7 USC 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
Terms Used In 7 USC 7214
- Contract: A legal written agreement that becomes binding when signed.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See 1 USC 8
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) 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) 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) 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).
(e) Reduction in payment amount
The contract payment determined under subsection (d) 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.