[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: 7CFR1412.504]

[Page 404]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1412_DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA BUYOUT 
 
Subpart E_Financial Considerations Including Sharing Direct and Counter-
                            Cyclical Payments
 
Sec. 1412.504  Sharing of contract payments.

    (a) Each eligible producer on a farm shall be given the opportunity 
to annually enroll in a contract and receive direct and counter-cyclical 
payments determined to be fair and equitable as agreed to by all the 
producers on the farm and approved by the county committee.
    (1) Each producer must provide a copy of their written lease to the 
county committee and, in the absence of a written lease, must provide to 
the county committee a complete written description of the terms and 
conditions of any oral agreement or lease.
    (2) A lease will be considered to be a cash lease if the lease 
provides for only a guaranteed sum certain cash payment, or a fixed 
quantity of the crop (for example, cash, pounds, or bushels per acre).
    (3) If a lease contains provisions that require the payment of rent 
on the basis of the amount of crop produced or the proceeds derived from 
the crop, or the interest such producer would have had if the crop had 
been produced, or combination thereof, such agreement shall be 
considered to be a share lease. The leasing of grazing or haying 
privileges is not considered cash leasing.
    (4) If a lease provides for the greater of a guaranteed amount or 
share of the crop or crop proceeds, such agreement shall be considered a 
share lease if the lease provides for both:
    (i) A guaranteed amount such as a fixed dollar amount or quantity; 
and
    (ii) A share of the crop proceeds.
    (5) If the lease is a cash lease, the landlord is not eligible for 
direct or counter-cyclical payments.
    (b) When contract acreage is leased on a share basis, neither the 
landlord nor the tenant shall receive 100 percent of the contract 
payment for the farm.
    (c) CCC will approve a contract for enrollment and approve the 
division of payment when all of the following apply:
    (1) The landlords, tenants and sharecroppers sign the contract and 
agree to the payment shares shown on the contract;
    (2) CCC determines that the interests of tenants and sharecroppers 
are being protected; and
    (3) CCC determines that the payment shares shown on the contract do 
not circumvent the provisions of part 1400 of this chapter.