[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: 7CFR1412.602]

[Page 405-406]
 
                          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. 1412.602  Fruit, vegetable and wild rice acreage reporting violations.

    (a)(1) If an acreage report of fruits, vegetables or wild rice 
planted on base acreage of a farm enrolled in DCP is inaccurate but 
within tolerance as provided in paragraph (b) of this section and CCC 
determines the producer made a good faith effort to comply with the 
provisions of this section, the producers shall accept a reduction in 
the direct and counter-cyclical payments for each such acre.
    (2) If an acreage report of fruits, vegetables or wild rice planted 
on base acreage of a farm enrolled in DCP is inaccurate and exceeds the 
tolerance as provided in paragraph (b) of this section, but CCC 
determines the producer made a good faith effort to comply with the 
provisions of this section, the producers shall accept a reduction in 
the direct and counter-cyclical payments for the farm in an amount equal 
to the sum of:
    (i) The direct and counter-cyclical payments for each such acre, 
plus
    (ii) Twice the average dollar value of the direct payment for the 
covered commodity and peanut base acreage reduced because of the fruit, 
vegetable, and wild rice plantings on such acreage, multiplied by the 
total number of acres in violation.
    (3) The contract shall be terminated if an acreage report of fruits, 
vegetables or wild rice planted on base acreage of a farm enrolled in 
DCP is inaccurate, and the county committee determines the producer did 
not make a good faith effort to comply with the provisions of this 
section. Upon such termination, producers subject to such contract 
shall:
    (i) Forfeit all rights to receive direct and counter-cyclical 
payments for the farm;
    (ii) Refund all direct and counter-cyclical payments received for 
the farm, plus interest as determined in accordance with part 1403 of 
this chapter; and
    (iii) Be ineligible for all program benefits according to part 718 
of this title.

[[Page 406]]

    (b) For the purposes of this section, tolerance is the amount by 
which the determined acreage may differ from the reported acreage and 
still be considered in compliance with program requirements. Tolerance 
for fruits, vegetables and wild rice plantings is 5 percent of the 
reported fruit, vegetable and wild rice acreage, not to exceed 50 acres.