[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: 7CFR1421.4]

[Page 428-429]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1421_GRAINS AND SIMILARLY HANDLED COMMODITIES_MARKETING ASSISTANCE LOANS 
 
                            Subpart A_General
 
Sec.  1421.4  Eligible producers.

    (a) To be an eligible producer, the producer must:
    (1) Be an individual, partnership, association, corporation, estate, 
trust, State or political subdivision or agency thereof, or other legal 
entity that produces an eligible commodity as a landowner, landlord, 
tenant, or sharecropper, or in the case of rice, furnishes land, labor, 
water, or equipment for a share of the rice crop. With respect to wool 
and mohair, the producer must own, other than through a security 
interest mortgage, or lien, the sheep and goats that produced the wool 
and mohair respectively for a period of not less than 30 days.
    (2) Comply with all provision of this part and:
    (i) 7 CFR part 12--Highly Erodible Land and Wetland Conservation;
    (ii) 7 CFR part 718--Provisions Applicable to Multiple Programs;
    (iii) 7 CFR part 1400--Payment Limitation & Payment Eligibility;
    (iv) 7 CFR part 1403--Debt Settlement Policies and Procedures;
    (v) 7 CFR part 1405--Loans, Purchases and Other Operations.
    (3) Have made an acreage certification with respect to all the 
cropland on the farm.
    (b) A receiver or trustee of an insolvent or bankrupt debtor's 
estate, an executor or an administrator of a deceased person's estate, a 
guardian of an estate of a ward or an incompetent person, and trustees 
of a trust shall be considered to represent the insolvent or bankrupt 
debtor, the deceased person, the ward or incompetent, and the 
beneficiaries of a trust, respectively. The production of the receiver, 
executor, administrator, guardian, or trustee shall be considered to be 
the production of the person or estate represented by the receiver, 
executor, administrator, guardian, or trustee. Marketing assistance 
loans and loan deficiency payment documents executed by any such person 
will be accepted by CCC only if they are legally valid and such person 
has the authority to sign the applicable documents.
    (c) A minor who is otherwise an eligible producer is eligible to 
receive marketing assistance loans or loan deficiency payments only if 
the minor meets one of the following requirements:
    (1) The right of majority has been conferred on the minor by court 
proceedings or by statute;
    (2) A guardian has been appointed to manage the minor's property and 
the applicable marketing assistance loan or loan deficiency payment 
documents are signed by the guardian;

[[Page 429]]

    (3) Any note or loan deficiency payment program application signed 
by the minor is cosigned by a person determined by the county committee 
to be financially responsible; or
    (4) A bond is furnished under which a surety guarantees to protect 
CCC from any loss incurred for which the minor would be liable had the 
minor been an adult.
    (d) If more than one producer executes a note and security agreement 
with CCC, each such producer shall be jointly and severally liable for 
the violation of the terms and conditions of the note and the 
regulations in this part. Each such producer shall also remain liable 
for repayment of the entire marketing assistance loan amount until the 
loan is fully repaid without regard to such producer's claimed share in 
the commodity pledged as collateral for the loan. In addition, such 
producer may not amend the note and security agreement with respect to 
the producer's claimed share in such commodities, or loan proceeds, 
after execution of the note and security agreement by CCC.
    (e)(1) The county committee may deny a producer a marketing 
assistance loan on farm-stored commodities if the producer has:
    (i) Made a misrepresentation in connection with the marketing 
assistance loan or LDP program;
    (ii) Previously not allowed a representative access to the site 
where commodities pledged as collateral for CCC loans were stored or 
otherwise failed to corporate in the settlement of a marketing 
assistance loan; or
    (iii) Failed to adequately protect the interests of CCC in the 
commodity pledged as collateral for a farm-stored loan.
    (2) A producer who is denied a farm-stored loan will be eligible to 
pledge a commodity as collateral for a warehouse-stored loan or provide 
some other form of financial assurance to obtain a farm-stored loan.
    (f) A CMA may obtain a marketing assistance loan and loan deficiency 
payment on eligible production of a loan commodity on behalf of its 
members who are eligible to receive marketing assistance loans or loan 
deficiency payments with respect to a crop of a commodity. For purposes 
of this subpart, the term ``producer'' includes a CMA.
    (g) In case of the death, incompetency, or disappearance of any 
producer who is entitled to the payment of any sum in settlement of a 
marketing assistance loan or loan deficiency payment, payment shall, 
upon proper application to the FSA county service center that disbursed 
the marketing assistance loan or loan deficiency payment, be made to the 
persons who would be entitled to such producer's payment under the 
regulations contained in part 707 of this title.