7 U.S.C. § 7954 — Availability of counter-cyclical payments for peanuts

(a) When payments are required. (1) For 2002 through 2007, the Secretary^* must make counter-cyclical payments if the "effective price^*" for peanuts falls below the "target price^*." (2) For the 2002 crop, these payments go to historic peanut producers. (3) For 2003-2007, they go to the producers on a farm with a payment yield^* and base acres assigned under section 7952.

(b) Effective price. This equals: (1) the higher of (A) the national average market price farmers received during the peanut marketing year, or (B) the national average peanut marketing loan rate; plus (2) the direct payment^* rate from section 7953.

(c) Target price. Fixed at $495 per ton.

(d) Payment rate. The target price minus the effective price from (b).

(e) 2002 payment amount. Multiply: the payment rate, the historic peanut producer's payment acres^*, and their average yield under section 7952(a)(1).

(f) 2003-2007 payment amount. Multiply: the payment rate, the farm's payment acres, and the farm's payment yield.

(g) Timing. (1) Once the Secretary decides a counter-cyclical payment^* is owed for a crop year, it must be paid as soon as practical after the 12-month marketing year ends. (2) If the Secretary estimates before the marketing year ends that a payment will be owed, producers can choose to get partial payments early. (3)(A) For 2002-2006, when partial payments are offered: the first comes between October 1 and, ideally, October 31 of the harvest year; the second no earlier than the following February 1; and the final payment as soon as practical after the marketing year ends. (B) For 2007, the first partial payment comes after the marketing year's first six months, and the final payment comes as soon as practical after the year ends. (4)(A) For 2002: the first partial payment cannot exceed 35% of the projected total; the second cannot push the running total above 70% of the (possibly revised) projected total; and the final payment makes up the rest of the actual amount owed. (B) For 2003-2006: the same 35%-then-70% structure applies. (C) For 2007: the first partial payment cannot exceed 40% of the projected total, and the final payment makes up the rest. (5) Repayment: if a producer's partial payments for a year add up to more than the actual counter-cyclical payment they were owed, they must repay the Secretary the difference.