§7214 Determination of contract payments under contracts

Summary

Tell how to work out yearly contract payments for farm commodities. For each contract and each commodity, first find the payment quantity by multiplying 85 percent of the contract acreage by the farm program payment yield. Add those amounts for all contracts to get the total payment quantity for that commodity for the year. The payment rate for a commodity is the money made available under section 7213 divided by that total payment quantity. A contract’s payment equals, for each commodity in the contract, its payment quantity times its payment rate, added up. The contract payment must be reduced right away by any unpaid repayment required under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)); the Secretary must collect that amount when the payment is figured. Rules on assigning payments from section 590h(g) of title 16 apply, and the owner, producer, or assignee must tell the Secretary about any assignment as the contract requires. The Secretary must divide payments among owners and producers in a fair way.