---
kind: "section"
citation: "7 U.S.C. § 8734"
title: "7"
title_heading: "Agriculture"
number: "8734"
heading: "Repayment of loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/8734"
units:
  - "Chapter 113 — Agricultural Commodity Support Programs"
  - "Subchapter II — Marketing Assistance Loans and Loan Deficiency Payments"
---

# §8734. Repayment of loans

- (a) **General rule—** The [Secretary](/usc/7/499a.md?p=b-2) shall permit the [producers](/usc/7/8702.md?p=13-A) on a farm to repay a marketing assistance loan under [section 8731 of this title](/usc/7/8731.md) for a [loan commodity](/usc/7/8702.md?p=8) (other than upland cotton, long grain rice, [medium grain rice](/usc/7/8702.md?p=9), [extra long staple cotton](/usc/7/8702.md?p=7), and confectionery and each other kind of sunflower seed (other than oil sunflower seed)) at a rate that is the lesser of—
  - (1) the loan rate established for the commodity under [section 8732 of this title](/usc/7/8732.md), plus interest (determined in accordance with [section 7283 of this title](/usc/7/7283.md));
  - (2) a rate (as determined by the [Secretary](/usc/7/499a.md?p=b-2)) that—
    - (A) is calculated based on average [market](/usc/7/198.md?p=1) prices for the [loan commodity](/usc/7/8702.md?p=8) during the preceding 30-day period; and
    - (B) will minimize discrepancies in marketing loan benefits across [State](/usc/7/8702.md?p=15) boundaries and across county boundaries; or
  - (3) a rate that the [Secretary](/usc/7/499a.md?p=b-2) may develop using alternative methods for calculating a repayment rate for a [loan commodity](/usc/7/8702.md?p=8) that the [Secretary](/usc/7/499a.md?p=b-2) 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;
    - (D) allow the commodity produced in the [United States](/usc/7/8702.md?p=17) to be marketed freely and competitively, both domestically and internationally; and
    - (E) minimize discrepancies in marketing loan benefits across [State](/usc/7/8702.md?p=15) boundaries and across county boundaries.
- (b) **Repayment rates for upland cotton, long grain rice, and medium grain rice—** The [Secretary](/usc/7/499a.md?p=b-2) shall permit [producers](/usc/7/8702.md?p=13-A) to repay a marketing assistance loan under [section 8731 of this title](/usc/7/8731.md) for upland cotton, long grain rice, and [medium grain rice](/usc/7/8702.md?p=9) at a rate that is the lesser of—
  - (1) the loan rate established for the commodity under [section 8732 of this title](/usc/7/8732.md), plus interest (determined in accordance with [section 7283 of this title](/usc/7/7283.md)); or
  - (2) the prevailing world [market](/usc/7/198.md?p=1) price for the commodity, as determined and adjusted by the [Secretary](/usc/7/499a.md?p=b-2) in accordance with this section.
- (c) **Repayment rates for extra long staple cotton—** Repayment of a marketing assistance loan for [extra long staple cotton](/usc/7/8702.md?p=7) shall be at the loan rate established for the commodity under [section 8732 of this title](/usc/7/8732.md), plus interest (determined in accordance with [section 7283 of this title](/usc/7/7283.md)).
- (d) **Prevailing world market price—** For purposes of this section and [section 8737 of this title](/usc/7/8737.md), the [Secretary](/usc/7/499a.md?p=b-2) shall prescribe by regulation—
  - (1) a formula to determine the prevailing world [market](/usc/7/198.md?p=1) price for each of upland cotton, long grain rice, and [medium grain rice](/usc/7/8702.md?p=9); and
  - (2) a mechanism by which the [Secretary](/usc/7/499a.md?p=b-2) shall announce periodically those prevailing world [market](/usc/7/198.md?p=1) prices.
- (e) **Adjustment of prevailing world market price for upland cotton, long grain rice, and medium grain rice—**
  - (1) **Rice—** The prevailing world [market](/usc/7/198.md?p=1) price for long grain rice and [medium grain rice](/usc/7/8702.md?p=9) determined under [subsection (d)](#d) shall be adjusted to [United States](/usc/7/8702.md?p=17) quality and location.
  - (2) **Cotton—** The prevailing world [market](/usc/7/198.md?p=1) price for upland cotton determined under [subsection (d)](#d)—
    - (A) shall be adjusted to [United States](/usc/7/8702.md?p=17) quality and location, with the adjustment to include—
      - (i) a reduction equal to any [United States Premium Factor](/usc/7/8702.md?p=18) for upland cotton of a quality higher than Middling (M) 1<sup>3</sup>⁄<sub>32</sub>-inch; and
      - (ii) the average costs to [market](/usc/7/198.md?p=1) the commodity, including average transportation costs, as determined by the [Secretary](/usc/7/499a.md?p=b-2); and
    - (B) may be further adjusted, during the period beginning on the date of enactment of this Act and ending on July 31, 2013, if the [Secretary](/usc/7/499a.md?p=b-2) determines the adjustment is necessary to—
      - (i) minimize potential loan forfeitures;
      - (ii) minimize the accumulation of stocks of upland cotton by the Federal Government;
      - (iii) ensure that upland cotton produced in the [United States](/usc/7/8702.md?p=17) can be marketed freely and competitively, both domestically and internationally; and
      - (iv) ensure an appropriate transition between current-crop and forward-crop price quotations, except that the [Secretary](/usc/7/499a.md?p=b-2) may use forward-crop price quotations prior to July 31 of a marketing year only if—
        - (I) there are insufficient current-crop price quotations; and
        - (II) the forward-crop price quotation is the lowest such quotation available.
  - (3) **Guidelines for additional adjustments—** In making adjustments under this subsection, the [Secretary](/usc/7/499a.md?p=b-2) shall establish a mechanism for determining and announcing the adjustments in order to avoid undue disruption in the [United States](/usc/7/8702.md?p=17) [market](/usc/7/198.md?p=1).
- (f) **Repayment rates for confectionery and other kinds of sunflower seeds—** The [Secretary](/usc/7/499a.md?p=b-2) shall permit the [producers](/usc/7/8702.md?p=13-A) on a farm to repay a marketing assistance loan under [section 8731 of this title](/usc/7/8731.md) for confectionery and each other kind of sunflower seed (other than oil sunflower seed) at a rate that is the lesser of—
  - (1) the loan rate established for the commodity under [section 8732 of this title](/usc/7/8732.md), plus interest (determined in accordance with [section 7283 of this title](/usc/7/7283.md)); or
  - (2) the repayment rate established for oil sunflower seed.
- (g) **Payment of cotton storage costs—**
  - (1) **2008 through 2011 crop years—** Effective for each of the 2008 through 2011 crop years, the [Secretary](/usc/7/499a.md?p=b-2) shall provide cotton storage payments in the same manner, and at the same rates as the [Secretary](/usc/7/499a.md?p=b-2) provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 10 percent.
  - (2) **Subsequent crop years—** Beginning with the 2012 crop year, the [Secretary](/usc/7/499a.md?p=b-2) shall provide cotton storage payments in the same manner, and at the same rates as the [Secretary](/usc/7/499a.md?p=b-2) provided storage payments for the 2006 crop of cotton, except that the rates shall be reduced by 20 percent.
- (h) **Authority to temporarily adjust repayment rates—**
  - (1) **Adjustment authority—** In the event of a severe disruption to marketing, transportation, or related infrastructure, the [Secretary](/usc/7/499a.md?p=b-2) may modify the repayment rate otherwise applicable under this section for marketing assistance loans under [section 8731 of this title](/usc/7/8731.md) for a [loan commodity](/usc/7/8702.md?p=8).
  - (2) **Duration—** Any adjustment made under [paragraph (1)](#h-1) in the repayment rate for marketing assistance loans for a [loan commodity](/usc/7/8702.md?p=8) shall be in effect on a short-term and temporary basis, as determined by the [Secretary](/usc/7/499a.md?p=b-2).

## Source credit

(Pub. L. 110–234, title I, § 1204, May 22, 2008, 122 Stat. 956; Pub. L. 110–246, § 4(a), title I, § 1204, June 18, 2008, 122 Stat. 1664, 1684.)

## Notes

### Editorial Notes

### References in Text

The date of enactment of this Act, referred to in subsec. (e)(2)(B), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.