[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: 7CFR1412.601]

[Page 407]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1412_DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA BUYOUT 
 
        Subpart F_Contract Violations and Diminution in Payments
 
Sec.  1412.601  Contract violations.

    Source: 67 FR 64751, Oct. 21, 2002, unless otherwise noted.


    (a) Except as provided in paragraph (b) of this section, violations 
of contract requirements shall result in the termination of the 
contract. Upon such termination, all producers subject to the contract 
shall forfeit all rights to receive direct and counter-cyclical payments 
on the farm for the contract year and shall refund all direct and 
counter-cyclical payments received, plus interest, as determined in 
accordance with part 1403 of this chapter.
    (b)(1) If there is a violation of Sec.  1412.407 and CCC determines 
that a violation is not serious enough to warrant termination of the 
contract under paragraph (a) of this section, direct and counter-
cyclical payments may be made to the producers specified on the 
contract, but in an amount that is reduced by an amount equal to the sum 
of:
    (i) The per-acre market value of the fruits, vegetables, and wild 
rice, as determined by the State Committee, times the number of acres in 
violation, plus
    (ii) The direct and counter-cyclical payments for each such acre.
    (2) Producers must protect land enrolled in DCP from weeds, 
including noxious weeds, and erosion, including providing sufficient 
cover if determined necessary by the county committee. The first 
violation of this provision will result in a reduction in the direct 
payments for the farm by an amount equal to three times the cost of 
maintenance of the acreage, but not to exceed 50 percent of the total 
direct payments for the farm. The second violation of this provision 
will result in a reduction in the direct payments for the farm by an 
amount equal to three times the cost of maintenance of the acreage, not 
to exceed the total direct payments for the farm.