7 U.S.C. § 7952 — Establishment of payment yield and base

Page 2134 TITLE 7—AGRICULTURE § 7951 (3) High moisture state defined In this subsection, the term ‘‘high moisture state’’ means corn or grain sorghum having a moisture content in excess of Commodity Credit Corporation standards for marketing assistance loans made by the Secretary under section 7931 of this title. (b) Recourse loans available for seed cotton For each of the 2002 through 2007 crops of up- land cotton and extra long staple cotton, the Secretary shall make available recourse seed cotton loans, as determined by the Secretary, on any production. (c) Repayment rates Repayment of a recourse loan made under this section shall be at the loan rate established for the commodity by the Secretary, plus interest (determined in accordance with section 7283 of this title). (d) Termination of superseded loan authority Notwithstanding section 7237 of this title, re- course loans shall not be made for the 2002 crop of corn, grain sorghum, and seed cotton under such section. (Pub. L. 107–171, title I, § 1209, May 13, 2002, 116 Stat. 165.) SUBCHAPTER III—PEANUTS § 7951. Definitions In this subchapter: (1) Base acres for peanuts The term ‘‘base acres for peanuts’’ means the number of acres assigned to a farm by his- toric peanut producers pursuant to section 7952(b) of this title. (2) Counter-cyclical payment The term ‘‘counter-cyclical payment’’ means a payment made under section 7954 of this title. (3) Effective price The term ‘‘effective price’’ means the price calculated by the Secretary under section 7954 of this title for peanuts to determine whether counter-cyclical payments are required to be made under that section for a crop year. (4) Direct payment The term ‘‘direct payment’’ means a pay- ment made under section 7953 of this title. (5) Historic peanut producer The term ‘‘historic peanut producer’’ means a producer on a farm in the United States that produced or was prevented from planting pea- nuts during any or all of the 1998 through 2001 crop years. (6) Payment acres The term ‘‘payment acres’’ means— (A) for the 2002 crop of peanuts, 85 percent of the average acreage determined under sec- tion 7952(a)(2) of this title for an historic peanut producer; and (B) for the 2003 through 2007 crops of pea- nuts, 85 percent of the base acres for peanuts assigned to a farm under section 7952(b) of this title. (7) Payment yield The term ‘‘payment yield’’ means the yield assigned to a farm by historic peanut pro- ducers pursuant to section 7952(b) of this title. (8) Producer The term ‘‘producer’’ means an owner, oper- ator, landlord, tenant, or sharecropper that shares in the risk of producing a crop on a farm and is entitled to share in the crop avail- able for marketing from the farm, or would have shared had the crop been produced. In de- termining whether a grower of hybrid seed is a producer, the Secretary shall not take into consideration the existence of a hybrid seed contract and shall ensure that program re- quirements do not adversely affect the ability of the grower to receive a payment under this subchapter. (9) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture. (10) State The term ‘‘State’’ means each of the several States of the United States, the District of Co- lumbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States. (11) Target price The term ‘‘target price’’ means the price per ton of peanuts used to determine the payment rate for counter-cyclical payments. (12) United States The term ‘‘United States’’, when used in a geographical sense, means all of the States. (Pub. L. 107–171, title I, § 1301, May 13, 2002, 116 Stat. 166.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this subtitle’’, meaning subtitle C (§§ 1301–1310) of title I of Pub. L. 107–171, May 13, 2002, 116 Stat. 166, which enacted this subchapter, amended sections 1361, 1371, 1373, 1378, 1428, and 1441 of this title, and repealed sections 1357 to 1359a and 7271 of this title. For com- plete classification of subtitle C to the Code, see Ta- bles. § 7952. Establishment of payment yield and base acres for peanuts for a farm (a) Average yield and acreage average for his- toric peanut producers (1) Determination of average yield (A) In general The Secretary shall determine, for each historic peanut producer, the average yield for peanuts on each farm on which the his- toric peanut producer planted peanuts for harvest for the 1998 through 2001 crop years, excluding any crop year in which the pro- ducer did not plant or was prevented from planting peanuts. (B) Assigned yields For the purposes of determining the 4-year average yield for an historic peanut pro- Page 2135 TITLE 7—AGRICULTURE § 7952 ducer under this paragraph, the historic pea- nut producer may elect to substitute for a farm, for not more than 3 of the 1998 through 2001 crop years in which the producer plant- ed peanuts on the farm, the average yield for peanuts produced in the county in which the farm is located for the 1990 through 1997 crop years. (2) Determination of acreage average (A) In general The Secretary shall determine, for each historic peanut producer, the 4-year average of the following: (i) Acreage planted to peanuts on each farm on which the historic peanut pro- ducer planted peanuts for harvest for the 1998 through 2001 crop years. (ii) Any acreage on each farm that the historic peanut producer was prevented from planting to peanuts during the 1998 through 2001 crop years because of drought, flood, or other natural disaster, or other condition beyond the control of the historic peanut producer, as deter- mined by the Secretary. (B) Inclusion of all 4 years in average For the purposes of determining the 4-year acreage average for an historic peanut pro- ducer under this paragraph, the Secretary shall not exclude any crop year in which the producer did not plant peanuts. (C) Proportional shares If more than 1 historic peanut producer shared in the risk of producing the crop on a farm, the historic peanut producers shall receive their proportional share of the num- ber of acres planted (or prevented from being planted) to peanuts for harvest on the farm based on the sharing arrangement that was in effect among the producers for the crop. (3) Time for determinations The Secretary shall make the determina- tions required by this subsection as soon as practicable after May 13, 2002. (4) Special considerations In making the determinations required by this subsection, the Secretary shall take into account changes in the number, identity, or interest of producers sharing in the risk of producing a peanut crop since the 1998 crop year, including providing a method for the as- signment of average acres and average yield to a farm— (A) when an historic peanut producer is no longer living; (B) when an entity composed of historic peanut producers has been dissolved; or (C) in other appropriate situations, as de- termined by the Secretary. (b) Assignment of average yields and average acreage to farms (1) Assignment by historic peanut producers The Secretary shall give each historic pea- nut producer an opportunity to assign the av- erage peanut yield and average acreage deter- mined under subsection (a) for each farm of the historic peanut producer to cropland on that farm or another farm in the same State or a contiguous State. (2) Limitation on acreage assignment Notwithstanding paragraph (1), the average acreage determined under subsection (a)(2) for a farm may not be assigned to a farm in a con- tiguous State unless— (A) the historic peanut producer making the assignment produced peanuts in that State during at least 1 of the 1998 through 2001 crop years; or (B) as of March 31, 2003, the historic peanut producer is a producer on a farm in that State. (3) Notice of assignment opportunity The Secretary shall provide notice to his- toric peanut producers regarding their oppor- tunity to assign average peanut yields and av- erage acreages to farms under paragraph (1). The notice shall include the following: (A) Notice that the opportunity to make the assignments is being provided only once. (B) A description of the limitation in para- graph (2) on their ability to make the as- signments. (C) Information regarding the manner in which the assignments must be made and the time periods and manner in which notice of the assignments must be submitted to the Secretary. (4) Assignment deadlines Not later than March 31, 2003, an historic peanut producer shall submit to the Secretary notice of the assignments made by the pro- ducer under this subsection. If an historic pea- nut producer fails to submit the notice by that date, the notice shall be submitted in such other manner as the Secretary may prescribe. (c) Payment yield The average of all of the yields assigned by historic peanut producers under subsection (b) to a farm shall be considered to be the payment yield for that farm for the purpose of making di- rect payments and counter-cyclical payments under this subchapter. (d) Base acres for peanuts Subject to subsection (e), the total number of acres assigned by historic peanut producers under subsection (b) to a farm shall be consid- ered to be the farm’s base acres for peanuts for the purpose of making direct payments and counter-cyclical payments under this sub- chapter. (e) Treatment of conservation reserve contract acreage (1) In general The Secretary shall provide for an adjust- ment, as appropriate, in the base acres for pea- nuts for a farm whenever either of the fol- lowing circumstances occur: (A) A conservation reserve contract en- tered into under section 1231 of the Food Se- curity Act of 1985 (16 U.S.C. 3831) with re- spect to the farm expires or is voluntarily terminated. (B) Cropland is released from coverage under a conservation reserve contract by the Secretary. Page 2136 TITLE 7—AGRICULTURE § 7953 (2) Special payment rules For the crop year in which a base acres for peanuts adjustment under paragraph (1) is first made, the owner of the farm shall elect to receive either direct payments and counter-cy- clical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation re- serve contract, but not both. (f) Prevention of excess base acres for peanuts (1) Required reduction If the sum of the base acres for peanuts for a farm, together with the acreage described in paragraph (2), exceeds the actual cropland acreage of the farm, the Secretary shall re- duce the base acres for peanuts for the farm or the base acres for 1 or more covered commod- ities under subchapter I for the farm so that the sum of the base acres for peanuts and acre- age described in paragraph (2) does not exceed the actual cropland acreage of the farm. (2) Other acreage For purposes of paragraph (1), the Secretary shall include the following: (A) Any base acres for the farm under sub- chapter I. (B) Any acreage on the farm enrolled in the conservation reserve program or wet- lands reserve program under chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.). (C) Any other acreage on the farm enrolled in a conservation program for which pay- ments are made in exchange for not pro- ducing an agricultural commodity on the acreage. (3) Selection of acres The Secretary shall give the owner of the farm the opportunity to select the base acres for peanuts or the subchapter I base acres against which the reduction required by para- graph (1) will be made. (4) Exception for double-cropped acreage In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary. (5) Coordinated application of requirements The Secretary shall take into account sec- tion 7911(g) of this title when applying the re- quirements of this subsection. (g) Permanent reduction in base acres for pea- nuts The owner of a farm may reduce, at any time, the base acres for peanuts assigned to the farm. The reduction shall be permanent and made in the manner prescribed by the Secretary. (Pub. L. 107–171, title I, § 1302, May 13, 2002, 116 Stat. 167.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (c) and (d), was in the original ‘‘this subtitle’’, meaning subtitle C (§§ 1301–1310) of Pub. L. 107–171, title I, May 13, 2002, 116 Stat. 166, which is classified principally to this sub- chapter. For complete classification of subtitle C to the Code, see References in Text note set out under section 7951 of this title and Tables. The Food Security Act of 1985, referred to in subsec. (f)(2)(B), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Chapter 1 of subtitle D of title XII of the Act is classi- fied generally to part I (§ 3830 et seq.) of subchapter IV of chapter 58 of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title of 1985 Amendment note set out under section 1281 of this title and Tables. § 7953. Availability of direct payments for pea- nuts (a) Payment required (1) 2002 crop year For the 2002 crop year, the Secretary shall make direct payments under this section to historic peanut producers. (2) Subsequent crop years For each of the 2003 through 2007 crop years for peanuts, the Secretary shall make direct payments to the producers on a farm to which a payment yield and base acres for peanuts are assigned under section 7952 of this title. (b) Payment rate The payment rate used to make direct pay- ments with respect to peanuts for a crop year shall be equal to $36 per ton. (c) Payment amount for 2002 crop year The amount of the direct payment to be paid to an historic peanut producer for the 2002 crop of peanuts shall be equal to the product of the following: (1) The payment rate specified in subsection (b). (2) The payment acres of the historic peanut producer. (3) The average peanut yield determined under section 7952(a)(1) of this title for the his- toric peanut producer. (d) Payment amount for subsequent crop years The amount of the direct payment to be paid to the producers on a farm for the 2003 through 2007 crops of peanuts shall be equal to the prod- uct of the following: (1) The payment rate specified in subsection (b). (2) The payment acres on the farm. (3) The payment yield for the farm. (e) Time for payment (1) In general The Secretary shall make direct payments— (A) in the case of the 2002 crop year, as soon as practicable after May 13, 2002; and (B) in the case of each of the 2003 through 2007 crop years, not later than September 30 of the calendar year in which the crop is har- vested. (2) Advance payments At the option of the producers on a farm, up to 50 percent of the direct payment for any of the 2003 through 2005 crop years, up to 40 per- cent of the direct payment for the 2006 crop year, and up to 22 percent of the direct pay- ment for the 2007 crop year, shall be paid to the producers in advance. The producers shall