7 U.S.C. § 7211 — Authorization for use of production flexi-

Page 1971 TITLE 7—AGRICULTURE § 7211 cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of the varieties or types; and (B) is ginned on a roller-type gin or, if au- thorized by the Secretary, ginned on another type gin for experimental purposes. (9) Farm program payment yield The term ‘‘farm program payment yield’’ means the farm program payment yield estab- lished for the 1995 crop of a contract com- modity under section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465). The Secretary shall adjust the farm program payment yield for the 1995 crop of a contract commodity to account for any additional yield payments made with respect to that crop under subsection (b)(2) of the section. (10) Loan commodity The term ‘‘loan commodity’’ means each contract commodity, extra long staple cotton, and oilseed. (11) Oilseed The term ‘‘oilseed’’ means a crop of soy- beans, sunflower seed, rapeseed, canola, saf- flower, flaxseed, mustard seed, or, if des- ignated by the Secretary, other oilseeds. (12) Producer The term ‘‘producer’’ means an owner, oper- ator, landlord, tenant, or sharecropper who shares in the risk of producing a crop and who is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. In deter- mining whether a grower of hybrid seed is a producer, the Secretary shall not take into consideration the existence of a hybrid seed contract. (13) Secretary The term ‘‘Secretary’’ means the Secretary of Agriculture. (14) 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. (15) United States The term ‘‘United States’’, when used in a geographical sense, means all of the States. (Pub. L. 104–127, title I, § 102, Apr. 4, 1996, 110 Stat. 897.) Editorial Notes REFERENCES IN TEXT For definition of ‘‘this chapter’’, referred to in text, see note set out under section 7201 of this title. The Agricultural Act of 1949, referred to in pars. (1), (2), and (4), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, which is classified principally to chapter 35A (§ 1421 et seq.) of this title. Title V of the Act, which was classi- fied generally to subchapter IV (§ 1461 et seq.) of chap- ter 35A of this title, was omitted from the Code. For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables. Section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465), referred to in par. (9), was omitted from the Code. SUBCHAPTER II—PRODUCTION FLEXIBILITY CONTRACTS § 7211. Authorization for use of production flexi- bility contracts (a) Offer and terms The Secretary shall offer to enter into a pro- duction flexibility contract with an eligible owner or producer described in subsection (b) on a farm containing eligible cropland. Under the terms of a contract, the owner or producer shall agree, in exchange for annual contract pay- ments, to— (1) comply with applicable conservation re- quirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); (2) comply with applicable wetland protec- tion requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.); (3) comply with the planting flexibility re- quirements of section 7218 of this title; and (4) use the land subject to the contract for an agricultural or related activity, but not for a nonagricultural commercial or industrial use, as determined by the Secretary. (b) Eligible owners and producers described The following producers and owners shall be eligible to enter into a contract: (1) An owner of eligible cropland who as- sumes all or a part of the risk of producing a crop. (2) A producer (other than an owner) on eli- gible cropland with a share-rent lease of the eligible cropland, regardless of the length of the lease, if the owner enters into the same contract. (3) A producer (other than an owner) on eli- gible cropland who cash rents the eligible cropland under a lease expiring on or after September 30, 2002, in which case the owner is not required to enter into the contract. (4) A producer (other than an owner) on eli- gible cropland who cash rents the eligible cropland under a lease expiring before Sep- tember 30, 2002. The owner of the eligible crop- land may also enter into the same contract. If the producer elects to enroll less than 100 per- cent of the eligible cropland in the contract, the consent of the owner is required. (5) An owner of eligible cropland who cash rents the eligible cropland and the lease term expires before September 30, 2002, if the tenant declines to enter into a contract. In the case of an owner covered by this paragraph, con- tract payments shall not begin under a con- tract until the lease held by the tenant ends. (6) An owner or producer described in any preceding paragraph regardless of whether the owner or producer purchased catastrophic risk protection for a 1996 crop under section 1508(b) of this title. (c) Tenants and sharecroppers In carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. Page 1972 TITLE 7—AGRICULTURE § 7212 (d) Eligible cropland described Land shall be considered to be cropland eligi- ble for coverage under a contract only if the land has contract acreage attributable to the land and— (1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was en- rolled in the acreage reduction program au- thorized for a crop of a contract commodity under section 101B, 103B, 105B, or 107B of the Agricultural Act of 1949 or was considered planted; (2) was subject to a conservation reserve contract under section 1231 of the Food Secu- rity Act of 1985 (16 U.S.C. 3831) whose term ex- pired, or was voluntarily terminated, on or after January 1, 1995; or (3) is released from coverage under a con- servation reserve contract by the Secretary during the period beginning on January 1, 1995, and ending on the date specified in section 7212(a)(2) of this title. (e) Quantity of eligible cropland covered by con- tract Subject to subsection (b)(4), an owner or pro- ducer may enroll as contract acreage all or a portion of the eligible cropland on the farm. (f) Voluntary reduction in contract acreage Subject to subsection (b)(4), an owner or pro- ducer who enters into a contract may subse- quently reduce the quantity of contract acreage covered by the contract. (Pub. L. 104–127, title I, § 111, Apr. 4, 1996, 110 Stat. 898.) Editorial Notes REFERENCES IN TEXT The Food Security Act of 1985, referred to in subsec. (a)(1), (2), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classified generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, of chapter 58 of Title 16, Con- servation. 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. This subchapter, referred to in subsec. (c), was in the original ‘‘this subtitle’’, meaning subtitle B (§§ 111–118) of title I of Pub. L. 104–127, Apr. 4, 1996, 110 Stat. 898, which enacted this subchapter and amended sections 1308, 1308–1, and 1308–3 of this title. For complete classi- fication of subtitle B to the Code, see Tables. Sections 101B, 103B, 105B, and 107B of the Agricultural Act of 1949, referred to in subsec. (d)(1), were classified to sections 1441–2, 1444–2, 1444f, and 1445b–3a, respec- tively, of this title prior to repeal by section 7301(b)(2)(A)–(D) of this title. Statutory Notes and Related Subsidiaries VIOLATION OF CONTRACT; DENIAL OF FUNDS FOR SALARIES Pub. L. 104–180, title VII, § 726, Aug. 6, 1996, 110 Stat. 1600, provided that: ‘‘None of the funds made available in this Act [see Tables for classification] may be used to pay the salaries of employees of the Department of Agriculture who make payments pursuant to a produc- tion flexibility contract entered into under section 111 of the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104–127; 7 U.S.C. 7211) when it is made known to the Federal official having authority to obligate or expend such funds that the land covered by that production flexibility contract is not being used for the production of an agricultural commodity or is not devoted to a conserving use, unless it is also made known to that Federal official that the lack of agricul- tural production or the lack of a conserving use is a consequence of drought, flood, or other natural dis- aster.’’ § 7212. Elements of contracts (a) Time for contracting (1) Commencement To the extent practicable, the Secretary shall commence entering into contracts not later than 45 days after April 4, 1996. (2) Deadline Except as provided in paragraph (3), the Sec- retary may not enter into a contract after Au- gust 1, 1996. (3) Conservation reserve lands (A) In general At the beginning of each fiscal year, the Secretary shall allow an eligible owner or producer on a farm covered by a conserva- tion reserve contract entered into under sec- tion 3831 of title 16 that terminates after the date specified in paragraph (2) to enter into or expand a production flexibility contract to cover the contract acreage of the farm that was subject to the former conservation reserve contract. (B) Amount Contract payments made for contract acreage under this paragraph shall be made at the rate and amount applicable to the an- nual contract payment level for the applica- ble crop. For the fiscal year in which the conservation reserve contract is terminated, the owner or producer subject to the produc- tion flexibility contract may elect to receive either contract payments or a prorated pay- ment under the conservation reserve con- tract, but not both. (b) Duration of contract (1) Beginning date The term of a contract shall begin with— (A) the 1996 crop of a contract commodity; or (B) in the case of acreage that was subject to a conservation reserve contract described in subsection (a)(3), the date the production flexibility contract was entered into or ex- panded to cover the acreage. (2) Ending date The term of a contract shall extend through the 2002 crop, unless earlier terminated by the owner or producer. (c) Estimation of contract payments At the time the Secretary enters into a con- tract, the Secretary shall provide an estimate of the minimum contract payments anticipated to be made during at least the first fiscal year for which contract payments will be made. (d) Time for payment (1) In general An annual contract payment shall be made not later than September 30 of each of fiscal years 1996 through 2002.