Title 7AgricultureRelease 119-73

§8783 Availability of quality incentive payments for covered oilseed producers

Title 7 › Chapter CHAPTER 113— - AGRICULTURAL COMMODITY SUPPORT PROGRAMS › Subchapter SUBCHAPTER V— - ADMINISTRATION › § 8783

Last updated Apr 6, 2026|Official source

Summary

Provides money, when funds are available, to pay bonuses to farmers who grow oilseed varieties that improve human health. The Secretary must pay only for varieties that the Secretary finds both healthier for people (for example, by cutting or removing the need to partially hydrogenate the oil for food use or by using new technology traits) and that face at least one barrier to being sold widely. When money is available for a crop year, the Secretary will ask for proposals. Proposals can cover more than one year and must explain the health benefit, the market barriers, the varieties, the base price and premiums, the incentive amount (no more than one‑third of any year’s premium), the payment period (no more than 4 years), and the target production and acres. The Secretary will approve proposals in a timely way, pay producers after proof that the premium was paid, run additional proposal rounds if money remains, prorate approvals if funds are smaller than requested, and protect confidential business information. A proponent who gets approval must guarantee the oilseed is used for the approved human‑food purpose. If it is not, the proponent must repay penalties: for an accidental failure, twice the government payment to the producer; otherwise up to twice the full value of the oilseeds. The Secretary can require documents to enforce these rules and can fine others who misuse restricted oilseeds, up to twice their value. Money was authorized as needed for fiscal years 2009 through 2012.

Full Legal Text

Title 7, §8783

Agriculture — Source: USLM XML via OLRC

(a)Subject to subsection (b) and the availability of appropriations under subsection (h), the Secretary shall use funds made available under subsection (h) to provide quality incentive payments for the production of oilseeds with specialized traits that enhance human health, as determined by the Secretary.
(b)The Secretary shall make payments under this section only for the production of an oilseed variety that has, as determined by the Secretary—
(1)been demonstrated to improve the health profile of the oilseed for use in human consumption by—
(A)reducing or eliminating the need to partially hydrogenate the oil derived from the oilseed for use in human consumption; or
(B)adopting new technology traits; and
(2)1 or more impediments to commercialization.
(c)(1)If funds are made available to carry out this section for a crop year, the Secretary shall issue a request for proposals for payments under this section.
(2)A proponent may submit a multiyear proposal for payments under this section.
(3)A proposal for payments under this section shall include a description of—
(A)how use of the oilseed enhances human health;
(B)the impediments to commercial use of the oilseed;
(C)each oilseed variety described in subsection (b) and the value of the oilseed variety as a matter of public policy;
(D)a range for the base price and premiums per bushel or hundredweight to be paid to producers;
(E)a per bushel or hundredweight amount of incentive payments requested for each year under this section that does not exceed ⅓ of the total premium offered for any year;
(F)the period of time, not to exceed 4 years, during which incentive payments are to be provided to producers; and
(G)the targeted total quantity of production and estimated acres needed to produce the targeted quantity for each year under this section.
(d)(1)The Secretary shall approve successful proposals submitted under subsection (c) on a timely basis.
(2)The Secretary shall make payments to producers under this section after the Secretary receives documentation that the premium required under a contract has been paid to covered producers.
(e)(1)If funding provided for a crop year is not fully allocated under the initial request for proposals under subsection (c), the Secretary shall issue additional requests for proposals for subsequent crop years under this section.
(2)If funding provided for a crop year is less than the amount otherwise approved by the Secretary or for which approval is sought, the Secretary shall prorate the payments or approvals in a manner determined by the Secretary so that the total payments do not exceed the funding level.
(f)The Secretary shall protect proprietary information provided to the Secretary for the purpose of administering this section.
(g)(1)The proponent, if approved, shall be required to guarantee that the oilseed on which a payment is made by the Secretary under this section is used for human consumption as described in the proposal, as approved by the Secretary.
(2)If oilseeds on which a payment is made by the Secretary under this section are not actually used for the purpose the payment is made, the proponent shall be required to pay to the Secretary an amount equal to, as determined by the Secretary—
(A)in the case of an inadvertent failure, twice the amount of the payment made by the Secretary under this section to the producer of the oilseeds; and
(B)in any other case, up to twice the full value of the oilseeds involved.
(3)The Secretary may require such assurances and documentation as may be needed to enforce the guarantee.
(4)(A)In addition to payments required under paragraph (2), the Secretary may impose penalties on additional persons that use oilseeds the use of which is restricted under this section for a purpose other than the intended use.
(B)The amount of a penalty under this paragraph shall—
(i)be in an amount determined appropriated by the Secretary; but
(ii)not to exceed twice the full value of the oilseeds.
(h)There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2009 through 2012.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 8783

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73