[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1421.200]

[Page 448]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1421_GRAINS AND SIMILARLY HANDLED COMMODITIES_MARKETING ASSISTANCE LOANS 
 
                   Subpart C_Loan Deficiency Payments
 
Sec.  1421.200  Applicability.

    Source: 67 FR 63511, Oct. 11, 2002, unless otherwise noted.


    (a) During the loan availability period, loan deficiency payments 
will be made available to eligible producers when the alternative 
repayment rate is less than the applicable county loan rate.
    (b) To be eligible to receive loan deficiency payments a producer 
must:
    (1) Comply with all marketing assistance loan eligibility including 
beneficial interest requirements.
    (2) Agree to forgo obtaining such loan, if applicable; and
    (3) File in person, by mail or electronically a request for payment 
on a form prescribed by CCC; and
    (4) Otherwise comply with all program requirements.
    (c)(1) A producer must submit a completed request for a loan 
deficiency payment agreement and request form on or before the date 
beneficial interest is lost in the commodity and before the final loan 
availability date for the commodity. Producers must, on a form 
prescribed by CCC, indicate their intentions, in which the producer also 
agrees to the terms and conditions of the loan deficiency payment 
program, to receive a loan deficiency payment and submit the prescribed 
form to the FSA Service Center on or before beneficial interest is lost 
in such quantity. A producer may not obtain loan deficiency payment 
benefits, if the applicable form is not received in the FSA Service 
Center on or before beneficial interest is lost in the requested 
commodity.
    (2) With respect to a request for a loan deficiency payment for 
unshorn pelts, a completed request for such a payment must be submitted 
on or before the earlier of the date of slaughter of the lamb or the 
loss of beneficial interest in the lamb or the unshorn pelt produced 
from the lamb. In addition, the lamb must have been owned for not less 
than 30 days prior to the date such application is filed with CCC and 
must have been slaughtered for personal use, or sold for slaughter and 
slaughtered within 10 calendar days after the sale.
    (d) For unshorn pelts, the lamb must be owned for a period of not 
less than 30 days in advance of the application and sold for immediate 
slaughter or slaughtered for personal use. Producers must submit 
acceptable production evidence to CCC under Sec.  1421.12 at the time of 
request. Producers who do not sell lambs for immediate slaughter are 
ineligible for a loan deficiency payment.

[67 FR 63511, Oct. 11, 2002, as amended at 71 FR 32425, June 6, 2006]