7 U.S.C. § 9018 — Producer agreements

Page 2272 TITLE 7—AGRICULTURE § 9018 year, based on the physical location of the farm)’’ after ‘‘payments’’ and ‘‘or the 2019 through 2023 crop years, as applicable’’ after ‘‘the 2014 through 2018 crop years’’. Subsec. (c)(2)(A). Pub. L. 115–334, § 1107(2)(A)(i), sub- stituted ‘‘paragraphs (4) and (5)’’ for ‘‘paragraph (4)’’. Subsec. (c)(2)(B). Pub. L. 115–334, § 1107(2)(A)(ii), sub- stituted ‘‘paragraph (6)’’ for ‘‘paragraph (5)’’. Subsec. (c)(3)(A)(ii). Pub. L. 115–334, § 1107(2)(B)(i), substituted ‘‘paragraph (6)’’ for ‘‘paragraph (5)’’. Subsec. (c)(3)(C). Pub. L. 115–334, § 1107(2)(B)(ii), sub- stituted ‘‘2023’’ for ‘‘2018’’. Subsec. (c)(4). Pub. L. 115–334, § 1107(2)(C), designated existing provisions as subpar. (A), inserted heading, substituted ‘‘Effective for the 2014 through 2018 crop years, if’’ for ‘‘If’’, and added subpar. (B). Subsec. (c)(5). Pub. L. 115–334, § 1107(2)(E), added par. (5). Former par. (5) redesignated (6). Subsec. (c)(6). Pub. L. 115–334, § 1107(2)(D), (F), redesig- nated par. (5) as (6), substituted ‘‘Low national average market price’’ for ‘‘Reference price’’ in par. heading, designated existing provisions as subpar. (A), inserted subpar. heading, substituted ‘‘For the 2014 through 2018 crop years, if the national average market price’’ for ‘‘If the national average market price’’, and added sub- par. (B). Subsec. (d). Pub. L. 115–334, § 1107(3), designated exist- ing provisions as par. (1) and inserted heading, redesig- nated former par. (1) and subpars. (A) and (B) thereof as subpar. (A) and cls. (i) and (ii) thereof, respectively, re- designated former par. (2) as subpar. (B), realigned mar- gins, and added par. (2). Subsec. (e). Pub. L. 115–334, § 1107(4), substituted ‘‘2023’’ for ‘‘2018’’ in introductory provisions. Subsec. (g)(2). Pub. L. 115–334, § 1107(5)(A), struck out ‘‘to the maximum extent practicable,’’ before ‘‘cal- culate’’. Subsec. (g)(4). Pub. L. 115–334, § 1107(5)(C), inserted ‘‘effective for the 2014 through 2018 crop years,’’ before ‘‘in the case of’’ in introductory provisions and sub- stituted ‘‘; and’’ for period at end. Subsec. (g)(5). Pub. L. 115–334, § 1107(5)(B), (D), added par. (5). Subsecs. (h), (i). Pub. L. 115–334, § 1107(6), added sub- secs. (h) and (i). § 9018. Producer agreements (a) Compliance with certain requirements (1) Requirements Before the producers on a farm may receive payments under this subchapter with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments— (A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); (B) to comply with applicable wetland pro- tection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.); (C) to effectively control noxious weeds and otherwise maintain the land in accord- ance with sound agricultural practices, as determined by the Secretary; and (D) to use the land on the farm, in a quan- tity equal to the attributable base acres for the farm and any base acres for an agricul- tural or conserving use, and not for a non- agricultural commercial, industrial, or resi- dential use, as determined by the Secretary. (2) Compliance The Secretary may issue such rules as the Secretary considers necessary to ensure pro- ducer compliance with the requirements of paragraph (1). (3) Modification At the request of the transferee or owner, the Secretary may modify the requirements of this subsection if the modifications are con- sistent with the objectives of this subsection, as determined by the Secretary. (b) Transfer or change of interest in farm (1) Termination (A) In general Except as provided in paragraph (2), a transfer of (or change in) the interest of the producers on a farm for which payments under this subchapter are provided shall re- sult in the termination of the payments, un- less the transferee or owner of the acreage agrees to assume all obligations under sub- section (a). (B) Effective date The termination shall take effect on the date determined by the Secretary. (2) Exception If a producer entitled to a payment under this subchapter dies, becomes incompetent, or is otherwise unable to receive the payment, the Secretary shall make the payment in ac- cordance with rules issued by the Secretary. (c) Acreage reports As a condition on the receipt of any benefits under this subchapter or subchapter II, the Sec- retary shall require producers on a farm to sub- mit to the Secretary annual acreage reports with respect to all cropland on the farm. (d) Production reports As an additional condition on receiving agri- culture risk coverage payments for individual coverage, the Secretary shall require a producer on a farm to submit to the Secretary annual production reports with respect to all covered commodities produced on all farms in the same State— (1) in which the producer has an interest; and (2) for which individual coverage has been selected. (e) Effect of inaccurate reports No penalty with respect to benefits under this subchapter or subchapter II shall be assessed against a producer on a farm for an inaccurate acreage or production report unless the Sec- retary determines that the producer on the farm knowingly and willfully falsified the acreage or production report. (f) Tenants and sharecroppers In carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. (g) Sharing of payments The Secretary shall provide for the sharing of payments made under this subchapter among the producers on a farm on a fair and equitable basis. (Pub. L. 113–79, title I, § 1118, Feb. 7, 2014, 128 Stat. 672.) Page 2273 TITLE 7—AGRICULTURE § 9031 Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (a)(1), (b)(1)(A), (2), (c), and (e) to (g), was in the original ‘‘this subtitle’’, meaning subtitle A (§§ 1101–1109) of title I of Pub. L. 113–79, Feb. 7, 2014, 128 Stat. 658, which is classi- fied principally to this subchapter. For complete classi- fication of subtitle A to the Code, see Tables. The Food Security Act of 1985, referred to in subsec. (a)(1)(A), (B), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classi- fied generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, 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. § 9019. Repealed. Pub. L. 115–334, title I, § 1108, Dec. 20, 2018, 132 Stat. 4508 Section, Pub. L. 113–79, title I, § 1119, Feb. 7, 2014, 128 Stat. 673, related to transition assistance for producers of upland cotton. SUBCHAPTER II—MARKETING LOANS § 9031. Availability of nonrecourse marketing as- sistance loans for loan commodities (a) Definition of loan commodity In this subchapter, the term ‘‘loan com- modity’’ means wheat, corn, grain sorghum, bar- ley, oats, upland cotton, extra long staple cot- ton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, graded wool, nongraded wool, mohair, honey, dry peas, lentils, small chickpeas, and large chickpeas. (b) Nonrecourse loans available (1) In general For each of the 2014 through 2023 crops of each loan commodity, the Secretary shall make available to producers on a farm non- recourse marketing assistance loans for loan commodities produced on the farm. (2) Terms and conditions The marketing assistance loans shall be made under terms and conditions that are pre- scribed by the Secretary and at the loan rate established under section 9032 of this title for the loan commodity. (c) Eligible production The producers on a farm shall be eligible for a marketing assistance loan under subsection (b) for any quantity of a loan commodity produced on the farm. (d) Compliance with conservation and wetlands requirements As a condition of the receipt of a marketing assistance loan under subsection (b), the pro- ducer shall comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and applicable wetland protection requirements under subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.) during the term of the loan. (e) Special rules for peanuts (1) In general This subsection shall apply only to pro- ducers of peanuts. (2) Options for obtaining loan A marketing assistance loan under this sec- tion, and loan deficiency payments under sec- tion 9035 of this title, may be obtained at the option of the producers on a farm through— (A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or (B) the Farm Service Agency. (3) Storage of loan peanuts As a condition on the approval by the Sec- retary of an individual or entity to provide storage for peanuts for which a marketing as- sistance loan is made under this section, the individual or entity shall agree— (A) to provide the storage on a nondiscrim- inatory basis; and (B) to comply with such additional re- quirements as the Secretary considers ap- propriate to accomplish the purposes of this section and promote fairness in the adminis- tration of the benefits of this section. (4) Storage, handling, and associated costs (A) In general To ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other asso- ciated costs (other than storage costs) in- curred at the time at which the peanuts are placed under loan, as determined by the Sec- retary. (B) Redemption and forfeiture The Secretary shall— (i) require the repayment of handling and other associated costs paid under sub- paragraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and (ii) pay storage, handling, and other as- sociated costs for all peanuts pledged as collateral that are forfeited under this sec- tion. (5) Marketing A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that con- forms to consumer needs, including the sepa- ration of peanuts by type and quality. (6) Reimbursable agreements and payment of administrative expenses The Secretary may implement any reim- bursable agreements or provide for the pay- ment of administrative expenses under this subsection only in a manner that is consistent with those activities in regard to other loan commodities. (Pub. L. 113–79, title I, § 1201, Feb. 7, 2014, 128 Stat. 674; Pub. L. 115–334, title I, § 1201(a), Dec. 20, 2018, 132 Stat. 4509.) Editorial Notes REFERENCES IN TEXT The Food Security Act of 1985, referred to in subsec. (d), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Sub- titles B and C of title XII of the Act are classified gen- erally to subchapters II (§ 3811 et seq.) and III (§ 3821 et