by the [Secretary](/usc/7/7901.md?p=13) or a [State](/usc/7/7901.md?p=14) licensing authority, if the [producers](/usc/7/7901.md?p=12) obtaining the loan agree to immediately redeem the loan collateral in accordance with [section 7286 of this title](/usc/7/7286.md).
  - (4) **Options for obtaining loan—** A marketing assistance loan under this subsection, and loan deficiency payments under [subsection (e)](#e), may be obtained at the option of the [producers](/usc/7/7901.md?p=12) on a farm through—
    - (A) a designated marketing association or marketing cooperative of [producers](/usc/7/7901.md?p=12) that is approved by the [Secretary](/usc/7/7901.md?p=13); or
    - (B) the Farm Service Agency.
  - (5) **Storage of loan peanuts—** As a condition on the [Secretary](/usc/7/7901.md?p=13)’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—
    - (A) to provide such storage on a nondiscriminatory basis; and
    - (B) to comply with such additional requirements as the [Secretary](/usc/7/7901.md?p=13) considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section.
  - (6) **Payment of peanut storage costs—** Effective for the 2002 through 2006 crops of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the [Secretary](/usc/7/7901.md?p=13) shall use the funds of the Commodity Credit Corporation to pay storage, handling, and other associated costs. This authority terminates beginning with the 2007 crop of peanuts.
  - (7) **Marketing—** A marketing association or cooperative may [market](/usc/7/198.md?p=1) peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality.
- (b) **Loan rate—** The loan rate for a marketing assistance loan under for peanuts [subsection (a)](#a) shall be equal to $355 per ton.
- (c) **Term of loan—**
  - (1) **In general—** A marketing assistance loan for peanuts under [subsection (a)](#a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made.
  - (2) **Extensions prohibited—** The [Secretary](/usc/7/7901.md?p=13) may not extend the term of a marketing assistance loan for peanuts under [subsection (a)](#a).
- (d) **Repayment rate—**
  - (1) **In general—** The [Secretary](/usc/7/7901.md?p=13) shall permit [producers](/usc/7/7901.md?p=12) on a farm to repay a marketing assistance loan for peanuts under [subsection (a)](#a) at a rate that is the lesser of—
    - (A) the loan rate established for peanuts under [subsection (b)](#b), plus interest (determined in accordance with [section 7283 of this title](/usc/7/7283.md)); or
    - (B) a rate that the [Secretary](/usc/7/7901.md?p=13) determines will—
      - (i) minimize potential loan forfeitures;
      - (ii) minimize the accumulation of stocks of peanuts by the Federal Government;
      - (iii) minimize the cost incurred by the Federal Government in storing peanuts; and
      - (iv) allow peanuts produced in the [United States](/usc/7/7901.md?p=16) to be marketed freely and competitively, both domestically and internationally.
  - (2) **Good faith exception to beneficial interest requirement—** For the 2002 crop year only, in the case of the [producers](/usc/7/7901.md?p=12) on a farm that marketed or otherwise lost beneficial interest in the peanuts for which a marketing assistance loan was made under this section before repaying the loan, the [Secretary](/usc/7/7901.md?p=13) shall permit the [producers](/usc/7/7901.md?p=12) to repay the loan at the applicable repayment rate that was in effect for peanuts under this subsection on the date that the [producers](/usc/7/7901.md?p=12) lost beneficial interest, as determined by the [Secretary](/usc/7/7901.md?p=13), if the [Secretary](/usc/7/7901.md?p=13) determines the [producers](/usc/7/7901.md?p=12) acted in good faith.
- (e) **Loan deficiency payments—**
  - (1) **Availability—** The [Secretary](/usc/7/7901.md?p=13) may make loan deficiency payments available to [producers](/usc/7/7901.md?p=12) on a farm that, although eligible to obtain a marketing assistance loan for peanuts under [subsection (a)](#a), agree to forgo obtaining the loan for the peanuts in return for loan deficiency payments under this subsection.
  - (2) **Computation—** A loan deficiency payment under this subsection shall be computed by multiplying—
    - (A) the payment rate determined under [paragraph (3)](#e-3) for peanuts; by
    - (B) the quantity of the peanuts produced by the [producers](/usc/7/7901.md?p=12), excluding any quantity for which the [producers](/usc/7/7901.md?p=12) obtain a marketing assistance loan under [subsection (a)](#a).
  - (3) **Payment rate—** For purposes of this subsection, the payment rate shall be the amount by which—
    - (A) the loan rate established under [subsection (b)](#b); exceeds
    - (B) the rate at which a loan may be repaid under [subsection (d)](#d).
  - (4) **Effective date for payment rate determination—**
    - (A) **In general—** The [Secretary](/usc/7/7901.md?p=13) shall determine the amount of the loan deficiency payment to be made under this subsection to the [producers](/usc/7/7901.md?p=12) on a farm with respect to a quantity of peanuts using the payment rate in effect under [paragraph (3)](#e-3) as of the date the [producers](/usc/7/7901.md?p=12) request the payment.
    - (B) **Special rule for 2002 crop year—** For the 2002 crop year only, the [Secretary](/usc/7/7901.md?p=13) shall determine the amount of the loan deficiency payment to be made under this subsection to the [producers](/usc/7/7901.md?p=12) on a farm with respect to a quantity of peanuts using the payment rate in effect under [paragraph (3)](#e-3) as of the earlier of the following:
      - (i) The date on which the [producers](/usc/7/7901.md?p=12) marketed or otherwise lost beneficial interest in the crop, as determined by the [Secretary](/usc/7/7901.md?p=13).
      - (ii) The date the [producers](/usc/7/7901.md?p=12) request the payment.
- (f) **Compliance with conservation and wetlands requirements—** As a condition of the receipt of a marketing assistance loan under [subsection (a)](#a), the [producer](/usc/7/7901.md?p=12) shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 ([16 U.S.C. 3811](/usc/16/3811.md) et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act ([16 U.S.C. 3821](/usc/16/3821.md) et seq.) during the term of the loan.
- (g) **Reimbursable agreements and payment of administrative expenses—** The [Secretary](/usc/7/7901.md?p=13) may implement any reimbursable agreements or provide for the payment of administrative expenses under this subchapter only in a manner that is consistent with such activities in regard to other commodities.

## Source credit

(Pub. L. 107–171, title I, § 1307, May 13, 2002, 116 Stat. 175.)

## Notes

### Editorial Notes

### References in Text

The Food Security Act of 1985, referred to in subsec. (f), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classified generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables.

This subchapter, referred to in subsec. (g), was in the original “this subtitle”, meaning subtitle C (§§ 1301–1310) of Pub. L. 107–171, title I, May 13, 2002, 116 Stat. 166, which is classified principally to this subchapter. For complete classification of subtitle C to the Code, see References in Text note set out under section 7951 of this title and Tables.