§8736 — Title 7 Agriculture | U.S. Code

Summary

From 2008 through 2012, a farmer who could get a loan deficiency payment for wheat, barley, or oats but instead uses those acres to graze livestock can get a payment if the farmer signs an agreement with the Secretary saying they will not harvest the crop on those acres. The same rule applies to triticale if the farmer agrees not to harvest it. The payment equals the county loan deficiency payment rate in effect on the agreement date multiplied by the number of grazed acres and the farm’s payment yield used for direct payments for that crop. For triticale, the wheat rate and wheat payment yield are used. If a farm has no payment yield, the Secretary must set an appropriate yield under section 7912. Payments are made at the same time and in the same way as loan deficiency payments, the Secretary sets an availability period (for wheat, barley, and oats it must match the marketing-assistance loan period), and acres covered by the agreement cannot get crop insurance indemnities or noninsured crop assistance under section 7333.

Title 7, §8736

Agriculture — Source: USLM XML via OLRC

(a)(1)Effective for the 2008 through 2012 crop years, in the case of a producer that would be eligible for a loan deficiency payment under section 8735 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)Effective for the 2008 through 2012 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)(1)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 8735(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 of this title.

(2)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 8735(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 of this title.

(c)(1)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 8735 of this title.

(2)(A)The Secretary shall establish an availability period for the payments authorized by this section.

(B)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)A 2008 through 2012 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 a policy or plan of insurance authorized 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

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. Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§8736 Payments in Lieu of Loan Deficiency Payments for Grazed Acreage