Page:United States Statutes at Large Volume 99 Part 2.djvu/336

 99 STAT. 1446

PUBLIC LAW 99-198—DEC. 23, 1985

primarily in the direct furtherance of a public function, as determined by the Secretary. ADVANCE DEFICIENCY AND DIVERSION PAYMENTS

SEC. 1002. Effective only for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, section 107C of the Agricultural Act of 1949 (7 U.S.C. 1445b-2) is amended to read as follows: "SEC. 107C. (a)(l) If the Secretary establishes an acreage limitation or set-aside program for any of the 1986 through 1990 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for such commodity for such crop, the Secretary— "(A) shall make advance deficiency payments available to producres who agree to participate in such program for the 1986 crop; and "(B) may make such pa3nnents available to such producers for each of the 1987 through 1990 crops. . " "(2) Advance deficiency payments under paragraph (1) shall be « made to the producer under the following terms and conditions: "•' "(A) Such payments may be made available in the form of— "(i) cash; "(ii) commodities owned by the Commodity Credit Corporation and negotiable certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of such payments may be made in commodities or such certificates in the case of any producer; or "(iii) any combination of clauses (i) and (ii). "(B) If pa3mients are made available to producers as provided A- for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of— ?7f "(i) such commodities; or "(ii) such certificates. ' -^ • & "(C) Such a certificate shall be redeemable for a period not to ' exceed 3 years from the date such certificate is issued. "(D) The Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is redeemed. Contracts. "(E) Such payments shall be made available as soon as prac' ticable after the producer enters into a contract with the Secretary to participate in such program. -' "(F) Such payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate participation in such program, except that such amount may not exceed an amount determined by multiplying— "(i) the estimated farm program acreage for the crop, by ' "(ii) the farm program payment yield for the crop, by '' ' "(iii) 50 percent of the projected payment rate, as determined by the Secretary. f "(G) If the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under this Act, is less than the amount paid to the producer as an advance " ' deficiency payment for the crop under this subsection, the producer shall refund an amount equal to the difference between the amount advanced and the amount finalUy deter-

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