§7214 Determination of Contract Payments Under Contracts

Summary

For each contract, figure the yearly payment quantity by multiplying 85 percent of the contract acreage by the farm program payment yield. Add those amounts from all contracts to get the total payment quantity for each commodity for the fiscal year. The payment rate for a commodity is the money made available under section 7213 for that commodity for the year divided by that total payment quantity. A contract’s payment for the year is the sum, over each commodity in the contract, of that contract’s payment quantity times the commodity’s payment rate. The contract payment must be immediately reduced by any unpaid repayment of deficiency payments required under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)), and the Secretary must collect that repayment when the contract payment is set. Rules in section 590h(g) of title 16 about assigning payments apply, and the assignor or assignee must give the Secretary notice as required. The Secretary must share payments among owners and producers in a fair and equitable way.