§7914 Availability of Counter-cyclical Payments

Summary

The Secretary must pay counter‑cyclical payments for each covered commodity for the 2002 through 2007 crop years to producers on farms that have payment yields and base acres when the effective price is below the target price. The effective price equals the higher of (a) the national average market price for the 12‑month marketing year or (b) the national average loan rate, plus the direct‑payment rate in effect. The payment rate equals the target price minus the effective price. Target prices are: 2002–2003 — wheat $3.86/bu, corn $2.60/bu, grain sorghum $2.54/bu, barley $2.21/bu, oats $1.40/bu, upland cotton $0.7240/lb, rice $10.50/cwt, soybeans $5.80/bu, other oilseeds $0.0980/lb; 2004–2007 — wheat $3.92/bu, corn $2.63/bu, grain sorghum $2.57/bu, barley $2.24/bu, oats $1.44/bu, upland cotton $0.7240/lb, rice $10.50/cwt, soybeans $5.80/bu, other oilseeds $0.1010/lb. The payment to a farm equals the payment rate times the farm’s payment acres times the farm’s payment yield (or updated yield if chosen). Payments are made as soon as possible after the 12‑month marketing year ends. If the Secretary estimates a payment will be needed, producers may choose partial payments before year‑end. For 2002–2006 the first partial payment is made Oct 1–31 of harvest year (up to 35% of the projected payment), a second payment no earlier than Feb 1 of the next year (so total partials do not exceed 70% of the projected payment), and a final payment after the marketing year ends to make up the remainder. For 2007 the first partial (after the first 6 months of the marketing year) may be up to 40%, with the final payment made after the marketing year ends. If partial payments end up larger than the actual payment, producers must repay the excess.