7 U.S.C. § 7954 — Availability of counter-cyclical payments

Page 2137 TITLE 7—AGRICULTURE § 7954 select the month within which the advance payment for a crop year will be made. The month selected may be any month during the period beginning on December 1 of the cal- endar year before the calendar year in which the crop is harvested through the month with- in which the direct payment would otherwise be made. The producers may change the se- lected month for a subsequent advance pay- ment by providing advance notice to the Sec- retary. (3) Repayment of advance payments If a producer on a farm that receives an ad- vance direct payment for a crop year ceases to be a producer on that farm, or the extent to which the producer shares in the risk of pro- ducing a crop changes, before the date the re- mainder of the direct payment is made, the producer shall be responsible for repaying the Secretary the applicable amount of the ad- vance payment, as determined by the Sec- retary. (Pub. L. 107–171, title I, § 1303, May 13, 2002, 116 Stat. 170; Pub. L. 109–171, title I, § 1102(b), Feb. 8, 2006, 120 Stat. 5.) Editorial Notes AMENDMENTS 2006—Subsec. (e)(2). Pub. L. 109–171 substituted ‘‘2005 crop years, up to 40 percent of the direct payment for the 2006 crop year, and up to 22 percent of the direct payment for the 2007 crop year,’’ for ‘‘2007 crop years’’. § 7954. Availability of counter-cyclical payments for peanuts (a) Payment required (1) In general During the 2002 through 2007 crop years for peanuts, the Secretary shall make counter-cy- clical payments under this section with re- spect to peanuts if the Secretary determines that the effective price for peanuts is less than the target price for peanuts. (2) 2002 crop year If counter-cyclical payments are required for the 2002 crop year, the Secretary shall make the payments to historic peanut producers. (3) Subsequent crop years If counter-cyclical payments are required for any of the 2003 through 2007 crop years for pea- nuts, the Secretary shall make the 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) Effective price For purposes of subsection (a), the effective price for peanuts is equal to the sum of the fol- lowing: (1) The higher of the following: (A) The national average market price for peanuts received by producers during the 12- month marketing year for peanuts, as deter- mined by the Secretary. (B) The national average loan rate for a marketing assistance loan for peanuts in ef- fect for the applicable period under this sub- chapter. (2) The payment rate in effect under section 7953 of this title for the purpose of making di- rect payments. (c) Target price For purposes of subsection (a), the target price for peanuts shall be equal to $495 per ton. (d) Payment rate The payment rate used to make counter-cycli- cal payments for a crop year shall be equal to the difference between— (1) the target price; and (2) the effective price determined under sub- section (b). (e) Payment amount for 2002 crop year If counter-cyclical payments are required to be paid for the 2002 crop of peanuts, the amount of the counter-cyclical payment to be paid to an historic peanut producer for that crop year shall be equal to the product of the following: (1) The payment rate specified in subsection (d). (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. (f) Payment amount for subsequent crop years If counter-cyclical payments are required to be paid for any of the 2003 through 2007 crops of peanuts, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following: (1) The payment rate specified in subsection (d). (2) The payment acres on the farm. (3) The payment yield for the farm. (g) Time for payments (1) General rule If the Secretary determines under sub- section (a) that counter-cyclical payments are required to be made under this section for a crop year, the Secretary shall make the counter-cyclical payments as soon as prac- ticable after the end of the 12-month mar- keting year for the crop. (2) Availability of partial payments If, before the end of the 12-month marketing year, the Secretary estimates that counter-cy- clical payments will be required under this section for a crop year, the Secretary shall give producers on a farm (or, in the case of the 2002 crop year, historic peanut producers) the option to receive partial payments of the counter-cyclical payment projected to be made for that crop. (3) Time for partial payments (A) 2002 through 2006 crop years When the Secretary makes partial pay- ments available under paragraph (2) for any of the 2002 through 2006 crop years— (i) the first partial payment for the crop year shall be made not earlier than Octo- ber 1, and, to the maximum extent prac- ticable, not later than October 31, of the calendar year in which the crop is har- vested; Page 2138 TITLE 7—AGRICULTURE § 7955 (ii) the second partial payment shall be made not earlier than February 1 of the next calendar year; and (iii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for that crop. (B) 2007 crop year When the Secretary makes partial pay- ments available for the 2007 crop year— (i) the first partial payment shall be made after completion of the first 6 months of the marketing year for that crop; and (ii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for that crop. (4) Amount of partial payments (A) 2002 crop year (i) First partial payment In the case of the 2002 crop year, the first partial payment under paragraph (3) to an historic peanut producer may not exceed 35 percent of the projected counter-cycli- cal payment for the crop year, as deter- mined by the Secretary. (ii) Second partial payment The second partial payment may not ex- ceed the difference between— (I) 70 percent of the projected counter- cyclical payment (including any revision thereof) for the 2002 crop year; and (II) the amount of the payment made under clause (i). (iii) Final payment The final payment shall be equal to the difference between— (I) the actual counter-cyclical pay- ment to be made to the historic peanut producer; and (II) the amount of the partial pay- ments made to the historic peanut pro- ducer under clauses (i) and (ii). (B) 2003 through 2006 crop years (i) First partial payment For each of the 2003 through 2006 crop years, the first partial payment under paragraph (3) to the producers on a farm may not exceed 35 percent of the projected counter-cyclical payment for the crop year, as determined by the Secretary. (ii) Second partial payment The second partial payment for a crop year may not exceed the difference be- tween— (I) 70 percent of the projected counter- cyclical payment (including any revision thereof) for the crop year; and (II) the amount of the payment made under clause (i). (iii) Final payment The final payment for a crop year shall be equal to the difference between— (I) the actual counter-cyclical pay- ment to be made to the producers for that crop year; and (II) the amount of the partial pay- ments made to the producers under clauses (i) and (ii) for that crop year. (C) 2007 crop year (i) First partial payment For the 2007 crop year, the first partial payment under paragraph (3) to the pro- ducers on a farm may not exceed 40 per- cent of the projected counter-cyclical pay- ment for the crop year, as determined by the Secretary. (ii) Final payment The final payment for the 2007 crop year shall be equal to the difference between— (I) the actual counter-cyclical pay- ment to be made to the producers for that crop year; and (II) the amount of the partial payment made to the producers under clause (i). (5) Repayment The producers on a farm (or, in the case of the 2002 crop year, historic peanut producers) that receive a partial payment under this sub- section for a crop year shall repay to the Sec- retary the amount, if any, by which the total of the partial payments exceed the actual counter-cyclical payment to be made for that crop year. (Pub. L. 107–171, title I, § 1304, May 13, 2002, 116 Stat. 171.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (b)(1)(B), 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. § 7955. Producer agreement required as condi- tion on provision of direct payments and counter-cyclical payments (a) Compliance with certain requirements (1) Requirements Before the producers on a farm may receive direct payments or counter-cyclical 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 comply with the planting flexibility requirements of section 7956 of this title; (D) to use the land on the farm, in a quan- tity equal to the attributable base acres for peanuts and any base acres for the farm under subchapter I, for an agricultural or conserving use, and not for a non- agricultural commercial or industrial use, as determined by the Secretary; and