---
kind: "section"
citation: "7 U.S.C. § 7914"
title: "7"
title_heading: "Agriculture"
number: "7914"
heading: "Availability of counter-cyclical payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7914"
units:
  - "Chapter 106 — Commodity Programs"
  - "Subchapter I — Direct Payments and Counter-Cyclical Payments"
---

# §7914. Availability of counter-cyclical payments

- (a) **Payment required—** For each of the 2002 through 2007 crop years for each [covered commodity](/usc/7/7901.md?p=4), the [Secretary](/usc/7/7901.md?p=13) shall make [counter-cyclical payments](/usc/7/7901.md?p=3) to [producers](/usc/7/7901.md?p=12) on farms for which [payment yields](/usc/7/7901.md?p=11-A) and [base acres](/usc/7/7901.md?p=2) are established with respect to the [covered commodity](/usc/7/7901.md?p=4) if the [Secretary](/usc/7/7901.md?p=13) determines that the [effective price](/usc/7/7901.md?p=6) for the [covered commodity](/usc/7/7901.md?p=4) is less than the [target price](/usc/7/7901.md?p=15) for the [covered commodity](/usc/7/7901.md?p=4).
- (b) **Effective price—** For purposes of [subsection (a)](#a), the [effective price](/usc/7/7901.md?p=6) for a [covered commodity](/usc/7/7901.md?p=4) is equal to the sum of the following:
  - (1) The higher of the following:
    - (A) The national average [market](/usc/7/198.md?p=1) price received by [producers](/usc/7/7901.md?p=12) during the 12-month marketing year for the [covered commodity](/usc/7/7901.md?p=4), as determined by the [Secretary](/usc/7/7901.md?p=13).
    - (B) The national average loan rate for a marketing assistance loan for the [covered commodity](/usc/7/7901.md?p=4) in effect for the applicable period under subchapter II.
  - (2) The payment rate in effect for the [covered commodity](/usc/7/7901.md?p=4) under [section 7913 of this title](/usc/7/7913.md) for the purpose of making [direct payments](/usc/7/7901.md?p=5) with respect to the [covered commodity](/usc/7/7901.md?p=4).
- (c) **Target price—**
  - (1) **2002 and 2003 crop years—** For purposes of the 2002 and 2003 crop years, the [target prices](/usc/7/7901.md?p=15) for [covered commodities](/usc/7/7901.md?p=4) shall be as follows:
    - (A) Wheat, $3.86 per bushel.
    - (B) Corn, $2.60 per bushel.
    - (C) Grain sorghum, $2.54 per bushel.
    - (D) Barley, $2.21 per bushel.
    - (E) Oats, $1.40 per bushel.
    - (F) Upland cotton, $0.7240 per pound.
    - (G) Rice, $10.50 per hundredweight.
    - (H) Soybeans, $5.80 per bushel.
    - (I) [Other oilseeds](/usc/7/7901.md?p=9), $0.0980 per pound.
  - (2) **Subsequent crop years—** For purposes of each of the 2004 through 2007 crop years, the [target prices](/usc/7/7901.md?p=15) for [covered commodities](/usc/7/7901.md?p=4) shall be as follows:
    - (A) Wheat, $3.92 per bushel.
    - (B) Corn, $2.63 per bushel.
    - (C) Grain sorghum, $2.57 per bushel.
    - (D) Barley, $2.24 per bushel.
    - (E) Oats, $1.44 per bushel.
    - (F) Upland cotton, $0.7240 per pound.
    - (G) Rice, $10.50 per hundredweight.
    - (H) Soybeans, $5.80 per bushel.
    - (I) [Other oilseeds](/usc/7/7901.md?p=9), $0.1010 per pound.
- (d) **Payment rate—** The payment rate used to make [counter-cyclical payments](/usc/7/7901.md?p=3) with respect to a [covered commodity](/usc/7/7901.md?p=4) for a crop year shall be equal to the difference between—
  - (1) the [target price](/usc/7/7901.md?p=15) for the [covered commodity](/usc/7/7901.md?p=4); and
  - (2) the [effective price](/usc/7/7901.md?p=6) determined under [subsection (b)](#b) for the [covered commodity](/usc/7/7901.md?p=4).
- (e) **Payment amount—** If [counter-cyclical payments](/usc/7/7901.md?p=3) are required to be paid for any of the 2002 through 2007 crop years of a [covered commodity](/usc/7/7901.md?p=4), the amount of the [counter-cyclical payment](/usc/7/7901.md?p=3) to be paid to the [producers](/usc/7/7901.md?p=12) on a farm for that crop year shall be equal to the product of the following:
  - (1) The payment rate specified in [subsection (d)](#d).
  - (2) The [payment acres](/usc/7/7901.md?p=10) of the [covered commodity](/usc/7/7901.md?p=4) on the farm.
  - (3) The [payment yield](/usc/7/7901.md?p=11-A) or [updated payment yield](/usc/7/7901.md?p=11-B) for the farm, depending on the election of the owner of the farm under [section 7912 of this title](/usc/7/7912.md).
- (f) **Time for payments—**
  - (1) **General rule—** If the [Secretary](/usc/7/7901.md?p=13) determines under [subsection (a)](#a) that [counter-cyclical payments](/usc/7/7901.md?p=3) are required to be made under this section for the crop of a [covered commodity](/usc/7/7901.md?p=4), the [Secretary](/usc/7/7901.md?p=13) shall make the [counter-cyclical payments](/usc/7/7901.md?p=3) for the crop as soon as practicable after the end of the 12-month marketing year for the [covered commodity](/usc/7/7901.md?p=4).
  - (2) **Availability of partial payments—** If, before the end of the 12-month marketing year for a [covered commodity](/usc/7/7901.md?p=4), the [Secretary](/usc/7/7901.md?p=13) estimates that [counter-cyclical payments](/usc/7/7901.md?p=3) will be required for the crop of the [covered commodity](/usc/7/7901.md?p=4), the [Secretary](/usc/7/7901.md?p=13) shall give [producers](/usc/7/7901.md?p=12) on a farm the option to receive partial payments of the [counter-cyclical payment](/usc/7/7901.md?p=3) projected to be made for that crop of the [covered commodity](/usc/7/7901.md?p=4).
  - (3) **Time for partial payments—**
    - (A) **2002 through 2006 crop years—** When the [Secretary](/usc/7/7901.md?p=13) makes partial payments available under [paragraph (2)](#f-2) for a [covered commodity](/usc/7/7901.md?p=4) 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](/usc/7/7901.md?p=4) is harvested;
      - (ii) the second partial payment shall be made not earlier than February 1 of the next calendar year; and
      - (iii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the [covered commodity](/usc/7/7901.md?p=4).
    - (B) **2007 crop year—** When the [Secretary](/usc/7/7901.md?p=13) makes partial payments available for a [covered commodity](/usc/7/7901.md?p=4) for the 2007 crop year—
      - (i) the first partial payment shall be made after completion of the first 6 months of the marketing year for the [covered commodity](/usc/7/7901.md?p=4); and
      - (ii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for the [covered commodity](/usc/7/7901.md?p=4).
  - (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](/usc/7/7901.md?p=4), the first partial payment under [paragraph (3)](#f-3) to the [producers](/usc/7/7901.md?p=12) on a farm may not exceed 35 percent of the projected [counter-cyclical payment](/usc/7/7901.md?p=3) for the [covered commodity](/usc/7/7901.md?p=4) for the crop year, as determined by the [Secretary](/usc/7/7901.md?p=13).
      - (ii) **Second partial payment—** The second partial payment for a [covered commodity](/usc/7/7901.md?p=4) for a crop year may not exceed the difference between—
        - (I) 70 percent of the projected [counter-cyclical payment](/usc/7/7901.md?p=3) (including any revision thereof) for the crop of the [covered commodity](/usc/7/7901.md?p=4); and
        - (II) the amount of the payment made under [clause (i)](#f-4-A-i).
      - (iii) **Final payment—** The final payment for a [covered commodity](/usc/7/7901.md?p=4) for a crop year shall be equal to the difference between—
        - (I) the actual [counter-cyclical payment](/usc/7/7901.md?p=3) to be made to the [producers](/usc/7/7901.md?p=12) for the [covered commodity](/usc/7/7901.md?p=4) for that crop year; and
        - (II) the amount of the partial payments made to the [producers](/usc/7/7901.md?p=12) under clauses [(i)](#f-4-A-i) and [(ii)](#f-4-A-ii) for that crop year.
    - (B) **2007 crop year—**
      - (i) **First partial payment—** For the 2007 crop year, the first partial payment under [paragraph (3)](#f-3) to the [producers](/usc/7/7901.md?p=12) on a farm may not exceed 40 percent of the projected [counter-cyclical payment](/usc/7/7901.md?p=3) for the [covered commodity](/usc/7/7901.md?p=4) for the crop year, as determined by the [Secretary](/usc/7/7901.md?p=13).
      - (ii) **Final payment—** The final payment for the 2007 crop year shall be equal to the difference between—
        - (I) the actual [counter-cyclical payment](/usc/7/7901.md?p=3) to be made to the [producers](/usc/7/7901.md?p=12) for the [covered commodity](/usc/7/7901.md?p=4) for that crop year; and
        - (II) the amount of the partial payment made to the [producers](/usc/7/7901.md?p=12) under [clause (i)](#f-4-B-i).
  - (5) **Repayment—** The [producers](/usc/7/7901.md?p=12) on a farm that receive a partial payment under this subsection for a crop year shall repay to the [Secretary](/usc/7/7901.md?p=13) the amount, if any, by which the total of the partial payments exceed the actual [counter-cyclical payment](/usc/7/7901.md?p=3) to be made for the [covered commodity](/usc/7/7901.md?p=4) for that crop year.

## Source credit

(Pub. L. 107–171, title I, § 1104, May 13, 2002, 116 Stat. 150.)

## Notes

### Editorial Notes

### References in Text

Subchapter II, referred to in subsec. (b)(1)(B), was in the original “subtitle B”, meaning subtitle B (§§ 1201–1209) of title I of Pub. L. 107–171, May 13, 2002, 116 Stat. 155, which is classified principally to subchapter II of this chapter. For complete classification of subtitle B to the Code, see Tables.