---
kind: "section"
citation: "7 U.S.C. § 7214"
title: "7"
title_heading: "Agriculture"
number: "7214"
heading: "Determination of contract payments under contracts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7214"
units:
  - "Chapter 100 — Agricultural Market Transition"
  - "Subchapter II — Production Flexibility Contracts"
---

# §7214. Determination of contract payments under contracts

- (a) **Individual payment quantity of contract commodities—** For each [contract](/usc/7/7202.md?p=3), the payment quantity of a [contract commodity](/usc/7/7202.md?p=5) for each fiscal year shall be equal to the product of—
  - (1) 85 percent of the [contract acreage](/usc/7/7202.md?p=4); and
  - (2) the [farm program payment yield](/usc/7/7202.md?p=9).
- (b) **Annual payment quantity of contract commodities—** The payment quantity of each [contract commodity](/usc/7/7202.md?p=5) covered by all [contracts](/usc/7/7202.md?p=3) for each fiscal year shall be equal to the sum of the amounts calculated under [subsection (a)](#a) for each individual [contract](/usc/7/7202.md?p=3).
- (c) **Annual payment rate—** The payment rate for a [contract commodity](/usc/7/7202.md?p=5) for each fiscal year shall be equal to—
  - (1) the amount made available under [section 7213 of this title](/usc/7/7213.md) for the [contract commodity](/usc/7/7202.md?p=5) for the fiscal year; divided by
  - (2) the amount determined under [subsection (b)](#b) for the fiscal year.
- (d) **Annual payment amount—** The amount to be paid under a [contract](/usc/7/7202.md?p=3) in effect for each fiscal year with respect to all [contract commodities](/usc/7/7202.md?p=5) covered by the [contract](/usc/7/7202.md?p=3) shall be equal to the sum of the products of—
  - (1) the payment quantity determined under [subsection (a)](#a) for each of the [contract commodities](/usc/7/7202.md?p=5) covered by the [contract](/usc/7/7202.md?p=3); and
  - (2) the corresponding payment rate for the [contract commodity](/usc/7/7202.md?p=5) in effect under [subsection (c)](#c).
- (e) **Reduction in payment amount—** The [contract payment](/usc/7/7202.md?p=6) determined under [subsection (d)](#d) for an owner or [producer](/usc/7/7202.md?p=12) 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](/usc/7/7202.md?p=1) ([7 U.S.C. 1445j(a)(2)](/usc/7/1445j.md?p=a-2)) and is not repaid as of the date the [contract payment](/usc/7/7202.md?p=6) is determined. The [Secretary](/usc/7/7202.md?p=13) shall be required to collect the required repayment, or any claim based on the required repayment, as soon as the [contract payment](/usc/7/7202.md?p=6) is determined.
- (f) **Assignment of contract payments—** The provisions of [section 590h(g) of title 16](/usc/16/590h.md?p=g) (relating to assignment of payments) shall apply to [contract payments](/usc/7/7202.md?p=6) under this section. The owner or [producer](/usc/7/7202.md?p=12) making the assignment, or the assignee, shall provide the [Secretary](/usc/7/7202.md?p=13) with notice, in such manner as the [Secretary](/usc/7/7202.md?p=13) may require in the [contract](/usc/7/7202.md?p=3), of any assignment made under this subsection.
- (g) **Sharing of contract payments—** The [Secretary](/usc/7/7202.md?p=13) shall provide for the sharing of [contract payments](/usc/7/7202.md?p=6) among the owners and [producers](/usc/7/7202.md?p=12) subject to the [contract](/usc/7/7202.md?p=3) on a fair and equitable basis.

## Source credit

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