7 CFR 1421.110
§ 1421.110 Commodity certificate exchanges.
United States · 7 CFR — Agriculture · Status: effective
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- Citation
- 7 CFR 1421.110, § 1421.110 Commodity certificate exchanges, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/25682
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Full text
(a) For any outstanding marketing assistance loan, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral.
(b) The exchange rate is the lessor of:
(1) The loan rate and charges, plus interest applicable to the loan; or
(2) The prevailing world market price, as determined by CCC, or the alternative repayment rate for all other commodities, as determined by CCC.
(c) Commodity certificate exchanges may not be used when locking in a repayment rate under § 1421.10.
(d) Producers must request a commodity certificate exchange on or before loan maturity in person at the FSA county office that disbursed the marketing assistance loan by:
(1) Completing a written request on the form or providing the information as required by CCC;
(2) Purchasing a commodity certificate for the exact amount required to exchange the marketing assistance loan collateral; or
(3) Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.
(e) Loan gains realized from a commodity certificate exchange are not subject to AGI provisions specified in part 1400 of this chapter.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.