SUBCHAPTER II—BASIC AGRICULTURAL COMMODITIES
Subchapter Referred to in Other Sections
This subchapter is referred to in
§1441. Price support levels
The Secretary of Agriculture (hereinafter called the "Secretary") is authorized and directed to make available through loans, purchases, or other operations, price support to cooperators for any crop of any basic agricultural commodity, if producers have not disapproved marketing quotas for such crop, at a level not in excess of 90 per centum of the parity price of the commodity nor less than the level provided in subsections (a) to (c) of this section as follows:
| (a) For tobacco (except as otherwise provided herein), corn, and wheat, if the supply percentage as of the beginning of the marketing year is: | The level of support shall be not less than the following percentage of the parity price: |
| Not more than 102 | 90 |
| More than 102 but not more than 104 | 89 |
| More than 104 but not more than 106 | 88 |
| More than 106 but not more than 108 | 87 |
| More than 108 but not more than 110 | 86 |
| More than 110 but not more than 112 | 85 |
| More than 112 but not more than 114 | 84 |
| More than 114 but not more than 116 | 83 |
| More than 116 but not more than 118 | 82 |
| More than 118 but not more than 120 | 81 |
| More than 120 but not more than 122 | 80 |
| More than 122 but not more than 124 | 79 |
| More than 124 but not more than 126 | 78 |
| More than 126 but not more than 128 | 77 |
| More than 128 but not more than 130 | 76 |
| More than 130 | 75 |
For rice of the 1959 and 1960 crops, the level of support shall be not less than 75 per centum of the parity price. For rice of the 1961 crop the level of support shall be not less than 70 per centum of the parity price. For the 1962 and subsequent crops of rice the level of support shall be not less than 65 per centum of the parity price.
| (b) For cotton and peanuts, if the supply percentage as of the beginning of the marketing year is: | The level of support shall be not less than the following percentage of the parity price: |
| Not more than 108 | 90 |
| More than 108 but not more than 110 | 89 |
| More than 110 but not more than 112 | 88 |
| More than 112 but not more than 114 | 87 |
| More than 114 but not more than 116 | 86 |
| More than 116 but not more than 118 | 85 |
| More than 118 but not more than 120 | 84 |
| More than 120 but not more than 122 | 83 |
| More than 122 but not more than 124 | 82 |
| More than 124 but not more than 125 | 81 |
| More than 125 but not more than 126 | 80 |
| More than 126 but not more than 127 | 79 |
| More than 127 but not more than 128 | 78 |
| More than 128 but not more than 129 | 77 |
| More than 129 but not more than 130 | 76 |
| More than 130 | 75 |
(c) For tobacco, if marketing quotas are in effect, the level of support shall be 90 per centum of the parity price.
(d) Notwithstanding the foregoing provisions of this section—
(1) if producers have not disapproved marketing quotas for such crop, the level of support to cooperators shall be 90 per centum of the parity price for the 1950 crop of any basic agricultural commodity for which marketing quotas or acreage allotments are in effect;
(2) if producers have not disapproved marketing quotas for such crop, the level of support to cooperators shall be not less than 80 per centum of the parity price for the 1951 crop of any basic agricultural commodity for which marketing quotas or acreage allotments are in effect;
(3) the level of price support to cooperators for any crop of a basic agricultural commodity, except tobacco, for which marketing quotas have been disapproved by producers shall be 50 per centum of the parity price of such commodity; and no price support shall be made available for any crop of tobacco for which marketing quotas have been disapproved by producers;
(4) Repealed. Oct. 31, 1949, ch. 792, title I, §104(b)(3), as added Aug. 28, 1958,
(5) the price support may be made available to noncooperators at such levels, not in excess of the level of price support to cooperators, as the Secretary determines will facilitate the effective operation of the program;
(6) except as provided in subsection (c) of this section and
(7) Where a State is designated under
(e)
(Oct. 31, 1949, ch. 792, title I, §§101, 104(b)(3),
References in Text
Subsec. (e) of
Amendments
1996—Subsec. (e).
1985—Subsec. (i)(1).
1984—Subsec. (i)(2)(C).
Subsec. (i)(5)(A).
Subsec. (i)(5)(B).
1983—Subsec. (f).
1982—Subsec. (i)(5)(A).
Subsec. (i)(5)(B).
1981—Subsec. (f).
Subsec. (i).
1980—Subsec. (h)(4)(B).
Subsec. (h)(4)(C).
Subsec. (h)(4)(D), (E).
1979—Subsec. (f).
1977—Subsec. (f).
Subsec. (h).
1976—Subsec. (g).
1968—Subsec. (f).
1960—Subsec. (e).
1958—Subsec. (a).
Subsec. (d)(4). Act Oct. 31, 1949, §104(b)(3), as added
Subsec. (f).
1957—Subsec. (f).
1954—Subsec. (d)(6). Act Aug. 28, 1954, §201(a), provided for flexible price supports.
Subsec. (d)(7). Act Aug. 28, 1954, §201(b), added par. (7).
Subsec. (f). Act Aug. 28, 1954, §202, set the price support for long staple cotton at the minimum determined in accordance with the schedule in subsec. (b) of this section.
1952—Subsec. (d)(6). Act July 17, 1952, §2, added par. (6).
Subsec. (f). Act July 17, 1952, §3(1), added subsec. (f).
Effective and Termination Dates of 1985 Amendment
Section 602 of
Effective Date of 1983 Amendment
Section 2 of
Effective and Termination Dates of 1981 Amendment
Section 508 of
Section 602 of
Effective Date of 1979 Amendment
Effective and Termination Dates of 1977 Amendment
Section 702 of
Amendment by
Effective and Termination Dates of 1976 Amendment
Section 102 of
Effective Date of 1958 Amendment
Section 104(b)(3) of act Oct. 31, 1949, as added by section 201 of
Section 302(a) of
Inapplicability of Section
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 707 of
Section 707 of
Report on Trading of Rice Futures
Section 603 of
Exemption of Disaster Payment Limitations Respecting 1977 Crops of Wheat, Feed Grains, Upland Cotton, and Rice
Term "payments" as used in subsec. (g)(13) of this section shall not include any part of any payment which is determined by the Secretary of Agriculture to represent compensation for disaster loss with respect to 1977 crops of wheat, feed grains, upland cotton, and rice, see
1963 Wheat Crop
1962 Wheat Crop
Section Referred to in Other Sections
This section is referred to in
§1441–1. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §101A, as added Dec. 23, 1985,
Effective and Termination Dates
Section 601 of
§1441–1a. Marketing certificates for rice
(a) Authority of Commodity Credit Corporation to issue negotiable marketing certificates
Notwithstanding any other provision of law, whenever, during the period beginning August 1, 1986, and ending July 31, 1991, the world price for a class of rice (adjusted to United States qualities and location), as determined by the Secretary of Agriculture, is below the current loan repayment rate for that class of rice, to make United States rice competitive in world markets and to maintain and expand exports of rice produced in the United States, the Commodity Credit Corporation, under such regulations as the Secretary may prescribe, shall make payments, through the issuance of negotiable marketing certificates, to persons who have entered into an agreement with the Commodity Credit Corporation to participate in the program established under this section. Such payments shall be made in such monetary amounts and subject to such terms and conditions as the Secretary determines will make rice produced in the United States available at competitive prices consistent with the purposes of this section, including such payments as may be necessary to make rice in inventory on August 1, 1986, available on the same basis.
(b) Determination of value of certificates
The value of each certificate issued under subsection (a) of this section shall be based on the difference between—
(1) the loan repayment rate for the class of rice; and
(2) the prevailing world market price for the class of rice, as determined by the Secretary of Agriculture under a published formula submitted for public comment before its adoption.
(c) Commodity Credit Corporation assistance in redemption, marketing, or exchange of certificates
The Commodity Credit Corporation, under regulations prescribed by the Secretary of Agriculture, may assist any person receiving marketing certificates under this section in the redemption of certificates for cash, or marketing or exchange of such certificates for (1) rice owned by the Commodity Credit Corporation or (2) (if the Secretary and the person agree) other agricultural commodities or the products thereof owned by the Commodity Credit Corporation, at such times, in such manner, and at such price levels as the Secretary determines will best effectuate the purposes of the program established under this section. Notwithstanding any other provision of law, any price restrictions that may otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this section.
(d) Exchange of certificates for commodities and products
Insofar as practicable, the Secretary shall permit owners of certificates to designate the commodities and the products thereof, including storage sites thereof, such owners would prefer to receive in exchange for certificates. If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of such certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after such reasonable number of days and ending with the date of the presentation of such certificate to the Commodity Credit Corporation.
(e) Prevention of adverse effects
The Secretary of Agriculture shall take such measures as may be necessary to prevent the marketing or exchange of agricultural commodities and the products thereof for certificates under this section from adversely affecting the income of producers of such commodities or products.
(f) Transfer of certificates
Under regulations prescribed by the Secretary of Agriculture, certificates issued to rice exporters under this section may be transferred to other exporters and persons approved by the Secretary.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
§1441–2. Repealed. Pub. L. 104–127, title I, §171(b)(2)(A), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §101B, as added Nov. 28, 1990,
§1441a. Cost of production study and establishment of current national weighted average cost of production
The Secretary of Agriculture, in cooperation with the land grant colleges, commodity organizations, general farm organizations, and individual farmers, shall conduct a cost of production study of the wheat, feed grain, cotton, and dairy commodities under the various production practices and establish a current national weighted average cost of production. This study shall be updated annually and shall include all typical variable costs, including interest costs, a return on fixed costs, and a return for management.
(
Codification
Section was enacted as part of the Agricultural Act of 1970 as added by the Agriculture and Consumer Protection Act of 1973, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
Amendments
1981—
Effective Date of 1981 Amendment
Amendment by
§1442. Price support and acreage requirements for corn and other feed grains
(a) Conditions of eligibility
Notwithstanding any other provision of law, whenever base acreages are in effect for corn, the Secretary shall require, as a condition of eligibility for price support on corn, that the producer (1) devote an acreage of cropland (tilled in normal rotation), at the option of the producer, to either the acreage reserve program for corn or the conservation reserve program, equal to 15 per centum of such producer's farm base acreage for corn, and (2) not exceed such farm base acreage for corn: Provided, That price support may be made available to any producer who does not meet the foregoing requirements at such level, not in excess of the level of price support to producers who meet such requirements, as the Secretary determines will facilitate the effective operation of the price support program. Corn acreage allotments shall not be effective for the 1956 crop.
(b) Referendum of producers of corn
Not later than December 15, 1956, the Secretary shall conduct a referendum of producers of corn in 1956 in the commercial corn-producing area to determine whether such producers favor a price-support program as provided in subsection (c) of this section for the 1957 and subsequent crops in lieu of acreage allotments as provided in the Agricultural Adjustment Act of 1938, as amended [
(c) Restriction on acreage allotment of corn; price support level
Notwithstanding any other provision of law, if two-thirds or more of the producers voting in the referendum conducted pursuant to subsection (b) of this section favor a price-support program as provided in this subsection, no acreage allotment of corn shall be established for the commercial corn-producing area for any county, or for any farm, with respect to the 1957 and subsequent crops, and price support made available for such crops by Commodity Credit Corporation shall be at such level as the Secretary determines will assist producers in marketing corn in the normal channels of trade but not encourage the uneconomic production of corn.
(d) Price support level for 1956 and 1957 crops of grain sorghums, barley, rye, oats, and corn
Notwithstanding any other provision of law, (1) the level of price support for the 1956 crop of grain sorghums, barley, rye, and oats, respectively, shall be 76 per centum of the parity price for the commodity as of May 1, 1956, (2) the level of price support for corn produced outside the commercial corn-producing area, for any crop for which base acreages are in effect (except as provided in (3) below), shall be 82½ per centum of the level of price support for corn in the commercial corn-producing area to producers complying with acreage limitations, and (3) if price support is made available for the 1957 crop of corn in the commercial corn-producing area to producers not complying with acreage limitations, price support shall be made available for the 1957 crop of grain sorghums, barley, rye, oats, and corn produced outside the commercial corn-producing area, respectively, at a level, not less than 70 per centum of the parity price as of the beginning of the marketing year, determined by the Secretary to be fair and reasonable in relation to the level at which price support is made available for corn in the commercial corn-producing area to producers not complying with acreage limitations, taking into consideration the normal price relationships between such commodity and corn in the commercial area, the feed value of such commodity in relation to corn, the supply of such commodity in relation to the demand therefor, and the ability to dispose of stocks of such commodity acquired through price support programs.
(May 28, 1956, ch. 327, title III, §308,
References in Text
The Agricultural Adjustment Act of 1938, as amended, referred to in subsec. (b), is act Feb. 16, 1938, ch. 30,
Codification
Section was enacted as part of the Agricultural Act of 1956, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
Referendum of Producers of Corn
The referendum provided for in subsec. (b) of this section was held on Dec. 11, 1956, and the required two-thirds vote was not obtained in favor of the price support program provided for in subsec. (c) of this section. See 22 F.R. 480.
§1443. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §102, as added Aug. 28, 1958,
§1444. Cotton price support levels
(a) Basic support levels for 1961 and subsequent years
Notwithstanding the provisions of
(b) Additional support levels for 1964 and 1965
If producers have not disapproved marketing quotas, the Secretary shall provide additional price support on the 1964 and 1965 crops of upland cotton to cooperators on whose farms the acreage planted to upland cotton for harvest does not exceed the farm domestic allotment established under
(c) Alternative operations for carrying out additional price support; payment-in-kind certificates: value, marketing assistance, redemption, and deductions after thirty day period
In order to keep upland cotton to the maximum extent practicable in the normal channels of trade, any additional price support under subsection (b) of this section may be carried out through the simultaneous purchase of cotton at the support price therefor under subsection (b) of this section and the sale of such cotton at the support price therefor under subsection (a) of this section or similar operations, including loans under which the cotton would be redeemable by payment of the amount for which the cotton would be redeemable if the loan thereon had been made at the support price for such cotton under subsection (a) of this section, or payments-in-kind through the issuance of certificates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary. If such additional support is provided through the issuance of payment-in-kind certificates, such certificates shall have a value per pound of cotton equal to the difference between the level of support established under subsection (a) of this section and the level of support established under subsection (b) of this section. The corporation may, under regulations prescribed by the Secretary, assist the producers and persons receiving payment-in-kind certificates under this section and
(d) Price support and diversion payments for 1966 through 1970 crops
(1) Notwithstanding any other provision of this Act, if producers have not disapproved marketing quotas, price support and diversion payments shall be made available for the 1966 through 1970 crops of upland cotton as provided in this subsection.
(2) Price support for each such crop of upland cotton shall be made available to cooperators through loans at such level, not exceeding a level which will reflect for Middling one-inch upland cotton at average location in the United States 90 per centum of the estimated average world market price for Middling one-inch upland cotton for the marketing year for such crop, as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States taking into consideration the factors specified in
(3) The Secretary also shall provide additional price support for each such crop through payments in cash or in kind to cooperators at a rate not less than 9 cents per pound: Provided, That the rate shall be such that the amount obtained by—
(i) multiplying the rate by the farm domestic acreage allotment percentage, and
(ii) dividing the product thus obtained by the cooperator percentage established under
(iii) adding the result thus obtained to the national average loan rate
shall not be less than 65 per centum or more than 90 per centum of the parity price for cotton as of the month in which the payment rate provided for by this paragraph is announced. Such payments shall be made on the quantity of cotton determined by multiplying the projected farm yield by the acreage planted to cotton within the farm domestic acreage allotment: Provided, That any such farm planting not less than 90 per centum of such domestic acreage allotment shall be deemed to have planted the entire amount of such allotment. An acreage on a farm in any such year which the Secretary finds was not planted to cotton because of drought, flood, or other natural disaster shall be deemed to be planted to cotton for purposes of payments under this subsection if such acreage is not subsequently devoted to any other crop for which there are marketing quotas or voluntary adjustment programs in effect.
(4) The Secretary shall make diversion payments in cash or in kind in addition to the price support payments authorized in paragraph (3) to cooperators who reduce their cotton acreage by diverting a portion of their cotton acreage allotment from the production of cotton to approved conservation practices to the extent prescribed by the Secretary: Provided, That no reduction below the domestic acreage allotments established under
(5) The Secretary may make not to exceed 50 per centum of the payments under this subsection to producers in advance of determination of performance and the balance of such payments shall be made at such time as the Secretary may prescribe.
(6) Where the farm operator elects to participate in the diversion program authorized in this subsection and no acreage is planted to cotton on the farm, diversion payments shall be made at the rate established under paragraph (4) for acreage required to be diverted to qualify as a cooperator on the quantity of cotton determined by multiplying that part of the farm acreage allotment required to be diverted to qualify as a cooperator by the projected farm yield, and the remainder of such allotment may be released under the provisions of
(7) Payments in kind under this subsection shall be made through the issuance of certificates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary at a value per pound equal to not less than the current loan rate therefor. The Corporation may, under regulations prescribed by the Secretary, assist the producers in the marketing of such certificates at such times and in such manner as the Secretary determines will best effectuate the purposes of the program authorized by this subsection.
(8) Payments under this subsection shall be conditioned on the farm having an acreage of approved conservation uses equal to the sum of (i) the reduction in cotton acreage required to qualify for such payments (hereinafter called "diverted acreage"), and (ii) the average acreage of cropland on the farm devoted to designated soil-conserving crops or practices, including summer fallow and idle land, during a base period prescribed by the Secretary: Provided, That the Secretary may permit all or any part of such diverted acreage to be devoted to the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, and flaxseed, if he determines that such production is necessary to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not adversely affect farm income, subject to the condition that payment under paragraph (4) or (6) with respect to diverted acreage devoted to any such crop shall be at a rate determined by the Secretary to be fair and reasonable, taking into consideration the use of such acreage for the production of such crops, but in no event shall the payment exceed one-half the rate which otherwise would be applicable if such acreage were devoted to conservation uses.
(9) The acreage regarded as planted to cotton on any farm which qualifies for payment under this subsection except under paragraph (6) shall, for purposes of establishing future State, county, and farm acreage allotments and farm bases, be the farm acreage allotment established under
(10) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing diversion payments on a fair and equitable basis under this subsection. The Secretary shall provide for the sharing of price support payments among producers on the farm on the basis of their respective shares in the cotton crop produced on the farm, or the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable.
(11) In any case in which the failure of a producer to comply fully with the terms and conditions of the programs formulated under this Act preclude the making of payments under this section, the Secretary may, nevertheless, make such payments in such amounts as he determines to be equitable in relation to the seriousness of the default.
(12) Notwithstanding any other provision of this Act, if, as a result of limitations hereafter enacted with respect to price support under this subsection, the Secretary is unable to make available to all cooperators the full amount of price support to which they would otherwise be entitled under paragraphs (2) and (3) of this subsection for any crop of upland cotton, (A) price support to cooperators shall be made available for such crop (if marketing quotas have not been disapproved) through loans or purchases at such level not less than 65 per centum nor more than 90 per centum of the parity price therefor as the Secretary determines appropriate; (B) in order to keep upland cotton to the maximum extent practicable in the normal channels of trade, such price support may be carried out through the simultaneous purchase of cotton at the support price therefor and resale at a lower price or through loans under which the cotton would be redeemable by payment of a price therefor lower than the amount of the loan thereon; and (C) such resale or redemption price shall be such as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States.
(13) The provisions of
(14) The Commodity Credit Corporation is authorized to utilize its capital funds and other assets for the purpose of making the payments authorized in this subsection and to pay administrative expenses necessary in carrying out this subsection.
(e) Price support, diversion, and cropland set-aside program for crops beginning with 1971 crop
(1) The Secretary shall upon presentation of warehouse receipts reflecting accrued storage charges of not more than 60 days make available for the 1971 through 1977 crops of upland cotton to cooperators nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at such level as will reflect the Middling one-inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States 90 per centum of the average price of American cotton in world markets for such cotton for the three-year period ending July 31 in the year in which the loan level is announced, except that if the loan rate so calculated is higher than the then current level of average world prices for American cotton of such quality, the Secretary is authorized to adjust the current calculated loan rate for cotton to 90 per centum of the then current average world price. The average world price for such cotton for such preceding three-year period shall be determined by the Secretary annually pursuant to a published regulation which shall specify the procedures and the factors to be used by the Secretary in making the world price determination. The loan level for any crop of upland cotton shall be determined and announced not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective. Notwithstanding the foregoing, if the carryover of upland cotton as of the beginning of the marketing year for any of the 1972 or 1973 crops exceeds 7.2 million bales, producers on any farm harvesting cotton of such crop from an acreage in excess of the base acreage allotment for such farm shall be entitled to loans and purchases only on an amount of the cotton of such crop produced on such farm determined by multiplying the yield used in computing payments for such farm by the base acreage allotment for such farm.
(2) Payments shall be made for each crop of cotton to the producers on each farm at a rate equal to the amount by which the higher of—
(1) the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as determined by the Secretary, or
(2) the loan level determined under paragraph (1) for such crop
is less than the established price of 38 cents per pound in the case of the 1974 and 1975 crops, 38 cents per pound adjusted to reflect any change during the calendar year 1975 in the index of prices paid by farmers for production items, interest, taxes, and wage rates in the case of the 1976 crop, and the established price for the 1976 crop adjusted to reflect any change during the calendar year 1976 in such index in the case of the 1977 crop: Provided, That any increase that would otherwise be made in the established price to reflect a change in the index of prices paid by farmers shall be adjusted to reflect any change in (i) the national average yield per acre of cotton for the three calendar years preceding the year for which the determination is made, over (ii) the national average yield per acre of cotton for the three calendar years preceding the year previous to the one for which the determination is made. If the Secretary determines that the producers on a farm are prevented from planting any portion of the allotment to cotton because of drought, flood, or other natural disaster, or condition beyond the control of the producer, the rate of payment for such portion shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. If the Secretary determines that, because of such a disaster or condition, the total quantity of cotton which the producers are able to harvest on any farm is less than 662/3 percent of the farm base acreage allotment times the average yield established for the farm, the rate of payment for the deficiency in production below 100 percent shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. The payment rate with respect to any producer who (i) is on a small farm (that is, a farm on which the base acreage allotment is ten acres or less, or on which the yield used in making payments times the farm base acreage allotment is five thousand pounds or less, and for which the base acreage allotment has not been reduced under
(3) Such payments shall be made available for a farm on the quantity of upland cotton determined by multiplying the acreage planted within the farm base acreage allotment for the farm for the crop by the average yield established for the farm: Provided, That payments shall be made on any farm planting not less than 90 per centum of the farm base acreage allotment on the basis of the entire amount of such allotment. For purposes of this paragraph, an acreage on the farm which the Secretary determines was not planted to cotton because of drought, flood, other natural disaster, or a condition beyond the control of the producer shall be considered to be an acreage planted to cotton. The average yield for the farm for any year shall be determined on the basis of the actual yields per harvested acre for the three preceding years, except that the 1970 farm projected yield shall be substituted in lieu of the actual yields for the years 1968 and 1969: Provided, That the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster: Provided further, That the average yield established for the farm for any year shall not be less than the yield used in making payments for the preceding year if the total cotton production on the farm in such preceding year is not less than the yield used in making payments for the farm for such preceding year times the farm base acreage allotment for such preceding year (for the 1970 crop, the farm domestic allotment).
(4)(A) The Secretary shall provide for a set aside of cropland if he determines that the total supply of agricultural commodities will, in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. If a set-aside of cropland is in effect under this paragraph (4), then as a condition of eligibility for loans and payments on upland cotton the producers on a farm must set aside and devote to approved conservation uses an acreage of cropland equal to (i) such percentage of the farm base acreage allotment for the farm as may be specified by the Secretary (not to exceed 28 per centum of the farm base acreage allotment), plus, if required by the Secretary, (ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Secretary. The Secretary is authorized for the 1974 through 1977 crops to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to a percentage of the farm base acreage allotment. The Secretary shall permit producers to plant and graze on set-aside acreage sweet sorghum, and the Secretary may permit, subject to such terms and conditions as he may prescribe, all or any of the set-aside acreage to be devoted to hay and grazing or the production of guar, sesame, safflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if he determines that such production is needed to provide an adequate supply, is not likely to increase the cost of the price-support program, and will not adversely affect farm income.
(B) To assist in adjusting the acreage of commodities to desirable goals, the Secretary may make land diversion payments, in addition to the payments authorized in subsection (e)(2) of this section, to producers on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in addition to that required to be so devoted under subsection (e)(4)(A) of this section. The land diversion payments for a farm shall be at such rate or rates as the Secretary determines to be fair and reasonable taking into consideration to the diversion undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to adversely affect the economy of the county or local community.
(5) The upland cotton program formulated under this section shall require the producer to take such measures as the Secretary may deem appropriate to protect the set-aside acreage and the additional diverted acreage from erosion, insects, weeds, and rodents. Such acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may in the case of programs for the 1974 through 1977 crops, pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentences. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm as the Secretary may prescribe by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations.
(6) If the operator of the farm desires to participate in the program formulated under this section, he shall file his agreement to do so no later than such date as the Secretary may prescribe. Loans and purchases on upland cotton and payments under this section shall be made available to the producers on such farm only if producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Secretary may, by mutual agreement with the producer, terminate or modify any such agreement entered into pursuant to this subsection (e)(6) if he determines such action necessary because of an emergency created by drought or other disaster or in order to alleviate a shortage in the supply of agricultural commodities.
(7) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing on a fair and equitable basis, in payments under this section.
(8) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as he determines to be equitable in relation to the seriousness of the default.
(9) The Secretary is authorized to issue such regulations as he determines necessary to carry out the provisions of this subchapter.
(10) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(11) The provisions of
(f), (g) Omitted
(h) Program for extra long staple cotton beginning with 1984 crop
(1) For purposes of this subsection, extra long staple cotton means cotton which is produced from pure strain varieties of the Barbadense species or any hybrid thereof, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which American upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary is suitable for the production of such varieties or types and which is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.
(2) The Secretary shall, upon presentation of warehouse receipts reflecting accrued storage charges of not more than sixty days, make available to producers nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at a level which is not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, 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..1 If authorized by the Secretary, nonrecourse loans provided for in this subsection may, upon request of the producer during the tenth month of the loan period for the cotton, be made available for an additional term of eight months. The loan level for any crop of extra long staple cotton shall be determined and announced by the Secretary not later than December 1 of the calendar year preceding the marketing year for which such loan is to be effective and such level shall not thereafter be changed.
(3)(A) In addition, payments shall be made for each crop of extra long staple cotton to producers on each farm at a rate equal to the amount by which the higher of—
(i) the average market price received by farmers for extra long staple cotton during the first eight months of the marketing year for such crop, as determined by the Secretary, or
(ii) the loan level determined under paragraph (2) of this subsection for such crop,
is less than the established price per pound times, in each case, the farm program acreage for extra long staple cotton (determined in accordance with paragraph (5)(A), but in no event on a greater acreage than the acreage actually planted to extra long staple cotton for harvest), multiplied by the farm program payment yield for extra long staple cotton (determined in accordance with paragraph (4)).
(B) The established price for each crop of extra long staple cotton shall be 120 per centum of the loan level determined for such crop under paragraph (2) of this subsection.
(C) If the Secretary establishes an acreage limitation program for a crop of extra long staple cotton in accordance with paragraph (5)(A) and determines that deficiency payments will likely be made for such crop of extra long staple cotton under subparagraph (A) of this paragraph, the Secretary may make available advance deficiency payments for such crop to producers who agree to participate in the acreage limitation program. Such advance payments shall be made available to producers as soon as practicable after the producer files a notice of intention to participate in such acreage limitation program and in such amount as the Secretary determines appropriate to encourage adequate participation in such program, except that such amount shall not exceed an amount determined by multiplying (i) the estimated farm program acreage for the crop, by (ii) the farm program payment yield for the crop, by (iii) 50 per centum of the projected payment rate, as determined by the Secretary. In any case in which the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under subparagraph (A) of this paragraph, is less than the amount paid to the producer as an advance deficiency payment under this paragraph, the producer shall refund an amount equal to the difference between the amount advanced and the amount finally determined by the Secretary to be payable to the producer. If the Secretary determines that no deficiency payments are due producers on a crop, the producer who received advanced payments on such crop shall refund such payments. If a producer fails to comply with the requirements under the acreage limitation program after obtaining an advance deficiency payment under this paragraph, the producer shall immediately repay the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe.
(4) The farm program payment yield for each crop of extra long staple cotton shall be determined on the basis of the actual yields per harvested acre on the farm for the preceding three years, except that the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster, or other condition beyond the control of the producers. In case farm yield data for one or more years are unavailable or there was no production, the Secretary shall provide for appraisals to be made on the basis of actual yields and program payment yields for similar farms in the area for which data are available. Notwithstanding the foregoing provisions of this paragraph in the determination of yields, the Secretary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield established on the basis of such yields shall be reduced under other provisions of this paragraph. If the Secretary determines it necessary, the Secretary may establish national, State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors affecting such yields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. If national, State, or county program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields.
(5)(A)(i) Notwithstanding any other provision of this subsection, the Secretary may establish a limitation on the acreage planted to extra long staple cotton if the Secretary determines that the total supply of extra long staple cotton, in the absence of such limitation, will be excessive taking into account the need for an adequate carryover to maintain reasonable and stable prices and to meet a national emergency. Such limitation shall be achieved by applying a uniform percentage reduction (including a zero percentage reduction) to the acreage base for each extra long staple cotton-producing farm. Producers who knowingly produce extra long staple cotton in excess of the permitted acreage for the farm shall be ineligible for extra long staple cotton loans and payments with respect to that farm. The acreage base for any farm for the purpose of determining any reduction required to be made for any year as a result of a limitation under this subparagraph shall be the average acreage planted on the farm to extra long staple cotton for harvest in the three crop years immediately preceding the year prior to the year for which the determination is made. For the purpose of the preceding sentence, acreage planted to extra long staple cotton for harvest shall include any acreage which the producers were prevented from planting to extra long staple cotton or other nonconserving crops in lieu of extra long staple cotton because of drought, flood, or other natural disaster or other condition beyond the control of the producers. The Secretary may make adjustments to reflect established crop-rotation practices and to reflect such other factors as the Secretary determines should be considered in determining a fair and equitable base. There is hereby established for the 1984, 1985, and 1986 crops an acreage base reserve equal to 5 per centum of the total of the farm acreage bases established for the crop under the foregoing provisions of this subparagraph. Such reserve shall be in addition to the total of the farm acreage bases and shall be used by the county committees, in accordance with regulations of the Secretary, for making adjustments of farm acreage bases to correct inequities and prevent hardship, and for establishing bases for farms on which no extra long staple cotton was planted during the preceding four years. A number of acres on the farm determined by dividing (i) the product obtained by multiplying the number of acres required to be withdrawn from the production of extra long staple cotton times the number of acres actually planted to such commodity, by (ii) the number of acres authorized to be planted to such commodity under the limitation established by the Secretary, shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion. The number of acres so determined is hereafter in this subsection referred to as "reduced acreage". The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the reduced acreage to be devoted to sweet sorghum, hay and grazing, or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not affect farm income adversely. The individual farm program acreage shall be the actual acreage planted on the farm to extra long staple cotton for harvest within the permitted extra long staple cotton acreage for the farm as established under this paragraph.
(ii) Notwithstanding any other provision of this Act, the Secretary shall ensure, under such terms and conditions as may be prescribed by the Secretary, that the total of the crop acreage bases established on a farm which is enrolled in a production adjustment program for any commodity shall not be increased as a result of the application of the provisions set forth in paragraph (13)(C), as extended for the 1989 and 1990 crop.
(B) The Secretary may make land diversion payments to producers of extra long staple cotton, whether or not an acreage limitation program for extra long staple cotton is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of extra long staple cotton to desirable goals. Such land diversion payments shall be made to producers who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community.
(C) The reduced acreage and the diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purpose of the foregoing sentence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations.
(6) An operator of a farm desiring to participate in the program conducted under paragraph (5) shall execute an agreement with the Secretary providing for such participation not later than such date as the Secretary may prescribe. The Secretary may, by mutual agreement with the producers on the farm, terminate or modify any such agreement if the Secretary determines such action necessary because of an emergency created by drought or other disaster or to prevent or alleviate a shortage in the supply of agricultural commodities.
(7) The Secretary shall provide for the sharing of payments made under this subsection for any farm among the producers on the farm on a fair and equitable basis.
(8) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(9) If the failure of a producer to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans and payments, the Secretary may, nevertheless, make such loans and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the failure. The Secretary may authorize the county and State committees established under
(10) The Secretary may issue such regulations as the Secretary determines necessary to carry out the provisions of this subsection.
(11) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation.
(12) The provisions of
(13)(A) Compliance on a farm with the terms and conditions of any other commodity program or compliance with crop acreage base requirements for any other commodity may not be required as a condition of eligibility for loans or payments under this section.
(B) The Secretary may not require producers on a farm, as a condition of eligibility for loans or payments under this section for the farm, to comply with the terms and conditions of the extra long staple cotton program with respect to any other farm operated by the producers.
(14) In order to encourage and assist producers in the orderly ginning and marketing of their extra long staple cotton production, the Secretary shall make recourse loans available to such producers on seed cotton in accordance with authority vested in the Secretary under the Commodity Credit Corporation Charter Act [
(15) References made in sections 1422, 1423, 1426,2 1427, and 1431 of this title to the terms "support price", "level of support", and "level of price support" shall be considered to apply as well to the level of loans for extra long staple cotton under this subsection; and references to the terms "price support", "price support operations", and "price support program" in such sections and in
(16) Notwithstanding any other provision of law, this subsection shall not be applicable to the 1996 and subsequent crops of extra long staple cotton.
(Oct. 31, 1949, ch. 792, title I, §103, as added
References in Text
This Act, referred to in subsecs. (d)(1), (11), (12) and (h)(5)(A)(ii), is act Oct. 31, 1949, ch. 792,
The Commodity Credit Corporation Charter Act, referred to in subsec. (h)(14), is act June 29, 1948, ch. 704,
Codification
Amendments
1990—Subsec. (h)(3)(A).
Subsec. (h)(3)(C).
Subsec. (h)(4).
Subsec. (h)(5).
Subsec. (h)(6).
Subsec. (h)(7) to (12).
Subsec. (h)(13).
"(A) Notwithstanding any other provision of law, except as provided in subparagraph (B), compliance on a farm with the terms and conditions of any other commodity program may not be required as a condition of eligibility for loans or payments under this subsection.
"(B) In the case of each of the 1989 and 1990 crops of extra long staple cotton, the Secretary may require that, as a condition of eligibility of producers for loans or payments under this subsection, the acreage planted for harvest on the farm to any other commodity for which an acreage limitation program is in effect shall not exceed the crop acreage base established for the farm for that commodity.
"(C) Notwithstanding any other provision of law, in the case of each of the 1987 through 1990 crops of extra long staple cotton, compliance with the terms and conditions of the program authorized by this subsection may not be required as a condition of eligibility for loans, purchases, or payments under any other commodity program."
Subsec. (h)(14), (15).
Subsec. (h)(16).
Subsec. (h)(17) to (19).
1988—Subsec. (f)(3).
Subsec. (h)(8)(A).
Subsec. (h)(16)(C).
1987—Subsec. (h)(3)(B).
1986—Subsec. (h)(16).
1985—Subsec. (h)(2).
Subsec. (h)(4).
Subsec. (h)(19).
1984—Subsec. (g)(3)(B).
Subsec. (g)(9)(A).
Subsec. (g)(9)(B).
1983—Subsec. (h).
Subsec. (f)(3).
1981—Subsec. (g).
1980—Subsec. (f)(5)(A).
Subsec. (f)(5)(B).
Subsec. (f)(5)(C).
1978—Subsec. (f)(1).
1977—Subsec. (f).
1973—Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(4)(A).
Subsec. (e)(5).
1970—Subsec. (e).
1968—Subsec. (d)(1).
1966—Subsec. (d)(3).
1965—Subsec. (b).
Subsec. (d).
1964—Subsec. (a).
Subsecs. (b), (c).
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1988 Amendment
Amendment by
Effective and Termination Dates of 1987 Amendment
Section 1101(d) of
Effective and Termination Dates of 1983 Amendments
Section 4 of
Section 155 of
Effective and Termination Dates of 1981 Amendment
Section 502 of
Effective and Termination Dates of 1978 Amendment
Section 102 of
Amendment by
Effective and Termination Dates of 1977 Amendment
Section 602 of
Effective Date of 1973 Amendment
Section 1(20)(C) of
Section 1(20)(D) of
Effective Date of 1970 Amendment
Section 602 of
Inapplicability of Section
Subsec. (a) 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 Referred to in Other Sections
This section is referred to in
2 See References in Text note below.
§1444–1. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §103A, as added Dec. 23, 1985,
Effective and Termination Dates
Section 501 of
§1444–2. Repealed. Pub. L. 104–127, title I, §171(b)(2)(B), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §103B, as added Nov. 28, 1990,
§1444a. Corn and feed grains and cotton programs
(a) Referendum of 1958 corn producers
Not later than December 15, 1958, the Secretary shall conduct a referendum of producers of corn in 1958 in the commercial corn-producing area for 1958 to determine whether such producers favor a price support program as provided in subsection (b) of this section for the 1959 and subsequent crops in lieu of acreage allotments as provided in the Agricultural Adjustment Act of 1938, as amended [
(b) Operative status of certain provisions
Notwithstanding any other provision of law, if less than a majority of the producers voting in the referendum conducted pursuant to subsection (a) of this section favor a price support program as provided in this subsection (b), the following provisions of law shall become inoperative:
(1) [Section enacted
(2) [Section enacted
(3) [Section repealed
(c) Cotton research program
The Secretary of Agriculture is hereby authorized and directed to conduct a special cotton research program designed to reduce the cost of producing upland cotton in the United States at the earliest practicable date. There are hereby authorized to be appropriated such sums, not to exceed $10,000,000 annually, as may be necessary for the Secretary to carry out this special research program. The Secretary shall report annually to the Committee on Agriculture of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry of the Senate with respect to the results of such research.
(d) Cotton insect eradication
In order to reduce cotton production costs, to prevent the movement of certain cotton plant insects to areas not now infested, and to enhance the quality of the environment, the Secretary is authorized and directed to carry out programs to destroy and eliminate cotton boll weevils in infested areas of the United States as provided herein and to carry out similar programs with respect to pink bollworms or any other major cotton insect if the Secretary determines that methods and systems have been developed to the point that success in eradication of such insects is assured. The Secretary shall carry out the eradication programs authorized by this subsection through the Commodity Credit Corporation. In carrying out insect eradication projects, the Secretary shall utilize the technical and related services of appropriate Federal, State, private agencies, and cotton organizations. Producers and landowners in an eradication zone, established by the Secretary, who are receiving benefits from any program administered by the United States Department of Agriculture, shall, as a condition of receiving or continuing any such benefits, participate in and cooperate with the eradication project, as specified in regulations of the Secretary.
The Secretary may issue such regulations as he deems necessary to enforce the provisions of this subsection with respect to achieving the compliance of producers and landowners who are not receiving benefits from any program administered by the United States Department of Agriculture. Any person who knowingly violates any such regulation promulgated by the Secretary under this subsection may be assessed a civil penalty of not to exceed $5,000 for each offense. No civil penalty shall be assessed unless the person shall have been given notice and opportunity for a hearing on such charge in the county, parish, or incorporated city of the residence of the person charged. In determining the amount of the penalty the Secretary shall consider the appropriateness of such penalty to the size of the business of the person charged, the effect on the person's ability to continue in business, and the gravity of the violation. Where special measures deemed essential to achievement of the eradication objective are taken by the project and result in a loss of production and income to the producer, the Secretary shall provide reasonable and equitable indemnification from funds available for the project and also provide for appropriate protection of the allotment, acreage history, and average yield for the farm. The cost of the program in each eradication zone shall be determined, and cotton producers in the zone shall be required to pay up to one-half thereof, with the exact share in each zone area to be specified by the Secretary upon his finding that such share is reasonable and equitable based on population levels of the target insect and the degree of control measures normally required. Each producer's pro rata share shall be deducted from his cotton payment under this Act or otherwise collected, as provided in regulations of the Secretary. Insofar as practicable, cotton producers and other persons engaged in cotton production in the eradication zone shall be employed to participate in the work of the project in such zone. Funding of the program shall be terminated at such time as the Secretary determines and reports to the Congress that complete eradication of the insects for which programs are undertaken pursuant to this subsection has been accomplished. Funds in custody of agencies carrying out the program shall, upon termination of such program, be accounted for to the Secretary for appropriate disposition.
The Secretary is authorized to cooperate with the Government of Mexico in carrying out operations or measures in Mexico which he deems necessary and feasible to prevent the movement into the United States from Mexico of any insects eradicated under the provisions of this subsection. The measure and character of cooperation carried out under this subsection on the part of the United States and on the part of the Government of Mexico, including the expenditure or use of funds made available by the Secretary under this subsection, shall be such as may be prescribed by the Secretary. Arrangements for the cooperations authorized by this subsection shall be made through and in consultation with the Secretary of State. The Commodity Credit Corporation shall not make any expenditures for carrying out the purposes of this subsection unless the Corporation has received funds to cover such expenditures from appropriations made to carry out the purposes of this subsection. There are hereby authorized to be appropriated to the Commodity Credit Corporation such sums as the Congress may from time to time determine to be necessary to carry out the purposes of this subsection.
(Oct. 31, 1949, ch. 792, title I, §104, as added
References in Text
The Agricultural Adjustment Act of 1938, as amended, referred to in subsec. (a), is act Feb. 16, 1938, ch. 30,
This Act, referred to in subsec. (d), is act Oct. 31, 1949, ch. 792,
Codification
Subsec. (b)(1) of this section, as added by section 201 of
Subsec. (b)(2) of this section, as added by section 201 of
Subsec. (b)(3) of this section, as added by section 201 of
Amendments
1994—Subsec. (c).
1973—Subsec. (d).
1964—Subsec. (c).
1958 Referendum for Selection of Alternative Corn Program; Operative Status of Certain Provisions
Corn producers voted for adoption of price support program as provided in subsec. (b) of this section (254,262) rather than alternative corn acreage allotment and price support program (102,907), the ballot making operative sections 1329a and 1444b and repeal of
§1444b. Feed grains; price support program
(a) Notwithstanding the provisions of
(b) Beginning with the 1959 crop, price support shall be made available to producers for each crop of oats, rye, barley, and grain sorghums at such level of the parity price therefor as the Secretary of Agriculture determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in
(Oct. 31, 1949, ch. 792, title I, §105, as added Oct. 31, 1949, ch. 792, title I, §104(b)(2), as added
Codification
Amendments
1973—
Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b)(1).
Subsec. (b)(1) last sentence.
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (c)(1) second sentence.
Subsec. (c)(1) third sentence.
Subsec. (c)(1) fifth sentence.
Subsec. (c)(1) last sentence.
Subsec. (c)(3).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (g).
1970—
Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Former subsec. (b) provided that "Beginning with the 1959 crop, price support shall be made available to producers for each crop of oats, rye, barley, and grain sorghums at such level of the parity price therefor as the Secretary of Agriculture determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (c)(4).
Subsec. (c)(5), (6).
Subsec. (d).
Subsec. (e).
Subsec. (f).
Subsecs. (g) to (i).
1968—
Subsec. (e).
1966—
Subsec. (e).
1965—
Subsec. (d).
Subsec. (e).
Subsec. (e) first sentence.
Subsec. (e) second sentence.
Subsec. (e) third sentence.
Subsec. (e) fourth sentence.
Subsec. (e) fifth sentence.
Subsec. (e) sixth sentence.
Subsec. (e) seventh sentence.
Subsec. (e) eighth sentence.
Subsec. (e) ninth sentence.
Subsec. (e) tenth sentence.
Subsec. (e) eleventh sentence.
1963—
Subsec. (a).
Subsec. (d).
Subsec. (d) first sentence.
Subsec. (d) second sentence.
Subsec. (d) third sentence.
Subsec. (d) fourth sentence.
Subsec. (d) fifth sentence.
Subsec. (d) sixth sentence.
Subsec. (d) seventh sentence.
Subsec. (d) eighth sentence.
Subsec. (d) ninth sentence.
Subsec. (d) tenth sentence.
1962—
Subsec. (a).
Subsec. (c).
Subsec. (c)(4).
Subsec. (c)(5).
Subsec. (c)(6).
1961—
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (c)(3).
Subsec. (c)(4).
1958—
Subsec. (a).
Subsec. (b).
Effective and Termination Dates of 1973 Amendment
Section 501 of
Section 501(a), formerly §501, of
Section 501(b) of
Effective and Termination Dates of 1970 Amendment
Section 501 of
Inapplicability of Section
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
1958 Referendum for Selection of Alternative Corn Program; Operative Status of Certain Provisions
Corn producers voted for adoption of price support program as provided in
Section Referred to in Other Sections
This section is referred to in
§§1444c, 1444d. Repealed. Pub. L. 101–624, title IV, §401(1), Nov. 28, 1990, 104 Stat. 3400
Section 1444c, act Oct. 31, 1949, ch. 792, title I, §105A, as added Sept. 29, 1977,
Section 1444d, act Oct. 31, 1949, ch. 792, title I, §105B, as added Dec. 22, 1981,
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
§1444e. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §105A, formerly §105C, as added Dec. 23, 1985,
Effective and Termination Dates
Section 401 of
§1444e–1. Loans and purchases for 1986 through 1996 crops of corn
(a) Notwithstanding any other provision of law, effective only for each of the 1986 through 1996 crops of feed grains, the Secretary of Agriculture may make available loans and purchases, as provided in this section, to producers on a farm who—
(1) for silage—
(A) cut corn (including mutilated corn) that the producers have produced in such crop year; or
(B) purchase or exchange corn (including mutilated corn) that has been produced in such crop year by another producer (including a producer that is not participating in an acreage limitation or set-aside program for such crop established by the Secretary); and
(2) participate in an acreage limitation or set-aside program for such crop of corn established by the Secretary.
(b) Such loans and purchases may be made on a quantity of corn of the same crop, other than the corn obtained for silage, acquired by the producer equivalent to a quantity determined by multiplying—
(1) the acreage of corn obtained for silage; by
(2) the lower of the farm program payment yield or the actual yield on a field, as determined by the Secretary, that is similar to the field from which such silage was obtained.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
Amendments
1990—Subsec. (a).
Effective Date of 1990 Amendment
Amendment by
§1444f. Repealed. Pub. L. 104–127, title I, §171(b)(2)(C), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §105B, as added Nov. 28, 1990,
§1444f–1. Repealed. Pub. L. 102–237, title I, §114(b)(2), Dec. 13, 1991, 105 Stat. 1840
Section,
§1445. Tobacco price support levels for 1960 and subsequent years
Notwithstanding any of the provisions of
(c) If acreage poundage or poundage farm marketing quotas are in effect under
(d) Notwithstanding the provisions of
(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
(B) enforced in the same manner as provided in
(3) The Secretary may enforce this subsection in the courts of the United States.
(Oct. 31, 1949, ch. 792, title I, §106, as added
References in Text
This Act, referred to in subsec. (g)(1), is act Oct. 31, 1949, ch. 792,
Amendments
1994—Subsec. (g)(1).
Subsec. (g)(2).
Subsec. (h).
1993—Subsec. (h).
1990—Subsec. (g).
1987—Subsec. (f)(8).
"(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
1986—Subsec. (c)(1).
Subsec. (f)(4) to (7).
"(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).
1985—Subsec. (f)(5).
1983—Subsec. (e).
Subsecs. (f), (g).
1982—Subsec. (d).
1971—Subsec. (c).
1965—Subsec. (c).
Effective Date of 1994 Amendment
Amendment by
Effective Date of 1990 Amendment
Amendment by
Effective and Termination Dates of 1987 Amendment
Section 1104(a) of
Effective Date of 1986 Amendment
Section 1102(a) of
Section 1102(b) of
Section 1105(b) of
Section 1112 of subtitle B (§§1101–1112) of title I of
Effective and Termination Dates of 1983 Amendments
Section 202 of
Section 1 of
Effective Date of 1982 Amendment
Section 102 of
Waiver Authority of President
Section 422(c) of
[For effective date of section 422(c) of
Tobacco Program Improvements: Congressional Findings and Statement of Purposes
Section 1101 of subtitle B (§§1101–1112) of title I of
"(a)
"(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)
"(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
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
Tobacco Program Cost
Section Referred to in Other Sections
This section is referred to in
§1445–1. Producer contributions and purchaser assessments for No Net Cost Tobacco Fund
(a) Definitions
As used in the section—
(1) the term "association" means a producer-owned cooperative marketing association which has entered into a loan agreement with the Corporation to make price support available to producers;
(2) the term "Corporation" means the Commodity Credit Corporation, an agency and instrumentality of the United States within the Department of Agriculture through which the Secretary makes price support available to producers;
(3) the term "Fund" means the capital account to be established within each association, which account shall be known as the "No Net Cost Tobacco Fund";
(4) the term "to market" means to dispose of quota tobacco by voluntary or involuntary sale, barter, exchange, gift inter vivos, or consigning the tobacco to an association for a price support advance;
(5) the term "net gains" means the amount by which total proceeds obtained from the sale by an association of a crop of quota tobacco pledged to the Corporation for price support loan exceeds the principal amount of the price support loan made by the Corporation to the association on such crop, plus interest and charges;
(6) the term "purchaser" means any person who purchases in the United States, either directly or indirectly for the account of such person or another person, Flue-cured or Burley quota tobacco; and
(7) the term "quota tobacco" means any kind of tobacco for which marketing quotas are in effect or for which marketing quotas are not disapproved by producers.
(b) Commodity Credit Corporation loans to associations
The Secretary may carry out the tobacco price support program through the Corporation and shall, except as otherwise provided by this section, continue to make price support available to producers through loans to associations that, under agreements with the Corporation, agree to make loan advances to producers.
(c) Establishment of No Net Cost Tobacco Funds
Each association shall establish within the association a Fund. The Fund shall be comprised of amounts contributed by producer-members or paid by or on behalf of purchasers and importers as provided in subsection (d) of this section.
(d) Requirements
The Secretary shall—
(1) require—
(A) that—
(i) as a condition of eligibility for price support, each producer of each kind of quota tobacco shall agree, with respect to all such kind of quota tobacco marketed by the producer from a farm, to contribute to the appropriate association, for deposit in the association's Fund, an amount determined from time to time by the association with the approval of the Secretary;
(ii) each purchaser of Flue-cured and Burley quota tobacco shall pay to the appropriate association, for deposit in the Fund of the association, an assessment, in an amount determined from time to time by the association with the approval of the Secretary, with respect to purchases of all such kind of tobacco marketed by a producer from a farm (including purchases of such tobacco from the 1986 and subsequent crops from the association); and
(iii) each importer of Flue-cured or Burley tobacco shall pay to the appropriate association, for deposit in the Fund of the association, an assessment, in an amount that is equal to the product obtained by multiplying—
(I) the number of pounds of tobacco that is imported by the importer; by
(II) the sum of the amount of per pound producer contributions and purchaser assessments that are payable by domestic producers and purchasers of Flue-cured and Burley tobacco under clauses (i) and (ii); and
(B) that, upon making a contribution under subparagraph (A)—
(i) in the case of quota tobacco marketed other than by consignment to an association for a price support advance, the producer shall receive from the association capital stock or, if the association does not issue such stock, a capital certificate having a par value or face amount, respectively, equal to the contribution; and
(ii) in the case of quota tobacco consigned by the producer to an association for a price support advance, the producer shall receive from the association a qualified per unit retain certificate, as defined in
The amount of producer contributions and purchaser assessments shall be determined in such a manner that producers and purchasers share equally, to the maximum extent practicable, in maintaining the Fund of an association. In making such determination with respect to the assessment of a purchaser, only 1985 and subsequent crops of Flue-cured and Burley quota tobacco shall be taken into account. The Secretary shall approve the amount of the contributions and assessments determined by an association from time to time under this paragraph only if the Secretary determines that such amount will result in accumulation of a Fund adequate to reimburse the Corporation for any net losses which the Corporation may sustain under its loan agreements with the association, based on reasonable estimates of the amounts which the Corporation will lend to the association under such agreements and the proceeds which will be realized from the sales of tobacco which are pledged to the Corporation by the association as security for loans;
(2) require that any producer contribution or purchaser or importer assessment due under paragraph (1) shall be collected—
(A) from the person who acquired the tobacco involved from the producer, except that if the tobacco is marketed by sale, an amount equal to the producer contribution may be deducted by the purchaser from the price paid to such producer;
(B) if the tobacco involved is marketed by a producer through a warehouseman or agent, from such warehouseman or agent, who may—
(i) deduct an amount equal to the producer contribution from the price paid to the producer; and
(ii) add an amount equal to the purchaser assessment to the price paid by the purchaser;
(C) if the tobacco involved is marketed by a producer directly to any person outside the United States, from the producer, who may add an amount equal to the purchaser assessment to the price paid by the purchaser; and
(D) if the tobacco involved is imported by an importer, from the importer.1
(3) require that the Fund established by each association shall be kept and maintained separate from all other accounts of the association and shall be used exclusively, as prescribed by the Secretary, for the purpose of ensuring, insofar as practicable, that the Corporation, under its loan agreements with the association with respect to 1982 and subsequent crops of quota tobacco, will suffer no net losses (including, but not limited to, recovery of the amount of loans extended to cover the overhead costs of the association), after any net gains are applied to net losses of the corporation 2 under paragraph (5): Provided, That, notwithstanding any other provision of law, use by the association of moneys in the Fund, including interest and other earnings, for the purposes of reducing the association's outstanding indebtedness to the Corporation associated with 1982 and subsequent crops of quota tobacco and making loan advances to producers is authorized, and use of such moneys for any other purposes that will be mutually beneficial to producers and purchasers who contribute or pay to the Fund and to the Corporation, shall, if approved by the Secretary, be considered an appropriate use of the Fund;
(4) permit an association to invest the monies in the Fund in such manner as the Secretary may approve, and require that the interest or other earnings on such investment shall become a part of the Fund;
(5) require that loan agreements between the Corporation and the association provide that the Corporation shall retain the net gains from each of the 1982 and subsequent crops of tobacco pledged by the association as security for price support loans, and that such net gains will be used for the purpose of (A) offsetting any losses sustained by the Corporation under its loan agreements with the association for any of the 1982 and subsequent crops of loan tobacco, or (B) reducing the outstanding balance of any price support loan made by the Corporation to the association under such agreements for 1982 and subsequent crops of tobacco, or for both such purposes;
(6) effective for the 1982 through 1985 crops of quota tobacco, provide, in loan agreements between the Corporation and an association, that if the Secretary determines that the amount in the Fund or the net gains referred to in paragraph (5) exceed the amounts necessary for the purposes specified in this section, such excess (A) in the case of an association making price support available to producers of quota tobacco other than Burley tobacco, will be released to the association by the Corporation and may be devoted to other purposes by the association, and (B) in the case of an association making price support available to producers of Burley quota tobacco, will be released to the association by the Corporation and may be distributed, as determined by the association, to the producer-members of the association as a capital distribution or net gain distribution; and
(7) effective for the 1986 and subsequent crops of quota tobacco, provide, in loan agreements between the Corporation and an association, that if the Secretary determines that the amount in the Fund or the net gains referred to in paragraph (5) exceeds the amounts necessary for the purposes specified in this section, the association, with the approval of the Secretary, may suspend the payment and collection of contributions and assessments under this section on terms and conditions established by the association, with the approval of the Secretary.
(e) Failure or refusal of association to comply
If any association which has entered into a loan agreement with the Corporation with respect to 1982 or subsequent crops of quota tobacco fails or refuses to comply with the provisions of this section, the regulations issued by the Secretary thereunder, or the terms of such agreement, the Secretary may terminate such agreement or provide that no additional loan funds may be made available thereunder to the association. In such event, the Secretary shall make price support available to producers of the kind or kinds of tobacco, the price of which had been supported through loans to such association, through such other means as are authorized by this Act or the Commodity Credit Corporation Charter Act [
(f) Termination of loan agreement; dissolution or merger of association; disposition of amounts in Fund
If, under subsection (e) of this section, a loan agreement with an association is terminated, or if an association having a loan agreement with the Corporation is dissolved, merges with another association, or otherwise ceases to operate, the Fund or the net gains referred to in subsection (d)(5) of this section shall be applied or disposed of in such manner as the Secretary may approve or prescribe, except that they shall, to the extent necessary, first be applied or used for the purposes therefor prescribed in this section.
(g) Regulations
The Secretary shall issue regulations necessary to carry out the provisions of this section.
(h) Failure to collect contribution or assessment; marketing penalty; civil action for review of penalty
(1)(A) Each person who fails to collect any contribution or assessment as required by subsection (d)(2) of this section and remit such contribution or assessment to the association, at such time and in such manner as may be prescribed by the Secretary, shall be liable, in addition to any amount due, to a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the kind of tobacco involved for the immediately preceding year on the quantity of tobacco as to which the failure occurs.
(B) Each importer who fails to pay to the association an assessment as required by subsection (d)(2) of this section at such time and in such manner as may be prescribed by the Secretary, shall be liable, in addition to any amount due, for a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the respective kind of tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs.
(C) The Secretary may reduce any such marketing penalty in such amount as the Secretary determines equitable in any case in which the Secretary determines that the failure was unintentional or without knowledge on the part of the person concerned.
(D) Any penalty provided for under this paragraph shall be assessed by the Secretary after notice and opportunity for a hearing.
(2)(A) Any person against whom a penalty is assessed under this subsection may obtain review of such penalty in an appropriate district court of the United States by filing a civil action in such court not later than 30 days after such penalty is imposed.
(B) The Secretary shall promptly file in such court a certified copy of the record on which the penalty is based.
(3) The district courts of the United States shall have jurisdiction to review and enforce any penalty imposed under this subsection.
(4) An amount equivalent to any penalty collected by the Secretary under this subsection shall be transmitted by the Secretary to the appropriate association, for deposit in the Fund of such association.
(5) The remedies provided in this subsection shall be in addition to, and not exclusive of, other remedies that may be available.
(Oct. 31, 1949, ch. 792, title I, §106A, as added
References in Text
This Act, referred to in subsec. (e), is act Oct. 31, 1949, ch. 792,
The Commodity Credit Corporation Charter Act, referred to in subsec. (e), is act June 29, 1948, ch. 704,
Codification
Amendments
1993—Subsec. (c).
Subsec. (d)(1)(A)(iii).
Subsec. (d)(2).
Subsec. (h)(1)(B) to (D).
1986—Subsec. (a)(6), (7).
Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(1)(A)(i).
Subsec. (d)(1)(A)(ii), (iii).
Subsec. (d)(2).
Subsec. (d)(3).
Subsec. (d)(6).
Subsec. (d)(7).
Subsec. (h).
1983—Subsec. (d)(2).
Subsec. (d)(3).
Effective Date of 1986 Amendment
Section 1108(a) of
Effective Date
Section 101 of
Waiver Authority of President
For authority of President to waive application of this section to imported tobacco if President determines that waiver is necessary or appropriate pursuant to an international agreement entered into by United States, see section 422(c) of
Rulemaking Procedures
Secretary of Agriculture to implement amendments by
Congressional Findings and Declaration of Purpose for No Net Cost Tobacco Program Act of 1982
Section 2 of
"(1) in order to implement the intent of Congress, as expressed in the Agriculture and Food Act of 1981 [see Short Title of 1981 Amendment note set out under
"(2) producers of quota tobacco should be required, as a condition of receiving the benefits of price support for their tobacco, to contribute to a capital account to be established by each producer-owned marketing association through which price support advances are made available to producers; and
"(3) the account so established should be used by the associations exclusively for the purpose of achieving a no net cost tobacco program."
Section Referred to in Other Sections
This section is referred to in
1 So in original. The period probably should be a semicolon.
2 So in original. Probably should be capitalized.
§1445–2. Marketing assessments to No Net Cost Tobacco Account
(a) Definitions
As used in this section—
(1) the term "association" means a producer-owned cooperative marketing association which has entered into a loan agreement with the Corporation to make price support available to producers of a kind of tobacco;
(2) the term "Account" means an account established by and in the Corporation for an association, which account shall be known as the "No Net Cost Tobacco Account";
(3) the term "to market" means to dispose of tobacco by voluntary or involuntary sale, barter, exchange, gift inter vivos, or consigning the tobacco to an association for a price support advance;
(4) the term "net gains" means the amount by which total proceeds obtained from the sale by an association of a crop of a kind of tobacco pledged to the Corporation for price support loan exceeds the principal amount of the price support loan made by the Corporation to the association on such crop, plus interest and charges;
(5) the term "tobacco" means any kind of tobacco, as defined in
(6) the term "area", when used in connection with an association, means the general geographical area in which farms of the producer-members of such association are located, as determined by the Secretary;
(7) the term "Corporation" shall have the meaning given to it in
(8) the term "purchaser" means any person who purchases in the United States, either directly or indirectly for the account of such person or another person, Flue-cured or Burley quota tobacco.
(b) Continued availability of price support; establishment of No Net Cost Tobacco Account
Notwithstanding
(1) continue to make price support available to producers through such association in accordance with loan agreements entered into between the Corporation and such association; and
(2) establish and maintain in accordance with this section a No Net Cost Tobacco Account for such association in lieu of the No Net Cost Tobacco Fund established within such association under
(c) Establishment of No Net Cost Tobacco Account within Commodity Credit Corporation; disposition of amounts in No Net Cost Tobacco Fund
(1) Any Account established for an association under subsection (b)(2) of this section shall be established within the Corporation and shall be comprised of amounts paid by producers, purchasers, and importers under subsection (d) of this section.
(2) Upon the establishment of an Account for an association, any amount in the No Net Cost Tobacco Fund established within such association under
(d) Payment of assessments to Corporation for deposit into Account; determination and adjustment of amounts; collection
(1)(A) If an Account is established for an association under subsection (b)(2) of this section, then the Secretary shall require (in lieu of any requirement under
(B) The Secretary shall also require (in lieu of any requirement under
(C) The Secretary shall also require (in lieu of any requirement under
(2)(A) For purposes of paragraph (1), the Secretary shall determine and adjust from time to time, in consultation with such association, the amount of the marketing assessment which shall be imposed, as a condition of eligibility for price support, on each pound of the kind of tobacco involved marketed by a producer from a farm within such association's area and the amount of the assessment to be paid by purchasers of tobacco. The amount of the assessment to be paid by producers and purchasers shall be determined in such a manner that producers and purchasers share equally, to the maximum extent practicable, in maintaining the Account of an association. In making such determination with respect to the assessment of a purchaser, only 1985 and subsequent crops of Flue-cured and Burley quota tobacco shall be taken into account. The amount of the assessment shall be equal to an amount which, when collected, will result in an accumulation of an Account for such association adequate to reimburse the Corporation for any net losses which the Corporation may sustain under its loan agreements with such association, based on reasonable estimates of the amounts which the Corporation will lend to such association under such agreements and the proceeds which will be realized from the sales of the kind of tobacco involved which are pledged to the Corporation by such association as security for loans. Notwithstanding the foregoing provisions of this paragraph, the amount of any assessment that is determined by the Secretary for the 1986 and subsequent crops of Burley quota tobacco shall be determined without regard to any net losses that the Corporation may sustain under the loan agreements of the Corporation with such association with respect to the 1983 crop of such tobacco.
(B) With respect to the 1985 crop of Burley tobacco, for the purposes of paragraph (1), the marketing assessment shall not be more than 4 cents per pound.
(C) The amount of the assessment to be paid by importers shall be an amount that is equal to the product obtained by multiplying—
(i) the number of pounds of tobacco that is imported by the importer; by
(ii) the sum of the amount of per pound producer and purchaser assessments that are payable by domestic producers and purchasers of the respective kind of tobacco under this paragraph.
(3)(A) Except as provided in subparagraphs (B) and (C), any assessment to be paid by a producer or a purchaser under paragraph (1) shall be collected from the person who acquired the tobacco involved from such producer, except that if the tobacco is marketed by sale, an amount equal to the producer assessment may be deducted by the purchaser from the price paid to such producer.
(B) If tobacco of the kind for which an Account is established is marketed by a producer through a warehouseman or agent, both the producer and the purchaser assessment shall be collected from such warehouseman or agent, who may—
(i) deduct an amount equal to the producer assessment from the price paid to the producer; and
(ii) add an amount equal to the purchaser assessment to the price paid by the purchaser.
(C) If tobacco of the kind for which an Account is established is marketed by a producer directly to any person outside the United States, both the producer and the purchaser assessment shall be collected from the producer, who may add an amount equal to the purchaser assessment to the price paid by the purchaser.
(D) If Flue-cured or Burley tobacco is imported by an importer, any importer assessment required by subsection (d) of this section shall be collected from the importer.
(e) Deposits into Account; insurance against net losses
Amounts deposited in an Account established for an association shall be used by the Secretary for the purpose of ensuring, insofar as practicable, that the Corporation under its loan agreements with such association will suffer, with respect to the crop involved, no net losses (including, but not limited to, recovery of the amount of loans extended to cover the overhead costs of the association), after any net gains are applied to net losses of the Corporation pursuant to subsection (h) of this section.
(f) Suspension of payment and collection of marketing assessments
The Secretary shall provide, in any loan agreement between the Corporation and an association for which an Account has been established under subsection (b)(2) of this section, that if the Secretary determines that the amount in such Account or the net gains referred to in subsection (h) of this section exceed the amounts necessary for the purposes of this section, then the Secretary, in consultation with such association, may suspend the payment and collection of marketing assessments under this section upon terms and conditions established by the Secretary.
(g) Disposition of amounts in Account in the event of termination of loan agreement or account or dissolution or merger of association
With respect to any association for which an Account is established under subsection (b)(2) of this section, if a loan agreement between the Corporation and such association is terminated, if such association is dissolved or merges with another association that has entered into a loan agreement with the Corporation to make price support available to producers of the kind of tobacco involved, or if such Account terminates by operation of law, then amounts in such Account and the net gains referred to in subsection (h) of this section shall be applied to or disposed of in such manner as the Secretary may prescribe, except that they shall, to the extent necessary, first be applied to or used for the purposes therefor prescribed in this section.
(h) Net gains
The provisions of
(i) Regulations
The Secretary shall issue regulations necessary to carry out the provisions of this section.
(j) Failure to collect assessment; marketing penalty; civil action for review of penalty
(1)(A) Each person who fails to collect any assessment as required by subsection (d)(3) of this section and remit such assessment to the Corporation, at such time and in such manner as may be prescribed by the Secretary, shall be liable, in addition to any amount due, to a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the kind of tobacco involved for the immediately preceding year on the quantity of tobacco as to which the failure occurs.
(B) Each importer who fails to pay to the Corporation an assessment as required by subsection (d) of this section at such time and in such manner as may be prescribed by the Secretary, shall be liable, in addition to any amount due, to a marketing penalty at a rate equal to 75 percent of the average market price (calculated to the nearest whole cent) for the respective kind of tobacco for the immediately preceding year on the quantity of tobacco as to which the failure occurs.
(C) The Secretary may reduce any such marketing penalty in such amount as the Secretary determines equitable in any case in which the Secretary determines that the failure was unintentional or without knowledge on the part of the person concerned.
(D) Any penalty provided for under this paragraph shall be assessed by the Secretary after notice and opportunity for a hearing.
(2)(A) Any person against whom a penalty is assessed under this subsection may obtain review of such penalty in an appropriate district court of the United States by filing a civil action in such court not later than 30 days after such penalty is imposed.
(B) The Secretary shall promptly file in such court a certified copy of the record on which the penalty is based.
(3) The district courts of the United States shall have jurisdiction to review and enforce any penalty imposed under this subsection.
(4) An amount equivalent to any penalty collected by the Secretary under this subsection shall be transmitted by the Secretary to the Corporation, for deposit in the Account of the appropriate association.
(5) The remedies provided in this subsection shall be in addition to, and not exclusive of, other remedies that may be available.
(Oct. 31, 1949, ch. 792, title I, §106B, as added
Amendments
1993—Subsec. (c)(1).
Subsec. (d).
Subsec. (j)(1)(B) to (D).
1986—Subsec. (a)(8).
Subsec. (c)(1).
Subsec. (d)(1).
Subsec. (d)(2)(A).
Subsec. (d)(3).
"(A) Except as provided in subparagraph (B), any marketing assessment to be paid by a producer under paragraph (1) shall be collected from the person who acquired the tobacco involved from such producer but an amount equal to such assessment may be deducted by the purchaser from the price paid to such producer in case such tobacco is marketed by sale.
"(B) If tobacco of the kind for which an Account is established is marketed by a producer through a warehouseman or other agent, then such assessment shall be collected from such warehouseman or agent who may deduct an amount equal to such assessment from the price paid to the producer. If tobacco of the kind for which an Account is established is marketed by a producer directly to any person outside the United States, such assessment shall be collected from the producer."
Subsec. (j).
1985—Subsec. (d)(2).
1983—Subsec. (a)(1).
Subsec. (a)(5).
Effective Date of 1986 Amendment
Section 1108(b) of
Effective Date
Section 301 of
Waiver Authority of President
For authority of President to waive application of this section to imported tobacco if President determines that waiver is necessary or appropriate pursuant to an international agreement entered into by United States, see section 422(c) of
Rulemaking Procedures
Secretary of Agriculture to implement amendments by
Section Referred to in Other Sections
This section is referred to in
§1445–3. Purchase of inventory stock
Notwithstanding any other provision of law, in order to reduce or eliminate the excessive inventories of Flue-cured and Burley tobacco held by associations from the 1976 through 1984 crops, and in order to provide for the orderly disposition of such excessive inventories of tobacco in a manner that will not disrupt the orderly marketing of new tobacco crops and will minimize any losses to the Federal Government:
(a) Sale of inventory stock
(1) The producer-owned cooperative marketing association that has entered into a loan agreement with the Commodity Credit Corporation to make price support available to producers of Flue-cured tobacco shall offer to sell the stocks of Flue-cured tobacco of the association from the 1976 through 1984 crops as provided in this section.
(2) Each producer-owned cooperative marketing association that has entered into a loan agreement with the Commodity Credit Corporation to make price support available to producers of Burley tobacco shall offer to sell its stocks of Burley tobacco from the 1982 and 1984 crops as provided in this section.
(3)(A)(i) Not later than 30 days after April 7, 1986, the Commodity Credit Corporation shall acquire title to the Burley tobacco from the 1983 crop that is pledged as security for loans on such tobacco by calling the loans on such tobacco.
(ii) The Corporation shall, then, offer such tobacco for sale at such times, in such quantities, and subject to such conditions as the Corporation considers appropriate.
(B) If the Commodity Credit Corporation has not sold all of the stocks of the 1983 crop of Burley tobacco within 2 years from the date the Corporation calls the loans on such tobacco, the Corporation may offer to sell to domestic manufacturers of cigarettes the remaining stocks of such tobacco as provided in this section.
(b) Sale prices
(1)(A) The stocks of Flue-cured tobacco from the 1976 through 1984 crops shall be offered for sale at the base prices, including carrying charges, in effect as of the date of the offer, reduced by—
(i) 90 percent for Flue-cured tobacco from the 1976 through 1981 crops; and
(ii) 10 percent for Flue-cured tobacco from the 1982 through 1984 crops.
(B) The purchasers of the stocks of Flue-cured tobacco from the 1976 through 1984 crops shall pay the full carrying charges that have accrued to such tobacco from the date of the offer made under this section to the date that such tobacco is removed from the inventory of the association.
(2)(A) The stocks of Burley tobacco from the 1982 crop shall be offered for sale at the listed base price in effect as of July 1, 1985.
(B) The stocks of Burley tobacco from the 1984 crop shall be offered for sale at the costs of the association for such tobacco as of April 7, 1986.
(C) The purchasers of the stocks of Burley tobacco from the 1982 crop shall pay the full carrying charges that have accrued to such tobacco.
(D) The purchasers of the stocks of Burley tobacco from the 1984 crop shall pay the full carrying charges that have accrued to such tobacco from April 7, 1986, to the date such tobacco is removed from the inventories of the associations.
(3)(A) After the 2-year period specified in subsection (a)(3)(B) of this section has expired, if the Commodity Credit Corporation offers to sell the stocks of the Corporation of Burley tobacco from the 1983 crop to domestic manufacturers of cigarettes, such stocks shall be offered for sale at the costs of the association, including carrying charges, as of the date on which the Corporation calls the loans on such tobacco, reduced by 90 percent.
(B) Neither tobacco producers nor tobacco purchasers shall be responsible for carrying charges that accrue to the 1983 crop of Burley tobacco after the date on which the Commodity Credit Corporation calls the loans on such tobacco.
(c) Terms of agreements
(1)(A) Each domestic manufacturer of cigarettes may enter into agreements to purchase inventory stocks of Flue-cured and Burley tobacco, in accordance with this section.
(B) To be eligible for the reductions in price specified in this section, such manufacturer shall enter into such agreements as soon as practicable, but not later than 90 days after April 7, 1986, except that, with respect to the 1983 crop of Burley tobacco, if the Corporation offers to sell the stocks of such tobacco pursuant to subsection (b)(3)(A) of this section, such agreements shall be entered into as soon as practicable, but not later than 90 days after the end of the 2-year period referred to in subsection (a)(3)(B) of this section.
(C)(i) Such agreements shall provide that, over a period of time, each participating domestic manufacturer of cigarettes shall purchase a percentage of the stocks of Flue-cured and Burley tobacco held—
(I) by the producer-owned cooperative marketing associations at the close of the 1984 marketing year; or
(II) in the case of the 1983 crop of Burley tobacco, by the Commodity Credit Corporation at the time the Corporation offers such tobacco for sale to domestic manufacturers of cigarettes under this section.
(ii) The period of time referred to in clause (i) may not exceed—
(I) in the case of Flue-cured tobacco, 8 years from April 7, 1986;
(II) in the case of Burley tobacco from the 1982 and 1984 crops, 5 years from April 7, 1986; and
(III) in the case of the 1983 crop of Burley tobacco, 5 years from the end of the 2-year period referred to in subsection (a)(3)(B) of this section.
(2)(A)(i) The percentage to be purchased by each participating manufacturer shall be at least equal to the respective percentage of the participating manufacturer of the total quantity of net cigarettes manufactured for use as determined by the Secretary of Agriculture under this paragraph on the basis of the monthly reports ("Manufacturer of Tobacco Products—Monthly Reports") submitted (on ATF Form 3068) by manufacturers of tobacco products to the Bureau of Alcohol, Tobacco and Firearms of the Department of the Treasury.
(ii) The Secretary of Agriculture shall request from the Secretary of the Treasury copies of such monthly reports necessary to make the determinations required under this section.
(iii) Notwithstanding any other provision of law, the Secretary of the Treasury may release and disclose such information to the Secretary of Agriculture.
(B) "Net cigarettes manufactured for use" shall be computed by subtracting—
(i) the cumulative figures entered for large and small cigarettes in item 16f of ATF Form 3068 ("Reduction to tobacco"); from
(ii) the cumulative figures entered for large and small cigarettes in item 7 of such form ("Manufactured").
(C)(i) The percentage to be purchased by each participating manufacturer shall be determined—
(I) on April 7, 1986; and
(II) annually thereafter over the course of the respective buy-out periods specified in this subsection.
(ii) Such percentage shall be determined by dividing—
(I) the average net cigarettes manufactured by a manufacturer for use for the 12-month period immediately preceding the appropriate determination date (April 7, 1986, and annually thereafter over the course of the respective buy-out periods specified in this subsection); by
(II) the aggregate average net cigarettes manufactured by all domestic cigarette manufacturers for use for such 12-month period.
(D)(i) The quantity of tobacco to be purchased by each participating manufacturer shall be determined annually.
(ii) Such quantity shall be based on—
(I) the percentage of net cigarettes of a manufacturer manufactured for use, as determined under subparagraph (C); multiplied by
(II) the appropriate annual quantity to be withdrawn from the inventories of the associations or the Commodity Credit Corporation.
(iii) The appropriate annual quantity to be withdrawn from inventories shall be—
(I) 12½ percent of the inventories of Flue-cured tobacco from the 1976 through 1984 crops on hand on April 7, 1986;
(II) 20 percent of the inventories of Burley tobacco from the 1982 and 1984 crops on hand on April 7, 1986; and
(III) 20 percent of the inventories of Burley tobacco from the 1983 crop held by the Commodity Credit Corporation on the date that is 2 years after the call of the loans on such tobacco by the Corporation.
(E) Any purchases by a manufacturer from the inventories of the associations or from the Commodity Credit Corporation for a crop covered by this section in any year of the buy-out period that exceed the quantity of the purchases of the manufacturer required under the agreement, as determined under this section, shall be applied against future purchases required of such manufacturer.
(3) In carrying out this section, manufacturers may confer with one another and, separately or collectively, with associations, the Secretary of Agriculture, and the Commodity Credit Corporation, as may be necessary or appropriate to carry out this section and the purposes of this subtitle.1
(d) Approval of agreements
(1)(A) Each agreement entered into under this section shall be submitted to the Secretary of Agriculture for review and approval.
(B) In the case of an agreement to purchase tobacco from the inventory of a producer association, the agreement shall be submitted by the association.
(C) No agreement may become effective until approved by the Secretary.
(2) The Secretary of Agriculture shall not approve any agreement submitted under this section unless the Secretary has determined that—
(A) the agreement—
(i) will not unduly impair or disrupt the orderly marketing of current and future tobacco crops during the term of the agreement; and
(ii) is otherwise consistent with the purposes of this subtitle; 1 and
(B) the price and other terms of sale are uniform and nondiscriminatory among various purchasers.
(e) Disclosure
The limitations on disclosure set forth in subsections (c) and (d) of
(
References in Text
This subtitle, referred to in subsecs. (c)(3) and (d)(2)(A)(ii), is subtitle B (§§1101–1112) of title I of
Codification
Section was enacted as part of the Consolidated Omnibus Budget Reconciliation Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
Rulemaking Procedures
For implementation of this section by the Secretary of Agriculture without regard to provisions requiring notice and other procedures for public participation in rulemaking contained in
Section Referred to in Other Sections
This section is referred to in
1 See References in Text note below.
§1445a. Wheat price support levels; "cooperator" defined
Notwithstanding the provisions of
(1) Price support for wheat accompanied by domestic certificates shall be at such level not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines appropriate, taking into consideration the factors specified in
(2) Price support for wheat accompanied by export certificates shall be at such level not more than 90 per centum of the parity price therefor as the Secretary determines appropriate, taking into consideration the factors specified in
(3) Price support for wheat not accompanied by marketing certificates shall be at such level, not in excess of 90 per centum of the parity price therefor, as the Secretary determines appropriate, taking into consideration competitive world prices of wheat, the feeding value of wheat in relation to feed grains, and the level at which price support is made available for feed grains.
(4) Price support shall be made available only to cooperators: and, if a commercial wheat-producing area is established for such crop, price support shall be made available only in the commercial wheat-producing area.
(5) Effective with respect to crops planted for harvest in the calendar year 1966 and any subsequent year, the level of price support for any crop of wheat for which a national marketing quota is not proclaimed or for which marketing quotas have been disapproved by producers shall be as provided in
(6) A "cooperator" with respect to any crop of wheat produced on a farm shall be a producer who (i) does not knowingly exceed (A) the farm acreage allotment for wheat on the farm or (B) except as the Secretary may by regulation prescribe, the farm acreage allotment for wheat on any other farm on which the producer shares in the production of wheat, and (ii) complies with the land-use requirements of
(Oct. 31, 1949, ch. 792, title I, §107, as added
Amendments
1973—Subsec. (a).
Subsec. (b).
Subsec. (c).
1970—
1968—Subsec. (2).
1965—
1964—Subsec. (1).
Subsec. (2).
Subsec. (3).
Subsec. (4).
Subsec. (5).
Subsec. (6).
Effective and Termination Dates of 1973 Amendment
Section 1(8) of
Effective and Termination Dates of 1970 Amendment
Section 401 of
Effective and Termination Dates of 1965 Amendment
Section 506 of
Inapplicability of Section
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 Referred to in Other Sections
This section is referred to in
§§1445b, 1445b–1. Repealed. Pub. L. 101–624, title III, §301(1), Nov. 28, 1990, 104 Stat. 3382
Section 1445b, act Oct. 31, 1949, ch. 792, title I, §107A, as added Sept. 29, 1977,
Section 1445b–1, act Oct. 31, 1949, ch. 792, title I, §107B, as added Dec. 22, 1981,
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
§1445b–2. Transferred
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107C, as added Sept. 8, 1982,
§1445b–3. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107A, formerly §107D, as added Dec. 23, 1985,
A prior section 107A of act Oct. 31, 1949, ch. 792, title I, as added Sept. 29, 1977,
Effective and Termination Dates
Section 308 of
§1445b–3a. Repealed. Pub. L. 104–127, title I, §171(b)(2)(D), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §107B, as added Nov. 28, 1990,
§1445b–4. Transferred
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107E, as added Dec. 23, 1985,
§1445b–5. Repealed. Pub. L. 101–624, title XI, §1161(a)(2), Nov. 28, 1990, 104 Stat. 3520
Section, act Oct. 31, 1949, ch. 792, title I, §107F, as added Dec. 23, 1985,
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
§§1445c, 1445c–1. Repealed. Pub. L. 101–624, title VIII, §806(1), Nov. 28, 1990, 104 Stat. 3475
Section 1445c, act Oct. 31, 1949, ch. 792, title I, §108, as added Sept. 29, 1977,
Section 1445c–1, act Oct. 31, 1949, ch. 792, title I, §108A, as added Dec. 22, 1981,
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
§1445c–2. Omitted
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §108A, formerly §108B, as added Dec. 23, 1985,
Effective and Termination Dates
Section 705 of
§1445c–3. Repealed. Pub. L. 104–127, title I, §171(b)(2)(E), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §108B, as added Nov. 28, 1990,
§1445d. Special wheat acreage grazing and hay program for 1978 through 1990 crop years
Notwithstanding any other provision of law—
(a) Authorization for program; acreage designation; payment
The Secretary is authorized to administer a special wheat acreage grazing and hay program (hereinafter in this section referred to as the "special program") in each of the crop years 1978 through 1990. If a special program is implemented, a producer shall be permitted to designate, under such regulations as established by the Secretary, a portion of the acreage on the farm intended to be planted to wheat, feed grains, or upland cotton for harvest, not in excess of 40 per centum thereof, or 50 acres, whichever is greater, which shall be planted to wheat (or some other commodity other than corn or grain sorghum) and used by the producer for grazing purposes or hay rather than for commercial grain production. A producer who elects to participate in the special program shall receive a payment as provided in subsection (c) of this section.
(b) Specific farm acreage
Any producer who elects to participate in the special program under this section shall designate the specific acreage on the farm which is to be used for the purposes set forth in subsection (a) of this section. No crop other than hay may be harvested from acreage included in the special program.
(c) Determination of payment
The Secretary shall pay the producer participating in the special program an amount determined by multiplying the farm program payment yield for wheat established for the farm, by the number of acres included in the special program, by a rate of payment determined by the Secretary to be fair and reasonable. The producer shall not be eligible for any other payment or price support on any portion of the acreage for the farm which the producer elects to include in the special program.
(d) Other acreage set-aside programs
Acreage included in the special program shall be in addition to any acreage included in any acreage set-aside, reduced acreage, or land diversion program otherwise provided for by law.
(e) Rules and regulations
The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section.
(f) Commodity Credit Corporation
The Secretary shall carry out the special program through the Commodity Credit Corporation.
(Oct. 31, 1949, ch. 792, title I, §109, as added
Amendments
1985—Subsec. (a).
1981—Subsec. (a).
Subsec. (d).
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1977, see section 1901 of
§1445e. Farmer owned reserve program
(a) In general
The Secretary shall formulate and administer a farmer owned reserve program under which producers of wheat and feed grains will be able to store wheat and feed grains when the commodities are in abundant supply, extend the time period for the orderly marketing of the commodities, and provide for adequate carryover stocks to ensure a reliable supply of the commodities.
(b) Terms of program
(1) Price support loans
In carrying out this program, the Secretary shall provide extended price support loans for wheat and feed grains. An extended loan shall only be made to a producer after the expiration of a 9-month price support loan (hereafter in this section referred to as the "original loan") made in accordance with this subchapter.
(2) Level of loans
Loans made under this section shall not be less than the then current level of support under the wheat and feed grain programs established under this subchapter.
(3) Other terms and conditions
The Secretary shall provide for—
(A) repayment of the extended price support loan 27 months from the date on which the original loan expired unless, at the discretion of the Secretary, the loan has been extended for one 6-month period;
(B) a rate of interest as provided under subsection (c) of this section; and
(C) payments to producers for storage as provided in subsection (d) of this section.
(4) Regional differences
The Secretary shall ensure that producers are afforded a fair and equitable opportunity to participate in the program established under this section, taking into account regional differences in the time of harvest.
(c) Interest charges
(1) Levying of interest
The Secretary may charge interest on loans under this section whenever the price of wheat or feed grains is equal to or exceeds 105 percent of the then current established price for the commodity.
(2) 90-day period
If interest is levied on the loans under paragraph (1), the interest may be charged for a period of 90 days after the last day on which the price of wheat or feed grains was equal to or in excess of 105 percent of the established price for the commodities.
(3) Rate of interest
The rate of interest charged participants in this program shall not be less than the rate of interest charged by the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust the interest as the Secretary considers appropriate to effectuate the purposes of this section.
(d) Storage payments
(1) In general
The Secretary shall provide storage payments to producers for storage of wheat or feed grains under the program established in this section in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program.
(2) Timing
The Secretary shall make storage payments available to participants in this program at the end of each quarter.
(3) Duration
The Secretary shall cease making storage payments whenever the price of wheat or feed grains is equal to or exceeds 95 percent of the then current established price for the commodities, and for any 90-day period immediately following the last day on which the price of wheat or feed grains was equal to or in excess of 95 percent of the then current established price for the commodities.
(e) Emergencies
Notwithstanding any other provision of law, the Secretary may require producers to repay loans made under this section, plus accrued interest and such other charges as may be required by regulation prior to the maturity date thereof, if the Secretary determines that emergency conditions exist that require that the commodity be made available in the market to meet urgent domestic or international needs and the Secretary reports the determination and the reasons for the determination to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 14 days before taking the action.
(f) Quantity of commodities in program
The Secretary may establish maximum quantities of wheat and feed grains that may receive loans and storage payments under this program as follows:
(1) The maximum quantities of wheat may not be established at less than 300 million bushels, nor more than 450 million bushels.
(2) The maximum quantities of feed grains may not be established at less than 600 million bushels, nor more than 900 million bushels.
(g) Announcement of program
(1) Time of announcement
The Secretary shall announce the terms and conditions of the producer storage program for a crop of wheat and feed grains by—
(A) in the case of wheat, December 15 of the year in which the crop of wheat was harvested; and
(B) in the case of feed grains, March 15 of the year following the year in which the crop of corn was harvested.
(2) Discretionary entry
The Secretary may make extended loans available to producers of wheat or feed grains if—
(A) the Secretary determines that the average market price for wheat or corn, respectively, for the 90-day period prior to the dates specified in paragraph (1) is less than 120 percent of the current loan rate for wheat or corn, respectively; or
(B) as of the appropriate date specified in paragraph (1), the Secretary estimates that the stocks-to-use ratio on the last day of the current marketing year will be—
(i) in the case of wheat, more than 37.5 percent; and
(ii) in the case of corn, more than 22.5 percent.
(3) Mandatory entry
The Secretary shall make extended loans available to producers of wheat or feed grains if the conditions specified in subparagraphs (A) and (B) of paragraph (2) are met for wheat or feed grains, respectively.
(4) Content of announcement
In the announcement, the Secretary shall specify the maximum quantity of wheat or feed grains to be stored under this program that the Secretary determines appropriate to promote the orderly marketing of the commodities.
(h) Discretionary exit
A producer may repay a loan extended under this section at any time.
(i) Reconcentration of grain
The Secretary may, with the concurrence of the owner of grain stored under this program, reconcentrate all such grain stored in commercial warehouses at such points as the Secretary considers to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations that assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by the producer's or warehouseman's commitment.
(j) Management of grain
Whenever grain is stored under this section, the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate the commodities that the Commodity Credit Corporation owns or controls. The purchases to offset sales shall be made within 2 market days following the sales. The Secretary shall make a daily list available showing the price, location, and quantity of the transactions.
(k) Use of Commodity Credit Corporation
The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. 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 utilize the usual and customary channels, facilities, and arrangements of trade and commerce.
(l) Use of commodity certificates
Notwithstanding any other provision of law, if a producer has substituted purchased or other commodities for the commodities originally pledged as collateral for a loan made under this section, the Secretary may allow a producer to repay the loan using a generic commodity certificate that may be exchanged for commodities owned by the Commodity Credit Corporation, if the substitute commodities have been pledged as loan collateral and redeemed only within the same county.
(m) Additional authority
The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations.
(n) Regulations
The Secretary of Agriculture shall issue such regulations as are necessary to carry out this section not later than 60 days after November 28, 1990.
(o) Review
In announcing the terms and conditions of the producer storage program under this section, the Secretary shall review standards concerning the quality of grain that shall be allowed to be stored under the program, and such standards should encourage only quality grain, as determined by the Secretary, to be pledged as collateral for such loans. The Secretary shall review inspection, maintenance, and stock rotation requirements and take the necessary steps to maintain the quality of such grain.
(p) Crops
Notwithstanding any other provision of law, this section shall become effective December 1, 1990.
(Oct. 31, 1949, ch. 792, title I, §110, as added
Amendments
1991—Subsec. (k).
Subsec. (n).
Subsec. (o).
Subsec. (p).
1990—
Subsec. (k).
1988—Subsec. (j).
1987—Subsec. (b)(A)(i).
Subsec. (b)(A)(ii).
1985—Subsec. (a).
Subsec. (b).
Subsec. (e).
1981—Subsec. (a).
Subsec. (b).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(6).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
1980—Subsec. (b).
Subsec. (b)(3).
Subsec. (b)(5).
Subsec. (b)(6).
Subsecs. (c), (d).
Subsec. (e).
Subsec. (e)(3).
Subsecs. (f) to (h).
Effective Date of 1990 Amendment
Amendment by section 1123 of
Effective and Termination Dates of 1988 Amendment
Section 303(b) of
Effective Date of 1985 Amendment
Section 1012(a) of
Section 1012(b) of
Effective Date of 1981 Amendment
Section 1001 of
Effective Date of 1980 Amendment
Section 203(b) of
Amendment by sections 204 and 205 of
Effective Date
Section effective Oct. 1, 1977, see section 1901 of
Inapplicability of Section
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
Comparability of Storage Payments
Section 1124 of
Repayment of Loans Without Penalty
Section 303(a) of
Section Referred to in Other Sections
This section is referred to in
§1445f. International Emergency Food Reserve
The President is encouraged to enter into negotiations with other nations to develop an international system of food reserves to provide for humanitarian food relief needs and to establish and maintain a food reserve, as a contribution of the United States toward the development of such a system, to be made available in the event of food emergencies in foreign countries. The reserves shall be known as the International Emergency Food Reserve.
(Oct. 31, 1949, ch. 792, title I, §111, as added
Effective Date
Section effective Oct. 1, 1977, see section 1901 of
§1445g. Production of commodities for conversion into industrial hydrocarbons; terms and conditions; incentive payments; regulations; appropriations; effective date
Notwithstanding any other provision of this Act—
(a) The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the acreage set aside or diverted from the production of a commodity for any crop year under this subchapter to be devoted to the production of any commodity (other than the commodities for which acreage is being set aside or diverted) for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income.
(b)(1) During any year in which there is no set-aside or diversion of acreage under this subchapter, the Secretary may formulate and administer a program for the production, subject to such terms and conditions as the Secretary may prescribe, of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income. Under the program, producers of wheat, feed grains, upland cotton, and rice shall be paid incentive payments to devote a portion of their acreage to the production of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel.
(2) The payments under this subsection shall be at such rate or rates as the Secretary determines to be fair and reasonable, taking into consideration the participation necessary to ensure an adequate supply of the agricultural commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuels.
(3) The Secretary may issue such regulations as the Secretary deems necessary to carry out the provisions of this subsection.
(4) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection.
(5) The provisions of this subsection shall become effective October 1, 1978.
(Oct. 31, 1949, ch. 792, title I, §112, as added
References in Text
This Act, referred to in provision preceding subsec. (a), is act Oct. 31, 1949, ch. 792,
Inapplicability of Section
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 Referred to in Other Sections
This section is referred to in
§1445h. Repealed. Pub. L. 104–127, title I, §171(b)(2)(F), Apr. 4, 1996, 110 Stat. 938
Section, act Oct. 31, 1949, ch. 792, title I, §113, as added Dec. 3, 1980,
§1445i. Multiyear set-aside contracts for 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice
Notwithstanding any other provision of law:
(1) The Secretary of Agriculture may enter into multiyear set-aside contracts for a period not to extend beyond the 1990 crops. Such contracts may be entered into only as a part of the programs in effect for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, and only producers participating in one or more of such programs shall be eligible to contract with the Secretary under this section. Producers agreeing to a multiyear set-aside agreement shall be required to devote the set-aside acreage to vegetative cover capable of maintaining itself through such period to provide soil protection, water quality enhancement, wildlife production, and natural beauty. Grazing of livestock under this section shall be prohibited, except in areas of a major disaster, as determined by the President, if the Secretary finds there is a need for such grazing as a result of such disaster. Producers entering into agreements under this section shall also agree to comply with all applicable State and local laws and regulations governing noxious weed control.
(2) The Secretary shall provide cost-sharing incentives to farm operators for the establishment of vegetative cover, whenever a multiyear set-aside contract is entered into under this section.
(3) The Secretary may issue such regulations as the Secretary determines necessary to carry out this section.
(4) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under
§1445j. Deficiency and land diversion payments
(a) Deficiency payments
(1) In general
If the Secretary establishes an acreage limitation program for any of the 1991 through 1997 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for the commodity for the crop, the Secretary shall make advance deficiency payments available to producers for each of the crops.
(2) Terms and conditions
Advance deficiency payments under paragraph (1) shall be made to the producer under the following terms and conditions:
(A) Form
Such payments may be made available in the form of—
(i) cash;
(ii) commodities owned by the Commodity Credit Corporation and certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of the payments may be made in commodities or the certificates in the case of any producer; or
(iii) any combination of clauses (i) and (ii).
(B) Commodities and certificates
If payments are made available to producers as provided for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of—
(i) such commodities; or
(ii) such certificates.
(C) Maturity
Such a certificate shall be redeemable for a period not to exceed 3 years from the date the certificate is issued.
(D) Storage
The Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is redeemed.
(E) Timing
The payments shall be made available as soon as practicable after the producer enters into a contract with the Secretary to participate in such program.
(F) Amounts
The payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate participation in the program, except that the amount may not exceed an amount determined by multiplying—
(i) the estimated payment acreage for the crop; by
(ii) the farm program payment yield for the crop; by
(iii)(I) in the case of wheat and feed grains, not less than 40 percent, nor more than 50 percent, of the projected payment rate; and
(II) in the case of rice and upland cotton, not less than 30 percent, nor more than 50 percent, of the projected payment rate,
as determined by the Secretary.
(G) Repayment
If the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under this Act, is less than the amount paid to the producer as an advance deficiency payment for the crop under this subsection, the producer shall repay an amount equal to the difference between the amount advanced and the amount finally determined by the Secretary to be payable to the producer as a deficiency payment for the crop concerned.
(H) Repayment requirement
If the Secretary determines under this Act that deficiency payments will not be made available to producers on a crop with respect to which advance deficiency payments already have been made under this subsection, the producers who received the advance payments shall repay the payments.
(I) Deadline
Any repayment required under subparagraph (G) or (H) shall be due at the end of the marketing year for the crop with respect to which the payments were made.
(J) Noncompliance
If a producer fails to comply with requirements established under the acreage limitation program involved after obtaining an advance deficiency payment under this subsection, the producer shall repay immediately the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe by regulation.
(3) Regulations
The Secretary may issue such regulations as the Secretary determines necessary to carry out this section.
(4) Commodity Credit Corporation
The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(5) Additional authority
The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law.
(b), (c) Repealed. Pub. L. 104–127, title I, §171(b)(2)(G), Apr. 4, 1996, 110 Stat. 938
(Oct. 31, 1949, ch. 792, title I, §114, formerly §107C, as added
References in Text
This Act, referred to in subsec. (a)(1), (2)(G), (H), is act Oct. 31, 1949, ch. 792,
Codification
Section was classified to
Amendments
1996—Subsecs. (b), (c).
1993—Subsecs. (a)(1), (c).
1991—Subsec. (c).
Subsec. (c)(2).
Subsec. (c)(3), (4).
1990—
Subsec. (c).
1989—Subsec. (a)(2)(G).
1987—Subsec. (a)(1).
"(A) shall make advance deficiency payments available to producres [sic] who agree to participate in such program for the 1986 crop; and
"(B) may make such payments available to such producers for each of the 1987 through 1990 crops."
See Effective and Termination Dates of 1987 Amendment note below.
Subsec. (a)(2)(F)(iii).
1985—
Effective Date of 1990 Amendments
Amendment by
Amendment by
Effective and Termination Dates of 1989 Amendment
Section 1003(b)(1) of
Effective and Termination Dates of 1987 Amendment
Section 1110 of
Effective and Termination Dates of 1985 Amendment
That portion of section 1002 of
Effective and Termination Dates
Section 120 of
Calculation of Refunds of Advance Established Price Payments by Producers of 1988 or 1989 Crops of Feed Barley
Section 405 of
"(a)
"(1)
"(2)
"(A)
"(i) the formula used to perform the calculations described in paragraph (1);
"(ii) the aggregate results that the use of the calculation would have pursuant to subsection (b), in terms of—
"(I) the total reduction in the amount of refunds;
"(II) the number of producers affected; and
"(III) any other information the Secretary determines appropriate;
"(iii) a declaration of the Secretary's decision whether to use the calculation to recalculate barley producer's refunds pursuant to subsection (b); and
"(iv) a statement of the Secretary's reasons for the decision described in clause (iii).
"(B)
"(b)
"(1)
"(2)
"(i) shall, before May 31, 1991, reimburse the producer the amount of refund paid by the producer in excess of the refund determined in accordance with this section;
"(ii) shall have the option to make the reimbursement in a lump sum or in installments;
"(iii) shall, not later than 90 days after the date of enactment of this Act, notify producers who are eligible to receive the reimbursement of their 1988 or 1989 advance deficiency payment refund under this section—
"(I) of the timing of the payment of the reimbursement (either in lump sum or in installments);
"(II) that the amount of the reimbursement shall not bear interest if paid before February 15, 1991; and
"(III) that the amount of the reimbursement paid after February 15, 1991, shall bear interest at a rate of at least 7 percent per annum; and
"(iv) may elect to pay the reimbursement in a lump sum with generic certificates redeemable for commodities owned by the Commodity Credit Corporation if the reimbursement is paid in full not later than 60 days after the date of enactment of this Act."
Repayment Requirements
Section 1121(b) of
"(1)
"(A) shall not charge an annual interest rate for any delinquent refund for the advance deficiency payment in excess of prevailing rates for operating loans made by Farm Credit System institutions;
"(B) shall not withhold, in each of the 3 succeeding crop years, more than 1/3 of the farm program payments otherwise due to the producers, as a result of any delinquency in providing the refund; and
"(C) shall permit the producers to make the refund in three equal installments during each of the crop years 1990, 1991, and 1992, if the producers enter into an agreement to obtain multiperil crop insurance for each of the crop years, to the extent that the Secretary determines is similar to section 107 of the Disaster Assistance Act of 1989 (
"(2)
"(A) the producers received an advance deficiency payment for the 1988 or 1989 crop of a commodity under section 107C(a) of the Agricultural Act of 1949 (
"(B) the producers are required to provide a refund of at least $1,500 under subparagraph (G) or (H) of section 107C(a)(2) of such Act with respect to the advance deficiency payments;
"(C) the producers reside in a county, or in a county that is contiguous to a county, where the Secretary of Agriculture has found that farming, ranching, or aquaculture operations have been substantially affected as evidenced by a reduction in normal production for the county of at least 30 percent during two of the three crop years 1988, 1989, and 1990 by a natural disaster or by a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (
"(D) the total quantity of the 1988 or 1989 crop of the commodity that the producers were able to harvest is less than the result of multiplying 65 percent of the farm payment yield established by the Secretary for the crop by the sum of the acreage planted for the harvest and the acreage prevented from being planted (because of the disaster or emergency referred to in subparagraph (C)) for the crop."
Advance Deficiency Payments
Section Referred to in Other Sections
This section is referred to in
§1445k. Payments in commodities
(a) In-kind payments by Secretary
In making in-kind payments under any of the annual programs for wheat, feed grains, upland cotton, or rice (other than negotiable marketing certificates for upland cotton or rice), the Secretary may—
(1) acquire and use like commodities that have been pledged to the Commodity Credit Corporation as security for price support loans, including loans made to producers under
(2) use other like commodities owned by the Commodity Credit Corporation.
(b) Methods of payments
The Secretary may make in-kind payments—
(1) by delivery of the commodity to the producer at a warehouse or other similar facility, as determined by the Secretary;
(2) by the transfer of negotiable warehouse receipts;
(3) by the issuance of negotiable certificates which the Commodity Credit Corporation shall redeem for a commodity in accordance with regulations prescribed by the Secretary; or
(4) by such other methods as the Secretary determines appropriate to enable the producer to receive payments in an efficient, equitable, and expeditious manner so as to ensure that the producer receives the same total return as if the payments had been made in cash.
(c) Commodity certificates
The Secretary shall pay interest on the cash redemption of a commodity certificate issued by the Secretary to a producer who holds the certificate for at least 150 days. This subsection shall not apply with respect to commodity certificates issued in connection with the export enhancement program or the marketing promotion program established under the Agricultural Trade Act of 1978.
(Oct. 31, 1949, ch. 792, title I, §115, formerly §107E, as added
References in Text
The Agricultural Trade Act of 1978, referred to in subsec. (c), is
Codification
Section was classified to
Amendments
1990—Subsec. (c).
Effective Date of 1990 Amendment
Amendment by
Inapplicability of Section
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
Redemption of Commodity Certificates
Section 1122(b) of
"(1)
"(2)
"(3)
Section Referred to in Other Sections
This section is referred to in