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7 U.S.C. § 7213 — Amounts available for contract payments

Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7213 — Amounts available for contract payments

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Source location: Title 7, Chapter 100, § 7213; chapter-100-agricultural-market-transition.md

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**(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) Additional rice allocation** In addition to the adjustments required under subsection (c), the amount allocated under subsection (b) for rice contract payments shall be increased by $8,500,000 for each of fiscal years 1997 through 2002. **(e) Exclusion of certain amounts from contract payments** Any amount added pursuant to paragraphs (1) and (2) of subsection (c) to the amount available under subsection (a) for a fiscal year and paid to owners and producers under a contract shall not be treated as a contract payment for purposes of [section 7215 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7215&num=0&edition=prelim) or section 1308(1) 11 See References in text note below. of this title. However, the amount of a payment covered by this subsection may not exceed $50,000 per person. **(f) Effect of payment limitation** The amount available under subsection (a) for a fiscal year shall be reduced by an amount equal to the total amount of contract payments for the fiscal year that owners and producers forgo as a result of operation of the payment limitation under section 1308(1) 1 of this title.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7216 — Violations of contract

**(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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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7215 — Applicability of payment limitations

Sections 1308 through 1308–3 of this title shall be applicable to contract payments made under this subchapter.

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7214 — Determination of contract payments under contracts

**(a) Individual payment quantity of contract commodities** 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 commodities** The payment quantity of each contract commodity covered by all contracts for each fiscal year shall be equal to the sum of the amounts calculated under subsection (a) for each individual 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section7213&num=0&edition=prelim) 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 effect for each fiscal year with respect to all contract 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 commodities covered by the contract; and (2) the corresponding payment rate for the contract commodity in effect under subsection (c). **(e) Reduction in payment amount** The contract payment determined under subsection (d) for an owner or producer for a fiscal year shall be immediately reduced by the amount of any repayment of deficiency payments that is 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)) and is not repaid as of th

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1445j — Deficiency and land diversion payments

**(a) Deficiency payments** (1) **In general** — If the Secretary establishes an acreage limitation program for any of the 1991 through 1997 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for the commodity for the crop, the Secretary shall make advance deficiency payments available to producers for each of the crops. (2) **Terms and conditions** — Advance deficiency payments under paragraph (1) shall be made to the producer under the following terms and conditions: (A) *Form* — Such payments may be made available in the form of— (i) cash; (ii) commodities owned by the Commodity Credit Corporation and certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of the payments may be made in commodities or the certificates in the case of any producer; or (iii) any combination of clauses (i) and (ii). (B) *Commodities and certificates* — If payments are made available to producers as provided for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of— (i) such commodities; or (ii) such certificates. (C) *Maturity* — Such a certificate shall be redeemable for a period not to exceed 3 years from the date the certificate is issued. (D) *Storage* — The Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is redeemed. (E) *Timing* — The payments shall be made available as soon as practicable after the producer enters into a contract with the Secretary to participate in such program. (F) *Amounts* — The payments shall be made available in such amounts as th

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 1445j — Deficiency and land diversion payments

Page 770 TITLE 7—AGRICULTURE § 1445h § 1445h. Repealed. Pub. L. 104–127, title I, § 171(b)(2)(F), Apr. 4, 1996, 110 Stat. 938 Section, act Oct. 31, 1949, ch. 792, title I, § 113, as added Dec. 3, 1980, Pub. L. 96–494, title II, § 207, 94 Stat. 2572; amended Dec. 22, 1981, Pub. L. 97–98, title XI, § 1105, 95 Stat. 1264; Dec. 23, 1985, Pub. L. 99–198, title X, § 1011, 99 Stat. 1454; Nov. 28, 1990, Pub. L. 101–624, title XI, § 1125, 104 Stat. 3506, authorized Secretary to announce and provide for supplemental set-aside and acreage lim- itation program. § 1445i. Multiyear set-aside contracts for 1986 through 1990 crops of wheat, feed grains, up- land cotton, and rice Notwithstanding any other provision of law: (1) The Secretary of Agriculture may enter into multiyear set-aside contracts for a period not to extend beyond the 1990 crops. Such con- tracts may be entered into only as a part of the programs in effect for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, and only producers participating in one or more of such programs shall be eligible to contract with the Secretary under this sec- tion. Producers agreeing to a multiyear set- aside agreement shall be required to devote the set-aside acreage to vegetative cover capa- ble of maintaining itself through such period to provide soil protection, water quality en- hancement, wildlife production, and natural beauty. Grazing of livestock under this section shall be prohibited, except in areas of a major disaster, as determined by the President, if the Secretary finds there is a need for such grazing as a result of such disaster. Producers entering into agreements under this section shall also agree to comply with all applicable State and local laws and regulations gov-

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Federal law — U.S. Code and appendices · legal_authorities

7 U.S.C. § 7213 — Amounts available for contract payments

Page 1973 TITLE 7—AGRICULTURE § 7213 1 See References in text note below. (2) Advance payments (A) Fiscal year 1996 At the option of the owner or producer, 50 percent of the contract payment for fiscal year 1996 shall be made not later than 30 days after the date on which the contract is entered into and approved by the Secretary and the owner or producer. (B) Subsequent fiscal years At the option of the owner or producer for fiscal year 1997 and each subsequent fiscal year, 50 percent of the annual contract pay- ment shall be made on December 15 or Janu- ary 15 of the fiscal year. The owner or pro- ducer may change the date selected under this subparagraph for a subsequent fiscal year by providing advance notice to the Sec- retary. (3) Special rule Notwithstanding the requirements for mak- ing an annual contract payment specified in paragraphs (1) and (2), at the option of the owner or producer, the Secretary shall pay the full amount (or such portion as the owner or producer may specify) of the contract pay- ment required to be paid for any of fiscal years 1999 through 2002 at such time or times during that fiscal year as the owner or producer may specify. (Pub. L. 104–127, title I, § 112, Apr. 4, 1996, 110 Stat. 899; Pub. L. 105–228, § 2, Aug. 12, 1998, 112 Stat. 1516; Pub. L. 106–78, title VIII, § 811, Oct. 22, 1999, 113 Stat. 1181.) Editorial Notes AMENDMENTS 1999—Subsec. (d)(3). Pub. L. 106–78, in par. heading, struck out ‘‘for fiscal year 1999’’ after ‘‘rule’’ and, in text, substituted ‘‘any of fiscal years 1999 through 2002’’ for ‘‘fiscal year 1999’’. 1998—Subsec. (d)(3). Pub. L. 105–228 added par. (3). Statutory Notes and Related Subsidiaries PRODUCTION FLEXIBILITY CONTRACT PAYMENTS Pub. L. 106–170, title V, § 525, Dec. 17, 199

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