# § 9035. Loan deficiency payments
**(a)** **Availability of loan deficiency payments**
**(1)** **In general** section 9031 of this title
Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan under with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for loan deficiency payments under this section.
**(2)** **Unshorn pelts, hay, and silage**
**(A)** **Marketing assistance loans** section 9031 of this title
Subject to subparagraph (B), nongraded wool in the form of unshorn pelts and hay and silage derived from a loan commodity are not eligible for a marketing assistance loan under .
**(B)** **Loan deficiency payment** Effective for each of the 2014 through 2031 crop years, the Secretary may make loan deficiency payments available under this section to producers on a farm that produce unshorn pelts or hay and silage derived from a loan commodity.
**(b)** **Computation** A loan deficiency payment for a loan commodity or commodity referred to in subsection (a)(2) shall be equal to the product obtained by multiplying—
**(1)** the payment rate determined under subsection (c) for the commodity; by
**(2)** the quantity of the commodity produced by the eligible producers, excluding any quantity for which the producers obtain a marketing assistance loan under section 9031 of this title.
**(c)** **Payment rate**
**(1)** **In general** In the case of a loan commodity, the payment rate shall be the amount by which—
**(A)** the loan rate established under section 9032 of this title for the loan commodity; exceeds
**(B)** the rate at which a marketing assistance loan for the loan commodity may be repaid under section 9034 of this title.
**(2)** **Unshorn pelts** In the case of unshorn pelts, the payment rate shall be the amount by which—
**(A)** the loan rate established under section 9032 of this title for ungraded wool; exceeds
**(B)** the rate at which a marketing assistance loan for ungraded wool may be repaid under section 9034 of this title.
**(3)** **Hay and silage** In the case of hay or silage derived from a loan commodity, the payment rate shall be the amount by which—
**(A)** the loan rate established under section 9032 of this title for the loan commodity from which the hay or silage is derived; exceeds
**(B)** the rate at which a marketing assistance loan for the loan commodity may be repaid under section 9034 of this title.
**(d)** **Exception for extra long staple cotton** This section shall not apply with respect to extra long staple cotton.
**(e)** **Effective date for payment rate determination** The Secretary shall determine the amount of the loan deficiency payment to be made under this section to the producers on a farm with respect to a quantity of a loan commodity or commodity referred to in subsection (a)(2) using the payment rate in effect under subsection (c) as of the date the producers request the payment.
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**Source Credit**: (Pub. L. 113–79, title I, § 1205, Feb. 7, 2014, 128 Stat. 679; Pub. L. 115–334, title I, § 1201(c)(1), Dec. 20, 2018, 132 Stat. 4509; Pub. L. 119–21, title I, § 10309(d)(1), July 4, 2025, 139 Stat. 94.)
## Editorial Notes
### Codification
Provisions of law applicable to a loan commodity for the 2023 crop year pursuant to title I of applicable to the 2024 crop year for that loan commodity, see , set out in an Extension of Agricultural Programs note under .
### Amendments
2025—Subsec. (a)(2)(B). substituted “2031” for “2023”.
2018—Subsec. (a)(2)(B). substituted “2023” for “2018”.