[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1412.303]

[Page 393-394]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1412_DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA BUYOUT 
 
   Subpart C_Establishment of Yields for Direct and Counter-Cyclical 
                                Payments
 
Sec.  1412.303  Payment yield for counter-cyclical payments for covered 

commodities.

    (a)(1) The counter-cyclical payment yield for covered commodities on 
the farm shall be equal to the direct payment yield for the covered 
commodity on the farm unless the owner elects to partially update the 
yield for all covered commodities on the farm in accordance with 
paragraph (b) of this section.
    (2) Only owners who establish base acres for the farm in accordance 
with Sec.  1412.201(a)(1) shall have the opportunity to partially update 
the counter-cyclical payment yield for the covered commodities on the 
farm.
    (3) The partially updated yield shall be used for the calculation of 
the counter-cyclical payments only. The partially updated counter-
cyclical yield shall not be used for the calculation of any direct 
payments for any covered commodity.
    (4) Owners who elect to partially update counter-cyclical payment 
yields in accordance with this section must:
    (i) Make such election at the same time such owner makes the base 
election in accordance with Sec.  1412.201; and
    (ii) Update counter-cyclical payment yields for all covered 
commodities on the farm using the same method. Updating counter-cyclical 
payment yields for fewer than all covered commodities on the farm is not 
allowed. Updating counter-cyclical payment yields for covered 
commodities on a farm using different methods for different covered 
commodities is not allowed.
    (b) Owners on a farm who established base acres for the farm in 
accordance with Sec.  1412.201(a)(1) may select one of the following 
methods to partially update counter-cyclical payment yields for all 
covered commodities on the farm. The same method must be used

[[Page 394]]

to partially update the counter-cyclical payment yield for all covered 
commodities on the farm.
    (1) The sum of the following:
    (i) The payment yield calculated for the covered commodity in 
accordance with Sec. Sec.  1412.301 or 1412.302, as applicable, plus
    (ii) 70 percent of the result of:
    (A) The average yield per planted acre for the crop on the farm, as 
determined in accordance with paragraph (c) of this section, minus
    (B) The payment yield calculated for the covered commodity in 
accordance with Sec. Sec.  1412.301 or 1412.302, as applicable.
    (2) 93.5 percent of the average yield per planted acre for the crop 
on the farm, as determined in accordance with paragraph (c) of this 
section.
    (c)(1) The yield per planted acre for covered commodities on the 
farm is calculated as follows:
    (i) The sum of the production of the crop for 1998 through 2001 crop 
years, as determined in accordance with paragraph (c)(2) of this 
section, divided by
    (ii) The sum of the total planted acres of the crop for the 1998 
through 2001 crop years.
    (2) The production of the crop for each of the 1998 through 2001 
crop years shall be the higher of the following, except in a year in 
which the acreage planted to the crop was zero, in which case, the 
production for the crop for such year shall be zero:
    (i) The total production for the applicable year based on the 
production evidence submitted in accordance with Sec.  1412.304; or
    (ii) The amount equal to the product of:
    (A) The total planted acres for the crop, times
    (B) 75 percent of the harvested average county yield for that crop 
determined, where practicable, by calculating the weighted 4-year 
average of the National Agricultural Statistics Service (NASS) harvested 
acreage yields for the crop using the 1998 through 2001 crop years.
    (3) The NASS harvested acreage yield to be used in paragraph (c)(2) 
of this section shall be based on:
    (i) NASS harvested irrigated yield for the crop, if available, for 
producers who irrigated the crop in the applicable years;
    (ii) NASS harvested non-irrigated yield for the crop, if available, 
for producers who did not irrigate the crop in the applicable years; or
    (iii) NASS harvested blended yield for all acreage, regardless of 
whether or not the acres were irrigated or non-irrigated, for all crops 
in all counties where the yields in paragraphs (c)(3)(i) and (ii) of 
this section are unavailable.
    (4) If NASS harvested acreage yield data is not available, the 
Deputy Administrator shall assign a yield to be used in paragraph 
(c)(2)(ii)(B) of this section.