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7 U.S.C. § 7216 — Violations of contract
Federal law — U.S. Code and appendices · legal_authorities
**(a) Termination of contract for violation** Except as provided in subsection (b), if an owner or producer subject to a contract violates a requirement of the contract specified in [section 7211(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7211/a&num=0&edition=prelim), the Secretary shall terminate the contract with respect to the owner or producer on each farm in which the owner or producer has an interest. On the termination, the owner or producer shall forfeit all rights to receive future contract payments on each farm in which the owner or producer has an interest and shall refund to the Secretary all contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary.
**(b) Refund or adjustment** If the Secretary determines that a violation does not warrant termination of the contract under subsection (a), the Secretary may require the owner or producer subject to the contract—
(1) to refund to the Secretary that part of the contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary; or
(2) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.
**(c) Foreclosure**
(1) **Effect of foreclosure** — An owner or producer subject to a contract may not be required to make repayments to the Secretary of amounts received under the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate to provide fair and equitable treatment.
(2) **Resumption of ope
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Source location: Title 7, Chapter 100, § 7216; chapter-100-agricultural-market-transition.md
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**(a) Termination of contract for violation** Except as provided in subsection (b), if an owner or producer subject to a contract violates a requirement of the contract specified in [section 7211(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7211/a&num=0&edition=prelim), the Secretary shall terminate the contract with respect to the owner or producer on each farm in which the owner or producer has an interest. On the termination, the owner or producer shall forfeit all rights to receive future contract payments on each farm in which the owner or producer has an interest and shall refund to the Secretary all contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary.
**(b) Refund or adjustment** If the Secretary determines that a violation does not warrant termination of the contract under subsection (a), the Secretary may require the owner or producer subject to the contract—
(1) to refund to the Secretary that part of the contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary; or
(2) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.
**(c) Foreclosure**
(1) **Effect of foreclosure** — An owner or producer subject to a contract may not be required to make repayments to the Secretary of amounts received under the contract if the contract acreage has been foreclosed on and the Secretary determines that forgiving the repayments is appropriate to provide fair and equitable treatment.
(2) **Resumption of operation** — This subsection shall not void the responsibilities of the owner or producer under the contract if the owner or producer continues or resumes operation, or control, of the contract acreage. On the resumption of operation or control over the contract acreage by the owner or producer, the provisions of the contract in effect on the date of the foreclosure shall apply.
**(d) Review** A determination of the Secretary under this section shall be considered to be an adverse decision for purposes of the availability of administrative review of the determination.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Fiscal year amounts** The Secretary shall, to the maximum extent practicable, expend the following amounts to satisfy the obligations of the Secretary under all contracts:
(1) For fiscal year 1996, $5,570,000,000.
(2) For fiscal year 1997, $5,385,000,000.
(3) For fiscal year 1998, $5,800,000,000.
(4) For fiscal year 1999, $5,603,000,000.
(5) For fiscal year 2000, $5,130,000,000.
(6) For fiscal year 2001, $4,130,000,000.
(7) For fiscal year 2002, $4,008,000,000.
**(b) Allocation** The amount made available for a fiscal year under subsection (a) shall be allocated as follows:
(1) For wheat, 26.26 percent.
(2) For corn, 46.22 percent.
(3) For grain sorghum, 5.11 percent.
(4) For barley, 2.16 percent.
(5) For oats, 0.15 percent.
(6) For upland cotton, 11.63 percent.
(7) For rice, 8.47 percent.
**(c) Adjustment** The Secretary shall adjust the amounts allocated for each contract commodity under subsection (b) for a particular fiscal year by—
(1) adding an amount equal to the sum of all repayments of deficiency payments required under section 114(a)(2) of the Agricultural Act of 1949 ([7 U.S.C. 1445j(a)(2)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section1445j/a/2&num=0&edition=prelim)) for the commodity;
(2) adding an amount equal to the sum of all refunds of contract payments received during the preceding fiscal year under [section 7216 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7216&num=0&edition=prelim) for the commodity; and
(3) subtracting an amount equal to the amount, if any, necessary during that fiscal year to satisfy payment requirements for the commodity under sections 103B, 105B, or 107B of the Agricultural Act of 1949 for the 1994 and 1995 crop years.
**(d) Additi
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Federal law — U.S. Code and appendices · legal_authorities
Page 1974
TITLE 7—AGRICULTURE
§ 7214
(Pub. L. 104–127, title I, § 113, Apr. 4, 1996, 110
Stat. 900.)
Editorial Notes
REFERENCES IN TEXT
Sections 103B, 105B, and 107B of the Agricultural Act
of 1949, referred to in subsec. (c)(3), were classified to
sections 1444–2, 1444f, and 1445b–3a, respectively, of this
title prior to repeal by section 7301(b)(2)(A)–(D) of this
title.
Section 1308(1) of this title, referred to in subsecs. (e),
(f), was repealed by Pub. L. 107–171, title I, § 1603(a),
May 13, 2002, 116 Stat. 213.
§ 7214.
Determination
of
contract
payments
under contracts
(a) Individual payment quantity of contract com-
modities
For each contract, the payment quantity of a
contract commodity for each fiscal year shall be
equal to the product of—
(1) 85 percent of the contract acreage; and
(2) the farm program payment yield.
(b) Annual payment quantity of contract com-
modities
The payment quantity of each contract com-
modity covered by all contracts for each fiscal
year shall be equal to the sum of the amounts
calculated under subsection (a) for each indi-
vidual contract.
(c) Annual payment rate
The payment rate for a contract commodity
for each fiscal year shall be equal to—
(1) the amount made available under section
7213 of this title for the contract commodity
for the fiscal year; divided by
(2) the amount determined under subsection
(b) for the fiscal year.
(d) Annual payment amount
The amount to be paid under a contract in ef-
fect for each fiscal year with respect to all con-
tract commodities covered by the contract shall
be equal to the sum of the products of—
(1) the payment quantity determined under
subsection (a) for each of the contract com-
modities covered by the contract; and
(2) the corresponding payment rate for
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