
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC1445j]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 35A--PRICE SUPPORT OF AGRICULTURAL COMMODITIES
 
              SUBCHAPTER II--BASIC AGRICULTURAL COMMODITIES
 
Sec. 1445j. Deficiency and land diversion payments


(a) Deficiency payments

                           (1) In general

        If the Secretary establishes an acreage limitation program for 
    any of the 1991 through 1997 crops of wheat, feed grains, upland 
    cotton, or rice under this Act and determines that deficiency 
    payments will likely be made for the commodity for the crop, the 
    Secretary shall make advance deficiency payments available to 
    producers for each of the crops.

                      (2) Terms and conditions

        Advance deficiency payments under paragraph (1) shall be made to 
    the producer under the following terms and conditions:

        (A) Form

            Such payments may be made available in the form of--
                (i) cash;
                (ii) commodities owned by the Commodity Credit 
            Corporation and certificates redeemable in a commodity owned 
            by the Commodity Credit Corporation, except that not more 
            than 50 percent of the payments may be made in commodities 
            or the certificates in the case of any producer; or
                (iii) any combination of clauses (i) and (ii).

        (B) Commodities and certificates

            If payments are made available to producers as provided for 
        under subparagraph (A)(ii), such producers may elect to receive 
        such payments either in the form of--
                (i) such commodities; or
                (ii) such certificates.

        (C) Maturity

            Such a certificate shall be redeemable for a period not to 
        exceed 3 years from the date the certificate is issued.

        (D) Storage

            The Commodity Credit Corporation shall pay the cost of 
        storing a commodity that may be received under such a 
        certificate until such time as the certificate is redeemed.

        (E) Timing

            The payments shall be made available as soon as practicable 
        after the producer enters into a contract with the Secretary to 
        participate in such program.

        (F) Amounts

            The payments shall be made available in such amounts as the 
        Secretary determines appropriate to encourage adequate 
        participation in the program, except that the amount may not 
        exceed an amount determined by multiplying--
                (i) the estimated payment acreage for the crop; by
                (ii) the farm program payment yield for the crop; by
                (iii)(I) in the case of wheat and feed grains, not less 
            than 40 percent, nor more than 50 percent, of the projected 
            payment rate; and
                (II) in the case of rice and upland cotton, not less 
            than 30 percent, nor more than 50 percent, of the projected 
            payment rate,

        as determined by the Secretary.

        (G) Repayment

            If the deficiency payment payable to a producer for a crop, 
        as finally determined by the Secretary under this Act, is less 
        than the amount paid to the producer as an advance deficiency 
        payment for the crop under this subsection, the producer shall 
        repay an amount equal to the difference between the amount 
        advanced and the amount finally determined by the Secretary to 
        be payable to the producer as a deficiency payment for the crop 
        concerned.

        (H) Repayment requirement

            If the Secretary determines under this Act that deficiency 
        payments will not be made available to producers on a crop with 
        respect to which advance deficiency payments already have been 
        made under this subsection, the producers who received the 
        advance payments shall repay the payments.

        (I) Deadline

            Any repayment required under subparagraph (G) or (H) shall 
        be due at the end of the marketing year for the crop with 
        respect to which the payments were made.

        (J) Noncompliance

            If a producer fails to comply with requirements established 
        under the acreage limitation program involved after obtaining an 
        advance deficiency payment under this subsection, the producer 
        shall repay immediately the amount of the advance, plus interest 
        thereon in such amount as the Secretary shall prescribe by 
        regulation.

                           (3) Regulations

        The Secretary may issue such regulations as the Secretary 
    determines necessary to carry out this section.

                  (4) Commodity Credit Corporation

        The Secretary shall carry out the program authorized by this 
    section through the Commodity Credit Corporation.

                      (5) Additional authority

        The authority provided in this section shall be in addition to, 
    and not in place of, any authority granted to the Secretary or the 
    Commodity Credit Corporation under any other provision of law.

(b), (c) Repealed. Pub. L. 104-127, title I, Sec. 171(b)(2)(G), Apr. 4, 
        1996, 110 Stat. 938

(Oct. 31, 1949, ch. 792, title I, Sec. 114, formerly Sec. 107C, as added 
Pub. L. 97-253, title I, Sec. 120, Sept. 8, 1982, 96 Stat. 766; amended 
Pub. L. 99-198, title X, Sec. 1002, Dec. 23, 1985, 99 Stat. 1446; Pub. 
L. 100-203, title I, Sec. 1110, Dec. 22, 1987, 101 Stat. 1330-6; Pub. L. 
101-239, title I, Sec. 1003(b)(1), Dec. 19, 1989, 103 Stat. 2108; Pub. 
L. 101-508, title I, Sec. 1102(d), Nov. 5, 1990, 104 Stat. 1388-2; 
renumbered Sec. 114 and amended Pub. L. 101-624, title XI, 
Secs. 1121(a), (c), 1161(a)(1), Nov. 28, 1990, 104 Stat. 3500, 3503, 
3520; Pub. L. 102-237, title I, Sec. 109, Dec. 13, 1991, 105 Stat. 1828; 
Pub. L. 103-66, title I, Sec. 1101(b)(1), Aug. 10, 1993, 107 Stat. 314; 
Pub. L. 104-127, title I, Sec. 171(b)(2)(G), Apr. 4, 1996, 110 Stat. 
938.)

                       References in Text

    This Act, referred to in subsec. (a)(1), (2)(G), (H), is act Oct. 
31, 1949, ch. 792, 63 Stat. 1051, as amended, known as the Agricultural 
Act of 1949, which is classified principally to this chapter (Sec. 1421 
et seq.). For complete classification of this Act to the Code, see Short 
Title note set out under section 1421 of this title and Tables.

                          Codification

    Section was classified to section 1445b-2 of this title prior to its 
renumbering by Pub. L. 101-624.


                               Amendments

    1996--Subsecs. (b), (c). Pub. L. 104-127 struck out subsecs. (b) and 
(c) which, in subsec. (b), related to land diversion payments to assist 
in adjusting total national acreage of any of 1991 through 1995 crops of 
wheat, feed grains, upland cotton, or rice to desirable levels, and, in 
subsec. (c), related to timing of deficiency payments made available to 
producers for any of 1991 through 1997 crops of wheat and feed grains.
    1993--Subsecs. (a)(1), (c). Pub. L. 103-66 substituted ``1997'' for 
``1995''.
    1991--Subsec. (c). Pub. L. 102-237, Sec. 109(1), substituted 
``section'' for ``sections'' in introductory provisions.
    Subsec. (c)(2). Pub. L. 102-237, Sec. 109(3), added par. (2) and 
struck out former par. (2) which read as follows: ``Seventy-five percent 
of the final projected deficiency payment for the crop, reduced by the 
amount of the advance, shall be made available as soon as practicable 
after the end of the first 5 months of the applicable marketing year.''
    Subsec. (c)(3), (4). Pub. L. 102-237, Sec. 109(2), (3), added par. 
(3) and redesignated former par. (3) as (4).
    1990--Pub. L. 101-624, Sec. 1121(a), amended section generally, 
substituting provisions relating to deficiency and land diversion 
payments for the 1991 through 1995 crops of wheat, feed grains, upland 
cotton, and rice for provisions relating to advance deficiency and 
diversion payments for the 1986 through 1990 crops of wheat, feed 
grains, upland cotton, and rice.
    Pub. L. 101-624, Sec. 1121(c), amended Pub. L. 99-198. See 1985 
Amendment note below.
    Subsec. (c). Pub. L. 101-508 substituted ``wheat and feed grains 
which payments are calculated as provided in sections 1445b-
3a(c)(1)(B)(ii), 1445b-3a(p), or 1444f(c)(1)(B)(ii) of this title'' for 
``wheat, feed grains, and rice which payments are calculated on the 
basis of the national weighted average market price (or, in the case of 
rice, the national average market price) for the marketing year for the 
crop''.
    1989--Subsec. (a)(2)(G). Pub. L. 101-239 temporarily inserted 
``(taking into consideration any reduction in the payment made under 
section 1433d of this title)'' and substituted ``amount finally'' for 
``amount finallly''. See Effective and Termination Dates of 1989 
Amendment note below.
    1987--Subsec. (a)(1). Pub. L. 100-203, Sec. 1110(1), temporarily 
added par. (1) and struck out former par. (1) which read as follows: 
``If the Secretary establishes an acreage limitation or set-aside 
program for any of the 1986 through 1990 crops of wheat, feed grains, 
upland cotton, or rice under this Act and determines that deficiency 
payments will likely be made for such commodity for such crop, the 
Secretary--
        ``(A) shall make advance deficiency payments available to 
    producres [sic] who agree to participate in such program for the 
    1986 crop; and
        ``(B) may make such payments available to such producers for 
    each of the 1987 through 1990 crops.''
See Effective and Termination Dates of 1987 Amendment note below.
    Subsec. (a)(2)(F)(iii). Pub. L. 100-203, Sec. 1110(2), temporarily 
added cl. (iii) and struck out former cl. (iii) which read as follows: 
``50 percent of the projected payment rate,''. See Effective and 
Termination Dates of 1987 Amendment note below.
    1985--Pub. L. 99-198, as amended by Pub. L. 101-624, Sec. 1121(c), 
amended section generally, substituting provisions relating to advance 
deficiency and diversion payments for the 1986 through 1990 crops of 
wheat, feed grains, upland cotton and rice for provisions relating to 
advance deficiency payments for the 1982 through 1985 crops of wheat, 
feed grains, upland cotton and rice.


                    Effective Date of 1990 Amendments

    Amendment by Pub. L. 101-624 effective beginning with 1991 crop of 
an agricultural commodity, with provision for prior crops, see section 
1171 of Pub. L. 101-624, set out as a note under section 1421 of this 
title.
    Amendment by Pub. L. 101-508 effective Nov. 29, 1990, see section 
1301 of Pub. L. 101-508, set out as a note under section 511r of this 
title.


            Effective and Termination Dates of 1989 Amendment

    Section 1003(b)(1) of Pub. L. 101-239 provided that the amendment 
made by that section is effective only for 1990 crops of wheat, feed 
grains, upland cotton, and rice.


            Effective and Termination Dates of 1987 Amendment

    Section 1110 of Pub. L. 100-203 provided that the amendment made by 
that section is effective only for 1988 through 1990 crops of wheat, 
feed grains, upland cotton, and rice.


            Effective and Termination Dates of 1985 Amendment

    That portion of section 1002 of Pub. L. 99-198 which provided that 
the amendment made by that section was effective only for 1986 through 
1990 crops of wheat, feed grains, upland cotton, and rice, was struck 
out by section 1121(c) of Pub. L. 101-624.


                     Effective and Termination Dates

    Section 120 of Pub. L. 97-253 provided that this section is 
effective only for 1982 through 1985 crops of wheat, feed grains, upland 
cotton, and rice.


    Calculation of Refunds of Advance Established Price Payments by 
             Producers of 1988 or 1989 Crops of Feed Barley

    Section 405 of Pub. L. 101-624 provided that:
    ``(a) Mandatory Calculation of Refund.--
        ``(1) In general.--Not later than 90 days after the date of 
    enactment of this Act [Nov. 28, 1990], the Secretary of Agriculture 
    shall calculate, for informational purposes only (except as provided 
    in the discretionary authority under subsection (b)), the amount of 
    the refund of any advance deficiency payment a producer of barley 
    who participated in the 1988 or 1989 Federal barley price support 
    program would be required to make pursuant to section 107C of the 
    Agricultural Act of 1949 (7 U.S.C. 1445b-2) (as it existed 
    immediately before the date of enactment of this Act) based on a 
    formula which excludes malting barley from the market price 
    calculations of barley used to determine the amount of refund of the 
    advance deficiency payment required of the producer.
        ``(2) Disclosure.--
            ``(A) To the public.--The Secretary shall publish in the 
        Federal Register--
                ``(i) the formula used to perform the calculations 
            described in paragraph (1);
                ``(ii) the aggregate results that the use of the 
            calculation would have pursuant to subsection (b), in terms 
            of--
          ``(I) the total reduction in the amount of refunds;
          ``(II) the number of producers affected; and
          ``(III) any other information the Secretary determines 
                appropriate;
                ``(iii) a declaration of the Secretary's decision 
            whether to use the calculation to recalculate barley 
            producer's refunds pursuant to subsection (b); and
                ``(iv) a statement of the Secretary's reasons for the 
            decision described in clause (iii).
            ``(B) To producers.--The Secretary shall make available to 
        each producer of 1988 or 1989 crop barley, on request, a 
        statement detailing the effect of the calculation of refunds 
        described in paragraph (1) on the producer's 1988 or 1989 
        refund.
    ``(b) Discretionary Use of Calculation.--
        ``(1) In general.--The Secretary may use the calculation 
    described in subsection (a) to determine whether or not to reduce 
    the total refund owed by a producer of 1988 or 1989 crop barley 
    under section 107C of the Agricultural Act of 1949 [7 U.S.C. 1445b-
    2] (as it existed immediately before the date of enactment of this 
    Act [Nov. 28, 1990]).
        ``(2) Procedure for use of calculation.--If the Secretary 
    decides to use the calculation described in subsection (a) as 
    provided under paragraph (1), in the case of a producer of 1988 or 
    1989 crop barley who paid the refund of the advance deficiency 
    payment for the crop calculated prior to the date of enactment of 
    this Act (or any amount of refund in excess of the amount of the 
    refund determined in accordance with paragraph (1)), the Secretary--
            ``(i) shall, before May 31, 1991, reimburse the producer the 
        amount of refund paid by the producer in excess of the refund 
        determined in accordance with this section;
            ``(ii) shall have the option to make the reimbursement in a 
        lump sum or in installments;
            ``(iii) shall, not later than 90 days after the date of 
        enactment of this Act, notify producers who are eligible to 
        receive the reimbursement of their 1988 or 1989 advance 
        deficiency payment refund under this section--
                ``(I) of the timing of the payment of the reimbursement 
            (either in lump sum or in installments);
                ``(II) that the amount of the reimbursement shall not 
            bear interest if paid before February 15, 1991; and
                ``(III) that the amount of the reimbursement paid after 
            February 15, 1991, shall bear interest at a rate of at least 
            7 percent per annum; and
            ``(iv) may elect to pay the reimbursement in a lump sum with 
        generic certificates redeemable for commodities owned by the 
        Commodity Credit Corporation if the reimbursement is paid in 
        full not later than 60 days after the date of enactment of this 
        Act.''


                         Repayment Requirements

    Section 1121(b) of Pub. L. 101-624 provided that:
    ``(1) In general.--Notwithstanding any other provision of law, 
effective only for producers who are suffering financial hardship, as 
determined by the Secretary, on a farm who received an advance 
deficiency payment for the 1988 or 1989 crop of a commodity and are 
otherwise described in paragraph (2), the Secretary of Agriculture--
        ``(A) shall not charge an annual interest rate for any 
    delinquent refund for the advance deficiency payment in excess of 
    prevailing rates for operating loans made by Farm Credit System 
    institutions;
        ``(B) shall not withhold, in each of the 3 succeeding crop 
    years, more than \1/3\ of the farm program payments otherwise due to 
    the producers, as a result of any delinquency in providing the 
    refund; and
        ``(C) shall permit the producers to make the refund in three 
    equal installments during each of the crop years 1990, 1991, and 
    1992, if the producers enter into an agreement to obtain multiperil 
    crop insurance for each of the crop years, to the extent that the 
    Secretary determines is similar to section 107 of the Disaster 
    Assistance Act of 1989 (7 U.S.C. 1421 et seq.) [Sec. 107 of Pub. L. 
    101-82, 7 U.S.C. 1421 note].
    ``(2) Application.--This subparagraph shall apply if--
        ``(A) the producers received an advance deficiency payment for 
    the 1988 or 1989 crop of a commodity under section 107C(a) of the 
    Agricultural Act of 1949 (7 U.S.C. 1445b-2(a));
        ``(B) the producers are required to provide a refund of at least 
    $1,500 under subparagraph (G) or (H) of section 107C(a)(2) of such 
    Act with respect to the advance deficiency payments;
        ``(C) the producers reside in a county, or in a county that is 
    contiguous to a county, where the Secretary of Agriculture has found 
    that farming, ranching, or aquaculture operations have been 
    substantially affected as evidenced by a reduction in normal 
    production for the county of at least 30 percent during two of the 
    three crop years 1988, 1989, and 1990 by a natural disaster or by a 
    major disaster or emergency designated by the President under the 
    Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
    U.S.C. 5121 et seq.); and
        ``(D) the total quantity of the 1988 or 1989 crop of the 
    commodity that the producers were able to harvest is less than the 
    result of multiplying 65 percent of the farm payment yield 
    established by the Secretary for the crop by the sum of the acreage 
    planted for the harvest and the acreage prevented from being planted 
    (because of the disaster or emergency referred to in subparagraph 
    (C)) for the crop.''


                       Advance Deficiency Payments

    Pub. L. 99-509, title I, Sec. 1021, Oct. 21, 1986, 100 Stat. 1877, 
required Secretary of Agriculture to make advance deficiency payments 
available for 1987 crops of wheat, feed grains, upland cotton, and rice, 
and provided that percentage of projected payment rate used in computing 
such payments shall not be less than (1) 40 percent in the case of wheat 
and feed grains, and (2) 30 percent in the case of rice and upland 
cotton.

                  Section Referred to in Other Sections

    This section is referred to in sections 7213, 7214, 7301 of this 
title.
