7 U.S.C. § 7913 — Availability of direct payments

Page 2123 TITLE 7—AGRICULTURE § 7913 2001 crop years was less than 75 percent of the county yield for that oilseed, the Secretary shall assign a yield for that crop year equal to 75 percent of the county yield for the purpose of determining the average under paragraph (1). (e) Opportunity to partially update yields used to determine counter-cyclical payments (1) Election to update If the owner of a farm elects to use the base acres calculation method described in section 7911(a)(1)(A) of this title, the owner shall also have a 1-time opportunity to elect to use 1 of the methods described in paragraph (3) to par- tially update the payment yields that would otherwise be used in calculating any counter- cyclical payments for covered commodities on the farm. (2) Time for election The election under paragraph (1) shall be made at the same time and in the same man- ner as the Secretary prescribes for the elec- tion required under section 7911 of this title. (3) Methods of updating yields If the owner of a farm elects to update yields under this subsection, the payment yield for a covered commodity on the farm, for the pur- pose of calculating counter-cyclical payments only, shall be equal to the yield determined using either of the following: (A) The sum of the following: (i) The payment yield applicable for di- rect payments for the covered commodity on the farm. (ii) 70 percent of the difference between— (I) the average yield per planted acre for the crop of the covered commodity on the farm for the 1998 through 2001 crop years, as determined by the Sec- retary, excluding any crop year in which the acreage planted to the crop of the covered commodity was zero; and (II) the payment yield applicable for direct payments for the covered com- modity on the farm. (B) 93.5 percent of the average of the yield per planted acre for the crop of the covered commodity on the farm for the 1998 through 2001 crop years, as determined by the Sec- retary, excluding any crop year in which the acreage planted to the crop of the covered commodity was zero. (4) Use of partial county average yield If the yield per planted acre for a crop of the covered commodity for a farm for any of the 1998 through 2001 crop years was less than 75 percent of the county yield for that com- modity, the Secretary shall assign a yield for that crop year equal to 75 percent of the coun- ty yield for the purpose of determining the av- erage yield under paragraph (3). (5) Application of election and method to all covered commodities The owner of a farm may not elect the meth- od described in paragraph (3)(A) for 1 covered commodity on the farm and the method de- scribed in paragraph (3)(B) for other covered commodities on the farm. (Pub. L. 107–171, title I, § 1102, May 13, 2002, 116 Stat. 147.) Editorial Notes REFERENCES IN TEXT Section 1465 of this title, referred to in subsec. (b), was omitted from the Code. § 7913. Availability of direct payments (a) Payment required For each of the 2002 through 2007 crop years of each covered commodity, the Secretary shall make direct payments to producers on farms for which payment yields and base acres are estab- lished. (b) Payment rate The payment rates used to make direct pay- ments with respect to covered commodities for a crop year are as follows: (1) Wheat, $0.52 per bushel. (2) Corn, $0.28 per bushel. (3) Grain sorghum, $0.35 per bushel. (4) Barley, $0.24 per bushel. (5) Oats, $0.024 per bushel. (6) Upland cotton, $0.0667 per pound. (7) Rice, $2.35 per hundredweight. (8) Soybeans, $0.44 per bushel. (9) Other oilseeds, $0.0080 per pound. (c) Payment amount The amount of the direct payment to be paid to the producers on a farm for a covered com- modity for a crop year shall be equal to the product of the following: (1) The payment rate specified in subsection (b). (2) The payment acres of the covered com- modity on the farm. (3) The payment yield for the covered com- modity for the farm. (d) 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 before October 1 of the calendar year in which the crop of the cov- ered commodity is harvested. (2) Advance payments At the option of the producers on a farm, up to 50 percent of the direct payment for a cov- ered commodity for any of the 2003 through 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 commodity for the 2007 crop year, shall be paid to the producers in ad- vance. The producers shall 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 De- cember 1 of the calendar year before the cal- endar year in which the crop of the covered commodity is harvested through the month within which the direct payment would other- wise be made. The producers may change the selected month for a subsequent advance pay- 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