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7 U.S.C. § 197a — Production contracts
Federal law — U.S. Code and appendices · legal_authorities
**(a) Right of contract producers to cancel production contracts**
(1) **In general** — A poultry grower or swine production contract grower may cancel a poultry growing arrangement or swine production contract by mailing a cancellation notice to the live poultry dealer or swine contractor not later than the later of—
(A) the date that is 3 business days after the date on which the poultry growing arrangement or swine production contract is executed; or
(B) any cancellation date specified in the poultry growing arrangement or swine production contract.
(2) **Disclosure** — A poultry growing arrangement or swine production contract shall clearly disclose—
(A) the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract;
(B) the method by which the poultry grower or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and
(C) the deadline for canceling the poultry growing arrangement or swine production contract.
**(b) Required disclosure of additional capital investments in production contracts**
(1) **In general** — A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as “Additional Capital Investments Disclosure Statement”, which shall conspicuously state that additional large capital investments may be required of the poultry grower or swine production contract grower during the term of the poultry growing arrangement or swine production contract.
(2) **Application** — Paragraph (1) shall apply to any poultry growing arrangement or swine production contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this s
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Source location: Title 7, Chapter 9, § 197a; chapter-009-packers-and-stockyards.md
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**(a) Right of contract producers to cancel production contracts**
(1) **In general** — A poultry grower or swine production contract grower may cancel a poultry growing arrangement or swine production contract by mailing a cancellation notice to the live poultry dealer or swine contractor not later than the later of—
(A) the date that is 3 business days after the date on which the poultry growing arrangement or swine production contract is executed; or
(B) any cancellation date specified in the poultry growing arrangement or swine production contract.
(2) **Disclosure** — A poultry growing arrangement or swine production contract shall clearly disclose—
(A) the right of the poultry grower or swine production contract grower to cancel the poultry growing arrangement or swine production contract;
(B) the method by which the poultry grower or swine production contract grower may cancel the poultry growing arrangement or swine production contract; and
(C) the deadline for canceling the poultry growing arrangement or swine production contract.
**(b) Required disclosure of additional capital investments in production contracts**
(1) **In general** — A poultry growing arrangement or swine production contract shall contain on the first page a statement identified as “Additional Capital Investments Disclosure Statement”, which shall conspicuously state that additional large capital investments may be required of the poultry grower or swine production contract grower during the term of the poultry growing arrangement or swine production contract.
(2) **Application** — Paragraph (1) shall apply to any poultry growing arrangement or swine production contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this section.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Definitions** In this section:
(1) **Agricultural commodity** — The term “agricultural commodity” has the meaning given the term in [section 5602 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section5602&num=0&edition=prelim).
(2) **Geographically disadvantaged farmer or rancher** — The term “geographically disadvantaged farmer or rancher” has the meaning given the term in section 10906(a) of the Farm Security and Rural Investment Act of 2002 ([7 U.S.C. 2204](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section2204&num=0&edition=prelim) note; Public Law 107–171).
**(b) Authorization** Subject to the availability of funds under subsection (d), the Secretary may provide geographically disadvantaged farmers or ranchers direct reimbursement payments for activities described in subsection (c).
**(c) Transportation**
(1) **In general** — Subject to paragraphs (2) and (3), the Secretary may provide direct reimbursement payments to a geographically disadvantaged farmer or rancher to transport an agricultural commodity, or inputs used to produce an agricultural commodity, during a fiscal year.
(2) **Proof of eligibility** — To be eligible to receive assistance under paragraph (1), a geographically disadvantaged farmer or rancher shall demonstrate to the Secretary that transportation of the agricultural commodity or inputs occurred over a distance of more than 30 miles, as determined by the Secretary.
(3) **Amount**
(A) *In general* — Subject to paragraph (2), the amount of direct reimbursement payments made to a geographically disadvantaged farmer or rancher under this section for a fiscal year shall equal the product obtained by multiplying—
(i) the amount of costs incurred by the geographically di
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Federal law — U.S. Code and appendices · legal_authorities
Page 336
TITLE 7—AGRICULTURE
§ 197a
poultry growing arrangements, or on inventories
of or receivables or proceeds from such poultry
or poultry products therefrom, when payment is
not made for the poultry and that such financ-
ing arrangements are contrary to the public in-
terest. This section is intended to remedy such
burden on and obstruction to commerce in poul-
try and protect the public interest.
(b) Poultry, inventories, receivables and pro-
ceeds held by dealer in trust for benefit of
unpaid cash sellers or poultry growers
All poultry obtained by a live poultry dealer,
by purchase in cash sales or by poultry growing
arrangement, and all inventories of, or receiv-
ables or proceeds from such poultry or poultry
products derived therefrom, shall be held by
such live poultry dealer in trust for the benefit
of all unpaid cash sellers or poultry growers of
such poultry, until full payment has been re-
ceived by such unpaid cash sellers or poultry
growers, unless such live poultry dealer does not
have average annual sales of live poultry, or av-
erage annual value of live poultry obtained by
purchase or by poultry growing arrangement, in
excess of $100,000.
(c) Effect of dishonored instruments
Payment shall not be considered to have been
made if the cash seller or poultry grower re-
ceives a payment instrument which is dishon-
ored.
(d) Preservation of trust benefit by seller or
poultry grower
The unpaid cash seller or poultry grower shall
lose the benefit of such trust if, in the event
that a payment instrument has not been re-
ceived, within 30 days of the final date for mak-
ing payment under section 228b–1 of this title, or
within 15 business days after the seller or poul-
try grower has received notice that the payment
instrument prompt
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