The term "contract commodity" refers to specific agricultural products that are eligible for government contracts or programs. According to 7 USCS § 7202, these commodities include wheat, corn, grain sorghum, barley, oats, upland cotton, and rice. Understanding this term is essential for farmers and agricultural businesses involved in federal programs aimed at stabilizing agricultural markets.
In legal practice, the term "contract commodity" is primarily used in the context of agricultural law and federal programs. It is relevant in areas such as:
Farmers may need to complete specific forms or applications to participate in programs related to contract commodities. Users can utilize legal templates from US Legal Forms to navigate these processes effectively.
Here are a couple of examples of abatement:
Example 1: A farmer growing corn applies for a federal subsidy program designed for contract commodities. By registering their corn crop, they can receive financial assistance during market fluctuations.
Example 2: A cooperative of wheat farmers enters into a government contract to stabilize wheat prices, ensuring a steady income for its members. (hypothetical example)
Key legislation includes:
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | State-specific subsidies may apply to contract commodities. |
| Texas | Additional state regulations may influence eligibility for federal programs. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Commodity | A basic good used in commerce that is interchangeable with others of the same type. | Contract commodities are specifically defined for government programs. |
| Subsidy | Financial assistance granted by the government to support a specific sector. | Contract commodities often qualify for subsidies under federal programs. |
If you are a farmer or involved in agriculture and believe you may qualify for programs related to contract commodities, consider the following steps:
If your situation is complex, seeking professional legal help may be necessary.
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| Attribute | Details |
|---|---|
| Eligible Commodities | Wheat, corn, grain sorghum, barley, oats, upland cotton, rice |
| Typical Fees | Varies by program and state |
| Jurisdiction | Federal and state agricultural laws |