§ 1445j. — Deficiency and land diversion payments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1445j]
TITLE 7--AGRICULTURE
CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
SUBCHAPTER II--BASIC AGRICULTURAL COMMODITIES
Sec. 1445j. Deficiency and land diversion payments
(a) Deficiency payments
(1) In general
If 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 conditions
Advance deficiency payments under paragraph (1) shall be made to
the producer under the following terms and conditions:
(A) Form
Such 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 certificates
If 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) Maturity
Such a certificate shall be redeemable for a period not to
exceed 3 years from the date the certificate is issued.
(D) Storage
The 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) Timing
The 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) Amounts
The 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) Repayment
If 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 requirement
If 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) Deadline
Any 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) Noncompliance
If 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) Regulations
The Secretary may issue such regulations as the Secretary
determines necessary to carry out this section.
(4) Commodity Credit Corporation
The Secretary shall carry out the program authorized by this
section through the Commodity Credit Corporation.
(5) Additional authority
The 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, Sec. 171(b)(2)(G), Apr. 4,
1996, 110 Stat. 938
(Oct. 31, 1949, ch. 792, title I, Sec. 114, formerly Sec. 107C, as added
Pub. L. 97-253, title I, Sec. 120, Sept. 8, 1982, 96 Stat. 766; amended
Pub. L. 99-198, title X, Sec. 1002, Dec. 23, 1985, 99 Stat. 1446; Pub.
L. 100-203, title I, Sec. 1110, Dec. 22, 1987, 101 Stat. 1330-6; Pub. L.
101-239, title I, Sec. 1003(b)(1), Dec. 19, 1989, 103 Stat. 2108; Pub.
L. 101-508, title I, Sec. 1102(d), Nov. 5, 1990, 104 Stat. 1388-2;
renumbered Sec. 114 and amended Pub. L. 101-624, title XI,
Secs. 1121(a), (c), 1161(a)(1), Nov. 28, 1990, 104 Stat. 3500, 3503,
3520; Pub. L. 102-237, title I, Sec. 109, Dec. 13, 1991, 105 Stat. 1828;
Pub. L. 103-66, title I, Sec. 1101(b)(1), Aug. 10, 1993, 107 Stat. 314;
Pub. L. 104-127, title I, Sec. 171(b)(2)(G), Apr. 4, 1996, 110 Stat.
938.)
References in Text
This Act, referred to in subsec. (a)(1), (2)(G), (H), is act Oct.
31, 1949, ch. 792, 63 Stat. 1051, as amended, known as the Agricultural
Act of 1949, which is classified principally to this chapter (Sec. 1421
et seq.). For complete classification of this Act to the Code, see Short
Title note set out under section 1421 of this title and Tables.
Codification
Section was classified to section 1445b-2 of this title prior to its
renumbering by Pub. L. 101-624.
Amendments
1996--Subsecs. (b), (c). Pub. L. 104-127 struck out subsecs. (b) and
(c) which, in subsec. (b), related to land diversion payments to assist
in adjusting total national acreage of any of 1991 through 1995 crops of
wheat, feed grains, upland cotton, or rice to desirable levels, and, in
subsec. (c), related to timing of deficiency payments made available to
producers for any of 1991 through 1997 crops of wheat and feed grains.
1993--Subsecs. (a)(1), (c). Pub. L. 103-66 substituted ``1997'' for
``1995''.
1991--Subsec. (c). Pub. L. 102-237, Sec. 109(1), substituted
``section'' for ``sections'' in introductory provisions.
Subsec. (c)(2). Pub. L. 102-237, Sec. 109(3), added par. (2) and
struck out former par. (2) which read as follows: ``Seventy-five percent
of the final projected deficiency payment for the crop, reduced by the
amount of the advance, shall be made available as soon as practicable
after the end of the first 5 months of the applicable marketing year.''
Subsec. (c)(3), (4). Pub. L. 102-237, Sec. 109(2), (3), added par.
(3) and redesignated former par. (3) as (4).
1990--Pub. L. 101-624, Sec. 1121(a), amended section generally,
substituting provisions relating to deficiency and land diversion
payments for the 1991 through 1995 crops of wheat, feed grains, upland
cotton, and rice for provisions relating to advance deficiency and
diversion payments for the 1986 through 1990 crops of wheat, feed
grains, upland cotton, and rice.
Pub. L. 101-624, Sec. 1121(c), amended Pub. L. 99-198. See 1985
Amendment note below.
Subsec. (c). Pub. L. 101-508 substituted ``wheat and feed grains
which payments are calculated as provided in sections 1445b-
3a(c)(1)(B)(ii), 1445b-3a(p), or 1444f(c)(1)(B)(ii) of this title'' for
``wheat, feed grains, and rice which payments are calculated on the
basis of the national weighted average market price (or, in the case of
rice, the national average market price) for the marketing year for the
crop''.
1989--Subsec. (a)(2)(G). Pub. L. 101-239 temporarily inserted
``(taking into consideration any reduction in the payment made under
section 1433d of this title)'' and substituted ``amount finally'' for
``amount finallly''. See Effective and Termination Dates of 1989
Amendment note below.
1987--Subsec. (a)(1). Pub. L. 100-203, Sec. 1110(1), temporarily
added par. (1) and struck out former par. (1) which read as follows:
``If the Secretary establishes an acreage limitation or set-aside
program for any of the 1986 through 1990 crops of wheat, feed grains,
upland cotton, or rice under this Act and determines that deficiency
payments will likely be made for such commodity for such crop, the
Secretary--
``(A) shall make advance deficiency payments available to
producres [sic] who agree to participate in such program for the
1986 crop; and
``(B) may make such payments available to such producers for
each of the 1987 through 1990 crops.''
See Effective and Termination Dates of 1987 Amendment note below.
Subsec. (a)(2)(F)(iii). Pub. L. 100-203, Sec. 1110(2), temporarily
added cl. (iii) and struck out former cl. (iii) which read as follows:
``50 percent of the projected payment rate,''. See Effective and
Termination Dates of 1987 Amendment note below.
1985--Pub. L. 99-198, as amended by Pub. L. 101-624, Sec. 1121(c),
amended section generally, substituting provisions relating to advance
deficiency and diversion payments for the 1986 through 1990 crops of
wheat, feed grains, upland cotton and rice for provisions relating to
advance deficiency payments for the 1982 through 1985 crops of wheat,
feed grains, upland cotton and rice.
Effective Date of 1990 Amendments
Amendment by Pub. L. 101-624 effective beginning with 1991 crop of
an agricultural commodity, with provision for prior crops, see section
1171 of Pub. L. 101-624, set out as a note under section 1421 of this
title.
Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section
1301 of Pub. L. 101-508, set out as a note under section 511r of this
title.
Effective and Termination Dates of 1989 Amendment
Section 1003(b)(1) of Pub. L. 101-239 provided that the amendment
made by that section is effective only for 1990 crops of wheat, feed
grains, upland cotton, and rice.
Effective and Termination Dates of 1987 Amendment
Section 1110 of Pub. L. 100-203 provided that the amendment made by
that section is effective only for 1988 through 1990 crops of wheat,
feed grains, upland cotton, and rice.
Effective and Termination Dates of 1985 Amendment
That portion of section 1002 of Pub. L. 99-198 which provided that
the amendment made by that section was effective only for 1986 through
1990 crops of wheat, feed grains, upland cotton, and rice, was struck
out by section 1121(c) of Pub. L. 101-624.
Effective and Termination Dates
Section 120 of Pub. L. 97-253 provided that this section is
effective only for 1982 through 1985 crops of wheat, feed grains, upland
cotton, and rice.
Calculation of Refunds of Advance Established Price Payments by
Producers of 1988 or 1989 Crops of Feed Barley
Section 405 of Pub. L. 101-624 provided that:
``(a) Mandatory Calculation of Refund.--
``(1) In general.--Not later than 90 days after the date of
enactment of this Act [Nov. 28, 1990], the Secretary of Agriculture
shall calculate, for informational purposes only (except as provided
in the discretionary authority under subsection (b)), the amount of
the refund of any advance deficiency payment a producer of barley
who participated in the 1988 or 1989 Federal barley price support
program would be required to make pursuant to section 107C of the
Agricultural Act of 1949 (7 U.S.C. 1445b-2) (as it existed
immediately before the date of enactment of this Act) based on a
formula which excludes malting barley from the market price
calculations of barley used to determine the amount of refund of the
advance deficiency payment required of the producer.
``(2) Disclosure.--
``(A) To the public.--The Secretary shall publish in the
Federal Register--
``(i) the formula used to perform the calculations
described in paragraph (1);
``(ii) the aggregate results that the use of the
calculation would have pursuant to subsection (b), in terms
of--
``(I) the total reduction in the amount of refunds;
``(II) the number of producers affected; and
``(III) any other information the Secretary determines
appropriate;
``(iii) a declaration of the Secretary's decision
whether to use the calculation to recalculate barley
producer's refunds pursuant to subsection (b); and
``(iv) a statement of the Secretary's reasons for the
decision described in clause (iii).
``(B) To producers.--The Secretary shall make available to
each producer of 1988 or 1989 crop barley, on request, a
statement detailing the effect of the calculation of refunds
described in paragraph (1) on the producer's 1988 or 1989
refund.
``(b) Discretionary Use of Calculation.--
``(1) In general.--The Secretary may use the calculation
described in subsection (a) to determine whether or not to reduce
the total refund owed by a producer of 1988 or 1989 crop barley
under section 107C of the Agricultural Act of 1949 [7 U.S.C. 1445b-
2] (as it existed immediately before the date of enactment of this
Act [Nov. 28, 1990]).
``(2) Procedure for use of calculation.--If the Secretary
decides to use the calculation described in subsection (a) as
provided under paragraph (1), in the case of a producer of 1988 or
1989 crop barley who paid the refund of the advance deficiency
payment for the crop calculated prior to the date of enactment of
this Act (or any amount of refund in excess of the amount of the
refund determined in accordance with paragraph (1)), the Secretary--
``(i) shall, before May 31, 1991, reimburse the producer the
amount of refund paid by the producer in excess of the refund
determined in accordance with this section;
``(ii) shall have the option to make the reimbursement in a
lump sum or in installments;
``(iii) shall, not later than 90 days after the date of
enactment of this Act, notify producers who are eligible to
receive the reimbursement of their 1988 or 1989 advance
deficiency payment refund under this section--
``(I) of the timing of the payment of the reimbursement
(either in lump sum or in installments);
``(II) that the amount of the reimbursement shall not
bear interest if paid before February 15, 1991; and
``(III) that the amount of the reimbursement paid after
February 15, 1991, shall bear interest at a rate of at least
7 percent per annum; and
``(iv) may elect to pay the reimbursement in a lump sum with
generic certificates redeemable for commodities owned by the
Commodity Credit Corporation if the reimbursement is paid in
full not later than 60 days after the date of enactment of this
Act.''
Repayment Requirements
Section 1121(b) of Pub. L. 101-624 provided that:
``(1) In general.--Notwithstanding any other provision of law,
effective only for producers who are suffering financial hardship, as
determined by the Secretary, on a farm who received an advance
deficiency payment for the 1988 or 1989 crop of a commodity and are
otherwise described in paragraph (2), the Secretary of Agriculture--
``(A) shall not charge an annual interest rate for any
delinquent refund for the advance deficiency payment in excess of
prevailing rates for operating loans made by Farm Credit System
institutions;
``(B) shall not withhold, in each of the 3 succeeding crop
years, more than \1/3\ of the farm program payments otherwise due to
the producers, as a result of any delinquency in providing the
refund; and
``(C) shall permit the producers to make the refund in three
equal installments during each of the crop years 1990, 1991, and
1992, if the producers enter into an agreement to obtain multiperil
crop insurance for each of the crop years, to the extent that the
Secretary determines is similar to section 107 of the Disaster
Assistance Act of 1989 (7 U.S.C. 1421 et seq.) [Sec. 107 of Pub. L.
101-82, 7 U.S.C. 1421 note].
``(2) Application.--This subparagraph shall apply if--
``(A) the producers received an advance deficiency payment for
the 1988 or 1989 crop of a commodity under section 107C(a) of the
Agricultural Act of 1949 (7 U.S.C. 1445b-2(a));
``(B) the producers are required to provide a refund of at least
$1,500 under subparagraph (G) or (H) of section 107C(a)(2) of such
Act with respect to the advance deficiency payments;
``(C) the producers reside in a county, or in a county that is
contiguous to a county, where the Secretary of Agriculture has found
that farming, ranching, or aquaculture operations have been
substantially affected as evidenced by a reduction in normal
production for the county of at least 30 percent during two of the
three crop years 1988, 1989, and 1990 by a natural disaster or by a
major disaster or emergency designated by the President under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121 et seq.); and
``(D) the total quantity of the 1988 or 1989 crop of the
commodity that the producers were able to harvest is less than the
result of multiplying 65 percent of the farm payment yield
established by the Secretary for the crop by the sum of the acreage
planted for the harvest and the acreage prevented from being planted
(because of the disaster or emergency referred to in subparagraph
(C)) for the crop.''
Advance Deficiency Payments
Pub. L. 99-509, title I, Sec. 1021, Oct. 21, 1986, 100 Stat. 1877,
required Secretary of Agriculture to make advance deficiency payments
available for 1987 crops of wheat, feed grains, upland cotton, and rice,
and provided that percentage of projected payment rate used in computing
such payments shall not be less than (1) 40 percent in the case of wheat
and feed grains, and (2) 30 percent in the case of rice and upland
cotton.
Section Referred to in Other Sections
This section is referred to in sections 7213, 7214, 7301 of this
title.
