§ 7333. — Administration and operation of noninsured crop assistance program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC7333]
TITLE 7--AGRICULTURE
CHAPTER 100--AGRICULTURAL MARKET TRANSITION
SUBCHAPTER VIII--MISCELLANEOUS COMMODITY PROVISIONS
Sec. 7333. Administration and operation of noninsured crop
assistance program
(a) Operation and administration of program
(1) In general
In the case of an eligible crop described in paragraph (2), the
Secretary of Agriculture shall operate a noninsured crop disaster
assistance program to provide coverage equivalent to the
catastrophic risk protection otherwise available under section
1508(b) of this title. The Secretary shall carry out this section
through the Consolidated Farm Service Agency (in this section
referred to as the ``Agency'').
(2) Eligible crops
(A) In general
In this section, the term ``eligible crop'' means each
commercial crop or other agricultural commodity (except
livestock)--
(i) for which catastrophic risk protection under section
1508(b) of this title is not available; and
(ii) that is produced for food or fiber.
(B) Crops specifically included
The term ``eligible crop'' shall include floricultural,
ornamental nursery, and Christmas tree crops, turfgrass sod,
seed crops, aquaculture (including ornamental fish), sea grass
and sea oats, and industrial crops.
(C) Combination of similar types or varieties
At the option of the Secretary, all types or varieties of a
crop or commodity, described in subparagraphs (A) and (B), may
be considered to be a single eligible crop under this section.
(3) Cause of loss
To qualify for assistance under this section, the losses of the
noninsured commodity shall be due to drought, flood, or other
natural disaster, as determined by the Secretary.
(b) Application for noninsured crop disaster assistance
(1) Timely application
To be eligible for assistance under this section, a producer
shall submit an application for noninsured crop disaster assistance
at a local office of the Department. The application shall be in
such form, contain such information, and be submitted not later than
30 days before the beginning of the coverage period, as determined
by the Secretary.
(2) Records
To be eligible for assistance under this section, a producer
shall provide annually to the Secretary records of crop acreage,
acreage yields, and production for each crop, as required by the
Secretary.
(3) Acreage reports
A producer shall provide annual reports on acreage planted or
prevented from being planted, as required by the Secretary, by the
designated acreage reporting date for the crop and location as
established by the Secretary.
(c) Loss requirements
(1) Cause
To be eligible for assistance under this section, a producer of
an eligible crop shall have suffered a loss of a noninsured
commodity as the result of a cause described in subsection (a)(3) of
this section.
(2) Assistance
On making a determination described in subsection (a)(3) of this
section, the Secretary shall provide assistance under this section
to producers of an eligible crop that have suffered a loss as a
result of the cause described in subsection (a)(3) of this section.
(3) Prevented planting
Subject to paragraph (1), the Secretary shall make a prevented
planting noninsured crop disaster assistance payment if the producer
is prevented from planting more than 35 percent of the acreage
intended for the eligible crop because of drought, flood, or other
natural disaster, as determined by the Secretary.
(4) Area trigger
The Secretary shall provide assistance to individual producers
without any requirement of an area loss.
(d) Payment
The Secretary shall make available to a producer eligible for
noninsured assistance under this section a payment computed by
multiplying--
(1) the quantity that is less than 50 percent of the established
yield for the crop; by
(2)(A) in the case of each of the 1996 through 1998 crop years,
60 percent of the average market price for the crop (or any
comparable coverage determined by the Secretary); or
(B) in the case of each of the 1999 and subsequent crop years,
55 percent of the average market price for the crop (or any
comparable coverage determined by the Secretary); by
(3) a payment rate for the type of crop (as determined by the
Secretary) that--
(A) in the case of a crop that is produced with a
significant and variable harvesting expense, reflects the
decreasing cost incurred in the production cycle for the crop
that is--
(i) harvested;
(ii) planted but not harvested; and
(iii) prevented from being planted because of drought,
flood, or other natural disaster (as determined by the
Secretary); and
(B) in the case of a crop that is not produced with a
significant and variable harvesting expense, as determined by
the Secretary.
(e) Yield determinations
(1) Establishment
The Secretary shall establish farm yields for purposes of
providing noninsured crop disaster assistance under this section.
(2) Actual production history
The Secretary shall determine yield coverage using the actual
production history of the producer over a period of not less than
the 4 previous consecutive crop years and not more than 10
consecutive crop years. Subject to paragraph (3), the yield for the
year in which noninsured crop disaster assistance is sought shall be
equal to the average of the actual production history of the
producer during the period considered.
(3) Assignment of yield
If a producer does not submit adequate documentation of
production history to determine a crop yield under paragraph (2),
the Secretary shall assign to the producer a yield equal to not less
than 65 percent of the transitional yield of the producer (adjusted
to reflect actual production reflected in the records acceptable to
the Secretary for continuous years), as specified in regulations
issued by the Secretary based on production history requirements.
(4) Prohibition on assigned yields in certain counties
(A) In general
(i) Documentation
If sufficient data are available to demonstrate that the
acreage of a crop in a county for the crop year has
increased by more than 100 percent over any year in the
preceding 7 crop years or, if data are not available, if the
acreage of the crop in the county has increased
significantly from the previous crop years, a producer must
provide such detailed documentation of production costs,
acres planted, and yield for the crop year for which
benefits are being claimed as is required by the Secretary.
If the Secretary determines that the documentation provided
is not sufficient, the Secretary may require documenting
proof that the crop, had the crop been harvested, could have
been marketed at a reasonable price.
(ii) Prohibition
Except as provided in subparagraph (B), a producer who
produces a crop on a farm located in a county described in
clause (i) may not obtain an assigned yield.
(B) Exception
A crop or a producer shall not be subject to this subsection
if--
(i) the planted acreage of the producer for the crop has
been inspected by a third party acceptable to the Secretary;
or
(ii)(I) the County Executive Director and the State
Executive Director recommend an exemption from the
requirement to the Administrator of the Agency; and
(II) the Administrator approves the recommendation.
(5) Limitation on receipt of subsequent assigned yield
A producer who receives an assigned yield for the current year
of a natural disaster because required production records were not
submitted to the local office of the Department shall not be
eligible for an assigned yield for the year of the next natural
disaster unless the required production records of the previous 1 or
more years (as applicable) are provided to the local office.
(6) Yield variations due to different farming practices
The Secretary shall ensure that noninsured crop disaster
assistance accurately reflects significant yield variations due to
different farming practices, such as between irrigated and
nonirrigated acreage.
(f) Contract payments
A producer who has received a guaranteed payment for production, as
opposed to delivery, of a crop pursuant to a contract shall have the
production of the producer adjusted upward by the amount of the
production equal to the amount of the contract payment received.
(g) Use of Commodity Credit Corporation
The Secretary may use the funds of the Commodity Credit Corporation
to carry out this section.
(h) Exclusions
Noninsured crop disaster assistance under this section shall not
cover losses due to--
(1) the neglect or malfeasance of the producer;
(2) the failure of the producer to reseed to the same crop in
those areas and under such circumstances where it is customary to
reseed; or
(3) the failure of the producer to follow good farming
practices, as determined by the Secretary.
(i) Payment and income limitations
(1) Definitions
In this subsection:
(A) Person
The term ``person'' has the meaning provided the term in
regulations issued by the Secretary. The regulations shall
conform, to the extent practicable, to the regulations defining
the term ``person'' issued under section 1308 of this title.
(B) Qualifying gross revenues
The term ``qualifying gross revenues'' means--
(i) if a majority of the gross revenue of the person is
received from farming, ranching, and forestry operations,
the gross revenue from the farming, ranching, and forestry
operations of the person; and
(ii) if less than a majority of the gross revenue of the
person is received from farming, ranching, and forestry
operations, the gross revenue of the person from all
sources.
(2) Payment limitation
The total amount of payments that a person shall be entitled to
receive annually under this section may not exceed $100,000.
(3) Limitation on multiple benefits for same loss
(A) In general
Except as provided in subparagraph (B), if a producer who is
eligible to receive benefits under this section is also eligible
to receive assistance for the same loss under any other program
administered by the Secretary, the producer shall be required to
elect whether to receive benefits under this section or under
the other program, but not both.
(B) Exception
Subparagraph (A) shall not apply to emergency loans under
subtitle C of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961 et seq.).
(4) Income limitation
A person who has qualifying gross revenues in excess of the
amount specified in section 2266(a) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) (as in
effect on November 28, 1990) during the taxable year (as determined
by the Secretary) shall not be eligible to receive any noninsured
assistance payment under this section.
(5) Regulations
The Secretary shall issue regulations prescribing such rules as
the Secretary determines necessary to ensure a fair and equitable
application of section 1308 of this title, the general payment
limitation regulations of the Secretary, and the limitations
established under this subsection.
(j) Omitted
(k) Service fee
(1) In general
To be eligible to receive assistance for an eligible crop for a
crop year under this section, a producer shall pay to the Secretary
(at the time at which the producer submits the application under
subsection (b)(1) of this section) a service fee for the eligible
crop in an amount that is equal to the lesser of--
(A) $100 per crop per county; or
(B) $300 per producer per county, but not to exceed a total
of $900 per producer.
(2) Waiver
The Secretary shall waive the service fee required under
paragraph (1) in the case of a limited resource farmer, as defined
by the Secretary.
(3) Use
The Secretary shall deposit service fees collected under this
subsection in the Commodity Credit Corporation Fund.
(Pub. L. 104-127, title I, Sec. 196, Apr. 4, 1996, 110 Stat. 947; Pub.
L. 105-277, div. A, Sec. 101(a) [title VIII, Sec. 803(b)], Oct. 21,
1998, 112 Stat. 2681, 2681-38; Pub. L. 106-224, title I, Sec. 109, June
20, 2000, 114 Stat. 371; Pub. L. 107-171, title X, Sec. 10101, May 13,
2002, 116 Stat. 488.)
References in Text
The Consolidated Farm and Rural Development Act, referred to in
subsec. (i)(3)(B), is title III of Pub. L. 87-128, Aug. 8, 1961, 75
Stat. 307, as amended. Subtitle C of the Act is classified generally to
subchapter III (Sec. 1961 et seq.) of chapter 50 of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 1921 of this title and Tables.
Section 2266(a) of the Food, Agriculture, Conservation, and Trade
Act of 1990, referred to in subsec. (i)(4), is section 2266(a) of Pub.
L. 101-624, which was set out in a note under section 1421 of this
title, prior to repeal by Pub. L. 103-354, title I, Sec. 119(c), Oct.
13, 1994, 108 Stat. 3208.
Codification
Section is comprised of section 196 of Pub. L. 104-127. Subsec. (j)
of section 196 of Pub. L. 104-127 repealed section 1519 of this title.
Amendments
2002--Subsec. (a)(2)(B). Pub. L. 107-171 inserted ``sea grass and
sea oats,'' after ``fish),''.
2000--Subsec. (a)(2)(C). Pub. L. 106-224, Sec. 109(a), added subpar.
(C).
Subsec. (b)(1). Pub. L. 106-224, Sec. 109(b), substituted ``not
later than 30 days before the beginning of the coverage period, as
determined by the Secretary'' for ``at such time as the Secretary may
require'' in second sentence.
Subsec. (b)(2). Pub. L. 106-224, Sec. 109(c)(1), added par. (2) and
struck out heading and text of former par. (2). Text read as follows:
``A producer shall provide records, as required by the Secretary, of
crop acreage, acreage yields, and production.''
Subsec. (b)(3). Pub. L. 106-224, Sec. 109(c)(2), inserted ``annual''
after ``shall provide''.
Subsec. (c). Pub. L. 106-224, Sec. 109(d), added subsec. (c) and
struck out heading and text of former subsec. (c), which authorized
noninsured crop disaster assistance if average yield fell below 65
percent of expected yield, if producer was prevented from planting more
than 35 percent of intended acreage, or if total quantity of harvest was
less than 50 percent of expected yield.
Subsec. (k). Pub. L. 106-224, Sec. 109(e), added subsec. (k).
1998-Subsec. (i)(3). Pub. L. 105-277 designated existing provisions
as subpar. (A), inserted heading, substituted ``Except as provided in
subparagraph (B), if a producer'' for ``If a producer'', and added
subpar. (B).
Effective Date of 2000 Amendment
Amendment by Pub. L. 106-224 applicable beginning with the 2001 crop
of an agricultural commodity, see section 171(b)(2)(G) of Pub. L. 106-
224, set out as a note under section 1501 of this title.
Savings Clause
Section as in effect on day before June 20, 2000, to continue to
apply with respect to 1999 crop year, and to apply with respect to 2000
crop year, to extent application of an amendment by Pub. L. 106-224 is
delayed under section 171(b) or by terms of the amendment, see section
173 of Pub. L. 106-224, set out as a note under section 1501 of this
title.
Section Referred to in Other Sections
This section is referred to in sections 1506, 1508a, 1515, 1522,
7936 of this title.
