7 USC 7955 - Producer agreement required as condition on provision of direct payments and counter-cyclical payments

Collapse to view only § 7955. Producer agreement required as condition on provision of direct payments and counter-cyclical payments

§ 7951. Definitions
§ 7952. Establishment of payment yield and base acres for peanuts for a farm
§ 7953. Availability of direct payments for peanuts
§ 7954. Availability of counter-cyclical payments for peanuts
§ 7955. Producer agreement required as condition on provision of direct payments and counter-cyclical payments
§ 7956. Planting flexibility
§ 7957. Marketing assistance loans and loan deficiency payments for peanuts
§ 7958. Miscellaneous provisions
§ 7959. Termination of marketing quota programs for peanuts and compensation to peanut quota holders for loss of quota asset value
§ 7960. Repeal of superseded price support authority and effect of repeal

§ 7951. Definitions

In this subchapter:

(1) Base acres for peanuts

(2) Counter-cyclical payment

(3) Effective price

(4) Direct payment

(5) Historic peanut producer

(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

(8) Producer

(9) Secretary

(10) State

(11) Target price

(12) United States

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

§ 7952. Establishment of payment yield and base acres for peanuts for a farm

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

(1) Determination of average yield

(A) In general

(B) Assigned yields

(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

(3) Time for determinations

(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

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

(1) Assignment by historic peanut producers

(2) Limitation on acreage assignment

Notwithstanding paragraph (1), the average acreage determined under subsection (a)(2) 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.

(C) Information regarding the manner in which 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

(d) Base acres for peanuts

(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

(f) Prevention of excess base acres for peanuts

(1) Required reduction

(2) Other acreage

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

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

(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 acres

(4) Exception for double-cropped acreage

(5) Coordinated application of requirements

(g) Permanent reduction in base acres for peanuts

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

§ 7953. Availability of direct payments for peanuts

(a) Payment required

(1) 2002 crop year

(2) Subsequent crop years

(b) Payment rate

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).

(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).

(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

(3) Repayment of advance payments

(Pub. L. 107–171, title I, § 1303, May 13, 2002, 116 Stat. 170; Pub. L. 109–171, title I, § 1102(b), Feb. 8, 2006, 120 Stat. 5.)

§ 7954. Availability of counter-cyclical payments for peanuts

(a) Payment required

(1) In general

(2) 2002 crop year

(3) Subsequent crop years

(b) Effective priceFor purposes of subsection (a), 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.

(d) Payment rateThe 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).

(e) Payment amount for 2002 crop yearIf 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).

(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 yearsIf 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).

(2) The payment acres on the farm.

(3) The payment yield for the farm.

(g) Time for payments

(1) General rule

(2) Availability of partial payments

(3) Time for partial payments

(A) 2002 through 2006 crop yearsWhen 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 yearWhen 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

(ii) Second partial paymentThe 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 paymentThe 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

(ii) Second partial paymentThe 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 paymentThe 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

(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 that crop year; and(II) the amount of the partial payment made to the producers under clause (i).

(5) Repayment

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

§ 7955. Producer agreement required as condition on provision of direct payments and counter-cyclical payments

(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.);

(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 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

(3) Modification

(b) Transfer or change of interest in farm

(1) Termination

(2) Exception

(d) Tenants and sharecroppers

(e) Sharing of payments

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

§ 7956. Planting flexibility

(a) Permitted crops

(b) Limitations regarding certain commodities

(1) General limitation

(2) Treatment of trees and other perennials

(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) 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.

(Pub. L. 107–171, title I, § 1306, May 13, 2002, 116 Stat. 174.)

§ 7957. Marketing assistance loans and loan deficiency payments for peanuts

(a) Nonrecourse loans available

(1) Availability

(2) Eligible production

(3) Treatment of certain commingled commodities

(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) Payment of peanut storage costs

(7) Marketing

(b) Loan rate

(1) In general

(2) Extensions prohibited

(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) Good faith exception to beneficial interest requirement

(e) Loan deficiency payments

(1) Availability

(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 determination

(A) In general

(B) Special rule for 2002 crop yearFor the 2002 crop year only, the 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 earlier of the following:

(i) The date on which the producers marketed or otherwise lost beneficial interest in the crop, as determined by the Secretary.

(ii) The date the producers request the payment.

(f) Compliance with conservation and wetlands requirements

(g) Reimbursable agreements and payment of administrative expenses

(Pub. L. 107–171, title I, § 1307, May 13, 2002, 116 Stat. 175.)

§ 7958. Miscellaneous provisions

(a) Mandatory inspection

(b) Termination of Peanut Administrative Committee

(1) Establishment and purpose

(2) Membership and appointment

(A) Total members

(B) Appointment process for producers

The Secretary shall appoint—

(i) 3 producers from the Southeast (Alabama, Georgia, and Florida) peanut producing region;

(ii) 3 producers from the Southwest (Texas, Oklahoma, and New Mexico) peanut producing region; and

(iii) 3 producers from the Virginia/Carolina (Virginia, North Carolina, and South Carolina) peanut producing region.

(3) Terms

(A) In general

(B) Initial appointment

In making the initial appointments to the Board, the Secretary shall stagger the terms of the members so that—

(i) 1 producer member and peanut industry member from each peanut producing region serves a 1-year term;

(ii) 1 producer member and peanut industry member from each peanut producing region serves a 2-year term; and

(iii) 1 producer member and peanut industry member from each peanut producing region serves a 3-year term.

(4) Consultation required

(5) Chapter 10 of title 5

(d) Priority

(e) Consistent standards

(f) Authorization of appropriations

(1) In general

(2) Treatment of Board expenses

(g) Transition rule

(1) Temporary designation of Peanut Administrative Committee members

(2) Funds

(3) Transition period

In paragraph (1), the term “transition period” means the period beginning on May 13, 2002, and ending on the earlier of—

(A) the date the Secretary appoints the members of the Peanut Standards Board pursuant to subsection (c); or

(B) 180 days after May 13, 2002.

(h) Effective date

(Pub. L. 107–171, title I, § 1308, May 13, 2002, 116 Stat. 178; Pub. L. 115–334, title XII, § 12517, Dec. 20, 2018, 132 Stat. 5000; Pub. L. 117–286, § 4(a)(41), Dec. 27, 2022, 136 Stat. 4309.)

§ 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

(1) Omitted

(2) Treatment of 2001 crop

(b) Compensation contract required

(1) In general

(2) Payment period

(1) Payment in installments

(2) Single payment

(d) Payment amount

The amount of the payment for a fiscal year to an eligible peanut quota holder under a contract shall be equal to the product obtained by multiplying—

(1) $0.11 per pound; by

(2) the number of pounds of quota with respect to which the person qualifies as a peanut quota holder under subsection (f).

(e) Assignment of payments

(f) Eligible peanut quota holder

(1) In general

(2) Effect of purchase contract

(3) Effect of agreement for permanent quota transfer

(4) Protected bases

(5) Secretarial discretion

(6) Limitation on quantity of quota held

(g) Successions in payment eligibility and attachment of eligibility to persons

(1) Eligibility attaches to persons

(2) Succession

(Pub. L. 107–171, title I, § 1309, May 13, 2002, 116 Stat. 179.)

§ 7960. Repeal of superseded price support authority and effect of repeal

(a) Omitted

(b) Disposal

(1) Applicability

(2) Price election

(3) Quality adjustment

(Pub. L. 107–171, title I, § 1310, May 13, 2002, 116 Stat. 182.)