{"data":{"id":"us/7-cfr-1421.3","jurisdiction":"us","citation":"7 CFR 1421.3","heading":"Definitions.","body":"The definitions in this section apply for all purposes of program administration. Terms defined in part 718 of this title and parts 1412 and 1425 of this chapter also apply, except where they conflict with the definitions in this section.\nAdministrative County Office is the FSA County Office where a producer's FSA records are maintained.\nAMS means the Agricultural Marketing Service of the United States Department of Agriculture.\nBasic loan rate means the loan rate established by CCC for a commodity before any adjustment for premiums and discounts.\nCalling a loan is accelerating or moving forward the maturity date of an outstanding MAL. A MAL can be called when, as determined by CCC, the terms and conditions of the MAL note and security agreement are violated, a producer incorrectly certifies a loan quantity or makes any fraudulent representation with respect to obtaining a loan, removing or disposing of a farm-stored commodity pledged as collateral for a loan without authorization, to protect CCC's interest, or in emergency situations.\nCCC means the Commodity Credit Corporation.\nCharges means all fees, costs, and expenses incurred in insuring, carrying, handling, storing, conditioning, and marketing the commodity tendered to CCC for a MAL. Charges also include any other expenses incurred by CCC in protecting CCC's or the producer's interest in such commodity.\nChickpeas means any chickpea that meets the definition of a chickpea in accordance with the Federal Grain Inspection Service (FGIS) of AMS.\n(1) Small chickpea falls below a 20/64th sieve.\n(2) Large chickpea stays above a 20/64th sieve.\nCMA means a cooperative marketing association that is subject to regulations in Part 1425 of this chapter.\nCOC means the FSA county committee.\nCommodity certificate exchange means the exchange, as provided for in § 1421.111, of commodities pledged as collateral for a marketing assistance loan at a rate determined by CCC in the form of a commodity certificate bearing a dollar denomination.\nCrop means with respect to a year, commodities harvested in that year. Therefore, the referenced crop year of a commodity means commodities that when planted were intended for harvest in that calendar year.\nCurrent net worth ratio means current assets minus current liabilities, divided by current liabilities, based on the financial statement provided in connection with a DMA application or a recertification for DMA status.\nDepartment means the United States Department of Agriculture.\nDeputy Administrator means the Deputy Administrator for Farm Programs, Farm Service Agency (FSA) or a designee of that person.\nDMA Service County Office is an FSA County Office designated by CCC to aid in the processing and servicing of bundled peanut MALs and LDPs to a DMA. In the absence of a centralized MAL and LDP processing system for peanuts, a service county FSA office is necessary for entering MALs and LDPs made by DMAs into CCC accounting systems.\nDesignated Marketing Association (DMA) means an entity, or a subsidiary thereof, that performs marketing functions for peanut producers and is designated to handle MALs and LDPs for them. A DMA is eligible to perform those functions only if the DMA meets the eligibility criteria set out elsewhere in this part.\nElectronic warehouse receipt (EWR) means a receipt electronically filed in a central filing system by an approved provider as provided in an executed, “Agricultural Marketing Service Provider Agreement to Electronically File and Maintain Warehouse Receipts.”\nFedwire participant means a banking institute that participates in the Fedwire Funds Service provided by the Federal Reserve Banks.\nFSA means the Farm Service Agency of the United States Department of Agriculture.\nHigh moisture state means corn or grain sorghum having a moisture content in excess of CCC standards used to determine eligibility for MALs made by the Secretary.\nIncorrect certification means the certifying of a quantity of a commodity for the purpose of obtaining a MAL or LDP in excess of the quantity eligible for such MAL or LDP or the making of any fraudulent representation with respect to obtaining MALs or LDPs.\nLoan commodities means wheat, corn, grain sorghum, barley, oats, rice, soybeans, other oilseeds, peanuts, wool, mohair, dry peas, lentils, chickpeas, and other crops designated by CCC.\nLoan deficiency payment (LDP) means a payment made in lieu of a MAL when the CCC-determined value, which is based on the current local price in a county, is below the applicable county loan rate. The payment is the difference between the two rates times the eligible quantity.\nLoan settlement means farm stored commodities delivered to CCC and warehouse stored commodities forfeited to CCC, for the applicable crop years.\nLocked in repayment rate means an announced repayment rate on a disbursed MAL that the producer has locked in for 60 calendar days. All locked in repayment rates expire within 14 calendar days before the loan maturity date. MAL can be repaid either at principal plus interest or the repayment rate in effect on the date the repayment is made. The repayment rate can only be locked in one time for a designated quantity and, if multiple locked in repayment rates are in effect for quantities under MAL that have not had a locked in repayment rate, the oldest rate is always applied first.\nMAL means marketing assistance loan.\nMarket loan gain is the loan rate, minus the repayment rate on loans repaid at a rate that is less than the loan rate. A producer's adjusted gross income must be below the limit as specified in part 1400 of this chapter to receive a market loan gain.\nMedium grain rice for the purposes of this part includes both short and medium grain rice as defined by the U.S. Standards for Rice.\nMohair means the hair sheared from a live Angora goat. Mohair does not include pelts, or hides or mohair shorn from pelts or hides.\nOilseeds means any crop of sunflower seed, canola, rapeseed, safflower, flaxseed, mustard seed, crambe, sesame seed, and other oilseeds as determined and announced by CCC.\nOther crops designated by CCC means with respect to eligibilities for benefits under this part:\n(1) Those crops harvested as other than grain, such as silage, haylage, earlage;\n(2) Specific crops designated for grazing; or\n(3) As otherwise designated by CCC.\nPulse crops means any crop of dry peas, lentils, and chickpeas as defined by CCC.\nRecording FSA County Office is the FSA County Office that records eligibility data for producers designated as multi-county producers.\nRice means, unless otherwise noted, long grain rice and medium grain rice.\nSecretary means the Secretary of the United States Department of Agriculture, or the Secretary's delegate.\nSecurity for DMAs means a certified or cashier's check payable to CCC, an irrevocable commercial letter of credit in a form acceptable to CCC, a performance or surety bond conditioned on the DMA fully discharging all of its obligations under this part, or other form of financial security as CCC may deem appropriate.\nServicing agent bank means the bank designated as the financial institution for a CMA or a designated marketing association.\nSTC means the FSA State committee.\nUnauthorized disposition means the conversion of any MAL quantity pledged as collateral for a farm-stored MAL without prior written authorization from the county committee.\nUnauthorized removal means the movement of any farm-stored loan quantity from the storage structure in which the commodity was stored or structures that were designated when the MAL was approved to any other storage structure, whether or not such structure is located on the producer's farm, without prior written authorization from the county committee.\nUnshorn pelt means the removed skin and attached wool from a slaughtered lamb that has never been shorn.\nWarehouse receipt means a receipt containing the required information prescribed in this part and is:\n(1) A pre-numbered, negotiable warehouse receipt issued under the authority of the U.S. Warehouse Act, a state licensing authority, or by an approved CCC warehouse in such format authorized and approved, in advance, by CCC;\n(2) An electronic warehouse receipt (EWR) issued by such warehouse recorded in a central filing system or system maintained in one or more locations which are approved by AMS to operate such system; or\n(3) Other such acceptable evidence of title, as determined by CCC.\nWool means the fiber sheared from a live sheep and includes, unless noted otherwise, graded and nongraded wool.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE","SUBCHAPTER B—LOANS, PURCHASES, AND OTHER OPERATIONS","PART 1421—GRAINS AND SIMILARLY HANDLED COMMODITIES—MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS","Subpart A—General"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"5df595e32912fd74ff01f1f06ee0a542afa98b306317bd7824fc56ff02259b32","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-1421.2","next":"us/7-cfr-1421.4"},"notice":"GroundRules: Original legal text. Not legal advice."}