§7271. Peanut program
(a) Quota peanuts
(1) Availability of loans
The Secretary shall make nonrecourse loans available to producers of quota peanuts.
(2) Loan rate
The national average quota loan rate for quota peanuts shall be $610 per ton.
(3) Inspection, handling, or storage
The loan amount may not be reduced by the Secretary by any deductions for inspection, handling, or storage.
(4) Location and other factors
The Secretary may make adjustments in the loan rate for quota peanuts for location of peanuts and such other factors as are authorized by section 7282 of this title.
(5) Offers from handlers
If a producer markets a quota peanut crop, meeting quality requirements for domestic edible use, through the marketing association loan for two consecutive marketing years and the Secretary determines that a handler provided the producer with a written offer, upon delivery, for the purchase of the quota peanut crops at a price equal to or in excess of the quota support price, the producer shall be ineligible for quota price support for the next marketing year. The Secretary shall establish the method by which a producer may appeal a determination under this paragraph regarding ineligibility for quota price support.
(b) Additional peanuts
(1) In general
Subject to paragraph (2), the Secretary shall make nonrecourse loans available to producers of additional peanuts at such rates as the Secretary finds appropriate, taking into consideration the demand for peanut oil and peanut meal, expected prices of other vegetable oils and protein meals, and the demand for peanuts in foreign markets.
(2) Limitation
The Secretary shall establish the support rate on additional peanuts at a level estimated by the Secretary to ensure that there are no losses to the Commodity Credit Corporation on the sale or disposal of the peanuts.
(3) Announcement
The Secretary shall announce the loan rate for additional peanuts of each crop not later than February 15 preceding the marketing year for the crop for which the loan rate is being determined.
(c) Area marketing associations
(1) Warehouse storage loans
(A) In general
In carrying out subsections (a) and (b) of this section, the Secretary shall make warehouse storage loans available in each of the producing areas (described in section 1446.95 of title 7 of the Code of Federal Regulations (January 1, 1989)) to a designated area marketing association of peanut producers that is selected and approved by the Secretary and that is operated primarily for the purpose of conducting the loan activities. The Secretary may not make warehouse storage loans available to any cooperative that is engaged in operations or activities concerning peanuts other than those operations and activities specified in this section and section 1359a of this title.
(B) Administrative and supervisory activities
An area marketing association shall be used in administrative and supervisory activities relating to loans and marketing activities under this section and section 1359a of this title.
(C) Association costs
Loans made to the association under this paragraph shall include such costs as the area marketing association reasonably may incur in carrying out the responsibilities, operations, and activities of the association under this section and section 1359a of this title.
(2) Pools for quota and additional peanuts
(A) In general
The Secretary shall require that each area marketing association establish pools and maintain complete and accurate records by area and segregation for quota peanuts handled under loan and for additional peanuts placed under loan, except that separate pools shall be established for Valencia peanuts produced in New Mexico.
(B) Eligibility to participate in New Mexico pools
(i) In general
Except as provided in clause (ii), in the case of the 1996 and subsequent crops, Valencia peanuts not physically produced in the State of New Mexico shall not be eligible to participate in the pools of the State.
(ii) Exception
A producer of Valencia peanuts may enter Valencia peanuts that are produced in Texas into the pools of New Mexico in a quantity not greater than the average annual quantity of the peanuts that the producer entered into the New Mexico pools for the 1990 through 1995 crops.
(C) Types of peanuts
Bright hull and dark hull Valencia peanuts shall be considered as separate types for the purpose of establishing the pools.
(D) Net gains
Net gains on peanuts in each pool, unless otherwise approved by the Secretary, shall be distributed only to producers who placed peanuts in the pool and shall be distributed in proportion to the value of the peanuts placed in the pool by each producer. Net gains for peanuts in each pool shall consist of the following:
(i) Quota peanuts
For quota peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool.
(ii) Additional peanuts
For additional peanuts, the net gains over and above the loan indebtedness and other costs or losses incurred on peanuts placed in the pool for additional peanuts.
(d) Losses
Losses in quota area pools shall be covered using the following sources in the following order of priority:
(1) Transfers from additional loan pools
The proceeds due any producer from any pool shall be reduced by the amount of any loss that is incurred with respect to peanuts transferred from an additional loan pool to a quota loan pool by the producer under section 1358–1(b)(8) of this title.
(2) Producers in same pool
Further losses in an area quota pool shall be offset by reducing the gain of any producer in the pool by the amount of pool gains attributed to the same producer from the sale of additional peanuts for domestic and edible export use.
(3) Offset within area
Further losses in an area quota pool shall be offset by any gains or profits from additional peanuts (other than separate type pools established under subsection (c)(2)(A) of this section for Valencia peanuts produced in New Mexico) owned or controlled by the Commodity Credit Corporation in that area and sold for domestic edible use, in accordance with regulations issued by the Secretary. This paragraph shall not apply to profits or gains from a farm with 1 acre or less of peanut production.
(4) First use of marketing assessments
The Secretary shall use funds collected under subsection (g) of this section (except funds attributable to handlers) to offset further losses in area quota pools. The Secretary shall transfer to the Treasury those funds collected under subsection (g) of this section and available for use under this paragraph that the Secretary determines are not required to cover losses in area quota pools.
(5) Cross compliance
Further losses in area quota pools, other than losses incurred as a result of transfers from additional loan pools to quota loan pools under section 1358–1(b)(8) of this title, shall be offset by any gains or profits from quota pools in other production areas (other than separate type pools established under subsection (c)(2)(A) of this section for Valencia peanuts produced in New Mexico) in such manner as the Secretary shall by regulation prescribe.
(6) Offset generally
If losses in an area quota pool have not been entirely offset under the preceding paragraphs, further losses shall be offset by any gains or profits from additional peanuts (other than separate type pools established under subsection (c)(2)(A) of this section for Valencia peanuts produced in New Mexico) owned or controlled by the Commodity Credit Corporation and sold for domestic edible use, in accordance with regulations issued by the Secretary. This paragraph shall not apply to profits or gains from a farm with 1 acre or less of peanut production.
(7) Second use of marketing assessments
The Secretary shall use funds collected under subsection (g) of this section and attributable to handlers to offset further losses in area quota pools. The Secretary shall transfer to the Treasury those funds collected under subsection (g) of this section and available for use under this paragraph that the Secretary determines are not required to cover losses in area quota pools.
(8) Increased assessments
If use of the authorities provided in the preceding paragraphs is not sufficient to cover losses in an area quota pool, the Secretary shall increase the marketing assessment for producers established under subsection (g) of this section by such an amount as the Secretary considers necessary to cover the losses. The increased assessment shall apply only to quota peanuts in the production area covered by the pool. Amounts collected under subsection (g) of this section as a result of the increased assessment shall be retained by the Secretary to cover losses in that pool.
(e) Disapproval of quotas
Notwithstanding any other provision of law, no loan for quota peanuts may be made available by the Secretary for any crop of peanuts with respect to which poundage quotas have been disapproved by producers, as provided for in section 1358–1(d) of this title.
(f) Quality improvement
(1) In general
With respect to peanuts under loan, the Secretary shall-
(A) promote the crushing of peanuts at a greater risk of deterioration before peanuts of a lesser risk of deterioration;
(B) ensure that all Commodity Credit Corporation inventories of peanuts sold for domestic edible use must be shown to have been officially inspected by licensed Department inspectors both as farmer stock and shelled or cleaned in-shell peanuts;
(C) continue to endeavor to operate the peanut program so as to improve the quality of domestic peanuts and ensure the coordination of activities under the Peanut Administrative Committee established under Marketing Agreement No. 146, regulating the quality of domestically produced peanuts (under the Agricultural Adjustment Act (7 U.S.C. 601 et seq.), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937); and
(D) ensure that any changes made in the peanut program as a result of this subsection requiring additional production or handling at the farm level shall be reflected as an upward adjustment in the Department loan schedule.
(2) Exports and other peanuts
The Secretary shall require that all peanuts in the domestic and export markets fully comply with all quality standards under Marketing Agreement No. 146.
(g) Marketing assessment
(1) In general
The Secretary shall provide for a nonrefundable marketing assessment. The assessment shall be made on a per pound basis in an amount equal to 1.1 percent for each of the 1994 and 1995 crops, 1.15 percent for the 1996 crop, and 1.2 percent for each of the 1997 through 2002 crops, of the national average quota or additional peanut loan rate for the applicable crop.
(2) First purchasers
(A) In general
Except as provided under paragraphs (3) and (4), the first purchaser of peanuts shall-
(i) collect from the producer a marketing assessment equal to the quantity of peanuts acquired multiplied by-
(I) in the case of each of the 1994 and 1995 crops, .55 percent of the applicable national average loan rate;
(II) in the case of the 1996 crop, .6 percent of the applicable national average loan rate; and
(III) in the case of each of the 1997 through 2002 crops, .65 percent of the applicable national average loan rate;
(ii) pay, in addition to the amount collected under clause (i), a marketing assessment in an amount equal to the quantity of peanuts acquired multiplied by .55 percent of the applicable national average loan rate; and
(iii) remit the amounts required under clauses (i) and (ii) to the Commodity Credit Corporation in a manner specified by the Secretary.
(B) "First purchaser" defined
In this subsection, the term "first purchaser" means a person acquiring peanuts from a producer except that in the case of peanuts forfeited by a producer to the Commodity Credit Corporation, the term means the person acquiring the peanuts from the Commodity Credit Corporation.
(3) Other private marketings
In the case of a private marketing by a producer directly to a consumer through a retail or wholesale outlet or in the case of a marketing by the producer outside of the continental United States, the producer shall be responsible for the full amount of the assessment and shall remit the assessment by such time as is specified by the Secretary.
(4) Loan peanuts
In the case of peanuts that are pledged as collateral for a loan made under this section, the producer portion of the assessment shall be deducted from the proceeds of the loan. The remainder of the assessment shall be paid by the first purchaser of the peanuts. For purposes of computing net gains on peanuts under this section, the reduction in loan proceeds shall be treated as having been paid to the producer.
(5) Penalties
If any person fails to collect or remit the reduction required by this subsection or fails to comply with the requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying-
(A) the quantity of peanuts involved in the violation; by
(B) the national average quota peanut rate for the applicable crop year.
(6) Enforcement
The Secretary may enforce this subsection in the courts of the United States.
(h) Crops
Subsections (a) through (g) of this section shall be effective only for the 1996 through 2002 crops of peanuts.
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References in Text
The Agricultural Adjustment Act, referred to in subsec. (f)(1)(C), is title I of act May 12, 1933, ch. 25,
Codification
Section is comprised of section 155 of