---
kind: "section"
citation: "7 U.S.C. § 9035"
title: "7"
title_heading: "Agriculture"
number: "9035"
heading: "Loan deficiency payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/9035"
units:
  - "Chapter 115 — Agricultural Commodity Policy and Programs"
  - "Subchapter II — Marketing Loans"
---

# §9035. Loan deficiency payments

- (a) **Availability of loan deficiency payments—**
  - (1) **In general—** Except as provided in [subsection (d)](#d), the [Secretary](/usc/7/9011.md?p=20) may make loan deficiency payments available to [producers](/usc/7/9011.md?p=17-A) on a farm that, although eligible to obtain a marketing assistance loan under [section 9031 of this title](/usc/7/9031.md) with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
  - (2) **Unshorn pelts, hay, and silage—**
    - (A) **Marketing assistance loans—** Subject to [subparagraph (B)](#a-2-B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under [section 9031 of this title](/usc/7/9031.md).
    - (B) **Loan deficiency payment—** Effective for each of the 2014 through 2031 crop years, the [Secretary](/usc/7/9011.md?p=20) may make loan deficiency payments available under this section to [producers](/usc/7/9011.md?p=17-A) on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
- (b) **Computation—** A loan deficiency payment for a loan commodity or commodity referred to in [subsection (a)(2)](#a-2) shall be equal to the product obtained by multiplying—
  - (1) the payment rate determined under [subsection (c)](#c) for the commodity; by
  - (2) the quantity of the commodity produced by the eligible [producers](/usc/7/9011.md?p=17-A), excluding any quantity for which the [producers](/usc/7/9011.md?p=17-A) obtain a marketing assistance loan under [section 9031 of this title](/usc/7/9031.md).
- (c) **Payment rate—**
  - (1) **In general—** In the case of a loan commodity, the payment rate shall be the amount by which—
    - (A) the loan rate established under [section 9032 of this title](/usc/7/9032.md) for the loan commodity; exceeds
    - (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under [section 9034 of this title](/usc/7/9034.md).
  - (2) **Unshorn pelts—** In the case of unshorn pelts, the payment rate shall be the amount by which—
    - (A) the loan rate established under [section 9032 of this title](/usc/7/9032.md) for ungraded wool; exceeds
    - (B) the rate at which a marketing assistance loan for ungraded wool may be repaid under [section 9034 of this title](/usc/7/9034.md).
  - (3) **Hay and silage—** In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
    - (A) the loan rate established under [section 9032 of this title](/usc/7/9032.md) for the loan commodity from which the hay or silage is derived; exceeds
    - (B) the rate at which a marketing assistance loan for the loan commodity may be repaid under [section 9034 of this title](/usc/7/9034.md).
- (d) **Exception for extra long staple cotton—** This section shall not apply with respect to [extra long staple cotton](/usc/7/9011.md?p=9).
- (e) **Effective date for payment rate determination—** The [Secretary](/usc/7/9011.md?p=20) shall determine the amount of the loan deficiency payment to be made under this section to the [producers](/usc/7/9011.md?p=17-A) on a farm with respect to a quantity of a loan commodity or commodity referred to in [subsection (a)(2)](#a-2) using the payment rate in effect under [subsection (c)](#c) as of the date the [producers](/usc/7/9011.md?p=17-A) request the payment.

## Source credit

(Pub. L. 113–79, title I, § 1205, Feb. 7, 2014, 128 Stat. 679; Pub. L. 115–334, title I, § 1201(c)(1), Dec. 20, 2018, 132 Stat. 4509; Pub. L. 119–21, title I, § 10309(d)(1), July 4, 2025, 139 Stat. 94.)

## Notes

### Editorial Notes

### Codification

Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of Pub. L. 113–79 applicable to the 2024 crop year for that loan commodity, see section 102(c)(1) of Pub. L. 118–22, set out in an Extension of Agricultural Programs note under section 9001 of this title.

### Amendments

2025—Subsec. (a)(2)(B). Pub. L. 119–21 substituted “2031” for “2023”.

2018—Subsec. (a)(2)(B). Pub. L. 115–334 substituted “2023” for “2018”.