For the crop year in which a base acres adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both.
If the sum of the base acres for a farm, together with the acreage described in paragraph (2) exceeds the actual cropland acreage of the farm, the Secretary shall reduce the base acres for 1 or more covered commodities for the farm or the base acres for peanuts for the farm so that the sum of the base acres and acreage described in paragraph (2) does not exceed the actual cropland acreage of the farm.
The Secretary shall give the owner of the farm the opportunity to select the base acres for a covered commodity or the base acres for peanuts for the farm against which the reduction required by paragraph (1) will be made.
In applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary.
The Secretary shall take into account section 8752(b) of this title when applying the requirements of this subsection.
The owner of a farm may reduce, at any time, the base acres for any covered commodity for the farm.
A reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary.
The Secretary shall establish procedures to identify land described in subparagraph (A).
Each year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall submit to Congress a report that describes the results of the actions taken under paragraph (2).
Except as provided in paragraph (2) and notwithstanding any other provision of this chapter, a producer on a farm may not receive direct payments, counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres or less, as determined by the Secretary.
Paragraphs (1) through (3) shall not apply during the 2008 crop year.