§7954 Availability of Counter-cyclical Payments for Peanuts

Summary

From 2002 through 2007, the Secretary must make counter-cyclical payments for peanuts when the effective price is below $495 per ton. The effective price is the higher of (a) the national average market price for peanuts during the 12‑month marketing year or (b) the national average loan rate for peanuts, plus the direct payment rate set under section 7953. The payment rate equals $495 minus that effective price. For 2002, payments go to "historic peanut producers" (as identified in the law). For 2003–2007, payments go to the producers on farms that have payment yields and base acres assigned under section 7952. Payment amounts equal the payment rate times the payment acres times the applicable yield (for 2002, the historic producer’s average yield under section 7952; for 2003–2007, the farm’s payment yield). Payments must be made as soon as possible after the 12‑month marketing year ends. If an early estimate shows payments will be needed, producers may choose partial payments before the marketing year ends. For 2002–2006 the first partial payment may be made Oct 1–31 of harvest year, the second not earlier than Feb 1 of the next year, and the final payment after the marketing year ends. For 2007 the first partial payment comes after the first six months of the marketing year and the final after the year ends. For 2002–2006 the first partial may not exceed 35% of the projected payment, the second brings total up to 70%, and the final pays the remainder. For 2007 the first partial may not exceed 40% and the final pays the remainder. Any excess of partial payments over the actual payment must be repaid.