(a) A revenue loss calculation and factor will determine the OFF Program payment.

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

(1) A factor will be applied to reduce the participant’s payment to ensure that total OFF Program payments are no more than 70 percent of the total revenue losses by all eligible OFF Program participants.

(2) If necessary, at the close of the OFF Program sign-up period, a national payment factor may be determined by the Secretary and announced if full payment of all approved OFF Program applications would result in payments in excess of available OFF Program funds, less a reserve amount of 3 percent. A Price Support Division SP Notice will be issued to announce the issuance of OFF and, if applicable, the factored rate.

(b)(1) The OFF Program payment calculation is:

(Calendar year 2014 producer certified gross revenue? Calendar year 2015 producer certified gross revenue)+ (Calendar year 2014 producer certified gross revenue? Calendar year 2016 producer certified gross revenue)= Total revenue loss for calendar year 2015 and calendar year 2016× 70%= OFF Program payment (subject to proration after sign-up, see paragraph (a)(2) of this section)

(2) If the producer did not have 2014 revenue, then 2019 revenue will be used, and the calculation will be:

(Calendar year 2019 producer certified gross revenue? Calendar year 2015 producer certified gross revenue)+ (Calendar year 2019 producer certified gross revenue? Calendar year 2016 producer certified gross revenue)= Total revenue loss for calendar year 2015 and calendar year 2016× 70%= OFF Program Payment (subject to proration after sign-up, see paragraph (a)(2) of this section)

(c) If there is no gross revenue loss determined for calendar year 2015 or calendar year 2016, the payment will be zero.