[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: 7CFR1421.201]

[Page 448-449]
 
                          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.  1421.201  Loan deficiency payment rate.

    (a) The loan deficiency payment rate for a crop shall be the amount 
by which the loan rate for the crop exceeds the rate at which CCC has 
announced that producers may repay their loans under Sec.  1421.10.
    (b) The loan deficiency payment rate will be:
    (1) For 2005 and preceding crop years, for loan deficiency payment 
other than field direct loan deficiency payments, the rate in effect in 
the county where the commodity is stored as of the day the producer 
submits to the FSA county service center a completed request for 
payments;
    (2) For 2005 and preceding crop years, for field direct loan 
deficiency payments, the rate in effect for the county in which the farm 
is administratively located for CCC program purposes as of the date the 
commodity was delivered to a processor, buyer warehouse, cooperative 
marketing association, or similar entity.
    (3) For 2006 and subsequent crop years, the loan deficiency payment 
rate in effect in the county where the commodity was marketed or stored 
on the date:
    (i) The request for benefits is received in the FSA Service Center, 
if the producer retains beneficial interest in the quantity on that 
date.
    (ii) Beneficial interest was lost, as determined by CCC and as 
provided in Sec. Sec.  1421.6 and 1421.13, if on the date the request 
for benefits was received in the FSA Service Center the producer no 
longer has beneficial interest in the requested quantity.

[[Page 449]]

    (iii) The commodity is delivered, if the producer elects to receive 
the LDP rate based on the date of delivery.
    (c) The loan deficiency payment applicable to such crop shall be 
computed by multiplying the loan deficiency payment rate, as determined 
under paragraph (b) of this section, by the quantity of the crop the 
producer is eligible to pledge as collateral for a nonrecourse loan for 
which the loan deficiency payment is requested.

[67 FR 63511, Oct. 11, 2002, as amended at 71 FR 32425, June 6, 2006; 71 
FR 51426, Aug. 30, 2006]