7 U.S.C. § 7914 — Availability of counter-cyclical payments

Page 2124 TITLE 7—AGRICULTURE § 7914 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, § 1103, May 13, 2002, 116 Stat. 149; Pub. L. 109–171, title I, § 1102(a), Feb. 8, 2006, 120 Stat. 5.) Editorial Notes AMENDMENTS 2006—Subsec. (d)(2). Pub. L. 109–171 substituted ‘‘2005 crop years, up to 40 percent of the direct payment for a covered commodity for the 2006 crop year, and up to 22 percent of the direct payment for a covered com- modity for the 2007 crop year,’’ for ‘‘2007 crop years’’. § 7914. Availability of counter-cyclical payments (a) Payment required For each of the 2002 through 2007 crop years for each covered commodity, the Secretary shall make counter-cyclical payments to producers on farms for which payment yields and base acres are established with respect to the covered com- modity if the Secretary determines that the ef- fective price for the covered commodity is less than the target price for the covered com- modity. (b) Effective price For purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following: (1) The higher of the following: (A) The national average market price re- ceived by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary. (B) The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable pe- riod under subchapter II. (2) The payment rate in effect for the cov- ered commodity under section 7913 of this title for the purpose of making direct payments with respect to the covered commodity. (c) Target price (1) 2002 and 2003 crop years For purposes of the 2002 and 2003 crop years, the target prices for covered commodities shall be as follows: (A) Wheat, $3.86 per bushel. (B) Corn, $2.60 per bushel. (C) Grain sorghum, $2.54 per bushel. (D) Barley, $2.21 per bushel. (E) Oats, $1.40 per bushel. (F) Upland cotton, $0.7240 per pound. (G) Rice, $10.50 per hundredweight. (H) Soybeans, $5.80 per bushel. (I) Other oilseeds, $0.0980 per pound. (2) Subsequent crop years For purposes of each of the 2004 through 2007 crop years, the target prices for covered com- modities shall be as follows: (A) Wheat, $3.92 per bushel. (B) Corn, $2.63 per bushel. (C) Grain sorghum, $2.57 per bushel. (D) Barley, $2.24 per bushel. (E) Oats, $1.44 per bushel. (F) Upland cotton, $0.7240 per pound. (G) Rice, $10.50 per hundredweight. (H) Soybeans, $5.80 per bushel. (I) Other oilseeds, $0.1010 per pound. (d) Payment rate The payment rate used to make counter-cycli- cal payments with respect to a covered com- modity for a crop year shall be equal to the dif- ference between— (1) the target price for the covered com- modity; and (2) the effective price determined under sub- section (b) for the covered commodity. (e) Payment amount If counter-cyclical payments are required to be paid for any of the 2002 through 2007 crop years of a covered commodity, 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 of the covered com- modity on the farm. (3) The payment yield or updated payment yield for the farm, depending on the election of the owner of the farm under section 7912 of this title. (f) 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 the crop of a covered commodity, the Secretary shall make the counter-cyclical payments for the crop as soon as practicable after the end of the 12-month marketing year for the covered commodity. (2) Availability of partial payments If, before the end of the 12-month marketing year for a covered commodity, the Secretary estimates that counter-cyclical payments will be required for the crop of the covered com- modity, the Secretary shall give producers on a farm the option to receive partial payments of the counter-cyclical payment projected to be made for that crop of the covered com- modity. (3) Time for partial payments (A) 2002 through 2006 crop years When the Secretary makes partial pay- ments available under paragraph (2) for a covered commodity 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 Page 2125 TITLE 7—AGRICULTURE § 7915 calendar year in which the crop of the cov- ered commodity is harvested; (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 the covered commodity. (B) 2007 crop year When the Secretary makes partial pay- ments available for a covered commodity 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 the cov- ered commodity; and (ii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity. (4) Amount of partial payments (A) 2002 through 2006 crop years (i) First partial payment For each of the 2002 through 2006 crop years of a covered commodity, the first partial payment under paragraph (3) to the producers on a farm may not exceed 35 per- cent of the projected counter-cyclical pay- ment for the covered commodity for the crop year, as determined by the Secretary. (ii) Second partial payment The second partial payment for a cov- ered commodity for a crop year may not exceed the difference between— (I) 70 percent of the projected counter- cyclical payment (including any revision thereof) for the crop of the covered com- modity; and (II) the amount of the payment made under clause (i). (iii) Final payment The final payment for a covered com- modity 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 the covered commodity 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. (B) 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 covered commodity 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 the covered commodity 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 that receive a par- tial payment under this subsection for a crop year shall repay to the Secretary the amount, if any, by which the total of the partial pay- ments exceed the actual counter-cyclical pay- ment to be made for the covered commodity for that crop year. (Pub. L. 107–171, title I, § 1104, May 13, 2002, 116 Stat. 150.) Editorial Notes REFERENCES IN TEXT Subchapter II, referred to in subsec. (b)(1)(B), was in the original ‘‘subtitle B’’, meaning subtitle B (§§ 1201–1209) of title I of Pub. L. 107–171, May 13, 2002, 116 Stat. 155, which is classified principally to sub- chapter II of this chapter. For complete classification of subtitle B to the Code, see Tables. § 7915. Producer agreement required as condi- tion of 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 with respect to the farm, the producers shall agree, during the crop year for which the pay- ments are made and in exchange for the pay- ments— (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 the Act (16 U.S.C. 3821 et seq.); (C) to comply with the planting flexibility requirements of section 7916 of this title; (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 peanuts for the farm under subchapter III for an agricul- tural or conserving use, and not for a non- agricultural commercial or industrial use, as determined by the Secretary; and (E) to effectively control noxious weeds and otherwise maintain the land in accord- ance with sound agricultural practices, as determined by the Secretary, if the agricul- tural or conserving use involves the noncul- tivation of any portion of the land referred to in subparagraph (D). (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.