Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan rate. The borrower may repay the loan, with interest, within a specified period and regain control of the commodity. Alternatively, the commodity can be forfeited to the CCC at the end of the term with no penalty. The government takes no recourse beyond accepting the commodity as full settlement of the loan. The loans provide operating capital to producers of wheat, feed grains, cotton, peanuts, tobacco, rice, and oilseeds. Dairy processors (until 2000) and sugar processors (when imports are equal to or greater than 1.5 million short tons) are also eligible for nonrecourse loans. In the past, loan rates sometimes exceeded market prices. The CCC then became an alternative purchaser to the market, thereby supporting prices. For those commodities eligible for marketing assistance loan benefits, producers may repay the loan at the world price (rice and upland cotton) or posted county price (wheat, feed grains, and oilseeds).

 

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Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan . . . View Full Definition

Marketing Assistance Loans: 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 . . . View Full Definition

Section 502 Loans: A rural housing loan program, administered by the Rural Housing Service (RHS), authorized under Section 502 of the Housing Act of 1949. Borrowers may obtain loans for purchasing or repairing . . . View Full Definition

Rural Multifamily Housing Loans: Section 515 loans are available through the Rural Housing Service for providing rental housing for low- and moderate-income families in rural areas, and for congregate housing for the elderl . . . View Full Definition