[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1412.406]

[Page 395-396]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1412_DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA BUYOUT 
 
    Subpart D_Direct and Counter-Cyclical Program Contract Terms and 
Enrollment Provisions for Covered Commodities 2002 through 2007 and for 
                        Peanuts 2003 through 2007
 
Sec. 1412.406  Succession-in-interest to a direct and counter-cyclical program 

contract.

    (a) A succession in interest to a contract may be permitted if there 
has been a change in the operation of a farm, such as:
    (1) A sale of land;
    (2) A change of operator or producer, including a change in a 
partnership

[[Page 396]]

that increases or decreases the number of partners;
    (3) A foreclosure, bankruptcy, or involuntary loss of the farm;
    (4) A change in producer shares to reflect changes in the producer's 
share of the crop(s) that were originally approved on the contract; or
    (5) As otherwise determined by the Deputy Administrator, if the 
succession will not adversely affect nor defeat the purpose of the 
program.
    (b) A succession in interest to the contract is not permitted if CCC 
determines that the change:
    (1) Results in a violation of the landlord-tenant provisions set 
forth in Sec. 1412.505; or
    (2) Adversely affects or otherwise defeats the purpose of the 
program.
    (c) If a producer who is entitled to receive direct and counter-
cyclical payments dies, becomes incompetent, or is otherwise unable to 
receive the payment, CCC will make the payment in accordance with part 
707 of this title.
    (d) A producer or owner must inform the county committee of changes 
in interest in base acres on the farm not later than:
    (1) August 1 of the fiscal year in which the change occurs if the 
change requires a reconstitution be completed in accordance with part 
718 of this title; or
    (2) September 30 of the fiscal year in which the change occurs if 
the change does not require a reconstitution be completed in accordance 
with part 718 of this title.
    (e)(1) In any case in which either a direct or counter-cyclical 
payment has previously been made to a predecessor, such payment shall 
not be paid to the successor unless payment has been refunded by the 
predecessor, or a debt for any amount not refunded to CCC has been 
established for the predecessor.
    (2) A succession in interest shall not increase the liability of 
CCC.

[67 FR 64751, Oct. 21, 2002, as amended at 68 FR 37939, June 26, 2003]