Commodity certificate exchanges.

(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]