§1445. Tobacco price support levels for 1960 and subsequent years

Notwithstanding any of the provisions of section 1441 of this title: (a) For the 1960 crop of any kind of tobacco for which marketing quotas are in effect, or for which marketing quotas are not disapproved by producers, the support level in cents per pound shall be the level at which the 1959 crop of such kind of tobacco was supported, or if marketing quotas were disapproved for the 1959 crop of such kind of tobacco, the level at which the 1959 crop of such kind of tobacco would have been supported if marketing quotas had been in effect. (b) For the 1961 crop and each subsequent crop of any kind of tobacco for which marketing quotas are in effect, or for which marketing quotas are not disapproved by producers, the support level in cents per pound shall be determined by adjusting the support level for the 1959 crop of such kind of tobacco, or if marketing quotas were disapproved for the 1959 crop of such kind of tobacco, the level at which the 1959 crop of such kind of tobacco would have been supported if marketing quotas had been in effect, by multiplying such support level for the 1959 crop by the ratio of (i) the average of the index of prices paid by farmers, including wage rates, interest, and taxes, as defined in section 1301(a)(1)(C) of this title, for the three calendar years immediately preceding the calendar year in which the marketing year begins for the crop for which the support level is being determined to (ii) the average index of such prices paid by farmers, including wage rates, interest, and taxes for the calendar year 1959.

(c) If acreage poundage or poundage farm marketing quotas are in effect under section 1314c or 1314e of this title, (1) price support shall not be made available on tobacco marketed in excess of 103 per centum of the marketing quota (after adjustments) for the farm on which such tobacco was produced, and (2) for the purpose of price-support eligibility, tobacco carried over from one marketing year to another shall, when marketed, be considered tobacco of the then current crop.

(d) Notwithstanding the provisions of section 1423 of this title, if the Secretary determines that the supply of any grade of any kind of tobacco of a crop for which marketing quotas are in effect or are not disapproved by producers will likely be excessive, the Secretary, after prior consultation with the association through which price support for the grade and kind of tobacco is made available to producers, may reduce the support rate which would otherwise be established for such grade of tobacco after taking into consideration the effect such reduction may have on the supply and price of other grades of other kinds of quota tobacco: Provided, That the weighted average of the support rates for all eligible grades of such kind of tobacco shall, after such reduction, reflect not less than (1) 65 per centum of the increase in the support level for such kind of tobacco which would otherwise be established under this section, if the support level therefor is higher then the support level for the preceding crop, or (2) the support level for such kind of tobacco established under this section, if the support level therefor is not higher than the support level for the preceding crop. In determining whether the supply of any grade of any kind of tobacco of a crop will be excessive, the Secretary shall take into consideration the domestic supply, including domestic inventories, the amount of such tobacco pledged as security for price support loans, and anticipated domestic and export demand, based on the maturity, uniformity and stalk position of such tobacco.

(e) Omitted

(f) Notwithstanding the foregoing provisions of this section-

(1) For the 1984 crop of Flue-cured tobacco, the support level shall be the level in cents per pound at which the 1982 crop was supported.

(2) For the 1985 crop of Flue-cured tobacco, the support level shall be the level in cents per pound at which the 1982 crop was supported, plus or minus, respectively, the amount by which (A) the support level for the 1985 crop, as determined under subsection (b) of this section, is greater or less than (B) the support level for the 1984 crop, as determined under subsection (b) of this section, as that difference may be adjusted by the Secretary under subsection (d) of this section if the support level under clause (A) is greater than the support level under clause (B), except that the support level for the 1985 crop shall be the level in cents per pound at which the 1982 crop was supported if the support level as determined under subsection (b) of this section for the 1985 crop would not be more than 5 per centum greater than the support level as determined under subsection (b) of this section for the 1984 crop.

(3) For the 1984 crop of any kind of tobacco (other than Flue-cured tobacco) for which marketing quotas are in effect or are not disapproved by producers and for the 1985 crop of any kind of tobacco (other than Flue-cured and Burley tobacco) for which marketing quotas are in effect or are not disapproved by producers, the Secretary shall establish the support level at such level as will not narrow the normal price support differential between Flue-cured tobacco and such other kind of tobacco. Before establishing the support level under this paragraph for any such kind of tobacco the Secretary shall publish in the Federal Register a notice of the level the Secretary proposes to establish and give an opportunity for the public to comment on the proposal. In determining the level to be established under this paragraph for a particular kind of tobacco, the Secretary shall take into consideration the cost of producing such kind of tobacco, the supply and demand conditions for such kind of tobacco, the comments received in response to the public notice of the proposal, and such other relevant factors as the Secretary determines appropriate.

(4) For the 1985 and 1986 crops of Burley tobacco, the support level shall be $1.488 per pound.

(5) For the 1986 crop of Flue-cured tobacco, the support level shall be $1.438 per pound.

(6)(A) Except as provided in subparagraph (B), for the 1986 and each subsequent crop of any kind of tobacco (other than Flue-cured and Burley tobacco) for which marketing quotas are in effect or are not disapproved by producers, the support level shall be the level in cents per pound at which the immediately preceding crop was supported, plus or minus, respectively, the amount by which-

(i) the support level for the crop for which the determination is being made, as determined under subsection (b) of this section; is greater or less than

(ii) the support level for the immediately preceding crop, as determined under subsection (b) of this section,

as that difference may be adjusted by the Secretary under subsection (d) of this section if the support level under clause (i) is greater than the support level under clause (ii).

(B) Notwithstanding subparagraph (A) and subsection (d) of this section, if requested by the board of directors of an association through which price support for the respective kind of tobacco specified in subparagraph (A) is made available to producers, the Secretary may reduce the support level for such kind of tobacco to the extent requested by the association to more accurately reflect the market value and improve the marketability of such tobacco.

(7)(A) For the 1987 and each subsequent crop of Flue-cured and Burley tobacco for which marketing quotas are in effect or are not disapproved by producers, the support level shall be the level in cents per pound at which the immediately preceding crop was supported, plus or minus, respectively, an adjustment of not less than 65 percent nor more than 100 percent of the total, as determined by the Secretary after taking into consideration the supply of the kind of tobacco involved in relation to demand, of-

(i) 66.7 percent of the amount by which-

(I) the average price received by producers for Flue-cured and Burley tobacco, respectively, on the United States auction markets, as determined by the Secretary, during the 5 marketing years immediately preceding the marketing year for which the determination is being made, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period, is greater or less than

(II) the average price received by producers for Flue-cured and Burley tobacco, respectively, on the United States auction markets, as determined by the Secretary, during the 5 marketing years immediately preceding the marketing year prior to the marketing year for which the determination is being made, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period; and

(ii) 33.3 percent of the change, expressed as a cost per pound of tobacco, in the index of prices paid by tobacco producers from January 1 to December 31 of the calendar year immediately preceding the year in which the determination is made.

(B) For purposes of subparagraph (A)-

(i) the average market price for Burley tobacco for the 1985 marketing year shall be reduced by $0.039 per pound;

(ii) the average market price for Burley tobacco for the 1984 and each prior applicable marketing year shall be reduced by $0.30 per pound;

(iii) the average market price for Flue-cured tobacco for the 1985 marketing year shall be reduced by $0.25 per pound;

(iv) the average market price for Flue-cured tobacco for the 1984 and each prior applicable marketing year shall be reduced by $0.30 per pound; and

(v) the index of prices paid by tobacco producers shall include items representing general, variable costs of producing tobacco, as determined by the Secretary, but shall not include the cost of land, risk, overhead, management, purchase or leasing of quotas, marketing contributions or assessments, and other costs not directly related to the production of tobacco.

(g)(1) Effective only for each of the 1994 through 1998 crops of tobacco for which price support is made available under this Act, each producer and purchaser of such tobacco, and each importer of the same kind of tobacco, shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to-

(A) in the case of a producer or purchaser of domestic tobacco, .5 percent of the national price support level for each such crop; and

(B) in the case of an importer of tobacco, 1 percent of the national support price for the same kind of tobacco;

as provided for in this section.

(2) Such producer, purchaser, and importer assessments shall be-

(A) collected in the same manner as provided for in section 1445–1(d)(2) or 1445–2(d)(3) of this title, as applicable; and

(B) enforced in the same manner as provided in section 1445–1(h) or 1445–2(j) of this title, as applicable.

(3) The Secretary may enforce this subsection in the courts of the United States.

(Oct. 31, 1949, ch. 792, title I, §106, as added Pub. L. 86–389, §1, Feb. 20, 1960, 74 Stat. 6 ; amended Pub. L. 89–12, §3, Apr. 16, 1965, 79 Stat. 72 ; Pub. L. 92–10, §3, Apr. 14, 1971, 85 Stat. 27 ; Pub. L. 97–218, title I, §102, July 20, 1982, 96 Stat. 201 ; Pub. L. 98–59, §1, July 25, 1983, 97 Stat. 296 ; Pub. L. 98–180, title II, §202, Nov. 29, 1983, 97 Stat. 1144 ; Pub. L. 99–157, §6(a), Nov. 15, 1985, 99 Stat. 818 ; Pub. L. 99–272, title I, §§1102, 1105(b), Apr. 7, 1986, 100 Stat. 84 , 90; Pub. L. 100–203, title I, §1104(a), Dec. 22, 1987, 101 Stat. 1330–4 ; Pub. L. 101–508, title I, §1105(f), Nov. 5, 1990, 104 Stat. 1388–6 ; Pub. L. 103–66, title I, §1106(b)(1), Aug. 10, 1993, 107 Stat. 321 ; Pub. L. 103–465, title IV, §422(b), Dec. 8, 1994, 108 Stat. 4964 .)

References in Text

This Act, referred to in subsec. (g)(1), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051 , as amended, known as the Agricultural Act of 1949, which is classified principally to this chapter (§1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.

Amendments

1994-Subsec. (g)(1). Pub. L. 103–465, §422(b)(1)(A), added par. (1) and struck out former par. (1) which read as follows: "Effective only for each of the 1991 through 1995 crops of tobacco for which price support is made available under this Act, producers and purchasers of such tobacco shall each remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to .5 percent of the national price support level for each such crop as otherwise provided for in this section."

Subsec. (g)(2). Pub. L. 103–465, §422(b)(1)(B), substituted ", purchaser, and importer" for "assessments and purchaser".

Subsec. (h). Pub. L. 103–465, §422(b)(2), struck out subsec. (h) which, effective only for 1994 through 1998 crops of tobacco, required importer of tobacco produced outside United States to remit to Commodity Credit Corporation a nonrefundable marketing assessment and provided for computation and payment of assessment and for penalties for failure to comply.

1993-Subsec. (h). Pub. L. 103–66 added subsec. (h).

1990-Subsec. (g). Pub. L. 101–508 added subsec. (g).

1987-Subsec. (f)(8). Pub. L. 100–203 temporarily (see Effective and Termination Dates of 1987 Amendment note below) added par. (8) which read as follows:

"(A) Notwithstanding any other provision of this subsection, in the case of each of the 1988 and 1989 crops of any kind of tobacco, the Secretary shall reduce the support level for such crop by an amount equal to 1.4 percent of the level otherwise established under this subsection. Any such reduction shall not be taken into consideration in determining the support level for a subsequent crop of tobacco.

"(B) In lieu of making any such reduction, the Secretary may impose assessments on the producers and purchasers in an amount sufficient to realize a reduction in outlays equal to the amount that would have been achieved as a result of the reduction required under subparagraph (A). Such assessments shall not apply to purchasers if it is judicially determined that the imposition of the purchaser assessment will adversely affect the contracts entered into under section 1445–3 of this title."

1986-Subsec. (c)(1). Pub. L. 99–272, §1105(b), substituted "103 per centum" for "110 per centum".

Subsec. (f)(4) to (7). Pub. L. 99–272, §1102(a), added pars. (4) to (7) and struck out former pars. (4) and (5) which read as follows:

"(4) For the 1985 crop of Burley tobacco and for the 1986 and each subsequent crop of any kind of tobacco for which marketing quotas are in effect or are not disapproved by producers, the support level shall be the level in cents per pound at which the immediately preceding crop was supported (or if the level for that crop was adjusted under subsection (g) of this section the level at which such crop would have been supported without regard to any adjustment under subsection (g) of this section), plus or minus, respectively, the amount by which (A) the support level for the crop for which the determination is being made, as determined under subsection (b) of this section, is greater or less than (B) the support level for the immediately preceding crop, as determined under subsection (b) of this section, as that difference may be adjusted by the Secretary under subsection (d) of this section if the support level under clause (A) is greater than the support level under clause (B).

"(5) For the 1985 crop of Burley tobacco, notwithstanding paragraph (4) of this section, the support level shall be $1.488 per pound."

Subsec. (g). Pub. L. 99–272, §1102(b), struck out subsec. (g) which related to the designation of certain grades of Flue-cured tobacco that the Secretary determined to be of such quantity or quality as to impair their marketability, and further reduction of their support rates to reflect their market value.

1985-Subsec. (f)(5). Pub. L. 99–157 added par. (5).

1983-Subsec. (e). Pub. L. 98–59 temporarily added subsec. (e). See Effective and Termination Dates of 1983 Amendments note below.

Subsecs. (f), (g). Pub. L. 98–180 added subsecs. (f) and (g).

1982-Subsec. (d). Pub. L. 97–218 added subsec. (d).

1971-Subsec. (c). Pub. L. 92–10 inserted introductory reference to section 1314e of this title relating to farm poundage quotas for burley tobacco, in item (1) struck out "(120 per centum in the case of Burley tobacco for the first year for which marketing quotas are made effective under this section)" after "110 per centum" and inserted "(after adjustments)" after "marketing quota", and in item (2) struck out "to avoid marketings in excess of the farm marketing quota" after "another".

1965-Subsec. (c). Pub. L. 89–12 added subsec. (c).

Effective Date of 1994 Amendment

Amendment by Pub. L. 103–465 effective Sept. 13, 1995, see section 422(e) of Pub. L. 103–465, set out as a note under section 1314i of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as a note under section 511r of this title.

Effective and Termination Dates of 1987 Amendment

Section 1104(a) of Pub. L. 100–203 provided that the amendment made by Pub. L. 100–203 is effective only for 1988 and 1989 crops of tobacco.

Effective Date of 1986 Amendment

Section 1102(a) of Pub. L. 99–272 provided that the amendment made by that section is effective for 1985 and subsequent crops of tobacco.

Section 1102(b) of Pub. L. 99–272 provided that the amendment made by that section is effective for 1986 and subsequent crops of tobacco.

Section 1105(b) of Pub. L. 99–272 provided that the amendment made by that section is effective for 1986 and subsequent crops of tobacco.

Section 1112 of subtitle B (§§1101–1112) of title I of Pub. L. 99–272 provided that: "Except as otherwise provided in this subtitle, this subtitle and the amendments made by this subtitle [enacting sections 1314g, 1314h, and 1445–3 of this title, amending sections 511d, 1301, 1312, 1314c, 1314e, 1372, 1445, 1445–1, and 1445–2 of this title, and enacting provisions set out as notes under sections 1301, 1314c, 1314e, 1314g, 1314h, 1372, 1445, 1445–1, and 1445–2 of this title] shall become effective on the date of enactment of this subtitle [Apr. 7, 1986]."

Effective and Termination Dates of 1983 Amendments

Section 202 of Pub. L. 98–180 provided that the amendment made by that section is effective for 1984 and subsequent crops of tobacco.

Section 1 of Pub. L. 98–59 provided that the amendment made by that section is effective for 1983 crop of tobacco.

Effective Date of 1982 Amendment

Section 102 of Pub. L. 97–218 provided that the amendment made by that section is effective for 1982 and subsequent crops of tobacco.

Waiver Authority of President

Section 422(c) of Pub. L. 103–465 provided that: "The President may waive the application to imported tobacco of section 106(g), 106A, or 106B of the Agricultural Act of 1949 (7 U.S.C. 1445(g), 1445–1, or 1445–2) or the amendment made in subsection (c) of section 1106 of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103–66; 107 Stat. 323) [amending section 511r of this title] if the President determines that the waiver is necessary or appropriate pursuant to an international agreement entered into by the United States."

[For effective date of section 422(c) of Pub. L. 103–465, set out above, see Effective Date of 1994 Amendment note above.]

Tobacco Program Improvements: Congressional Findings and Statement of Purposes

Section 1101 of subtitle B (§§1101–1112) of title I of Pub. L. 99–272 provided that:

"(a) Findings.-Congress finds that-

"(1) the maintenance of a viable tobacco price support and production adjustment program is in the interests of tobacco producers, purchasers of tobacco, persons employed directly or indirectly by the tobacco industry, and the localities and States whose economies and tax bases are dependent on the tobacco industry;

"(2) the present tobacco price support program is in jeopardy and in need of reform;

"(3) under present law, the levels of price support for tobacco have resulted in market prices for tobacco that are not competitive on the world market;

"(4) as a consequence, extremely large quantities of domestic tobacco have been put under loan and placed in the inventories of the producer-owned cooperative marketing associations that administer the tobacco price support program;

"(5) the increased inventories have led to a significant increase in the assessments producers are required to pay to maintain the tobacco price support program on a 'no net cost' basis;

"(6) such increasingly large assessments are creating a severe hardship on producers;

"(7) the existence of such large inventories poses a threat to the orderly marketing of future crops of tobacco;

"(8) inventories of producer associations must be significantly reduced or the tobacco price support program will collapse;

"(9) the Commodity Credit Corporation is threatened with substantial losses on disposition of these inventories should the tobacco price support program collapse;

"(10) it is imperative that such excess inventories of tobacco be disposed of, under the supervision of the Secretary of Agriculture, in a manner that-

"(A) will not disrupt the orderly marketing of new tobacco crops;

"(B) will minimize any losses to the Federal Government; and

"(C) will be fair and equitable to all tobacco producers and purchasers;

"(11) the mutual cooperation of tobacco producers, tobacco purchasers, producer associations, and the Secretary of Agriculture is necessary-

"(A) to restore the tobacco price support program to a stable condition; and

"(B) to prevent substantial losses to taxpayers that would result from the collapse of the program;

"(12) restoration of stability to the tobacco price support program through a sharing of the cost of that program by purchasers of tobacco along with producers of tobacco is necessary to prevent undue burdens on, or obstruction of, interstate and foreign commerce in tobacco; and

"(13) the system of grading tobacco should be thoroughly reviewed to ensure that grades are assigned to tobacco that properly state the quality of such tobacco.

"(b) Purposes.-The purposes of this subtitle [see Effective Date of 1986 Amendment note above] are-

"(1) to encourage cooperation among tobacco producers, tobacco purchasers, and the Secretary of Agriculture in reducing tobacco price support levels, assessment costs, the size of inventories of producer associations, and the exposure of taxpayers to large budget outlays;

"(2) to adjust the method by which price support levels and production quotas are calculated to reflect actual market conditions;

"(3) to facilitate the purchase and sale of Flue-cured and Burley tobacco presently in the inventories of producer associations through which producers of Flue-cured and Burley tobacco are provided price support;

"(4) to provide that purchasers and producers of domestic tobacco share equally in the cost of maintaining the tobacco price support program at no net cost to the taxpayers; and

"(5) to expedite reform of the system of grading tobacco so that grades assigned to tobacco more accurately reflect the quality of such tobacco."

Rulemaking Procedures

Secretary of Agriculture to implement amendments by Pub. L. 99–272 without regard to provisions requiring notice and other procedures for public participation in rulemaking contained in section 553 of Title 5, Government Organization and Employees, or in any other directive of the Secretary, see section 1108(c) of Pub. L. 99–272, set out as a note under section 1301 of this title.

Burley Tobacco Imports; Effect on Price-Support Program; Review by Secretary of Agriculture

Secretary of Agriculture to review the effects of imports of Burley tobacco on the Department's Burley-tobacco price-support program whenever the level of price support for any crop of Burley tobacco is increased by less than 65 per centum of the amount that it would have otherwise been increased if the level of price support would have been determined in accordance with subsec. (b) of this section, see section 625 of this title.

Tobacco Program Cost

Pub. L. 97–98, title XI, §1109, Dec. 22, 1981, 95 Stat. 1266 , required Secretary of Agriculture, by January 1982, to promulgate regulations and policies necessary to carry out intent of Congress that tobacco price support and production adjustment program result in no net cost to taxpayers other than such administrative expense as was incidental to implementation of any commodity program.

Section Referred to in Other Sections

This section is referred to in section 625 of this title.