Collapse to view only § 7912. Establishment of payment yield
- § 7911. Establishment of base acres and payment acres for a farm
- § 7912. Establishment of payment yield
- § 7913. Availability of direct payments
- § 7914. Availability of counter-cyclical payments
- § 7915. Producer agreement required as condition of provision of direct payments and counter-cyclical payments
- § 7916. Planting flexibility
- § 7917. Relation to remaining payment authority under production flexibility contracts
- § 7918. Period of effectiveness
§ 7911. Establishment of base acres and payment acres for a farm
(a) Election by owner of base acres calculation method
(1) Alternative calculation methodsFor the purpose of making direct payments and counter-cyclical payments with respect to a farm, the Secretary shall give an owner of the farm an opportunity to elect 1 of the following as the method by which the base acres of all covered commodities on the farm are to be determined:
(A) Subject to paragraphs (3) and (4), the 4-year average of the following:
(i) Acreage planted on the farm to covered commodities for harvest, grazing, haying, silage, or other similar purposes for the 1998 through 2001 crop years.
(ii) Any acreage on the farm that the producers were prevented from planting during the 1998 through 2001 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary.
(B) Subject to paragraph (3), the sum of the following:
(i) The contract acreage (as defined in section 7202 of this title) used by the Secretary to calculate the fiscal year 2002 payment authorized under section 7214 of this title for the covered commodities on the farm.
(ii) The 4-year average of eligible oilseed acreage on the farm for the 1998 through 2001 crop years, as determined by the Secretary under paragraph (2).
(2) Eligible oilseed acreage
(A) CalculationFor purposes of paragraph (1)(B)(ii), the eligible acreage for each oilseed on a farm during each of the 1998 through 2001 crop years shall be determined in the manner provided in paragraph (1)(A), except that the total acreage for all oilseeds on the farm for a crop year may not exceed the difference between—
(i) the total acreage determined under paragraph (1)(A) for all covered commodities for that crop year; and
(ii) the total contract acreage determined under paragraph (1)(B)(i).
(B) Effect of negative number
(C) Offset of contract acreage
(3) Inclusion of all 4 years in average
(4) Treatment of multiple planting or prevented planting
(b) Single election; time for election
(1) Notice of election opportunityAs soon as practicable after May 13, 2002, the Secretary shall provide notice to owners of farms regarding their opportunity to make the election described in subsection (a). The notice shall include the following:
(A) Notice that the opportunity of an owner to make the election is being provided only once.
(B) Information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary.
(2) Election deadline
(c) Effect of failure to make election
(d) Application of election to all covered commodities
(e) Treatment of conservation reserve contract acreage
(1) In generalThe Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm whenever either of the following circumstances occurs:
(A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated.
(B) Cropland is released from coverage under a conservation reserve contract by the Secretary.
(2) Special payment rules
(f) Payment acres
(g) Prevention of excess base acres
(1) Required reduction
(2) Other acreageFor purposes of paragraph (1), the Secretary shall include the following:
(A) Any base acres for peanuts for the farm under subchapter III.
(B) Any acreage on the farm enrolled in the conservation reserve program or wetlands 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 payments are made in exchange for not producing an agricultural commodity on the acreage.
(3) Selection of acres
(4) Exception for double-cropped acreage
(5) Coordinated application of requirements
(h) Permanent reduction in base acres
(Pub. L. 107–171, title I, § 1101, May 13, 2002, 116 Stat. 144.)
§ 7912. Establishment of payment yield
(a) Establishment and purpose
(b) Use of farm program payment yield
(c) Farms without farm program payment yield
(d) Payment yields for oilseeds
(1) Determination of average yield
(2) Adjustment for payment yieldThe payment yield for a farm for an oilseed shall be equal to the product of the following:
(A) The average yield for the oilseed determined under paragraph (1).
(B) The ratio resulting from dividing the national average yield for the oilseed for the 1981 through 1985 crops by the national average yield for the oilseed for the 1998 through 2001 crops.
(3) Use of partial county average yield
(e) Opportunity to partially update yields used to determine counter-cyclical payments
(1) Election to update
(2) Time for election
(3) Methods of updating yieldsIf the owner of a farm elects to update yields under this subsection, the payment yield for a covered commodity on the farm, for the purpose 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 direct 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 Secretary, 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 commodity 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 Secretary, 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
(5) Application of election and method to all covered commodities
(Pub. L. 107–171, title I, § 1102, May 13, 2002, 116 Stat. 147.)
§ 7913. Availability of direct payments
(a) Payment required
(b) Payment rate
The payment rates used to make direct payments 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 commodity 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 commodity on the farm.
(3) The payment yield for the covered commodity 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 covered commodity is harvested.
(2) Advance payments
(3) Repayment of advance payments
(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.)
§ 7914. Availability of counter-cyclical payments
(a) Payment required
(b) Effective priceFor 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 received 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 period under subchapter II.
(2) The payment rate in effect for the covered 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 yearsFor 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 yearsFor purposes of each of the 2004 through 2007 crop years, the target prices for covered commodities 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 rateThe payment rate used to make counter-cyclical payments with respect to a covered commodity for a crop year shall be equal to the difference between—
(1) the target price for the covered commodity; and
(2) the effective price determined under subsection (b) for the covered commodity.
(e) Payment amountIf 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 commodity 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
(2) Availability of partial payments
(3) Time for partial payments
(A) 2002 through 2006 crop yearsWhen the Secretary makes partial payments 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 October 1, and, to the maximum extent practicable, not later than October 31, of the calendar year in which the crop of the covered 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 yearWhen the Secretary makes partial payments 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 covered 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
(ii) Second partial paymentThe second partial payment for a covered 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 commodity; and(II) the amount of the payment made under clause (i).
(iii) Final paymentThe final payment for a covered commodity for a crop year shall be equal to the difference between—(I) the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and(II) the amount of the partial payments made to the producers under clauses (i) and (ii) for that crop year.
(B) 2007 crop year
(i) First partial payment
(ii) Final paymentThe final payment for the 2007 crop year shall be equal to the difference between—(I) the actual counter-cyclical payment 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
(Pub. L. 107–171, title I, § 1104, May 13, 2002, 116 Stat. 150.)
§ 7915. Producer agreement required as condition 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 payments are made and in exchange for the payments—
(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 protection 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 quantity equal to the attributable base acres for the farm and any base acres for peanuts for the farm under subchapter III for an agricultural or conserving use, and not for a nonagricultural commercial or industrial use, as determined by the Secretary; and
(E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D).
(2) Compliance
(3) Modification
(b) Transfer or change of interest in farm
(1) Termination
(2) Exception
(c) Acreage reports
(d) Tenants and sharecroppers
(e) Sharing of payments
(Pub. L. 107–171, title I, § 1105, May 13, 2002, 116 Stat. 152.)
§ 7916. Planting flexibility
(a) Permitted crops
(b) Limitations regarding certain commodities
(1) General limitation
(2) Treatment of trees and other perennials
(3) Covered agricultural commoditiesParagraphs (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) ExceptionsParagraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection—
(1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted;
(2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that direct payments 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 Secretary 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 commodity.
(d) Special rule for 2002 crop year
(Pub. L. 107–171, title I, § 1106, May 13, 2002, 116 Stat. 153.)
§ 7917. Relation to remaining payment authority under production flexibility contracts
(a) Termination of superseded payment authority
(b) Contract payments made before enactment
(Pub. L. 107–171, title I, § 1107, May 13, 2002, 116 Stat. 154.)
§ 7918. Period of effectiveness
This subchapter shall be effective beginning with the 2002 crop year of each covered commodity through the 2007 crop year.
(Pub. L. 107–171, title I, § 1108, May 13, 2002, 116 Stat. 155.)