7 U.S.C. § 7956 — Planting flexibility

Page 2139 TITLE 7—AGRICULTURE § 7956 (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. (b) Transfer or change of interest in farm (1) Termination Except as provided in paragraph (2), a trans- fer of (or change in) the interest of the pro- ducers on a farm in the base acres for peanuts for which direct payments or counter-cyclical payments are made shall result in the termi- nation of the payments with respect to those acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). The termination shall take ef- fect on the date determined by the Secretary. (2) Exception If a producer entitled to a direct payment or counter-cyclical payment dies, becomes in- competent, or is otherwise unable to receive the payment, the Secretary shall make the payment, in accordance with rules issued by the Secretary. (c) Acreage reports As a condition on the receipt of direct pay- ments, counter-cyclical payments, marketing assistance loans, or loan deficiency payments under this subchapter, the Secretary shall re- quire the producers on a farm to which a pay- ment yield and base acres for peanuts are as- signed under section 7952 of this title to submit to the Secretary annual acreage reports with re- spect to all cropland on the farm. (d) Tenants and sharecroppers In carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. (e) Sharing of payments The Secretary shall provide for the sharing of direct payments and counter-cyclical payments among the producers on a farm on a fair and eq- uitable basis. (Pub. L. 107–171, title I, § 1305, May 13, 2002, 116 Stat. 173.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in subsecs. (a)(1), (c), and (d), was in the original ‘‘this subtitle’’, meaning sub- title C (§§ 1301–1310) of Pub. L. 107–171, title I, May 13, 2002, 116 Stat. 166, which is classified principally to this subchapter. For complete classification of subtitle C to the Code, see References in Text note set out under sec- tion 7951 of this title and Tables. The Food Security Act of 1985, referred to in subsec. (a)(1)(A), (B), is Pub. L. 99–198, Dec. 23, 1985, 99 Stat. 1354. Subtitles B and C of title XII of the Act are classi- fied generally to subchapters II (§ 3811 et seq.) and III (§ 3821 et seq.), respectively, 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. § 7956. Planting flexibility (a) Permitted crops Subject to subsection (b), any commodity or crop may be planted on the base acres for pea- nuts on a farm. (b) Limitations regarding certain commodities (1) General limitation The planting of an agricultural commodity specified in paragraph (2) shall be prohibited on base acres for peanuts unless the com- modity, if planted, is destroyed before harvest. (2) Treatment of trees and other perennials The planting of an agricultural commodity specified in paragraph (3) that is produced on a tree or other perennial plant shall be prohib- ited on base acres for peanuts. (3) Covered agricultural commodities Paragraphs (1) and (2) apply to the following agricultural commodities: (A) Fruits. (B) Vegetables (other than lentils, mung beans, and dry peas). (C) Wild rice. (c) Exceptions Paragraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural com- modity specified in paragraph (3) of that sub- section— (1) in any region in which there is a history of double-cropping of peanuts with agricul- tural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be per- mitted; (2) on a farm that the Secretary determines has a history of planting agricultural com- modities specified in subsection (b)(3) on the base acres for peanuts, except that direct pay- ments and counter-cyclical payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or (3) by the producers on a farm that the Sec- retary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that— (A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and (B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural com- modity. (Pub. L. 107–171, title I, § 1306, May 13, 2002, 116 Stat. 174.) Page 2140 TITLE 7—AGRICULTURE § 7957 § 7957. Marketing assistance loans and loan defi- ciency payments for peanuts (a) Nonrecourse loans available (1) Availability For each of the 2002 through 2007 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. The loans shall be made under terms and conditions that are prescribed by the Sec- retary and at the loan rate established under subsection (b). (2) Eligible production The producers on a farm shall be eligible for a marketing assistance loan under this sub- section for any quantity of peanuts produced on the farm. (3) Treatment of certain commingled commod- ities In carrying out this subsection, the Sec- retary shall make loans to producers on a farm that would be eligible to obtain a mar- keting assistance loan, but for the fact the peanuts owned by the producers on the farm are commingled with other peanuts in facili- ties unlicensed for the storage of agricultural commodities by the Secretary or a State li- censing authority, if the producers obtaining the loan agree to immediately redeem the loan collateral in accordance with section 7286 of this title. (4) Options for obtaining loan A marketing assistance loan under this sub- section, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through— (A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or (B) the Farm Service Agency. (5) Storage of loan peanuts As a condition on the Secretary’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree— (A) to provide such storage on a non- discriminatory basis; and (B) to comply with such additional re- quirements as the Secretary considers ap- propriate to accomplish the purposes of this section and promote fairness in the adminis- tration of the benefits of this section. (6) Payment of peanut storage costs Effective for the 2002 through 2006 crops of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall use the funds of the Com- modity Credit Corporation to pay storage, handling, and other associated costs. This au- thority terminates beginning with the 2007 crop of peanuts. (7) Marketing A marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that con- forms to consumer needs, including the sepa- ration of peanuts by type and quality. (b) Loan rate The loan rate for a marketing assistance loan under for peanuts subsection (a) shall be equal to $355 per ton. (c) Term of loan (1) In general A marketing assistance loan for peanuts under subsection (a) shall have a term of 9 months beginning on the first day of the first month after the month in which the loan is made. (2) Extensions prohibited The Secretary may not extend the term of a marketing assistance loan for peanuts under subsection (a). (d) Repayment rate (1) In general The Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of— (A) the loan rate established for peanuts under subsection (b), plus interest (deter- mined in accordance with section 7283 of this title); or (B) a rate that the Secretary determines will— (i) minimize potential loan forfeitures; (ii) minimize the accumulation of stocks of peanuts by the Federal Government; (iii) minimize the cost incurred by the Federal Government in storing peanuts; and (iv) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally. (2) Good faith exception to beneficial interest requirement For the 2002 crop year only, in the case of the producers on a farm that marketed or oth- erwise lost beneficial interest in the peanuts for which a marketing assistance loan was made under this section before repaying the loan, the Secretary shall permit the producers to repay the loan at the applicable repayment rate that was in effect for peanuts under this subsection on the date that the producers lost beneficial interest, as determined by the Sec- retary, if the Secretary determines the pro- ducers acted in good faith. (e) Loan deficiency payments (1) Availability The Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan for peanuts under subsection (a), agree to forgo obtaining the loan for the peanuts in return for loan deficiency pay- ments under this subsection. (2) Computation A loan deficiency payment under this sub- section shall be computed by multiplying—