§ 7214. — Determination of contract payments under contracts.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7214]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER II--PRODUCTION FLEXIBILITY CONTRACTS
Sec. 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
The payment quantity of each contract commodity covered by all
contracts for each fiscal year shall be equal to the sum of the amounts
calculated under subsection (a) of this section for each individual
contract.
(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) of this section
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) of this
section 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) of this section.
(e) Reduction in payment amount
The contract payment determined under subsection (d) of this section
for an owner or producer for a fiscal year shall be immediately reduced
by the amount of any repayment of deficiency payments that is required
under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C.
1445j(a)(2)) and is not repaid as of the date the contract payment is
determined. The Secretary shall be required to collect the required
repayment, or any claim based on the required repayment, as soon as the
contract payment is determined.
(f) Assignment of contract payments
The provisions of section 590h(g) of title 16 (relating to
assignment of payments) shall apply to contract payments under this
section. The owner or producer making the assignment, or the assignee,
shall provide the Secretary with notice, in such manner as the Secretary
may require in the contract, of any assignment made under this
subsection.
(g) Sharing of contract payments
The Secretary shall provide for the sharing of contract payments
among the owners and producers subject to the contract on a fair and
equitable basis.
(Pub. L. 104-127, title I, Sec. 114, Apr. 4, 1996, 110 Stat. 901.)
Section Referred to in Other Sections
This section is referred to in sections 7911, 7916 of this title.
