Deficiency and land diversion payments

7 U.S.C. § 1445j
in effect
Sign in to generate a plain English summaryAsk Belisarius Agent
(a) Deficiency payments(1) In generalIf the Secretary establishes an acreage limitation program for any of the 1991 through 1997 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for the commodity for the crop, the Secretary shall make advance deficiency payments available to producers for each of the crops. (2) Terms and conditionsAdvance deficiency payments under paragraph (1) shall be made to the producer under the following terms and conditions:(A) FormSuch payments may be made available in the form of—(i) cash; (ii) commodities owned by the Commodity Credit Corporation and certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of the payments may be made in commodities or the certificates in the case of any producer; or (iii) any combination of clauses (i) and (ii). (B) Commodities and certificatesIf payments are made available to producers as provided for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of—(i) such commodities; or (ii) such certificates. (C) MaturitySuch a certificate shall be redeemable for a period not to exceed 3 years from the date the certificate is issued. (D) StorageThe Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is redeemed. (E) TimingThe payments shall be made available as soon as practicable after the producer enters into a contract with the Secretary to participate in such program. (F) AmountsThe payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate participation in the program, except that the amount may not exceed an amount determined by multiplying—(i) the estimated payment acreage for the crop; by (ii) the farm program payment yield for the crop; by (iii)(I) in the case of wheat and feed grains, not less than 40 percent, nor more than 50 percent, of the projected payment rate; and (II) in the case of rice and upland cotton, not less than 30 percent, nor more than 50 percent, of the projected payment rate, as determined by the Secretary. (G) RepaymentIf the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under this Act, is less than the amount paid to the producer as an advance deficiency payment for the crop under this subsection, the producer shall repay an amount equal to the difference between the amount advanced and the amount finally determined by the Secretary to be payable to the producer as a deficiency payment for the crop concerned. (H) Repayment requirementIf the Secretary determines under this Act that deficiency payments will not be made available to producers on a crop with respect to which advance deficiency payments already have been made under this subsection, the producers who received the advance payments shall repay the payments. (I) DeadlineAny repayment required under subparagraph (G) or (H) shall be due at the end of the marketing year for the crop with respect to which the payments were made. (J) NoncomplianceIf a producer fails to comply with requirements established under the acreage limitation program involved after obtaining an advance deficiency payment under this subsection, the producer shall repay immediately the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe by regulation. (3) RegulationsThe Secretary may issue such regulations as the Secretary determines necessary to carry out this section. (4) Commodity Credit CorporationThe Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation. (5) Additional authorityThe authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law. (b), (c) Repealed. Pub. L. 104–127, title I, § 171(b)(2)(G), Apr. 4, 1996, 110 Stat. 938

Starting a business? Corpus forms LLCs in all 50 states and DC.