Collapse to view only § 7214. Determination of contract payments under contracts
- § 7211. Authorization for use of production flexibility contracts
- § 7212. Elements of contracts
- § 7213. Amounts available for contract payments
- § 7214. Determination of contract payments under contracts
- § 7215. Applicability of payment limitations
- § 7216. Violations of contract
- § 7217. Transfer or change of interest in lands subject to contract
- § 7218. Planting flexibility
§ 7211. Authorization for use of production flexibility contracts
(a) Offer and terms
The Secretary shall offer to enter into a production flexibility contract with an eligible owner or producer described in subsection (b) on a farm containing eligible cropland. Under the terms of a contract, the owner or producer shall agree, in exchange for annual contract payments, to—
(1) 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.);
(2) comply with applicable wetland protection requirements under subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.);
(3) comply with the planting flexibility requirements of section 7218 of this title; and
(4) use the land subject to the contract for an agricultural or related activity, but not for a nonagricultural commercial or industrial use, as determined by the Secretary.
(b) Eligible owners and producers described
The following producers and owners shall be eligible to enter into a contract:
(1) An owner of eligible cropland who assumes all or a part of the risk of producing a crop.
(2) A producer (other than an owner) on eligible cropland with a share-rent lease of the eligible cropland, regardless of the length of the lease, if the owner enters into the same contract.
(3) A producer (other than an owner) on eligible cropland who cash rents the eligible cropland under a lease expiring on or after September 30, 2002, in which case the owner is not required to enter into the contract.
(4) A producer (other than an owner) on eligible cropland who cash rents the eligible cropland under a lease expiring before September 30, 2002. The owner of the eligible cropland may also enter into the same contract. If the producer elects to enroll less than 100 percent of the eligible cropland in the contract, the consent of the owner is required.
(5) An owner of eligible cropland who cash rents the eligible cropland and the lease term expires before September 30, 2002, if the tenant declines to enter into a contract. In the case of an owner covered by this paragraph, contract payments shall not begin under a contract until the lease held by the tenant ends.
(6) An owner or producer described in any preceding paragraph regardless of whether the owner or producer purchased catastrophic risk protection for a 1996 crop under section 1508(b) of this title.
(c) Tenants and sharecroppers
(d) Eligible cropland described
Land shall be considered to be cropland eligible for coverage under a contract only if the land has contract acreage attributable to the land and—
(1) for at least 1 of the 1991 through 1995 crops, at least a portion of the land was enrolled in the acreage reduction program authorized for a crop of a contract commodity under section 101B, 103B, 105B, or 107B of the Agricultural Act of 1949 or was considered planted;
(2) was subject to a conservation reserve contract under section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831) whose term expired, or was voluntarily terminated, on or after January 1, 1995; or
(3) is released from coverage under a conservation reserve contract by the Secretary during the period beginning on January 1, 1995, and ending on the date specified in section 7212(a)(2) of this title.
(e) Quantity of eligible cropland covered by contract
(f) Voluntary reduction in contract acreage
(Pub. L. 104–127, title I, § 111, Apr. 4, 1996, 110 Stat. 898.)
§ 7212. Elements of contracts
(a) Time for contracting
(1) Commencement
(2) Deadline
(3) Conservation reserve lands
(A) In general
(B) Amount
(b) Duration of contract
(1) Beginning date
The term of a contract shall begin with—
(A) the 1996 crop of a contract commodity; or
(B) in the case of acreage that was subject to a conservation reserve contract described in subsection (a)(3), the date the production flexibility contract was entered into or expanded to cover the acreage.
(2) Ending date
(c) Estimation of contract payments
(d) Time for payment
(1) In general
(2) Advance payments
(A) Fiscal year 1996
(B) Subsequent fiscal years
(3) Special rule
(Pub. L. 104–127, title I, § 112, Apr. 4, 1996, 110 Stat. 899; Pub. L. 105–228, § 2, Aug. 12, 1998, 112 Stat. 1516; Pub. L. 106–78, title VIII, § 811, Oct. 22, 1999, 113 Stat. 1181.)
§ 7213. Amounts available for contract payments
(a) Fiscal year amounts
The Secretary shall, to the maximum extent practicable, expend the following amounts to satisfy the obligations of the Secretary under all contracts:
(1) For fiscal year 1996, $5,570,000,000.
(2) For fiscal year 1997, $5,385,000,000.
(3) For fiscal year 1998, $5,800,000,000.
(4) For fiscal year 1999, $5,603,000,000.
(5) For fiscal year 2000, $5,130,000,000.
(6) For fiscal year 2001, $4,130,000,000.
(7) For fiscal year 2002, $4,008,000,000.
(b) Allocation
The amount made available for a fiscal year under subsection (a) shall be allocated as follows:
(1) For wheat, 26.26 percent.
(2) For corn, 46.22 percent.
(3) For grain sorghum, 5.11 percent.
(4) For barley, 2.16 percent.
(5) For oats, 0.15 percent.
(6) For upland cotton, 11.63 percent.
(7) For rice, 8.47 percent.
(c) Adjustment
The Secretary shall adjust the amounts allocated for each contract commodity under subsection (b) for a particular fiscal year by—
(1) adding an amount equal to the sum of all repayments of deficiency payments required under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the commodity;
(2) adding an amount equal to the sum of all refunds of contract payments received during the preceding fiscal year under section 7216 of this title for the commodity; and
(3) subtracting an amount equal to the amount, if any, necessary during that fiscal year to satisfy payment requirements for the commodity under sections 103B, 105B, or 107B of the Agricultural Act of 1949 for the 1994 and 1995 crop years.
(d) Additional rice allocation
(e) Exclusion of certain amounts from contract payments
(f) Effect of payment limitation
(Pub. L. 104–127, title I, § 113, Apr. 4, 1996, 110 Stat. 900.)
§ 7214. Determination of contract payments under contracts
(a) Individual payment quantity of contract commodities
For each contract, the payment quantity of a contract commodity for each fiscal year shall be equal to the product of—
(1) 85 percent of the contract acreage; and
(2) the farm program payment yield.
(b) Annual payment quantity of contract commodities
(c) Annual payment rate
The payment rate for a contract commodity for each fiscal year shall be equal to—
(1) the amount made available under section 7213 of this title for the contract commodity for the fiscal year; divided by
(2) the amount determined under subsection (b) for the fiscal year.
(d) Annual payment amount
The amount to be paid under a contract in effect for each fiscal year with respect to all contract commodities covered by the contract shall be equal to the sum of the products of—
(1) the payment quantity determined under subsection (a) for each of the contract commodities covered by the contract; and
(2) the corresponding payment rate for the contract commodity in effect under subsection (c).
(e) Reduction in payment amount
(f) Assignment of contract payments
(g) Sharing of contract payments
(Pub. L. 104–127, title I, § 114, Apr. 4, 1996, 110 Stat. 901.)
§ 7215. Applicability of payment limitations
Sections 1308 through 1308–3 of this title shall be applicable to contract payments made under this subchapter.
(Pub. L. 104–127, title I, § 115(a), Apr. 4, 1996, 110 Stat. 902.)
§ 7216. Violations of contract
(a) Termination of contract for violation
(b) Refund or adjustment
If the Secretary determines that a violation does not warrant termination of the contract under subsection (a), the Secretary may require the owner or producer subject to the contract—
(1) to refund to the Secretary that part of the contract payments received by the owner or producer during the period of the violation, together with interest on the contract payments as determined by the Secretary; or
(2) to accept a reduction in the amount of future contract payments that is proportionate to the severity of the violation, as determined by the Secretary.
(c) Foreclosure
(1) Effect of foreclosure
(2) Resumption of operation
(d) Review
(Pub. L. 104–127, title I, § 116, Apr. 4, 1996, 110 Stat. 903.)
§ 7217. Transfer or change of interest in lands subject to contract
(a) Termination
(b) Modification
(c) Exception
(Pub. L. 104–127, title I, § 117, Apr. 4, 1996, 110 Stat. 904.)
§ 7218. Planting flexibility
(a) Permitted crops
(b) Limitations and exceptions regarding fruits and vegetables
(1) Limitations
(2) ExceptionsParagraph (1) shall not limit the planting of a fruit or vegetable—
(A) in any region in which there is a history of double-cropping of contract commodities with fruits or vegetables, as determined by the Secretary, in which case the double-cropping shall be permitted;
(B) on a farm that the Secretary determines has a history of planting fruits or vegetables on contract acreage, except that a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable; or
(C) by a producer who the Secretary determines has an established planting history of a specific fruit or vegetable, except that—
(i) the quantity planted may not exceed the producer’s average annual planting history of the fruit or vegetable in the 1991 through 1995 crop years (excluding any crop year in which no plantings were made), as determined by the Secretary; and
(ii) a contract payment shall be reduced by an acre for each acre planted to the fruit or vegetable.
(Pub. L. 104–127, title I, § 118, Apr. 4, 1996, 110 Stat. 904.)