[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: 7CFR1421.5]

[Page 429-430]
 
                          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.  1421.5  Eligible commodities.

    (a) Commodities eligible to be pledged as collateral for a loan made 
under this part are:
    (1) Barley, corn, grain sorghum, oats, canola, peanuts, soybeans, 
oilseeds, wheat, dry peas, lentils, small chickpeas, rice and other 
crops designated by CCC produced and mechanically harvested in the 
United States;
    (2) Dual purpose sorghum varieties as determined by CCC; and
    (3) Wool and mohair produced and shorn from live animals in the 
United States.
    (b) A commodity produced on land owned or otherwise in the 
possession of the United States that is occupied without the consent of 
the United States is not an eligible commodity.
    (c)(1) To be an eligible commodity, the commodity must be 
merchantable for food, feed, or other uses determined by CCC and must 
not contain mercurial compounds, toxin producing molds, or other 
substances poisonous to humans or animals. A commodity containing 
vomitoxin, aflatoxin or Aspergillus mold may not be pledged for a loan 
made under this part, except as provided by CCC in the marketing 
assistance loan note and security agreement.
    (2) The determination of class, grade, grading factor, milling 
yields, and other quality factors, including the determination of type, 
quality, and quantity for peanuts:
    (i) With respect to barley, canola, corn, flaxseed, grain sorghum, 
oats,

[[Page 430]]

rice, soybeans, sunflower seed for extraction of oil, wheat and other 
commodities designated by CCC, shall be based upon the Official United 
States Standards for Grain, United States Standards for Whole Dry Peas, 
Split Peas, and Lentils for dry peas and lentils, United States 
Standards for Beans for small chickpeas and the United States Standards 
for Rice as applied to rough rice whether or not such determinations are 
made on the basis of an official inspection.
    (ii) With regard to mustard seed, rapeseed, safflower seed, flaxseed 
and sunflower seed used for a purpose other than to extract oil, shall 
be based on quality requirements established and announced by CCC, 
whether or not such determinations are made on the basis of an official 
inspection. The costs of an official quality determination may be paid 
by CCC. The quality requirements that are used in administering 
marketing assistance loans and loan deficiency payments for the oilseeds 
in this paragraph are available in USDA State and county FSA service 
centers.
    (iii) With regard to farm-stored peanuts, shall be determined at the 
time of delivery to CCC by a Federal or State Inspector authorized or 
licensed by the Secretary.
    (d) Eligible wool and mohair must:
    (1) Have been produced and sheared from live sheep and goats, of 
domestic origin and located in the U.S. for a period of not less than 30 
calendar days prior to shearing.
    (2) Be of merchantable quality deemed by CCC to be suitable for loan 
and must have been shorn in the United States.
    (e) When certifying acreage on farms in which an interest is held, 
the producer must provide acceptable evidence of the commodity from 
which the county committee may determine whether the eligible production 
claimed by the producer is reasonable for the production practices on 
such farm or similar farms in the same county; or have either the 
eligible or ineligible commodity measured by a representative of the 
county FSA service center at the producer's expense, before commingling.
    (f) A commodity that is purchased, substituted, or acquired by sale, 
gift, exchange of an existing harvested, sheared, or slaughtered 
commodity, or through any other transaction is ineligible to be pledged 
as collateral for a marketing assistance loan; in addition a loan 
deficiency payment shall not be made with respect to such commodities.

[67 FR 63511, Oct. 11, 2002, as amended at 71 FR 32422, June 6, 2006]