USC Subchapter I

USC Subchapter I
in effect

7 U.S.C. § 7911 Establishment of base acres and payment acres for a farm

(a) Election by owner of base acres calculation method(1) Alternative calculation methodsFor the purpose of making direct payments and counter-cyclical payments with respect to a farm, the Secretary shall give an owner of the farm an opportunity to elect 1 of the following as the method by which the base acres of all covered commodities on the farm are to be determined:(A) Subject to paragraphs (3) and (4), the 4-year average of the following:(i) Acreage planted on the farm to covered commodities for harvest, grazing, haying, silage, or other similar purposes for the 1998 through 2001 crop years. (ii) Any acreage on the farm that the producers were prevented from planting during the 1998 through 2001 crop years to covered commodities because of drought, flood, or other natural disaster, or other condition beyond the control of the producers, as determined by the Secretary. (B) Subject to paragraph (3), the sum of the following:(i) The contract acreage (as defined in section 7202 of this title) used by the Secretary to calculate the fiscal year 2002 payment authorized under section 7214 of this title for the covered commodities on the farm. (ii) The 4-year average of eligible oilseed acreage on the farm for the 1998 through 2001 crop years, as determined by the Secretary under paragraph (2). (2) Eligible oilseed acreage(A) CalculationFor purposes of paragraph (1)(B)(ii), the eligible acreage for each oilseed on a farm during each of the 1998 through 2001 crop years shall be determined in the manner provided in paragraph (1)(A), except that the total acreage for all oilseeds on the farm for a crop year may not exceed the difference between—(i) the total acreage determined under paragraph (1)(A) for all covered commodities for that crop year; and (ii) the total contract acreage determined under paragraph (1)(B)(i). (B) Effect of negative numberIf 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. (C) Offset of contract acreageThe 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 averageFor 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 plantingFor 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 opportunityAs soon as practicable after May 13, 2002, the Secretary shall provide notice to owners of farms regarding their opportunity to make the election described in subsection (a). The notice shall include the following:(A) Notice that the opportunity of an owner to make the election is being provided only once. (B) Information regarding the manner in which the election must be made and the time periods and manner in which notice of the election must be submitted to the Secretary. (2) Election deadlineWithin 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). (c) Effect of failure to make electionIf the owner of a farm fails to make the election under subsection (a) or fails to timely notify the Secretary of the election made, as required by subsection (b), the owner shall be deemed to have made the election described in subsection (a)(1)(B) to determine base acres for all covered commodities on the farm. (d) Application of election to all covered commoditiesThe election made under subparagraph (A) or (B) of subsection (a)(1), or deemed to be made under subsection (c), 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 generalThe Secretary shall provide for an adjustment, as appropriate, in the base acres for covered commodities for a farm whenever either of the following circumstances occurs:(A) A conservation reserve contract entered into under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) with respect to the farm expires or is voluntarily terminated. (B) Cropland is released from coverage under a conservation reserve contract by the Secretary. (2) Special payment rulesFor 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 acresThe 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 reductionIf 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 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 acreageFor purposes of paragraph (1), the Secretary shall include the following:(A) Any base acres for peanuts for the farm under subchapter III. (B) Any acreage on the farm enrolled in the conservation reserve program or wetlands reserve program under chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.). (C) Any other acreage on the farm enrolled in a conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage. (3) Selection of acresThe 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 against which the reduction required by paragraph (1) will be made. (4) Exception for double-cropped acreageIn applying paragraph (1), the Secretary shall make an exception in the case of double cropping, as determined by the Secretary. (5) Coordinated application of requirementsThe Secretary shall take into account section 7952(f) of this title when applying the requirements of this subsection. (h) Permanent reduction in base acresThe 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.

7 U.S.C. § 7912 Establishment of payment yield

(a) Establishment and purposeFor 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 yieldExcept 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. (c) Farms without farm program payment yieldIn 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) for similar farms, but before the yields for the similar farms are updated as provided in subsection (e). (d) Payment yields for oilseeds(1) Determination of average yieldIn 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 yieldThe payment yield for a farm for an oilseed shall be equal to the product of the following:(A) The average yield for the oilseed determined under paragraph (1). (B) The ratio resulting from dividing the national average yield for the oilseed for the 1981 through 1985 crops by the national average yield for the oilseed for the 1998 through 2001 crops. (3) Use of partial county average yieldIf 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 updateIf 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 electionThe 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 yieldsIf the owner of a farm elects to update yields under this subsection, the payment yield for a covered commodity on the farm, for the purpose of calculating counter-cyclical payments only, shall be equal to the yield determined using either of the following:(A) The sum of the following:(i) The payment yield applicable for direct payments for the covered commodity on the farm. (ii) 70 percent of the difference between—(I) the average yield per planted acre for the crop of the covered commodity on the farm for the 1998 through 2001 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the crop of the covered commodity was zero; and (II) the payment yield applicable for direct payments for the covered commodity on the farm. (B) 93.5 percent of the average of the yield per planted acre for the crop of the covered commodity on the farm for the 1998 through 2001 crop years, as determined by the Secretary, excluding any crop year in which the acreage planted to the crop of the covered commodity was zero. (4) Use of partial county average yieldIf 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 commoditiesThe 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.

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

(a) Payment requiredFor 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 rateThe payment rates used to make direct payments with respect to covered commodities for a crop year are as follows:(1) Wheat, $0.52 per bushel. (2) Corn, $0.28 per bushel. (3) Grain sorghum, $0.35 per bushel. (4) Barley, $0.24 per bushel. (5) Oats, $0.024 per bushel. (6) Upland cotton, $0.0667 per pound. (7) Rice, $2.35 per hundredweight. (8) Soybeans, $0.44 per bushel. (9) Other oilseeds, $0.0080 per pound. (c) Payment amountThe amount of the direct payment to be paid to the producers on a farm for a covered commodity for a crop year shall be equal to the product of the following:(1) The payment rate specified in subsection (b). (2) The payment acres of the covered commodity on the farm. (3) The payment yield for the covered commodity for the farm. (d) Time for payment(1) In generalThe 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 paymentsAt 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 2005 crop years, up to 40 percent of the direct payment for a covered commodity for the 2006 crop year, and up to 22 percent of the direct payment for a covered commodity for the 2007 crop year, shall be paid to the producers in 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 paymentsIf 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.

7 U.S.C. § 7914 Availability of counter-cyclical payments

(a) Payment requiredFor 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 priceFor purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following:(1) The higher of the following:(A) The national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary. (B) The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under subchapter II. (2) The payment rate in effect for the covered commodity under section 7913 of this title for the purpose of making direct payments with respect to the covered commodity. (c) Target price(1) 2002 and 2003 crop yearsFor purposes of the 2002 and 2003 crop years, the target prices for covered commodities shall be as follows:(A) Wheat, $3.86 per bushel. (B) Corn, $2.60 per bushel. (C) Grain sorghum, $2.54 per bushel. (D) Barley, $2.21 per bushel. (E) Oats, $1.40 per bushel. (F) Upland cotton, $0.7240 per pound. (G) Rice, $10.50 per hundredweight. (H) Soybeans, $5.80 per bushel. (I) Other oilseeds, $0.0980 per pound. (2) Subsequent crop yearsFor purposes of each of the 2004 through 2007 crop years, the target prices for covered commodities shall be as follows:(A) Wheat, $3.92 per bushel. (B) Corn, $2.63 per bushel. (C) Grain sorghum, $2.57 per bushel. (D) Barley, $2.24 per bushel. (E) Oats, $1.44 per bushel. (F) Upland cotton, $0.7240 per pound. (G) Rice, $10.50 per hundredweight. (H) Soybeans, $5.80 per bushel. (I) Other oilseeds, $0.1010 per pound. (d) Payment rateThe payment rate used to make counter-cyclical payments with respect to a covered commodity for a crop year shall be equal to the difference between—(1) the target price for the covered commodity; and (2) the effective price determined under subsection (b) for the covered commodity. (e) Payment amountIf counter-cyclical payments are required to be paid for any of the 2002 through 2007 crop years of a covered commodity, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following:(1) The payment rate specified in subsection (d). (2) The payment acres of the covered commodity on the farm. (3) The payment yield or updated payment yield for the farm, depending on the election of the owner of the farm under section 7912 of this title. (f) Time for payments(1) General ruleIf the Secretary determines under subsection (a) that counter-cyclical payments are required to be made under this section for the crop of a covered commodity, the Secretary shall make the counter-cyclical payments for the crop as soon as practicable after the end of the 12-month marketing year for the covered commodity. (2) Availability of partial paymentsIf, 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 yearsWhen the Secretary makes partial payments available under paragraph (2) for a covered commodity for any of the 2002 through 2006 crop years—(i) the first partial payment for the crop year shall be made not earlier than October 1, and, to the maximum extent practicable, not later than October 31, of the calendar year in which the crop of the covered commodity is harvested; (ii) the second partial payment shall be made not earlier than February 1 of the next calendar year; and (iii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity. (B) 2007 crop yearWhen the Secretary makes partial payments available for a covered commodity for the 2007 crop year—(i) the first partial payment shall be made after completion of the first 6 months of the marketing year for the covered commodity; and (ii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity. (4) Amount of partial payments(A) 2002 through 2006 crop years(i) First partial paymentFor 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 paymentThe second partial payment for a covered commodity for a crop year may not exceed the difference between—(I) 70 percent of the projected counter-cyclical payment (including any revision thereof) for the crop of the covered commodity; and (II) the amount of the payment made under clause (i). (iii) Final paymentThe final payment for a covered commodity for a crop year shall be equal to the difference between—(I) the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and (II) the amount of the partial payments made to the producers under clauses (i) and (ii) for that crop year. (B) 2007 crop year(i) First partial paymentFor 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 paymentThe final payment for the 2007 crop year shall be equal to the difference between—(I) the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and (II) the amount of the partial payment made to the producers under clause (i). (5) RepaymentThe 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.

7 U.S.C. § 7915 Producer agreement required as condition of provision of direct payments and counter-cyclical payments

(a) Compliance with certain requirements(1) RequirementsBefore the producers on a farm may receive direct payments or counter-cyclical payments with respect to the farm, the producers shall agree, during the crop year for which the payments are made and in exchange for the payments—(A) to comply with applicable conservation requirements under subtitle B of title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.); (B) to comply with applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.); (C) to comply with the planting flexibility requirements of section 7916 of this title; (D) to use the land on the farm, in a quantity equal to the attributable base acres for the farm and any base acres for peanuts for the farm under subchapter III for an agricultural or conserving use, and not for a nonagricultural commercial or industrial use, as determined by the Secretary; and (E) to effectively control noxious weeds and otherwise maintain the land in accordance with sound agricultural practices, as determined by the Secretary, if the agricultural or conserving use involves the noncultivation of any portion of the land referred to in subparagraph (D). (2) ComplianceThe Secretary may issue such rules as the Secretary considers necessary to ensure producer compliance with the requirements of paragraph (1). (3) ModificationAt 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) TerminationExcept 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). The termination shall take effect on the date determined by the Secretary. (2) ExceptionIf 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. (c) Acreage reportsAs a condition on the receipt of any benefits under this subchapter or subchapter II, 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 sharecroppersIn carrying out this subchapter, the Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers. (e) Sharing of paymentsThe 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.

7 U.S.C. § 7916 Planting flexibility

(a) Permitted cropsSubject to subsection (b), any commodity or crop may be planted on base acres on a farm. (b) Limitations regarding certain commodities(1) General limitationThe 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 perennialsThe 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 commoditiesParagraphs (1) and (2) apply to the following agricultural commodities:(A) Fruits. (B) Vegetables (other than lentils, mung beans, and dry peas). (C) Wild rice. (c) ExceptionsParagraphs (1) and (2) of subsection (b) shall not limit the planting of an agricultural commodity specified in paragraph (3) of that subsection—(1) in any region in which there is a history of double-cropping of covered commodities with agricultural commodities specified in subsection (b)(3), as determined by the Secretary, in which case the double-cropping shall be permitted; (2) on a farm that the Secretary determines has a history of planting agricultural commodities specified in subsection (b)(3) on base acres, except that direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such an agricultural commodity; or (3) by the producers on a farm that the Secretary determines has an established planting history of a specific agricultural commodity specified in subsection (b)(3), except that—(A) the quantity planted may not exceed the average annual planting history of such agricultural commodity by the producers on the farm in the 1991 through 1995 or 1998 through 2001 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and (B) direct payments and counter-cyclical payments shall be reduced by an acre for each acre planted to such agricultural commodity. (d) Special rule for 2002 crop yearFor 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) 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.

7 U.S.C. § 7917 Relation to remaining payment authority under production flexibility contracts

(a) Termination of superseded payment authorityNotwithstanding 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 enactmentIf 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.

7 U.S.C. § 7918 Period of effectiveness

This subchapter shall be effective beginning with the 2002 crop year of each covered commodity through the 2007 crop year.

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