CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XIV—COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE (parts 1400 to 1499) > SUBCHAPTER B—LOANS, PURCHASES, AND OTHER OPERATIONS (parts 1410 to 1499) > PART 1412—DIRECT AND COUNTER-CYCLICAL PROGRAM AND AVERAGE CROP REVENUE ELECTION PROGRAM FOR THE 2008 AND SUBSEQUENT CROP YEARS > SUBPART D—Direct and Counter-Cyclical Program and ACRE Program Contract Terms and Enrollment Provisions for Covered Commodities and Peanuts 2008 through 2012 (§1412.41 to §1412.50) > 1412.46—Succession-in-interest.

1412.46—Succession-in-interest.

(a) A succession in interest to a DCP or ACRE program contract is required if there has been a change in the operation of a farm, such as:
(1) A sale of land;
(2) A change of operator or producer, including a change in a partnership that increases or decreases the number of partners or changes who are partners;
(3) A foreclosure, bankruptcy, or involuntary loss of the farm;
(4) A change in producer shares to reflect changes in the producer's share of the crop(s) that were originally approved on the contract; or
(5) An other change determined by the Deputy Administrator to be a succession that will not adversely affect nor defeat the purpose of the program.
(b) A succession in interest to the contract is not permitted if CCC determines that the change:
(1) Results in a violation of the landlord-tenant provisions specified in § 1412.55; or
(2) Adversely affects or otherwise defeats the purpose of the program.
(c) If a producer who is entitled to receive direct and counter-cyclical payments dies, becomes incompetent, or is otherwise unable to receive the payment, CCC will make the payment in accordance with part 707 of this title.
(d) A producer or owner of an enrolled farm must inform the county committee of changes in interest in base acres on the farm not later than:
(1) August 1 of the fiscal year in which the change occurs if the change requires a reconstitution be completed in accordance with part 718 of this title or
(2) September 30 of the fiscal year in which the change occurs if the change does not require a reconstitution be completed in accordance with part 718 of this title.
(e) In any case in which either a direct or counter-cyclical payment has previously been made to a predecessor, such payment will not be paid to the successor, unless such payment has been refunded in full by the predecessor, in accordance with § 1412.41(d).
(f) The failure of the party eligible to succeed to the contract to do so will be considered a contract violation.