§1736f–1. Establishment of commodity trust

(a) In general

To provide for a trust solely to meet emergency humanitarian food needs in developing countries, the Secretary of Agriculture (referred to in this section as the "Secretary") shall establish a trust stock of wheat, rice, corn, or sorghum, or any combination of the commodities, totaling not more than 4,000,000 metric tons for use as described in subsection (c) of this section.

(b) Commodities or funds in trust

(1) In general

The trust established under this section shall consist of-

(A) wheat in the reserve established under the Food Security Wheat Reserve Act of 1980 as of April 4, 1996;

(B) wheat, rice, corn, and sorghum (referred to in this section as "eligible commodities") acquired in accordance with paragraph (2) to replenish eligible commodities released from the trust, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of April 4, 1996;

(C) such rice, corn, and sorghum as the Secretary may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the trust established under this section; and

(D) funds made available under paragraph (2)(B) which shall be used solely to replenish commodities in the trust.

(2) Replenishment of trust

(A) In general

Subject to subsection (h) of this section, commodities of equivalent value to eligible commodities in the trust established under this section may be acquired-

(i) through purchases-

(I) from producers; or

(II) in the market, if the Secretary determines that the purchases will not unduly disrupt the market; or

(ii) by designation by the Secretary of stocks of eligible commodities of the Commodity Credit Corporation.

(B) Funds

Any funds used to acquire eligible commodities through purchases from producers or in the market to replenish the trust shall be derived-

(i) with respect to fiscal years 2000 through 2002 from funds made available to carry out the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) that are used to repay or reimburse the Commodity Credit Corporation for the release of eligible commodities under subsections (c)(2) and (f)(2) of this section, except that, of such funds, not more than $20,000,000 may be expended for this purpose in each of the fiscal years 2000 through 2002; and

(ii) from funds authorized for that use by an appropriations Act.

(c) Release of eligible commodities

(1) Emergency assistance

(A) In general

Notwithstanding paragraph (2), to meet unanticipated need, the Secretary may release eligible commodities in any fiscal year, without regard to the availability of domestic supply of the commodities, to provide emergency assistance to developing countries under title II of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1721 et seq.).

(B) Release for emergency assistance

If the eligible commodities needed to meet unanticipated need cannot be made available in a timely manner under normal means for obtaining eligible commodities for food assistance because of unanticipated need for emergency assistance as provided under section 202(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1722(a)), the Secretary may in any fiscal year release from the trust-

(i) up to 500,000 metric tons of wheat or the equivalent value of eligible commodities other than wheat; and

(ii) up to 500,000 metric tons of any eligible commodities under this paragraph that could have been released but were not released in prior fiscal years.

(C) Waiver of minimum tonnage requirements

Nothing in this paragraph shall require a waiver under section 204(a)(3) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite for the release of eligible commodities under this paragraph.

(2) Emergency food assistance

(A) In general

Notwithstanding any other provision of law, eligible commodities designated or acquired for the trust established under this section may be released by the Secretary to provide, on a donation or sale basis, emergency food assistance to developing countries at such time as the domestic supply of the eligible commodities is so limited that quantities of the eligible commodities cannot be made available for disposition under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) (other than disposition for urgent humanitarian purposes under section 401 of the Act (7 U.S.C. 1731)).

(B) Limitation

The Secretary may release eligible commodities under subparagraph (A) only to the extent such release is consistent with maintaining the long-term value of the trust.

(3) Processing of eligible commodities

Eligible commodities that are released from the trust established under this section may be processed in the United States and shipped to a developing country when conditions in the recipient country require processing.

(4) Exchange

The Secretary may exchange an eligible commodity for another United States commodity of equal value, including powdered milk, pulses, and vegetable oil.

(5) Use of normal commercial practices

To the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall use the usual and customary channels, facilities, arrangements, and practices of trade and commerce to carry out this subsection.

(d) Management of eligible commodities

The Secretary shall provide-

(1) for the management of eligible commodities in the trust established under this section as to location and quality of eligible commodities needed to meet emergency situations;

(2) for the periodic rotation or replacement of stocks of eligible commodities in the trust to avoid spoilage and deterioration of the commodities; and

(3) subject to the need for release of commodities from the trust under subsection (c)(1) of this section, for the management of the trust to preserve the value of the trust through acquisitions under subsection (b)(2) of this section.

(e) Treatment of trust under other law

Eligible commodities in the trust established under this section shall not be-

(1) considered a part of the total domestic supply (including carryover) for the purpose of subsection (c) of this section or for the purpose of administering the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and

(2) subject to any quantitative limitation on exports that may be imposed under section 2406 of title 50, Appendix.

(f) Use of Commodity Credit Corporation

(1) In general

Subject to the limitations provided in this section, the funds, facilities, and authorities of the Commodity Credit Corporation shall be used by the Secretary in carrying out this section, except that any restriction applicable to the acquisition, storage, or disposition of eligible commodities owned or controlled by the Commodity Credit Corporation shall not apply.

(2) Reimbursement of trust

(A) In general

The Commodity Credit Corporation shall be reimbursed for the release of eligible commodities from funds made available to carry out the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) and the funds shall be available to replenish the trust under subsection (b) of this section.

(B) Basis for reimbursement

The reimbursement shall be made on the basis of the lesser of-

(i) the actual costs incurred by the Commodity Credit Corporation with respect to the eligible commodity; or

(ii) the export market price of the eligible commodity (as determined by the Secretary) as of the time the eligible commodity is released from the trust.

(C) Source of funds

The reimbursement may be made from funds appropriated for subsequent fiscal years.

(g) Finality of determination

Any determination by the Secretary under this section shall be final.

(h) Termination of authority

(1) In general

The authority to replenish stocks of eligible commodities to maintain the trust established under this section shall terminate on September 30, 2002.

(2) Disposal of eligible commodities

Eligible commodities remaining in the trust after September 30, 2002, shall be disposed of by release for use in providing for emergency humanitarian food needs in developing countries as provided in this section.

(Pub. L. 96–494, title III, §302, as added Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959 ; amended Pub. L. 105–385, title II, §212(a), (b)(3), Nov. 13, 1998, 112 Stat. 3465 , 3467.)

References in Text

The Food Security Wheat Reserve Act of 1980, referred to in subsec. (b)(1)(A), (B), is title III of the Agricultural Act of 1980, Pub. L. 96–494, Dec. 3, 1980, 94 Stat. 2578 , which enacted former section 1736f–1 of this title and provisions set out as notes under that section, prior to the general amendment of title III by Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959 .

The Agricultural Trade Development and Assistance Act of 1954, referred to in subsecs. (b)(2)(B)(i), (c)(1)(A), (2), (e)(1), and (f)(2)(A), is act July 10, 1954, ch. 469, 68 Stat. 454 , as amended, which is classified generally to this chapter (§1691 et seq.). Title II of the Act is classified to subchapter III (§1721 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of this title and Tables.

Codification

Section was enacted as part of the Bill Emerson Humanitarian Trust Act which is title III of the Agricultural Act of 1980, and not as part of the Agricultural Trade Development and Assistance Act of 1954 which comprises this chapter.

Prior Provisions

A prior section 1736f–1, Pub. L. 96–494, title III, §302, Dec. 3, 1980, 94 Stat. 2578 ; Pub. L. 99–198, title X, §1013, Dec. 23, 1985, 99 Stat. 1456 ; Pub. L. 101–624, title XI, §1143, title XV, §1515(c), Nov. 28, 1990, 104 Stat. 3515 , 3663, established food security wheat reserve, prior to general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

Amendments

1998-Pub. L. 105–385, §212(b)(3)(A), substituted "trust" for "reserve" in section catchline.

Subsec. (a). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in two places.

Subsec. (b). Pub. L. 105–385, §212(a)(1)(A), (b)(3)(C)(i), in heading inserted "or funds" after "Commodities" and substituted "trust" for "reserve".

Subsec. (b)(1). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (b)(1)(B). Pub. L. 105–385, §212(b)(3)(C)(ii), substituted "trust," for "reserve,".

Subsec. (b)(1)(C). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Subsec. (b)(1)(D). Pub. L. 105–385, §212(a)(1)(B), added subpar. (D).

Subsec. (b)(2). Pub. L. 105–385, §212(b)(3)(C)(iii), substituted "trust" for "reserve" in heading.

Subsec. (b)(2)(A). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (b)(2)(B). Pub. L. 105–385, §212(a)(1)(C), added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: "Any use of funds to acquire eligible commodities through purchases from producers or in the market to replenish the reserve must be authorized in an appropriations Act."

Subsec. (c)(1)(B). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (c)(2). Pub. L. 105–385, §212(a)(2), (b)(3)(B), designated existing provisions as subpar. (A), inserted heading, substituted "trust" for "reserve", and added subpar. (B).

Subsecs. (c)(3), (d)(1), (2). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Subsec. (d)(3). Pub. L. 105–385, §212(a)(3), added par. (3).

Subsec. (e). Pub. L. 105–385, §212(b)(3)(B), (D), substituted "trust" for "reserve" in heading and introductory provisions.

Subsec. (f)(2). Pub. L. 105–385, §212(a)(4)(A), inserted "of trust" after "Reimbursement" in heading.

Subsec. (f)(2)(A). Pub. L. 105–385, §212(a)(4)(B), inserted before period at end "and the funds shall be available to replenish the trust under subsection (b) of this section".

Subsecs. (f)(2)(B)(ii), (h)(1), (2). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Effective Date

Section 303 of title III of Pub. L. 96–494 provided that former section 1736f–1 of this title and provisions set out as a note under that section became effective on Dec. 3, 1980, prior to the general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

Short Title

Section 301 of title III of Pub. L. 96–494, as added by Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959 , and amended by Pub. L. 105–385, title II, §212(b)(2), Nov. 13, 1998, 112 Stat. 3466 , provided that: "This title [enacting this section] may be cited as the 'Bill Emerson Humanitarian Trust Act'."

A prior section 301 of title III of Pub. L. 96–494 provided that title III (enacting former section 1736f–1 of this title and provisions set out as a note under that section) could be cited as the "Food Security Wheat Reserve Act of 1980", prior to the general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

Section Referred to in Other Sections

This section is referred to in section 4001 of this title; title 46 App. section 1241f.