---
kind: "section"
citation: "7 U.S.C. § 7954"
title: "7"
title_heading: "Agriculture"
number: "7954"
heading: "Availability of counter-cyclical payments for peanuts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/7954"
units:
  - "Chapter 106 — Commodity Programs"
  - "Subchapter III — Peanuts"
---

# §7954. Availability of counter-cyclical payments for peanuts

- (a) **Payment required—**
  - (1) **In general—** During the 2002 through 2007 crop years for peanuts, the [Secretary](/usc/7/7901.md?p=13) shall make [counter-cyclical payments](/usc/7/7901.md?p=3) under this section with respect to peanuts if the [Secretary](/usc/7/7901.md?p=13) determines that the [effective price](/usc/7/7901.md?p=6) for peanuts is less than the [target price](/usc/7/7901.md?p=15) for peanuts.
  - (2) **2002 crop year—** If [counter-cyclical payments](/usc/7/7901.md?p=3) are required for the 2002 crop year, the [Secretary](/usc/7/7901.md?p=13) shall make the payments to [historic peanut producers](/usc/7/7951.md?p=5).
  - (3) **Subsequent crop years—** If [counter-cyclical payments](/usc/7/7901.md?p=3) are required for any of the 2003 through 2007 crop years for peanuts, the [Secretary](/usc/7/7901.md?p=13) shall make the payments to the [producers](/usc/7/7901.md?p=12) on a farm to which a [payment yield](/usc/7/7901.md?p=11-A) and [base acres for peanuts](/usc/7/7951.md?p=1) are assigned under [section 7952 of this title](/usc/7/7952.md).
- (b) **Effective price—** For purposes of [subsection (a)](#a), the [effective price](/usc/7/7901.md?p=6) for peanuts 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 for peanuts received by [producers](/usc/7/7901.md?p=12) during the 12-month marketing year for peanuts, as determined by the [Secretary](/usc/7/7901.md?p=13).
    - (B) The national average loan rate for a marketing assistance loan for peanuts in effect for the applicable period under this subchapter.
  - (2) The payment rate in effect under [section 7953 of this title](/usc/7/7953.md) for the purpose of making [direct payments](/usc/7/7901.md?p=5).
- (c) **Target price—** For purposes of [subsection (a)](#a), the [target price](/usc/7/7901.md?p=15) for peanuts shall be equal to $495 per ton.
- (d) **Payment rate—** The payment rate used to make [counter-cyclical payments](/usc/7/7901.md?p=3) for a crop year shall be equal to the difference between—
  - (1) the [target price](/usc/7/7901.md?p=15); and
  - (2) the [effective price](/usc/7/7901.md?p=6) determined under [subsection (b)](#b).
- (e) **Payment amount for 2002 crop year—** If [counter-cyclical payments](/usc/7/7901.md?p=3) are required to be paid for the 2002 crop of peanuts, the amount of the [counter-cyclical payment](/usc/7/7901.md?p=3) to be paid to an [historic peanut producer](/usc/7/7951.md?p=5) 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 [historic peanut producer](/usc/7/7951.md?p=5).
  - (3) The average peanut yield determined under [section 7952(a)(1) of this title](/usc/7/7952.md?p=a-1) for the [historic peanut producer](/usc/7/7951.md?p=5).
- (f) **Payment amount for subsequent crop years—** If [counter-cyclical payments](/usc/7/7901.md?p=3) are required to be paid for any of the 2003 through 2007 crops of peanuts, 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) on the farm.
  - (3) The [payment yield](/usc/7/7901.md?p=11-A) for the farm.
- (g) **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 a crop year, the [Secretary](/usc/7/7901.md?p=13) shall make the [counter-cyclical payments](/usc/7/7901.md?p=3) as soon as practicable after the end of the 12-month marketing year for the crop.
  - (2) **Availability of partial payments—** If, before the end of the 12-month marketing year, the [Secretary](/usc/7/7901.md?p=13) estimates that [counter-cyclical payments](/usc/7/7901.md?p=3) will be required under this section for a crop year, the [Secretary](/usc/7/7901.md?p=13) shall give [producers](/usc/7/7901.md?p=12) on a farm (or, in the case of the 2002 crop year, [historic peanut producers](/usc/7/7951.md?p=5)) the option to receive partial payments of the [counter-cyclical payment](/usc/7/7901.md?p=3) projected to be made for that crop.
  - (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)](#g-2) 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 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 that crop.
    - (B) **2007 crop year—** When the [Secretary](/usc/7/7901.md?p=13) makes partial payments available 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 that crop; and
      - (ii) the final partial payment shall be made as soon as practicable after the end of the 12-month marketing year for that crop.
  - (4) **Amount of partial payments—**
    - (A) **2002 crop year—**
      - (i) **First partial payment—** In the case of the 2002 crop year, the first partial payment under [paragraph (3)](#g-3) to an [historic peanut producer](/usc/7/7951.md?p=5) may not exceed 35 percent of the projected [counter-cyclical payment](/usc/7/7901.md?p=3) for the crop year, as determined by the [Secretary](/usc/7/7901.md?p=13).
      - (ii) **Second partial payment—** The second partial payment 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 2002 crop year; and
        - (II) the amount of the payment made under [clause (i)](#g-4-A-i).
      - (iii) **Final payment—** The final payment shall be equal to the difference between—
        - (I) the actual [counter-cyclical payment](/usc/7/7901.md?p=3) to be made to the [historic peanut producer](/usc/7/7951.md?p=5); and
        - (II) the amount of the partial payments made to the [historic peanut producer](/usc/7/7951.md?p=5) under clauses [(i)](#g-4-A-i) and [(ii)](#g-4-A-ii).
    - (B) **2003 through 2006 crop years—**
      - (i) **First partial payment—** For each of the 2003 through 2006 crop years, the first partial payment under [paragraph (3)](#g-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 crop year, as determined by the [Secretary](/usc/7/7901.md?p=13).
      - (ii) **Second partial payment—** The second partial payment 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 year; and
        - (II) the amount of the payment made under [clause (i)](#g-4-B-i).
      - (iii) **Final payment—** The final payment 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 that crop year; and
        - (II) the amount of the partial payments made to the [producers](/usc/7/7901.md?p=12) under clauses [(i)](#g-4-B-i) and [(ii)](#g-4-B-ii) for that crop year.
    - (C) **2007 crop year—**
      - (i) **First partial payment—** For the 2007 crop year, the first partial payment under [paragraph (3)](#g-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 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 that crop year; and
        - (II) the amount of the partial payment made to the [producers](/usc/7/7901.md?p=12) under [clause (i)](#g-4-C-i).
  - (5) **Repayment—** The [producers](/usc/7/7901.md?p=12) on a farm (or, in the case of the 2002 crop year, [historic peanut producers](/usc/7/7951.md?p=5)) 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 that crop year.

## Source credit

(Pub. L. 107–171, title I, § 1304, May 13, 2002, 116 Stat. 171.)

## Notes

### Editorial Notes

### References in Text

This subchapter, referred to in subsecs. (b)(1)(B), was in the original “this subtitle”, meaning subtitle C (§§ 1301–1310) of Pub. L. 107–171, title I, May 13, 2002, 116 Stat. 166, which is classified principally to this subchapter. For complete classification of subtitle C to the Code, see References in Text note set out under section 7951 of this title and Tables.