LOAN DEFICIENCY PAYMENTS.

SEC. 135. LOAN DEFICIENCY PAYMENTS. (a) Availability of Loan Deficiency Payments.— Except as provided in subsection (d), the Secretary may make loan deficiency payments available to producers who, although eligible to obtain a marketing assistance loan under section 131 with respect to a loan commodity, agree to forgo obtaining the loan for the commodity in return for payments under this section. (b) Computation.— A loan deficiency payment under this section shall be computed by multiplying— (1) the loan payment rate determined under subsection (c) for the loan commodity; by (2) the quantity of the loan commodity that the producers on a farm are eligible to place under loan but for which the producers forgo obtaining the loan in return for payments under this section. (c) Loan Payment Rate.— For purposes of this section, the loan payment rate shall be the amount by which— (1) the loan rate established under section 132 for the loan commodity; exceeds (2) the rate at which a loan for the commodity may be repaid under section 134. (d) Exception for Extra Long Staple Cotton.— This section shall not apply with respect to extra long staple cotton.