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Marketing loan repayment provisions

A loan settlement provision, first authorized by the Food Security Act of 1985, that allows producers to repay nonrecourse loans at less than the announced loan rates whenever the world price or loan repayment rate for the commodity is less than the loan rate. Marketing loan provisions became mandatory for soybeans and other oilseeds, upland cotton, and rice and were permitted for wheat, feed grains, and honey under amendments made by the FACT Act of 1990. The FAIR Act of 1996 retains the marketing loan provisions for feed grains, wheat, rice, upland cotton, and oilseeds.


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