Commodity certificate exchanges
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(a) For any outstanding marketing assistance loan provided for upland or ELS cotton, a producer may purchase a commodity certificate and exchange that commodity certificate for the marketing assistance loan collateral.
(b) The exchange rate is the lesser of:
(1) The loan rate and charges, plus interest applicable to the loan; or
(2) The adjusted world price for upland cotton or ELS cotton as determined by CCC.
(c) Producers must request a commodity certificate exchange on or before loan maturity in person at the FSA county office 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; and
(3) Immediately exchanging the purchased commodity certificate for the outstanding loan collateral.
(d) Gains realized from a commodity certificate exchange are not subject to AGI or payment limitation provisions specified in part 1400 of this chapter.
[86 FR 70706, Dec. 13, 2021, as amended at 91 FR 42332, July 9, 2026]
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.