7 U.S.C. § 7914 — Availability of counter-cyclical payments
submitted 24 years ago by Pub. L. 107-171 to r/title-7-AGRICULTURE · 1,103 words · no verdicts yet
The Secretary must pay farm producers a counter-cyclical payment whenever a covered commodity's market price falls below its target price. Target prices are fixed for 2002-2003 and again for 2004-2007, and producers can request partial advance payments during the year, which must later be repaid if they turn out too high.
(a) Payment required. For each crop year 2002 through 2007, the Secretary* must pay counter-cyclical payments to producers on farms with an established payment yield* and base acres, whenever the "effective price" for a covered commodity* is lower than its "target price*."
(b) Effective price. The effective price equals: the higher of (1) the national average market price producers actually got during the 12-month marketing year, or (2) the national average loan rate for that commodity — plus, added to whichever of those is higher, (2) the direct-payment rate set for that commodity under section 7913.
(c) Target price. For 2002 and 2003, the fixed target prices are: wheat $3.86/bushel, corn $2.60/bushel, grain sorghum $2.54/bushel, barley $2.21/bushel, oats $1.40/bushel, upland cotton $0.7240/pound, rice $10.50/hundredweight, soybeans $5.80/bushel, other oilseeds $0.0980/pound. For 2004 through 2007, they rise slightly: wheat $3.92/bushel, corn $2.63/bushel, grain sorghum $2.57/bushel, barley $2.24/bushel, oats $1.44/bushel, upland cotton stays $0.7240/pound, rice stays $10.50/hundredweight, soybeans stays $5.80/bushel, other oilseeds $0.1010/pound.
(d) Payment rate. Subtract the effective price (from (b)) from the target price (from (c)). That difference is the payment rate.
(e) Payment amount. To find the counter-cyclical payment* for a farm: multiply the payment rate from (d), by the farm's payment acres* for that commodity, by the farm's payment yield (or updated payment yield*, if the owner chose to update it under section 7912).
(f) Time for payments. If the Secretary determines a payment is owed, it must be paid as soon as practical after the 12-month marketing year ends. But if, before that year ends, the Secretary estimates a payment will be owed, producers may choose to get partial payments early. For 2002 through 2006: the first partial payment comes around October 1 (no earlier, and, where practical, no later than October 31) after harvest; the second no earlier than the following February 1; the final payment as soon as practical after the marketing year ends. For 2007: the first partial payment comes after the first 6 months of the marketing year, and the final payment as soon as practical after the marketing year ends. On the amounts: for 2002–2006, the first partial payment can't exceed 35 percent of the projected total; the second can't push the running total past 70 percent of the projected amount (as revised); and the final payment makes up whatever difference remains between the actual total owed and what was already paid. For 2007, the first partial payment can't exceed 40 percent of the projected total, and the final payment covers the rest.
If a producer's partial payments end up totaling more than the actual counter-cyclical payment owed for that crop year, that producer* must repay the Secretary the excess.
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.
For purposes of subsection (a), the effective price for a covered commodity is equal to the sum of the following:
The higher of the following:
The national average market price received by producers during the 12-month marketing year for the covered commodity, as determined by the Secretary.
The national average loan rate for a marketing assistance loan for the covered commodity in effect for the applicable period under subchapter II.
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.
For purposes of the 2002 and 2003 crop years, the target prices for covered commodities shall be as follows:
Wheat, $3.86 per bushel.
Corn, $2.60 per bushel.
Grain sorghum, $2.54 per bushel.
Barley, $2.21 per bushel.
Oats, $1.40 per bushel.
Upland cotton, $0.7240 per pound.
Rice, $10.50 per hundredweight.
Soybeans, $5.80 per bushel.
Other oilseeds, $0.0980 per pound.
For purposes of each of the 2004 through 2007 crop years, the target prices for covered commodities shall be as follows:
Wheat, $3.92 per bushel.
Corn, $2.63 per bushel.
Grain sorghum, $2.57 per bushel.
Barley, $2.24 per bushel.
Oats, $1.44 per bushel.
Upland cotton, $0.7240 per pound.
Rice, $10.50 per hundredweight.
Soybeans, $5.80 per bushel.
Other oilseeds, $0.1010 per pound.
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—
the target price for the covered commodity; and
the effective price determined under subsection (b) for the covered commodity.
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:
The payment rate specified in subsection (d).
The payment acres* of the covered commodity on the farm.
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.
If 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.
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.
When the Secretary makes partial payments available under paragraph (2) for a covered commodity for any of the 2002 through 2006 crop years—
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;
the second partial payment shall be made not earlier than February 1 of the next calendar year; and
the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity.
When the Secretary makes partial payments available for a covered commodity for the 2007 crop year—
the first partial payment shall be made after completion of the first 6 months of the marketing year for the covered commodity; and
the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the covered commodity.
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.
The second partial payment for a covered commodity for a crop year may not exceed the difference between—
70 percent of the projected counter-cyclical payment (including any revision thereof) for the crop of the covered commodity; and
the amount of the payment made under clause (i).
The final payment for a covered commodity for a crop year shall be equal to the difference between—
the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and
the amount of the partial payments made to the producers under clauses (i) and (ii) for that crop year.
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.
The final payment for the 2007 crop year shall be equal to the difference between—
the actual counter-cyclical payment to be made to the producers for the covered commodity for that crop year; and
the amount of the partial payment made to the producers under clause (i).
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 credit: (Pub. L. 107–171, title I, § 1104, May 13, 2002, 116 Stat. 150.)
- 2002Enacted · Pub. L. 107-171 · 116 Stat. 150
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-171 on 2002-05-13.
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