7 U.S.C. § 7936: Payments in lieu of loan…

Summary

From 2002 through 2007, the Agriculture Department must pay a farmer who decides to use land planted with wheat, barley, oats, or triticale for grazing instead of harvesting, as long as the farmer signs an agreement not to harvest that crop on those acres. The payment equals the county loan-deficiency rate in effect on the agreement date multiplied by the acres grazed and by the farm’s payment yield used for direct payments; if the farm has no payment yield, the Department will set an appropriate yield. For triticale, the wheat rate and wheat payment yield are used. Payments are made the same way and at the same time as loan-deficiency payments, and the Department will set the period when farmers can get the payments to match the marketing-assistance loan timing for those crops. Any crop grazed under such an agreement for 2002–2007 cannot get a federal crop insurance payout or noninsured crop disaster assistance.

Title 7, §7936

Agriculture, Source: USLM XML via OLRC

(a)Eligible producers

(1)In general

Effective for the 2002 through 2007 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 7935 of this title for wheat, barley, or oats, but that elects to use acreage planted to the wheat, barley, or oats for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of the wheat, barley, or oats on that acreage.

(2)Grazing of triticale acreage

Effective for the 2002 through 2007 crop years, with respect to a producer on a farm that uses acreage planted to triticale for the grazing of livestock, the Secretary shall make a payment to the producer under this section if the producer enters into an agreement with the Secretary to forgo any other harvesting of triticale on that acreage.

(b)Payment amount

(1)In general

The amount of a payment made under this section to a producer on a farm described in subsection (a)(1) shall be equal to the amount determined by multiplying—

(A)the loan deficiency payment rate determined under section 7935(c) of this title in effect, as of the date of the agreement, for the county in which the farm is located; by

(B)the payment quantity determined by multiplying—

(i)the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of wheat, barley, or oats; and

(ii)the payment yield in effect for the calculation of direct payments under subchapter I with respect to that loan commodity on the farm or, in the case of a farm without a payment yield for that loan commodity, an appropriate yield established by the Secretary in a manner consistent with section 7912(c) of this title.

(2)Grazing of triticale acreage

The amount of a payment made under this section to a producer on a farm described in subsection (a)(2) shall be equal to the amount determined by multiplying—

(A)the loan deficiency payment rate determined under section 7935(c) of this title in effect for wheat, as of the date of the agreement, for the county in which the farm is located; by

(B)the payment quantity determined by multiplying—

(i)the quantity of the grazed acreage on the farm with respect to which the producer elects to forgo harvesting of triticale; and

(ii)the payment yield in effect for the calculation of direct payments under subchapter I with respect to wheat on the farm or, in the case of a farm without a payment yield for wheat, an appropriate yield established by the Secretary in a manner consistent with section 7912(c) of this title.

(c)Time, manner, and availability of payment

(1)Time and manner

A payment under this section shall be made at the same time and in the same manner as loan deficiency payments are made under section 7935 of this title.

(2)Availability

The Secretary shall establish an availability period for the payments authorized by this section. In the case of wheat, barley, and oats, the availability period shall be consistent with the availability period for the commodity established by the Secretary for marketing assistance loans authorized by this subchapter.

(d)Prohibition on crop insurance indemnity or noninsured crop assistance

A 2002 through 2007 crop of wheat, barley, oats, or triticale planted on acreage that a producer elects, in the agreement required by subsection (a), to use for the grazing of livestock in lieu of any other harvesting of the crop shall not be eligible for an indemnity under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop assistance under section 7333 of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in subsec. (c)(2), was in the original “this subtitle”, meaning subtitle B (§§ 1201–1209) of title I of Pub. L. 107–171, May 13, 2002, 116 Stat. 155, which is classified principally to this subchapter. For complete classification of subtitle B to the Code, see Tables. The Federal Crop Insurance Act, referred to in subsec. (d), is subtitle A of title V of act Feb. 16, 1938, ch. 30, 52 Stat. 72, which is classified generally to subchapter I (§ 1501 et seq.) of chapter 36 of this title. For complete classification of this Act to the Code, see section 1501 of this title and Tables.

§7936 Payments in Lieu of Loan Deficiency Payments for Grazed Acreage

Summary

Title 7, §7936

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata