§ 7914. Availability of counter-cyclical payments
(a)
Payment required
For each of the 2002 through 2007 crop years for each covered commodity, the Secretary shall make counter-cyclical payments to producers on farms for which payment yields and base acres are established with respect to the covered commodity if the Secretary determines that the effective price for the covered commodity is less than the target price for the covered commodity.
(b)
Effective price
For purposes of subsection (a) of this section, the effective price for a covered commodity is equal to the sum of the following:
(1)
The higher of the following:
(2)
The payment rate in effect for the covered commodity under section
7913 of this title for the purpose of making direct payments with respect to the covered commodity.
(c)
Target price
(1)
2002 and 2003 crop years
For purposes of the 2002 and 2003 crop years, the target prices for covered commodities shall be as follows:
(d)
Payment rate
The payment rate used to make counter-cyclical payments with respect to a covered commodity for a crop year shall be equal to the difference between—
(e)
Payment amount
If counter-cyclical payments are required to be paid for any of the 2002 through 2007 crop years of a covered commodity, the amount of the counter-cyclical payment to be paid to the producers on a farm for that crop year shall be equal to the product of the following:
(3)
The payment yield or updated payment yield for the farm, depending on the election of the owner of the farm under section
7912 of this title.
(f)
Time for payments
(1)
General rule
If the Secretary determines under subsection (a) of this section that counter-cyclical payments are required to be made under this section for the crop of a covered commodity, the Secretary shall make the counter-cyclical payments for the crop as soon as practicable after the end of the 12-month marketing year for the covered commodity.
(2)
Availability of partial payments
If, before the end of the 12-month marketing year for a covered commodity, the Secretary estimates that counter-cyclical payments will be required for the crop of the covered commodity, the Secretary shall give producers on a farm the option to receive partial payments of the counter-cyclical payment projected to be made for that crop of the covered commodity.
(3)
Time for partial payments
(A)
2002 through 2006 crop years
When the Secretary makes partial payments available under paragraph (2) for a covered commodity for any of the 2002 through 2006 crop years—
(i)
the first partial payment for the crop year shall be made not earlier than October 1, and, to the maximum extent practicable, not later than October 31, of the calendar year in which the crop of the covered commodity is harvested;
(4)
Amount of partial payments
(A)
2002 through 2006 crop years
(i)
First partial payment
For each of the 2002 through 2006 crop years of a covered commodity, the first partial payment under paragraph (3) to the producers on a farm may not exceed 35 percent of the projected counter-cyclical payment for the covered commodity for the crop year, as determined by the Secretary.
(ii)
Second partial payment
The second partial payment for a covered commodity for a crop year may not exceed the difference between—