7 CFR § 1401.2 - Payments in lieu of cash payments.
(a) CCC will, in accordance with applicable program provisions, make payments in a form other than in cash to persons who otherwise are eligible to receive a cash payment from CCC. Further, subject only to statutory prohibition and notwithstanding any provisions of the contract to participate in a program administered by CCC or FSA, CCC may: at its option, make payments in a form other than in cash.
(b) As determined by CCC, payments in a form other than in cash may be made in the following manner:
(1) By delivery of a commodity to a person at a warehouse or other similar facility;
(2) By transfer of negotiable warehouse receipts;
(3) By the issuance of certificates which CCC shall redeem in accordance with this part;
(4) By the acquisition and use of commodities pledged as collateral for CCC price support loans;
(5) By the use of commodities owned by CCC; and
(6) By such other methods as CCC determines appropriate, including methods to enable the producer to receive payments in order to assure that the producer receives the same total return as if the payments had been made in cash.
(c) The value of the payments made in any manner set forth in paragraph (b) shall be determined by CCC.
(d) Notwithstanding any other provision of this part, CCC may, with respect to producers who are members of a cooperative marketing association which has been determined in accordance with part 1425 of this title to be eligible to receive price support on behalf of its producer-members, enter into agreements with such producers and such cooperatives to facilitate the making of payments to such producers. Such agreements may include a provision which allows a producer to make available for the use of the cooperative the value of the non-cash payment which would otherwise be made to the producer.