--- kind: "section" citation: "7 U.S.C. § 8736" title: "7" title_heading: "Agriculture" number: "8736" heading: "Payments in lieu of loan deficiency payments for grazed acreage" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/8736" units: - "Chapter 113 — Agricultural Commodity Support Programs" - "Subchapter II — Marketing Assistance Loans and Loan Deficiency Payments" --- # §8736. Payments in lieu of loan deficiency payments for grazed acreage - (a) **Eligible producers—** - (1) **In general—** Effective for the 2008 through 2012 crop years, in the case of a [producer](/usc/7/8702.md?p=13-A) that would be eligible for a loan deficiency payment under [section 8735 of this title](/usc/7/8735.md) for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the [Secretary](/usc/7/499a.md?p=b-2) shall make a payment to the [producer](/usc/7/8702.md?p=13-A) under this section if the [producer](/usc/7/8702.md?p=13-A) enters into an agreement with the [Secretary](/usc/7/499a.md?p=b-2) to forgo any other harvesting of the wheat, barley, or oats on that acreage. - (2) **Grazing of triticale acreage—** Effective for the 2008 through 2012 crop years, with respect to a [producer](/usc/7/8702.md?p=13-A) on a farm that uses acreage planted to triticale for the grazing of livestock, the [Secretary](/usc/7/499a.md?p=b-2) shall make a payment to the [producer](/usc/7/8702.md?p=13-A) under this section if the [producer](/usc/7/8702.md?p=13-A) enters into an agreement with the [Secretary](/usc/7/499a.md?p=b-2) to forgo any other harvesting of triticale on that acreage. - (b) **Payment amount—** - (1) **In general—** The amount of a payment made under this section to a [producer](/usc/7/8702.md?p=13-A) on a farm described in [subsection (a)(1)](#a-1) shall be equal to the amount determined by multiplying— - (A) the loan deficiency payment rate determined under [section 8735(c) of this title](/usc/7/8735.md?p=c) in effect, as of the date of the agreement, for the county in which the farm is located; by - (B) the payment quantity determined by multiplying— - (i) the quantity of the grazed acreage on the farm with respect to which the [producer](/usc/7/8702.md?p=13-A) elects to forgo harvesting of wheat, barley, or oats; and - (ii) the [payment yield](/usc/7/8702.md?p=12) in effect for the calculation of [direct payments](/usc/7/8702.md?p=5) under subchapter I with respect to that [loan commodity](/usc/7/8702.md?p=8) on the farm or, in the case of a farm without a [payment yield](/usc/7/8702.md?p=12) for that [loan commodity](/usc/7/8702.md?p=8), an appropriate yield established by the [Secretary](/usc/7/499a.md?p=b-2) in a manner consistent with [section 7912 of this title](/usc/7/7912.md). - (2) **Grazing of triticale acreage—** The amount of a payment made under this section to a [producer](/usc/7/8702.md?p=13-A) on a farm described in [subsection (a)(2)](#a-2) shall be equal to the amount determined by multiplying— - (A) the loan deficiency payment rate determined under [section 8735(c) of this title](/usc/7/8735.md?p=c) in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by - (B) the payment quantity determined by multiplying— - (i) the quantity of the grazed acreage on the farm with respect to which the [producer](/usc/7/8702.md?p=13-A) elects to forgo harvesting of triticale; and - (ii) the [payment yield](/usc/7/8702.md?p=12) in effect for the calculation of [direct payments](/usc/7/8702.md?p=5) under subchapter I with respect to wheat on the farm or, in the case of a farm without a [payment yield](/usc/7/8702.md?p=12) for wheat, an appropriate yield established by the [Secretary](/usc/7/499a.md?p=b-2) in a manner consistent with [section 7912 of this title](/usc/7/7912.md). - (c) **Time, manner, and availability of payment—** - (1) **Time and manner—** A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under [section 8735 of this title](/usc/7/8735.md). - (2) **Availability—** - (A) **In general—** The [Secretary](/usc/7/499a.md?p=b-2) shall establish an availability period for the payments authorized by this section. - (B) **Certain commodities—** In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the [Secretary](/usc/7/499a.md?p=b-2) for marketing assistance loans authorized by this subchapter. - (d) **Prohibition on crop insurance indemnity or noninsured crop assistance—** A 2008 through 2012 crop of wheat, barley, oats, or triticale planted on acreage that a [producer](/usc/7/8702.md?p=13-A) elects, in the agreement required by [subsection (a)](#a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under a policy or plan of insurance authorized under the Federal Crop Insurance Act ([7 U.S.C. 1501](/usc/7/1501.md) et seq.) or noninsured crop assistance under [section 7333 of this title](/usc/7/7333.md). ## Source credit (Pub. L. 110–234, title I, § 1206, May 22, 2008, 122 Stat. 959; Pub. L. 110–246, § 4(a), title I, § 1206, June 18, 2008, 122 Stat. 1664, 1687.) ## Notes ### Editorial Notes ### References in Text The Federal Crop Insurance Act, referred to in subsec. (d), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to subchapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see section 1501 of this title and Tables. ### 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.