USC Subchapter III

USC Subchapter III
in effect

7 U.S.C. § 8751 Definitions

In this subchapter: (1) Base acres for peanuts(A) In generalThe term “base acres for peanuts” means the number of acres assigned to a farm pursuant to section 7952 of this title, as in effect on September 30, 2007, subject to any adjustment under section 8752 of this title. (B) Covered commoditiesThe term “base acres”, with respect to a covered commodity, has the meaning given the term in section 8711 of this title. (2) Counter-cyclical paymentThe term “counter-cyclical payment” means a payment made to producers on a farm under section 8754 11 See References in Text note below. of this title. (3) Direct paymentThe term “direct payment” means a direct payment made to producers on a farm under section 8753 1 of this title. (4) Effective priceThe term “effective price” means the price calculated by the Secretary under section 8754 1 of this title for peanuts to determine whether counter-cyclical payments are required to be made under that section for a crop year. (5) Payment acresThe term “payment acres” means, in the case of direct payments and counter-cyclical payments—(A) except as provided in subparagraph (B), 85 percent of the base acres of peanuts on a farm on which direct payments or counter-cyclical payments are made; and (B) in the case of direct payments for each of the 2009 through 2011 crop years, 83.3 percent of the base acres for peanuts on a farm on which direct payments are made. (6) Payment yieldThe term “payment yield” means the yield established for direct payments and the yield established for counter-cyclical payments under section 7952 of this title, as in effect on September 30, 2007, for a farm for peanuts. (7) Producer(A) In generalThe 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. (B) Hybrid seedIn determining whether a grower of hybrid seed is a producer, the Secretary shall—(i) not take into consideration the existence of a hybrid seed contract; and (ii) ensure that program requirements do not adversely affect the ability of the grower to receive a payment under this subchapter. (8) StateThe term “State” means—(A) a State; (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; and (D) any other territory or possession of the United States. (9) Target priceThe term “target price” means the price per ton of peanuts used to determine the payment rate for counter-cyclical payments. (10) United StatesThe term “United States”, when used in a geographical sense, means all of the States.

7 U.S.C. § 8752 Base acres for peanuts for a farm

(a) Adjustment of base acreage for peanuts(1) In generalThe Secretary shall provide for an adjustment, as appropriate, in the base acres for peanuts for a farm whenever any 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, or was terminated or expired during the period beginning on October 1, 2007, and ending on the date of enactment of this Act. (B) Cropland is released from coverage under a conservation reserve contract by the Secretary, or was released during the period beginning on October 1, 2007, and ending on the date of enactment of this Act. (C) The producer has eligible pulse crop acreage, which shall be determined in the same manner as eligible oilseed acreage under section 7911(a)(2) of this title. (D) The producer has eligible oilseed acreage as the result of the Secretary designating additional oilseeds, which shall be determined in the same manner as eligible oilseed acreage under section 7911(a)(2) of this title. (2) Special conservation reserve acreage payment rulesFor the crop year in which a base acres for peanuts adjustment under subparagraph (A) or (B) of paragraph (1) is first made, the owner of the farm shall elect to receive either direct payments and counter-cyclical payments with respect to the acreage added to the farm under this subsection or a prorated payment under the conservation reserve contract, but not both. (b) Prevention of excess base acres for peanuts(1) Required reductionIf 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 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 acreageFor purposes of paragraph (1), the Secretary shall include the following:(A) Any base acres for the farm for a covered commodity. (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 Federal conservation program for which payments are made in exchange for not producing an agricultural commodity on the acreage. (D) Any eligible pulse crop acreage, which shall be determined in the same manner as eligible oilseed acreage under section 7911(a)(2) of this title. (E) If the Secretary designates additional oilseeds, any eligible oilseed acreage, which shall be determined in the same manner as eligible oilseed acreage under section 7911(a)(2) of this title. (3) Selection of acresThe Secretary shall give the owner of the farm the opportunity to select the base acres for peanuts or the base acres for covered commodities 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 8711(b) of this title when applying the requirements of this subsection. (c) Reduction in base acres(1) Reduction at option of owner(A) In generalThe owner of a farm may reduce, at any time, the base acres for peanuts for the farm. (B) Effect of reductionA reduction under subparagraph (A) shall be permanent and made in a manner prescribed by the Secretary. (2) Required action by Secretary(A) In generalThe Secretary shall proportionately reduce base acres on a farm for peanuts for land that has been subdivided and developed for multiple residential units or other nonfarming uses if the size of the tracts and the density of the subdivision is such that the land is unlikely to return to the previous agricultural use, unless the producers on the farm demonstrate that the land—(i) remains devoted to commercial agricultural production; or (ii) is likely to be returned to the previous agricultural use. (B) RequirementThe Secretary shall establish procedures to identify land described in subparagraph (A). (3) Review and reportEach year, to ensure, to the maximum extent practicable, that payments are received only by producers, the Secretary shall submit to Congress a report that describes the results of the actions taken under paragraph (2). (d) Treatment of farms with limited base acres(1) Prohibition on paymentsExcept as provided in paragraph (2) and notwithstanding any other provision of this chapter, a producer on a farm may not receive direct payments, counter-cyclical payments, or average crop revenue election payments if the sum of the base acres of the farm is 10 acres or less, as determined by the Secretary. (2) ExceptionsParagraph (1) shall not apply to a farm owned by—(A) a socially disadvantaged farmer or rancher (as defined in section 2003(e) of this title; 11 So in original. There probably should be a closing parenthesis after “title”. or (B) a limited resource farmer or rancher, as defined by the Secretary. (3) Suspension of prohibitionParagraphs (1) and (2) shall not apply during the 2008 crop year.

7 U.S.C. § 8755 Producer agreement required as condition on provision of payments

(a) Compliance with certain requirements(1) RequirementsBefore the producers on a farm may receive direct payments or counter-cyclical payments under this subchapter, or average crop revenue election payments under section 8715 11 See References in Text note below. of this title, 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.); (C) to comply with the planting flexibility requirements of section 8756 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, for an agricultural or conserving use, and not for a nonagricultural commercial, industrial, or residential 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) Termination(A) In generalExcept 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, or on which average crop revenue election payments are based, shall result in the termination of the direct payments, counter-cyclical payments, or average crop revenue election payments to the extent the payments are made or based on the base acres, unless the transferee or owner of the acreage agrees to assume all obligations under subsection (a). (B) Effective dateThe termination shall take effect on the date determined by the Secretary. (2) ExceptionIf a producer entitled to a direct payment, counter-cyclical payment, or average crop revenue election 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 reports(1) In generalAs a condition on the receipt of any benefits under this subchapter, the Secretary shall require producers on a farm to submit to the Secretary annual acreage reports with respect to all cropland on the farm. (2) PenaltiesNo penalty with respect to benefits under this subchapter shall be assessed against the producers on a farm for an inaccurate acreage report unless the producers on the farm knowingly and willfully falsified the acreage report. (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, counter-cyclical payments, or average crop revenue election payments under section 8715 1 of this title among the producers on a farm on a fair and equitable basis. (f) Extension of 2008 signup(1) In generalNotwithstanding any other provision of law, the Secretary shall extend the 2008 crop year deadline for the signup for benefits under this subchapter by producers on a farm with base acres of 10 acres or less until the later of—(A) November 14, 2008; or (B) the end of the 45-day period beginning on October 13, 2008. (2) PenaltiesThe Secretary shall ensure that no penalty with respect to benefits under this subchapter is assessed against producers on a farm described in paragraph (1) for failure to submit reports under this section or timely comply with other program requirements as a result of compliance with the extended signup deadline under that paragraph.

7 U.S.C. § 8756 Planting flexibility

(a) Permitted cropsSubject to subsection (b), any commodity or crop may be planted on the base acres for peanuts 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 for peanuts 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 for peanuts. (3) Covered agricultural commoditiesParagraphs (1) and (2) apply to the following agricultural commodities:(A) Fruits. (B) Vegetables (other than mung beans and pulse crops). (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 peanuts 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 the base acres for peanuts, 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.

7 U.S.C. § 8757 Marketing assistance loans and loan deficiency payments for peanuts

(a) Nonrecourse loans available(1) AvailabilityFor each of the 2008 through 2012 crops of peanuts, the Secretary shall make available to producers on a farm nonrecourse marketing assistance loans for peanuts produced on the farm. (2) Terms and conditionsThe loans shall be made under terms and conditions that are prescribed by the Secretary and at the loan rate established under subsection (b). (3) Eligible productionThe producers on a farm shall be eligible for a marketing assistance loan under this subsection for any quantity of peanuts produced on the farm. (4) Options for obtaining loanA marketing assistance loan under this subsection, and loan deficiency payments under subsection (e), may be obtained at the option of the producers on a farm through—(A) a designated marketing association or marketing cooperative of producers that is approved by the Secretary; or (B) the Farm Service Agency. (5) Storage of loan peanutsAs a condition on the Secretary’s approval of an individual or entity to provide storage for peanuts for which a marketing assistance loan is made under this section, the individual or entity shall agree—(A) to provide such storage on a nondiscriminatory basis; and (B) to comply with such additional requirements as the Secretary considers appropriate to accomplish the purposes of this section and promote fairness in the administration of the benefits of this section. (6) Storage, handling, and associated costs(A) In generalBeginning with the 2008 crop of peanuts, to ensure proper storage of peanuts for which a loan is made under this section, the Secretary shall pay handling and other associated costs (other than storage costs) incurred at the time at which the peanuts are placed under loan, as determined by the Secretary. (B) Redemption and forfeitureThe Secretary shall—(i) require the repayment of handling and other associated costs paid under subparagraph (A) for all peanuts pledged as collateral for a loan that is redeemed under this section; and (ii) pay storage, handling, and other associated costs for all peanuts pledged as collateral that are forfeited under this section. (7) MarketingA marketing association or cooperative may market peanuts for which a loan is made under this section in any manner that conforms to consumer needs, including the separation of peanuts by type and quality. (b) Loan rateExcept as provided in section 8715 11 See References in Text note below. of this title, the loan rate for a marketing assistance loan for peanuts under subsection (a) shall be equal to $355 per ton. (c) Term of loan(1) In generalA marketing assistance loan for peanuts under subsection (a) 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. (2) Extensions prohibitedThe Secretary may not extend the term of a marketing assistance loan for peanuts under subsection (a). (d) Repayment rate(1) In generalThe Secretary shall permit producers on a farm to repay a marketing assistance loan for peanuts under subsection (a) at a rate that is the lesser of—(A) the loan rate established for peanuts under subsection (b), plus interest (determined in accordance with section 7283 of this title); or (B) a rate that the Secretary determines will—(i) minimize potential loan forfeitures; (ii) minimize the accumulation of stocks of peanuts by the Federal Government; (iii) minimize the cost incurred by the Federal Government in storing peanuts; and (iv) allow peanuts produced in the United States to be marketed freely and competitively, both domestically and internationally. (2) Authority to temporarily adjust repayment rates(A) Adjustment authorityIn the event of a severe disruption to marketing, transportation, or related infrastructure, the Secretary may modify the repayment rate otherwise applicable under this subsection for marketing assistance loans for peanuts under subsection (a). (B) DurationAn adjustment made under subparagraph (A) in the repayment rate for marketing assistance loans for peanuts shall be in effect on a short-term and temporary basis, as determined by the Secretary. (e) Loan deficiency payments(1) AvailabilityThe Secretary may make loan deficiency payments available to producers on a farm that, although eligible to obtain a marketing assistance loan for peanuts under subsection (a), agree to forgo obtaining the loan for the peanuts in return for loan deficiency payments under this subsection. (2) ComputationA loan deficiency payment under this subsection shall be computed by multiplying—(A) the payment rate determined under paragraph (3) for peanuts; by (B) the quantity of the peanuts produced by the producers, excluding any quantity for which the producers obtain a marketing assistance loan under subsection (a). (3) Payment rateFor purposes of this subsection, the payment rate shall be the amount by which—(A) the loan rate established under subsection (b); exceeds (B) the rate at which a loan may be repaid under subsection (d). (4) Effective date for payment rate determinationThe Secretary shall determine the amount of the loan deficiency payment to be made under this subsection to the producers on a farm with respect to a quantity of peanuts using the payment rate in effect under paragraph (3) as of the date the producers request the payment. (f) Compliance with conservation and wetlands requirementsAs a condition of the receipt of a marketing assistance loan under subsection (a), 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 that Act (16 U.S.C. 3821 et seq.) during the term of the loan. (g) Reimbursable agreements and payment of administrative expensesThe Secretary may implement any reimbursable agreements or provide for the payment of administrative expenses under this subchapter only in a manner that is consistent with such activities in regard to other commodities.

7 U.S.C. § 8758 Adjustments of loans

(a) Adjustment authorityThe Secretary may make appropriate adjustments in the loan rates for peanuts for differences in grade, type, quality, location, and other factors. (b) Manner of adjustmentThe adjustments under subsection (a) shall, to the maximum extent practicable, be made in such a manner that the average loan level for peanuts will, on the basis of the anticipated incidence of the factors, be equal to the level of support determined in accordance with this subchapter and subtitles B, D, and E. (c) Adjustment on county basis(1) In generalSubject to paragraph (2), the Secretary may establish loan rates for a crop of peanuts for producers in individual counties in a manner that results in the lowest loan rate being 95 percent of the national average loan rate, if those loan rates do not result in an increase in outlays. (2) ProhibitionAdjustments under this subsection shall not result in an increase in the national average loan rate for any year.

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