
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 7USC7214]

 
                          TITLE 7--AGRICULTURE
 
               CHAPTER 100--AGRICULTURAL MARKET TRANSITION
 
             SUBCHAPTER II--PRODUCTION FLEXIBILITY CONTRACTS
 
Sec. 7214. Determination of contract payments under contracts


(a) Individual payment quantity of contract commodities

    For each contract, the payment quantity of a contract commodity for 
each fiscal year shall be equal to the product of--
        (1) 85 percent of the contract acreage; and
        (2) the farm program payment yield.

(b) Annual payment quantity of contract commodities

    The payment quantity of each contract commodity covered by all 
contracts for each fiscal year shall be equal to the sum of the amounts 
calculated under subsection (a) of this section for each individual 
contract.

(c) Annual payment rate

    The payment rate for a contract commodity for each fiscal year shall 
be equal to--
        (1) the amount made available under section 7213 of this title 
    for the contract commodity for the fiscal year; divided by
        (2) the amount determined under subsection (b) of this section 
    for the fiscal year.

(d) Annual payment amount

    The amount to be paid under a contract in effect for each fiscal 
year with respect to all contract commodities covered by the contract 
shall be equal to the sum of the products of--
        (1) the payment quantity determined under subsection (a) of this 
    section for each of the contract commodities covered by the 
    contract; and
        (2) the corresponding payment rate for the contract commodity in 
    effect under subsection (c) of this section.

(e) Reduction in payment amount

    The contract payment determined under subsection (d) of this section 
for an owner or producer for a fiscal year shall be immediately reduced 
by the amount of any repayment of deficiency payments that is required 
under section 114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 
1445j(a)(2)) and is not repaid as of the date the contract payment is 
determined. The Secretary shall be required to collect the required 
repayment, or any claim based on the required repayment, as soon as the 
contract payment is determined.

(f) Assignment of contract payments

    The provisions of section 590h(g) of title 16 (relating to 
assignment of payments) shall apply to contract payments under this 
section. The owner or producer making the assignment, or the assignee, 
shall provide the Secretary with notice, in such manner as the Secretary 
may require in the contract, of any assignment made under this 
subsection.

(g) Sharing of contract payments

    The Secretary shall provide for the sharing of contract payments 
among the owners and producers subject to the contract on a fair and 
equitable basis.

(Pub. L. 104-127, title I, Sec. 114, Apr. 4, 1996, 110 Stat. 901.)
