7 U.S.C. § 7953 — Availability of direct payments for pea-

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 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;