§1359. Marketing penalties

(a) The marketing of any peanuts in excess of the marketing quota for the farm on which such peanuts are produced, or the marketing of peanuts from any farm for which no acreage allotment was determined, shall be subject to a penalty at a rate equal to 75 per centum of the support price for peanuts for the marketing year (August 1 to July 31). Such penalty shall be paid by the person who buys or otherwise acquires the peanuts from the producer, or, if the peanuts are marketed by the producer through an agent, the penalty shall be paid by such agent, and such person or agent may deduct an amount equivalent to the penalty from the price paid to the producer. The Secretary may require collection of the penalty upon a portion of each lot of peanuts marketed from the farm equal to the proportion which the acreage of peanuts in excess of the farm-acreage allotment is of the total acreage of peanuts on the farm. If the person required to collect the penalty fails to collect such penalty, such person and all persons entitled to share in the peanuts marketed from the farm or the proceeds thereof shall be jointly and severally liable for the amount of the penalty. All funds collected pursuant to this section shall be deposited in a special deposit account with the Treasurer of the United States and such amounts as are determined, in accordance with regulations prescribed by the Secretary, to be penalties incurred shall be transferred to the general fund of the Treasury of the United States. Amounts collected in excess of determined penalties shall be paid to such producers as the Secretary determines, in accordance with regulations prescribed by him, bore the burden of the payment of the amount collected. Such special account shall be administered by the Secretary and the basis for, the amount of, and the producer entitled to receive a payment from such account, when determined in accordance with regulations prescribed by the Secretary, shall be final and conclusive. Peanuts produced in a calendar year in which marketing quotas are in effect for the marketing year beginning therein shall be subject to such quotas even though the peanuts are marketed prior to the date on which such marketing year begins. If any producer falsely identifies or fails to account for the disposition of any peanuts, an amount of peanuts equal to the normal yield of the number of acres harvested in excess of the farm acreage allotment shall be deemed to have been marketed in excess of the marketing quota for the farm, and the penalty in respect thereof shall be paid and remitted by the producer. If any amount of peanuts produced on one farm is falsely identified by a representation that such peanuts were produced on another farm, the acreage allotments next established for both such farms shall be reduced by that percentage which such amount was of the respective farm marketing quotas, except that such reduction for any such farm shall not be made if the Secretary through the local committees finds that no person connected with such farm caused, aided, or acquiesced in such marketing; and if proof of the disposition of any amount of peanuts is not furnished as required by the Secretary, the acreage allotment next established for the farm on which such peanuts are produced shall be reduced by a percentage similarly computed. Notwithstanding any other provisions of this subpart, no refund of any penalty shall be made because of peanuts kept on the farm for seed or for home consumption.

(b) The provisions of this subpart shall not apply, beginning with the 1959 crop, to peanuts produced on any farm on which the acreage harvested for nuts is one acre or less provided the producers who share in the peanuts produced on such farm do not share in the peanuts produced on any other farm. If the producers who share in the peanuts produced on a farm on which the acreage harvested for nuts is one acre or less also share in the peanuts produced on other farm(s) the peanuts produced on such farm on acreage in excess of the allotment, if any, determined for the farm shall be considered as excess acreage and the marketing penalties provided by subsection (a) of this section shall apply.

(c) The word "peanuts" for the purposes of this chapter shall mean all peanuts produced, excluding any peanuts which it is established by the producer or otherwise, in accordance with regulations of the Secretary, were not picked or threshed either before or after marketing from the farm, or were marketed by the producer before drying or removal of moisture from such peanuts either by natural or artificial means for consumption exclusively as boiled peanuts.

(d) The person liable for payment or collection of the penalty provided by this section shall be liable also for interest thereon at the rate of 6 per centum per annum from the date the penalty becomes due until the date of payment of such penalty.

(e) Until the amount of the penalty provided by this section is paid, a lien on the crop of peanuts with respect to which such penalty is incurred, and on any subsequent crop of peanuts subject to marketing quotas in which the person liable for payment or the penalty has an interest shall be in effect in favor of the United States.

(Feb. 16, 1938, ch. 30, title III, §358d, formerly §359, as added Apr. 3, 1941, ch. 39, §1, 55 Stat. 90 ; amended July 9, 1942, ch. 497, §1(2), (3), 56 Stat. 653 ; Aug. 1, 1947, ch. 445, §2, 61 Stat. 721 ; July 3, 1948, ch. 827, title II, §207(d), 62 Stat. 1257 ; Mar. 31, 1950, ch. 81, §6(a), 64 Stat. 42 ; Apr. 12, 1951, ch. 28, §2, 65 Stat. 31 ; Mar. 28, 1952, ch. 110, 66 Stat. 27 ; May 28, 1956, ch. 327, title III, §§305, 306, 70 Stat. 205 ; Pub. L. 85–127, Aug. 13, 1957, 71 Stat. 344 ; Pub. L. 85–717, §2, Aug. 21, 1958, 72 Stat. 709 ; Pub. L. 95–113, title VIII, §804, Sept. 29, 1977, 91 Stat. 946 ; Pub. L. 96–31, July 7, 1979, 93 Stat. 81 ; Pub. L. 97–98, title VII, §704, Dec. 22, 1981, 95 Stat. 1251 ; Pub. L. 99–198, title VII, §704, Dec. 23, 1985, 99 Stat. 1435 ; Pub. L. 101–82, title VI, §601, Aug. 14, 1989, 103 Stat. 586 ; renumbered §358d and amended Pub. L. 102–237, title I, §117(a), (b)(2)(C), Dec. 13, 1991, 105 Stat. 1841 .)

Amendments

1991-Subsec. (b). Pub. L. 102–237, §117(b)(2)(C)(i), made a technical amendment to the reference to subsection (a) of this section to reflect a change in the reference to the corresponding provision of the original act.

Subsecs. (m)(1)(C), (i), (ii), (p)(1), (r)(2)(A). Pub. L. 102–237, §117(b)(2)(C)(ii), made a technical amendment to the reference to section 1445c–2 of this title to reflect the renumbering of the corresponding section of the original act.

1989-Subsec. (p)(2)(B)(i). Pub. L. 101–82, §601(1), which temporarily directed that "(less such reasonable allowances for shrinkage as the Secretary may prescribe)" be struck out was executed by striking out "(less such reasonable allowance for shrinkage as the Secretary may prescribe)" after "in all of the following quantities" to reflect the probable intent of Congress. See Effective and Termination Dates of 1989 Amendment note below.

Subsec. (p)(2)(B)(iv). Pub. L. 101–82, §601(2), added cl. (iv).

1985-Subsecs. (m) to (s). Pub. L. 99–198 temporarily added subsecs. (m) to (s). See Effective and Termination Dates of 1985 Amendment note below.

1981-Subsecs. (f) to (l). Pub. L. 97–98 temporarily added subsecs. (f) to (l). See Effective and Termination Dates of 1981 Amendment note below.

1979-Subsec. (k). Pub. L. 96–31 temporarily added subsec. (k). See Effective and Termination Dates of 1979 Amendment note below.

1977-Subsec. (a). Pub. L. 95–113, §804(1)–(3), temporarily substituted "penalty at a rate equal to 120 per centum of the support price for quota peanuts" for "penalty at a rate equal to 75 per centum of the support price for peanuts" and "farm yield" for "normal yield" and inserted provision that the marketing of any additional peanuts from a farm be subject to the 120 per centum penalty unless the peanuts, in accordance with regulations established by the Secretary, are placed under loan at the additional loan rate under the loan program made available under section 1445c(b) of this title and not redeemed by the producers or are marketed under contracts between handlers and producers pursuant to the provisions of subsection (i) of this section. See Effective and Termination Dates of 1977 Amendment note below.

Subsecs. (f) to (j). Pub. L. 95–113, §804(4), temporarily added subsecs. (f) to (j). See Effective and Termination Dates of 1977 Amendment note below.

1958-Subsec. (b). Pub. L. 85–717 provided that after 1959 the one acre exemption applies only if producers do not share in peanuts produced on any other farm.

1957-Subsec. (c). Pub. L. 85–127 inserted ", or were marketed by the producer before drying or removal of moisture from such peanuts either by natural or artificial means for consumption exclusively as boiled peanuts".

1956-Subsec. (a). Act May 28, 1956, §305, substituted "75 per centum of the support price for peanuts for the marketing year (August 1–July 31)" for "50 per centum of the basic rate of the loan (calculated to the nearest tenth of a cent) for farm marketing quota peanuts for the marketing year August 1–July 31".

Subsecs. (d), (e). Act May 28, 1956, §306, added subsecs. (d) and (e). Former subsecs. (d) and (e) were repealed by act July 3, 1948.

1952-Subsecs. (f) to (i). Act Mar. 28, 1952, repealed subsecs. (f) to (i), which permitted farmers to grow peanuts for oil in excess of marketing quotas.

1951-Subsec. (a). Act Apr. 12, 1951, inserted sentence beginning "Notwithstanding any other".

Subsec. (g). Act Apr. 12, 1951, established 1948 as the year to be referred to in cases where no peanuts were harvested in 1947, and provided that the Secretary may authorize peanut buyers to purchase excess peanuts from producers at specified price levels.

1950-Subsecs. (g) to (i). Act Mar. 31, 1950, added subsecs. (g) to (i).

1948-Subsecs. (d), (e). Act July 3, 1948, repealed subsecs. (d) and (e) which related to referendums and appropriations.

1947-Act Aug. 1, 1947, amended section generally, changing the penalty for excess marketing of peanuts from a flat penalty of 3 cents per pound to 50 per cent of the basic loan rate and substituted last two sentences for former last sentence which provided a $25 penalty per acre for falsely indemnifying or failing to account for peanuts produced in subsec. (a), striking out subsec. (b) exempting peanuts to be sold and crushed for oil or used for seed from excess marketing penalty, and redesignating subsecs. (c) to (g) as (b) to (f), respectively.

1942-Subsecs. (b), (d). Act July 9, 1942, amended subsecs. (b) and (d).

Effective and Termination Dates of 1989 Amendment

Section 601 of Pub. L. 101–82 provided that the amendment made by that section is effective only for 1988 through 1990 crops of peanuts.

Effective and Termination Dates of 1985 Amendment

Section 704 of Pub. L. 99–198 provided that the amendment made by that section is effective only for 1986 through 1990 crops of peanuts.

Effective and Termination Dates of 1981 Amendment

Section 704 of Pub. L. 97–98 provided that the amendment made by that section is effective only for 1982 through 1985 crops of peanuts.

Effective and Termination Dates of 1979 Amendment

Pub. L. 96–31 provided that the amendment made by Pub. L. 96–31 is effective for 1978 through 1981 crops of peanuts.

Effective and Termination Dates of 1977 Amendment

Section 804 of Pub. L. 95–113 provided that the amendment made by that section is effective for 1978 through 1981 crops of peanuts.

Effective Date of 1957 Amendment

Pub. L. 85–127, as amended by Pub. L. 86–358, Sept. 22, 1959, 73 Stat. 642 ; Pub. L. 87–239, Sept. 14, 1961, 75 Stat. 512 ; Pub. L. 88–76 July 25, 1963, 77 Stat. 92; Pub. L. 89–321, title VII, §704, Nov. 3, 1965, 79 Stat. 1210 ; Pub. L. 90–559, §1(1), Oct. 11, 1968, 82 Stat. 996 ; Pub. L. 91–524, title VIII, §802, Nov. 30, 1970, 84 Stat. 1381 , provided that the amendment made by Pub. L. 85–127 is effective for 1957 and subsequent crops of peanuts.

Effective Date of 1956 Amendment

Section 305 of act May 28, 1956, provided that the amendment made by that section is effective beginning with 1956 crop.

Effective Date of 1948 Amendment

Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under section 1301 of this title.

Savings Provision

Act Mar. 28, 1952, which repealed subsecs. (f) to (i), also provided that the repeal should not affect rights or obligations arising under marketing-quota or price support operations with respect to 1951 or prior crops of peanuts.

Transfer of Functions

Functions of all officers, agencies, and employees of Department of Agriculture transferred, with certain exceptions, to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this title.

Functions of all officers of Department of the Treasury, and functions of all agencies and employees of such Department, with certain exceptions, transferred to Secretary of the Treasury, with power vested in him to authorize their performance or performance of any of his functions, by any of such officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5, Government Organization and Employees. Treasurer of the United States, referred to in this section, is an officer of Department of the Treasury.

Administration of program of Commodity Credit Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, §501, 11 F.R. 7877, 60 Stat. 1100, set out in the Appendix to Title 5.

Exceptions From Transfer of Functions

Functions of Corporations of Department of Agriculture, boards of directors and officers of such corporations; Advisory Board of Commodity Credit Corporation; and Farm Credit Administration or any agency, officer, or entity of, under, or subject to supervision of said Administration excepted from functions of officers, agencies, and employees transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219, 67 Stat. 633, set out as a note under section 2201 of this title.

Inapplicability of Section

Subsections (a), (b), (d), and (e) of this section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(a)(1)(D) of this title.

Pub. L. 101–624, title VIII, §801(3), Nov. 28, 1990, 104 Stat. 3459 , provided that subsecs. (a), (b), (d), and (e) of this section are inapplicable to 1991 through 1995 crops of peanuts.

Section 701(3) of Pub. L. 99–198 provided that subsecs. (a), (b), (d), and (e) of this section are inapplicable to 1986 through 1990 crops of peanuts.

Section 701(3) of Pub. L. 97–98 provided that subsecs. (a), (b), (d), and (e) of this section are inapplicable to 1982 through 1985 peanut crops.

Section Referred to in Other Sections

This section is referred to in sections 1358–1, 1359a, 7301 of this title.