7 U.S.C. § 518b — Contract payments for producers of quota

Page 442 TITLE 7—AGRICULTURE § 518b 1 See References in Text note below. 2 So in original. Probably should be ‘‘Agricultural’’. under this section to each eligible tobacco quota holder, with respect to a kind of to- bacco, in an amount equal to 1⁄10 of the amount determined under paragraph (1) for the to- bacco quota holder for that kind of tobacco. (f) Death of tobacco quota holder If a tobacco quota holder who is entitled to contract payments under this section dies and is survived by a spouse or one or more dependents, the right to receive the payments shall transfer to the surviving spouse or, if there is no sur- viving spouse, to the estate of the tobacco quota holder. (Pub. L. 108–357, title VI, § 622, Oct. 22, 2004, 118 Stat. 1525.) Editorial Notes REFERENCES IN TEXT Sections 611 and 612, referred to in subsec. (a), are sections 611 and 612 of Pub. L. 108–357, which amended sections 609, 1282, 1301, 1303, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c–1, and 1441 of this title and section 714c of Title 15, Commerce and Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314, 1314–1, 1314b, 1314b–1, 1314b–2, 1314c to 1314j, 1315, 1316, 1445, 1445–1, and 1445–2 of this title, and repealed provisions set out as a note under section 1314c of this title. Part I of subtitle B of title III of the Agricultural Ad- justment Act of 1938, referred to in subsec. (c)(2), was classified to subpart I (§ 1311 et seq.) of part B of sub- chapter II of chapter 35 of this title prior to repeal by Pub. L. 108–357, title VI, § 611(a), Oct. 22, 2004, 118 Stat. 1522. For complete classification of this Act to the Code, see section 1281 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. § 518b. Contract payments for producers of quota tobacco (a) Contract offered The Secretary shall offer to enter into a con- tract with each producer of quota tobacco under which the producer of quota tobacco shall be en- titled to receive payments under this section in exchange for the termination of tobacco mar- keting quotas and related price support under the amendments made by sections 611 and 612.1 The contract payments shall constitute full and fair consideration for the termination of such tobacco marketing quotas and related price sup- port. (b) Eligibility (1) Application and determination To be eligible to enter into a contract to re- ceive a contract payment under this section, a person shall submit to the Secretary an appli- cation containing such information as the Secretary may require to demonstrate to the satisfaction of the Secretary that the person is a producer of quota tobacco. The applica- tion shall be submitted within such time, in such form, and in such manner as the Sec- retary may require. (2) Effect of multiple producers for same quota tobacco If, on the basis of the applications submitted under paragraph (1) or other information, the Secretary determines that two or more per- sons are a producer of the same quota tobacco, the Secretary shall provide for an equitable distribution among the persons of the contract payments made under this section with re- spect to that quota tobacco, based on relative share of such persons in the risk of producing the quota tobacco and such other factors as the Secretary considers appropriate. (c) Base quota level (1) Establishment The Secretary shall establish a base quota level applicable to each producer of quota to- bacco, as determined under this subsection. (2) Flue-cured and burley tobacco In the case of Flue-cured tobacco (types 11, 12, 13, and 14) and Burley tobacco (type 31), the base quota level for each producer of quota to- bacco shall be equal to the effective tobacco marketing quota (irrespective of disaster lease and transfers) under part I of subtitle B of title III of the Agriculture 2 Adjustment Act of 1938 [7 U.S.C. 1311 et seq.] for the 2002 mar- keting year for quota tobacco produced on the farm. (3) Other kinds of tobacco In the case of each kind of tobacco (other than tobacco covered by paragraph (2)), for the purpose of calculating a contract payment to a producer of quota tobacco, the base quota level for the producer of quota tobacco shall be the quantity obtained by multiplying— (A) the basic tobacco farm acreage allot- ment for the 2002 marketing year established by the Secretary for quota tobacco produced on the farm; by (B) the average annual yield, per acre, of quota tobacco produced on the farm for the period covering the 2001, 2002, and 2003 crop years. (d) Contract payments (1) Calculation of total payment amount Subject to subsection (b)(2), the total amount of contract payments to which an eli- gible producer of quota tobacco is entitled under this section, with respect to a kind of tobacco, shall be equal to the product obtained by multiplying— (A) subject to paragraph (2), $3.00 per pound; by (B) the base quota level of the producer of quota tobacco determined under subsection (c) with respect to that kind of tobacco. (2) Annual payment During each of fiscal years 2005 through 2014, the Secretary shall make a contract payment under this section to each eligible producer of tobacco, with respect to a kind of tobacco, in an amount equal to 1⁄10 of the amount deter- mined under paragraph (1) for the producer for that kind of tobacco. Page 443 TITLE 7—AGRICULTURE § 518d 1 See References in Text note below. (3) Variable payment rates The rate for payments to a producer of quota tobacco under paragraph (1)(A) shall be equal to— (A) in the case of a producer of quota to- bacco that produced quota tobacco mar- keted, or considered planted, under a mar- keting quota in all three of the 2002, 2003, or 2004 tobacco marketing years, the rate pre- scribed under paragraph (1)(A); (B) in the case of a producer of quota to- bacco that produced quota tobacco mar- keted, or considered planted, under a mar- keting quota in only two of those tobacco marketing years, 2⁄3 of the rate prescribed under paragraph (1)(A); (C) in the case of a producer of quota to- bacco that produced quota tobacco mar- keted, or considered planted, under a mar- keting quota in only one of those tobacco marketing years, 1⁄3 of the rate prescribed under paragraph (1)(A). (e) Death of tobacco producer If a producer of quota tobacco who is entitled to contract payments under this section dies and is survived by a spouse or one or more de- pendents, the right to receive the contract pay- ments shall transfer to the surviving spouse or, if there is no surviving spouse, to the estate of the producer. (Pub. L. 108–357, title VI, § 623, Oct. 22, 2004, 118 Stat. 1527.) Editorial Notes REFERENCES IN TEXT Sections 611 and 612, referred to in subsec. (a), are sections 611 and 612 of Pub. L. 108–357, which amended sections 609, 1282, 1301, 1303, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c–1, and 1441 of this title and section 714c of Title 15, Commerce and Trade, repealed sections 511r, 515, 515a to 515k, 625, 1311 to 1314, 1314–1, 1314b, 1314b–1, 1314b–2, 1314c to 1314j, 1315, 1316, 1445, 1445–1, and 1445–2 of this title, and repealed provisions set out as a note under section 1314c of this title. Part I of subtitle B of title III of the Agricultural Ad- justment Act of 1938, referred to in subsec. (c)(2), was classified to subpart I (§ 1311 et seq.) of part B of sub- chapter II of chapter 35 of this title prior to repeal by Pub. L. 108–357, title VI, § 611(a), Oct. 22, 2004, 118 Stat. 1522. For complete classification of this Act to the Code, see section 1281 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. § 518c. Administration (a) Time for payment of contract payments Contract payments required to be made for a fiscal year shall be made by the Secretary as soon as practicable. (b) Use of county committees to resolve disputes Any dispute regarding the eligibility of a per- son to enter into a contract or to receive con- tract payments, and any dispute regarding the amount of a contract payment, may be appealed to the county committee established under sec- tion 590h of title 16 for the county or other area in which the farming operation of the person is located. (c) Role of National Appeals Division Any adverse determination of a county com- mittee under subsection (b) may be appealed to the National Appeals Division established under subtitle H of the Department of Agriculture Re- organization Act of 1994 (7 U.S.C. 6991 et seq.). (d) Use of financial institutions The Secretary may use a financial institution to manage assets, make contract payments, and otherwise carry out this title.1 (e) Payment to financial institutions The Secretary shall permit a tobacco quota holder or producer of quota tobacco entitled to contract payments to assign to a financial insti- tution the right to receive the contract pay- ments. Upon receiving notification of the as- signment, the Secretary shall make subsequent contract payments for the tobacco quota holder or producer of quota tobacco directly to the fi- nancial institution designated by the tobacco quota holder or producer of quota tobacco. The Secretary shall make information available to tobacco quota holders and producers of quota to- bacco regarding their ability to elect to have the Secretary make payments directly to a fi- nancial institution under this subsection so that they may obtain a lump sum or other payment. (Pub. L. 108–357, title VI, § 624, Oct. 22, 2004, 118 Stat. 1528.) Editorial Notes REFERENCES IN TEXT The Department of Agriculture Reorganization Act of 1994, referred to in subsec. (c), is title II of Pub. L. 103–354, Oct. 13, 1994, 108 Stat. 3209. Subtitle H of the Act is classified principally to subchapter VIII (§ 6991 et seq.) of chapter 98 of this title. For complete classifica- tion of this Act to the Code, see Tables. This title, referred to in subsec. (d), means title VI of Pub. L. 108–357, which enacted this chapter, amended sections 609, 1282, 1301, 1303, 1314h, 1361, 1371, 1373, 1375, 1378, 1379, 1428, 1433c–1, and 1441 of this title and section 714c of Title 15, Commerce and Trade, repealed sections 511r, 515 to 515k, 625, 1311 to 1314, 1314–1, 1314b, 1314b–1, 1314b–2, 1314c to 1314j, 1315, 1316, 1445, 1445–1, and 1445–2 of this title, enacted provisions set out as notes under sections 515 and 518 of this title, and repealed provi- sions set out as a note under section 1314c of this title. For complete classification of title VI to the Code, see Short Title note set out under section 518 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as a note under section 518 of this title. § 518d. Use of assessments as source of funds for payments (a) Definitions In this section: