CHAPTER 35 —AGRICULTURAL ADJUSTMENT ACT OF 1938
GENERAL PROVISIONS
SUBCHAPTER I—ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS, AND DISPOSITION OF SURPLUSES
SUBCHAPTER II—LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES
Part A—Definitions, Loans, Parity Payments, and Consumer Safeguards
Part B—Marketing Quotas
subpart i—marketing quotas—tobacco
subpart ii—acreage allotments—corn
subpart iii—marketing quotas—wheat
subpart iv—marketing quotas—cotton
subpart v—marketing quotas—rice
subpart vi—marketing quotas—peanuts
subpart vii—flexible marketing allotments for sugar
Part C—Administrative Provisions
subpart i—publication and review of quotas
subpart ii—adjustment of quotas and enforcement
Part D—Wheat Marketing Allocation
Part E—Rice Certificates
Part F—Miscellaneous Provisions and Appropriations
subpart i—miscellaneous
subpart ii—appropriations and administrative expenses
SUBCHAPTER III—COTTON POOL PARTICIPATION TRUST CERTIFICATES
GENERAL PROVISIONS
§1281. Short title
This chapter may be cited as the "Agricultural Adjustment Act of 1938".
(Feb. 16, 1938, ch. 30, §1,
Effective Date of 1985 Amendment
Short Title of 1999 Amendment
Short Title of 1990 Amendment
Short Title of 1986 Amendment
Short Title of 1985 Amendment
Short Title of 1982 Amendment
Short Title of 1981 Amendment
Short Title of 1977 Amendment
Short Title of 1973 Amendment
Short Title of 1970 Amendment
Short Title of 1964 Amendment
Short Title of 1963 Amendment
Short Title of 1962 Amendment
Short Title of 1958 Amendment
Short Title of 1956 Amendment
Act May 28, 1956, ch. 327, §1,
Short Title of 1948 Amendment
Act July 3, 1948, ch. 827,
Separability
§1282. Declaration of policy
It is declared to be the policy of Congress to continue the Soil Conservation and Domestic Allotment Act, as amended [
(Feb. 16, 1938, ch. 30, §2,
References in Text
The Soil Conservation and Domestic Allotment Act, as amended, referred to in text, is act Apr. 27, 1935, ch. 85,
Amendments
2004—
Effective Date of 2004 Amendment
Amendment by
Savings Provision
Amendment by sections 611 to 614 of
Transfer of Functions
Functions of Agricultural Adjustment Administration transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, §501, eff. July 16, 1946, 11 F.R. 7877,
Soil Conservation Service and Agricultural Adjustment Administration consolidated with other agencies into Agricultural Conservation and Adjustment Administration for duration of war, see Ex. Ord. No. 9069, Feb. 23, 1942, 7 F.R. 1409.
Functions of Soil Conservation Service in Department of Agriculture with respect to soil and moisture conservation operations conducted on lands under jurisdiction of Department of the Interior transferred to Department of the Interior, to be administered under direction and supervision of Secretary of the Interior through such agency or agencies in Department of the Interior as Secretary shall designate, by 1940 Reorg. Plan No. IV, §6, eff. June 30, 1940, set out in the Appendix to Title 5, Government Organization and Employees. See, also, sections 13 to 15 of said plan for provisions relating to transfer of functions of department heads, records, property, personnel, and funds.
Congressional Declaration of Policy Under Agricultural Act of 1961
"(a) afford farmers the opportunity to achieve parity of income with other economic groups by providing them with the means to develop and strengthen their bargaining power in the Nation's economy;
"(b) encourage a commodity-by-commodity approach in the solution of farm problems and provide the means for meeting varied and changing conditions peculiar to each commodity;
"(c) expand foreign trade in agricultural commodities with friendly nations, as defined in section 107 of Public Law 480, 83d Congress, as amended (
"(d) utilize more effectively our agricultural productive capacity to improve the diets of the Nation's needy persons;
"(e) recognize the importance of the family farm as an efficient unit of production and as an economic base for towns and cities in rural areas and encourage, promote, and strengthen this form of farm enterprise;
"(f) facilitate and improve credit services to farmers by revising, expanding, and clarifying the laws relating to agricultural credit;
"(g) assure consumers of a continuous, adequate, and stable supply of food and fiber at fair and reasonable prices;
"(h) reduce the cost of farm programs, by preventing the accumulation of surpluses; and
"(i) use surplus farm commodities on hand as fully as practicable as an incentive to reduce production as may be necessary to bring supplies on hand and firm demand in balance."
Congressional Declaration of Policy for Year 1949
Act July 3, 1948, ch. 827, title I, §1(d),
Study of Parity Income Position of Farmers; Report to Congress by June 30, 1966
Price Stabilization During Year 1950
Act July 3, 1948, ch. 827, title I, §1(a), (b),
Act July 3, 1948, ch. 827, title I, §2,
§1282a. Emergency supply of agricultural products
(a) Establishment of prices to insure orderly, adequate and steady supply of products
Notwithstanding any other provision of law, the Secretary of Agriculture shall assist farmers, processors, and distributors in obtaining such prices for agricultural products that an orderly, adequate and steady supply of such products will exist for the consumers of this nation.
(b) Adjustments in maximum price of products subject to any price control or freeze order or regulation to increase supply
The President shall make appropriate adjustments in the maximum price which may be charged under the provisions of Executive Order 11723 (dated June 13, 1973) or any subsequent Executive Order for any agricultural products (at any point in the distribution chain) as to which the Secretary of Agriculture certifies to the President that the supply of the product will be reduced to unacceptably low levels as a result of any price control or freeze order or regulation and that alternative means for increasing the supply are not available.
(c) "Agricultural products" defined
Under this section, the term "agricultural products" shall include meat, poultry, vegetables, fruits and all other agricultural commodities in raw or processed form, except forestry products or fish or fishery products.
(d) Implementation of policies to encourage full production in periods of short supply at fair and reasonable prices
The Secretary of Agriculture is directed to implement policies under this Act which are designed to encourage American farmers to produce to their full capabilities during periods of short supply to assure American consumers with an adequate supply of food and fiber at fair and reasonable prices.
(
References in Text
Executive Order 11723 (dated June 13, 1973), referred to in subsec. (b), was revoked by Ex. Ord. No. 11788, June 18, 1974, 39 F.R. 22113.
This Act, referred to in subsec. (d), is
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 Adjustment Act of 1938 which comprises this chapter.
SUBCHAPTER I—ADJUSTMENT IN FREIGHT RATES, NEW USES AND MARKETS, AND DISPOSITION OF SURPLUSES
§1291. Adjustments in freight rates
(a) Complaints by Secretary of Agriculture; notice of hearings
The Secretary of Agriculture is authorized to make complaint to the Surface Transportation Board with respect to rates, charges, tariffs, and practices relating to the transportation of farm products, and to prosecute the same before the Board. Before hearing or disposing of any complaint (filed by any person other than the Secretary) with respect to rates, charges, tariffs, and practices relating to the transportation of farm products, the Board shall cause the Secretary to be notified, and, upon application by the Secretary, shall permit the Secretary to appear and be heard.
(b) Secretary as party to proceedings
If such rate, charge, tariff, or practice complained of is one affecting the public interest, upon application by the Secretary, the Board shall make the Secretary a party to the proceeding. In such case the Secretary shall have the rights of a party before the Board and the rights of a party to invoke and pursue original and appellate judicial proceedings involving the Board's determination. The liability of the Secretary in any such case shall extend only to liability for court costs.
(c) Utilization of records, services, etc., of Department of Agriculture
For the purposes of this section, the Surface Transportation Board is authorized to avail itself of the cooperation, records, services, and facilities of the Department of Agriculture.
(d) Cooperation with complaining farm associations
The Secretary is authorized to cooperate with and assist cooperative associations of farmers making complaint to the Surface Transportation Board with respect to rates, charges, tariffs, and practices relating to the transportation of farm products.
(Feb. 16, 1938, ch. 30, title II, §201,
Amendments
1995—
Effective Date of 1995 Amendment
Amendment by
§1292. New uses and markets for commodities
(a) Regional research laboratories
The Secretary is authorized and directed to establish, equip, and maintain four regional research laboratories, one in each major farm producing area, and, at such laboratories, to conduct researches into and to develop new scientific, chemical, and technical uses and new and extended markets and outlets for farm commodities and products and byproducts thereof. Such research and development shall be devoted primarily to those farm commodities in which there are regular or seasonal surpluses, and their products and byproducts.
(b) Acquisition of land for laboratories; donations
For the purposes of subsection (a), the Secretary is authorized to acquire land and interests therein, and to accept in the name of the United States donations of any property, real or personal, to any laboratory established pursuant to this section, and to utilize voluntary or uncompensated services at such laboratories. Donations to any one of such laboratories shall not be available for use by any other of such laboratories.
(c) Cooperation with governmental agencies, associations, etc.
In carrying out the purposes of subsection (a), the Secretary is authorized and directed to cooperate with other departments or agencies of the Federal Government, States, State agricultural experiment stations, and other State agencies and institutions, counties, municipalities, business or other organizations, corporations, associations, universities, scientific societies, and individuals, upon such terms and conditions as he may prescribe.
(d) Appropriation for purposes of subsection (a)
To carry out the purposes of subsection (a), the Secretary is authorized to utilize in each fiscal year, beginning with the fiscal year beginning July 1, 1938, a sum not to exceed $4,000,000 of the funds appropriated pursuant to
(e) Repealed. Aug. 30, 1954, ch. 1076, §1(3), 68 Stat. 966
(f) Appropriation to Secretary of Commerce
There is allocated to the Secretary of Commerce for each fiscal year, beginning with the fiscal year beginning July 1, 1938, out of funds appropriated for such fiscal year pursuant to
(g) Duty of Secretary
It shall be the duty of the Secretary to use available funds to stimulate and widen the use of all farm commodities in the United States and to increase in every practical way the flow of such commodities and the products thereof into the markets of the world.
(Feb. 16, 1938, ch. 30, title II, §202,
Amendments
1954—Subsec. (e). Act Aug. 30, 1954, repealed subsec. (e) which required reports to Congress of the activities of, expenditures by, and donations to, the laboratories established pursuant to subsec. (a).
Wheat Research and Promotion Act
"[Section 1. Short Title]. That this Act shall be known as the 'Wheat Research and Promotion Act.'
"
§1293. Transferred
Codification
Section, act Feb. 16, 1938, ch. 30, title II, §204,
SUBCHAPTER II—LOANS, PARITY PAYMENTS, CONSUMER SAFEGUARDS, MARKETING QUOTAS, AND MARKETING CERTIFICATES
Part A—Definitions, Loans, Parity Payments, and Consumer Safeguards
§1301. Definitions
(a) General definitions
For the purposes of this subchapter and the declaration of policy—
(1)(A) The "parity price" for any agricultural commodity, as of any date, shall be determined by multiplying the adjusted base price of such commodity as of such date by the parity index as of such date.
(B) The "adjusted base price" of any agricultural commodity, as of any date, shall be (i) the average of the prices received by farmers for such commodity, at such times as the Secretary may select during each year of the ten-year period ending on the 31st of December last before such date, or during each marketing season beginning in such period if the Secretary determines use of a calendar year basis to be impracticable, divided by (ii) the ratio of the general level of prices received by farmers for agricultural commodities during such period to the general level of prices received by farmers for agricultural commodities during the period January 1910 to December 1914, inclusive. As used in this subparagraph, the term "prices" shall include wartime subsidy payments made to producers under programs designed to maintain maximum prices established under the Emergency Price Control Act of 1942.
(C) The "parity index", as of any date, shall be the ratio of (i) the general level of prices for articles and services that farmers buy, wages paid hired farm labor, interest on farm indebtedness secured by farm real estate, and taxes on farm real estate, for the calendar month ending last before such date to (ii) the general level of such prices, wages, rates, and taxes during the period January 1910 to December 1914, inclusive.
(D) The prices and indices provided for herein, and the data used in computing them, shall be determined by the Secretary, whose determination shall be final.
(E) Notwithstanding the provisions of subparagraph (A) of this paragraph, the transitional parity price for any agricultural commodity, computed as provided in this subparagraph, shall be used as the parity price for such commodity until such date after January 1, 1950, as such transitional parity price may be lower than the parity price, computed as provided in subparagraph (A) of this paragraph, for such commodity. The transitional parity price for any agricultural commodity as of any date shall be—
(i) its parity price determined in the manner used prior to the effective date of the Agricultural Act of 1948, less
(ii) 5 per centum of the parity price so determined multiplied by the number of full calendar years (not counting 1956 in the case of basic agricultural commodities) which, as of such date, have elapsed after January 1, 1949, in the case of non-basic agricultural commodities, and after January 1, 1955, in the case of the basic agricultural commodities.
(F) Notwithstanding the provisions of subparagraphs (A) and (E) of this paragraph, if the parity price for any agricultural commodity, computed as provided in subparagraphs (A) and (E) of this paragraph, appears to be seriously out of line with the parity prices of other agricultural commodities, the Secretary may, and upon the request of a substantial number of interested producers shall, hold public hearings to determine the proper relationship between the parity price of such commodity and the parity prices of other agricultural commodities. Within sixty days after commencing such hearing the Secretary shall complete such hearing, proclaim his findings as to whether the facts require a revision of the method of computing the parity price of such commodity, and put into effect any revision so found to be required.
(G) Notwithstanding the foregoing provisions of this section, the parity price for any basic agricultural commodity, as of any date during the six-year period beginning January 1, 1950, shall not be less than its parity price computed in the manner used prior to October 31, 1949.
(2) "Parity", as applied to income, shall be that gross income from agriculture which will provide the farm operator and his family with a standard of living equivalent to those afforded persons dependent upon other gainful occupation. "Parity" as applied to income from any agricultural commodity for any year, shall be that gross income which bears the same relationship to parity income from agriculture for such year as the average gross income from such commodity for the preceding ten calendar years bears to the average gross income from agriculture for such ten calendar years.
(3) The term "interstate and foreign commerce" means sale, marketing, trade, and traffic between any State or Territory or the District of Columbia or Puerto Rico, and any place outside thereof; or between points within the same State or Territory or within the District of Columbia or Puerto Rico, through any place outside thereof; or within any Territory or within the District of Columbia or Puerto Rico.
(4) The term "affect interstate and foreign commerce" means, among other things, in such commerce, or to burden or obstruct such commerce or the free and orderly flow thereof; or to create or tend to create a surplus of any agricultural commodity which burdens or obstructs such commerce or the free and orderly flow thereof.
(5) The term "United States" means the several States and Territories and the District of Columbia and Puerto Rico.
(6) The term "State" includes a Territory and the District of Columbia and Puerto Rico.
(7) The term "Secretary" means the Secretary of Agriculture, and the term "Department" means the Department of Agriculture.
(8) The term "person" means an individual, partnership, firm, joint-stock company, corporation, association, trust, estate, or any agency of a State.
(9) The term "corn" means field corn.
(b) Definitions applicable to one or more commodities
For the purposes of this subchapter—
(1)(A) "Actual production" as applied to any acreage of corn means the number of bushels of corn which the local committee determines would be harvested as grain from such acreage if all the corn on such acreage were so harvested. In case of a disagreement between the farmer and the local committee as to the actual production of the acreage of corn on the farm, or in case the local committee determines that such actual production is substantially below normal, the local committee, in accordance with regulations of the Secretary, shall weigh representative samples of ear corn taken from the acreage involved, make proper deductions for moisture content, and determine the actual production of such acreage on the basis of such samples.
(B) "Actual production" of any number of acres of cotton, rice or peanuts on a farm means the actual average yield for the farm times such number of acres.
(2) "Bushel" means in the case of ear corn that amount of ear corn, including not to exceed 15½ per centum of moisture content, which weighs seventy pounds, and in the case of shelled corn, means that amount of shelled corn including not to exceed 15½ per centum of moisture content, which weighs fifty-six pounds.
(3)(A) "Carry-over", in the case of corn, rice, and peanuts for any marketing year shall be the quantity of the commodity on hand in the United States at the beginning of such marketing year, not including any quantity which was produced in the United States during the calendar year then current.
(B) "Carry-over" of cotton for any marketing year shall be the quantity of cotton on hand in the United States at the beginning of such marketing year, not including any part of the crop which was produced in the United States during the calendar year then current.
(C) "Carry-over" of wheat, for any marketing year shall be the quantity of wheat on hand in the United States at the beginning of such marketing year, not including any wheat which was produced in the United States during the calendar year then current, and not including any wheat held by the Federal Crop Insurance Corporation under the Federal Crop Insurance Act [
(4)(A) "Commercial corn-producing area" shall include all counties in which the average production of corn (excluding corn used as silage) during the ten calendar years immediately preceding the calendar year for which such area is determined, after adjustment for abnormal weather conditions, is four hundred and fifty bushels or more per farm and four bushels or more for each acre of farm land in the county.
(B) Whenever prior to February 1 of any calendar year the Secretary has reason to believe that any county which is not included in the commercial corn-producing area determined pursuant to the provisions of subparagraph (A) of this subsection, but which borders upon one of the counties in such area, or that any minor civil division in a county bordering on such area, is producing (excluding corn used for silage) an average of at least four hundred and fifty bushels of corn per farm and an average of at least four bushels for each acre of farm land in the county or in the minor civil division, as the case may be, he shall cause immediate investigation to be made to determine such fact. If, upon the basis of such investigation, the Secretary finds that such county or minor civil division is likely to produce corn in such average amounts during such calendar year, he shall proclaim such determination and, commencing with such calendar year, such county shall be included in the commercial corn-producing area. In the case of a county included in the commercial corn-producing area pursuant to this subparagraph, whenever prior to February 1 of any calendar year the Secretary has reason to believe that facts justifying the inclusion of such county are not likely to exist in such calendar year, he shall cause an immediate investigation to be made with respect thereto. If, upon the basis of such investigation, the Secretary finds that such facts are not likely to exist in such calendar year, he shall proclaim such determination, and commencing with such calendar year, such county shall be excluded from the commercial corn-producing area.
(5) "Farm consumption" of corn means consumption by the farmer's family, employees, or household, or by his work stock; or consumption by poultry or livestock on his farm if such poultry or livestock, or the products thereof, are consumed or to be consumed by the farmer's family, employees, or household.
(6)(A) "Market", in the case of corn, cotton, rice, and wheat, means to dispose of, in raw or processed form, by voluntary or involuntary sale, barter, or exchange, or by gift inter vivos, and, in the case of corn and wheat, by feeding (in any form) to poultry or livestock which, or the products of which, are sold, bartered, or exchanged, or to be so disposed of, but does not include disposing of any such commodities as premium to the Federal Crop Insurance Corporation under the Federal Crop Insurance Act [
(B) "Marketed", "marketing", and "for market" shall have corresponding meanings to the term "market" in the connection in which they are used.
(C) "Market", in the case of peanuts, means to dispose of peanuts, including farmers' stock peanuts, shelled peanuts, cleaned peanuts, or peanuts in processed form, by voluntary or involuntary sale, barter, or exchange, or by gift inter vivos.
(7) "Marketing year" means, in the case of the following commodities, the period beginning on the first and ending with the second date specified below:
Corn, September 1–August 31;
Cotton, August 1–July 31;
Rice, August 1–July 31;
Tobacco (flue-cured), July 1–June 30;
Tobacco (other than flue-cured), October 1–September 30;
Wheat, June 1–May 31.
(8)(A) "National average yield" as applied to cotton or wheat shall be the national average yield per acre of the commodity during the ten calendar years in the case of wheat, and during the five calendar years in the case of cotton, preceding the year in which such national average yield is used in any computation authorized in this subchapter, adjusted for abnormal weather conditions and, in the case of wheat, but not in the case of cotton, for trends in yields.
(B) "Projected national yield" as applied to any crop of wheat shall be determined on the basis of the national yield per harvested acre of the commodity during each of the five calendar years immediately preceding the year in which such projected national yield is determined, adjusted for abnormal weather conditions affecting such yield, for trends in yields and for any significant changes in production practices.
(9) "Normal production" as applied to any number of acres of corn or rice means the normal yield for the farm times such number of acres. "Normal production" as applied to any number of acres of cotton or wheat means the projected farm yield times such number of acres.
(10)(A) "Normal supply" in the case of corn, rice, wheat, and peanuts for any marketing year shall be (i) the estimated domestic consumption of the commodity for the marketing year ending immediately prior to the marketing year for which normal supply is being determined, plus (ii) the estimated exports of the commodity for the marketing year for which normal supply is being determined, plus (iii) an allowance for carry-over. The allowance for carry-over shall be the following percentage of the sum of the consumption and exports used in computing normal supply: 15 per centum in the case of corn; 10 per centum in the case of rice; 20 per centum in the case of wheat; and 15 per centum in the case of peanuts. In determining normal supply the Secretary shall make such adjustments for current trends in consumption and for unusual conditions as he may deem necessary.
(B) The "normal supply" of cotton for any marketing year shall be the estimated domestic consumption of cotton for the marketing year for which such normal supply is being determined, plus the estimated exports of cotton for such marketing year, plus, 30 per centum of the sum of such consumption and exports as an allowance for carry-over.
(11)(A) "Normal year's domestic consumption", in the case of corn and wheat, shall be the yearly average quantity of the commodity, wherever produced, that was cosumed 1 in the United States during the ten marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(B) "Normal year's domestic consumption", in the case of cotton, shall be the yearly average quantity of the commodity produced in the United States that was consumed in the United States during the ten marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(C) "Normal year's domestic consumption", in the case of rice, shall be the yearly average quantity of rice produced in the United States that was consumed in the United States during the five marketing years immediately preceding the marketing year in which such consumption is determined, adjusted for current trends in such consumption.
(12) "Normal year's exports" in the case of corn, cotton, rice, and wheat shall be the yearly average quantity of the commodity produced in the United States that was exported from the United States during the ten marketing years (or, in the case of rice, the five marketing years) immediately preceding the marketing year in which such exports are determined, adjusted for current trends in such exports.
(13)(A) Repealed.
(B) "Normal yield" for any county, in the case of peanuts, shall be the average yield per acre of peanuts for the county, adjusted for abnormal weather conditions, during the five calendar years immediately preceding the year in which such normal yield is determined. For 1942, the normal yield for any county, in the case of peanuts, shall be the average yield per acre for peanuts for the county, adjusted for abnormal conditions, during the years 1936–1940, inclusive, except that for any county in which the years 1935–1939, inclusive, are equally as representative, such period may be used in determining the normal yields for counties in the State.
(C) In applying subparagraph (A) or (B) of this paragraph, if for any such year the data are not available, or there is no actual yield, an appraised yield for such year, determined in accordance with regulations issued by the Secretary, shall be used as the actual yield for such year. In applying such subparagraphs, if, on account of drought, flood, insect pests, plant disease, or other uncontrollable natural cause, the yield in any year of such ten-year period or five-year period, as the case may be, is less than 75 per centum of the average (computed without regard to such year) such year shall be eliminated in calculating the normal yield per acre.
(D) "Normal yield" for any county, in the case of rice and wheat, shall be the average yield per acre of rice or wheat, as the case may be, for the county during the five calendar years immediately preceding the year for which such normal yield is determined in the case of rice, or during the five years immediately preceding the year in which such normal yield is determined in the case of wheat, adjusted for abnormal weather conditions and for trends in yields. If for any such year data are not available, or there is no actual yield, an appraised yield for such year, determined in accordance with regulations issued by the Secretary, taking into consideration the yields obtained in surrounding counties during such year and the yield in years for which data are available, shall be used as the actual yield for such year.
(E) "Normal yield" for any farm, in the case of rice and wheat, shall be the average yield per acre of rice or wheat, as the case may be, for the farm during the five calendar years immediately preceding the year for which such normal yield is determined in the case of rice, or during the five years immediately preceding the year in which such normal yield is determined in the case of wheat, adjusted for abnormal weather conditions and for trends in yields. If for any such year the data are not available or there is no actual yield, then the normal yield for the farm shall be appraised in accordance with regulations issued by the Secretary, taking into consideration abnormal weather conditions, trends in yields, the normal yield for the county, the yields obtained on adjacent farms during such year and the yield in years for which data are available.
(F) In applying subparagraphs (D) and (E) of this paragraph, if on account of drought, flood, insect pests, plant disease, or other uncontrollable natural cause, the yield for any year of such five-year period is less than 75 per centum of the average, 75 per centum of such average shall be substituted therefor in calculating the normal yield per acre. If, on account of abnormally favorable weather conditions, the yield for any year of such five-year period is in excess of 125 per centum of the average, 125 per centum of such average shall be substituted therefor in calculating the normal yield per acre.
(G) "Normal yield" for any farm, in the case of corn or peanuts, shall be the average yield per acre of corn or peanuts, as the case may be, for the farm, adjusted for abnormal weather conditions, during the five calendar years immediately preceding the year in which such normal yield is determined. For 1942, the normal yield for any farm, in the case of peanuts, shall be the average yield per acre of peanuts for the farm, adjusted for abnormal conditions, during the years 1936–1940, inclusive, except that for any county in which the years 1935–1939, inclusive, are equally as representative, such period may be used in determining normal yields for farms in the county. If for any such year the data are not available or there is no actual yield, then the normal yield for the farm shall be appraised in accordance with regulations of the Secretary, taking into consideration abnormal weather conditions, the normal yield for the county, and the yield in years for which data are available.
(H) "Normal yield" for any county, for any crop of cotton, shall be the average yield per acre of cotton for the county, adjusted for abnormal weather conditions and any significant changes in production practices during the five calendar years immediately preceding the year in which the national marketing quota for such crop is proclaimed. If for any such year the data are not available, or there is no actual yield, an appraised yield for such year, determined in accordance with regulations issued by the Secretary, shall be used as the actual yield for such year.
(I) "Normal yield" for any farm, for any crop of cotton, shall be the average yield per acre of cotton for the farm, adjusted for abnormal weather conditions and any significant changes in production practices during the three calendar years immediately preceding the year in which such normal yield is determined. If for any such year the data are not available, or there is no actual yield, then the normal yield for the farm shall be appraised in accordance with regulations of the Secretary, taking into consideration abnormal weather conditions, the normal yield for the county, changes in production practices, and the yield in years for which data are available.
(J) "Projected county yield" for any crop of wheat shall be determined on the basis of the yield per harvested acre of such commodity in the county during each of the five calendar years immediately preceding the year in which such projected county yield is determined, adjusted for abnormal weather conditions affecting such yield, for trends in yields and for any significant changes in production practices.
(K) "Projected farm yield" for any crop of wheat shall be determined on the basis of the yield per harvested acre of such commodity on the farm during each of the three calendar years immediately preceding the year in which such projected farm yield is determined, adjusted for abnormal weather conditions affecting such yield, for trends in yields and for any significant changes in production practices, but in no event shall such projected farm yield be less than the normal yield for such farm as provided in subparagraph (E) of this paragraph.
(L) "Projected national, State, and county yields" for any crop of cotton shall be determined on the basis of the yield per harvested acre of such crop in the United States, the State and the county, respectively, during each of the five calendar years immediately preceding the year in which such projected yield for the United States, the State, and the county, respectively, is determined, adjusted for abnormal weather conditions affecting such yield, for trends in yields, and for any significant changes in production practices.
(M) "Projected farm yield" for any crop of cotton shall be determined on the basis of the yield per harvested acre of such crop on the farm during each of the three calendar years immediately preceding the year in which such projected farm yield is determined, adjusted for abnormal weather conditions affecting such yield, for trends in yields, and for any significant changes in production practices, but in no event shall such projected farm yield be less than the normal yield for such farm as provided in subparagraph (I) of this paragraph.
(14) "Reserve supply level", in the case of corn, shall be a normal year's domestic consumption and exports of corn plus 10 per centum of a normal year's domestic consumption and exports, to insure a supply adequate to meet domestic consumption and export needs in years of drought, flood, or other adverse conditions, as well as in years of plenty.
(15)(A) "Total supply" of wheat, corn, rice, and peanuts for any marketing year shall be the carry-over of the commodity for such marketing year, plus the estimated production of the commodity in the United States during the calendar year in which such marketing year begins and the estimated imports of the commodity into the United States during such marketing year.
(B) "Total supply" of cotton for any marketing year shall be the carry-over at the beginning of such marketing year, plus the estimated production of cotton in the United States during the calendar year in which such marketing year begins and the estimated imports of cotton into the United States during such marketing year.
(c) Use of Federal statistics
The latest available statistics of the Federal Government shall be used by the Secretary in making the determinations required to be made by the Secretary under this chapter.
(d) Exclusion of stocks of certain commodities
In making any determination under this chapter or under the Agricultural Act of 1949 [
(Feb. 16, 1938, ch. 30, title III, §301,
References in Text
The Emergency Price Control Act of 1942, referred to in subsec. (a)(1)(B), was act Jan. 30, 1942, ch. 26,
For effective date of the Agricultural Act of 1948, referred to in subsec. (a)(1)(E)(i), see Effective Date of 1948 Amendment note set out under
The Federal Crop Insurance Act, referred to in subsec. (b)(3)(C), (6)(A), is subtitle A of title V of act Feb. 16, 1938, ch. 30,
The Agricultural Act of 1949, referred to in subsec. (d), is act Oct. 31, 1949, ch. 792,
The Strategic and Critical Materials Stock Piling Act, referred to in subsec. (d), is act June 7, 1939, ch. 190, as revised generally by
Amendments
2004—Subsec. (b)(3)(C), (D).
Subsec. (b)(6)(A).
Subsec. (b)(10)(B), (C).
Subsec. (b)(11)(B).
Subsec. (b)(12).
Subsec. (b)(14).
Subsec. (b)(15).
Subsec. (b)(16).
Subsec. (b)(16)(B), (C).
Subsec. (b)(17).
2002—Subsec. (b)(14)(C).
1986—Subsec. (b)(14)(C), (D).
Subsec. (b)(17).
1985—Subsec. (b)(7).
1982—Subsec. (b)(15).
1975—Subsec. (b)(7).
1973—Subsec. (b)(13)(K). Pub. L, 91–524, §405(b), as added by
1965—Subsec. (b)(8).
Subsec. (b)(9).
Subsec. (b)(13).
1964—Subsec. (b)(13).
1962—Subsec. (b)(13).
1957—Subsec. (b)(15).
1956—Subsec. (a)(1)(E). Act May 28, 1956, §602, inserted "(not counting 1956 in the case of basic agricultural commodities)" after "full calendar years".
Subsec. (b)(13). Act May 28, 1956, §502, limited determination of normal yield provided for in subpar. (D) only to counties and authorized adjustments for abnormal weather conditions and for trends in yields, added subpars. (E) and (F), and redesignated subpar. (E) as (G).
1954—Subsec. (a)(1)(E). Act Aug. 28, 1954, §301, changed definition of "transitional parity price" as applied to basic agricultural commodities so as to make it "old parity" less 5 per centum for each full year elapsed since Jan. 1, 1955, instead of Jan. 1, 1949.
Subsec. (b). Act Aug. 28, 1954, §302, increased carryover allowance from 10 per centum to 15 per centum in case of corn and from 15 per centum to 20 per centum in case of wheat in subpar. (10)(A), and provided for computing county and farm "normal yields" on the basis of 5-year yields instead of 10-year yields in case of corn in subpars. (13)(A) and (13)(E).
1953—Subsec. (d). Act July 14, 1953, added subsec. (d).
1952—Subsec. (a)(1)(G). Act July 17, 1952, extended dual parity provisions for two years.
Subsec. (b)(3)(C), (16)(B). Act July 8, 1952, provided for computation of carry-over as of Jan. 1st, following the beginning of the marketing year instead of Oct. 1st the beginning of the marketing year.
1949—Subsec. (a)(1)(B). Act Oct. 31, 1949, §409(a), inserted last sentence.
Subsec. (a)(1)(C). Act Oct. 31, 1949, §409(b), inserted ", wages paid hired farm labor" after "buy" and ", wages" after "such prices".
Subsec. (a)(1)(G). Act Oct. 31, 1949, §409(c), added subpar. (G).
Subsec. (b)(1)(B). Act Oct. 31, 1949, §418(b), included the actual production of rice.
Subsec. (b)(3)(B). Act Oct. 31, 1949, §415(e), repealed amendatory provisions of act July 3, 1948, ch. 827, title II, §201(c),
Act Aug. 29, 1949, §2(a)(1), changed definition of "carry-over" of cotton by excluding United States cotton on hand outside the United States.
Subsec. (b)(9). Act Oct. 31, 1949, §418(c), included normal production of rice.
Subsec. (b)(10(A). Act Oct. 31, 1949, §409(d), increased from 7 per centum to 10 per centum the carryover allowance for corn.
Act Aug. 29, 1949, §2(a)(2), made provision inapplicable to cotton.
Subsec. (b)(10)(C). Act Aug. 29, 1949, §2(a)(2), added subpar. (C) which was also reenacted by act Oct. 31, 1949, §415(c).
Subsec. (b)(16)(A). Act Oct. 31, 1949, §415(d), struck out "cotton," after "corn,".
Act Aug. 29, 1949, §2(a)(3), made provision inapplicable to cotton.
Subsec. (b)(16)(C). Act Aug. 29, 1949, §2(a)(3), added subpar. (C) which was also reenacted by act Oct. 31, 1949, §415(d).
1948—Subsec. (a). Act July 3, 1948, §201(a), struck out paragraphs (1) and (2) and inserted new paragraphs (1) and (2) to change the method of computing parity prices to give recognition to changes in relationships among the prices of agricultural commodities themselves which have occurred since the base period 1910 to 1914, and redefined "parity".
Subsec. (b)(3)(A). Act July 3, 1948, §201(b), redefined "carry-over" in the case of corn, rice, and peanuts.
Subsec. (b)(3)(B). Act July 3, 1948, §201(c), redefined "carry-over" in the case of cotton.
Subsec. (b)(10). Act July 3, 1948, §201(d), redefined "normal supply".
Subsec. (b)(16). Act July 3, 1948, §201(e), redefined "total supply".
1942—Subsec. (b)(13)(B). Act July 9, 1942, §1(4), inserted "or peanuts" after "cotton" wherever appearing, and added a new sentence reading "For 1942, the normal yield for any county, in the case of peanuts, shall be the average yield per acre for peanuts for the county, adjusted for abnormal conditions, during the years 1936–1940, inclusive, except that for any county in which the years 1935–1939, inclusive, are equally as representative, such period may be used in determining the normal yields for counties in the State".
Subsec. (b)(13)(E). Act July 9, 1942, §1(5), struck out "or" after "wheat" and before "cotton" wherever appearing, inserted "or peanuts" after "cotton" wherever appearing, and inserted after first sentence "For 1942, the normal yield for any farm, in the case of peanuts, shall be the average yield per acre of peanuts for the farm, adjusted for abnormal conditions, during the years 1936–1940, inclusive, except that for any county in which the years 1935–1939, inclusive, are equally as representative, such period may be used in determining normal yields for farms in the county".
1941—Subsec. (b)(1)(B). Act April 3, 1941, §2, inserted "or peanuts" after "cotton".
Subsec. (b)(6)(C). Act Apr. 3, 1941, §3, added subpar. (C).
1940—Subsec. (a)(1). Act Nov. 22, 1940, §3, inserted "and, in the case of Burley and flue-cured tobacco, shall be the period August 1934 to July 1939; except that the August 1919–July 1929 base period shall be used in allocating any funds appropriated prior to September 1, 1940" after "July, 1929" in last sentence.
Subsec. (b)(3)(C). Act June 13, 1940, inserted exception.
Former subsec. (b)(6)(C), (D) were omitted in amendment to subsec. (b)(6) by act July 2, 1940.
Subsec. (b)(13)(A). Act July 2, 1940, §4, among other changes inserted "or wheat" after "corn" wherever appearing and substituted "county" for "farm" wherever appearing.
Subsec. (b)(13)(B). Act July 2, 1940, §5, among other changes, struck out "wheat or" before "cotton" and "and, in the case of wheat but not in the case of cotton, for trends in yields, during the ten calendar years in the case of wheat, and" after "weather conditions".
Subsec. (b)(13)(E). Act Nov. 25, 1940, in first sentence substituted "in which such normal yield is determined" for "with respect to such normal yield is used in any computation authorized under this title".
Subsec. (b)(15). Act Nov. 22, 1940, §§1, 4, among other changes substituted "Fire-cured tobacco comprising types 21, 22, 23, and 24; Dark air-cured tobacco comprising types 35 and 36" for "Fire-cured and dark air cured tobacco comprising types 21, 22, 23, 24, 35, 36, and 37" and inserted proviso at end of last sentence.
1938—Subsec. (b)(13). Act Apr. 7, 1938, substituted "county" for "farm" in subpars. (A) and (B) and added subpar. (E).
Effective Date of 2004 Amendment
Amendment by
Effective Date of 1975 Amendment
Effective and Termination Dates of 1973 Amendment
Effective Date of 1965 Amendment
Effective Date of 1962 Amendment
Effective Date of 1949 Amendment
Act Oct. 31, 1949, ch. 792, title IV, §415(a), (b),
"(a) Except as modified by this Act or by Public Law 272 [see Tables for classification], Eighty-first Congress, sections 201(b), 201(d), 201(e), 203, 207(a), and 208 of the Agricultural Act of 1948 [amending this section and
"(b) No provision of the Agricultural Act of 1948 shall be deemed to supersede any provision of Public Law 272, Eighty-first Congress."
Effective Date of 1948 Amendment
Act July 3, 1948, ch. 827, title III, §303,
Savings Provision
Amendment by sections 611 to 614 of
Transfer of Functions
Functions of all officers, agencies, and employees of Department of Agriculture transferred, with certain exceptions, to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219,
Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, §501, eff. July 16, 1946, 11 F.R. 7877,
Functions of Bureau of Agricultural Economics transferred to other units of Department of Agriculture under Secretary's memorandum 1320, supp. 4, of Nov. 2, 1953.
Rulemaking Procedures
Study of Methods of Improving Parity Formula
Act May 28, 1956, ch. 327, title VI, §602,
1 So in original. Probably should be "consumed".
§1301a. References to parity prices, etc., in other laws after January 1, 1950
All references in other laws to—
(1) parity,
(2) parity prices,
(3) prices comparable to parity prices, or
(4) prices to be determined in the same manner as provided by the Agricultural Adjustment Act of 1938 [
with respect to prices for agricultural commodities and products thereof, shall hereafter be deemed to refer to parity prices as determined in accordance with the provisions of section 301(a)(1) of the Agricultural Adjustment Act of 1938 [
(July 3, 1948, ch. 827, title III, §302(f),
References in Text
The Agricultural Adjustment Act of 1938, referred to in par. (4), is act Feb. 16, 1938, ch. 30,
This Act, referred to in par. (4) and concluding provisions, is act July 3, 1948, ch. 827,
Codification
Section was enacted as part of the Agricultural Act of 1948, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Effective Date
Section effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as an Effective Date of 1948 Amendment note under
§1301b. Repealed. Pub. L. 85–835, title I, §108, Aug. 28, 1958, 72 Stat. 993
Section, act Aug. 29, 1949, ch. 518, §3(a),
Effective Date of Repeal
§1302. Repealed. Oct. 31, 1949, ch. 792, title IV, §414, 63 Stat. 1057
Section, acts Feb. 16, 1938, ch. 30, title III, §302,
§1303. Parity payments
If and when appropriations are made therefor, the Secretary is authorized and directed to make payments to producers of corn, wheat, cotton, or rice, on their normal production of such commodities in amounts which, together with the proceeds thereof, will provide a return to such producers which is as nearly equal to parity price as the funds so made available will permit. All funds available for such payments with respect to these commodities shall unless otherwise provided by law, be apportioned to these commodities in proportion to the amount by which each fails to reach the parity income. Such payments shall be in addition to and not in substitution for any other payments authorized by law.
(Feb. 16, 1938, ch. 30, title III, §303,
Amendments
2004—
Effective Date of 2004 Amendment
Amendment by
Savings Provision
Amendment by sections 611 to 614 of
§1304. Consumer safeguards
The powers conferred under this chapter shall not be used to discourage the production of supplies of foods and fibers sufficient to maintain normal domestic human consumption as determined by the Secretary from the records of domestic human consumption in the years 1920 to 1929, inclusive, taking into consideration increased population quantities of any commodity that were forced into domestic consumption by decline in exports during such period, current trends in domestic consumption and exports of particular commodities, and the quantities of substitutes available for domestic consumption within any general class of food commodities. In carrying out the purposes of this chapter it shall be the duty of the Secretary to give due regard to the maintenance of a continuous and stable supply of agricultural commodities from domestic production adequate to meet consumer demand at prices fair to both producers and consumers.
(Feb. 16, 1938, ch. 30, title III, §304,
§1305. Transfer of acreage allotments or feed grain bases on public lands upon request of State agencies
Notwithstanding any other provision of law, the Secretary, upon the request of any agency of any State charged with the administration of the public lands of the State, may permit the transfer of acreage allotments or feed grain bases together with relevant production histories which have been determined pursuant to the Agricultural Adjustment Act of 1938, as amended [
(
References in Text
The Agricultural Adjustment Act of 1938, referred to in text, is act Feb. 16, 1938, ch. 30,
Codification
Section was enacted as part of the Food and Agriculture Act of 1965, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
1973—
1970—
Effective Date of 1973 Amendment
Effective and Termination Dates of 1970 Amendment
§1306. Projected yields; determination; base period
Notwithstanding any other provision of law, in the determination of farm yields the Secretary may use projected yields in lieu of normal yields. In the determination of such yields the Secretary shall take into account the actual yield proved by the producer for the base period used in determining the projected yield, and the projected yield shall not be less than such actual yield proved by the producer.
(
Codification
Section was enacted as part of the Food and Agriculture Act of 1965, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
1973—
Effective and Termination Dates of 1973 Amendment
§1307. Limitation on payments under wheat, feed grains, and cotton programs for 1974 through 1977 crops
Notwithstanding any other provision of law—
(1) The total amount of payments which a person shall be entitled to receive under one or more of the annual programs established by titles IV, V, and VI of this Act for the 1974 through 1976 crops of the commodities and by titles IV and V of the Food and Agriculture Act of 1977 and titles IV, V, and VI of this Act for the 1977 crop of the commodities shall not exceed $20,000.
(2) The term "payments" as used in this section shall not include loans or purchases, or any part of any payment which is determined by the Secretary to represent compensation for resource adjustment or public access for recreation.
(3) If the Secretary determines that the total amount of payments which will be earned by any person under the program in effect for any crop will be reduced under this section, the set-aside acreage for the farm or farms on which such person will be sharing in payments earned under such program shall be reduced to such extent and in such manner as the Secretary determines will be fair and reasonable in relation to the amount of the payment reduction.
(4) The Secretary shall issue regulations defining the term "person" and prescribing such rules as he determines necessary to assure a fair and reasonable application of such limitation: Provided, That the provisions of this Act which limit payments to any person shall not be applicable to lands owned by States, political subdivisions, or agencies thereof, so long as such lands are farmed primarily in the direct furtherance of a public function, as determined by the Secretary. The rules for determining whether corporations and their stockholders may be considered as separate persons shall be in accordance with the regulations issued by the Secretary on December 18, 1970.
(
References in Text
This Act, referred to in pars. (1) and (4), is
The Food and Agriculture Act of 1977, referred to in par. (1), is
Codification
Section was enacted as part of the Agricultural Act of 1970, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
1977—Par. (1).
1973—Par. (1).
Par. (2).
Par. (3).
Par. (4).
Effective Date of 1977 Amendment
Exemption of Disaster Payment Limitations Respecting 1977 Crops of Wheat, Feed Grains, Upland Cotton, and Rice
§1308. Payment limitations
(a) Definitions
In this section through
(1) Covered commodity
The term "covered commodity" has the meaning given that term in section 1111 of the Agricultural Act of 2014 (
(2) Family member
The term "family member" means a person to whom a member in the farming operation is related as lineal ancestor, lineal descendant, sibling, first cousin, niece, nephew, spouse, or otherwise by marriage.
(3) Legal entity
The term "legal entity" means an entity that is created under Federal or State law and that—
(A) owns land or an agricultural commodity; or
(B) produces an agricultural commodity.
(4) Person
The term "person" means a natural person, and does not include a legal entity.
(5) Secretary
The term "Secretary" means the Secretary of Agriculture.
(b) Limitation on payments for covered commodities (other than peanuts)
The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (
(c) Limitation on payments for peanuts
The total amount of payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) for any crop year under sections 1116 and 1117 of the Agricultural Act of 2014 (
(d) Limitation on applicability
Nothing in this section authorizes any limitation on any benefit associated with the forfeiture of a commodity pledged as collateral for a loan made available under subtitle B of title I of the Agricultural Act of 2014 [
(e) Attribution of payments
(1) In general
In implementing subsections (b) and (c) and a program described in paragraphs (1)(C) and (2)(B) of section 1308–3a(b) 1 of this title, the Secretary shall issue such regulations as are necessary to ensure that the total amount of payments are attributed to a person by taking into account the direct and indirect ownership interests of the person in a legal entity that is eligible to receive the payments.
(2) Payments to a person
Each payment made directly to a person shall be combined with the pro rata interest of the person in payments received by a legal entity in which the person has a direct or indirect ownership interest unless the payments of the legal entity have been reduced by the pro rata share of the person.
(3) Payments to a legal entity
(A) In general
Each payment made to a legal entity shall be attributed to those persons who have a direct or indirect ownership interest in the legal entity unless the payment to the legal entity has been reduced by the pro rata share of the person.
(B) Attribution of payments
(i) Payment limits
Except as provided in clause (ii), payments made to a legal entity shall not exceed the amounts specified in subsections (b) and (c).
(ii) Exception for joint ventures and general partnerships
Payments made to a joint venture or a general partnership shall not exceed, for each payment specified in subsections (b) and (c), the amount determined by multiplying the maximum payment amount specified in subsections (b) and (c) by the number of persons and legal entities (other than joint ventures and general partnerships) that comprise the ownership of the joint venture or general partnership.
(iii) Reduction
Payments made to a legal entity shall be reduced proportionately by an amount that represents the direct or indirect ownership in the legal entity by any person or legal entity that has otherwise exceeded the applicable maximum payment limitation.
(4) 4 levels of attribution for embedded legal entities
(A) In general
Attribution of payments made to legal entities shall be traced through 4 levels of ownership in legal entities.
(B) First level
Any payments made to a legal entity (a first-tier legal entity) that is owned in whole or in part by a person shall be attributed to the person in an amount that represents the direct ownership in the first-tier legal entity by the person.
(C) Second level
(i) In general
Any payments made to a first-tier legal entity that is owned (in whole or in part) by another legal entity (a second-tier legal entity) shall be attributed to the second-tier legal entity in proportion to the ownership of the second-tier legal entity in the first-tier legal entity.
(ii) Ownership by a person
If the second-tier legal entity is owned (in whole or in part) by a person, the amount of the payment made to the first-tier legal entity shall be attributed to the person in the amount that represents the indirect ownership in the first-tier legal entity by the person.
(D) Third and fourth levels
(i) In general
Except as provided in clause (ii), the Secretary shall attribute payments at the third and fourth tiers of ownership in the same manner as specified in subparagraph (C).
(ii) Fourth-tier ownership
If the fourth-tier of ownership is that of a fourth-tier legal entity and not that of a person, the Secretary shall reduce the amount of the payment to be made to the first-tier legal entity in the amount that represents the indirect ownership in the first-tier legal entity by the fourth-tier legal entity.
(f) Special rules
(1) Minor children
(A) In general
Except as provided in subparagraph (B), payments received by a child under the age of 18 shall be attributed to the parents of the child.
(B) Regulations
The Secretary shall issue regulations specifying the conditions under which payments received by a child under the age of 18 will not be attributed to the parents of the child.
(2) Marketing cooperatives
Subsections (b) and (c) shall not apply to a cooperative association of producers with respect to commodities produced by the members of the association that are marketed by the association on behalf of the members of the association but shall apply to the producers as persons.
(3) Trusts and estates
(A) In general
With respect to irrevocable trusts and estates, the Secretary shall administer this section through
(B) Irrevocable trust
(i) In general
In order for a trust to be considered an irrevocable trust, the terms of the trust agreement shall not—
(I) allow for modification or termination of the trust by the grantor;
(II) allow for the grantor to have any future, contingent, or remainder interest in the corpus of the trust; or
(III) except as provided in clause (ii), provide for the transfer of the corpus of the trust to the remainder beneficiary in less than 20 years beginning on the date the trust is established.
(ii) Exception
Clause (i)(III) shall not apply in a case in which the transfer is—
(I) contingent on the remainder beneficiary achieving at least the age of majority; or
(II) contingent on the death of the grantor or income beneficiary.
(C) Revocable trust
For the purposes of this section through
(4) Cash rent tenants
(A) Definition
In this paragraph, the term "cash rent tenant" means a person or legal entity that rents land—
(i) for cash; or
(ii) for a crop share guaranteed as to the amount of the commodity to be paid in rent.
(B) Restriction
A cash rent tenant who makes a significant contribution of active personal management, but not of personal labor, with respect to a farming operation shall be eligible to receive a payment described in subsection (b) or (c) only if the tenant makes a significant contribution of equipment to the farming operation.
(5) Federal agencies
(A) In general
Notwithstanding subsection (d), a Federal agency shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [
(B) Land rental
A lessee of land owned by a Federal agency may receive a payment described in subsection (b), (c), or (d) if the lessee otherwise meets all applicable criteria.
(6) State and local governments
(A) In general
Notwithstanding subsection (d), except as provided in subsection (g), a State or local government, or political subdivision or agency of the government, shall not be eligible to receive any payment, benefit, or loan under title I of the Food, Conservation, and Energy Act of 2008 [
(B) Tenants
A lessee of land owned by a State or local government, or political subdivision or agency of the government, may receive payments described in subsections (b), (c), and (d) if the lessee otherwise meets all applicable criteria.
(7) Changes in farming operations
(A) In general
In the administration of this section through
(B) Family members
The addition of a family member to a farming operation under the criteria set out in
(8) Death of owner
(A) In general
If any ownership interest in land or a commodity is transferred as the result of the death of a program participant, the new owner of the land or commodity may, if the person is otherwise eligible to participate in the applicable program, succeed to the contract of the prior owner and receive payments subject to this section without regard to the amount of payments received by the new owner.
(B) Limitations on prior owner
Payments made under this paragraph shall not exceed the amount to which the previous owner was entitled to receive under the terms of the contract at the time of the death of the prior owner.
(9) Administration of reduction
The Secretary shall apply any order described in section 1614(d)(1) of the Agricultural Act of 2014 (
(g) Public schools
(1) In general
Notwithstanding subsection (f)(6)(A), a State or local government, or political subdivision or agency of the government, shall be eligible, subject to the limitation in paragraph (2), to receive a payment described in subsection (b) or (c) for land owned by the State or local government, or political subdivision or agency of the government, that is used to maintain a public school.
(2) Limitation
(A) In general
For each State, the total amount of payments described in subsections (b) and (c) that are received collectively by the State and local government and all political subdivisions or agencies of those governments shall not exceed $500,000.
(B) Exception
The limitation in subparagraph (A) shall not apply to States with a population of less than 1,500,000.
(h) Time limits; reliance
Regulations of the Secretary shall establish time limits for the various steps involved with notice, hearing, decision, and the appeals procedure in order to ensure expeditious handling and settlement of payment limitation disputes. Notwithstanding any other provision of law, actions taken by an individual or other entity in good faith on action or advice of an authorized representative of the Secretary may be accepted as meeting the requirement under this section or
(
References in Text
The Agricultural Act of 2014, referred to in subsecs. (d) and (f)(5)(A), (6)(A), is
Pars. (1) and (2) of
The Food, Conservation, and Energy Act of 2008, referred to in subsec. (f)(5)(A), (6)(A), is
Title XII of this Act, referred to in subsec. (f)(5)(A), (6)(A), means title XII of the Food Security Act of 1985,
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Prior Provisions
A prior section 1308,
Another prior section 1308,
Amendments
2018—Subsec. (a)(1).
Subsec. (a)(2).
Subsecs. (b), (c).
Subsec. (f)(9).
2014—Subsecs. (b), (c).
Subsec. (d).
Subsec. (f)(5)(A).
Subsec. (f)(6)(A).
2008—Subsec. (a).
Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3) to (5).
Subsecs. (b) to (d).
Subsecs. (e) to (h).
2002—
Subsec. (a) to (d).
Subsec. (e).
Subsec. (f).
Subsec. (g).
1996—Pars. (1) to (4).
1993—Pars. (1)(A), (B), (2)(A).
1991—Par. (2)(B)(iv).
1990—Par. (1).
Par. (2)(A).
Par. (2)(B)(iii).
Par. (2)(B)(iv).
Par. (2)(B)(v).
Par. (2)(B)(vi).
Par. (5)(B)(ii)(III).
Par. (5)(B)(iii).
1989—Par. (5)(D).
"(ii) A tenant that because of any act or failure to act would otherwise be considered the same person as the landlord under clause (i) shall not be considered the same person as the landlord if the Secretary has at any time made a determination, for purposes of this section, regarding the number of persons with respect to the tenant's operation on such land for the 1989 crop year and the landlord did not consent to or knowingly participate in such act or failure to act.
"(iii) Any tenant that would be considered to be the same person as the landlord but for the operation of clause (ii) shall be eligible to receive any payment specified in paragraph (1) or (2) or subtitle D of title XII with respect to such land only to the extent that the tenant would be eligible for such payments if the tenant were to be considered the same person as the landlord under the regulations in place immediately prior to the enactment of this subparagraph."
1987—Par. (1).
Par. (2)(A).
Par. (2)(C).
Par. (5)(A).
Par. (5)(B).
Par. (5)(C).
Par. (5)(D), (E).
Par. (6).
Par. (7).
1986—Par. (1).
Par. (2).
Par. (3).
Par. (5)(A).
Par. (6).
Effective Date of 2018 Amendment
Effective Date of 2014 Amendment
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Effective Date of 1990 Amendment
Amendment by
Effective and Termination Dates of 1989 Amendment
Effective Date of 1987 Amendment
Effective and Termination Dates of 1986 Amendment
Transition Provisions
[For definition of "covered commodity" as used in section 1603(h) of
[
Equitable Relief
Payment Provisions Education Program
"(1)
"(2)
"(3)
"(4)
Regulations To Carry Out 1987 Amendments; Transition Rules; Equitable Adjustments
"(a)
"(1)
"(A) proposed regulations to carry out the amendments made by this subtitle [enacting
"(B) final regulations to carry out such amendments not later than August 1, 1988.
"(2)
"(b)
Conservation Reserve Application
Revision of Regulations
"(1)(A) The Secretary of Agriculture shall review the regulations in effect on the date of enactment of this Act [Oct. 18, 1986] that define 'person' under section 1001 of the Food Security Act of 1985 [this section] and related regulations in effect on such date otherwise affecting the payment limitations under such section, to determine ways in which such regulations can be revised to better ensure the fair and reasonable application of limitations and eliminate fraud and abuse in the application of such payment limitations.
"(B) The Secretary also shall review the amendments to section 1001 of the Food Security Act of 1985 made by this section.
"(2) Based on the reviews conducted under paragraph (1), the Secretary of Agriculture shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives, not later than March 1, 1987, a report on such reviews and—
"(A) with respect to the matters reviewed under paragraph (1)(A), proposed regulations or amendments to regulations, to take effect not earlier than October 1, 1987, that will meet the object with respect to limitations specified in paragraph (1)(A); and
"(B) with respect to the matters reviewed under paragraph (1)(B), recommendations on legislative changes to section 1001 of the Food Security Act of 1985 that the Secretary determines are necessary or appropriate."
Separate Person Status Among Family Members
1 See References in Text note below.
§1308–1. Notification of interests; payments limited to active farmers
(a) Notification of interests
To facilitate administration of
(1) the name and social security number of each person, or the name and taxpayer identification number of each legal entity, that holds or acquires an ownership interest in the separate person or legal entity; and
(2) the name and taxpayer identification number of each legal entity in which the person or legal entity holds an ownership interest.
(b) Actively engaged
(1) In general
To be eligible to receive a payment described in subsection (b) or (c) of
(2) Classes actively engaged
Except as provided in subsections (c) and (d)—
(A) a person (including a person participating in a farming operation as a partner in a general partnership, a participant in a joint venture, a grantor of a revocable trust, or a participant in a similar entity, as determined by the Secretary) shall be considered to be actively engaged in farming with respect to a farming operation if—
(i) the person makes a significant contribution (based on the total value of the farming operation) to the farming operation of—
(I) capital, equipment, or land; and
(II) personal labor or active personal management;
(ii) the person's share of the profits or losses from the farming operation is commensurate with the contributions of the person to the farming operation; and
(iii) the contributions of the person are at risk;
(B) a legal entity that is a corporation, joint stock company, association, limited partnership, charitable organization, or other similar entity determined by the Secretary (including any such legal entity participating in the farming operation as a partner in a general partnership, a participant in a joint venture, a grantor of a revocable trust, or as a participant in a similar legal entity as determined by the Secretary) shall be considered as actively engaged in farming with respect to a farming operation if—
(i) the legal entity separately makes a significant contribution (based on the total value of the farming operation) of capital, equipment, or land;
(ii) the stockholders or members collectively make a significant contribution of personal labor or active personal management to the operation; and
(iii) the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity;
(C) if a legal entity that is a general partnership, joint venture, or similar entity, as determined by the Secretary, separately makes a significant contribution (based on the total value of the farming operation involved) of capital, equipment, or land, and the standards provided in clauses (ii) and (iii) of subparagraph (A), as applied to the legal entity, are met by the legal entity, the partners or members making a significant contribution of personal labor or active personal management shall be considered to be actively engaged in farming with respect to the farming operation involved; and
(D) in making determinations under this subsection regarding equipment and personal labor, the Secretary shall take into consideration the equipment and personal labor normally and customarily provided by farm operators in the area involved to produce program crops.
(c) Special classes actively engaged
(1) Landowner
A person or legal entity that is a landowner contributing the owned land to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if—
(A) the landowner receives rent or income for the use of the land based on the production on the land or the operating results of the operation; and
(B) the person or legal entity meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(2) Adult family member
If a majority of the participants in a farming operation are family members, an adult family member shall be considered to be actively engaged in farming with respect to the farming operation if the person—
(A) makes a significant contribution, based on the total value of the farming operation, of active personal management or personal labor; and
(B) with respect to such contribution, meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(3) Sharecropper
A sharecropper who makes a significant contribution of personal labor to a farming operation shall be considered to be actively engaged in farming with respect to the farming operation if the contribution meets the standards provided in clauses (ii) and (iii) of subsection (b)(2)(A).
(4) Growers of hybrid seed
In determining whether a person or legal entity growing hybrid seed under contract shall be considered to be actively engaged in farming, the Secretary shall not take into consideration the existence of a hybrid seed contract.
(5) Custom farming services
(A) In general
A person or legal entity receiving custom farming services shall be considered separately eligible for payment limitation purposes if the person or legal entity is actively engaged in farming based on subsection (b)(2) or paragraphs (1) through (4) of this subsection.
(B) Prohibition
No other rules with respect to custom farming shall apply.
(6) Spouse
If 1 spouse (or estate of a deceased spouse) is determined to be actively engaged, the other spouse shall be determined to have met the requirements of subsection (b)(2)(A)(i)(II).
(d) Classes not actively engaged
(1) Cash rent landlord
A landlord contributing land to a farming operation shall not be considered to be actively engaged in farming with respect to the farming operation if the landlord receives cash rent, or a crop share guaranteed as to the amount of the commodity to be paid in rent, for the use of the land.
(2) Other persons and legal entities
Any other person or legal entity that the Secretary determines does not meet the standards described in subsections (b)(2) and (c) shall not be considered to be actively engaged in farming with respect to a farming operation.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
2008—
Subsec. (a).
Subsecs. (b) to (d).
2002—Subsec. (a)(1).
Subsec. (b)(1).
Subsec. (b)(2)(B).
1996—Subsec. (a)(1).
Subsec. (b)(1).
1991—Subsec. (a)(2).
1990—Subsec. (a)(2).
Subsec. (b)(6).
1987—Subsec. (b).
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1987 Amendment
Effective Date
Transition Provisions
Section, as in effect on Sept. 30, 2007, to continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts, see section 1603(h) of
Rulemaking Related to Significant Contribution for Active Personal Management
"(a)
"(1) to define the term 'significant contribution of active personal management' for purposes of section 1001A of the Food Security Act of 1985 (
"(2) if the Secretary determines it is appropriate, to establish limits for varying types of farming operations on the number of individuals who may be considered to be actively engaged in farming with respect to the farming operation when a significant contribution of active personal management is the basis used to meet the requirement of being actively engaged in farming under section 1001A of the Food Security Act of 1985 (
"(b)
"(1) the size, nature, and management requirements of each type of farming operation;
"(2) the changing nature of active personal management due to advancements of farming operations; and
"(3) the degree to which the regulations promulgated pursuant to subsection (a) will adversely impact the long-term viability of the farming operation.
"(c)
"(d)
"(e)
"(f)
"(g)
§1308–2. Denial of program benefits
(a) 2-year denial of program benefits
A person or legal entity shall be ineligible to receive payments specified in subsections (b) and (c) of
(1) failed to comply with
(2) intentionally concealed the interest of the person or legal entity in any farm or legal entity engaged in farming.
(b) Extended ineligibility
If the Secretary determines that a person or legal entity, for the benefit of the person or legal entity or the benefit of any other person or legal entity, has knowingly engaged in, or aided in the creation of a fraudulent document, failed to disclose material information relevant to the administration of
(c) Pro rata denial
(1) In general
Payments otherwise owed to a person or legal entity described in subsections (a) or (b) shall be denied in a pro rata manner based on the ownership interest of the person or legal entity in a farm.
(2) Cash rent tenant
Payments otherwise payable to a person or legal entity shall be denied in a pro rata manner if the person or legal entity is a cash rent tenant on a farm owned or under the control of a person or legal entity with respect to which a determination has been made under subsection (a) or (b).
(d) Joint and several liability
Any legal entity (including partnerships and joint ventures) and any member of any legal entity determined to have knowingly participated in a scheme or device to evade, or that has the purpose of evading,
(e) Release
The Secretary may partially or fully release from liability any person or legal entity who cooperates with the Secretary in enforcing
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
2008—
2002—
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Effective Date
Transition Provisions
Section, as in effect on Sept. 30, 2007, to continue to apply with respect to the 2007 and 2008 crops of any covered commodity or peanuts, see section 1603(h) of
§1308–3. Foreign persons made ineligible for program benefits
Notwithstanding any other provision of law:
(a) In general
Any person who is not a citizen of the United States or an alien lawfully admitted into the United States for permanent residence under the Immigration and Nationality Act (
(b) Corporations or other entities
For purposes of subsection (a), a corporation or other entity shall be considered a person that is ineligible for production adjustment payments, price support program loans, payments, or benefits if more than 10 percent of the beneficial ownership of the entity is held by persons who are not citizens of the United States or aliens lawfully admitted into the United States for permanent residence under the Immigration and Nationality Act [
(c) Prospective application
No person shall become ineligible under this section for production adjustment payments, price support program loans, payments or benefits as the result of the production of a crop of an agricultural commodity planted, or commodity program or conservation reserve contract entered into, before December 22, 1987.
(
References in Text
The Immigration and Nationality Act, referred to in subsecs. (a) and (b), is act June 27, 1952, ch. 477,
The Food, Conservation, and Energy Act of 2008, referred to in subsec. (a), is
The Agricultural Act of 2014, referred to in subsec. (a), is
The Agricultural Market Transition Act, referred to in subsec. (a), is title I of
The Commodity Credit Corporation Charter Act, referred to in subsec. (a), is act June 29, 1948, ch. 704,
The Food Security Act of 1985, referred to in subsec. (a), is
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
2014—Subsec. (a).
2008—Subsec. (a).
2002—Subsec. (a).
1996—Subsec. (a).
1993—Subsec. (a).
1990—Subsec. (a).
Effective Date of 2014 Amendment
Amendment by
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Effective Date of 1990 Amendment
Amendment by
Effective Date
1 See References in Text note below.
§1308–3a. Adjusted gross income limitation
(a) Definitions
(1) Average adjusted gross income
In this section, the term "average adjusted gross income", with respect to a person or legal entity, means the average of the adjusted gross income or comparable measure of the person or legal entity over the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Secretary.
(2) Special rules for certain persons and legal entities
In the case of a legal entity that is not required to file a Federal income tax return or a person or legal entity that did not have taxable income in 1 or more of the taxable years used to determine the average under paragraph (1), the Secretary shall provide, by regulation, a method for determining the average adjusted gross income of the person or legal entity for purposes of this section.
(3) Allocation of income
On the request of any person filing a joint tax return, the Secretary shall provide for the allocation of average adjusted gross income among the persons filing the return if—
(A) the person provides a certified statement by a certified public accountant or attorney that specifies the method by which the average adjusted gross income would have been declared and reported had the persons filed 2 separate returns; and
(B) the Secretary determines that the method described in the statement is consistent with the information supporting the filed joint tax return.
(b) Limitations on commodity and conservation programs
(1) Limitation
Notwithstanding any other provision of law, subject to paragraph (3), a person or legal entity shall not be eligible to receive any benefit described in paragraph (2) during a crop, fiscal, or program year, as appropriate, if the average adjusted gross income of the person or legal entity exceeds $900,000.
(2) Covered benefits
Paragraph (1) applies with respect to the following:
(A) A payment or benefit under subtitle A or E of title I of the Agricultural Act of 2014 [
(B) A marketing loan gain or loan deficiency payment under subtitle B of title I of the Agricultural Act of 2014 [
(C) Starting with fiscal year 2015, a payment or benefit under title II of the Agriculture Improvement Act of 2018, title II of the Agricultural Act of 2014, title II of the Farm Security and Rural Investment Act of 2002, title II of the Food, Conservation, and Energy Act of 2008, or title XII of the Food Security Act of 1985 [
(D) A payment or benefit under
(E) A payment or benefit under
(3) Waiver
The Secretary may waive the limitation established by paragraph (1) with respect to a payment pursuant to a covered benefit described in paragraph (2)(C), on a case-by-case basis, if the Secretary determines that environmentally sensitive land of special significance would be protected as a result of such waiver.
(c) Enforcement
(1) In general
To comply with subsection (b), at least once every 3 years a person or legal entity shall provide to the Secretary—
(A) a certification by a certified public accountant or another third party that is acceptable to the Secretary that the average adjusted gross income of the person or legal entity does not exceed the applicable limitation specified in that subsection; or
(B) information and documentation regarding the average adjusted gross income of the person or legal entity through other procedures established by the Secretary.
(2) Denial of program benefits
If the Secretary determines that a person or legal entity has failed to comply with this section, the Secretary shall deny the issuance of applicable payments and benefits specified in subsection (b)(2) to the person or legal entity, under similar terms and conditions as described in
(3) Audit
The Secretary shall establish statistically valid procedures under which the Secretary shall conduct targeted audits of such persons or legal entities as the Secretary determines are most likely to exceed the limitations under subsection (b).
(d) Commensurate reduction
In the case of a payment or benefit described in subsection (b)(2) made in a crop, program, or fiscal year, as appropriate, to an entity, general partnership, or joint venture, the amount of the payment or benefit shall be reduced by an amount that is commensurate with the direct and indirect ownership interest in the entity, general partnership, or joint venture of each person who has an average adjusted gross income in excess of the applicable limitation specified in subsection (b).
(
References in Text
The Agricultural Act of 2014, referred to in subsec. (b)(2)(A) to (C), is
The Agriculture Improvement Act of 2018, referred to in subsec. (b)(2)(C), is
The Farm Security and Rural Investment Act of 2002, referred to in subsec. (b)(2)(C), is
The Food, Conservation, and Energy Act of 2008, referred to in subsec. (b)(2)(C), is
The Food Security Act of 1985, referred to in subsec. (b)(2)(C), is
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Prior Provisions
A prior section 1001D of
Amendments
2018—Subsec. (b)(1).
Subsec. (b)(2)(C).
Subsec. (b)(3).
2014—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (b).
Subsec. (c).
Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (d).
Subsec. (e).
Subsec. (f).
2008—
Effective Date of 2008 Amendment
Amendment of this section and repeal of
Transition Provisions
[
§1308–4. Education program
(a) In general
The Secretary shall carry out a payment provisions education program for appropriate personnel of the Department of Agriculture and members and other personnel of county and State committees established under
(b) Training
The education program shall provide training to the personnel in the fair, accurate, and uniform application to individual farming operations of the provisions of law and regulation relating to the payment provisions of
(c) Administration
The State office of the Agricultural Stabilization and Conservation Service shall make the initial determination concerning the application of payment limitations and restrictions established under
(d) Commodity Credit Corporation
The Secretary shall carry out the program provided under 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 Adjustment Act of 1938 which comprises this chapter.
Prior Provisions
A prior section 1001E of
Effective Date
Section effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
§1308–5. Treatment of multiyear program contract payments
(a) In general
Notwithstanding any other provision of law, in the event of a transfer of ownership of land (or an ownership interest in land) by way of devise or descent, the Secretary of Agriculture may, if the new owner succeeds to the prior owner's contract entered into under title XII,1 make payments to the new owner under such contract without regard to the amount of payments received by the new owner under any contract entered into under title XII 1 executed prior to such devise or descent.
(b) Limitation
Payments made pursuant to this section shall not exceed the amount to which the previous owner was entitled to receive under the terms of the contract at the time of the death of the prior owner.
(
References in Text
Title XII, referred to in subsec. (a), is title XII of the Food Security Act of 1985,
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Effective Date
Section effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of
1 See References in Text note below.
§1308a. Cost reduction options
(a) Authority of Secretary to take action
Notwithstanding any other provision of law, whenever the Secretary of Agriculture determines that an action authorized under subsection (c), (d), or (e) will reduce the total of the direct and indirect costs to the Federal Government of a commodity program administered by the Secretary without adversely affecting income to small- and medium-sized producers participating in such program, the Secretary shall take such action with respect to the commodity program involved.
(b) Reservation of Secretary's right to reopen or change contracts if producer agrees
In the announcement of the specific provisions of any commodity program administered by the Secretary of Agriculture, the Secretary shall include a statement setting forth which, if any, of the actions are to be initially included in the program, and a statement that the Secretary reserves the right to initiate at a later date any action not previously included but authorized by this section, including the right to reopen and change a contract entered into by a producer under the program if the producer voluntarily agrees to the change.
(c) Purchase from other sources of commodities covered by nonrecourse loans
When a nonrecourse loan program is in effect for a crop of a commodity, the Secretary may enter the commercial market to purchase such commodity if the Secretary determines that the cost of such purchases plus appropriate carrying charges will probably be less than the comparable cost of later acquiring the commodity through defaults on nonrecourse loans under the program.
(d) Reduction in settlement price of nonrecourse loans
When the domestic market price of a commodity for which a nonrecourse loan program (including the program authorized by
(1) receipt by the Federal Government of a portion rather than none of the accumulated interest;
(2) avoidance of default; or
(3) elimination of storage, handling, and carrying charges on the forfeited commodity.
(e) Reopening of production control or loan programs to allow for payment in kind
When a production control or loan program is in effect for a crop of a major agricultural commodity, the Secretary may at any time prior to harvest reopen the program to participating producers for the purpose of accepting bids from producers for the conversion of acreage planted to such crop to diverted acres in return for payment in kind from Commodity Credit Corporation surplus stocks of the commodity to which the acreage was planted, if the Secretary determines that (1) changes in domestic or world supply or demand conditions have substantially changed after announcement of the program for that crop, and (2) without action to further adjust production, the Federal Government and producers will be faced with a burdensome and costly surplus. Such payments in kind shall not be included within the payment limitation per person established under
(f) Other authorities of Secretary not affected
The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary under any other provision of law.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
2008—Subsec. (e).
1989—Subsec. (d).
Effective Date of 2008 Amendment
Amendment of this section and repeal of
§1309. Normally planted acreage and target prices
(a) Authorized planted acreage for 1982 through 1995 crops of wheat and feed grains as prerequisite for loan, etc.; eligibility; determinations; records
Notwithstanding any other provision of law, whenever a set-aside program is in effect for one or more of the 1982 through 1995 crops of wheat and feed grains, the Secretary of Agriculture may require, as a condition of eligibility for loans, purchases, and payments for such crops under the Agricultural Act of 1949 [
(b) Established price payments
Notwithstanding any other provision of law—
(1) Whenever the Secretary, for one or more of the 1982 through 1995 crops of wheat and feed grains, requires that producers not exceed the acreage on the farm normally planted to crops designated by the Secretary in accordance with subsection (a) of this section, the Secretary may increase the established price payments for any such commodity by such amount (or if there are no such payments in effect for such crop by providing for payments in such amount) as the Secretary determines appropriate to compensate producers for not exceeding the acreage on the farm normally planted to crops designated by the Secretary and participation in any required set-aside with respect to such commodity.
(2) In determining the amount of any payments for any commodity under this subsection, the Secretary shall take into account changes in the costs of production resulting from not exceeding the acreage on the farm normally planted to crops designated by the Secretary and participation in any required set-aside with respect to such commodity.
(3) If payments are provided for any commodity under this subsection, the Secretary may provide for payments for any other commodity in such amount as the Secretary determines necessary for effective operation of the program.
(4) The Secretary shall adjust any payments under this subsection to reflect, in whole or in part, any land diversion payments for the commodity for which an increase is determined.
(c) Marketing quotas in effect for 1987 through 1995 crops of wheat; reduction in normally planted acreage as condition prerequisite for loan, etc.
Notwithstanding any other provision of law, whenever marketing quotas are in effect for any of the 1987 through 1995 crops of wheat, the Secretary of Agriculture may require, as a condition of eligibility for loans, purchases, and payments on any commodity under the Agricultural Act of 1949 (
(1) the acreage that the Secretary determines would normally be planted to wheat on a farm; minus
(2) the individual farm program acreage for the farm under section 107B(d)(3)(A) 1 of such Act.
(
References in Text
The Agricultural Act of 1949, referred to in subsecs. (a) and (c), is act Oct. 31, 1949, ch. 792,
Section 107B(d)(3)(A) of such Act, referred to in subsec. (c)(2), is section 107B(d)(3)(A) of the Agricultural Act of 1949, which was classified to
Codification
Section was enacted as part of the Food and Agriculture Act of 1977, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
1990—Subsecs. (a), (b)(1), (c).
Subsec. (c)(2).
1985—Subsecs. (a), (b)(1).
Subsec. (c).
1981—Subsec. (a).
Subsec. (b).
Subsec. (c).
1980—Subsec. (a).
Subsec. (b).
Subsec. (c).
1978—Subsec. (b).
Effective Date of 1990 Amendment
Amendment by
Effective Date of 1981 Amendment
Amendment by
Effective and Termination Dates of 1980 Amendment
Effective Date of 1978 Amendments
Effective Date
Section effective Oct. 1, 1977, see section 1901 of
1 See References in Text note below.
§1310. American agriculture protection program
(a) Determination of short supply; suspension of commercial export sales; parity price
Notwithstanding any other provision of law, whenever the President or any other member of the executive branch of the Federal Government causes to be suspended, based upon a determination of short supply, the commercial export sales of any commodity, as defined in subsection (c) of this section, to any country or area with which the United States otherwise continues commercial trade, the Secretary of Agriculture shall, on the day the suspension is initiated, set the loan level for such commodity under the Agricultural Act of 1949, as amended [
(b) Duration of loan level
Any loan level established pursuant to subsection (a) of this section shall remain in effect as long as the suspension of commercial export sales described in subsection (a) remains in effect.
(c) "Commodity" defined
For purposes of this section, the term "commodity" shall include any of the following: wheat, corn, grain sorghum, soybeans, oats, rye, barley, rice, flaxseed, and cotton.
(
References in Text
The Agricultural Act of 1949, referred to in subsec. (a), is act Oct. 31, 1949, ch. 792,
Codification
Section was enacted as part of the Food and Agriculture Act of 1977, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Effective Date
Section effective Oct. 1, 1977, see section 1901 of
§1310a. Normal supply of commodity for 1986 through 1995 crops
Notwithstanding any other provision of law, if the Secretary of Agriculture determines that the supply of wheat, corn, upland cotton, or rice for the marketing year for any of the 1986 through 1995 crops of such commodity is not likely to be excessive and that program measures to reduce or control the planted acreage of the crop are not necessary, such a decision shall constitute a determination that the total supply of the commodity does not exceed the normal supply and no determination to the contrary shall be made by the Secretary with respect to such commodity for such marketing year.
(
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Prior Provisions
A prior section 1310a,
Amendments
1990—
Effective Date of 1990 Amendment
Amendment by
Part B—Marketing Quotas
subpart i—marketing quotas—tobacco
§§1311 to 1314–1. Repealed. Pub. L. 108–357, title VI, §611(a), Oct. 22, 2004, 118 Stat. 1522
Section 1311, act Feb. 16, 1938, ch. 30, title III, §311,
Section 1312, acts Feb. 16, 1938, ch. 30, title III, §312,
Section 1313, acts Feb. 16, 1938, ch. 30, title III, §313,
Section 1314, acts Feb. 16, 1938, ch. 30, title III, §314,
Section 1314–1, act Feb. 16, 1938, ch. 30, title III, §314A, as added
Effective Date of Repeal
Repeal applicable to the 2005 and subsequent crops of tobacco, see section 643 of
Savings Provision
Repeal not to affect the liability of any person under this subpart with respect to the 2004 or an earlier crop of tobacco, see section 614 of
§1314a. Repealed. Pub. L. 90–51, §2, July 7, 1967, 81 Stat. 121
Section, act Feb. 16, 1938, ch. 30, title III, §315, as added Aug. 21, 1958,
§§1314b to 1314j. Repealed. Pub. L. 108–357, title VI, §611(a), Oct. 22, 2004, 118 Stat. 1522
Section 1314b, act Feb. 16, 1938, ch. 30, title III, §316, as added
Section 1314b–1, act Feb. 16, 1938, ch. 30, title III, §316A, as added
Section 1314b–2, act Feb. 16, 1938, ch. 30, title III, §316B, as added
Section 1314c, act Feb. 16, 1938, ch. 30, title III, §317, as added
Section 1314d, act Feb. 16, 1938, ch. 30, title III, §318, as added
Section 1314e, act Feb. 16, 1938, ch. 30, title III, §319, as added
Section 1314f, act Feb. 16, 1938, ch. 30, title III, §320, as added
Section 1314g, act Feb. 16, 1938, ch. 30, title III, §320A, as added
Section 1314h, act Feb. 16, 1938, ch. 30, title III, §320B, as added
Section 1314i, act Feb. 16, 1938, ch. 30, title III, §320C, as added
Section 1314j, act Feb. 16, 1938, ch. 30, title III, §320D, as added
Effective Date of Repeal
Repeal applicable to the 2005 and subsequent crops of tobacco, see section 643 of
Savings Provision
Repeal not to affect the liability of any person under this subpart with respect to the 2004 or an earlier crop of tobacco, see section 614 of
Tobacco Definition and Increase of Marketing Quotas and Acreage Allotments To Meet Demand Unaffected by Acreage-Poundage Marketing Quotas and Price Support Provisions
§1315. Repealed. Pub. L. 108–357, title VI, §611(o), Oct. 22, 2004, 118 Stat. 1523
Section, acts July 12, 1952, ch. 709,
Effective Date of Repeal
Repeal applicable to the 2005 and subsequent crops of tobacco, see section 643 of
Savings Provision
Repeal not to affect the liability of any person under this section with respect to the 2004 or an earlier crop of tobacco, see section 614 of
§1316. Repealed. Pub. L. 108–357, title VI, §611(p), Oct. 22, 2004, 118 Stat. 1523
Section,
Effective Date of Repeal
Repeal applicable to the 2005 and subsequent crops of tobacco, see section 643 of
Savings Provision
Repeal not to affect the liability of any person under this section with respect to the 2004 or an earlier crop of tobacco, see section 614 of
subpart ii—acreage allotments—corn
Amendments
1954—Act Aug. 28, 1954, ch. 1041, title III, §303,
§1321. Legislative finding of effect on interstate and foreign commerce and necessity of regulation
Corn is a basic source of food for the Nation, and corn produced in the commercial corn-producing area moves almost wholly in interstate and foreign commerce in the form of corn, livestock, and livestock products.
Abnormally excessive and abnormally deficient supplies of corn acutely and directly affect, burden, and obstruct interstate and foreign commerce in corn, livestock, and livestock products. When abnormally excessive supplies exist, transportation facilities in interstate and foreign commerce are overtaxed, and the handling and processing facilities through which the flow of interstate and foreign commerce in corn, livestock, and livestock products is directed become acutely congested. Abnormally deficient supplies result in substantial decreases in livestock production and in an inadequate flow of livestock and livestock products in interstate and foreign commerce, with the consequence of unreasonably high prices to consumers.
Violent fluctuations from year to year in the available supply of corn disrupt the balance between the supply of livestock and livestock products moving in interstate and foreign commerce and the supply of corn available for feeding. When available supplies of corn are excessive, corn prices are low and farmers overexpand livestock production in order to find outlets for corn. Such expansion, together with the relative scarcity and high price of corn, forces farmers to market abnormally excessive supplies of livestock in interstate commerce at sacrifice prices, endangering the financial stability of producers, and overtaxing handling and processing facilities through which the flow of interstate and foreign commerce in livestock and livestock products is directed. Such excessive marketings deplete livestock on farms, and livestock marketed in interstate and foreign commerce consequently becomes abnormally low, with resultant high prices to consumers and danger to the financial stability of persons engaged in transporting, handling, and processing livestock in interstate and foreign commerce. These high prices in turn result in another overexpansion of livestock production.
Recurring violent fluctuations in the price of corn resulting from corresponding violent fluctuations in the supply of corn directly affect the movement of livestock in interstate commerce from the range cattle regions to the regions where livestock is fattened for market in interstate and foreign commerce, and also directly affect the movement in interstate commerce of corn marketed as corn which is transported from the regions where produced to the regions where livestock is fattened for market in interstate and foreign commerce.
Substantially all the corn moving in interstate commerce, substantially all the corn fed to livestock transported in interstate commerce for fattening, and substantially all the corn fed to livestock marketed in interstate and foreign commerce, is produced in the commercial corn-producing area. Substantially all the corn produced in the commercial corn-producing area, with the exception of a comparatively small amount used for farm consumption, is either sold or transported in interstate commerce, or is fed to livestock transported in interstate commerce for feeding, or is fed to livestock marketed in interstate and foreign commerce. Almost all the corn produced outside the commercial corn-producing area is either consumed, or is fed to livestock which is consumed, in the State in which such corn is produced.
The conditions affecting the production and marketing of corn and the livestock products of corn are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of disparities between the supplies of livestock moving in interstate and foreign commerce and the supply of corn available for feeding, and provide for orderly marketing of corn in interstate and foreign commerce and livestock and livestock products in interstate and foreign commerce.
The national public interest requires that the burdens on interstate and foreign commerce above described be removed by the exercise of Federal power. By reason of the administrative and physical impracticability of regulating the movement of livestock and livestock products in interstate and foreign commerce and the inadequacy of any such regulation to remove such burdens, such power can be feasibly exercised only by providing for the withholding from market of excessive and burdensome supplies of corn in times of excessive production, and providing a reserve supply of corn available for market in times of deficient production, in order that a stable and continuous flow of livestock and livestock products in interstate and foreign commerce may at all times be assured and maintained.
(Feb. 16, 1938, ch. 30, title III, §321,
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
§1322. Repealed. Aug. 28, 1954, ch. 1041, title III, §304, 68 Stat. 902
Section, acts Feb. 16, 1938, ch. 30, title III, §322,
§1322a. Repealed. July 3, 1948, ch. 827, title II, §203(b), 62 Stat. 1256
Section, act July 26, 1939, ch. 378,
Effective Date of Repeal
Repeal effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under
§§1323 to 1325. Repealed. Aug. 28, 1954, ch. 1041, title III, §304, 68 Stat. 902
Section 1323, act Feb. 16, 1938, ch. 30, title III, §323,
Section 1324, act Feb. 16, 1938, ch. 30, title III, §324,
Section 1325, act Feb. 16, 1938, ch. 30, title III, §325,
§1326. Adjustment of farm marketing quotas
(a) Whenever in any county or other area the Secretary finds that the actual production of corn plus the amount of corn stored under seal in such county or other area is less than the normal production of the marketing percentage of the farm acreage allotments in such county or other area, the Secretary shall terminate farm marketing quotas for corn in such county or other area.
(b) Whenever, upon any farm, the actual production of the acreage of corn is less than the normal production of the marketing percentage of the farm acreage allotment, there may be marketed, without penalty, from such farm an amount of corn from the corn stored under seal pursuant to
(c) Whenever, in any marketing year, marketing quotas are not in effect with respect to the crop of corn produced in the calendar year in which such marketing year begins, all marketing quotas applicable to previous crops of corn shall be terminated.
(Feb. 16, 1938, ch. 30, title III, §326,
References in Text
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Repeals
Act Aug. 28, 1954, ch. 1041, title III, §304,
§§1327 to 1329. Omitted
Codification
Sections provided for establishment of a commercial corn-producing area and corn acreage allotments, which were discontinued. See
Section 1327, acts Feb. 16, 1938, ch. 30, title III, §327,
Section 1328, acts Feb. 16, 1938, ch. 30, title III, §328,
Section 1329, acts Feb. 16, 1938, ch. 30, title III, §329,
§1329a. Discontinuance of acreage allotments on corn
Notwithstanding any other provision of law, acreage allotments and a commercial corn-producing area shall not be established for the 1959 and subsequent crops of corn.
(Feb. 16, 1938, ch. 30, title III, §330, as added Oct. 31, 1949, ch. 792, title I, §104(b)(1), as added
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 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
§1330. Omitted
Codification
Section, acts May 26, 1941, ch. 133,
Section was not enacted as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
subpart iii—marketing quotas—wheat
§1331. Legislative finding of effect on interstate and foreign commerce and necessity of regulation
Wheat is a basic source of food for the Nation, is produced throughout the United States by more than a million farmers, is sold on the country-wide market and, as wheat or flour, flows almost entirely through instrumentalities of interstate and foreign commerce from producers to consumers.
Abnormally excessive and abnormally deficient supplies of wheat on the country-wide market acutely and directly affect, burden, and obstruct interstate and foreign commerce. Abnormally excessive supplies overtax the facilities of interstate and foreign transportation, congest terminal markets and milling centers in the flow of wheat from producers to consumers, depress the price of wheat in interstate and foreign commerce, and otherwise disrupt the orderly marketing of such commodity in such commerce. Abnormally deficient supplies result in an inadequate flow of wheat and its products in interstate and foreign commerce with consequent injurious effects to the instrumentalities of such commerce and with excessive increases in the prices of wheat and its products in interstate and foreign commerce.
It is in the interest of the general welfare that interstate and foreign commerce in wheat and its products be protected from such burdensome surpluses and distressing shortages, and that a supply of wheat be maintained which is adequate to meet domestic consumption and export requirements in years of drought, flood, and other adverse conditions as well as in years of plenty, and that the soil resources of the Nation be not wasted in the production of such burdensome surpluses. Such surpluses result in disastrously low prices of wheat and other grains to wheat producers, destroy the purchasing power of grain producers for industrial products, and reduce the value of the agricultural assets supporting the national credit structure. Such shortages of wheat result in unreasonably high prices of flour and bread to consumers and loss of market outlets by wheat producers.
The conditions affecting the production and marketing of wheat are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of such surpluses and shortages and the burdens on interstate and foreign commerce resulting therefrom, maintain normal supplies of wheat, or provide for the orderly marketing thereof in interstate and foreign commerce.
Wheat which is planted and not disposed of prior to the date prescribed by the Secretary for the disposal of excess acres of wheat is an addition to the total supply of wheat and has a direct effect on the price of wheat in interstate and foreign commerce and may also affect the supply and price of livestock and livestock products. In the circumstances, wheat not disposed of prior to such date must be considered in the same manner as mechanically harvested wheat in order to achieve the policy of the chapter.
The diversion of substantial acreages from wheat to the production of commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the diverted acreage would burden, obstruct, and adversely affect interstate and foreign commerce in such commodities, and would adversely affect the prices of such commodities in interstate and foreign commerce. Small changes in the supply of a commodity could create a sufficient surplus to affect seriously the price of such commodity in interstate and foreign commerce. Large changes in the supply of such commodity could have a more acute effect on the price of the commodity in interstate and foreign commerce and, also, could overtax the handling, processing, and transportation facilities through which the flow of interstate and foreign commerce in such commodity is directed. Such adverse effects caused by overproduction in one year could further result in a deficient supply of the commodity in the succeeding year, causing excessive increases in the price of the commodity in interstate and foreign commerce in such year. It is, therefore, necessary to prevent acreage diverted from the production of wheat to be used to produce commodities which are in surplus supply or which will be in surplus supply if they are permitted to be grown on the diverted acreage.
The provisions of this subpart affording a cooperative plan to wheat producers are necessary in order to minimize recurring surpluses and shortages of wheat in interstate and foreign commerce, to provide for the maintenance of adequate reserve supplies thereof, to provide for an adequate and orderly flow of wheat and its products in interstate and foreign commerce at prices which are fair and reasonable to farmers and consumers, and to prevent acreage diverted from the production of wheat from adversely affecting other commodities in interstate and foreign commerce.
(Feb. 16, 1938, ch. 30, title III, §331,
Amendments
1962—
Effective Date of 1962 Amendment
Amendment by
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
§1332. National marketing quota
(a) Proclamation; duration of program
Whenever prior to April 15 in any calendar year the Secretary determines that the total supply of wheat in the marketing year beginning in the next succeeding calendar year will, in the absence of a marketing quota program, likely be excessive, the Secretary shall proclaim that a national marketing quota for wheat shall be in effect for such marketing year and for either the following marketing year or the following two marketing years, if the Secretary determines and declares in such proclamation that a two- or three-year marketing quota program is necessary to effectuate the policy of the chapter.
(b) Amount; minimum
If a national marketing quota for wheat has been proclaimed for any marketing year, the Secretary shall determine and proclaim the amount of the national marketing quota for such marketing year not earlier than January 1 or later than April 15 of the calendar year preceding the year in which such marketing year begins. The amount of the national marketing quota for wheat for any marketing year shall be an amount of wheat which the Secretary estimates (i) will be utilized during such marketing year for human consumption in the United States as food, food products, and beverages, composed wholly or partly of wheat, (ii) will be utilized during such marketing year in the United States for seed, (iii) will be exported either in the form of wheat or products thereof, and (iv) will be utilized during such marketing year in the United States as livestock (including poultry) feed, excluding the estimated quantity of wheat which will be utilized for such purpose as a result of the substitution of wheat for feed grains under
(c) National emergencies or material increase in demand; investigation; increase or termination
If, after the proclamation of a national marketing quota for wheat for any marketing year, the Secretary has reason to believe that, because of a national emergency or because of a material increase in the demand for wheat, the national marketing quota should be terminated or the amount thereof increased, he shall cause an immediate investigation to be made to determine whether such action is necessary in order to meet such emergency or increase in the demand for wheat. If, on the basis of such investigation, the Secretary finds that such action is necessary, he shall immediately proclaim such finding and the amount of any such increase found by him to be necessary and thereupon such national marketing quota shall be so increased or terminated. In case any national marketing quota is increased under this subsection, the Secretary shall provide for such increase by increasing acreage allotments established under this subpart by a uniform percentage.
(d) Farm marketing quotas for wheat crops planted in calendar years 1966–1970
Notwithstanding any other provision of this chapter, the Secretary shall proclaim a national marketing quota for the crops of wheat planted for harvest in the calendar years 1966 through 1970, and farm marketing quotas shall not be in effect for such crops of wheat.
(Feb. 16, 1938, ch. 30, title III, §332,
Amendments
1985—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
1968—Subsec. (d).
1965—Subsec. (b).
Subsec. (d).
1962—
1954—Act Aug. 28, 1954, struck out proclamations relating to supplies, and changed proclamation date from July 15 to May 15.
Effective and Termination Dates of 1985 Amendment
Effective Date of 1965 Amendment
Effective Date of 1962 Amendment
Amendment by
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
1965 Crop National Marketing Quota and Crop Acreage Allotment
Deferral of Proclamation for 1963 Crop
Deferral of Proclamation for 1960 Crop
§1333. National acreage allotment
The Secretary shall proclaim a national acreage allotment for each crop of wheat. The amount of the national acreage allotment for any crop of wheat shall be the number of acres which the Secretary determines on the basis of the projected national yield and expected underplantings (acreage other than that not harvested because of program incentives) of farm acreage allotments will produce an amount of wheat equal to the national marketing quota for wheat for the marketing year for such crop, or if a national marketing quota was not proclaimed, the quota which would have been determined if one had been proclaimed.
(Feb. 16, 1938, ch. 30, title III, §333,
Amendments
1985—
1965—
1962—
1948—Act July 3, 1948, required the Secretary to take imports into consideration in determining acreage allotments for the purposes of marketing quotas.
1939—Act July 26, 1939, amended last sentence.
1938—Act June 20, 1938, inserted last sentence.
Effective and Termination Dates of 1985 Amendment
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by
Effective Date of 1948 Amendment
Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 crop of wheat, see section 310(a) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
1965 Crop Acreage Allotment
Proclamation of a national acreage allotment for 1965 crop of wheat that will make available an adequate supply of wheat but shall not be less than forty-nine million five hundred thousand acres, see section 201 of
§1334. Apportionment of national acreage allotment
(a) Apportionment among States; special acreage reserve
The national allotment for wheat, less a reserve of not to exceed 1 per centum thereof for apportionment as provided in this subsection and less the special acreage reserve provided for in this subsection, shall be apportioned by the Secretary among the States on the basis of the preceding year's allotment for each such State, including all amounts allotted to the State and including for 1967 the increased acreage in the State allotted for 1966 under
(b) Apportionment among counties
The State acreage allotment for wheat, less a reserve of not to exceed 3 per centum thereof for apportionment as provided in subsection (c) of this section, shall be apportioned by the Secretary among the counties in the State, on the basis of the preceding year's wheat allotment in each such county, including for 1967 the increased acreage in the county allotted for 1966 pursuant to
(c) Apportionment among farms; overplanted allotments; reductions; notice
(1) The allotment to the county shall be apportioned by the Secretary, through the local committees, among the farms within the county on the basis of past acreage of wheat, tillable acres, crop-rotation practices, type of soil, and topography. Not more than 3 per centum of the State allotment shall be apportioned to farms on which wheat has not been planted during any of the three marketing years immediately preceding the marketing year in which the allotment is made. For the purpose of establishing farm acreage allotments—(i) the past acreage of wheat on any farm for 1958 or 1965 shall be the base acreage determined for the farm under the regulations issued by the Secretary for determining 1958 or 1965 farm wheat acreage allotments; (ii) if subsequent to the determination of such base acreage the 1958 or 1965 wheat acreage allotment for the farm is increased through administrative, review, or court proceedings, the 1958 or 1965 farm base acreage shall be increased in the same proportion; and (iii) the past acreage of wheat for 1959 and any subsequent year except 1965 shall be the wheat acreage on the farm which is not in excess of the farm wheat acreage allotment, plus, in the case wheat acreage on the farm which is not in excess of wheat acreage allotment, the acreage diverted under such wheat allotment programs: Provided, That for 1959 and subsequent years in the case of any farm on which the entire amount of the farm marketing excess is delivered to the Secretary or stored in accordance with applicable regulations to avoid or postpone payment of the penalty, the past acreage of wheat for the year in which such farm marketing excess is so delivered or stored shall be the farm base acreage of wheat determined for the farm under the regulations issued by the Secretary for determining farm wheat acreage allotments for such year, but if any part of the amount of wheat so stored is later depleted and penalty becomes due by reason of such depletion, for the purpose of establishing farm wheat acreage allotments subsequent to such depletion the past acreage of wheat for the farm for the year in which the excess was produced shall be reduced to the farm wheat acreage allotment for such year.
(2) Notwithstanding any other provision of law, each old or new farm acreage allotment for the 1962 crop of wheat as determined on the basis of a minimum national acreage allotment of fifty-five million acres shall be reduced by 10 per centum. In the event notices of farm acreage allotments for the 1962 crop of wheat have been mailed to farm operators prior to the effective date of this subparagraph (2), new notices showing the required reduction shall be mailed to farm operators as soon as practicable.
(3) Notwithstanding the provisions of paragraph (1) of this subsection, the past acreage of wheat for 1967 and any subsequent year shall be the acreage of wheat planted, plus the acreage regarded as planted, for harvest as grain on the farm which is not in excess of the farm acreage allotment.
(4) Notwithstanding any other provision of this subsection (c), the farm acreage allotment for the 1967 and any subsequent crop of wheat shall be established for each old farm by apportioning the county wheat acreage allotment among farms in the county on which wheat has been planted, or is considered to have been planted, for harvest as grain in any one of the three years immediately preceding the year for which allotments are determined on the basis of past acreage of wheat and the farm acreage allotment for the year immediately preceding the year for which the allotment is being established, adjusted as hereinafter provided. For purposes of this paragraph, the acreage allotment for the immediately preceding year may be adjusted to reflect established crop-rotation practices, may be adjusted downward to reflect a reduction in the tillable acreage on the farm, and may be adjusted upward to reflect such other factors as the Secretary determines should be considered for the purpose of establishing a fair and equitable allotment: Provided, That (i) for the purposes of computing the allotment for any year, the acreage allotment for the farm for the immediately preceding year shall be decreased by 7 per centum if for the year immediately preceding the year for which such reduction is made neither a voluntary diversion program nor a voluntary certificate program was in effect and there was noncompliance with the farm acreage allotment for such year; (ii) for purposes of clause (i), any farm on which the entire amount of farm marketing excess is delivered to the Secretary, stored, or adjusted to zero in accordance with applicable regulations to avoid or postpone payment of the penalty when farm marketing quotas are in effect, shall be considered in compliance with the allotment, but if any part of the amount of wheat so stored is later depleted and penalty becomes due by reason of such depletion, the allotment for such farm next computed after determination of such depletion shall be reduced by reducing the allotment for the immediately preceding year by 7 per centum; and (iii) for purposes of clause (i) if the Secretary determines that the reduction in the allotment does not provide fair and equitable treatment to producers on farms following special crop rotation practices, he may modify such reduction in the allotment as he determines to be necessary to provide fair and equitable treatment to such producers.
(d) Repealed. Pub. L. 89–321, title V, §501(6), Nov. 3, 1965, 79 Stat. 1201
(e) Increase in acreage allotments and marketing quotas for class II durum wheat
If, with respect to the 1962 and 1963 crops of wheat, the Secretary determines that the acreage allotments of farms producing durum wheat are inadequate to provide for the production of a sufficient quantity of durum wheat to satisfy the demands therefor (but not including export demand involving a subsidy by, or a loss to, the Federal Government), he shall increase the farm marketing quotas and acreage allotments for such crop of wheat for farms located in counties in the States of North Dakota, Minnesota, Montana, South Dakota, and California, designated by the Secretary as counties which (1) are capable of producing durum wheat (class II), and (2) have produced such wheat for commercial food products during one or more of the five years immediately preceding the year in which such crop is harvested. The Secretary shall determine the percentage factor by which the average acreage of durum wheat (class II) produced during the last two-year period for which statistics are available (excluding any increases in durum wheat acreage as a result of increases in wheat acreage allotments authorized by this subsection) must be increased to satisfy such demand. The wheat acreage allotment for any farm established for such crop without regard to this subsection, after reduction in the case of the 1962 crop as required by subsection (c)(2) (hereinafter referred to as the "original allotment"), shall be increased by an acreage computed by multiplying the average acreage of durum wheat (class II) on the farm during such two-year period (excluding any increase in the acreage of durum wheat as a result of an increase in the wheat acreage allotment for the farm authorized by this subsection) by such percentage factor: Provided, That such increased allotment shall not exceed the cropland on the farm well suited to wheat. The increase in the wheat acreage allotment for any farm shall be conditioned upon the production of an acreage of durum wheat (class II) at least equal to the average acreage of such wheat produced during such two-year period plus the number of acres by which the allotment is increased. Any increases in wheat acreage allotments authorized by this subsection shall be in addition to the National, State, and county wheat acreage allotments, and such increases shall not be considered in establishing future State, county, and farm allotments. The provisions of
(f) Voluntary surrender of acreage allotment
Any part of any 1955, 1956, or 1957 farm wheat acreage allotment on which wheat will not be planted and which is voluntarily surrendered to the county committee shall be deducted from the allotment to such farm and may be reapportioned by the county committee to other farms in the same county receiving allotments in amounts determined by the county committee to be fair and reasonable on the basis of past acreage of wheat tillable acres, crop rotation practices, type of soil, and topography. If all of the allotted acreage voluntarily surrendered is not needed in the county, the county committee may surrender the excess acreage to the State committee to be used for the same purposes as the State acreage reserve under subsection (c) of this section. Any allotment transferred under this provision shall be regarded for the purposes of subsection (c) of this section as having been planted on the farm from which transferred rather than on the farm to which transferred, except that this shall not operate to make the farm from which the allotment was transferred eligible for an allotment as having wheat planted thereon during the three-year base period: Provided, That notwithstanding any other provisions of law, any part of any 1955, 1956, or 1957 farm acreage allotment may be permanently released in writing to the county committee by the owner and operator of the farm, and reapportioned as provided herein. Acreage surrendered, reapportioned under this subsection, and planted shall be credited to the State and county in determining future acreage allotments.
(g) Plantings in excess of allotments or where no allotment is established
Notwithstanding any other provision of law, no acreage in the commercial wheat-producing area seeded to wheat for harvest as grain in 1958 or thereafter except 1965 in excess of acreage allotments shall be considered in establishing future State and county acreage allotments. The planting on a farm in the commercial wheat-producing area of wheat of the 1958 or any subsequent crop for which no farm wheat acreage allotment was established shall not make the farm eligible for an allotment as an old farm pursuant to the first sentence of subsection (c) of this section nor shall such farm by reason of such planting be considered ineligible for an allotment as a new farm under the second sentence of such subsection.
(h) Omitted
(i) Increase in acreage allotments for any kind of wheat in short supply; storage reduction and land-use provisions inapplicable to such wheat
If, with respect to any crop of wheat, the Secretary finds that the acreage allotments of farms producing any type of wheat are inadequate to provide for the production of a sufficient quantity of such type of wheat to satisfy the demand therefor, the wheat acreage allotment for such crop for each farm located in a county designated by the Secretary as a county which (1) is capable of producing such type of wheat, and (2) has produced such type of wheat for commercial food products during one or more of the five years immediately preceding the year in which such crop is harvested, shall be increased by such uniform percentage as he deems necessary to provide for such quantity. No increase shall be made under this subsection in the wheat acreage allotment of any farm for any crop if any wheat other than such type of wheat is planted on such farm for such crop. Any increases in wheat acreage allotments authorized by this subsection shall be in addition to the National, State, and county wheat acreage allotments, and such increases shall not be considered in establishing future State, county, and farm allotments. The provisions of
(j) Increased durum wheat acreage allotments to Tulelake area, California, for 1970 and subsequent years; factors determinative; effect of increased allotments on marketing allocations and diversion payments
Notwithstanding any other provision of this chapter, the Secretary shall increase the acreage allotments for the 1970 and subsequent crops of wheat for privately owned farms in the irrigable portion of the area known as the Tulelake division of the Klamath project of California located in Modoc and Siskiyou Counties, California, as defined by the United States Department of the Interior, Bureau of Reclamation, and hereinafter referred to as the area. The increase for the area for each such crop shall be determined by adding, to the extent applications are made therefor, to the total allotments established for privately owned farms in the area for the particular crop without regard to this subsection (hereinafter referred to as the original allotments) an acreage sufficient to make available for each such crop a total allotment of twelve thousand acres for the area. The additional allotments made available by this subsection shall be in addition to the National, State, and county allotments otherwise established under this section, and the acreage planted to wheat pursuant to such increases in allotments shall not be taken into account in establishing future State, county, and farm acreage allotments except as may be desirable in providing increases in allotments for subsequent years under this subsection for the production of Durum wheat. The Secretary shall apportion the additional allotment acreage made available under this subsection between Modoc and Siskiyou Counties on the basis of the relative needs for additional allotments for the portion of the area in each county. The Secretary shall allot such additional acreage to individual farms in the area for which applications for increased acreages are made on the basis of tillable acres, crop rotation practices, type of soil and topography, and the original allotment for the farm, if any. The increase in the wheat acreage allotment for any farm under this subsection (1) shall not be taken into account in computing the farm wheat marketing allocation under
(k) Transfer of farm wheat acreage allotments in case of natural disasters
Notwithstanding any other provision of this chapter, if the Secretary determines that because of a natural disaster a portion of the farm wheat acreage allotments in a county cannot be timely planted or replanted, he may authorize the transfer of all or a part of the wheat acreage allotment for any farm in the county so affected to another farm in the county or in an adjoining county on which one or more of the producers on the farm from which the transfer is to be made will be engaged in the production of wheat and will share in the proceeds thereof, in accordance with such regulations as the Secretary may prescribe. Any farm allotment transferred under this subsection shall be deemed to be planted on the farm from which it was transferred for the purposes of acreage history credits under this chapter.
(Feb. 16, 1938, ch. 30, title III, §334,
References in Text
Section 124 of the Agricultural Act of 1961, referred to in subsec. (e), is section 124 of
Section 307 of the Food and Agriculture Act of 1962, referred to in subsec. (e), is section 307 of
Codification
For omission of subsec. (h), see 1963 Amendment note below.
Amendments
1985—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsecs. (e) to (k).
Subsec. (e) related to increase in acreage allotments and marketing quotas for class II durum wheat.
Subsec. (f) related to voluntary surrender of acreage allotments for 1955, 1956, and 1957 crops of wheat.
Subsec. (g) related to plantings in excess of allotments or where no allotment was established, in the case of 1958 and subsequent crops of wheat.
Subsec. (h). There is no subsec. (h) for 1964 and subsequent crop years. Subsec. (h) was omitted pursuant to the 1963 amendment to this section by
Subsec. (i) related to an increase in acreage allotments for any kind of wheat in short supply, and enumerated provisions of law inapplicable to such wheat.
Subsec. (j) related to increased durum wheat acreage allotments to the Tulelake area in California for 1970 and subsequent crops of wheat.
Subsec. (k) related to transfer of farm wheat acreage allotments in case of natural disasters.
See Effective and Termination Dates of 1985 Amendment note below.
1970—Subsec. (j).
1968—Subsec. (a).
1965—Subsec. (a).
Subsec. (b).
Subsec. (c)(3), (4).
Subsec. (d).
Subsec. (g).
1964—Subsec. (a).
Subsec. (b).
Subsec. (c)(1).
Subsec. (g).
Subsec. (k).
1963—Subsec. (h). There is no subsec. (h) for 1964 and Subsequent Wheat Crops.
Subsec. (i).
Subsec. (j).
1962—Subsec. (e).
Subsec. (g).
Subsec. (h).
Subsec. (i).
1961—Subsec. (c).
Subsec. (e).
Subsec. (i).
1960—Subsec. (d).
Subsec. (i).
1958—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d). Act Feb. 16, 1938, §378(d), as added by
Subsec. (h).
Subsec. (i).
1957—Subsec. (e).
Subsec. (h).
1956—Subsec. (e). Act Mar. 16, 1956, extended increased durum allotment to the 1956 crop and to certain counties in California, shortened the production history from 10 to 5 years and advanced it 1 year to include 1955, and made increased durum allotment dependent upon reduced planting of other wheat.
Subsec. (f). Act May 28, 1956, substituted "1955, 1956, or 1957" for "1955", in two places.
Subsec. (g). Act Aug. 7, 1956, added subsec. (g).
1955—Subsec. (e). Act Feb. 19, 1955, removed for 1955, requirements restricting increased acreage allotments to producers who devote a normal share of their original allotment to durum and who have produced durum in 1 or more of the preceding 3 years.
1954—Subsec. (e). Act Jan. 30, 1954, added subsec. (e).
Subsec. (f). Act Aug. 28, 1954, added subsec. (f).
1953—Subsec. (a). Act July 14, 1953, provided a reserve of up to 1 percent of the national acreage allotment for counties in which new areas have come into production.
Subsec. (b). Act July 14, 1953, provided for a 3 percent reserve of State acreage allotments for new farms.
Subsec. (c). Act July 14, 1953, recognized the use of past acreage as a factor in making farm allotments and placed the reserves for new farms on a State basis instead of a county basis.
Subsec. (d). Act July 14, 1953, made the provision relating to farms acquired for national-defense purposes apply to farms acquired in 1950 or thereafter instead of 1940 or thereafter.
1942—Subsec. (d). Act Feb. 6, 1942, added subsec. (d).
1938—Subsec. (b). Act Apr. 7, 1938, struck out "net" before "acreage diverted" from parenthetical provision.
Effective and Termination Dates of 1985 Amendment
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by section 313 of
Effective Date of 1956 Amendment
Act Aug. 7, 1956, ch. 1030, §2,
Effective Date of 1955 Amendment
Act Feb. 19, 1955, ch. 8,
Effective Date of 1953 Amendment
Act July 14, 1953, ch. 194, §5,
Savings Provision
Transfer or reassignment of allotment as remaining in effect and ineligibility of displaced farm owner for additional allotment notwithstanding repeal of subsec. (d), see note set out under
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 crop of wheat, see section 310(a) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
Farm Acreage Allotments for 1966 Crop of Wheat
1963 Diverted Wheat Acreage Program
Applicability of 1963 Diverted Wheat Acreage Program to Increased Allotment Farms
1962 Diverted Wheat Acreage Program
Acreage Allotment for 1954 Crop
Act July 14, 1953, ch. 194, §4(a),
Acreage Allotment for 1950 Crop
Act Aug. 29, 1949, ch. 518, §5,
(A) 50 per centum of—
(1) the acreage on the farm seeded for the production of wheat in 1949, and
(2) any other acreage seeded for the production of wheat in 1948 which was fallowed and from which no crop was harvested in the calendar year 1949, or
(B) 50 per centum of—
(1) the acreage on the farm seeded for the production of wheat in 1948, and
(2) any other acreage seeded for the production of wheat in 1947 which was fallowed and from which no crop was harvested in the calendar year 1948,
adjusted in the same ratio as the national average seedings for the production of wheat during the ten calendar years 1939–1948 (adjusted as provided by this chapter) bore to the national acreage allotment for wheat for the 1950 crop: Provided, That no acreage was to be included under (A) or (B) which the Secretary, by appropriate regulations, determined would become an undue erosion hazard under continued farming. To the extent that the allotment to any county was insufficient to provide for such minimum farm allotments, the Secretary was to allot such county such additional acreage (which was to be in addition to the county, State, and national acreage allotments otherwise provided for under the Agricultural Adjustment Act of 1938, as amended [this chapter]) as was necessary in order to provide for such minimum farm allotments.
Emergency Farm Acreage Allotment
Act Feb. 28, 1945, ch. 15,
§1334a. Omitted
Codification
Section, act Aug. 28, 1954, ch. 1041, title III, §314,
§1334a–1. Summer fallow farms; upper limit on required set aside acreage for 1971 through 1977 wheat, feed grain, and cotton crops
Notwithstanding any other provision of law, for the 1971 through 1977 crops of wheat, feed grains and cotton, if in any year at least 55 per centum of the cropland acreage on an established summer fallow farm is devoted to a summer fallow use, no further acreage shall be required to be set aside under the wheat, feed grain and cotton programs for such year.
(
Codification
Section was enacted as part of the Agricultural Act of 1970, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Amendments
1973—
§1334b. Designation of States outside commercial wheat-producing areas
If the acreage allotment for any State for any crop of wheat is twenty-five thousand acres or less, the Secretary, in order to promote efficient administration of this chapter and the Agricultural Act of 1949 [
(Feb. 16, 1938, ch. 30, title III, §334a, as added
References in Text
The Agricultural Act of 1949, referred to in text, is act Oct. 31, 1949, ch. 792,
Effective Date
Section effective only with respect to programs applicable to crops planted for harvest in calendar year 1964 or any subsequent year and marketing years beginning in calendar year 1964, or any subsequent year, see section 323 of
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
§1335. Small-farm exemption; small-farm base acreage; election; acreage allotment; land-use provisions; price support; wheat marketing certificates
Notwithstanding any other provision of this subpart, no farm marketing quota for any crop of wheat shall be applicable to any farm with a farm acreage allotment of less than fifteen acres if the acreage of such crop of wheat does not exceed the small-farm base acreage determined for the farm, unless the operator elects in writing on a form and within the time prescribed by the Secretary to be subject to the farm acreage allotment and marketing quota. The small-farm base acreage for a farm shall be the smaller of (A) the average acreage of the crop of wheat planted for harvest in the three years 1959, 1960, and 1961, or such later three-year period, excluding 1963, determined by the Secretary to be representative, with adjustments for abnormal weather conditions, established crop-rotation practices on the farm, and such other factors as the Secretary determines should be considered for the purpose of establishing a fair and equitable small-farm base acreage, or (B) fifteen acres. The acreage allotment for any farm shall be the larger of (1) the small-farm base acreage determined as provided above on the basis of the three-year period 1959–1961, reduced by the same percentage by which the national acreage allotment for the crop is reduced below fifty-five million acres, or (2) the acreage allotment determined without regard to (1) above. If the operator of any such farm fails to make such election with respect to any crop of wheat, (i) for the purposes of
(Feb. 16, 1938, ch. 30, title III, §335,
Amendments
1985—
1965—
1962—
1961—Subsec. (d).
1957—Subsec. (f).
1954—Subsec. (a). Act Aug. 28, 1954, §309(a), substituted "May 15" for "July 1".
Subsec. (e). Act Aug. 28, 1954, §309(b), added subsec. (e).
1948—Subsec. (a). Act July 3, 1948, changed conditions which must be determined by the Secretary to exist before marketing quotas can be imposed.
1940—Subsec. (d). Act June 6, 1940, substituted "two hundred" for "one hundred".
Effective and Termination Dates of 1985 Amendment
Effective Date of 1965 Amendment
Amendment by
Effective Date of 1962 Amendment
Amendment by
Effective Date of 1961 Amendment
Effective Date of 1948 Amendment
Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 crop of wheat, see section 310(a) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
§1336. Referendum
If a national marketing quota for wheat for one, two, or three marketing years is proclaimed, the Secretary shall, not later than August 1 of the calendar year in which such national marketing quota is proclaimed, conduct a referendum, by secret ballot, of farmers to determine whether they favor or oppose marketing quotas for the marketing year or years for which proclaimed. Any producer who has a farm acreage allotment shall be eligible to vote in any referendum held pursuant to this section, except that a producer who has a farm acreage allotment of less than fifteen acres shall not be eligible to vote unless the farm operator elected pursuant to
(Feb. 16, 1938, ch. 30, title III, §336,
Codification
"December 20, 1985" substituted in text for "adjournment sine die of the first session of the Ninety-ninth Congress".
Amendments
1985—
1981—
1977—
1973—
1970—
1965—
1964—
1962—
1961—
1948—Act July 3, 1948, substituted "July 25" for "June 10".
Effective and Termination Dates of 1985 Amendment
Effective Date of 1962 Amendment
Amendment by
Effective Date of 1948 Amendment
Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 crop of wheat, see section 310(a) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
Date of Referendum for 1954 Crop
Act July 14, 1953, ch. 194, §4(b),
§1337. Repealed. Pub. L. 87–703, title III, §317, Sept. 27, 1962, 76 Stat. 622
Section, act Feb. 16, 1938, ch. 30, title III, §337,
Effective Date of Repeal
Repeal effective only with respect to programs applicable to crops planted for harvest in calendar year 1964 or any subsequent year and marketing years beginning in calendar year 1964, or any subsequent year, see section 323 of
§1338. Transfer of quotas
Farm marketing quotas for wheat shall not be transferable, but, in accordance with regulations prescribed by the Secretary for such purpose, any farm marketing quota in excess of the supply of wheat for such farm for any marketing year may be allocated to other farms on which the acreage allotment has not been exceeded.
(Feb. 16, 1938, ch. 30, title III, §338,
Amendments
1985—
Effective and Termination Dates of 1985 Amendment
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 crop of wheat, see section 310(a) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
§1339. Land use
(a) Penalties: computation, lien, joint and several liability and interest; exceptions: nonsurplus supply crops, substantial impairment, and nonproduction of wheat; diverted acreage: amount, annual identity, and grazing; crops available for marketing
(1) During any year in which marketing quotas for wheat are in effect, the producers on any farm (except a new farm receiving an allotment from the reserve for new farms) on which any crop is produced on acreage required to be diverted from the production of wheat shall be subject to a penalty on such crop, in addition to any marketing quota penalty applicable to such crops, as provided in this subsection unless (1) the crop is designated by the Secretary as one which is not in surplus supply and will not be in surplus supply if it is permitted to be grown on the diverted acreage, or as one the production of which will not substantially impair the purpose of the requirements of this section, or (2) no wheat is produced on the farm, and the producers have not filed an agreement or a statement of intention to participate in the payment program formulated pursuant to subsection (b) of this section. The acreage required to be diverted from the production of wheat on the farm shall be an acreage of cropland equal to the number of acres determined by multiplying the farm acreage allotment by the diversion factor determined by dividing the number of acres by which the national acreage allotment (less an acreage equal to the increased acreage allotted for 1966 pursuant to
(2) The Secretary may require that the acreage on any farm diverted from the production of wheat be land which was diverted from the production of wheat in the previous year, to the extent he determines that such requirement is necessary to effectuate the purposes of this part.
(3) The Secretary may permit the diverted acreage to be grazed in accordance with regulations prescribed by the Secretary.
(b) Payment program for 1964 through 1970 crops; terms and conditions; amount; additional diverted acreage; conservation and soil-conserving uses; adjustment; knowledge of exceeding acreage allotment; acreage allotment not exceeded by delivery to Secretary of farm marketing excess or storage in accordance with regulations to avoid or postpone payment of penalty or by farms exempt from marketing quota; new farms ineligible for payments; sharing and medium of payments
The Secretary is authorized to formulate and carry out a program with respect to the crops of wheat planted for harvest in the calendar years 1964 through 1970 under which, subject to such terms and conditions as he determines are desirable to effectuate the purposes of this section, payments may be made in amounts not in excess of 50 per centum of the estimated basic county support rate for wheat not accompanied by marketing certificates on the normal production of the acreage diverted taking into account the income objectives of the chapter, determined by the Secretary to be fair and reasonable with respect to acreage diverted pursuant to subsection (a) of this section. Any producer who complies with his 1964 farm acreage allotment for wheat and with the other requirements of the program shall be eligible to receive payments under the program for the 1964 crop of wheat. The Secretary may permit producers on any farm to divert from the production of wheat an acreage, in addition to the acreage diverted pursuant to subsection (a), equal to 50 per centum of the farm acreage allotment for wheat: Provided, That the producers on any farm may, at their election, divert such acreage in addition to the acreage diverted pursuant to subsection (a), as will bring the total acreage diverted on the farm to twenty-five acres. Such program shall require (1) that the diverted acreage shall be devoted to conservation uses approved by the Secretary; (2) that the total acreage of cropland on the farm devoted to soil-conserving uses, including summer fallow and idle land but excluding the acreage diverted as provided above, shall be not less than the total average acreage of cropland devoted to soil-conserving uses including summer fallow and idle land on the farm during a representative period, as determined by the Secretary, adjusted to the extent the Secretary determines appropriate for (i) abnormal weather conditions or other factors affecting production, (ii) established crop-rotation practices on the farm, (iii) participation in other Federal farm programs, (iv) unusually high percentage of land on the farm devoted to conserving uses, and (v) other factors which the Secretary determines should be considered for the purpose of establishing a fair and equitable soil-conserving acreage for the farm; and (3) that the producer shall not knowingly exceed (i) any farm acreage allotment in effect for any commodity produced on the farm, and (ii) except as the Secretary may by regulations prescribe, with the farm acreage allotments on any other farm for any crop in which the producer has a share: Provided, That no producer shall be deemed to have exceeded a farm acreage allotment for wheat if the entire amount of the farm marketing excess is delivered to the Secretary or stored in accordance with applicable regulations to avoid or postpone payment of the penalty: And provided further, That no producer shall be deemed to have exceeded a farm acreage allotment for any crop of wheat if the farm is exempt from the farm marketing quota for such crop under
(c) Adjustment of payments
The Secretary may provide for adjusting any payment on account of failure to comply with the terms and conditions of the land-use program formulated under subsection (b) of this section.
(d) Advance payments
Not to exceed 50 per centum of any payment to producers under subsection (b) of this section may be made in advance of determination of performance.
(e) Diverted acreage used for production of certain crops; rate of payment; limitation on rate
The Secretary may permit all or any part of the 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 of the commodity 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, subject to the condition that payment 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: Provided, That in no event shall the payment exceed one-half the rate which otherwise would be applicable if such acreage were devoted to conservation uses.
(f) Additional terms and conditions
The program formulated pursuant to subsection (b) of this section may include such terms and conditions, including provision for the control of erosion, in addition to those specifically provided for herein, as the Secretary determines are desirable to effectuate the purposes of this section.
(g) Regulations
The Secretary is authorized to promulgate such regulations as may be desirable to carry out the provisions of this section.
(h) Commodity Credit Corporation funds and authorization of appropriations for payments and administrative expenses
The Commodity Credit Corporation is authorized to utilize its capital funds and other assets for the purpose of making the payments authorized in this section and to pay administrative expenses necessary in carrying out this section during the period ending June 30, 1965. There is authorized to be appropriated such amounts as may be necessary thereafter to pay such administrative expenses.
(Feb. 16, 1938, ch. 30, title III, §339, as added
Prior Provisions
A prior section 1339, act Feb. 16, 1938, ch. 30, title III, §339,
Amendments
1968—Subsec. (b).
1965—Subsec. (a)(1).
Subsec. (b).
Subsec. (e).
1964—Subsec. (a)(1).
Subsec. (b).
Subsec. (h).
Effective Date of 1965 Amendment
Amendment by section 501 of
Effective and Termination Dates of 1964 Amendment
Effective Date
Section effective only with respect to programs applicable to crops planted for harvest in calendar year 1964 or any subsequent year and marketing years beginning in calendar year 1964, or any subsequent year, see section 323 of
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of wheat, see section 303 of
Section inapplicable to 1986 through 1990 crops of wheat, see section 310(b) of
Section inapplicable to 1982 through 1985 crops of wheat, see section 303 of
Section inapplicable to 1978 through 1981 crops of wheat, see section 404 of
Wheat Diversion Programs; Credits in Establishment of State, County and Farm Acreage Allotments for Wheat
Credits to State, county and farm of acreage diverted from production of wheat as though actually devoted to such production, see
§1339a. Repealed. Pub. L. 107–171, title I, §1613(j)(1), May 13, 2002, 116 Stat. 221
Section,
§1339b. Wheat diversion programs; credits in establishment of State, county and farm acreage allotments for wheat
In the establishment of State, county, and farm acreage allotments for wheat under the Agricultural Adjustment Act of 1938, as amended [
(
References in Text
The Agricultural Adjustment Act of 1938, referred to in text, is act Feb. 16, 1938, ch. 30,
Section 307 of this Act and section 124 of the Agricultural Act of 1961, referred to in text, are, respectively, section 307 of
Codification
Section was enacted as part of the Food and Agriculture Act of 1962, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
§1339c. Feed grains diversion programs for 1964 and subsequent years; feed grain acreage considered wheat acreage and wheat acreage considered feed grain acreage
Effective with the 1964 crop, during any year in which an acreage diversion program is in effect for feed grains, the Secretary shall, notwithstanding any other provision of law, permit producers of feed grains to have acreage devoted to the production of feed grains considered as devoted to the production of wheat and producers of wheat to have acreage devoted to the production of wheat considered as devoted to the production of feed grains to such extent and subject to such terms and conditions as the Secretary determines will not impair the effective operation of the program for feed grains or wheat. In establishing terms and conditions for permitting wheat to be planted in lieu of oats and rye, the Secretary may take into account the number of feed units per acre of wheat in relation to the number of feed units per acre of oats and rye.
(
Amendments
1965—
Codification
Section was enacted as part of the Food and Agriculture Act of 1962, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
§1339d. Hay production on set-aside or diverted acreage; storage; emergency use; loans
(a) Notwithstanding any other provision of law, the Secretary shall permit any producer who is participating in the wheat program under title IV of this Act, in the feed grain program under title V of this Act, or in the cotton program under title VI of this Act, in any year in which an acreage diversion or set-aside program is in effect, under any such program in which such producer is participating, subject to the conditions prescribed in subsection (b) of this section, to plant and harvest hay from 25 per centum of the acreage on the farm diverted from production under such programs or twenty-five acres, whichever is greater.
(b) Any producer who elects to plant and harvest hay on diverted or set aside acreage pursuant to this section shall first agree not to use any such hay harvested from such acreage unless authorized to do so by the Secretary.
(c) When any diverted or set aside acreage has been planted and harvested under authority of this section, the hay harvested therefrom shall be baled and stored in sealed storage on the farm in accordance with such regulations as the Secretary may prescribe and shall be available only for use during periods of emergency declared by the Secretary. In order to avoid deterioration of such hay stored on the farm for emergency purposes pursuant to this section, the Secretary may permit such hay to be removed and used or sold from time to time so long as an amount of hay equal to the amount removed is previously placed in storage and sealed.
(d) Any farmer who has hay stored on his farm for emergency purposes pursuant to this section may remove such hay from storage and use it whenever the Secretary has (1) designated as an emergency area the area in which such farm is located, and (2) specifically authorized the use of emergency hay by farmers in the area.
(e) The Secretary of Agriculture is authorized to make or guarantee loans to farmers, both tenants and landowners, to assist such farmers in the construction of storage facilities on the farm for the storage of emergency hay pursuant to the provisions of this section if such farmers are unable to obtain loans from commercial sources at reasonable rates and on reasonable terms and conditions. Loans made by the Secretary under this subsection shall be made at the current rate of interest for periods not exceeding ten years, and on such other terms and conditions as the Secretary may prescribe.
(
References in Text
The wheat program under title IV of this Act, the feed grain program under title V of this Act, and the cotton program under title VI of this Act, referred to in subsec. (a), mean the programs for such crops as set out in the Agricultural Act of 1970,
Codification
Section was enacted as part of the Agricultural Act of 1970, and not as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
§1340. Supplemental provisions relating to wheat marketing quotas; marketing penalty for rice; crop loans on cotton, wheat, rice, tobacco, and peanuts
Notwithstanding the provisions of the Agricultural Adjustment Act of 1938, as amended [
(1) The farm marketing quota for any crop of wheat shall be the actual production of the acreage planted to such crop of wheat on the farm less the farm marketing excess. The farm marketing excess shall be an amount equal to twice the projected farm yield multiplied by the number of acres of such crop of wheat on the farm in excess of the farm acreage allotment for such crop unless the producer, in accordance with regulations issued by the Secretary and within the time prescribed therein, establishes to the satisfaction of the Secretary the actual production of such crop of wheat on the farm. If such actual production is so established, the farm marketing excess shall be an amount equal to the actual production of the number of acres of wheat on the farm in excess of the farm acreage allotment for such crop. In determining the farm marketing quota and farm marketing excess, any acreage of wheat remaining after the date prescribed by the Secretary for the disposal of excess acres of wheat shall be included as acreage of wheat on the farm, and the production thereof shall be appraised in such manner as the Secretary determines will provide a reasonably accurate estimate of such production. Any acreage of wheat disposed of in accordance with regulations issued by the Secretary prior to such date as may be prescribed by the Secretary shall be excluded in determining the farm marketing quota and farm marketing excess. Self-seeded (volunteer) wheat shall be included in determining the acreage of wheat. Marketing quotas for any marketing year shall be in effect with respect to wheat harvested in the calendar year in which such marketing year begins notwithstanding that the wheat is marketed prior to the beginning of such marketing year.
(2) Whenever farm marketing quotas are in effect with respect to any crop of wheat, the producers on a farm shall be subject to a penalty on the farm marketing excess of wheat at a rate per bushel equal to 65 per centum of the parity price per bushel of wheat as of May 1 of the calendar year in which the crop is harvested. Each producer having an interest in the crop of wheat on any farm for which a farm marketing excess of wheat is determined shall be jointly and severally liable for the entire amount of the penalty on the farm marketing excess.
(3) The farm marketing excess for wheat shall be regarded as available for marketing, and the penalty and the storage amount or amounts to be delivered to the Secretary of the commodity shall be computed upon twice the normal production of the excess acreage. Where, upon the application of the producer for an adjustment of penalty or of storage, it is shown to the satisfaction of the Secretary that the actual production of the excess acreage is less than twice the normal production thereof, the difference between the amount of the penalty or storage as computed upon the basis of twice the normal production and as computed upon the basis of actual production shall be returned to or allowed the producer. The Secretary shall issue regulations under which the farm marketing excess of the commodity for the farm may be stored or delivered to him. Upon failure to store or deliver to the Secretary the farm marketing excess within such time as may be determined under regulations prescribed by the Secretary, the penalty computed as aforesaid shall be paid by the producer. Any wheat delivered to the Secretary hereunder shall become the property of the United States and shall be disposed of by the Secretary for relief purposes in the United States or in foreign countries or in such other manner as he shall determine will divert it from the normal channels of trade and commerce.
(4) Until the producers on any farm store, deliver to the Secretary, or pay the penalty on, the farm marketing excess of any crop of wheat, the entire crop of wheat produced on the farm and any subsequent crop of wheat subject to marketing quotas in which the producer has an interest shall be subject to a lien in favor of the United States for the amount of the penalty.
(5) The penalty upon wheat stored shall be paid by the producer at the time, and to the extent, of any depletion in the amount of the commodity so stored, except depletion resulting from some cause beyond the control of the producer.
(6) Whenever the planted acreage of the then current crop of wheat on any farm is less than the farm acreage allotment for such commodity, the total amount of the commodity from any previous crops required to be stored in order to postpone or avoid payment of penalty shall be reduced by that amount which is equal to the normal production of the number of acres by which the farm acreage allotment exceeds the planted acreage. The provisions of section 326(b) and (c) of the Act [
(7) Until the farm marketing excess of wheat is stored or delivered to the Secretary or the penalty thereon is paid, each bushel of the commodity produced on the farm which is sold by the producer to any person within the United States shall be subject to the penalty as specified in paragraph (2) of this section. Such penalty shall be paid by the buyer, who may deduct an amount equivalent to the penalty from the price paid to the producer. If the buyer fails to collect such penalty, such buyer and all persons entitled to share in the wheat marketed from the farm or the proceeds thereof shall be jointly and severally liable for such penalty.
(8) The marketing penalty for rice produced in the calendar year in which any marketing year begins (if beginning with or after the 1941–1942 marketing year) shall be at a rate equal to 50 per centum of the basic rate of the loan for cooperators for such marketing year under section 302 of the Act [
(9) Omitted.
(10) The provisions of this section are amendatory of and supplementary to the Act, and all provisions of law applicable in respect of marketing quotas and loans under such Act as so amended and supplemented shall be applicable, but nothing in this section shall be construed to amend or repeal sections 301(b)(6), 323(b), or 335(d) of the Act [
(11) The persons liable for the payment or collection of the penalty on any amount of wheat shall be liable also for interest thereon at the rate of 6 per centum per annum from the date the penalty becomes due until the date of payment of such penalty.
(12) If marketing quotas for wheat are not in effect for any marketing year, all previous marketing quotas applicable to wheat shall be terminated, effective as of the first day of such marketing year. Such termination shall not abate any penalty previously incurred by a producer or relieve any buyer of the duty to remit penalties previously collected by him.
(May 26, 1941, ch. 133,
References in Text
The Agricultural Adjustment Act of 1938, referred to in text, is act Feb. 16, 1938, ch. 30,
Section 302 of the Act, referred to in par. (8), which was classified to
Section 323(b) of the Act, referred to in par. (10), which was classified to
Section 335(d) of the Act, referred to in par. (10), which was classified to
Codification
Section was not enacted as part of the Agricultural Adjustment Act of 1938 which comprises this chapter.
Par. (9), which directed the Commodity Credit Corporation to make loans upon the 1941 to 1946 cotton, wheat, rice, tobacco, and peanut crops for which producers did not disapprove marketing quotas at the rate of 85% of parity to cooperators and, to noncooperators, at the rate of 60% of the rate specified for cooperators and limited to that amount of the commodity as would be subject to penalty if marketed by the noncooperators, was omitted from the Code.
Amendments
1965—Par. (1).
1962—Par. (1).
Par. (2).
Par. (3).
Par. (4).
Pars. (5), (6).
Par. (7).
Pars. (8) to (10).
Par. (11).
Par. (12).
1961—Par. (7).
1954—Act Aug. 28, 1954, amended section generally to make it inapplicable to corn.
1953—Act July 14, 1953, omitted penalty for marketing corn in excess of quotas and changed penalty for marketing wheat in excess of quotas from 50 per centum of basic loan rate on commodity for cooperators to 45 per centum of parity price.
1949—Par. (9). Act Aug. 29, 1949, struck out "cotton and" after "penalty for".
1941—Par. (10). Act Dec. 26, 1941, ch. 626, substituted "1941, 1942, 1943, 1944, 1945 and 1946 crops of the commodities cotton, corn, wheat, rice, tobacco and peanuts" for "1941 crop of the commodities cotton, corn, wheat, rice, or tobacco" and "for the marketing year beginning in the calendar year in which such crop is harvested" for "marketing year beginning in 1941."
Par. (12). Act Dec. 26, 1941, ch. 636, added par. (12).
Effective Date of 1962 Amendment
Amendment by section 319 of
Effective Date of 1953 Amendment
Amendment by act July 14, 1953, effective with respect to 1954 and subsequent crops of wheat, see section 5 of act July 14, 1953, set out as a note under
Transfer of Functions
Administration of program of Commodity Credit Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, §501, eff. July 16, 1946, 11 F.R. 7877,
Exceptions From Transfer of Functions
Functions of Corporations of Department of Agriculture, boards of directors and officers of such corporations; Advisory Board of Commodity Credit Corporation; and Farm Credit Administration or any agency, officer or entity of, under, or subject to supervision of said Administration excepted from functions of officers, agencies, and employees transferred to Secretary of Agriculture by 1953 Reorg. Plan No. 2, §1, eff. June 4, 1953, 18 F.R. 3219,
Inapplicability of Section
Section inapplicable to crops of wheat planted for harvest in calendar years 2014 through 2018, see
Section inapplicable to crops of wheat planted for harvest in calendar years 2008 through 2012, see
Section inapplicable to crops of wheat planted for harvest in calendar years 2002 through 2007, see
Section inapplicable to crops of wheat planted for harvest in calendar years 1996 through 2002, see
subpart iv—marketing quotas—cotton
§1341. Legislative findings
American cotton is a basic source of clothing and industrial products used by every person in the United States and by substantial numbers of people in foreign countries. American cotton is sold on a world-wide market and moves from the places of production almost entirely in interstate and foreign commerce to processing establishments located throughout the world at places outside the State where the cotton is produced.
Fluctuations in supplies of cotton and the marketing of excessive supplies of cotton in interstate and foreign commerce disrupt the orderly marketing of cotton in such commerce with consequent injury to and destruction of such commerce. Excessive supplies of cotton directly and materially affect the volume of cotton moving in interstate and foreign commerce and cause disparity in prices of cotton and industrial products moving in interstate and foreign commerce with consequent diminution of the volume of such commerce in industrial products.
The conditions affecting the production and marketing of cotton are such that, without Federal assistance, farmers, individually or in cooperation, cannot effectively prevent the recurrence of excessive supplies of cotton and fluctuations in supplies, cannot prevent indiscriminate dumping of excessive supplies on the Nation-wide and foreign markets, cannot maintain normal carry-overs of cotton, and cannot provide for the orderly marketing of cotton in interstate and foreign commerce.
It is in the interest of the general welfare that interstate and foreign commerce in cotton be protected from the burdens caused by the marketing of excessive supplies of cotton in such commerce, that a supply of cotton be maintained which is adequate to meet domestic consumption and export requirements in years of drought, flood, and other adverse conditions as well as in years of plenty, and that the soil resources of the Nation be not wasted in the production of excessive supplies of cotton.
The provisions of this subpart affording a cooperative plan to cotton producers are necessary and appropriate to prevent the burdens on interstate and foreign commerce caused by the marketing in such commerce of excessive supplies, and to promote, foster, and maintain an orderly flow of an adequate supply of cotton in such commerce.
(Feb. 16, 1938, ch. 30, title III, §341,
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
1947 Marketing Quotas and Acreage Allotments
Joint Res. July 24, 1946, ch. 616,
§1342. National marketing quota; proclamation; amount; date of proclamation
Whenever during any calendar year the Secretary determines that the total supply of cotton for the marketing year beginning in such calendar year will exceed the normal supply for such marketing year, the Secretary shall proclaim such fact and a national marketing quota shall be in effect for the crop of cotton produced in the next calendar year. The Secretary shall also determine and specify in such proclamation the amount of the national marketing quota in terms of the number of bales of cotton (standard bales of five hundred pounds gross weight) adequate, together with (1) the estimated carry-over at the beginning of the marketing year which begins in the next calendar year and (2) the estimated imports during such marketing year, to make available a normal supply of cotton: Provided, That beginning with the 1961 crop, the national marketing quota shall be not less than a number of bales equal to the estimated domestic consumption and estimated exports (less estimated imports) for the marketing year for which the quota is proclaimed, except that the Secretary shall make such adjustment in the amount of such quota as he determines necessary after taking into consideration the estimated stocks of cotton in the United States (including the qualities of such stocks) and stocks in foreign countries which would be available for the marketing year for which the quota is being proclaimed if no adjustment of such quota is made hereunder, to assure the maintenance of adequate but not excessive stocks in the United States to provide a continuous and stable supply of the different qualities of cotton needed in the United States and in foreign cotton consuming countries, and for purposes of national security; but the Secretary, in making such adjustments, may not reduce the national marketing quota for any year below (i) one million bales less than the estimated domestic consumption and estimated exports for the marketing year for which such quota is being proclaimed, or (ii) ten million bales, whichever is larger. Such proclamation shall be made not later than October 15 of the calendar year in which such determination is made. Notwithstanding the foregoing provisions of this section, the national marketing quota for cotton for 1957 and 1958 shall be not less than the number of bales required to provide a national acreage allotment for 1957 and 1958 equal to the national acreage allotment for 1956: Provided, That if the acreage allotment for any State for 1957 or 1958 is less than its allotment for the preceding year by more than 1 per centum, such State allotment shall be increased so that the reduction shall not exceed 1 per centum per annum, and the acreage required for such increase shall be in addition to the national acreage allotment for such year. Additional acreage apportioned to a State for 1957 or 1958 under the foregoing proviso shall not be taken into account in establishing future State allotments. Notwithstanding any other provision of this chapter, the national marketing quota for upland cotton for 1959 and subsequent years shall be not less than the number of bales required to provide a national acreage allotment for each such year of sixteen million acres.
(Feb. 16, 1938, ch. 30, title III, §342,
Amendments
1958—
1956—Act May 28, 1956, provided that national marketing quota for cotton for 1957 and 1958 shall not be less than the number of bales required to provide a national acreage allotment for 1957 and 1958 equal to national acreage allotment for 1956.
1949—Act Aug. 29, 1949, amended section generally to set up a national marketing quota and to provide for amount and proclamation of such quota.
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Preliminary Allotments for 1996 Crop of Upland Cotton
Preliminary Allotments for 1991 Crop of Upland Cotton
Preliminary Allotments for 1986 Crop of Upland Cotton
Preliminary Allotments for 1982 Crop of Upland Cotton
§1342a. National cotton production goal
The Secretary shall, not later than November 15, of the calendar years 1970 through 1976 proclaim a national cotton production goal for the 1971 and subsequent crops of upland cotton. The national cotton production goal for any year shall be the number of bales of upland cotton (standard bales of four hundred and eighty pounds net weight) equal to the estimated domestic consumption and estimated exports for the marketing year beginning in the calendar year for which such national cotton production goal is proclaimed, plus an allowance of not less than 5 per centum of such estimated consumption and estimated exports for market expansion except that the Secretary shall make such adjustments in the amount of such production goal as he determines necessary after taking into consideration the estimated stocks of upland cotton in the United States (including the qualities of such stocks) and stocks in foreign countries, which would be available for the marketing year, to assure the maintenance of adequate but not excessive carryover stocks in the United States (not less than 50 per centum of the average offtake for the three preceding marketing years) to provide a continuous and stable supply of the different qualities of upland cotton needed in the United States and in foreign cotton consuming countries and, in addition, to provide an adequate reserve for purposes of national security.
(Feb. 16, 1938, ch. 30, title III, §342a, as added
Amendments
1973—
Effective Date
Inapplicability of Section
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
§1343. Referendum
Not later than December 15 following the issuance of the marketing quota proclamation provided for in
(Feb. 16, 1938, ch. 30, title III, §343,
Codification
Provision that if marketing quotas were proclaimed for the 1950 crop, farmers eligible to vote in the referendum with respect to such crop were to be those farmers who had produced cotton in the 1948 calendar year was omitted from the Code.
Amendments
1985—
1981—
1949—Act Aug. 29, 1949, amended section generally by providing for a secret referendum. Former provisions of this section are now covered by
Subsec. (a). Act Oct. 31, 1949, repealed amendatory provisions of act July 3, 1948.
1948—Subsec. (a). Act July 3, 1948, required Secretary to take imports into consideration in determining acreage allotments for purposes of marketing quotas.
1939—Subsec. (b). Act July 26, 1939, inserted last sentence.
1938—Subsec. (c). Act Apr. 7, 1938, substituted "for any year" for "for 1938 and 1939".
Effective Date of 1948 Amendment
Amendment by act July 3, 1948, effective Jan. 1, 1950, see section 303 of act July 3, 1948, set out as a note under
Inapplicability of Section
Section inapplicable to 1984 and subsequent crops of extra long staple cotton, see section 3 of
Section inapplicable to 2014 through 2018 crops of covered commodities, cotton, and sugar and inapplicable to milk during period beginning Feb. 7, 2014, through Dec. 31, 2018, see
Section inapplicable to 2008 through 2012 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning June 18, 2008, through Dec. 31, 2012, see
Section inapplicable to 2002 through 2007 crops of covered commodities, peanuts, and sugar and inapplicable to milk during period beginning May 13, 2002, through Dec. 31, 2007, see
Section inapplicable to 1996 through 2001 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see
Section inapplicable to 1991 through 1995 crops of upland cotton, see section 502 of
Section inapplicable to 1986 through 1990 crops of upland cotton, see section 502 of
Section inapplicable to 1982 through 1985 crops of upland cotton, see section 501 of
Section inapplicable to 1978 through 1981 crops of upland cotton, see section 601 of
§1344. Apportionment of national acreage allotments
(a) Basis
Whenever a national marketing quota is proclaimed under
(b) Apportionment among States for year 1953 and subsequent years; adjustment; national acreage reserve
The national acreage allotment for cotton for 1953 and subsequent years shall be apportioned to the States on the basis of the acreage planted to cotton (including the acreage regarded as having been planted to cotton under the provisions of Public Law 12, Seventy-ninth Congress) during the five calendar years immediately preceding the calendar year in which the national marketing quota is proclaimed, with adjustments for abnormal weather conditions during such period: Provided, That there is established a national acreage reserve consisting of three hundred and ten thousand acres which shall be in addition to the national acreage allotment; and such reserve shall be apportioned to the States on the basis of their needs for additional acreage for establishing minimum farm allotments under subsection (f)(1), as determined by the Secretary without regard to State and county acreage reserves (except that the amount apportioned to Nevada shall be one thousand acres). For the 1960 and succeeding crops of cotton, the needs of States (other than Nevada) for such additional acreage for such purpose may be estimated by the Secretary, after taking into consideration such needs as determined or estimated for the preceding crop of cotton and the size of the national acreage allotment for such crop. The additional acreage so apportioned to the State shall be apportioned to the counties on the basis of the needs of the counties for such additional acreage for such purpose, and added to the county acreage allotment for apportionment to farms pursuant to subsection (f) of thi