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US (United States) Code. Title 7. Chapter 106: Commodity programs

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-CITE-

7 USC CHAPTER 106 - COMMODITY PROGRAMS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

-HEAD-

CHAPTER 106 - COMMODITY PROGRAMS

-MISC1-

Sec.

7901. Definitions.

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

7911. Establishment of base acres and payment acres for a farm.

(a) Election by owner of base acres calculation

method.

(b) Single election; time for election.

(d) Application of election to all covered

commodities.

(e) Treatment of conservation reserve contract

acreage.

(f) Payment acres.

(g) Prevention of excess base acres.

(h) Permanent reduction in base acres.

7912. Establishment of payment yield.

(a) Establishment and purpose.

(b) Use of farm program payment yield.

(d) Payment yields for oilseeds.

(e) Opportunity to partially update yields used to

determine counter-cyclical payments.

7913. Availability of direct payments.

(a) Payment required.

(b) Payment rate.

(d) Time for payment.

7914. Availability of counter-cyclical payments.

(a) Payment required.

(b) Effective price.

(d) Payment rate.

(e) Payment amount.

(f) Time for payments.

7915. Producer agreement required as condition of provision of

direct payments and counter-cyclical payments.

(a) Compliance with certain requirements.

(b) Transfer or change of interest in farm.

(d) Tenants and sharecroppers.

(e) Sharing of payments.

7916. Planting flexibility.

(a) Permitted crops.

(b) Limitations regarding certain commodities.

(d) Special rule for 2002 crop year.

7917. Relation to remaining payment authority under production

flexibility contracts.

(a) Termination of superseded payment authority.

(b) Contract payments made before enactment.

7918. Period of effectiveness.

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

7931. Availability of nonrecourse marketing assistance loans for

loan commodities.

(a) Nonrecourse loans available.

(b) Eligible production.

(d) Compliance with conservation and wetlands

requirements.

(e) Termination of superseded loan authority.

7932. Loan rates for nonrecourse marketing assistance loans.

(a) 2002 and 2003 crop years.

(b) 2004 through 2007 crop years.

7933. Term of loans.

(a) Term of loan.

(b) Extensions prohibited.

7934. Repayment of loans.

(a) General rule.

(b) Repayment rates for upland cotton and rice.

(d) Prevailing world market price.

(e) Adjustment of prevailing world market price for

upland cotton.

(f) Good faith exception to beneficial interest

requirement.

7935. Loan deficiency payments.

(a) Availability of loan deficiency payments.

(b) Computation.

(d) Exception for extra long staple cotton.

(e) Effective date for payment rate determination.

(f) Special loan deficiency payment rules.

7936. Payments in lieu of loan deficiency payments for grazed

acreage.

(a) Eligible producers.

(b) Payment amount.

(d) Prohibition on crop insurance indemnity or

noninsured crop assistance.

7937. Special marketing loan provisions for upland cotton.

(a) Cotton user marketing certificates.

(b) Special import quota.

7938. Special competitive provisions for extra long staple cotton.

(a) Competitiveness program.

(b) Payments under program; trigger.

(d) Payment amount.

(e) Form of payment.

7939. Availability of recourse loans for high moisture feed grains

and seed cotton.

(a) High moisture feed grains.

(b) Recourse loans available for seed cotton.

(d) Termination of superseded loan authority.

SUBCHAPTER III - PEANUTS

7951. Definitions.

7952. Establishment of payment yield and base acres for peanuts for

a farm.

(a) Average yield and acreage average for historic

peanut producers.

(b) Assignment of average yields and average acreage

to farms.

(d) Base acres for peanuts.

(e) Treatment of conservation reserve contract

acreage.

(f) Prevention of excess base acres for peanuts.

(g) Permanent reduction in base acres for peanuts.

7953. Availability of direct payments for peanuts.

(a) Payment required.

(b) Payment rate.

(d) Payment amount for subsequent crop years.

(e) Time for payment.

7954. Availability of counter-cyclical payments for peanuts.

(a) Payment required.

(b) Effective price.

(d) Payment rate.

(e) Payment amount for 2002 crop year.

(f) Payment amount for subsequent crop years.

(g) Time for payments.

7955. Producer agreement required as condition on provision of

direct payments and counter-cyclical payments.

(a) Compliance with certain requirements.

(b) Transfer or change of interest in farm.

(d) Tenants and sharecroppers.

(e) Sharing of payments.

7956. Planting flexibility.

(a) Permitted crops.

(b) Limitations regarding certain commodities.

7957. Marketing assistance loans and loan deficiency payments for

peanuts.

(a) Nonrecourse loans available.

(b) Loan rate.

(d) Repayment rate.

(e) Loan deficiency payments.

(f) Compliance with conservation and wetlands

requirements.

(g) Reimbursable agreements and payment of

administrative expenses.

7958. Miscellaneous provisions.

(a) Mandatory inspection.

(b) Termination of Peanut Administrative Committee.

(d) Priority.

(e) Consistent standards.

(f) Authorization of appropriations.

(g) Transition rule.

(h) Effective date.

7959. Termination of marketing quota programs for peanuts and

compensation to peanut quota holders for loss of quota asset

value.

(a) Repeal of marketing quota.

(b) Compensation contract required.

(d) Payment amount.

(e) Assignment of payments.

(f) Eligible peanut quota holder.

(g) Successions in payment eligibility and attachment

of eligibility to persons.

7960. Repeal of superseded price support authority and effect of

repeal.

(a) Omitted.

(b) Disposal.

crop year.

SUBCHAPTER IV - SUGAR

7971. Storage facility loans.

(a) In general.

(b) Eligible processors.

SUBCHAPTER V - DAIRY

7981. Milk price support program.

(a) Support activities.

(b) Rate.

(d) Special rule for butter and nonfat dry milk

purchase prices.

(e) Commodity Credit Corporation.

7982. National dairy market loss payments.

(a) Definitions.

(b) Payments.

(d) Payment quantity.

(e) Payments.

(f) Signup.

(g) Duration of contract.

(h) Transition rule.

7983. Study of national dairy policy.

(a) Study required.

(b) Report.

7984. Studies of effects of changes in approach to national dairy

policy and fluid milk identity standards.

(a) Federal dairy policy changes.

(b) Fluid milk identity standards.

SUBCHAPTER VI - ADMINISTRATION

7991. Administration generally.

(a) Use of Commodity Credit Corporation.

(b) Determinations by Secretary.

(d) Treatment of advance payment option.

(e) Adjustment authority related to Uruguay Round

compliance.

7992. Suspension of permanent price support authority.

(a) Agricultural Adjustment Act of 1938.

(b) Agricultural Act of 1949.

7993. Commission on application of payment limitations.

(a) Establishment.

(b) Duties.

(d) Quorum.

(e) Chairperson.

(f) Report.

(g) Hearings.

(h) Information from Federal agencies.

(i) Postal services.

(j) Assistance from Secretary.

(k) Compensation of members.

(l) Federal Advisory Committee Act.

7994. Study.

7995. Assignment of payments.

7996. Equitable relief from ineligibility for loans, payments, or

other benefits.

(a) Definitions.

(b) Equitable relief.

(d) Remedial action.

(e) Equitable relief by State Directors and State

Conservationists.

(f) Judicial review.

(g) Reports.

(h) Relationship to other law.

7997. Tracking of benefits.

7998. Estimates of net farm income.

7999. Availability of incentive payments for certain producers.

(a) Incentive payments required.

(b) Conditions on implementation.

8000. Renewed availability of market loss assistance and certain

emergency assistance to persons that failed to receive assistance

under earlier authorities.

(a) Authority to provide assistance.

(b) Limitation.

8001. Producer retention of erroneously paid loan deficiency

payments and marketing loan gains.

8002. Implementation funding and information management.

(a) Additional funds for administrative costs.

(b) Information management.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1308-3, 7282, 7284 of

this title.

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7 USC Sec. 7901 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

-HEAD-

Sec. 7901. Definitions

-STATUTE-

In this chapter (other than subchapter III of this chapter):

(1) Agricultural Act of 1949

The term ''Agricultural Act of 1949'' means the Agricultural

Act of 1949 (7 U.S.C. 1421 et seq.), as in effect prior to the

suspensions under section 7301 of this title.

(2) Base acres

The term ''base acres'', with respect to a covered commodity on

a farm, means the number of acres established under section 7911

of this title with respect to the covered commodity on the

election made by the owner of the farm under subsection (a) of

such section.

(3) Counter-cyclical payment

The term ''counter-cyclical payment'' means a payment made to

producers on a farm under section 7914 of this title.

(4) Covered commodity

The term ''covered commodity'' means wheat, corn, grain

sorghum, barley, oats, upland cotton, rice, soybeans, and other

oilseeds.

(5) Direct payment

The term ''direct payment'' means a payment made to producers

on a farm under section 7913 of this title.

(6) Effective price

The term ''effective price'', with respect to a covered

commodity for a crop year, means the price calculated by the

Secretary under section 7914 of this title to determine whether

counter-cyclical payments are required to be made for that crop

year.

(7) Extra long staple cotton

The term ''extra long staple cotton'' means cotton that -

(A) is produced from pure strain varieties of the Barbadense

species or any hybrid thereof, or other similar types of extra

long staple cotton, designated by the Secretary, having

characteristics needed for various end uses for which United

States upland cotton is not suitable and grown in irrigated

cotton-growing regions of the United States designated by the

Secretary or other areas designated by the Secretary as

suitable for the production of the varieties or types; and

(B) is ginned on a roller-type gin or, if authorized by the

Secretary, ginned on another type gin for experimental

purposes.

(8) Loan commodity

The term ''loan commodity'' means wheat, corn, grain sorghum,

barley, oats, upland cotton, extra long staple cotton, rice,

soybeans, other oilseeds, wool, mohair, honey, dry peas, lentils,

and small chickpeas.

(9) Other oilseed

The term ''other oilseed'' means a crop of sunflower seed,

rapeseed, canola, safflower, flaxseed, mustard seed, or, if

designated by the Secretary, another oilseed.

(10) Payment acres

The term ''payment acres'' means 85 percent of the base acres

of a covered commodity on a farm, as established under section

7911 of this title, on which direct payments and counter-cyclical

payments are made.

(11) Payment yield

(A) In general

The term ''payment yield'' means the yield established under

section 7912 of this title for a farm for a covered commodity.

(B) Updated payment yield

The term ''updated payment yield'' means the payment yield

elected by the owner of a farm under section 7912(e) of this

title to be used in calculating the counter-cyclical payments

for the farm.

(12) Producer

The term ''producer'' means an owner, operator, landlord,

tenant, or sharecropper that shares in the risk of producing a

crop and is entitled to share in the crop available for marketing

from the farm, or would have shared had the crop been produced.

In determining whether a grower of hybrid seed is a producer, the

Secretary shall not take into consideration the existence of a

hybrid seed contract and shall ensure that program requirements

do not adversely affect the ability of the grower to receive a

payment under this chapter.

(13) Secretary

The term ''Secretary'' means the Secretary of Agriculture.

(14) State

The term ''State'' means each of the several States of the

United States, the District of Columbia, the Commonwealth of

Puerto Rico, and any other territory or possession of the United

States.

(15) Target price

The term ''target price'' means the price per bushel (or other

appropriate unit in the case of upland cotton, rice, and other

oilseeds) of a covered commodity used to determine the payment

rate for counter-cyclical payments.

(16) United States

The term ''United States'', when used in a geographical sense,

means all of the States.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1001, May 13, 2002, 116 Stat. 143.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

title'', meaning title I of Pub. L. 107-171, May 13, 2002, 116

Stat. 143, which enacted this chapter and section 1308-3a of this

title, amended sections 450l, 1301, 1308 to 1308-3, 1308-4, 1308-5,

1314b, 1359aa to 1359kk, 1361, 1371, 1373, 1378, 1428, 1441, 1637a,

4501 to 4504, 4507, 6402, 6414, 6998, 7001, 7235, 7272, 7282 to

7284, 7286, and 7301 of this title, and sections 713a-4 and 714c of

Title 15, Commerce and Trade, repealed sections 1339a, 1357 to

1359a, and 7271 of this title and section 3830a of Title 16,

Conservation, and enacted provisions set out as notes under

sections 1308 and 7272 of this title. For complete classification

of title I to the Code, see Tables.

Subchapter III of this chapter, referred to in text, was in the

original ''subtitle C'', meaning subtitle C (Sec. 1301-1310) of

title I of Pub. L. 107-171, May 13, 2002, 116 Stat. 166, which is

classified principally to subchapter III of this chapter. For

complete classification of subtitle C to the Code, see References

in Text note set out under section 7951 of this title and Tables.

The Agricultural Act of 1949, referred to in par. (1), is act

Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is

classified principally to chapter 35A (Sec. 1421 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 1421 of this title and

Tables.

-MISC2-

SHORT TITLE

Pub. L. 107-171, Sec. 1(a), May 13, 2002, 116 Stat. 134, provided

that: ''This Act (see Tables for classification) may be cited as

the 'Farm Security and Rural Investment Act of 2002'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1308 of this title.

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7 USC SUBCHAPTER I - DIRECT PAYMENTS AND

COUNTER-CYCLICAL PAYMENTS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1308, 1308-3a, 7936,

7939, 7952, 7955, 7991 of this title.

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7 USC Sec. 7911 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7911. Establishment of base acres and payment acres for a farm

-STATUTE-

(a) Election by owner of base acres calculation method

(1) Alternative calculation methods

For 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) Calculation

For 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

If the subtraction performed under subparagraph (A) results

in a negative number, the eligible oilseed acreage on the farm

for that crop year shall be zero for purposes of determining

the 4-year average.

The owner of a farm may increase the eligible acreage for an

oilseed on the farm by reducing the contract acreage determined

under paragraph (1)(B)(i) for 1 or more covered commodities on

an acre-for-acre basis, except that the total base acreage for

each oilseed on the farm may not exceed the 4-year average of

each oilseed determined under paragraph (1)(B)(ii).

(3) Inclusion of all 4 years in average

For the purpose of determining a 4-year acreage average under

this subsection for a farm, the Secretary shall not exclude any

crop year in which a covered commodity was not planted.

(4) Treatment of multiple planting or prevented planting

For the purpose of determining under paragraph (1)(A) the

acreage on a farm that producers planted or were prevented from

planting during the 1998 through 2001 crop years to covered

commodities, if the acreage that was planted or prevented from

being planted was devoted to another covered commodity in the

same crop year (other than a covered commodity produced under an

established practice of double cropping), the owner may elect the

commodity to be used for that crop year in determining the 4-year

average, but may not include both the initial commodity and the

subsequent commodity.

(b) Single election; time for election

(1) Notice of election opportunity

As 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) of this section.

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

Within the time period and in the manner prescribed pursuant to

paragraph (1), the owner of a farm shall submit to the Secretary

notice of the election made by the owner under subsection (a) of

this section.

If the owner of a farm fails to make the election under

subsection (a) of this section or fails to timely notify the

Secretary of the election made, as required by subsection (b) of

this section, the owner shall be deemed to have made the election

described in subsection (a)(1)(B) of this section to determine base

acres for all covered commodities on the farm.

(d) Application of election to all covered commodities

The election made under subparagraph (A) or (B) of subsection

(a)(1) of this section, or deemed to be made under subsection (c)

of this section, with respect to a farm shall apply to all of the

covered commodities on the farm.

(e) Treatment of conservation reserve contract acreage

(1) In general

The 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

For the crop year in which a base acres adjustment under

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.

(f) Payment acres

The payment acres for a covered commodity on a farm shall be

equal to 85 percent of the base acres for the covered commodity.

(g) Prevention of excess base acres

(1) Required reduction

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 under subchapter III of this chapter so

that the sum of the base acres and acreage described in paragraph

(2) does not exceed the actual cropland acreage of the farm.

(2) Other acreage

For purposes of paragraph (1), the Secretary shall include the

following:

(A) Any base acres for peanuts for the farm under subchapter

III of this chapter.

(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.).

program for which payments are made in exchange for not

producing an agricultural commodity on the acreage.

(3) Selection of acres

The Secretary shall give the owner of the farm the opportunity

to select the base acres or the base acres for peanuts for the

farm under subchapter III of this chapter against which the

reduction required by paragraph (1) will be made.

(4) Exception for double-cropped acreage

In applying paragraph (1), the Secretary shall make an

exception in the case of double cropping, as determined by the

Secretary.

(5) Coordinated application of requirements

The Secretary shall take into account section 7952(f) of this

title when applying the requirements of this subsection.

(h) Permanent reduction in base acres

The owner of a farm may reduce, at any time, the base acres for

any covered commodity for the farm. The reduction shall be

permanent and made in the manner prescribed by the Secretary.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1101, May 13, 2002, 116 Stat. 144.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter III of this chapter, referred to in subsec. (g)(1),

(2)(A), (3), was in the original ''subtitle C'', meaning subtitle C

(Sec. 1301-1310) of title I of Pub. L. 107-171, May 13, 2002, 116

Stat. 166, which is classified principally to subchapter III of

this chapter. For complete classification of subtitle C to the

Code, see References in Text note set out under section 7951 of

this title and Tables.

The Food Security Act of 1985, referred to in subsec. (g)(2)(B),

is Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.

Chapter 1 of subtitle D of title XII of the Act is classified

generally to part I (Sec. 3830 et seq.) of subchapter IV 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7901, 7912, 7916, 7952 of

this title.

-CITE-

7 USC Sec. 7912 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7912. Establishment of payment yield

-STATUTE-

(a) Establishment and purpose

For the purpose of making direct payments and counter-cyclical

payments under this subchapter, the Secretary shall provide for the

establishment of a payment yield for each farm for each covered

commodity in accordance with this section.

(b) Use of farm program payment yield

Except as otherwise provided in this section, the payment yield

for each of the 2002 through 2007 crops of a covered commodity for

a farm shall be the farm program payment yield established for the

1995 crop of the covered commodity under section 1465 of this

title, as adjusted by the Secretary to account for any additional

yield payments made with respect to that crop under section

1465(b)(2) of this title.

In the case of a farm for which a farm program payment yield is

unavailable for a covered commodity (other than soybeans or other

oilseeds), the Secretary shall establish an appropriate payment

yield for the covered commodity on the farm taking into

consideration the farm program payment yields applicable to the

commodity under subsection (b) of this section for similar farms,

but before the yields for the similar farms are updated as provided

in subsection (e) of this section.

(d) Payment yields for oilseeds

(1) Determination of average yield

In the case of soybeans and each other oilseed, the Secretary

shall determine the average yield per planted acre for the

oilseed on a farm for the 1998 through 2001 crop years, excluding

any crop year in which the acreage planted to the oilseed was

zero.

(2) Adjustment for payment yield

The 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

If the yield per planted acre for a crop of an oilseed for a

farm for any of the 1998 through 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 partially 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 manner as the Secretary prescribes for the

election 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 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

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 commodity,

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 yield under paragraph (3).

(5) Application of election and method to all covered commodities

The owner of a farm may not elect the method described in

paragraph (3)(A) for 1 covered commodity on the farm and the

method described in paragraph (3)(B) for other covered

commodities on the farm.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1102, May 13, 2002, 116 Stat. 147.)

-REFTEXT-

REFERENCES IN TEXT

Section 1465 of this title, referred to in subsec. (b), was

omitted from the Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7901, 7914, 7936 of this

title.

-CITE-

7 USC Sec. 7913 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7913. Availability of direct payments

-STATUTE-

(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 established.

(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.

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) of this

section.

(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

At the option of the producers on a farm, up to 50 percent of

the direct payment for a covered commodity for any of the 2003

through 2007 crop years shall be paid to the producers in

advance. 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 December 1 of the

calendar year before the calendar year in which the crop of the

covered commodity is harvested through the month within which the

direct payment would otherwise be made. The producers may change

the selected month for a subsequent advance payment by providing

advance notice to the Secretary.

(3) Repayment of advance payments

If a producer on a farm that receives an advance 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 producing a

crop changes, before the date the remainder of the direct payment

is made, the producer shall be responsible for repaying the

Secretary the applicable amount of the advance payment, as

determined by the Secretary.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1103, May 13, 2002, 116 Stat. 149.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7901, 7914, 7917 of this

title.

-CITE-

7 USC Sec. 7914 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7914. Availability of counter-cyclical payments

-STATUTE-

(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 commodity if the Secretary

determines that the effective price for the covered commodity is

less than the target price for the covered commodity.

(b) Effective price

For purposes of subsection (a) of this section, 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 of this chapter.

(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.

(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.

(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 commodities shall be as follows:

(A) Wheat, $3.92 per bushel.

(B) Corn, $2.63 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-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) of this

section 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) of this

section.

(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

If the Secretary determines under subsection (a) of this

section 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 commodity, 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 commodity.

(3) Time for partial payments

(A) 2002 through 2006 crop years

When 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 year

When 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

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 percent of the

projected counter-cyclical payment for the covered commodity

for the crop year, as determined by the Secretary.

(ii) Second partial payment

The 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 payment

The 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

For the 2007 crop year, the first partial payment under

paragraph (3) to the producers on a farm may not exceed 40

percent of the projected counter-cyclical payment 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 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

The producers on a farm that receive a partial payment under

this subsection for a crop year shall repay to the Secretary the

amount, if any, by which the total of the partial payments exceed

the actual counter-cyclical payment to be made for the covered

commodity for that crop year.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1104, May 13, 2002, 116 Stat. 150.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter II of this chapter, referred to in subsec. (b)(1)(B),

was in the original ''subtitle B'', meaning subtitle B (Sec.

1201-1209) of title I of Pub. L. 107-171, May 13, 2002, 116 Stat.

155, which is classified principally to subchapter II of this

chapter. For complete classification of subtitle B to the Code,

see Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7901 of this title.

-CITE-

7 USC Sec. 7915 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7915. Producer agreement required as condition of provision of

direct payments and counter-cyclical payments

-STATUTE-

(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.);

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 of this chapter 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

The Secretary may issue such rules as the Secretary considers

necessary to ensure producer 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 consistent 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 transfer of (or change

in) the interest of the producers on a farm in base acres for

which direct payments or counter-cyclical payments are made shall

result in the termination of the payments with respect to the

base acres, unless the transferee or owner of the acreage agrees

to assume all obligations under subsection (a) of this section.

The termination shall take effect on the date determined by the

Secretary.

(2) Exception

If a producer entitled to a direct payment or counter-cyclical

payment dies, becomes incompetent, or is otherwise unable to

receive the payment, the Secretary shall make the payment, in

accordance with rules issued by the Secretary.

As a condition on the receipt of any benefits under this

subchapter or subchapter II of this chapter, the Secretary shall

require producers on a farm to submit to the Secretary annual

acreage reports with respect 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 equitable basis.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1105, May 13, 2002, 116 Stat. 152.)

-REFTEXT-

REFERENCES IN TEXT

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, as amended.

Subtitles B and C of title XII of the Act are classified generally

to subchapters II (Sec. 3811 et seq.) and III (Sec. 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.

Subchapter III of this chapter, referred to in subsec. (a)(1)(D),

was in the original ''subtitle C'', meaning subtitle C (Sec.

1301-1310) of title I of Pub. L. 107-171, May 13, 2002, 116 Stat.

166, which is classified principally to subchapter III of this

chapter. For complete classification of subtitle C to the Code,

see References in Text note set out under section 7951 of this

title and Tables.

Subchapter II of this chapter, referred to in subsec. (c), was in

the original ''subtitle B'', meaning subtitle B (Sec. 1201-1209) of

title I of Pub. L. 107-171, May 13, 2002, 116 Stat, 155, which is

classified principally to subchapter II of this chapter. For

complete classification of subtitle B to the Code, see Tables.

-CITE-

7 USC Sec. 7916 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7916. Planting flexibility

-STATUTE-

(a) Permitted crops

Subject to subsection (b) of this section, any commodity or crop

may be planted on base acres on a farm.

(b) Limitations regarding certain commodities

(1) General limitation

The planting of an agricultural commodity specified in

paragraph (3) shall be prohibited on base acres unless the

commodity, 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 prohibited on base acres.

(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).

Paragraphs (1) and (2) of subsection (b) of this section 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) of this section, 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)

of this section 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) of this section, 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

For the 2002 crop year only, if the calculation of base acres

under section 7911(a) of this title results in total base acres for

a farm in excess of the contract acreage (as defined in section

7202 of this title) for the farm used to calculate the fiscal year

2002 payment authorized under section 7214 of this title,

paragraphs (1) and (2) of subsection (b) of this section shall not

limit the harvesting of an agricultural commodity specified in

paragraph (3) of that subsection on the excess base acres, except

that direct payments and counter-cyclical payments for the 2002

crop year shall be reduced by an acre for each acre of the excess

base acres planted to such an agricultural commodity.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1106, May 13, 2002, 116 Stat. 153.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7915 of this title.

-CITE-

7 USC Sec. 7917 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7917. Relation to remaining payment authority under production

flexibility contracts

-STATUTE-

(a) Termination of superseded payment authority

Notwithstanding section 7213(a)(7) of this title or any other

provision of law, the Secretary shall not make payments for fiscal

year 2002 after May 13, 2002, under a production flexibility

contract entered into under section 7211 of this title unless

requested by the producer that is a party to the contract.

(b) Contract payments made before enactment

If a producer receives all or any portion of the payment

authorized for fiscal year 2002 under a production flexibility

contract, the Secretary shall reduce the amount of the direct

payment otherwise due the producer for the 2002 crop year under

section 7913 of this title by the amount of the fiscal year 2002

payment received by the producer under the production flexibility

contract.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1107, May 13, 2002, 116 Stat. 154.)

-CITE-

7 USC Sec. 7918 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER I - DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS

-HEAD-

Sec. 7918. Period of effectiveness

-STATUTE-

This subchapter shall be effective beginning with the 2002 crop

year of each covered commodity through the 2007 crop year.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1108, May 13, 2002, 116 Stat. 155.)

-CITE-

7 USC SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND

LOAN DEFICIENCY PAYMENTS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1308, 7286, 7914,

7915, 7991 of this title.

-CITE-

7 USC Sec. 7931 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7931. Availability of nonrecourse marketing assistance loans

for loan commodities

-STATUTE-

(a) Nonrecourse loans available

(1) Availability

For each of the 2002 through 2007 crops of each loan commodity,

the Secretary shall make available to producers on a farm

nonrecourse marketing assistance loans for loan commodities

produced on the farm.

(2) Terms and conditions

The marketing assistance loans shall be made under terms and

conditions that are prescribed by the Secretary and at the loan

rate established under section 7932 of this title for the loan

commodity.

(b) Eligible production

The producers on a farm shall be eligible for a marketing

assistance loan under subsection (a) of this section for any

quantity of a loan commodity produced on the farm.

In carrying out this subchapter, the Secretary shall make loans

to producers on a farm that would be eligible to obtain a marketing

assistance loan, but for the fact the loan commodity owned by the

producers on the farm commingled with loan commodities of other

producers in facilities unlicensed for the storage of agricultural

commodities by the Secretary or a State licensing authority, if the

producers obtaining the loan agree to immediately redeem the loan

collateral in accordance with section 166 of the Federal

Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7286).

(d) Compliance with conservation and wetlands requirements

As a condition of the receipt of a marketing assistance loan

under subsection (a) of this section, the producer shall 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.) and

applicable wetland protection requirements under subtitle C of

title XII of the Act (16 U.S.C. 3821 et seq.) during the term of

the loan.

(e) Termination of superseded loan authority

Notwithstanding section 131 of the Federal Agriculture

Improvement and Reform Act of 1996 (7 U.S.C. 7231), nonrecourse

marketing assistance loans shall not be made for the 2002 crop of

loan commodities under subtitle C of title I of such Act (7 U.S.C.

7231 et seq.).

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1201, May 13, 2002, 116 Stat. 155.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsec. (c), was in the original

''this subtitle'', meaning subtitle B (Sec. 1201-1209) of title I

of Pub. L. 107-171, May 13, 2002, 116 Stat. 155, which is

classified principally to this subchapter. For complete

classification of subtitle B to the Code, see Tables.

The Food Security Act of 1985, referred to in subsec. (d), is

Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.

Subtitles B and C of title XII of the Act are classified generally

to subchapters II (Sec. 3811 et seq.) and III (Sec. 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.

The Federal Agriculture Improvement and Reform Act of 1996,

referred to in subsec. (e), is Pub. L. 104-127, Apr. 4, 1996, 110

Stat. 888, as amended. Subtitle C of title I of the Act is

classified generally to subchapter III (Sec. 7231 et seq.) of

chapter 100 of this title. For complete classification of this Act

to the Code, see Short Title note set out under section 7201 of

this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7932, 7933, 7934, 7935,

7939 of this title.

-CITE-

7 USC Sec. 7932 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7932. Loan rates for nonrecourse marketing assistance loans

-STATUTE-

(a) 2002 and 2003 crop years

For purposes of the 2002 and 2003 crop years, the loan rate for a

marketing assistance loan under section 7931 of this title for a

loan commodity shall be equal to the following:

(1) In the case of wheat, $2.80 per bushel.

(2) In the case of corn, $1.98 per bushel.

(3) In the case of grain sorghum, $1.98 per bushel.

(4) In the case of barley, $1.88 per bushel.

(5) In the case of oats, $1.35 per bushel.

(6) In the case of upland cotton, $0.52 per pound.

(7) In the case of extra long staple cotton, $0.7977 per pound.

(8) In the case of rice, $6.50 per hundredweight.

(9) In the case of soybeans, $5.00 per bushel.

(10) In the case of other oilseeds, $0.0960 per pound.

(11) In the case of graded wool, $1.00 per pound.

(12) In the case of nongraded wool, $0.40 per pound.

(13) In the case of mohair, $4.20 per pound.

(14) In the case of honey, $0.60 per pound.

(15) In the case of dry peas, $6.33 per hundredweight.

(16) In the case of lentils, $11.94 per hundredweight.

(17) In the case of small chickpeas, $7.56 per hundredweight.

(b) 2004 through 2007 crop years

For purposes of the 2004 through 2007 crop years, the loan rate

for a marketing assistance loan under section 7931 of this title

for a loan commodity shall be equal to the following:

(1) In the case of wheat, $2.75 per bushel.

(2) In the case of corn, $1.95 per bushel.

(3) In the case of grain sorghum, $1.95 per bushel.

(4) In the case of barley, $1.85 per bushel.

(5) In the case of oats, $1.33 per bushel.

(6) In the case of upland cotton, $0.52 per pound.

(7) In the case of extra long staple cotton, $0.7977 per pound.

(8) In the case of rice, $6.50 per hundredweight.

(9) In the case of soybeans, $5.00 per bushel.

(10) In the case of other oilseeds, $0.0930 per pound.

(11) In the case of graded wool, $1.00 per pound.

(12) In the case of nongraded wool, $0.40 per pound.

(13) In the case of mohair, $4.20 per pound.

(14) In the case of honey, $0.60 per pound.

(15) In the case of dry peas, $6.22 per hundredweight.

(16) In the case of lentils, $11.72 per hundredweight.

(17) In the case of small chickpeas, $7.43 per hundredweight.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1202, May 13, 2002, 116 Stat. 155.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7931, 7934, 7935, 7937 of

this title.

-CITE-

7 USC Sec. 7933 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7933. Term of loans

-STATUTE-

(a) Term of loan

In the case of each loan commodity, a marketing assistance loan

under section 7931 of this title 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.

(b) Extensions prohibited

The Secretary may not extend the term of a marketing assistance

loan for any loan commodity.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1203, May 13, 2002, 116 Stat. 156.)

-CITE-

7 USC Sec. 7934 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7934. Repayment of loans

-STATUTE-

(a) General rule

The Secretary shall permit the producers on a farm to repay a

marketing assistance loan under section 7931 of this title for a

loan commodity (other than upland cotton, rice, and extra long

staple cotton) at a rate that is the lesser of -

(1) the loan rate established for the commodity under section

7932 of this title, plus interest (determined in accordance with

section 7283 of this title); or

(2) a rate that the Secretary determines will -

(A) minimize potential loan forfeitures;

(B) minimize the accumulation of stocks of the commodity by

the Federal Government;

storing the commodity;

(D) allow the commodity produced in the United States to be

marketed freely and competitively, both domestically and

internationally; and

(E) minimize discrepancies in marketing loan benefits across

State boundaries and across county boundaries.

(b) Repayment rates for upland cotton and rice

The Secretary shall permit producers to repay a marketing

assistance loan under section 7931 of this title for upland cotton

and rice at a rate that is the lesser of -

(1) the loan rate established for the commodity under section

7932 of this title, plus interest (determined in accordance with

section 7283 of this title); or

(2) the prevailing world market price for the commodity

(adjusted to United States quality and location), as determined

by the Secretary.

Repayment of a marketing assistance loan for extra long staple

cotton shall be at the loan rate established for the commodity

under section 7932 of this title, plus interest (determined in

accordance with section 7283 of this title).

(d) Prevailing world market price

For purposes of this section and section 7937 of this title, the

Secretary shall prescribe by regulation -

(1) a formula to determine the prevailing world market price

for upland cotton and rice, adjusted to United States quality and

location; and

(2) a mechanism by which the Secretary shall announce

periodically the prevailing world market price for upland cotton

and rice.

(e) Adjustment of prevailing world market price for upland cotton

(1) In general

During the period beginning on May 13, 2002, through July 31,

2008, the prevailing world market price for upland cotton

(adjusted to United States quality and location) established

under subsection (d) of this section shall be further adjusted if

(A) the adjusted prevailing world market price is less than

115 percent of the loan rate for upland cotton established

under section 7932 of this title, as determined by the

Secretary; and

(B) the Friday through Thursday average price quotation for

the lowest-priced United States growth as quoted for Middling

(M) 1 3/32-inch cotton delivered C.I.F. Northern Europe is

greater than the Friday through Thursday average price of the 5

lowest-priced growths of upland cotton, as quoted for Middling

(M) 1 3/32-inch cotton, delivered C.I.F. Northern Europe

(referred to in this section as the ''Northern Europe price'').

(2) Further adjustment

Except as provided in paragraph (3), the adjusted prevailing

world market price for upland cotton shall be further adjusted on

the basis of some or all of the following data, as available:

(A) The United States share of world exports.

(B) The current level of cotton export sales and cotton

export shipments.

establishing an accurate prevailing world market price for

upland cotton (adjusted to United States quality and location).

(3) Limitation on further adjustment

The adjustment under paragraph (2) may not exceed the

difference between -

(A) the Friday through Thursday average price for the

lowest-priced United States growth as quoted for Middling 1

3/32-inch cotton delivered C.I.F. Northern Europe; and

(B) the Northern Europe price.

(f) Good faith exception to beneficial interest requirement

For the 2001 crop year only, in the case of the producers on a

farm that marketed or otherwise lost beneficial interest in a loan

commodity for which a marketing assistance loan was made under

section 7231 of this title before repaying the loan, the Secretary

shall permit the producers to repay the loan at the appropriate

repayment rate that was in effect for the loan commodity under

section 7234 of this title on the date that the producers lost

beneficial interest, as determined by the Secretary, if the

Secretary determines the producers acted in good faith.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1204, May 13, 2002, 116 Stat. 156.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7935 of this title.

-CITE-

7 USC Sec. 7935 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7935. Loan deficiency payments

-STATUTE-

(a) Availability of loan deficiency payments

(1) In general

Except as provided in subsection (d) of this section, the

Secretary may make loan deficiency payments available to

producers on a farm that, although eligible to obtain a marketing

assistance loan under section 7931 of this title with respect to

a loan commodity, agree to forgo obtaining the loan for the

commodity in return for loan deficiency payments under this

section.

(2) Unshorn pelts, hay, and silage

Nongraded wool in the form of unshorn pelts and hay and silage

derived from a loan commodity are not eligible for a marketing

assistance loan under section 7931 of this title. However,

effective for the 2002 through 2007 crop years, the Secretary may

make loan deficiency payments available under this section to

producers on a farm that produce unshorn pelts or hay and silage

derived from a loan commodity.

(b) Computation

A loan deficiency payment for a loan commodity or commodity

referred to in subsection (a)(2) of this section shall be computed

by multiplying -

(1) the payment rate determined under subsection (c) of this

section for the commodity; by

(2) the quantity of the commodity produced by the eligible

producers, excluding any quantity for which the producers obtain

a marketing assistance loan under section 7931 of this title.

(1) In general

In the case of a loan commodity, the payment rate shall be the

amount by which -

(A) the loan rate established under section 7932 of this

title for the loan commodity; exceeds

(B) the rate at which a marketing assistance loan for the

loan commodity may be repaid under section 7934 of this title.

(2) Unshorn pelts

In the case of unshorn pelts, the payment rate shall be the

amount by which -

(A) the loan rate established under section 7932 of this

title for ungraded wool; exceeds

(B) the rate at which a marketing assistance loan for

ungraded wool may be repaid under section 7934 of this title.

(3) Hay and silage

In the case of hay or silage derived from a loan commodity, the

payment rate shall be the amount by which -

(A) the loan rate established under section 7932 of this

title for the loan commodity from which the hay or silage is

derived; exceeds

(B) the rate at which a marketing assistance loan for the

loan commodity may be repaid under section 7934 of this title.

(d) Exception for extra long staple cotton

This section shall not apply with respect to extra long staple

cotton.

(e) Effective date for payment rate determination

The Secretary shall determine the amount of the loan deficiency

payment to be made under this section to the producers on a farm

with respect to a quantity of a loan commodity or commodity

referred to in subsection (a)(2) of this section using the payment

rate in effect under subsection (c) of this section as of the date

the producers request the payment.

(f) Special loan deficiency payment rules

(1) First-time loan commodities

For the 2002 crop of wool, mohair, honey, dry peas, lentils and

small chickpeas, in the case of producers of such a crop that

would be eligible for a loan deficiency payment under this

section except for the fact that the producers lost beneficial

interest in the crop prior to the date of publication of the

regulations implementing this section, the producers shall be

eligible for a loan deficiency payment as of the date producers

marketed or otherwise lost beneficial interest in the crop, as

determined by the Secretary.

(2) Omitted

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1205, May 13, 2002, 116 Stat. 158.)

-COD-

CODIFICATION

Section is comprised of section 1205 of Pub. L. 107-171. Subsec.

(f)(2) of section 1205 of Pub. L. 107-171 amended section 7235 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7936 of this title.

-CITE-

7 USC Sec. 7936 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7936. Payments in lieu of loan deficiency payments for grazed

acreage

-STATUTE-

(a) Eligible producers

(1) In general

Effective for the 2002 through 2007 crop years, in the case of

a producer that would be eligible for a loan deficiency payment

under section 7935 of this title for wheat, barley, or oats, but

that elects to use acreage planted to the wheat, barley, or oats

for the grazing of livestock, the Secretary shall make a payment

to the producer under this section if the producer enters into an

agreement with the Secretary to forgo any other harvesting of the

wheat, barley, or oats on that acreage.

(2) Grazing of triticale acreage

Effective for the 2002 through 2007 crop years, with respect to

a producer on a farm that uses acreage planted to triticale for

the grazing of livestock, the Secretary shall make a payment to

the producer under this section if the producer enters into an

agreement with the Secretary to forgo any other harvesting of

triticale on that acreage.

(b) Payment amount

(1) In general

The amount of a payment made under this section to a producer

on a farm described in subsection (a)(1) of this section shall be

equal to the amount determined by multiplying -

(A) the loan deficiency payment rate determined under section

7935(c) of this title in effect, as of the date of the

agreement, for the county in which the farm is located; by

(B) the payment quantity determined by multiplying -

(i) the quantity of the grazed acreage on the farm with

respect to which the producer elects to forgo harvesting of

wheat, barley, or oats; and

(ii) the payment yield in effect for the calculation of

direct payments under subchapter I of this chapter with

respect to that loan commodity on the farm or, in the case of

a farm without a payment yield for that loan commodity, an

appropriate yield established by the Secretary in a manner

consistent with section 7912(c) of this title.

(2) Grazing of triticale acreage

The amount of a payment made under this section to a producer

on a farm described in subsection (a)(2) of this section shall be

equal to the amount determined by multiplying -

(A) the loan deficiency payment rate determined under section

7935(c) of this title in effect for wheat, as of the date of

the agreement, for the county in which the farm is located; by

(B) the payment quantity determined by multiplying -

(i) the quantity of the grazed acreage on the farm with

respect to which the producer elects to forgo harvesting of

triticale; and

(ii) the payment yield in effect for the calculation of

direct payments under subchapter I of this chapter with

respect to wheat on the farm or, in the case of a farm

without a payment yield for wheat, an appropriate yield

established by the Secretary in a manner consistent with

section 7912(c) of this title.

(1) Time and manner

A payment under this section shall be made at the same time and

in the same manner as loan deficiency payments are made under

section 7935 of this title.

(2) Availability

The Secretary shall establish an availability period for the

payments authorized by this section. In the case of wheat,

barley, and oats, the availability period shall be consistent

with the availability period for the commodity established by the

Secretary for marketing assistance loans authorized by this

subchapter.

(d) Prohibition on crop insurance indemnity or noninsured crop

assistance

A 2002 through 2007 crop of wheat, barley, oats, or triticale

planted on acreage that a producer elects, in the agreement

required by subsection (a) of this section, to use for the grazing

of livestock in lieu of any other harvesting of the crop shall not

be eligible for an indemnity under the Federal Crop Insurance Act

(7 U.S.C. 1501 et seq.) or noninsured crop assistance under section

7333 of this title.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1206, May 13, 2002, 116 Stat. 159.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsec. (c)(2), was in the

original ''this subtitle'', meaning subtitle B (Sec. 1201-1209) of

title I of Pub. L. 107-171, May 13, 2002, 116 Stat. 155, which is

classified principally to this subchapter. For complete

classification of subtitle B to the Code, see Tables.

The Federal Crop Insurance Act, referred to in subsec. (d), is

title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, as amended,

which is classified generally to chapter 36 (Sec. 1501 et seq.) of

this title. For complete classification of this Act to the Code,

see section 1501 of this title and Tables.

-CITE-

7 USC Sec. 7937 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7937. Special marketing loan provisions for upland cotton

-STATUTE-

(a) Cotton user marketing certificates

(1) Issuance

During the period beginning on May 13, 2002, through July 31,

2008, the Secretary shall issue marketing certificates or cash

payments, at the option of the recipient, to domestic users and

exporters for documented purchases by domestic users and sales

for export by exporters made in the week following a consecutive

4-week period in which -

(A) the Friday through Thursday average price quotation for

the lowest-priced United States growth, as quoted for Middling

(M) 1 3/32-inch cotton, delivered C.I.F. Northern Europe

exceeds the Northern Europe price by more than 1.25 cents per

pound; and

(B) the prevailing world market price for upland cotton

(adjusted to United States quality and location) does not

exceed 134 percent of the loan rate for upland cotton

established under section 7932 of this title.

(2) Value of certificates or payments

The value of the marketing certificates or cash payments shall

be based on the amount of the difference (reduced by 1.25 cents

per pound) in the prices during the fourth week of the

consecutive 4-week period multiplied by the quantity of upland

cotton included in the documented sales.

(3) Administration of marketing certificates

(A) Redemption, marketing, or exchange

The Secretary shall establish procedures for redeeming

marketing certificates for cash or marketing or exchange of the

certificates for agricultural commodities owned by the

Commodity Credit Corporation or pledged to the Commodity Credit

Corporation as collateral for a loan in such manner, and at

such price levels, as the Secretary determines will best

effectuate the purposes of cotton user marketing certificates,

including enhancing the competitiveness and marketability of

United States cotton. Any price restrictions that would

otherwise apply to the disposition of agricultural commodities

by the Commodity Credit Corporation shall not apply to the

redemption of certificates under this subsection.

(B) Designation of commodities and products

To the extent practicable, the Secretary shall permit owners

of certificates to designate the commodities and products,

including storage sites, the owners would prefer to receive in

exchange for certificates (FOOTNOTE 1)

(FOOTNOTE 1) So in original. There probably should be a period.

Marketing certificates issued to domestic users and exporters

of upland cotton may be transferred to other persons in

accordance with regulations issued by the Secretary.

(4) Delayed application of threshold

Through July 31, 2006, the Secretary shall make the

calculations under paragraphs (1)(A) and (2) without regard to

the 1.25 cent threshold provided under those paragraphs.

(b) Special import quota

(1) Establishment

(A) In general

The President shall carry out an import quota program during

the period beginning on May 13, 2002, through July 31, 2008, as

provided in this subsection.

(B) Program requirements

Except as provided in subparagraph (C), whenever the

Secretary determines and announces that for any consecutive

4-week period, the Friday through Thursday average price

quotation for the lowest-priced United States growth, as quoted

for Middling (M) 1 3/32-inch cotton, delivered C.I.F. Northern

Europe, adjusted for the value of any certificate issued under

subsection (a) of this section, exceeds the Northern Europe

price by more than 1.25 cents per pound, there shall

immediately be in effect a special import quota.

During any month for which the Secretary estimates the

season-ending United States upland cotton stocks-to-use ratio,

as determined under subparagraph (D), to be below 16 percent,

the Secretary, in making the determination under subparagraph

(B), shall not adjust the Friday through Thursday average price

quotation for the lowest-priced United States growth, as quoted

for Middling (M) 1 3/32-inch cotton, delivered C.I.F. Northern

Europe, for the value of any certificates issued under

subsection (a) of this section.

(D) Season-ending United States stocks-to-use ratio

For the purposes of making estimates under subparagraph (C),

the Secretary shall, on a monthly basis, estimate and report

the season-ending United States upland cotton stocks-to-use

ratio, excluding projected raw cotton imports but including the

quantity of raw cotton that has been imported into the United

States during the marketing year.

(E) Delayed application of threshold

Through July 31, 2006, the Secretary shall make the

calculation under subparagraph (B) without regard to the 1.25

cent threshold provided under that subparagraph.

(2) Quantity

The quota shall be equal to one week's consumption of upland

cotton by domestic mills at the seasonally adjusted average rate

of the most recent three months for which data are available.

(3) Application

The quota shall apply to upland cotton purchased not later than

90 days after the date of the Secretary's announcement under

paragraph (1) and entered into the United States not later than

180 days after the date.

(4) Overlap

A special quota period may be established that overlaps any

existing quota period if required by paragraph (1), except that a

special quota period may not be established under this subsection

if a quota period has been established under subsection (c) of

this section.

(5) Preferential tariff treatment

The quantity under a special import quota shall be considered

to be an in-quota quantity for purposes of -

(A) section 2703(d) of title 19;

(B) section 3203 of title 19;

(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(6) Definition

In this subsection, the term ''special import quota'' means a

quantity of imports that is not subject to the over-quota tariff

rate of a tariff-rate quota.

(7) Limitation

The quantity of cotton entered into the United States during

any marketing year under the special import quota established

under this subsection may not exceed the equivalent of 5 week's

consumption of upland cotton by domestic mills at the seasonally

adjusted average rate of the 3 months immediately preceding the

first special import quota established in any marketing year.

(1) In general

The President shall carry out an import quota program that

provides that whenever the Secretary determines and announces

that the average price of the base quality of upland cotton, as

determined by the Secretary, in the designated spot markets for a

month exceeded 130 percent of the average price of such quality

of cotton in the markets for the preceding 36 months,

notwithstanding any other provision of law, there shall

immediately be in effect a limited global import quota subject to

the following conditions:

(A) Quantity

The quantity of the quota shall be equal to 21 days of

domestic mill consumption of upland cotton at the seasonally

adjusted average rate of the most recent 3 months for which

data are available.

(B) Quantity if prior quota

If a quota has been established under this subsection during

the preceding 12 months, the quantity of the quota next

established under this subsection shall be the smaller of 21

days of domestic mill consumption calculated under subparagraph

(A) or the quantity required to increase the supply to 130

percent of the demand.

The quantity under a limited global import quota shall be

considered to be an in-quota quantity for purposes of -

(i) section 2703(d) of title 19;

(ii) section 3203 of title 19;

(iii) section 2463(d) of title 19; and

(iv) General Note 3(a)(iv) to the Harmonized Tariff

Schedule.

(D) Definitions

In this subsection:

(i) Supply

The term ''supply'' means, using the latest official data

of the Bureau of the Census, the Department of Agriculture,

and the Department of the Treasury -

(I) the carry-over of upland cotton at the beginning of

the marketing year (adjusted to 480-pound bales) in which

the quota is established;

(II) production of the current crop; and

(III) imports to the latest date available during the

marketing year.

(ii) Demand

The term ''demand'' means -

(I) the average seasonally adjusted annual rate of

domestic mill consumption during the most recent 3 months

for which data are available; and

(II) the larger of -

(aa) average exports of upland cotton during the

preceding 6 marketing years; or

(bb) cumulative exports of upland cotton plus

outstanding export sales for the marketing year in which

the quota is established.

(iii) Limited global import quota

The term ''limited global import quota'' means a quantity

of imports that is not subject to the over-quota tariff rate

of a tariff-rate quota.

(E) Quota entry period

When a quota is established under this subsection, cotton may

be entered under the quota during the 90-day period beginning

on the date the quota is established by the Secretary.

(2) No overlap

Notwithstanding paragraph (1), a quota period may not be

established that overlaps an existing quota period or a special

quota period established under subsection (b) of this section.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1207, May 13, 2002, 116 Stat. 161.)

-REFTEXT-

REFERENCES IN TEXT

The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D)

and (c)(1)(C)(iv), is not set out in the Code. See Publication of

Harmonized Tariff Schedule note set out under section 1202 of Title

19, Customs Duties.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7934 of this title.

-CITE-

7 USC Sec. 7938 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7938. Special competitive provisions for extra long staple

cotton

-STATUTE-

(a) Competitiveness program

Notwithstanding any other provision of law, during the period

beginning on May 13, 2002, through July 31, 2008, the Secretary

shall carry out a program -

(1) to maintain and expand the domestic use of extra long

staple cotton produced in the United States;

(2) to increase exports of extra long staple cotton produced in

the United States; and

(3) to ensure that extra long staple cotton produced in the

United States remains competitive in world markets.

(b) Payments under program; trigger

Under the program, the Secretary shall make payments available

under this section whenever -

(1) for a consecutive 4-week period, the world market price for

the lowest priced competing growth of extra long staple cotton

(adjusted to United States quality and location and for other

factors affecting the competitiveness of such cotton), as

determined by the Secretary, is below the prevailing United

States price for a competing growth of extra long staple cotton;

and

(2) the lowest priced competing growth of extra long staple

cotton (adjusted to United States quality and location and for

other factors affecting the competitiveness of such cotton), as

determined by the Secretary, is less than 134 percent of the loan

rate for extra long staple cotton.

The Secretary shall make payments available under this section to

domestic users of extra long staple cotton produced in the United

States and exporters of extra long staple cotton produced in the

United States that enter into an agreement with the Commodity

Credit Corporation to participate in the program under this

section.

(d) Payment amount

Payments under this section shall be based on the amount of the

difference in the prices referred to in subsection (b)(1) of this

section during the fourth week of the consecutive 4-week period

multiplied by the amount of documented purchases by domestic users

and sales for export by exporters made in the week following such a

consecutive 4-week period.

(e) Form of payment

Payments under this section shall be made through the issuance of

cash or marketing certificates, at the option of eligible

recipients of the payments.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1208, May 13, 2002, 116 Stat. 164.)

-CITE-

7 USC Sec. 7939 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER II - MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY

PAYMENTS

-HEAD-

Sec. 7939. Availability of recourse loans for high moisture feed

grains and seed cotton

-STATUTE-

(a) High moisture feed grains

(1) Recourse loans available

For each of the 2002 through 2007 crops of corn and grain

sorghum, the Secretary shall make available recourse loans, as

determined by the Secretary, to producers on a farm that -

(A) normally harvest all or a portion of their crop of corn

or grain sorghum in a high moisture state;

(B) present -

(i) certified scale tickets from an inspected, certified

commercial scale, including a licensed warehouse, feedlot,

feed mill, distillery, or other similar entity approved by

the Secretary, pursuant to regulations issued by the

Secretary; or

(ii) field or other physical measurements of the standing

or stored crop in regions of the United States, as determined

by the Secretary, that do not have certified commercial

scales from which certified scale tickets may be obtained

within reasonable proximity of harvest operation;

the time of delivery to, and that the quantity to be placed

under loan under this subsection was in fact harvested on the

farm and delivered to, a feedlot, feed mill, or commercial or

on-farm high-moisture storage facility, or to a facility

maintained by the users of corn and grain sorghum in a high

moisture state; and

(D) comply with deadlines established by the Secretary for

harvesting the corn or grain sorghum and submit applications

for loans under this subsection within deadlines established by

the Secretary.

(2) Eligibility of acquired feed grains

A loan under this subsection shall be made on a quantity of

corn or grain sorghum of the same crop acquired by the producer

equivalent to a quantity determined by multiplying -

(A) the acreage of the corn or grain sorghum in a high

moisture state harvested on the producer's farm; by

(B) the lower of the farm program payment yield used to make

counter-cyclical payments under subchapter I of this chapter or

the actual yield on a field, as determined by the Secretary,

that is similar to the field from which the corn or grain

sorghum was obtained.

(3) High moisture state defined

In this subsection, the term ''high moisture state'' means corn

or grain sorghum having a moisture content in excess of Commodity

Credit Corporation standards for marketing assistance loans made

by the Secretary under section 7931 of this title.

(b) Recourse loans available for seed cotton

For each of the 2002 through 2007 crops of upland cotton and

extra long staple cotton, the Secretary shall make available

recourse seed cotton loans, as determined by the Secretary, on any

production.

Repayment of a recourse loan made under this section shall be at

the loan rate established for the commodity by the Secretary, plus

interest (determined in accordance with section 7283 of this

title).

(d) Termination of superseded loan authority

Notwithstanding section 7237 of this title, recourse loans shall

not be made for the 2002 crop of corn, grain sorghum, and seed

cotton under such section.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1209, May 13, 2002, 116 Stat. 165.)

-CITE-

7 USC SUBCHAPTER III - PEANUTS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

SUBCHAPTER III - PEANUTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1308, 1308-3a, 7286,

7901, 7911, 7915, 7991 of this title.

-CITE-

7 USC Sec. 7951 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

Sec. 7951. Definitions

-STATUTE-

In this subchapter:

(1) Base acres for peanuts

The term ''base acres for peanuts'' means the number of acres

assigned to a farm by historic peanut producers pursuant to

section 7952(b) of this title.

(2) Counter-cyclical payment

The term ''counter-cyclical payment'' means a payment made

under section 7954 of this title.

(3) Effective price

The term ''effective price'' means the price calculated by the

Secretary under section 7954 of this title for peanuts to

determine whether counter-cyclical payments are required to be

made under that section for a crop year.

(4) Direct payment

The term ''direct payment'' means a payment made under section

7953 of this title.

(5) Historic peanut producer

The term ''historic peanut producer'' means a producer on a

farm in the United States that produced or was prevented from

planting peanuts during any or all of the 1998 through 2001 crop

years.

(6) Payment acres

The term ''payment acres'' means -

(A) for the 2002 crop of peanuts, 85 percent of the average

acreage determined under section 7952(a)(2) of this title for

an historic peanut producer; and

(B) for the 2003 through 2007 crops of peanuts, 85 percent of

the base acres for peanuts assigned to a farm under section

7952(b) of this title.

(7) Payment yield

The term ''payment yield'' means the yield assigned to a farm

by historic peanut producers pursuant to section 7952(b) of this

title.

(8) Producer

The term ''producer'' means an owner, operator, landlord,

tenant, or sharecropper that shares in the risk of producing a

crop on a farm and is entitled to share in the crop available for

marketing from the farm, or would have shared had the crop been

produced. In determining whether a grower of hybrid seed is a

producer, the Secretary shall not take into consideration the

existence of a hybrid seed contract and shall ensure that program

requirements do not adversely affect the ability of the grower to

receive a payment under this subchapter.

(9) Secretary

The term ''Secretary'' means the Secretary of Agriculture.

(10) State

The term ''State'' means each of the several States of the

United States, the District of Columbia, the Commonwealth of

Puerto Rico, and any other territory or possession of the United

States.

(11) Target price

The term ''target price'' means the price per ton of peanuts

used to determine the payment rate for counter-cyclical payments.

(12) United States

The term ''United States'', when used in a geographical sense,

means all of the States.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1301, May 13, 2002, 116 Stat. 166.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

subtitle'', meaning subtitle C (Sec. 1301-1310) of title I of Pub.

L. 107-171, May 13, 2002, 116 Stat. 166, which enacted this

subchapter, amended sections 1361, 1371, 1373, 1378, 1428, and 1441

of this title, and repealed sections 1357 to 1359a and 7271 of this

title. For complete classification of subtitle C to the Code, see

Tables.

-CITE-

7 USC Sec. 7952 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

Sec. 7952. Establishment of payment yield and base acres for

peanuts for a farm

-STATUTE-

(a) Average yield and acreage average for historic peanut producers

(1) Determination of average yield

(A) In general

The Secretary shall determine, for each historic peanut

producer, the average yield for peanuts on each farm on which

the historic peanut producer planted peanuts for harvest for

the 1998 through 2001 crop years, excluding any crop year in

which the producer did not plant or was prevented from planting

peanuts.

(B) Assigned yields

For the purposes of determining the 4-year average yield for

an historic peanut producer under this paragraph, the historic

peanut producer may elect to substitute for a farm, for not

more than 3 of the 1998 through 2001 crop years in which the

producer planted peanuts on the farm, the average yield for

peanuts produced in the county in which the farm is located for

the 1990 through 1997 crop years.

(2) Determination of acreage average

(A) In general

The Secretary shall determine, for each historic peanut

producer, the 4-year average of the following:

(i) Acreage planted to peanuts on each farm on which the

historic peanut producer planted peanuts for harvest for the

1998 through 2001 crop years.

(ii) Any acreage on each farm that the historic peanut

producer was prevented from planting to peanuts during the

1998 through 2001 crop years because of drought, flood, or

other natural disaster, or other condition beyond the control

of the historic peanut producer, as determined by the

Secretary.

(B) Inclusion of all 4 years in average

For the purposes of determining the 4-year acreage average

for an historic peanut producer under this paragraph, the

Secretary shall not exclude any crop year in which the producer

did not plant peanuts.

If more than 1 historic peanut producer shared in the risk of

producing the crop on a farm, the historic peanut producers

shall receive their proportional share of the number of acres

planted (or prevented from being planted) to peanuts for

harvest on the farm based on the sharing arrangement that was

in effect among the producers for the crop.

(3) Time for determinations

The Secretary shall make the determinations required by this

subsection as soon as practicable after May 13, 2002.

(4) Special considerations

In making the determinations required by this subsection, the

Secretary shall take into account changes in the number,

identity, or interest of producers sharing in the risk of

producing a peanut crop since the 1998 crop year, including

providing a method for the assignment of average acres and

average yield to a farm -

(A) when an historic peanut producer is no longer living;

(B) when an entity composed of historic peanut producers has

been dissolved; or

Secretary.

(b) Assignment of average yields and average acreage to farms

(1) Assignment by historic peanut producers

The Secretary shall give each historic peanut producer an

opportunity to assign the average peanut yield and average

acreage determined under subsection (a) of this section for each

farm of the historic peanut producer to cropland on that farm or

another farm in the same State or a contiguous State.

(2) Limitation on acreage assignment

Notwithstanding paragraph (1), the average acreage determined

under subsection (a)(2) of this section for a farm may not be

assigned to a farm in a contiguous State unless -

(A) the historic peanut producer making the assignment

produced peanuts in that State during at least 1 of the 1998

through 2001 crop years; or

(B) as of March 31, 2003, the historic peanut producer is a

producer on a farm in that State.

(3) Notice of assignment opportunity

The Secretary shall provide notice to historic peanut producers

regarding their opportunity to assign average peanut yields and

average acreages to farms under paragraph (1). The notice shall

include the following:

(A) Notice that the opportunity to make the assignments is

being provided only once.

(B) A description of the limitation in paragraph (2) on their

ability to make the assignments.

must be made and the time periods and manner in which notice of

the assignments must be submitted to the Secretary.

(4) Assignment deadlines

Not later than March 31, 2003, an historic peanut producer

shall submit to the Secretary notice of the assignments made by

the producer under this subsection. If an historic peanut

producer fails to submit the notice by that date, the notice

shall be submitted in such other manner as the Secretary may

prescribe.

The average of all of the yields assigned by historic peanut

producers under subsection (b) of this section to a farm shall be

considered to be the payment yield for that farm for the purpose of

making direct payments and counter-cyclical payments under this

subchapter.

(d) Base acres for peanuts

Subject to subsection (e) of this section, the total number of

acres assigned by historic peanut producers under subsection (b) of

this section to a farm shall be considered to be the farm's base

acres for peanuts for the purpose of making direct payments and

counter-cyclical payments under this subchapter.

(e) Treatment of conservation reserve contract acreage

(1) In general

The Secretary shall provide for an adjustment, as appropriate,

in the base acres for peanuts for a farm whenever either of the

following circumstances occur:

(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

For the crop year in which a base acres for peanuts adjustment

under 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.

(f) Prevention of excess base acres for peanuts

(1) Required reduction

If the sum of the base acres for peanuts 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 peanuts for the farm or the base acres for 1 or more

covered commodities under subchapter I of this chapter for the

farm so that the sum of the base acres for peanuts and acreage

described in paragraph (2) does not exceed the actual cropland

acreage of the farm.

(2) Other acreage

For purposes of paragraph (1), the Secretary shall include the

following:

(A) Any base acres for the farm under subchapter I of this

chapter.

(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.).

program for which payments are made in exchange for not

producing an agricultural commodity on the acreage.

(3) Selection of acres

The Secretary shall give the owner of the farm the opportunity

to select the base acres for peanuts or the subchapter I base

acres against which the reduction required by paragraph (1) will

be made.

(4) Exception for double-cropped acreage

In applying paragraph (1), the Secretary shall make an

exception in the case of double cropping, as determined by the

Secretary.

(5) Coordinated application of requirements

The Secretary shall take into account section 7911(g) of this

title when applying the requirements of this subsection.

(g) Permanent reduction in base acres for peanuts

The owner of a farm may reduce, at any time, the base acres for

peanuts assigned to the farm. The reduction shall be permanent and

made in the manner prescribed by the Secretary.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1302, May 13, 2002, 116 Stat. 167.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (c) and (d), was in the

original ''this subtitle'', meaning subtitle C (Sec. 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 section 7951 of this title and Tables.

The Food Security Act of 1985, referred to in subsec. (f)(2)(B),

is Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.

Chapter 1 of subtitle D of title XII of the Act is classified

generally to part I (Sec. 3830 et seq.) of subchapter IV 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7911, 7951, 7953, 7954,

7955 of this title.

-CITE-

7 USC Sec. 7953 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

Sec. 7953. Availability of direct payments for peanuts

-STATUTE-

(a) Payment required

(1) 2002 crop year

For the 2002 crop year, the Secretary shall make direct

payments under this section to historic peanut producers.

(2) Subsequent crop years

For each of the 2003 through 2007 crop years for peanuts, the

Secretary shall make direct payments to the producers on a farm

to which a payment yield and base acres for peanuts are assigned

under section 7952 of this title.

(b) Payment rate

The payment rate used to make direct payments with respect to

peanuts for a crop year shall be equal to $36 per ton.

The amount of the direct payment to be paid to an historic peanut

producer for the 2002 crop of peanuts shall be equal to the product

of the following:

(1) The payment rate specified in subsection (b) of this

section.

(2) The payment acres of the historic peanut producer.

(3) The average peanut yield determined under section

7952(a)(1) of this title for the historic peanut producer.

(d) Payment amount for subsequent crop years

The amount of the direct payment to be paid to the producers on a

farm for the 2003 through 2007 crops of peanuts shall be equal to

the product of the following:

(1) The payment rate specified in subsection (b) of this

section.

(2) The payment acres on the farm.

(3) The payment yield for the farm.

(e) 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 later than September 30 of the calendar year in which the

crop is harvested.

(2) Advance payments

At the option of the producers on a farm, up to 50 percent of

the direct payment for any of the 2003 through 2007 crop years

shall be paid to the producers in advance. 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 December 1 of the calendar year before the

calendar year in which the crop is harvested through the month

within which the direct payment would otherwise be made. The

producers may change the selected month for a subsequent advance

payment by providing advance notice to the Secretary.

(3) Repayment of advance payments

If a producer on a farm that receives an advance 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 producing a

crop changes, before the date the remainder of the direct payment

is made, the producer shall be responsible for repaying the

Secretary the applicable amount of the advance payment, as

determined by the Secretary.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1303, May 13, 2002, 116 Stat. 170.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7951, 7954 of this title.

-CITE-

7 USC Sec. 7954 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

Sec. 7954. Availability of counter-cyclical payments for peanuts

-STATUTE-

(a) Payment required

(1) In general

During the 2002 through 2007 crop years for peanuts, the

Secretary shall make counter-cyclical payments under this section

with respect to peanuts if the Secretary determines that the

effective price for peanuts is less than the target price for

peanuts.

(2) 2002 crop year

If counter-cyclical payments are required for the 2002 crop

year, the Secretary shall make the payments to historic peanut

producers.

(3) Subsequent crop years

If counter-cyclical payments are required for any of the 2003

through 2007 crop years for peanuts, the Secretary shall make the

payments to the producers on a farm to which a payment yield and

base acres for peanuts are assigned under section 7952 of this

title.

(b) Effective price

For purposes of subsection (a) of this section, the effective

price for peanuts is equal to the sum of the following:

(1) The higher of the following:

(A) The national average market price for peanuts received by

producers during the 12-month marketing year for peanuts, as

determined by the Secretary.

(B) The national average loan rate for a marketing assistance

loan for peanuts in effect for the applicable period under this

subchapter.

(2) The payment rate in effect under section 7953 of this title

for the purpose of making direct payments.

For purposes of subsection (a) of this section, the target price

for peanuts shall be equal to $495 per ton.

(d) Payment rate

The payment rate used to make counter-cyclical payments for a

crop year shall be equal to the difference between -

(1) the target price; and

(2) the effective price determined under subsection (b) of this

section.

(e) Payment amount for 2002 crop year

If counter-cyclical payments are required to be paid for the 2002

crop of peanuts, the amount of the counter-cyclical payment to be

paid to an historic peanut producer for that crop year shall be

equal to the product of the following:

(1) The payment rate specified in subsection (d) of this

section.

(2) The payment acres of the historic peanut producer.

(3) The average peanut yield determined under section

7952(a)(1) of this title for the historic peanut producer.

(f) Payment amount for subsequent crop years

If counter-cyclical payments are required to be paid for any of

the 2003 through 2007 crops of peanuts, 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) of this

section.

(2) The payment acres on the farm.

(3) The payment yield for the farm.

(g) Time for payments

(1) General rule

If the Secretary determines under subsection (a) of this

section that counter-cyclical payments are required to be made

under this section for a crop year, the Secretary shall make the

counter-cyclical payments as soon as practicable after the end of

the 12-month marketing year for the crop.

(2) Availability of partial payments

If, before the end of the 12-month marketing year, the

Secretary estimates that counter-cyclical payments will be

required under this section for a crop year, the Secretary shall

give producers on a farm (or, in the case of the 2002 crop year,

historic peanut producers) the option to receive partial payments

of the counter-cyclical payment projected to be made for that

crop.

(3) Time for partial payments

(A) 2002 through 2006 crop years

When the Secretary makes partial payments available under

paragraph (2) 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 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

that crop.

(B) 2007 crop year

When the Secretary makes partial payments available 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

that crop; and

(ii) the final partial payment shall be made as soon as

practicable after the end of the 12-month marketing year for

that crop.

(4) Amount of partial payments

(A) 2002 crop year

(i) First partial payment

In the case of the 2002 crop year, the first partial

payment under paragraph (3) to an historic peanut producer

may not exceed 35 percent of the projected counter-cyclical

payment for the crop year, as determined by the Secretary.

(ii) Second partial payment

The second partial payment may not exceed the difference

between -

(I) 70 percent of the projected counter-cyclical payment

(including any revision thereof) for the 2002 crop year;

and

(II) the amount of the payment made under clause (i).

(iii) Final payment

The final payment shall be equal to the difference between

(I) the actual counter-cyclical payment to be made to the

historic peanut producer; and

(II) the amount of the partial payments made to the

historic peanut producer under clauses (i) and (ii).

(B) 2003 through 2006 crop years

(i) First partial payment

For each of the 2003 through 2006 crop years, the first

partial payment under paragraph (3) to the producers on a

farm may not exceed 35 percent of the projected

counter-cyclical payment for the crop year, as determined by

the Secretary.

(ii) Second partial payment

The second partial payment 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 year; and

(II) the amount of the payment made under clause (i).

(iii) Final payment

The final payment for a crop year shall be equal to the

difference between -

(I) the actual counter-cyclical payment to be made to the

producers 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.

(i) First partial payment

For the 2007 crop year, the first partial payment under

paragraph (3) to the producers on a farm may not exceed 40

percent of the projected counter-cyclical payment 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 payment to be made to the

producers 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 (or, in the case of the 2002 crop year,

historic peanut producers) that receive a partial payment under

this subsection for a crop year shall repay to the Secretary the

amount, if any, by which the total of the partial payments exceed

the actual counter-cyclical payment to be made for that crop

year.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1304, May 13, 2002, 116 Stat. 171.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (b)(1)(B), was in the

original ''this subtitle'', meaning subtitle C (Sec. 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 section 7951 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7951 of this title.

-CITE-

7 USC Sec. 7955 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 106 - COMMODITY PROGRAMS

SUBCHAPTER III - PEANUTS

-HEAD-

Sec. 7955. Producer agreement required as condition on provision of

direct payments and counter-cyclical payments

-STATUTE-

(a) Compliance with certain requirements

(1) Requirements

Before the producers on a farm may receive direct payments or

counter-cyclical payments under this subchapter 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 that Act (16 U.S.C. 3821 et

seq.);

section 7956 of this title;

(D) to use the land on the farm, in a quantity equal to the

attributable base acres for peanuts and any base acres for the

farm under subchapter I of this chapter, 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

The Secretary may issue such rules as the Secretary considers

necessary to ensure producer 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 consistent 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 transfer of (or change

in) the interest of the producers on a farm in the base acres for

peanuts for which direct payments or counter-cyclical payments

are made shall result in the termination of the payments with

respect to those acres, unless the transferee or owner of the

acreage agrees to assume all obligations under subsection (a) of

this section. The termination shall take effect on the date

determined by the Secretary.

(2) Exception

If a producer entitled to a direct payment or counter-cyclical

payment dies, becomes incompetent, or is otherwise unable to

receive the payment, the Secretary shall make the payment, in

accordance with rules issued by the Secretary.

As a condition on the receipt of direct payments,

counter-cyclical payments, marketing assistance loans, or loan

deficiency payments under this subchapter, the Secretary shall

require the producers on a farm to which a payment yield and base

acres for peanuts are assigned under section 7952 of this title to

submit to the Secretary annual acreage reports with respect 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 equitable basis.

-SOURCE-

(Pub. L. 107-171, title I, Sec. 1305, May 13, 2002, 116 Stat. 173.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (a)(1), (c), and (d),

was in the original ''this subtitle'', meaning subtitle C (Sec.

1301-1310) of Pub. L. 107-171, title I, May 13, 2002, 116 Stat.

166, which is classified principally to this subchapter. For