Marketing assistance loans

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Nonrecourse loans made available to producers of wheat, feed grains, upland and ELS cotton, rice, soybeans, and minor oilseeds under the Agricultural Market Transition Act provisions in the FAIR Act of 1996. The new law largely continues the commodity loan programs as they were under previous law. Loan rate caps are specified in the law. Marketing loan repayment provisions apply should market prices drop below the loan rates. For farmers who forego the use of marketing assistance loans, loan deficiency payment rules apply.

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