§7214 Determination of Contract Payments Under Contracts

Summary

Tells how to figure yearly contract payments for farm commodities. For each contract, first find the payment quantity by multiplying 85 percent of the contract acreage by the farm program payment yield. Add those amounts across all contracts to get the total payment quantity for each commodity. The payment rate for a commodity equals the money made available under section 7213 for that commodity divided by that total quantity. A contract’s payment equals the sum, for each commodity in the contract, of its payment quantity times its payment rate. Any required repayment under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) that is still unpaid must be taken out of the contract payment, and the Secretary must collect it when payments are set. Rules about assigning payments follow section 590h(g) of title 16, and owners or assignees must tell the Secretary as the contract requires. The Secretary must divide payments fairly among the owners and producers on the contract.