SUBCHAPTER II—BASIC AGRICULTURAL COMMODITIES
§1441. Price support levels
The Secretary of Agriculture (hereinafter called the "Secretary") is authorized and directed to make available through loans, purchases, or other operations, price support to cooperators for any crop of any basic agricultural commodity, if producers have not disapproved marketing quotas for such crop, at a level not in excess of 90 per centum of the parity price of the commodity nor less than the level provided in subsections (a), (b), and (c) as follows:
| (a) For corn and wheat, if the supply percentage as of the beginning of the marketing year is: | The level of support shall be not less than the following percentage of the parity price: |
|---|
| Not more than 102 |
90 |
| More than 102 but not more than 104 |
89 |
| More than 104 but not more than 106 |
88 |
| More than 106 but not more than 108 |
87 |
| More than 108 but not more than 110 |
86 |
| More than 110 but not more than 112 |
85 |
| More than 112 but not more than 114 |
84 |
| More than 114 but not more than 116 |
83 |
| More than 116 but not more than 118 |
82 |
| More than 118 but not more than 120 |
81 |
| More than 120 but not more than 122 |
80 |
| More than 122 but not more than 124 |
79 |
| More than 124 but not more than 126 |
78 |
| More than 126 but not more than 128 |
77 |
| More than 128 but not more than 130 |
76 |
| More than 130 |
75 |
For rice of the 1959 and 1960 crops, the level of support shall be not less than 75 per centum of the parity price. For rice of the 1961 crop the level of support shall be not less than 70 per centum of the parity price. For the 1962 and subsequent crops of rice the level of support shall be not less than 65 per centum of the parity price.
| (b) For cotton, if the supply percentage as of the beginning of the marketing year is: | The level of support shall be not less than the following percentage of the parity price: |
|---|
| Not more than 108 |
90 |
| More than 108 but not more than 110 |
89 |
| More than 110 but not more than 112 |
88 |
| More than 112 but not more than 114 |
87 |
| More than 114 but not more than 116 |
86 |
| More than 116 but not more than 118 |
85 |
| More than 118 but not more than 120 |
84 |
| More than 120 but not more than 122 |
83 |
| More than 122 but not more than 124 |
82 |
| More than 124 but not more than 125 |
81 |
| More than 125 but not more than 126 |
80 |
| More than 126 but not more than 127 |
79 |
| More than 127 but not more than 128 |
78 |
| More than 128 but not more than 129 |
77 |
| More than 129 but not more than 130 |
76 |
| More than 130 |
75 |
(c) Notwithstanding the foregoing provisions of this section—
(1) if producers have not disapproved marketing quotas for such crop, the level of support to cooperators shall be 90 per centum of the parity price for the 1950 crop of any basic agricultural commodity for which marketing quotas or acreage allotments are in effect;
(2) if producers have not disapproved marketing quotas for such crop, the level of support to cooperators shall be not less than 80 per centum of the parity price for the 1951 crop of any basic agricultural commodity for which marketing quotas or acreage allotments are in effect;
(3) the level of price support to cooperators for any crop of a basic agricultural commodity for which marketing quotas have been disapproved by producers shall be 50 per centum of the parity price of such commodity;
(4) Repealed. Oct. 31, 1949, ch. 792, title I, §104(b)(3), as added Aug. 28, 1958, Pub. L. 85–835, title II, §201, 72 Stat. 994;
(5) price support may be made available to noncooperators at such levels, not in excess of the level of price support to cooperators, as the Secretary determines will facilitate the effective operation of the program.1
(6) Except 2 as provided in subsection (c) and section 1422 of this title, the level of support to cooperators shall be not more than 90 per centum and not less than 82½ per centum of the parity price for the 1955 crop of any basic agricultural commodity with respect to which producers have not disapproved marketing quotas; within such limits, the minimum level of support shall be fixed as provided in subsections (a) and (b) of this section.1
(7) Where 2 a State is designated under section 1335(e) of this title, as outside the commercial wheat-producing area for any crop of wheat, the level of price support for wheat to cooperators in such State for such crop of wheat shall be 75 per centum of the level of price support to cooperators in the commercial wheat-producing area.
(d) Rice.—The Secretary shall make available to producers of each crop of rice on a farm price support at a level that is not less than 50 percent, or more than 90 percent of the parity price for rice as the Secretary determines will not result in increasing stocks of rice to the Commodity Credit Corporation.
(Oct. 31, 1949, ch. 792, title I, §§101, 104(b)(3), 63 Stat. 1051; July 17, 1952, ch. 933, §§2, 3(1), 66 Stat. 759; Aug. 28, 1954, ch. 1041, title II, §§201, 202, 68 Stat. 899; Pub. L. 85–28, Apr. 25, 1957, 71 Stat. 27; Pub. L. 85–497, July 2, 1958, 72 Stat. 296; Pub. L. 85–835, title II, §201, title III, §302(a), Aug. 28, 1958, 72 Stat. 993, 994; Pub. L. 86–389, §2, Feb. 20, 1960, 74 Stat. 7; Pub. L. 90–475, §5, Aug. 11, 1968, 82 Stat. 702; Pub. L. 94–214, title I, §102, Feb. 16, 1976, 90 Stat. 183; Pub. L. 95–113, title VI, §607, title VII, §702, Sept. 29, 1977, 91 Stat. 940; Pub. L. 96–176, Dec. 31, 1979, 93 Stat. 1290; Pub. L. 96–213, §4(a), Mar. 18, 1980, 94 Stat. 119; Pub. L. 96–365, title II, §201(a), Sept. 26, 1980, 94 Stat. 1319; Pub. L. 97–98, title V, §508, title VI, §602, Dec. 22, 1981, 95 Stat. 1242; Pub. L. 97–253, title I, §125, Sept. 8, 1982, 96 Stat. 771; Pub. L. 98–88, §2, Aug. 26, 1983, 97 Stat. 494; Pub. L. 98–258, title IV, §§401, 402, Apr. 10, 1984, 98 Stat. 135; Pub. L. 99–198, title VI, §602, Dec. 23, 1985, 99 Stat. 1427; Pub. L. 104–127, title I, §171(b)(3), Apr. 4, 1996, 110 Stat. 938; Pub. L. 107–171, title I, §1310(a)(2)(A), May 13, 2002, 116 Stat. 182; Pub. L. 108–357, title VI, §612(b), Oct. 22, 2004, 118 Stat. 1523.)
Editorial Notes
References in Text
Subsec. (e) of section 1335 of this title, referred to in subsec. (c)(7), was eliminated and other provisions substituted by Pub. L. 87–703, title III, §315, Sept. 27, 1962, 76 Stat. 621.
Amendments
2004—Subsec. (a). Pub. L. 108–357, §612(b)(1), substituted "corn" for "tobacco (except as otherwise provided herein), corn," in first sentence.
Subsec. (c). Pub. L. 108–357, §612(b)(2), (4), redesignated subsec. (d) as (c) and struck out former subsec. (c), which related to level of support for tobacco if marketing quotas are in effect.
Subsec. (d). Pub. L. 108–357, §612(b)(4), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(3). Pub. L. 108–357, §612(b)(3), struck out ", except tobacco," after "agricultural commodity" and "and no price support shall be made available for any crop of tobacco for which marketing quotas have been disapproved by producers;" at end.
Subsec. (e). Pub. L. 108–357, §612(b)(4), redesignated subsec. (e) as (d).
Subsecs. (g) to (i). Pub. L. 108–357, §612(b)(2), directed the repeal of subsecs. (g) to (i), which related to temporary programs for 1976 and 1977 crops of rice, 1978 through 1981 crops of rice, and 1982 through 1985 crops of rice, respectively. See 1976, 1977, and 1981 Amendment notes below.
2002—Subsec. (b). Pub. L. 107–171 struck out "and peanuts" after "cotton".
1996—Subsec. (e). Pub. L. 104–127 added subsec. (e).
1985—Subsec. (i)(1). Pub. L. 99–198 temporarily redesignated existing provisions as subpar. (A) and added subpars. (B) to (D). See Effective and Termination Dates of 1985 Amendment note below.
1984—Subsec. (i)(2)(C). Pub. L. 98–258, §401, substituted "and $11.90 per hundredweight for the 1984 and 1985 crops" for "$11.90 per hundredweight for the 1984 crop, and $12.40 per hundredweight for the 1985 crop".
Subsec. (i)(5)(A). Pub. L. 98–258, §402(1), substituted "third, fourth, and fifth" for "third and fourth" after "Notwithstanding any other provision of law, except as provided in the".
Pub. L. 98–258, §402(2), inserted sentence providing: "For the 1985 crop of rice, if the Secretary estimates that the quantity of rice on hand in the United States on July 31, 1985 (not including any quantity of rice produced in the United States during calendar year 1985), will exceed twenty-five million hundredweight, the Secretary shall provide for a combination of an acreage limitation program as described under this subparagraph and a land diversion program as described under subparagraph (B) under which the acreage planted to rice for harvest on the farm would be limited to the acreage base for the farm reduced by a total of not less than 25 per centum, consisting of a reduction of 20 per centum under the acreage limitation program and a reduction under the land diversion program equal to the difference between the total reduction for the farm and the 20 per centum reduction under the acreage limitation program."
Pub. L. 98–258, §402(3), substituted "1983 and 1985 crops of rice" for "1983 crop of rice" after "As a condition of eligibility for loans, purchases, and payments on the".
Subsec. (i)(5)(B). Pub. L. 98–258, §402(4), inserted sentence providing that if the Secretary implements a land diversion program for the 1985 crop of rice under the provisions of subparagraph (A), the Secretary shall make crop retirement and conservation payments to any producer of the 1985 crop of rice whose acreage planted to rice for harvest on the farm is reduced so that it does not exceed the rice acreage base for the farm less an amount equivalent to the percentage of the acreage base specified by the Secretary, but not less than 5 per centum, in addition to the reduction required under the acreage limitation program under subparagraph (A), and who devotes to approved conservation uses an acreage of cropland equivalent to the reduction required from the rice acreage base under this subparagraph.
Pub. L. 98–258, §402(5), substituted "Diversion payments made to producers under this subparagraph shall be made in an amount computed by multiplying" for "Such payments shall be made in an amount computed by multiplying".
Pub. L. 98–258, §402(6), substituted "$3.00 per hundredweight for the 1983 crop of rice, except that the rate may be reduced up to 10 per centum if the Secretary determines that the same program objective could be achieved with the lower rate, and at not less than $2.70 per hundredweight for the 1985 crop of rice" for "$3.00 per hundredweight, except that the rate may be reduced up to 10 per centum if the Secretary determines that the same program objective could be achieved with the lower rate" after "The diversion payment rate shall be established by the Secretary at not less than" and inserted a proviso that if the Secretary estimates that the quantity of rice on hand in the United States on July 31, 1985 (not including any quantity of rice produced in the United States during calendar year 1985), will exceed (I) thirty-five million hundredweight, such rate shall be established by the Secretary at not less than $3.25 per hundredweight, and (II) forty-two million five hundred thousand hundredweight, such rate shall be established by the Secretary at not less than $3.50 per hundredweight.
Pub. L. 98–258, §402(7), substituted "1983 and 1985 crops" for "1983 crop" after "The Secretary shall make not less than 50 per centum of any payments under this subparagraph to producers of the".
1983—Subsec. (f). Pub. L. 98–88 struck out subsec. (f) which read as follows: "The provisions of this Act relating to price support for cotton shall apply severally to (1) American upland cotton and (2) extra long staple cotton described in subsection (a) of this section and ginned as required by subsection (e) of section 1347 of this title, except that, notwithstanding any other provision of this Act, price support shall be made available for the 1982 and each subsequent crop of extra long staple cotton through nonrecourse loans as provided in this subsection. If producers have not disapproved marketing quotas for any crop of extra long staple cotton, price support loans shall be made available to cooperators for such crop at a level which is not less than 75 per centum or more than 125 per centum in excess of the loan level established for Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) of such crop at average location in the United States. If producers have disapproved marketing quotas for any crop of extra long staple cotton, price support loans shall be made available to cooperators for such crop at a level which shall be 50 per centum in excess of the loan level established for Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) of such crop at average location in the United States. Nothing contained herein shall affect the authority of the Secretary to make price support available for extra long staple cotton in accordance with section 1422 of this title." See section 1444(h) of this title.
1982—Subsec. (i)(5)(A). Pub. L. 97–253, §125(1)–(3), substituted "Notwithstanding any other provision of law, except as provided in the third and fourth sentences of this paragraph, the" for "Notwithstanding any other provision of this subsection, the", following second sentence, inserted provision that for the 1983 crop of rice, the Secretary shall provide for a combination of (i) an acreage limitation program as described under this subparagraph and (ii) a diversion program as described under subpar. (B) under which the acreage planted to rice for harvest on the farm would be limited to the acreage base for the farm reduced by a total of 20 per centum, consisting of a reduction of 15 per centum under the acreage limitation program and a reduction of 5 per centum under the diversion program, and that as a condition of eligibility for loans, purchases, and payments on the 1983 crop of rice, the producers on a farm must comply with the terms and conditions of the combined acreage limitation and diversion program, and, following ninth sentence, inserted provision that notwithstanding the other provisions of this subparagraph, the acreage base to be used for the farm under the program for the 1983 crop of rice shall be the same as the acreage base applicable to the farm under the acreage limitation program for the 1982 crop, adjusted to reflect established crop-rotation practices and to reflect such other factors as the Secretary determines should be considered in determining a fair and equitable base.
Subsec. (i)(5)(B). Pub. L. 97–253, §125(4), inserted provision requiring the Secretary to implement a land diversion program for the 1983 crop of rice under which the Secretary shall make crop retirement and conservation payments to producers making a reduction additional to that required under subpar. (A) and devoting an equivalent acreage of cropland to conservation purposes, and provisions for the computation of payments, and establishment of payment rates by the Secretary, as well as payment by the Secretary of not less than 50 per centum of any payments under this subparagraph to 1983 crop producers as soon as practicable after any such producer enters into a land diversion contract with the Secretary and in advance of any determination of performance, but in no case prior to Oct. 1, 1982, and repayment of advances, with interest, in the event of noncompliance by such producer with such contract.
1981—Subsec. (f). Pub. L. 97–98, §508, substituted provisions authorizing price support for extra long staple cotton for the 1982 crop and each subsequent crop through nonrecourse loans as provided in this subsection and prescribing the level of price support loans available to cooperators if producers have not, or have, disapproved marketing quotas for any crop of extra long staple cotton as specified percentages of the loan level established for Strict Low Middling one and one-sixteenth inch upland cotton, micronaire 3.5 through 4.9, of such crop at average location in the United States for provisions authorizing price support for extra long staple cotton to cooperators for the 1980 crop and each subsequent crop based on the loan level established for Strict Low Middling one and one-sixteenth inch upland cotton and adjusted by the specified factors, provisions determining the computation of acreage allotments of extra long staple cotton, provisions authorizing the Secretary to establish the price-support payment factor, provisions authorizing the manner and mode of payments authorized under this section, and provisions making operative subsec. (d)(3) of this section upon the disapproval by producers of the national marketing quota established pursuant to section 1347 of this title.
Subsec. (i). Pub. L. 97–98, §602, temporarily added subsec. (i). See Effective and Termination Dates of 1981 Amendment note below.
1980—Subsec. (h)(4)(B). Pub. L. 96–365, §201(a)(1), substituted "Except as otherwise provided in subparagraph (D) of this paragraph, effective with respect to the 1978 through 1981 crops of rice" for "Effective only with respect to the 1978, 1979, and 1980 crops of rice".
Pub. L. 96–213, §4(a)(1), substituted "1978, 1979, and 1980 crops of rice" for "1978 and 1979 crops of rice".
Subsec. (h)(4)(C). Pub. L. 96–365, §201(a)(2), substituted "Except as otherwise provided in subparagraph (D) of this paragraph, effective with respect to the 1978 through 1981 crops of rice" for "Effective only with respect to the 1978, 1979, and 1980 crops of rice".
Pub. L. 96–213, §4(a)(2), substituted "1978, 1979, and 1980 crops of rice" for "1978 and 1979 crops of rice".
Subsec. (h)(4)(D), (E). Pub. L. 96–365, §201(a)(3), added subpar. (D) and redesignated former subpar. (D) as (E).
1979—Subsec. (f). Pub. L. 96–176 substituted "1980" for "1968", "85" for "50", "135" for "100", and "55" for "65".
1977—Subsec. (f). Pub. L. 95–113, §607, substituted "Strict Low Middling one and one-sixteenth inch" for "Middling one-inch".
Subsec. (h). Pub. L. 95–113, §702, temporarily added subsec. (h). See Effective and Termination Dates of 1977 Amendment note below.
1976—Subsec. (g). Pub. L. 94–214 temporarily added subsec. (g). See Effective and Termination Dates of 1976 Amendment note below.
1968—Subsec. (f). Pub. L. 90–475 substituted provisions authorizing price support for extra long staple cotton for the 1968 crop and each subsequent crop based on the loan level established for Middling one-inch upland cotton and adjusted by the specified factors, provisions determining the computation of acreage allotments of extra long staple cotton, provisions authorizing the Secretary to establish the price-support payment factor, and provisions authorizing the manner and mode of payments authorized under this section, for provisions authorizing price support for extra long staple cotton for the 1957 crop and each subsequent crop based on the parity price for the 1956 crop and adjusted by certain specified factors, with a minimum price support level of not less than 60 percent of the parity price, and provisions making operative subsec. (d)(3) of this section upon the disapproval by producers of the national marketing quota established pursuant to section 1347 of this title.
1960—Subsec. (e). Pub. L. 86–389 repealed subsec. (e) which provided that: "Notwithstanding any of the provisions of this Act, section 2 of the Act of July 28, 1945 (59 Stat. 506) shall continue in effect."
1958—Subsec. (a). Pub. L. 85–835, §302(a), substituted "and wheat" for "wheat, and rice" and added par. requiring rice price support levels to be not less than 75, 70, and 65 per centum of parity for 1959 and 1960, 1961, and 1962 and subsequent crop years, respectively.
Subsec. (d)(4). Act Oct. 31, 1949, §104(b)(3), as added Pub. L. 85–835, §201, repealed par. (4) which provided for price support level for corn to cooperators outside the commercial corn-producing area at 75 per centum of the level of price support to cooperators in the commercial corn-producing area.
Subsec. (f). Pub. L. 85–497 provided that the level of support for crops of extra long staple cotton shall not exceed the same per centum of the parity price as for the 1956 crop, required such level to be determined after consideration of the factors specified in section 1421(b) of this title and the price levels for similar qualities of cotton produced outside the United States, and established a minimum of not less than 60 per centum of the parity price as the level for extra long staple cotton.
1957—Subsec. (f). Pub. L. 85–28 set the price support for extra long staple cotton for 1957 and each subsequent crop at same per centum of parity price as for 1956 crop.
1954—Subsec. (d)(6). Act Aug. 28, 1954, §201(a), provided for flexible price supports.
Subsec. (d)(7). Act Aug. 28, 1954, §201(b), added par. (7).
Subsec. (f). Act Aug. 28, 1954, §202, set the price support for long staple cotton at the minimum determined in accordance with the schedule in subsec. (b) of this section.
1952—Subsec. (d)(6). Act July 17, 1952, §2, added par. (6).
Subsec. (f). Act July 17, 1952, §3(1), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–357 applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as an Effective Date note under section 518 of this title.
Effective and Termination Dates of 1985 Amendment
Pub. L. 99–198, title VI, §602, Dec. 23, 1985, 99 Stat. 1427, provided that the amendment made by section 602 is effective for the 1985 crop of rice.
Effective Date of 1983 Amendment
Pub. L. 98–88, §2, Aug. 26, 1983, 97 Stat. 494, provided that the amendment made by section 2 is effective beginning with the 1984 crop of extra long staple cotton.
Effective and Termination Dates of 1981 Amendment
Pub. L. 97–98, title V, §508, Dec. 22, 1981, 95 Stat. 1242, provided that the amendment made by section 508 is effective beginning with the 1982 crop of extra long staple cotton.
Pub. L. 97–98, title VI, §602, Dec. 22, 1981, 95 Stat. 1242, provided that the amendment made by section 602 is effective only for the 1982 through 1985 crops of rice.
Effective Date of 1979 Amendment
Pub. L. 96–176 provided that the amendment made by that section is effective with respect to 1980 and subsequent crops of extra long staple cotton.
Effective and Termination Dates of 1977 Amendment
Pub. L. 95–113, title VII, §702, Sept. 29, 1977, 91 Stat. 940, provided that the amendment made by section 702 is effective only for the 1978 through 1981 crops of rice.
Amendment by Pub. L. 95–113 effective Oct. 1, 1977, except as otherwise provided, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.
Effective and Termination Dates of 1976 Amendment
Pub. L. 94–214, title I, §102, Feb. 16, 1976, 90 Stat. 183, provided that the amendment made by section 102 is effective for the 1976 and 1977 crops of rice.
Effective Date of 1958 Amendment
Act Oct. 31, 1949, ch. 792, title I, §104(b)(3), as added by Pub. L. 85–835, title II, §201, Aug. 28, 1958, 72 Stat. 994, provided for repeal of subsec. (d)(4) of this section effective with the 1959 crop, to be operative as provided in section 1444a(b) of this title. See 1958 Referendum for Selection of Alternative Corn Program and Operative Status of Certain Provisions note set out under section 1444a of this title.
Pub. L. 85–835, title III, §302(a), Aug. 28, 1958, 72 Stat. 994, provided that the amendment made by section 302(a) is effective beginning with the 1959 crop.
Savings Provision
Amendment by sections 611 to 614 of Pub. L. 108–357 not to affect the liability of any person under any provision of law so amended with respect to the 2004 or an earlier crop of tobacco, see section 614 of Pub. L. 108–357, set out as a note under section 515 of this title.
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 9092(b)(1) of this title.
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 8782(b)(1) of this title.
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 7992(b)(1) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(A) of this title.
Pub. L. 101–624, title VIII, §808, Nov. 28, 1990, 104 Stat. 3478, provided that: "Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1991 through 1995 crops of peanuts."
Pub. L. 99–198, title VII, §707, Dec. 23, 1985, 99 Stat. 1441, provided that: "Section 101 of the Agricultural Act of 1949 (7 U.S.C. 1441) shall not be applicable to the 1986 through 1990 crops of peanuts."
Pub. L. 97–98, title VII, §707, Dec. 22, 1981, 95 Stat. 1256, provided that: "Section 101 of the Agricultural Act of 1949 [7 U.S.C. 1441] shall not be applicable to the 1982 through 1985 crops of peanuts."
Report on Trading of Rice Futures
Pub. L. 97–98, title VI, §603, Dec. 22, 1981, 95 Stat. 1248, required Secretary of Agriculture to submit a report to Congress evaluating the trading of rice futures on commodity exchanges by July 31, 1983.
Exemption of Disaster Payment Limitations Respecting 1977 Crops of Wheat, Feed Grains, Upland Cotton, and Rice
Term "payments" as used in subsec. (g)(13) of this section shall not include any part of any payment which is determined by the Secretary of Agriculture to represent compensation for disaster loss with respect to 1977 crops of wheat, feed grains, upland cotton, and rice, see Pub. L. 95–156, set out as a note under section 1307 of this title.
1963 Wheat Crop
Pub. L. 87–703, title III, §306, Sept. 27, 1962, 76 Stat. 615, required that price support for 1963 crop of wheat be made available as provided in section 1441 of this title with certain exceptions.
1962 Wheat Crop
Pub. L. 87–128, title I, §123, Aug. 8, 1961, 75 Stat. 297, required that price support for 1962 crop of wheat be made available as provided in section 1441 of this title with certain exceptions.
§1441–1. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §101A, as added Dec. 23, 1985, Pub. L. 99–198, title VI, §601, 99 Stat. 1419; amended Mar. 20, 1986, Pub. L. 99–260, §2(d), 100 Stat. 47; May 27, 1987, Pub. L. 100–45, §5, 101 Stat. 320; Dec. 22, 1987, Pub. L. 100–203, title I, §§1101(e), 1102(d), 1113(d), 101 Stat. 1330–2, 1330-3, 1330-10, related to loan rates, target prices, disaster payments, acreage limitation program, and land diversion. See Effective and Termination Dates note below.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates
Pub. L. 99–198, title VI, §601, Dec. 23, 1985, 99 Stat. 1419, provided that this section is effective only for the 1986 through 1990 crops of rice.
§1441–1a. Marketing certificates for rice
(a) Authority of Commodity Credit Corporation to issue negotiable marketing certificates
Notwithstanding any other provision of law, whenever, during the period beginning August 1, 1986, and ending July 31, 1991, the world price for a class of rice (adjusted to United States qualities and location), as determined by the Secretary of Agriculture, is below the current loan repayment rate for that class of rice, to make United States rice competitive in world markets and to maintain and expand exports of rice produced in the United States, the Commodity Credit Corporation, under such regulations as the Secretary may prescribe, shall make payments, through the issuance of negotiable marketing certificates, to persons who have entered into an agreement with the Commodity Credit Corporation to participate in the program established under this section. Such payments shall be made in such monetary amounts and subject to such terms and conditions as the Secretary determines will make rice produced in the United States available at competitive prices consistent with the purposes of this section, including such payments as may be necessary to make rice in inventory on August 1, 1986, available on the same basis.
(b) Determination of value of certificates
The value of each certificate issued under subsection (a) shall be based on the difference between—
(1) the loan repayment rate for the class of rice; and
(2) the prevailing world market price for the class of rice, as determined by the Secretary of Agriculture under a published formula submitted for public comment before its adoption.
(c) Commodity Credit Corporation assistance in redemption, marketing, or exchange of certificates
The Commodity Credit Corporation, under regulations prescribed by the Secretary of Agriculture, may assist any person receiving marketing certificates under this section in the redemption of certificates for cash, or marketing or exchange of such certificates for (1) rice owned by the Commodity Credit Corporation or (2) (if the Secretary and the person agree) other agricultural commodities or the products thereof owned by the Commodity Credit Corporation, at such times, in such manner, and at such price levels as the Secretary determines will best effectuate the purposes of the program established under this section. Notwithstanding any other provision of law, any price restrictions that may otherwise apply to the disposition of agricultural commodities by the Commodity Credit Corporation shall not apply to the redemption of certificates under this section.
(d) Exchange of certificates for commodities and products
Insofar as practicable, the Secretary shall permit owners of certificates to designate the commodities and the products thereof, including storage sites thereof, such owners would prefer to receive in exchange for certificates. If any certificate is not presented for redemption, marketing, or exchange within a reasonable number of days after the issuance of such certificate (as determined by the Secretary), reasonable costs of storage and other carrying charges, as determined by the Secretary, shall be deducted from the value of the certificate for the period beginning after such reasonable number of days and ending with the date of the presentation of such certificate to the Commodity Credit Corporation.
(e) Prevention of adverse effects
The Secretary of Agriculture shall take such measures as may be necessary to prevent the marketing or exchange of agricultural commodities and the products thereof for certificates under this section from adversely affecting the income of producers of such commodities or products.
(f) Transfer of certificates
Under regulations prescribed by the Secretary of Agriculture, certificates issued to rice exporters under this section may be transferred to other exporters and persons approved by the Secretary.
(Pub. L. 99–198, title VI, §603, Dec. 23, 1985, 99 Stat. 1429.)
Editorial Notes
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Section, act Oct. 31, 1949, ch. 792, title I, §101B, as added Nov. 28, 1990, Pub. L. 101–624, title VI, §601, 104 Stat. 3443; amended Nov. 5, 1990, Pub. L. 101–508, title I, §§1101(d), 1102(c), 104 Stat. 1388–1, 1388-2; Dec. 13, 1991, Pub. L. 102–237, title I, §§102(a), 104, 106(a), 113(1), 105 Stat. 1821, 1823, 1824, 1837; Aug. 10, 1993, Pub. L. 103–66, title I, §1104, 107 Stat. 316; May 6, 1994, Pub. L. 103–247, §1(a), 108 Stat. 618; Oct. 13, 1994, Pub. L. 103–354, title I, §119(a)(2), 108 Stat. 3207, related to loans, payments, and acreage reduction programs for 1991 through 1995 crops of rice.
§1441a. Cost of production study and establishment of current national weighted average cost of production
The Secretary of Agriculture, in cooperation with the land grant colleges, commodity organizations, general farm organizations, and individual farmers, shall conduct a cost of production study of the wheat, feed grain, cotton, and dairy commodities under the various production practices and establish a current national weighted average cost of production. This study shall be updated annually and shall include all typical variable costs, including interest costs, a return on fixed costs, and a return for management.
(Pub. L. 91–524, title VIII, §808, as added Pub. L. 93–86, §1(27)(B), Aug. 10, 1973, 87 Stat. 237; amended Pub. L. 97–98, title XI, §1117, Dec. 22, 1981, 95 Stat. 1271.)
Editorial Notes
Codification
Section was enacted as part of the Agricultural Act of 1970 as added by the Agriculture and Consumer Protection Act of 1973, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Amendments
1981—Pub. L. 97–98 inserted "including interest costs," after "variable costs,", substituted ", and a return for management" for "equal to the existing interest rates charged by the Federal Land Bank, and return for management comparable to the normal management fees charged by other comparable industries", and struck out provision that these studies be based upon the size unit that requires one man to farm on a full-time basis.
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.
§1442. Price support and acreage requirements for corn and other feed grains
(a) Conditions of eligibility
Notwithstanding any other provision of law, whenever base acreages are in effect for corn, the Secretary shall require, as a condition of eligibility for price support on corn, that the producer (1) devote an acreage of cropland (tilled in normal rotation), at the option of the producer, to either the acreage reserve program for corn or the conservation reserve program, equal to 15 per centum of such producer's farm base acreage for corn, and (2) not exceed such farm base acreage for corn: Provided, That price support may be made available to any producer who does not meet the foregoing requirements at such level, not in excess of the level of price support to producers who meet such requirements, as the Secretary determines will facilitate the effective operation of the price support program. Corn acreage allotments shall not be effective for the 1956 crop.
(b) Referendum of producers of corn
Not later than December 15, 1956, the Secretary shall conduct a referendum of producers of corn in 1956 in the commercial corn-producing area to determine whether such producers favor a price-support program as provided in subsection (c) of this section for the 1957 and subsequent crops in lieu of acreage allotments as provided in the Agricultural Adjustment Act of 1938, as amended [7 U.S.C. 1281 et seq.], and price support as provided in section 1441 of this title.
(c) Restriction on acreage allotment of corn; price support level
Notwithstanding any other provision of law, if two-thirds or more of the producers voting in the referendum conducted pursuant to subsection (b) favor a price-support program as provided in this subsection, no acreage allotment of corn shall be established for the commercial corn-producing area for any county, or for any farm, with respect to the 1957 and subsequent crops, and price support made available for such crops by Commodity Credit Corporation shall be at such level as the Secretary determines will assist producers in marketing corn in the normal channels of trade but not encourage the uneconomic production of corn.
(d) Price support level for 1956 and 1957 crops of grain sorghums, barley, rye, oats, and corn
Notwithstanding any other provision of law, (1) the level of price support for the 1956 crop of grain sorghums, barley, rye, and oats, respectively, shall be 76 per centum of the parity price for the commodity as of May 1, 1956, (2) the level of price support for corn produced outside the commercial corn-producing area, for any crop for which base acreages are in effect (except as provided in (3) below), shall be 82½ per centum of the level of price support for corn in the commercial corn-producing area to producers complying with acreage limitations, and (3) if price support is made available for the 1957 crop of corn in the commercial corn-producing area to producers not complying with acreage limitations, price support shall be made available for the 1957 crop of grain sorghums, barley, rye, oats, and corn produced outside the commercial corn-producing area, respectively, at a level, not less than 70 per centum of the parity price as of the beginning of the marketing year, determined by the Secretary to be fair and reasonable in relation to the level at which price support is made available for corn in the commercial corn-producing area to producers not complying with acreage limitations, taking into consideration the normal price relationships between such commodity and corn in the commercial area, the feed value of such commodity in relation to corn, the supply of such commodity in relation to the demand therefor, and the ability to dispose of stocks of such commodity acquired through price support programs.
(May 28, 1956, ch. 327, title III, §308, 70 Stat. 206.)
Editorial Notes
References in Text
The Agricultural Adjustment Act of 1938, referred to in subsec. (b), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, as amended, which is classified principally to chapter 35 (§1281 et seq.) of this title. For complete classification of this Act to the Code, see section 1281 of this title and Tables.
Codification
Section was enacted as part of the Agricultural Act of 1956, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Statutory Notes and Related Subsidiaries
Referendum of Producers of Corn
The referendum provided for in subsec. (b) of this section was held on Dec. 11, 1956, and the required two-thirds vote was not obtained in favor of the price support program provided for in subsec. (c) of this section. See 22 F.R. 480.
§1443. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §102, as added Aug. 28, 1958, Pub. L. 85–835, title I, §101, 72 Stat. 988, related to acreage allotment and price support levels for the 1959 and 1960 crops of upland cotton.
§1444. Cotton price support levels
(a) Basic support levels for 1961 and subsequent years
Notwithstanding the provisions of section 1441 of this title, price support to cooperators for each crop of upland cotton, beginning with the 1961 crop, for which producers have not disapproved marketing quotas shall be at such level not more than 90 per centum of the parity price therefor nor less than the minimum level prescribed below as the Secretary determines appropriate after consideration of the factors specified in section 1421(b) of this title. For the 1961 crop the minimum level shall be 70 per centum of the parity price therefor, and for each subsequent crop the minimum level shall be 65 per centum of the parity price therefor: Provided, That the price support for the 1965 crop shall be a national average support price which reflects 30 cents per pound for Middling one-inch cotton. Price support in the case of noncooperators and in case marketing quotas are disapproved shall be as provided in section 1441(d)(3) and (5) 1 of this title.
(b) Additional support levels for 1964 and 1965
If producers have not disapproved marketing quotas, the Secretary shall provide additional price support on the 1964 and 1965 crops of upland cotton to cooperators on whose farms the acreage planted to upland cotton for harvest does not exceed the farm domestic allotment established under section 1350 of this title. Such additional support shall be at a level up to 15 per centum in excess of the basic level of support established under subsection (a) and shall be provided on the normal yield of the acreage planted for harvest within the farm domestic allotment. For purposes of this subsection, an acreage on the farm which the Secretary finds was not planted to cotton in 1965 because of flood, drought, or other natural disaster shall be deemed by the Secretary to be an actual acreage of cotton planted on the farm for harvest, provided such acreage is not subsequently devoted to any price supported crop for 1965.
(c) Alternative operations for carrying out additional price support; payment-in-kind certificates: value, marketing assistance, redemption, and deductions after thirty day period
In order to keep upland cotton to the maximum extent practicable in the normal channels of trade, any additional price support under subsection (b) of this section may be carried out through the simultaneous purchase of cotton at the support price therefor under subsection (b) and the sale of such cotton at the support price therefor under subsection (a) or similar operations, including loans under which the cotton would be redeemable by payment of the amount for which the cotton would be redeemable if the loan thereon had been made at the support price for such cotton under subsection (a), or payments-in-kind through the issuance of certificates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary. If such additional support is provided through the issuance of payment-in-kind certificates, such certificates shall have a value per pound of cotton equal to the difference between the level of support established under subsection (a) and the level of support established under subsection (b). The corporation may, under regulations prescribed by the Secretary, assist the producers and persons receiving payment-in-kind certificates under this section and section 1348 of this title, in the marketing of such certificates at such time and in such manner as the Secretary determines will best effectuate the purposes of the program authorized by this section and such section 1348. In the case of any certificate not presented for redemption within thirty days of the date of its issuance, reasonable costs of storage and other carrying charges as determined by the Secretary for the period beginning thirty days after its issuance and ending with the date of its presentation for redemption shall be deducted from the value of the certificate.
(d) Price support and diversion payments for 1966 through 1970 crops
(1) Notwithstanding any other provision of this Act, if producers have not disapproved marketing quotas, price support and diversion payments shall be made available for the 1966 through 1970 crops of upland cotton as provided in this subsection.
(2) Price support for each such crop of upland cotton shall be made available to cooperators through loans at such level, not exceeding a level which will reflect for Middling one-inch upland cotton at average location in the United States 90 per centum of the estimated average world market price for Middling one-inch upland cotton for the marketing year for such crop, as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States taking into consideration the factors specified in section 1421(b) of this title: Provided, That the national average loan rate for the 1966 crop shall reflect 21 cents per pound for Middling one-inch upland cotton.
(3) The Secretary also shall provide additional price support for each such crop through payments in cash or in kind to cooperators at a rate not less than 9 cents per pound: Provided, That the rate shall be such that the amount obtained by—
(i) multiplying the rate by the farm domestic acreage allotment percentage, and
(ii) dividing the product thus obtained by the cooperator percentage established under section 1428(b) of this title, and
(iii) adding the result thus obtained to the national average loan rate
shall not be less than 65 per centum or more than 90 per centum of the parity price for cotton as of the month in which the payment rate provided for by this paragraph is announced. Such payments shall be made on the quantity of cotton determined by multiplying the projected farm yield by the acreage planted to cotton within the farm domestic acreage allotment: Provided, That any such farm planting not less than 90 per centum of such domestic acreage allotment shall be deemed to have planted the entire amount of such allotment. An acreage on a farm in any such year which the Secretary finds was not planted to cotton because of drought, flood, or other natural disaster shall be deemed to be planted to cotton for purposes of payments under this subsection if such acreage is not subsequently devoted to any other crop for which there are marketing quotas or voluntary adjustment programs in effect.
(4) The Secretary shall make diversion payments in cash or in kind in addition to the price support payments authorized in paragraph (3) to cooperators who reduce their cotton acreage by diverting a portion of their cotton acreage allotment from the production of cotton to approved conservation practices to the extent prescribed by the Secretary: Provided, That no reduction below the domestic acreage allotments established under section 1350 of this title shall be prescribed: Provided further, That payment under this paragraph shall be made available for diverting to conserving uses that part of the acreage allotment which must be diverted from cotton in order that the producer may qualify as a cooperator. The rate of payment for acreage required to be diverted in order to qualify as a cooperator shall not be less than 25 per centum of the parity price for upland cotton as of the month in which such rate is announced. The rate of payment for additional acreage diverted shall be such rate as the Secretary determines to be fair and reasonable, but shall not exceed 40 per centum of such parity price. Payment at each applicable rate shall be made on the quantity of cotton determined by multiplying the acreage diverted from the production of cotton at such rate by the projected farm yield. In addition to the foregoing payment, if any, payment at the rate applicable for acreage required to be diverted to qualify as a cooperator shall be made to producers on small farms as defined in section 1428(b) of this title who do not exceed their farm acreage allotments on a quantity of cotton determined by multiplying an acreage equal to 35 per centum of such farm acreage allotment by the projected farm yield.
(5) The Secretary may make not to exceed 50 per centum of the payments under this subsection to producers in advance of determination of performance and the balance of such payments shall be made at such time as the Secretary may prescribe.
(6) Where the farm operator elects to participate in the diversion program authorized in this subsection and no acreage is planted to cotton on the farm, diversion payments shall be made at the rate established under paragraph (4) for acreage required to be diverted to qualify as a cooperator on the quantity of cotton determined by multiplying that part of the farm acreage allotment required to be diverted to qualify as a cooperator by the projected farm yield, and the remainder of such allotment may be released under the provisions of section 1344(m)(2) of this title. The acreage on which payment is made under this paragraph shall be regarded as planted to cotton for purposes of establishing future State, county, and farm acreage allotments, and farm bases.
(7) Payments in kind under this subsection shall be made through the issuance of certificates which the Commodity Credit Corporation shall redeem for cotton under regulations issued by the Secretary at a value per pound equal to not less than the current loan rate therefor. The Corporation may, under regulations prescribed by the Secretary, assist the producers in the marketing of such certificates at such times and in such manner as the Secretary determines will best effectuate the purposes of the program authorized by this subsection.
(8) Payments under this subsection shall be conditioned on the farm having an acreage of approved conservation uses equal to the sum of (i) the reduction in cotton acreage required to qualify for such payments (hereinafter called "diverted acreage"), and (ii) the average acreage of cropland on the farm devoted to designated soil-conserving crops or practices, including summer fallow and idle land, during a base period prescribed by the Secretary: Provided, That the Secretary may permit all or any part of such diverted acreage to be devoted to the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, and flaxseed, if he determines that such production is necessary to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not adversely affect farm income, subject to the condition that payment under paragraph (4) or (6) with respect to diverted acreage devoted to any such crop shall be at a rate determined by the Secretary to be fair and reasonable, taking into consideration the use of such acreage for the production of such crops, but in no event shall the payment exceed one-half the rate which otherwise would be applicable if such acreage were devoted to conservation uses.
(9) The acreage regarded as planted to cotton on any farm which qualifies for payment under this subsection except under paragraph (6) shall, for purposes of establishing future State, county, and farm acreage allotments and farm bases, be the farm acreage allotment established under section 1344 of this title, excluding adjustments under subsection (m)(2) thereof.
(10) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing diversion payments on a fair and equitable basis under this subsection. The Secretary shall provide for the sharing of price support payments among producers on the farm on the basis of their respective shares in the cotton crop produced on the farm, or the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable.
(11) In any case in which the failure of a producer to comply fully with the terms and conditions of the programs formulated under this Act preclude the making of payments under this section, the Secretary may, nevertheless, make such payments in such amounts as he determines to be equitable in relation to the seriousness of the default.
(12) Notwithstanding any other provision of this Act, if, as a result of limitations hereafter enacted with respect to price support under this subsection, the Secretary is unable to make available to all cooperators the full amount of price support to which they would otherwise be entitled under paragraphs (2) and (3) of this subsection for any crop of upland cotton, (A) price support to cooperators shall be made available for such crop (if marketing quotas have not been disapproved) through loans or purchases at such level not less than 65 per centum nor more than 90 per centum of the parity price therefor as the Secretary determines appropriate; (B) in order to keep upland cotton to the maximum extent practicable in the normal channels of trade, such price support may be carried out through the simultaneous purchase of cotton at the support price therefor and resale at a lower price or through loans under which the cotton would be redeemable by payment of a price therefor lower than the amount of the loan thereon; and (C) such resale or redemption price shall be such as the Secretary determines will provide orderly marketing of cotton during the harvest season and will retain an adequate share of the world market for cotton produced in the United States.
(13) The provisions of section 590h(g) of title 16 (relating to assignment of payments), shall also apply to payments under this subsection.
(14) The Commodity Credit Corporation is authorized to utilize its capital funds and other assets for the purpose of making the payments authorized in this subsection and to pay administrative expenses necessary in carrying out this subsection.
(e) Price support, diversion, and cropland set-aside program for crops beginning with 1971 crop
(1) The Secretary shall upon presentation of warehouse receipts reflecting accrued storage charges of not more than 60 days make available for the 1971 through 1977 crops of upland cotton to cooperators nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at such level as will reflect the Middling one-inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States 90 per centum of the average price of American cotton in world markets for such cotton for the three-year period ending July 31 in the year in which the loan level is announced, except that if the loan rate so calculated is higher than the then current level of average world prices for American cotton of such quality, the Secretary is authorized to adjust the current calculated loan rate for cotton to 90 per centum of the then current average world price. The average world price for such cotton for such preceding three-year period shall be determined by the Secretary annually pursuant to a published regulation which shall specify the procedures and the factors to be used by the Secretary in making the world price determination. The loan level for any crop of upland cotton shall be determined and announced not later than November 1 of the calendar year preceding the marketing year for which such loan is to be effective. Notwithstanding the foregoing, if the carryover of upland cotton as of the beginning of the marketing year for any of the 1972 or 1973 crops exceeds 7.2 million bales, producers on any farm harvesting cotton of such crop from an acreage in excess of the base acreage allotment for such farm shall be entitled to loans and purchases only on an amount of the cotton of such crop produced on such farm determined by multiplying the yield used in computing payments for such farm by the base acreage allotment for such farm.
(2) Payments shall be made for each crop of cotton to the producers on each farm at a rate equal to the amount by which the higher of—
(1) the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as determined by the Secretary, or
(2) the loan level determined under paragraph (1) for such crop
is less than the established price of 38 cents per pound in the case of the 1974 and 1975 crops, 38 cents per pound adjusted to reflect any change during the calendar year 1975 in the index of prices paid by farmers for production items, interest, taxes, and wage rates in the case of the 1976 crop, and the established price for the 1976 crop adjusted to reflect any change during the calendar year 1976 in such index in the case of the 1977 crop: Provided, That any increase that would otherwise be made in the established price to reflect a change in the index of prices paid by farmers shall be adjusted to reflect any change in (i) the national average yield per acre of cotton for the three calendar years preceding the year for which the determination is made, over (ii) the national average yield per acre of cotton for the three calendar years preceding the year previous to the one for which the determination is made. If the Secretary determines that the producers on a farm are prevented from planting any portion of the allotment to cotton because of drought, flood, or other natural disaster, or condition beyond the control of the producer, the rate of payment for such portion shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. If the Secretary determines that, because of such a disaster or condition, the total quantity of cotton which the producers are able to harvest on any farm is less than 662/3 percent of the farm base acreage allotment times the average yield established for the farm, the rate of payment for the deficiency in production below 100 percent shall be the larger of (A) the foregoing rate, or (B) one-third of the established price. The payment rate with respect to any producer who (i) is on a small farm (that is, a farm on which the base acreage allotment is ten acres or less, or on which the yield used in making payments times the farm base acreage allotment is five thousand pounds or less, and for which the base acreage allotment has not been reduced under section 1350(f) of this title, (ii) resides on such farm, and (iii) derives his principal income from cotton produced on such farm, shall be increased by 30 per centum; but, notwithstanding paragraph (3), such increase shall be made only with respect to his share of cotton actually harvested on such farm within the quantity specified in paragraph (3).
(3) Such payments shall be made available for a farm on the quantity of upland cotton determined by multiplying the acreage planted within the farm base acreage allotment for the farm for the crop by the average yield established for the farm: Provided, That payments shall be made on any farm planting not less than 90 per centum of the farm base acreage allotment on the basis of the entire amount of such allotment. For purposes of this paragraph, an acreage on the farm which the Secretary determines was not planted to cotton because of drought, flood, other natural disaster, or a condition beyond the control of the producer shall be considered to be an acreage planted to cotton. The average yield for the farm for any year shall be determined on the basis of the actual yields per harvested acre for the three preceding years, except that the 1970 farm projected yield shall be substituted in lieu of the actual yields for the years 1968 and 1969: Provided, That the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster: Provided further, That the average yield established for the farm for any year shall not be less than the yield used in making payments for the preceding year if the total cotton production on the farm in such preceding year is not less than the yield used in making payments for the farm for such preceding year times the farm base acreage allotment for such preceding year (for the 1970 crop, the farm domestic allotment).
(4)(A) The Secretary shall provide for a set aside of cropland if he determines that the total supply of agricultural commodities will, in the absence of such a set-aside, likely be excessive taking into account the need for an adequate carryover to maintain reasonable and stable supplies and prices and to meet a national emergency. If a set-aside of cropland is in effect under this paragraph (4), then as a condition of eligibility for loans and payments on upland cotton the producers on a farm must set aside and devote to approved conservation uses an acreage of cropland equal to (i) such percentage of the farm base acreage allotment for the farm as may be specified by the Secretary (not to exceed 28 per centum of the farm base acreage allotment), plus, if required by the Secretary, (ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Secretary. The Secretary is authorized for the 1974 through 1977 crops to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to a percentage of the farm base acreage allotment. The Secretary shall permit producers to plant and graze on set-aside acreage sweet sorghum, and the Secretary may permit, subject to such terms and conditions as he may prescribe, all or any of the set-aside acreage to be devoted to hay and grazing or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, oats, rye, or other commodity, if he determines that such production is needed to provide an adequate supply, is not likely to increase the cost of the price-support program, and will not adversely affect farm income.
(B) To assist in adjusting the acreage of commodities to desirable goals, the Secretary may make land diversion payments, in addition to the payments authorized in subsection (e)(2), to producers on a farm who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in addition to that required to be so devoted under subsection (e)(4)(A). The land diversion payments for a farm shall be at such rate or rates as the Secretary determines to be fair and reasonable taking into consideration to the diversion undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to adversely affect the economy of the county or local community.
(5) The upland cotton program formulated under this section shall require the producer to take such measures as the Secretary may deem appropriate to protect the set-aside acreage and the additional diverted acreage from erosion, insects, weeds, and rodents. Such acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may in the case of programs for the 1974 through 1977 crops, pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentences. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm as the Secretary may prescribe by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations.
(6) If the operator of the farm desires to participate in the program formulated under this section, he shall file his agreement to do so no later than such date as the Secretary may prescribe. Loans and purchases on upland cotton and payments under this section shall be made available to the producers on such farm only if producers set aside and devote to approved soil conserving uses an acreage on the farm equal to the number of acres which the operator agrees to set aside and devote to approved soil conserving uses, and the agreement shall so provide. The Secretary may, by mutual agreement with the producer, terminate or modify any such agreement entered into pursuant to this subsection (e)(6) if he determines such action necessary because of an emergency created by drought or other disaster or in order to alleviate a shortage in the supply of agricultural commodities.
(7) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers, including provision for sharing on a fair and equitable basis, in payments under this section.
(8) In any case in which the failure of a producer to comply fully with the terms and conditions of the program formulated under this section precludes the making of loans, purchases, and payments, the Secretary may, nevertheless, make such loans, purchases, and payments in such amounts as he determines to be equitable in relation to the seriousness of the default.
(9) The Secretary is authorized to issue such regulations as he determines necessary to carry out the provisions of this subchapter.
(10) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(11) The provisions of section 590h(g) of title 16 (relating to assignment of payments), shall apply to payments under this subsection.
(f), (g) Omitted
(h) Program for extra long staple cotton beginning with 1984 crop
(1) For purposes of this subsection, extra long staple cotton means cotton which is produced from pure strain varieties of the Barbadense species or any hybrid thereof, or other similar types of extra long staple cotton, designated by the Secretary, having characteristics needed for various end uses for which American upland cotton is not suitable and grown in irrigated cotton-growing regions of the United States designated by the Secretary or other areas designated by the Secretary as suitable for the production of such varieties or types and which is ginned on a roller-type gin or, if authorized by the Secretary, ginned on another type gin for experimental purposes.
(2) The Secretary shall, upon presentation of warehouse receipts reflecting accrued storage charges of not more than sixty days, make available to producers nonrecourse loans for a term of ten months from the first day of the month in which the loan is made at a level which is not less than 85 percent of the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period..2 If authorized by the Secretary, nonrecourse loans provided for in this subsection may, upon request of the producer during the tenth month of the loan period for the cotton, be made available for an additional term of eight months. The loan level for any crop of extra long staple cotton shall be determined and announced by the Secretary not later than December 1 of the calendar year preceding the marketing year for which such loan is to be effective and such level shall not thereafter be changed.
(3)(A) In addition, payments shall be made for each crop of extra long staple cotton to producers on each farm at a rate equal to the amount by which the higher of—
(i) the average market price received by farmers for extra long staple cotton during the first eight months of the marketing year for such crop, as determined by the Secretary, or
(ii) the loan level determined under paragraph (2) of this subsection for such crop,
is less than the established price per pound times, in each case, the farm program acreage for extra long staple cotton (determined in accordance with paragraph (5)(A), but in no event on a greater acreage than the acreage actually planted to extra long staple cotton for harvest), multiplied by the farm program payment yield for extra long staple cotton (determined in accordance with paragraph (4)).
(B) The established price for each crop of extra long staple cotton shall be 120 per centum of the loan level determined for such crop under paragraph (2) of this subsection.
(C) If the Secretary establishes an acreage limitation program for a crop of extra long staple cotton in accordance with paragraph (5)(A) and determines that deficiency payments will likely be made for such crop of extra long staple cotton under subparagraph (A) of this paragraph, the Secretary may make available advance deficiency payments for such crop to producers who agree to participate in the acreage limitation program. Such advance payments shall be made available to producers as soon as practicable after the producer files a notice of intention to participate in such acreage limitation program and in such amount as the Secretary determines appropriate to encourage adequate participation in such program, except that such amount shall not exceed an amount determined by multiplying (i) the estimated farm program acreage for the crop, by (ii) the farm program payment yield for the crop, by (iii) 50 per centum of the projected payment rate, as determined by the Secretary. In any case in which the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under subparagraph (A) of this paragraph, is less than the amount paid to the producer as an advance deficiency payment under this paragraph, the producer shall refund an amount equal to the difference between the amount advanced and the amount finally determined by the Secretary to be payable to the producer. If the Secretary determines that no deficiency payments are due producers on a crop, the producer who received advanced payments on such crop shall refund such payments. If a producer fails to comply with the requirements under the acreage limitation program after obtaining an advance deficiency payment under this paragraph, the producer shall immediately repay the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe.
(4) The farm program payment yield for each crop of extra long staple cotton shall be determined on the basis of the actual yields per harvested acre on the farm for the preceding three years, except that the actual yields shall be adjusted by the Secretary for abnormal yields in any year caused by drought, flood, or other natural disaster, or other condition beyond the control of the producers. In case farm yield data for one or more years are unavailable or there was no production, the Secretary shall provide for appraisals to be made on the basis of actual yields and program payment yields for similar farms in the area for which data are available. Notwithstanding the foregoing provisions of this paragraph in the determination of yields, the Secretary shall take into account the actual yields proved by the producer, and neither such yields nor the farm program payment yield established on the basis of such yields shall be reduced under other provisions of this paragraph. If the Secretary determines it necessary, the Secretary may establish national, State, or county program payment yields on the basis of historical yields, as adjusted by the Secretary to correct for abnormal factors affecting such yields in the historical period, or, if such data are not available, on the Secretary's estimate of actual yields for the crop year involved. If national, State, or county program payment yields are established, the farm program payment yields shall balance to the national, State, or county program payment yields.
(5)(A)(i) Notwithstanding any other provision of this subsection, the Secretary may establish a limitation on the acreage planted to extra long staple cotton if the Secretary determines that the total supply of extra long staple cotton, in the absence of such limitation, will be excessive taking into account the need for an adequate carryover to maintain reasonable and stable prices and to meet a national emergency. Such limitation shall be achieved by applying a uniform percentage reduction (including a zero percentage reduction) to the acreage base for each extra long staple cotton-producing farm. Producers who knowingly produce extra long staple cotton in excess of the permitted acreage for the farm shall be ineligible for extra long staple cotton loans and payments with respect to that farm. The acreage base for any farm for the purpose of determining any reduction required to be made for any year as a result of a limitation under this subparagraph shall be the average acreage planted on the farm to extra long staple cotton for harvest in the three crop years immediately preceding the year prior to the year for which the determination is made. For the purpose of the preceding sentence, acreage planted to extra long staple cotton for harvest shall include any acreage which the producers were prevented from planting to extra long staple cotton or other nonconserving crops in lieu of extra long staple cotton because of drought, flood, or other natural disaster or other condition beyond the control of the producers. The Secretary may make adjustments to reflect established crop-rotation practices and to reflect such other factors as the Secretary determines should be considered in determining a fair and equitable base. There is hereby established for the 1984, 1985, and 1986 crops an acreage base reserve equal to 5 per centum of the total of the farm acreage bases established for the crop under the foregoing provisions of this subparagraph. Such reserve shall be in addition to the total of the farm acreage bases and shall be used by the county committees, in accordance with regulations of the Secretary, for making adjustments of farm acreage bases to correct inequities and prevent hardship, and for establishing bases for farms on which no extra long staple cotton was planted during the preceding four years. A number of acres on the farm determined by dividing (i) the product obtained by multiplying the number of acres required to be withdrawn from the production of extra long staple cotton times the number of acres actually planted to such commodity, by (ii) the number of acres authorized to be planted to such commodity under the limitation established by the Secretary, shall be devoted to conservation uses, in accordance with regulations issued by the Secretary, which will assure protection of such acreage from weeds and wind and water erosion. The number of acres so determined is hereafter in this subsection referred to as "reduced acreage". The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the reduced acreage to be devoted to sweet sorghum, hay and grazing, or the production of guar, sesame, safflower, sunflower, castor beans, mustard seed, crambe, plantago ovato, flaxseed, triticale, rye, or other commodity, if the Secretary determines that such production is needed to provide an adequate supply of such commodities, is not likely to increase the cost of the price support program, and will not affect farm income adversely. The individual farm program acreage shall be the actual acreage planted on the farm to extra long staple cotton for harvest within the permitted extra long staple cotton acreage for the farm as established under this paragraph.
(ii) Notwithstanding any other provision of this Act, the Secretary shall ensure, under such terms and conditions as may be prescribed by the Secretary, that the total of the crop acreage bases established on a farm which is enrolled in a production adjustment program for any commodity shall not be increased as a result of the application of the provisions set forth in paragraph (13)(C), as extended for the 1989 and 1990 crop.
(B) The Secretary may make land diversion payments to producers of extra long staple cotton, whether or not an acreage limitation program for extra long staple cotton is in effect, if the Secretary determines that such land diversion payments are necessary to assist in adjusting the total national acreage of extra long staple cotton to desirable goals. Such land diversion payments shall be made to producers who, to the extent prescribed by the Secretary, devote to approved conservation uses an acreage of cropland on the farm in accordance with land diversion contracts entered into by the Secretary with such producers. The amounts payable to producers under land diversion contracts may be determined through the submission of bids for such contracts by producers in such manner as the Secretary may prescribe or through such other means as the Secretary determines appropriate. In determining the acceptability of contract offers, the Secretary shall take into consideration the extent of the diversion to be undertaken by the producers and the productivity of the acreage diverted. The Secretary shall limit the total acreage to be diverted under agreements in any county or local community so as not to affect adversely the economy of the county or local community.
(C) The reduced acreage and the diverted acreage may be devoted to wildlife food plots or wildlife habitat in conformity with standards established by the Secretary in consultation with wildlife agencies. The Secretary may pay an appropriate share of the cost of practices designed to carry out the purpose of the foregoing sentence. The Secretary may provide for an additional payment on such acreage in an amount determined by the Secretary to be appropriate in relation to the benefit to the general public if the producer agrees to permit, without other compensation, access to all or such portion of the farm, as the Secretary may prescribe, by the general public, for hunting, trapping, fishing, and hiking, subject to applicable State and Federal regulations.
(6) An operator of a farm desiring to participate in the program conducted under paragraph (5) shall execute an agreement with the Secretary providing for such participation not later than such date as the Secretary may prescribe. The Secretary may, by mutual agreement with the producers on the farm, terminate or modify any such agreement if the Secretary determines such action necessary because of an emergency created by drought or other disaster or to prevent or alleviate a shortage in the supply of agricultural commodities.
(7) The Secretary shall provide for the sharing of payments made under this subsection for any farm among the producers on the farm on a fair and equitable basis.
(8) The Secretary shall provide adequate safeguards to protect the interests of tenants and sharecroppers.
(9) If the failure of a producer to comply fully with the terms and conditions of the program formulated under this subsection precludes the making of loans and payments, the Secretary may, nevertheless, make such loans and payments in such amounts as the Secretary determines to be equitable in relation to the seriousness of the failure. The Secretary may authorize the county and State committees established under section 590h(b) of title 16 to waive or modify deadlines and other program requirements in cases in which lateness or failure to meet such other requirements does not affect adversely the operation of the program.
(10) The Secretary may issue such regulations as the Secretary determines necessary to carry out the provisions of this subsection.
(11) The Secretary shall carry out the program authorized by this subsection through the Commodity Credit Corporation.
(12) The provisions of section 590h(g) of title 16 (relating to assignment of payments) shall apply to payments made under this subsection.
(13)(A) Compliance on a farm with the terms and conditions of any other commodity program or compliance with crop acreage base requirements for any other commodity may not be required as a condition of eligibility for loans or payments under this section.
(B) The Secretary may not require producers on a farm, as a condition of eligibility for loans or payments under this section for the farm, to comply with the terms and conditions of the extra long staple cotton program with respect to any other farm operated by the producers.
(14) In order to encourage and assist producers in the orderly ginning and marketing of their extra long staple cotton production, the Secretary shall make recourse loans available to such producers on seed cotton in accordance with authority vested in the Secretary under the Commodity Credit Corporation Charter Act [15 U.S.C. 714 et seq.].
(15) References made in sections 1422, 1423, 1426,3 1427, and 1431 of this title to the terms "support price", "level of support", and "level of price support" shall be considered to apply as well to the level of loans for extra long staple cotton under this subsection; and references to the terms "price support", "price support operations", and "price support program" in such sections and in section 1421(a) of this title shall be considered as applying as well to the loan operations for extra long staple cotton under this subsection.
(16) Notwithstanding any other provision of law, this subsection shall not be applicable to the 1996 and subsequent crops of extra long staple cotton.
(Oct. 31, 1949, ch. 792, title I, §103, as added Pub. L. 85–835, title I, §102, Aug. 28, 1958, 72 Stat. 989; amended Pub. L. 88–297, title I, §103(b), Apr. 11, 1964, 78 Stat. 174; Pub. L. 89–112, §2, Aug. 6, 1965, 79 Stat. 447; Pub. L. 89–321, title IV, §402(a), Nov. 3, 1965, 79 Stat. 1194; Pub. L. 89–451, §1, June 17, 1966, 80 Stat. 202; Pub. L. 90–559, §1(2), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91–524, title VI, §602, Nov. 30, 1970, 84 Stat. 1374; Pub. L. 93–86, §1(20), Aug. 10, 1973, 87 Stat. 233; Pub. L. 93–125, §1(b), Oct. 18, 1973, 87 Stat. 450; Pub. L. 95–113, title VI, §602, Sept. 29, 1977, 91 Stat. 934; Pub. L. 95–279, title I, §102, May 15, 1978, 92 Stat. 240; Pub. L. 95–402, Sept. 30, 1978, 92 Stat. 862; Pub. L. 96–213, §4(b), Mar. 18, 1980, 94 Stat. 119; Pub. L. 96–365, title II, §201(b), Sept. 26, 1980, 94 Stat. 1320; Pub. L. 97–98, title V, §502, Dec. 22, 1981, 95 Stat. 1234; Pub. L. 97–446, title I, §155, Jan. 12, 1983, 96 Stat. 2345; Pub. L. 98–88, §4, Aug. 26, 1983, 97 Stat. 494; Pub. L. 98–258, title III, §§301, 302, Apr. 10, 1984, 98 Stat. 133; Pub. L. 99–114, §3, Oct. 1, 1985, 99 Stat. 488; Pub. L. 99–198, title V, §507, Dec. 23, 1985, 99 Stat. 1419; Pub. L. 99–500, §101(a) [title VI, §644], Oct. 18, 1986, 100 Stat. 1783, 1783-36, and Pub. L. 99–591, §101(a) [title VI, §644], Oct. 30, 1986, 100 Stat. 3341, 3341-36; Pub. L. 99–641, title II, §201, Nov. 10, 1986, 100 Stat. 3562; Pub. L. 100–203, title I, §1101(d), Dec. 22, 1987, 101 Stat. 1330–2; Pub. L. 100–331, June 14, 1988, 102 Stat. 602; Pub. L. 100–418, title I, §1214(w), Aug. 23, 1988, 102 Stat. 1163; Pub. L. 101–624, title V, §506, Nov. 28, 1990, 104 Stat. 3440.)
Editorial Notes
References in Text
Section 1441(d) of this title, referred to in subsec. (a), was redesignated section 1441(c) of this title by Pub. L. 108–357, title VI, §612(b)(4), Oct. 22, 2004, 118 Stat. 1524.
This Act, referred to in subsecs. (d)(1), (11), (12) and (h)(5)(A)(ii), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
The Commodity Credit Corporation Charter Act, referred to in subsec. (h)(14), is act June 29, 1948, ch. 704, 62 Stat. 1070, which is classified generally to subchapter II (§714 et seq.) of chapter 15 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 714 of Title 15 and Tables.
Section 1426 of this title, referred to in subsec. (h)(15), was repealed by Pub. L. 104–127, title I, §171(b)(2)(I), Apr. 4, 1996, 110 Stat. 938.
Codification
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
Amendments
1990—Subsec. (h)(3)(A). Pub. L. 101–624, §506(b)(1), substituted "paragraph (5)(A)" for "paragraph (6) or paragraph (8)(A) of this subsection" and "paragraph (4)" for "paragraph (7) of this subsection".
Subsec. (h)(3)(C). Pub. L. 101–624, §506(b)(2), substituted "paragraph (5)(A)" for "paragraph (8)(A) of this subsection".
Subsec. (h)(4). Pub. L. 101–624, §506(a)(1), (2), redesignated par. (7) as (4) and struck out former par. (4) which related to establishment of a national program acreage for extra long staple cotton by Secretary.
Subsec. (h)(5). Pub. L. 101–624, §506(a)(1)–(3), redesignated par. (8) as (5), inserted "(including a zero percentage reduction)" after "reduction" in subpar. (A)(i), and struck out former par. (5) which required Secretary to determine a program allocation factor, not to exceed 100 per centum for each crop of extra long staple cotton.
Pub. L. 101–624, §506(b)(3), struck out before last sentence in subpar. (A)(i) the following: "If an acreage limitation program is announced under this paragraph for a crop of extra long staple cotton, paragraphs (4), (5), and (6) of this subsection shall not be applicable to such crop, including any prior announcement which may have been made under such paragraphs with respect to such crop."
Pub. L. 101–624, §506(b)(4), substituted "paragraph (13)(C)" for "paragraph (16)(C)" in subpar. (A)(ii).
Subsec. (h)(6). Pub. L. 101–624, §506(b)(5), substituted "paragraph (5)" for "paragraph (8) of this subsection".
Pub. L. 101–624, §506(a)(1), (2), redesignated par. (9) as (6) and struck out former par. (6) which provided a formula for determining individual farm program acreage for each crop of extra long staple cotton by multiplying allocation factor by acreage of extra long staple cotton planted for harvest on each farm for which individual farm program acreages are required to be determined.
Subsec. (h)(7) to (12). Pub. L. 101–624, §506(a)(2), redesignated pars. (10) to (15) as (7) to (12), respectively. Former pars. (7) to (9) redesignated (4) to (6), respectively.
Subsec. (h)(13). Pub. L. 101–624, §506(a)(2), (4), redesignated par. (16) as (13), struck out par. (13) as so redesignated, and added new par. (13). Former par. (13) redesignated (10). Prior to being struck out, par. (13) read as follows:
"(A) Notwithstanding any other provision of law, except as provided in subparagraph (B), compliance on a farm with the terms and conditions of any other commodity program may not be required as a condition of eligibility for loans or payments under this subsection.
"(B) In the case of each of the 1989 and 1990 crops of extra long staple cotton, the Secretary may require that, as a condition of eligibility of producers for loans or payments under this subsection, the acreage planted for harvest on the farm to any other commodity for which an acreage limitation program is in effect shall not exceed the crop acreage base established for the farm for that commodity.
"(C) Notwithstanding any other provision of law, in the case of each of the 1987 through 1990 crops of extra long staple cotton, compliance with the terms and conditions of the program authorized by this subsection may not be required as a condition of eligibility for loans, purchases, or payments under any other commodity program."
Subsec. (h)(14), (15). Pub. L. 101–624, §506(a)(2), redesignated pars. (17) and (18) as (14) and (15), respectively. Former pars. (14) and (15) redesignated (11) and (12), respectively.
Subsec. (h)(16). Pub. L. 101–624, §506(a)(2), (5), redesignated par. (19) as (16) and substituted "1996" for "1991". Former par. (16) redesignated (13).
Subsec. (h)(17) to (19). Pub. L. 101–624, §506(a)(2), redesignated pars. (17) to (19) as (14) to (16), respectively.
1988—Subsec. (f)(3). Pub. L. 100–418 substituted "subheadings 9904.30.10 through 9904.30.30 of chapter 99 of the Harmonized Tariff Schedule of the United States" for "items 955.01 through 955.03 of the Appendix to the Tariff Schedules of the United States".
Subsec. (h)(8)(A). Pub. L. 100–331, §2, designated existing provisions as cl. (i) and added cl. (ii).
Subsec. (h)(16)(C). Pub. L. 100–331, §1, substituted "through 1990" for "and 1988".
1987—Subsec. (h)(3)(B). Pub. L. 100–203 temporarily (see Effective and Termination Dates of 1987 Amendment note below) substituted "Except as provided in clause (ii), the" for "The" and added cl. (ii) which read as follows: "In the case of each of the 1988 and 1989 crops of extra long staple cotton, the established price for each such crop shall be 118.3 percent of the loan level determined for such crop under paragraph (2)."
1986—Subsec. (h)(16). Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–641, in generally amending par. (16) identically, designated existing provisions as subpar. (A), inserted "except as provided in subparagraph (B)," and added subpars. (B) and (C).
1985—Subsec. (h)(2). Pub. L. 99–198, §507(1), in first sentence substituted "85 percent or the simple average price received by producers of extra long staple cotton, as determined by the Secretary, during 3 years of the 5-year period ending July 31 in the year in which the loan level is announced, excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period." for "50 per centum in excess of the loan level established for each crop of Strict Low Middling one and one-sixteenth inch upland cotton (micronaire 3.5 through 4.9) at average location in the United States", and, in last sentence substituted "December 1" for "November 1" and struck out ", or within 10 days after the loan level for the related crop of upland cotton is announced, whichever is later,".
Pub. L. 99–114, §3(1), inserted ", or within 10 days after the loan level for the related crop of upland cotton is announced, whichever is later,".
Subsec. (h)(4). Pub. L. 99–114, §3(2), inserted "and announce" after "The Secretary shall establish" and struck out sentence which had provided that national program acreage for extra long staple cotton had to be announced by the Secretary not later than November 1 of the calendar year preceding the year for which such acreage was established.
Subsec. (h)(19). Pub. L. 99–198, §507(2), added par. (19).
1984—Subsec. (g)(3)(B). Pub. L. 98–258, §301, substituted "and $0.81 per pound for the 1984 and 1985 crops" for "$0.81 per pound for the 1984 crop, and $0.86 per pound for the 1985 crop".
Subsec. (g)(9)(A). Pub. L. 98–258, §302(1), inserted "except as provided in the second and third sentences of this subparagraph," after "Notwithstanding any other provision of this subsection,".
Pub. L. 98–258, §302(2), inserted sentences providing that for the 1985 crop of upland cotton, if the Secretary estimates that the quantity of upland cotton on hand in the United States on July 31, 1985 (not including any quantity of upland cotton produced in the United States during calendar year 1985), will exceed three million seven hundred thousand bales, the Secretary (i) shall provide for a land division [diversion] program as described under subparagraph (B) under which the acreage planted to upland cotton for harvest on the farm would be limited to the acreage base for the farm reduced by not less than 5 per centum and (ii) may provide for an acreage limitation program as described under this subparagraph under which the acreage planted to upland cotton for harvest on the farm would be limited to the acreage base for the farm reduced by not more than 20 per centum in addition to the reduction required under clause (i), that if the Secretary implements a combined acreage limitation program and land division [diversion] program, any reduction required by the Secretary in excess of 25 per centum of the acreage base for the farm shall be made under the land diversion program, and that, as a condition of eligibility for loans, purchases, and payments on the 1985 crop of upland cotton, if the Secretary implements a land diversion program or a combined acreage limitation and land diversion program, the producers on a farm must comply with the terms and conditions of such program.
Subsec. (g)(9)(B). Pub. L. 98–258, §302(3), inserted sentences providing that if the Secretary implements a land diversion program for the 1985 crop of upland cotton under the provisions of subparagraph (A), the Secretary shall make crop retirement and conservation payments to any producer of the 1985 crop of upland cotton whose acreage planted to upland cotton for harvest on the farm is reduced so that it does not exceed the upland cotton acreage base for the farm less an amount equivalent to the percentage of the acreage base specified by the Secretary, but not less than 5 per centum, in addition to the reduction required under the acreage limitation program under subparagraph (A), if any, and who devotes to approved conservation uses an acreage of cropland equivalent to the reduction required from the upland cotton acreage base under this subparagraph, that such payments shall be made in an amount computed by multiplying (i) the diversion payment rate, by (ii) the farm program payment yield for the crop, by (iii) the acreage diverted under this subparagraph, that the diversion payment rate shall be established by the Secretary at not less than $0.275 per pound: Provided, That if the Secretary estimates that the quantity of upland cotton on hand in the United States on July 31, 1985 (not including any quantity of upland cotton produced in the United States during calendar year 1985), will exceed (I) four million one hundred thousand bales, such rate shall be established by the Secretary at not less than $0.30 per pound, and (II) four million seven hundred thousand bales such rate shall be established by the Secretary at not less than $0.35 per pound, that the Secretary shall make not less than 50 per centum of any payments under this subparagraph to producers of the 1985 crop as soon as practicable after a producer enters into a land diversion contract with the Secretary and in advance of any determination of performance, and that if a producer fails to comply with a land diversion contract after obtaining an advance payment under this subparagraph, the producer shall repay the advance immediately and, in accordance with regulations issued by the Secretary, pay interest on the advance.
1983—Subsec. (h). Pub. L. 98–88 added subsec. (h).
Subsec. (f)(3). Pub. L. 97–446 temporarily substituted provision relating to the special quota status of Tariff Schedule items 955.01 and 955.03 before a special quota established under this subsection is filled and the cotton in question is duty free, for provision that, notwithstanding any other provision of law, the foregoing provisions of this subsection with respect to extension of the loan period and to proclamation of the special quota was to become effective Oct. 1, 1977, even though the cotton might have been of a crop prior to the 1978 crop. See Effective and Termination Dates of 1983 Amendment note below.
1981—Subsec. (g). Pub. L. 97–98 temporarily added subsec. (g). See Effective and Termination Dates of 1981 Amendment note below.
1980—Subsec. (f)(5)(A). Pub. L. 96–365, §201(b)(1), substituted "Except as otherwise provided in subparagraph (C) of this paragraph, effective with respect to the 1978 through 1981 crops of upland cotton" for "Effective only with respect to the 1978, 1979, and 1980 crops of upland cotton".
Pub. L. 96–213, §4(b)(1), substituted "1978, 1979, and 1980 crops of upland cotton" for "1978 and 1979 crops of upland cotton".
Subsec. (f)(5)(B). Pub. L. 96–365, §201(b)(2), substituted "Except as otherwise provided in subparagraph (C) of this paragraph, effective with respect to the 1978 through 1981 crops of upland cotton" for "Effective only with respect to the 1978, 1979, and 1980 crops of upland cotton".
Pub. L. 96–213, §4(b)(2), substituted "1978, 1979, and 1980 crops of upland cotton" for "1978 and 1979 crops of upland cotton".
Subsec. (f)(5)(C). Pub. L. 96–365, §201(b)(3), added subpar. (C).
1978—Subsec. (f)(1). Pub. L. 95–402 purported to strike out the fourth sentence of subsec. (f)(1). The enacting clause, however, stated that Pub. L. 95–402 was enacted to amend subsec. (f)(1) ". . . to ensure that the interest rates on price support loans for upland cotton are not less favorable to producers than the interest rates for such loans on other commodities". Accordingly, the third sentence of subsec. (f)(1) was struck out as the probable intent of Congress because it related to interest rates while the fourth sentence related to extension of the loan period and establishment of a special limited global import quota.
Pub. L. 95–279 temporarily substituted "during three years of the five-year period ending July 31" for "during the four-year period ending July 31" and inserted "excluding the year in which the average price was the highest and the year in which the average price was the lowest in such period" in cl. (i), substituted "for the fifteen-week period beginning July 1" for "for the first two full weeks of October" in cl. (ii), and inserted proviso relating to the minimum loan level and the power of the Secretary to raise the loan level as he may deem appropriate when the average Northern European price is less than the average United States spot market price. See Effective and Termination Dates of 1978 Amendment note below.
1977—Subsec. (f). Pub. L. 95–113 temporarily added subsec. (f). See Effective and Termination Dates of 1977 Amendment note below.
1973—Subsec. (e)(1). Pub. L. 93–86, §1(20)(A), (B), substituted "1971 through 1977 crops of upland cotton" for "1971, 1972, and 1973 crops of upland cotton", "three-year period" for "two-year period" in two places, "except that if the loan rate so calculated is higher than the then current level of average world prices for American cotton of such quality, the Secretary is authorized to adjust the current calculated loan rate for cotton to 90 per centum of the then current average world price" for "except that to prevent the establishment of such a loan level as would adversely affect the competitive position of United States upland cotton, following one or more years of excessively high prices the Secretary shall make such adjustments as are necessary to keep United States upland cotton competitive and to retain an adequate share of the world market for such cotton", "average price of American cotton in world markets" for "acreage world price", and "any of the 1972 through 1977 crops" for "the 1972 or 1973 crop".
Subsec. (e)(2). Pub. L. 93–86, §1(20)(C), substituted provisions setting out the formula for determining payments for each crop of cotton to the producers on each farm using, as elements of such formula, the average market price received by farmers for upland cotton during the calendar year which includes the first five months of the marketing year for such crop, as determined by the Secretary, the loan level determined under paragraph (1) for such crop, an established price of 38 cents per pound in the case of the 1974 and 1975 crops, adjusted prices in the case of the 1976 and 1977 crops, adjustment of increases to reflect changes in the national average yield per acre of cotton for the three calendar years preceding the year for which the determination is made over the national average yield per acre of cotton for the three calendar years preceding the year previous to the one for which the determination is made, and covering prevention of planting due to natural disasters and conditions for provisions authorizing payments by the Secretary to cooperators on the 1971, 1972, and 1973 crops of upland cotton, and struck out provisions directing preliminary payments to producers as soon as practicable after July 1 of the year in which the crop is harvested at a rate equal to 15 cents per pound.
Pub. L. 93–125 substituted "prevented from planting any portion" for "prevented from planting, any portion".
Subsec. (e)(4)(A). Pub. L. 93–86, §1(20)(D)–(F), inserted ", if required by the Secretary," before "(ii) the acreage of cropland on the farm devoted in preceding years to soil conserving uses, as determined by the Secretary", substituted "The Secretary is authorized for the 1974 through 1977 crops to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to a percentage of the farm base acreage allotment" for "If the Secretary determines prior to the planting season for such crop that the carryover of upland cotton as of the beginning of the marketing year for the 1972 or 1973 crop will exceed 7.2 million bales, the Secretary is authorized for such crop to limit the acreage planted to upland cotton on the farm in excess of the farm base acreage allotment to such percentage of the farm base acreage allotment as he determines necessary to reduce the total supply to a reasonable level", deleted provision prohibiting grazing during any of the five principal months of the normal growing season as determined by the county committee established pursuant to section 590h(b) of Title 16, and inserted provisions authorizing the raising of hay on set-aside acreage and the production of triticale, oats, and rye.
Subsec. (e)(5). Pub. L. 93–86, §1(20)(G), authorized Secretary in case of programs for 1974 through 1977 crops to pay an appropriate share of cost of practices designed to protect set-aside acreage from erosion, insects, weeds, and rodents and to provide wildlife food plots or wildlife habitat.
1970—Subsec. (e). Pub. L. 91–524 added subsec. (e).
1968—Subsec. (d)(1). Pub. L. 90–559 provided for a one year extension, substituting "1966 through 1970" for "1966, 1967, 1968, and 1969".
1966—Subsec. (d)(3). Pub. L. 89–451 substituted "crop for which there are marketing quotas or voluntary adjustment programs in effect" for "income producing crop in such year" in last sentence.
1965—Subsec. (b). Pub. L. 89–112 provided that the Secretary shall deem an acreage on a farm which he finds was not planted to cotton in 1965 because of flood, drought, or other natural disaster to be an actual acreage of cotton planted on the farm for harvest when that acreage was not subsequently devoted to any price support crop in 1965.
Subsec. (d). Pub. L. 89–321 added subsec. (d).
1964—Subsec. (a). Pub. L. 88–297, §103(b)(1), (2), designated existing provisions as subsec. (a) and provided that the price support for the 1964 cotton crop shall be a national average support price which reflects 30 cents per pound for Middling one-inch cotton.
Subsecs. (b), (c). Pub. L. 88–297, §103(b)(3), added subsecs. (b) and (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–418 effective Jan. 1, 1989, and applicable with respect to articles entered on or after such date, see section 1217(b)(1) of Pub. L. 100–418, set out as a note under section 3001 of Title 19, Customs Duties.
Effective and Termination Dates of 1987 Amendment
Pub. L. 100–203, title I, §1101(d), Dec. 22, 1987, 101 Stat. 1330–2, provided that the amendment made by section 1101(d) is effective only for the 1988 and 1989 crops of extra long staple cotton.
Effective and Termination Dates of 1983 Amendments
Pub. L. 98–88, §4, Aug. 26, 1983, 97 Stat. 494, provided that the amendment made by section 4 is effective beginning with the 1984 crop of extra long staple cotton.
Pub. L. 97–446, title I, §155, Jan. 12, 1983, 96 Stat. 2345, provided that the amendment made by section 155 is effective for the 1982 through 1985 crops of upland cotton.
Effective and Termination Dates of 1981 Amendment
Pub. L. 97–98, title V, §502, Dec. 22, 1981, 95 Stat. 1234, provided that the amendment made by section 502 is effective only for the 1982 through 1985 crops of upland cotton.
Effective and Termination Dates of 1978 Amendment
Pub. L. 95–279, title I, §102, May 15, 1978, 92 Stat. 240, provided that the amendment made by section 102 is effective only with respect to the 1978 through 1981 crops of upland cotton.
Amendment by Pub. L. 95–279 effective Oct. 1, 1978, and applicability to elections by producers receiving loans and payments prior to such date, see section 103 of Pub. L. 95–279, set out as a note under section 1309 of this title.
Effective and Termination Dates of 1977 Amendment
Pub. L. 95–113, title VI, §602, Sept. 29, 1977, 91 Stat. 934, provided that the amendment made by section 602 is effective only with respect to the 1978 through 1981 crops of upland cotton, except as otherwise provided therein.
Effective Date of 1973 Amendment
Pub. L. 93–86, §1(20)(C), Aug. 10, 1973, 87 Stat. 233, provided that the amendment made by section 1(20)(C) is effective beginning with the 1974 crop.
Pub. L. 93–86, §1(20)(D), Aug. 10, 1973, 87 Stat. 234, provided that the amendment made by section 1(20)(D), authorizing Secretary for the 1974 through 1977 crops to limit acreage planted in upland cotton on farm in excess of farm base acreage allotment to a percentage of farm base acreage allotment, is effective beginning with the 1974 crop.
Effective Date of 1970 Amendment
Pub. L. 91–524, title VI, §602, Nov. 30, 1970, 84 Stat. 1374, provided that the amendment made by section 602 is effective beginning with the 1971 crop of upland cotton.
Inapplicability of Section
Subsec. (a) of this 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 9092(b)(2) of this title.
Subsec. (a) of this 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 8782(b)(2) of this title.
Subsec. (a) of this 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 7992(b)(2) of this title.
Subsec. (a) of this section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(B) of this title.
Pub. L. 101–624, title V, §503, Nov. 28, 1990, 104 Stat. 3440, provided that: "Section 103(a) of the Agricultural Act of 1949 (7 U.S.C. 1444(a)) shall not be applicable to the 1991 through 1995 crops."
Pub. L. 99–198, title V, §504, Dec. 23, 1985, 99 Stat. 1418, provided that: "Sections 103(a) and 203 of the Agricultural Act of 1949 (7 U.S.C. 1444(a) and 1446d) shall not be applicable to the 1986 through 1990 crops."
Pub. L. 97–98, title V, §504, Dec. 22, 1981, 95 Stat. 1241, provided that: "Sections 103(a) and 203 of the Agricultural Act of 1949 [sections 1444(a) and 1446d of this title] shall not be applicable to the 1982 through 1985 crops."
Pub. L. 95–113, title VI, §604(c), Sept. 29, 1977, 91 Stat. 939, provided that: "Sections 103(a) and 203 of the Agricultural Act of 1949, as amended [sections 1444(a) and 1446d of this title] shall not be applicable to the 1978 through 1981 crops."
§1444–1. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §103A, as added Dec. 23, 1985, Pub. L. 99–198, title V, §501, 99 Stat. 1407; amended Mar. 20, 1986, Pub. L. 99–260, §2(c), 100 Stat. 46; May 27, 1987, Pub. L. 100–45, §4, 101 Stat. 319; Dec. 22, 1987, Pub. L. 100–203, title I, §§1101(c), 1102(c), 1113(c), 101 Stat. 1330–1, 1330-3, 1330-9, related to loan rates, target prices, disaster payments, acreage limitation program, and land diversion. See Effective and Termination Dates note below.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates
Pub. L. 99–198, title V, §501, Dec. 23, 1985, 99 Stat. 1407, provided that this section is effective only for the 1986 through 1990 crops of upland cotton.
Section, act Oct. 31, 1949, ch. 792, title I, §103B, as added Nov. 28, 1990, Pub. L. 101–624, title V, §501, 104 Stat. 3421; amended Nov. 5, 1990, Pub. L. 101–508, title I, §1101(c), 104 Stat. 1388–1; Dec. 13, 1991, Pub. L. 102–237, title I, §§102(b), 106(b), 107, 113(2), (3), 125, 126, 105 Stat. 1821, 1825, 1827, 1837, 1845; Aug. 10, 1993, Pub. L. 103–66, title I, §1101(a), 107 Stat. 313; May 6, 1994, Pub. L. 103–247, §1(a), 108 Stat. 618; Oct. 13, 1994, Pub. L. 103–354, title I, §119(a)(3), 108 Stat. 3207; Dec. 8, 1994, Pub. L. 103–465, title IV, §401(b)(2), 108 Stat. 4957; Aug. 20, 1996, Pub. L. 104–188, title I, §1954(b)(5), 110 Stat. 1928, related to loans, payments, and acreage reduction programs for 1991 through 1997 crops of upland cotton.
§1444a. Corn and feed grains and cotton programs
(a) Referendum of 1958 corn producers
Not later than December 15, 1958, the Secretary shall conduct a referendum of producers of corn in 1958 in the commercial corn-producing area for 1958 to determine whether such producers favor a price support program as provided in subsection (b) of this section for the 1959 and subsequent crops in lieu of acreage allotments as provided in the Agricultural Adjustment Act of 1938, as amended [7 U.S.C. 1281 et seq.], and price support as provided in section 1441 of this title.
(b) Operative status of certain provisions
Notwithstanding any other provision of law, if less than a majority of the producers voting in the referendum conducted pursuant to subsection (a) favor a price support program as provided in this subsection (b), the following provisions of law shall become inoperative:
(1) [Section enacted section 1329a of this title.]
(2) [Section enacted section 1444b of this title.]
(3) [Section repealed section 1441(d)(4) of this title.]
(c) Cotton research program
The Secretary of Agriculture is hereby authorized and directed to conduct a special cotton research program designed to reduce the cost of producing upland cotton in the United States at the earliest practicable date. There are hereby authorized to be appropriated such sums, not to exceed $10,000,000 annually, as may be necessary for the Secretary to carry out this special research program. The Secretary shall report annually to the Committee on Agriculture of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry of the Senate with respect to the results of such research.
(d) Cotton insect eradication
In order to reduce cotton production costs, to prevent the movement of certain cotton plant insects to areas not now infested, and to enhance the quality of the environment, the Secretary is authorized and directed to carry out programs to destroy and eliminate cotton boll weevils in infested areas of the United States as provided herein and to carry out similar programs with respect to pink bollworms or any other major cotton insect if the Secretary determines that methods and systems have been developed to the point that success in eradication of such insects is assured. The Secretary shall carry out the eradication programs authorized by this subsection through the Commodity Credit Corporation. In carrying out insect eradication projects, the Secretary shall utilize the technical and related services of appropriate Federal, State, private agencies, and cotton organizations. Producers and landowners in an eradication zone, established by the Secretary, who are receiving benefits from any program administered by the United States Department of Agriculture, shall, as a condition of receiving or continuing any such benefits, participate in and cooperate with the eradication project, as specified in regulations of the Secretary.
The Secretary may issue such regulations as he deems necessary to enforce the provisions of this subsection with respect to achieving the compliance of producers and landowners who are not receiving benefits from any program administered by the United States Department of Agriculture. Any person who knowingly violates any such regulation promulgated by the Secretary under this subsection may be assessed a civil penalty of not to exceed $5,000 for each offense. No civil penalty shall be assessed unless the person shall have been given notice and opportunity for a hearing on such charge in the county, parish, or incorporated city of the residence of the person charged. In determining the amount of the penalty the Secretary shall consider the appropriateness of such penalty to the size of the business of the person charged, the effect on the person's ability to continue in business, and the gravity of the violation. Where special measures deemed essential to achievement of the eradication objective are taken by the project and result in a loss of production and income to the producer, the Secretary shall provide reasonable and equitable indemnification from funds available for the project and also provide for appropriate protection of the allotment, acreage history, and average yield for the farm. The cost of the program in each eradication zone shall be determined, and cotton producers in the zone shall be required to pay up to one-half thereof, with the exact share in each zone area to be specified by the Secretary upon his finding that such share is reasonable and equitable based on population levels of the target insect and the degree of control measures normally required. Each producer's pro rata share shall be deducted from his cotton payment under this Act or otherwise collected, as provided in regulations of the Secretary. Insofar as practicable, cotton producers and other persons engaged in cotton production in the eradication zone shall be employed to participate in the work of the project in such zone. Funding of the program shall be terminated at such time as the Secretary determines and reports to the Congress that complete eradication of the insects for which programs are undertaken pursuant to this subsection has been accomplished. Funds in custody of agencies carrying out the program shall, upon termination of such program, be accounted for to the Secretary for appropriate disposition.
The Secretary is authorized to cooperate with the Government of Mexico in carrying out operations or measures in Mexico which he deems necessary and feasible to prevent the movement into the United States from Mexico of any insects eradicated under the provisions of this subsection. The measure and character of cooperation carried out under this subsection on the part of the United States and on the part of the Government of Mexico, including the expenditure or use of funds made available by the Secretary under this subsection, shall be such as may be prescribed by the Secretary. Arrangements for the cooperations authorized by this subsection shall be made through and in consultation with the Secretary of State. The Commodity Credit Corporation shall not make any expenditures for carrying out the purposes of this subsection unless the Corporation has received funds to cover such expenditures from appropriations made to carry out the purposes of this subsection. There are hereby authorized to be appropriated to the Commodity Credit Corporation such sums as the Congress may from time to time determine to be necessary to carry out the purposes of this subsection.
(Oct. 31, 1949, ch. 792, title I, §104, as added Pub. L. 85–835, title II, §201, Aug. 28, 1958, 72 Stat. 993; amended Pub. L. 88–297, title I, §103(a), Apr. 11, 1964, 78 Stat. 174; Pub. L. 91–524, title VI, §611, Nov. 30, 1970, as added Pub. L. 93–86, §1(24), Aug. 10, 1973, 87 Stat. 235; Pub. L. 103–437, §4(a)(6), Nov. 2, 1994, 108 Stat. 4581.)
Editorial Notes
References in Text
The Agricultural Adjustment Act of 1938, as amended, referred to in subsec. (a), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, which is classified principally to chapter 35 (§1281 et seq.) of this title. For complete classification of this Act to the Code, see section 1281 of this title and Tables.
This Act, referred to in subsec. (d), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Codification
Subsec. (b)(1) of this section, as added by section 201 of Pub. L. 85–835, enacted section 330 of Agricultural Adjustment Act of 1938, which is classified as section 1329a of this title.
Subsec. (b)(2) of this section, as added by section 201 of Pub. L. 85–835, enacted section 105 of Agricultural Act of 1949, which is classified as section 1444b of this title.
Subsec. (b)(3) of this section, as added by section 201 of Pub. L. 85–835, repealed section 101(d)(4) of Agricultural Act of 1949, and was executed to text in the repeal of section 1441(d)(4) of this title.
Amendments
1994—Subsec. (c). Pub. L. 103–437 substituted "Committee on Agriculture, Nutrition, and Forestry" for "Committee on Agriculture and Forestry".
1973—Subsec. (d). Pub. L. 91–524, §611, as added Pub. L. 93–86, §1(24), added subsec. (d).
1964—Subsec. (c). Pub. L. 88–297 added subsec. (c).
Statutory Notes and Related Subsidiaries
1958 Referendum for Selection of Alternative Corn Program; Operative Status of Certain Provisions
Corn producers voted for adoption of price support program as provided in subsec. (b) of this section (254,262) rather than alternative corn acreage allotment and price support program (102,907), the ballot making operative sections 1329a and 1444b and repeal of section 1441(d)(4) of this title.
§1444b. Feed grains; price support program
(a) Notwithstanding the provisions of section 1441 of this title, beginning with the 1964 crop, price support shall be made available to producers for each crop of corn at such level, not less than 50 per centum or more than 90 per centum of the parity price therefor, as the Secretary determines will not result in increasing Commodity Credit Corporation stocks of corn: Provided, That in the case of any crop for which an acreage diversion program is in effect for feed grains, the level of price support for corn of such crop shall be at such level not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines necessary to achieve the acreage reduction goal established by him for the crop.
(b) Beginning with the 1959 crop, price support shall be made available to producers for each crop of oats, rye, barley, and grain sorghums at such level of the parity price therefor as the Secretary of Agriculture determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in section 1421(b) of this title.
(Oct. 31, 1949, ch. 792, title I, §105, as added Oct. 31, 1949, ch. 792, title I, §104(b)(2), as added Pub. L. 85–835, title II, §201, Aug. 28, 1958, 72 Stat. 994; amended Pub. L. 87–5, §1, Mar. 22, 1961, 75 Stat. 6; Pub. L. 87–128, title I, §131, Aug. 8, 1961, 75 Stat. 301; Pub. L. 87–425, §1, Mar. 30, 1962, 76 Stat. 50; Pub. L. 87–703, title III, §§301, 305, Sept. 27, 1962, 76 Stat. 612, 614; Pub. L. 88–26, §2, May 20, 1963, 77 Stat. 44; Pub. L. 89–112, §1, Aug. 6, 1965, 79 Stat. 446; Pub. L. 89–321, title III, §301, Nov. 3, 1965, 79 Stat. 1188; Pub. L. 89–451, §2, June 17, 1966, 80 Stat. 202; Pub. L. 89–321, title III, §301, Nov. 3, 1965, as amended Pub. L. 90–559, §1(1), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91–524, title V, §501, Nov. 30, 1970, 84 Stat. 1368; Pub. L. 91–524, title V, §501, Nov. 30, 1970, as amended Pub. L. 93–86, §1(18), Aug. 10, 1973, 87 Stat. 230; Pub. L. 93–86, §1(18), Aug. 10, 1973, 87 Stat. 230; Pub. L. 93–86, §1(18), Aug. 10, 1973, as amended Pub. L. 93–125, §1(d), Oct. 18, 1973, 87 Stat. 450; Pub. L. 93–228, §1(b), Dec. 29, 1973, 87 Stat. 944.)
Editorial Notes
Codification
Pub. L. 91–524, as amended by Pub. L. 93–86, amended section generally by substantially revising subsecs. (a) to (e) and enacting subsecs. (f) to (i), effective only through the 1977 crops of feed grains. See 1970 and 1973 Amendment notes and Effective and Termination Dates of 1970 and 1973 Amendment notes below. Prior to such amendment by Pub. L. 91–524 and Pub. L. 93–86, subsec. (c) was applicable only to the 1961 to 1963 crops of feed grains, subsec. (d) was applicable only to the 1964 and 1965 crops of feed grains, and subsec. (e) was applicable only to the 1966 through 1970 crops of feed grains.
Amendments
1973—Pub. L. 93–228 amended feed grains program for 1974 through 1977, as described below.
Pub. L. 93–125 amended feed grain loan and purchases price support program for 1974 through 1977, as described below.
Pub. L. 93–86 temporarily enacted feed grain loans and purchases price support program for 1974 through 1977, as described below. See Effective and Termination Dates of 1973 Amendment note below.
Pub. L. 91–524, §501, as amended Pub. L. 93–86, §1(18)(A), reenacted introductory text without change.
Subsec. (a)(1). Pub. L. 91–524, §501, as amended Pub. L. 93–86, §1(18)(A), increased minimum corn crop support level from $1.00 to $1.10 per bushel.
Subsec. (a)(2). Pub. L. 91–524, §501, as amended Pub. L. 93–36, §1(18)(A), reenacted par. (2) provisions without change.
Subsec. (b)(1). Pub. L. 91–524, §501, as amended Pub. L. 93–86, §1(18)(B), added par. (1). Former par. (1) related to subject matter as described in 1970 Amendment note for subsec. (b)(1) of this section.
Subsec. (b)(1) last sentence. Pub. L. 93–228 substituted "(or of wheat, or cotton planted in lieu of the allotted crop)" for "(or other nonconserving crop planted instead of feed grains)".
Subsec. (b)(2). Pub. L. 91–524, §501, as amended Pub. L. 93–86, §1(18)(B), added par. (2). Former par. (2) made payments with respect to a farm available on 50 per centum of the feed grain base for the farm and for computation of the payments on the basis of the yield established for the farm for the preceding crop with such adjustments as the Secretary determines necessary to provide a fair and equitable yield.
Subsec. (b)(3). Pub. L. 91–524, §501, as amended Pub. L. 93–86, §1(18)(B), substituted in: first sentence, "the feed grain allotment for the farm, the feed grain allotment for the farm for the succeeding crops shall be reduced by the percentage by which the planted acreage is less than the feed grain allotment for the farm, but such reduction shall not exceed 20 per centum of the feed grain allotment" for "the portion of the feed grain base for the farm on which payments are available under this subsection, the feed grain base for the farm for the succeeding crops shall be reduced by the percentage by which the planted acreage is less than such portion of the feed grain base for the farm, but such reduction shall not exceed 20 per centum of the feed grain base"; second sentence, including proviso, "feed grain allotment" for "feed grain base"; third sentence, "feed grain allotments" for "feed grain bases"; fourth sentence, "90 per centum of the feed grain allotment" for "90 per centum of the portion of the feed grain base on which payments are made available" and "100 per centum of such allotment" for "100 per centum of such portion"; and sixth sentence "effective operation of the program" for "effective operation of the feed grain or soybean program"; and authorized acreage devoted to guar, castor beans, cotton, triticale, oats, rye, or such other crops as the Secretary may deem appropriate, to be considered as feed grain acreage.
Subsec. (c)(1) second sentence. Pub. L. 93–86, §1(18)(D), formerly §1(18)(C [second]), renumbered by Pub. L. 93–125, §1(d)(ii), substituted in item (i) "feed grain allotment" for "feed grain base", inserted preceding item (ii) ", if required by the Secretary", and substituted in item (ii) "soil conserving uses" for "soil-conserving uses".
Subsec. (c)(1) third sentence. Pub. L. 93–86, §1(18)(E), formerly §1(18)(D), renumbered by Pub. L. 93–125, §1(d)(ii), substituted "The Secretary is authorized for the 1974 through 1977 crops to limit the acreage planted to feed grains on the farm to a percentage of the farm acreage allotment." for "The Secretary is authorized for the 1971, 1972, and 1973 crops to limit the acreage planted to feed grains on the farm to such percentage of the feed grain base as he determines necessary to provide an orderly transition to the program provided for under this section."
Subsec. (c)(1) fifth sentence. Pub. L. 93–86, §1(18)(D), formerly §1(18)(C [second]), renumbered by Pub. L. 93–125, §1(d)(ii), substituted "1971 through 1977" for "1971, 1972, 1973".
Subsec. (c)(1) last sentence. Pub. L. 93–86, §1(18)(C), as amended Pub. L. 93–125, §1(d)(i), authorized set-aside acreage to be devoted to hay and production of triticale, oats, and rye, and deleted item (1) and (2) designation of existing provisions, and former introductory text reading "Grazing shall not be permitted during any of the five principal months of the normal growing season as determined by the county committee established pursuant to section 590h(b) of title 16, and subject to this limitation", and provided for such provisions as run-in rather than new-paragraph text.
Subsec. (c)(3). Pub. L. 93–86, §1(18)(G), formerly §1(18)(F), renumbered by Pub. L. 93–125, §1(d)(ii), inserted after provision for devotion of set-aside acreage and diverted acreage to wildlife food plots or wildlife habitat the sentence "The Secretary may, in the case of programs for the 1974 through 1977 crops, pay an appropriate share of the cost of practices designed to carry out the purposes of the foregoing sentences."
Subsec. (e)(1). Pub. L. 93–86, §1(18)(F), formerly §1(18)(E), renumbered by Pub. L. 93–125, §1(d)(ii), struck out provision reading "For the purpose of this section, the feed grain base shall be the average acreage devoted on the farm to corn, grain sorghums and, if designated by the Secretary, barley in 1959 and 1960."
Subsec. (e)(2). Pub. L. 93–86, §1(18)(F), formerly §1(18)(E), renumbered by Pub. L. 93–125, §1(d)(ii), substituted "farm grain allotments" for "farm grain bases" wherever appearing.
Subsec. (e)(3). Pub. L. 93–86, §1(18)(F), formerly §1(18)(E), renumbered by Pub. L. 93–125, §1(d)(ii), struck out provisions respecting reservation for farms in a State for any year for apportionment to farms without 1959 and 1960 acreage, apportionment factors, prohibition against reflection of new cropland by such reserved allocation, and consideration of farm feed grain base as farm feed grain acreage for 1959 and 1960 crop years.
Subsec. (g). Pub. L. 93–86, §1(18)(F), formerly §1(18)(E), renumbered by Pub. L. 93–125, §1(d)(ii), struck out provisions for preliminary payments, time and rate of payment, and reduction of preliminary payment rate.
1970—Pub. L. 91–524 temporarily enacted feed grains loans and purchases price support program for 1971, 1972, and 1973, as described below. See Effective and Termination Dates of 1970 Amendment note below.
Pub. L. 91–524 substituted as introductory text "Notwithstanding any other provision of law" for former subsec. (a) introductory text "Notwithstanding the provisions of section 1441 of this title".
Subsec. (a)(1). Pub. L. 91–524 substituted par. (1) provisions making loans and purchases available on corn crop at such level, not less than $1.00 per bushel nor in excess of 90 per centum of the parity price therefor, as the Secretary determines will encourage exportation of feed grains and not result in excessive total stocks of feed grains in the United States for former subsec. (a) provisions for such corn price support level, beginning with 1964 crop, not less than 50 per centum or more than 90 per centum of the parity price therefor, as the Secretary determines will not result in increasing Commodity Credit Corporation stocks of corn, including proviso for such corn price support level, in the case of any crop for which an acreage diversion program is in effect for feed grains, not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines necessary to achieve the acreage reduction goal established by him for the crop.
Subsec. (a)(2). Pub. L. 91–524 substituted par. (2) provisions making loans and purchases available on each crop of barley, oats, and rye, at such level as the Secretary determines is fair and reasonable in relation to the level that loans and purchases are made available for corn, taking into consideration the feeding value of such commodity in relation to corn and other factors specified in section 1421(b) of this title, and on each crop of grain sorghums at such level as the Secretary determines is fair and reasonable in relation to the level that loans and purchases are made available for corn, taking into consideration the feeding value and average transportation costs to market of grain sorghums in relation to corn for former subsec. (b) provisions for such price support level on each crop of oats, rye, barley, and grain sorghums, beginning with the 1959 crop, at such level of the parity price therefor as the Secretary of Agriculture determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in section 1421(b) of this title.
Subsec. (b)(1). Pub. L. 91–524 made payments available for crops of corn, grain sorghums, and barley; prescribed as payment rate for corn such rate as, together with the national average market price received by farmers during first five months of the marketing year for the crop would not be less than (A) $1.35 per bushel, or (B) 70 per centum of the parity price of corn as of the beginning of the marketing year, whichever was the greater; prescribed as payment rate for grain sorghums and barley such rate as was fair and reasonable in relation to the rate at which payments were made available for corn; and prescribed rate of payment for 1973 crop would not be such as would result in a total amount of payments which Secretary estimated would be made pursuant to this subsection with respect to 1973 crop of feed grains above total amount of payments made pursuant to this subsection with respect to 1972 crop of feed grains by reason of level specified in clause (B) being fixed above 68 per centum of the parity price for the corn.
Subsec. (b)(2). Pub. L. 91–524 made payments with respect to a farm available on 50 per centum of the feed grain base for the farm and for computation of the payments on the basis of the yield established for the farm for the preceding crop with such adjustments as the Secretary determines necessary to provide a fair and equitable yield.
Subsec. (b)(3). Pub. L. 91–524 added par. (3).
Former subsec. (b) provided that "Beginning with the 1959 crop, price support shall be made available to producers for each crop of oats, rye, barley, and grain sorghums at such level of the parity price therefor as the Secretary of Agriculture determines is fair and reasonable in relation to the level at which price support is made available for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in section 1421(b) of this title," and is now incorporated in subsec. (a)(2) of this section.
Subsec. (c)(1). Pub. L. 91–524 required cropland setaside, taking into consideration excessive stocks and adequate carryover, and provided for conservation uses acreage, crop year feed grain acreage limitation, "feed grains" for consideration of wheat as feed grain acreage, consideration of section 1339c feed grains diversion program, grazing restriction, and authorization of set-aside acreage for grazing and production of other commodities.
Subsec. (c)(2). Pub. L. 91–524 provided for land diversion payments for conservation uses acreage and for conservation uses acreage limitation.
Subsec. (c)(3). Pub. L. 91–524 required protective measures and provided for wildlife use standards and additional payments for public use.
Subsec. (c)(4). Pub. L. 91–524 provided for filing of participation agreement of farm operators, soil conserving uses acreage requirement, and mutual termination of agreement because of emergencies or limited supplies.
Subsec. (c)(5), (6). Pub. L. 91–524 struck out pars. (5) and (6) which related to price support for 1963 crop of corn and to eligibility for price support on 1963 crop of corn, grain sorghums, and barley.
Subsec. (d). Pub. L. 91–524 redesignated ninth sentence of former subsec. (e) as (d) and substituted "sharing of payments under this section among producers on the farm on a fair and equitable basis" for "sharing of such certificates among producers on the farm on the basis of their respective shares in the feed grain crop produced on the farm, or the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable".
Subsec. (e). Pub. L. 91–524 added subsec. (e).
Subsec. (f). Pub. L. 91–524 redesignated last sentence of former subsec. (e) as (f) and substituted "under this section precludes the making of loans, purchases, and payments" and "make such loans, purchases, and payments" for "under this subsection (e) and subsection (e) of this section preclude the making of payments-in-kind" and "make such payments-in-kind".
Subsecs. (g) to (i). Pub. L. 91–524 added subsecs. (g) to (i).
1968—Pub. L. 90–559 amended feed grains price support program for 1966 through 1969, extending such program through 1970.
Subsec. (e). Pub. L. 89–321, as amended Pub. L. 90–559, substituted "1970" for "1969" in provision of text "1966 through 1970 crops of feed grains".
1966—Pub. L. 89–451 amended feed grains price support program for 1966 through 1969.
Subsec. (e). Pub. L. 89–451 substituted "planted to any other crop for which there are marketing quotas or voluntary adjustment programs in effect" for "planted to any other income-producing crop during such year" in sixth sentence.
1965—Pub. L. 89–321 enacted feed grains price support program for 1966 through 1969.
Pub. L. 89–112 amended feed grains price support program for 1965.
Subsec. (d). Pub. L. 89–112 inserted eleventh sentence "An acreage on the farm which the Secretary finds was not planted to feed grains in 1965 because of flood, drought, or other natural disaster shall be deemed by the Secretary to be an actual acreage of feed grains planted on the farm for harvest for purposes of this subsection, provided such acreage is not subsequently devoted to any price supported crop for 1965."
Subsec. (e). Pub. L. 89–321, in adding subsec. (e), enacted feed grains price support program for 1966 through 1969.
Subsec. (e) first sentence. Pub. L. 89–321 required as a condition of eligibility for price support for 1966 through 1969 crops of feed grains on crop of feed grains included in any acreage diversion program under section 590p(i) of Title 16, participation of producer in the diversion program to the extent prescribed by the Secretary, and as a condition of eligibility for such price support if a diversion program was not in effect for 1966 through 1969 crops, that feed grain base be not exceeded by producer, provided that acreage on farm diverted from production of feed grains pursuant to contract under Cropland Adjustment Program shall be deemed acreage diverted from production of feed grains for purposes of eligibility requirements, and excepted producer of malting barley from requirement of participation in the acreage diversion program for feed grains if such producer had previously produced a malting variety of barley, planted barley only of an acceptable malting variety for harvest, did not devote barley farm acreage in excess of 110 per centum of average acreage devoted to barley in 1959 and 1960, did not devote corn and grain sorghums farm acreage in excess of average acreage devoted to corn and grain sorghums in 1959 and 1960, and did not devote oats and rye acreage in 1959 and 1960 to production of wheat pursuant to section 1339c of this title.
Subsec. (e) second sentence. Pub. L. 89–321 incorporated third sentence of former subsec. (d) as second sentence of subsec. (e) and substituted "price-support" and "payments-in-kind" for "price support" and "payments in kind".
Subsec. (e) third sentence. Pub. L. 89–321 made payments-in-kind available on maximum permitted acreage and authorized the Secretary to make available the same total amount on a smaller acreage or acreages at a higher rate or rates.
Subsec. (e) fourth sentence. Pub. L. 89–321 incorporated fourth sentence of former subsec. (d) as fourth sentence of subsec. (e), substituted bushel determination provision calling for multiplication of that part of the actual acreage of such feed grain planted on the farm for harvest on which the Secretary made such payments available by the farm projected yield per acre for prior provision calling for such multiplication of actual acreage of such feed grain planted on the farm for harvest by the adjusted average yield per acre, and inserted proviso respecting consideration of soybean as feed grain acreage to such extent and subject to such terms and conditions as Secretary determined would not impair effective operation of price support program and proviso deeming entire feed grains acreage as so planted when 90 per centum of feed grains acreage permitted to be planted has been so planted.
Subsec. (e) fifth sentence. Pub. L. 89–321 authorized reduction of that portion of the support price which was made available through loans and purchases for the 1966 through 1969 crops below the loan level for the 1965 crop by such amounts and in such stages as might be necessary to promote increased participation in the feed grain program, taking into account increases in yields, but so as not to disrupt the feed grain and livestock economy, without modifying or affecting Secretary's discretion to maintain or increase total price support levels to cooperators.
Subsec. (e) sixth sentence. Pub. L. 89–321 incorporated eleventh sentence of former subsec. (d) as sixth sentence of subsec. (e) and substituted "planted to feed grains" for "planted to feed grains in 1965" and "deemed to be an actual acreage of feed grains planted for harvest for purposes of such payments provided such acreage is not subsequently planted to any other income-producing crop during such year" for "deemed by the Secretary to be an actual acreage of feed grains planted on the farm for harvest for purposes of this subsection, provided such acreage is not subsequently devoted to any price supported crop for 1965".
Subsec. (e) seventh sentence. Pub. L. 89–321 incorporated sixth sentence of former subsec. (d) as seventh sentence of subsec. (e).
Subsec. (e) eighth sentence. Pub. L. 89–321 incorporated seventh sentence of former subsec. (d) as eighth sentence of subsec. (e) and substituted "Payments-in-kind" for "Such payments in kind", parenthetical text "valued by the Secretary at not less than the current support price made available through loans and purchases" for "valued by the Secretary at not less than the current support price minus that part of the current support price made available through payments in kind", and "in accordance with regulations prescribed by the Secretary and notwithstanding any other provision of law" for "and, notwithstanding any other provisions of law".
Subsec. (e) ninth sentence. Pub. L. 89–321 incorporated ninth sentence of former subsec. (d) as ninth sentence of subsec. (e) and substituted "basis of their respective shares in the feed grain crop produced on the farm, or the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be fair and equitable, the Secretary shall provide for such sharing on such other basis as he may determine to be fair and equitable" for "basis of their respective shares in the crop produced on the farm with respect to which such certificates are issued, or the proceeds therefrom".
Subsec. (e) tenth sentence. Pub. L. 89–321 incorporated tenth sentence of former subsec. (d) as tenth sentence of subsec. (e) and substituted ", in accordance with the provisions of such program," for "in accordance with the provisions of such program".
Subsec. (e) eleventh sentence. Pub. L. 89–321 authorized the Secretary, where the failure of a producer to comply with the terms and conditions of the programs formulated under subsecs. (d) and (e) of this section precluded making payments-in-kind, to make such payments-in-kind in such amounts as he determined to be equitable in relation to the seriousness of the default.
1963—Pub. L. 88–26 amended feed grains support program for 1962, and enacted feed grains support program for 1964 and 1965, as described hereunder.
Subsec. (a). Pub. L. 88–26, §2(1), inserted proviso for such corn price support level, in the case of any crop for which an acreage diversion program is in effect for feed grains, not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines necessary to achieve the acreage reduction goal established by him for the crop.
Subsec. (d). Pub. L. 88–26, §2(2), in adding subsec. (d), enacted feed grains support program for 1964 and 1965.
Subsec. (d) first sentence. Pub. L. 88–26, §2(2), made subsec. (d) applicable to 1964 and 1965 feed grains crops if an acreage diversion program was in effect under section 590p(h) of title 16.
Subsec. (d) second sentence. Pub. L. 88–26, §2(2), required as a condition of eligibility for price support on crop of feed grain included in the acreage diversion program, participation of producer in the diversion program to the extent prescribed by the Secretary, and as a condition of eligibility for such price support if a diversion program was not in effect for 1964 or 1965 crop, that feed grain base be not exceeded by producer and excepted producer of malting barley from requirement of participation in the acreage diversion program for feed grains if such producer had previously produced a malting variety of barley, planted barley only of an acceptable malting variety for harvest, did not devote barley farm acreage in excess of 110 per centum of average acreage devoted to barley in 1959 and 1960, did not devote corn and grain sorghums farm acreage in excess of average acreage devoted to corn and grain sorghums in 1959 and 1960, and did not devote oats and rye acreage in 1959 and 1960 to production of wheat pursuant to section 1339c of this title.
Subsec. (d) third sentence. Pub. L. 88–26, §2(2), authorized payments in kind for such portion of support price for any feed grain included in the acreage diversion program to assure that benefits of price support and diversion programs inure primarily to those producers who cooperate in feed grains acreage reductions.
Subsec. (d) fourth sentence. Pub. L. 88–26, §2(2), provided for payments in kind on number of bushels of feed grain determined by multiplying actual acreage of feed grain planted on the farm for harvest by adjusted average yield per acre.
Subsec. (d) fifth sentence. Pub. L. 88–26, §2(2), made base period used in determining adjusted average yield the same as used for purposes of acreage diversion program under section 590p(h) of title 16.
Subsec. (d) sixth sentence. Pub. L. 88–26, §2(2), authorized 50 per centum payments to producers in advance of determination of performance.
Subsec. (d) seventh sentence. Pub. L. 88–26, §2(2), provided for payments in kind through issuance of negotiable certificates, redemption for feed grains by the CCC (such feed grains to be valued by the Secretary at not less than the current support price minus that part of the current support price made available through payments in kind, plus reasonable carrying charges), and for assistance of CCC in marketing of the certificates.
Subsec. (d) eighth sentence. Pub. L. 88–26, §2(2), provided for deduction from value of negotiable certificates, not presented for redemption within thirty days of date of issuance, or reasonable costs of storage and other carrying charges, for the period beginning thirty days after issuance and ending with date of presentation for redemption.
Subsec. (d) ninth sentence. Pub. L. 88–26, §2(2), required the Secretary to provide for sharing of negotiable certificates among producers on the farm on basis of respective shares in the crop produced on the farm with respect to which such certificates were issued, or the proceeds therefrom.
Subsec. (d) tenth sentence. Pub. L. 88–26, §2(2), conditioned availability of price support for feed grains included in acreage diversion program, where operator of farm elected to participate in the acreage diversion program, to producers on farm diverting from feed grain production under the program an acreage on the farm equal to number of acres which operator agreed to divert, and agreement so provided.
1962—Pub. L. 87–703 enacted feed grains price support program for 1963.
Pub. L. 87–425 amended feed grains support program for 1962.
Subsec. (a). Pub. L. 87–703, §305, substituted provisions for such corn price support level, beginning with 1964 crop, not less than 50 per centum or more than 90 per centum of the parity price therefor, as the Secretary determines will not result in increasing Commodity Credit Corporation stocks of corn for former corn price support, beginning with 1959 crop, at 90 per centum of the average price received by farmers during the three calendar years immediately preceding the calendar year in which the marketing year for such crops began, adjusted to offset the effect on such price of any abnormal quantities of low-grade corn marketed during any of such year, provided the level of price support for any crop of corn be not less than 65 per centum of the parity price therefor.
Subsec. (c). Pub. L. 87–703, §301, in adding pars. (5) and (6), enacted feed grains price support program for 1963, as described hereunder.
Subsec. (c)(4). Pub. L. 87–425 excepted producer of barley on a summer-fallow farm from requirement of participation in special agricultural conservation program for 1962 for barley if such producer did not devote barley farm acreage in excess of average acreage devoted to barley in 1959 and 1960 plus the acreage devoted to summer fallow in 1961 which was diverted from the production of wheat under the special 1962 wheat program and did not devote corn, grain sorghums, and barley farm acreage in excess of 80 per centum of average acreage devoted to corn, grain sorghums, and barley in 1959 and 1960.
Subsec. (c)(5). Pub. L. 87–703, §301, required establishment of 1963 corn crop price support at such level not less than 65 per centum of parity price as Secretary might determine; provided for: payments in kind in amount of 18 cents per bushel of support price for corn, and comparable portion of support price for grain sorghums and barley; such payments on number of bushels of such feed grain determined by multiplying actual acreage of such feed grain planted on the farm for harvest in 1963 by the adjusted average yield per acre for 1959 and 1960 crop acreage of such feed grain; such payments through issuance of negotiable certificates redeemable by CCC for corn, grain sorghums, and barley (such feed grains to be valued by the Secretary at not less than support price minus that part of support price made available through payments in kind) and for CCC assistance to producer in marketing of such certificates; deduction from value of the certificate, in the case of any certificate not presented for redemption within 30 days of date of its issuance, reasonable costs of storage and other carrying charges for period beginning 30 days after its issuance and ending with the date of its presentation for redemption; and basis for sharing of such certificate among producers on the farm; and conditioned availability of price support to inclusion of prescribed acreage diversion where operator of farm elected to participate in the special agricultural conservation program for 1963, for corn, grain sorghums, and barley.
Subsec. (c)(6). Pub. L. 87–703, §301, required as a condition of eligibility for price support on 1963 crop of corn, grain sorghums, and barley participation of producer in special agricultural conservation program for 1963 for corn, grain sorghums, and barley to the extent prescribed by the Secretary and excepted producer of malting barley from requirement of participation in special agricultural conservation program for 1963 if such producer had previously produced a malting variety of barley, planted barley only of an acceptable malting variety for harvest in 1963, and did not devote barley farm acreage in excess of 110 per centum of average acreage devoted to barley in 1959 and 1960, and did not devote corn and grain sorghums farm acreage in excess of average acreage devoted to corn and grain sorghums in 1959 and 1960.
1961—Pub. L. 87–128 enacted feed grains price support program for 1962.
Pub. L. 87–5 enacted special feed grains price support program for 1961.
Subsec. (c). Pub. L. 87–128, in adding pars. (3) and (4), enacted feed grains price support program for 1962.
Pub. L. 87–5, in adding pars. (1) and (2), enacted special feed grains price support program for 1961.
Subsec. (c)(1). Pub. L. 87–5 required establishment of 1961 corn crop price support at such level not less than 65 per centum of parity price as Secretary might determine and made corn and grain sorghums price support available on not to exceed the normal production of 1961 acreage of corn and grain sorghums of each eligible farm based on average yield per acre for 1959 and 1960 crop acreage.
Subsec. (c)(2). Pub. L. 87–5 required as a condition of eligibility for price support on 1961 crop of corn, grain sorghums, and any other feed grain designated by the Secretary, participation of producer in special agricultural conservation program for 1961 for corn and grain sorghums to the extent prescribed by the Secretary.
Subsec. (c)(3). Pub. L. 87–128 required establishment of 1962 corn crop price support at such level not less than 65 per centum of parity price as Secretary might determine and made corn, grain sorghums, and barley price support available on not to exceed the normal production of 1962 acreage of corn, grain sorghums, and barley of each eligible farm based on average yield per acre for 1959 and 1960 crop acreage.
Subsec. (c)(4). Pub. L. 87–128 required as a condition of eligibility for price support on 1962 crop of corn and grain sorghums participation of producer in special agricultural conservation program for 1962 for corn and grain sorghums to the extent prescribed by the Secretary and prohibited farm acreage devoted to barley in excess of average acreage devoted to barley in 1959 and 1960; required as a condition of eligibility for price support on 1962 crop of barley participation of producer in special agricultural conservation program for 1962 for barley to the extent prescribed by the Secretary and prohibited farm acreage devoted to corn and grain sorghums in excess of average acreage devoted to corn and grain sorghums in 1959 and 1960; and excepted producer of malting barley from requirement of participation in special agricultural conservation program for 1962 for barley if such producer had previously produced a malting variety of barley, planted barley only of an acceptable malting variety for harvest in 1962, and did not devote barley farm acreage in excess of 110 per centum of average acreage devoted to barley in 1959 and 1960, and did not devote corn and grain sorghums farm acreage in excess of average acreage devoted to corn and grain sorghums in 1959 and 1960.
1958—Pub. L. 85–835 enacted corn and feed grains price support provisions, beginning with the 1959 crop.
Subsec. (a). Pub. L. 85–835 made corn price support available, beginning with 1959 crop, at 90 per centum of average price received by farmers during three calendar years immediately preceding calendar year in which marketing year for the crop begins, adjusted to offset effect on such price of any abnormal quantities of low-grade corn marketed during any of such year, with minimum price support level at 65 per centum of parity price for any crop of corn.
Subsec. (b). Pub. L. 85–835 made price support available, beginning with 1959 crop, for each crop of oats, rye, barley, and grain sorghums, at such level of parity price as Secretary of Agriculture determined was fair and reasonable in relation to price support level for corn, taking into consideration the feeding value of such commodity in relation to corn, and the other factors set forth in section 1421(b) of this title.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates of 1973 Amendment
Pub. L. 91–524, title V, §501, as amended by Pub. L. 93–86, §1(18), Aug. 10, 1973, 87 Stat. 230, provided that the amendment made by section 501 is effective only with respect to the 1974 through 1977 crops of feed grains.
Pub. L. 91–524, title V, §501(a), formerly §501, as renumbered and amended by Pub. L. 93–86, §1(18)(A), Aug. 10, 1973, 87 Stat. 230, provided that the amendment made by section 501(a) is effective only with respect to the 1971 through 1977 crops of feed grains.
Pub. L. 91–524, title V, §501(b), as added by Pub. L. 93–86, §1(18)(B), Aug. 10, 1973, 87 Stat. 230, provided that the amendment made by section 501(b) is effective only with respect to the 1974 through 1977 crops of feed grains.
Effective and Termination Dates of 1970 Amendment
Pub. L. 91–524, title V, §501, Nov. 30, 1970, 84 Stat. 1368, provided that the amendment made by section 501 is effective only with respect to the 1971, 1972, and 1973 crops of feed grains.
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 9092(b)(3) of this title.
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 8782(b)(3) of this title.
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 7992(b)(3) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(C) of this title.
Pub. L. 101–624, title IV, §402, Nov. 28, 1990, 104 Stat. 3419, provided that: "Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be applicable to the 1991 through 1995 crops of feed grains."
Pub. L. 99–198, title IV, §402, Dec. 23, 1985, 99 Stat. 1406, provided that: "Section 105 of the Agricultural Act of 1949 (7 U.S.C. 1444b) shall not be applicable to the 1986 through 1990 crops of feed grains."
Pub. L. 97–98, title IV, §402, Dec. 22, 1981, 95 Stat. 1234, provided that: "Section 105 of the Agricultural Act of 1949 [this section] shall not be applicable to the 1982 through 1985 crops of feed grains."
Pub. L. 95–113, title V, §503, Sept. 29, 1977, 91 Stat. 933, provided that: "Section 105 of the Agricultural Act of 1949, as amended [this section], shall not be applicable to the 1977 through 1981 crops of feed grains."
Pub. L. 95–113, title V, §504, Sept. 29, 1977, 91 Stat. 933, provided that: "Except as otherwise provided in section 501 of this Act [enacting section 1444c(a)–(c) of this title effective only for the 1977 through 1981 crops of feed grains], section 105(a) and (b)(1) of the Agricultural Act of 1949, as added by the Agricultural Act of 1970, as amended [subsecs. (a) and (b)(1) of this section as amended by Pub. L. 91–524, as amended], to be effective only for the 1974 through 1977 crops of feed grains, shall not be applicable to the 1977 crop of feed grains."
1958 Referendum for Selection of Alternative Corn Program; Operative Status of Certain Provisions
Corn producers voted for adoption of price support program as provided in section 1444a(b) of this title (254,262) rather than alternative corn acreage allotments and price support program (102,907), the ballot making operative sections 1329a and 1444b and repeal of section 1441(d)(4) of this title.
Section 1444c, act Oct. 31, 1949, ch. 792, title I, §105A, as added Sept. 29, 1977, Pub. L. 95–113, title V, §§501, 502, 91 Stat. 928, 930; amended Mar. 18, 1980, Pub. L. 96–213, §§2, 4(c), 94 Stat. 119, 120; Sept. 26, 1980, Pub. L. 96–365, title II, §201(c), 94 Stat. 1320, Dec. 3, 1980, Pub. L. 96–494, title II, §202(a), 94 Stat. 2570, related to loan rates and target prices for 1977 through 1981 feed grain crops.
Section 1444d, act Oct. 31, 1949, ch. 792, title I, §105B, as added Dec. 22, 1981, Pub. L. 97–98, title IV, §401, 95 Stat. 1227; amended Sept. 8, 1982, Pub. L. 97–253, title I, §§123, 124, 96 Stat. 769; Sept. 29, 1983, Pub. L. 98–100, §1(a), 97 Stat. 718; Apr. 10, 1984, Pub. L. 98–258, title II, §§201–203, 98 Stat. 132, 133, related to loan rates and target prices for 1982 through 1985 feed grain crops.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1421 of this title.
§1444e. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §105A, formerly §105C, as added Dec. 23, 1985, Pub. L. 99–198, title IV, §401, 99 Stat. 1395; amended Feb. 28, 1986, Pub. L. 99–253, §2, 100 Stat. 36; Mar. 20, 1986, Pub. L. 99–260, §§2(b), 7(b), 100 Stat. 46, 50; May 27, 1987, Pub. L. 100–45, §3, 101 Stat. 319; Dec. 22, 1987, Pub. L. 100–203, title I, §§1101(b), 1102(b), 1103, 1107, 1113(b), 1202, 101 Stat. 1330–1 to 1330-3, 1330-5, 1330-9, 1330-11; Dec. 12, 1989, Pub. L. 101–220, §1, 103 Stat. 1876; Dec. 19, 1989, Pub. L. 101–239, title I, §§1002(b), 1003(b)(2), 103 Stat. 2107, 2108; renumbered §105A, Nov. 28, 1990, Pub. L. 101–624, title IV, §401(2), 104 Stat. 3400, related to loan rates, target prices, disaster payments, acreage limitation and set-aside programs, and land diversion. See Effective and Termination Dates note below.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates
Pub. L. 99–198, title IV, §401, Dec. 23, 1985, 99 Stat. 1395, provided that this section is effective only for the 1986 through 1990 crops of feed grains.
§1444e–1. Loans and purchases for 1986 through 1996 crops of corn
(a) Notwithstanding any other provision of law, effective only for each of the 1986 through 1996 crops of feed grains, the Secretary of Agriculture may make available loans and purchases, as provided in this section, to producers on a farm who—
(1) for silage—
(A) cut corn (including mutilated corn) that the producers have produced in such crop year; or
(B) purchase or exchange corn (including mutilated corn) that has been produced in such crop year by another producer (including a producer that is not participating in an acreage limitation or set-aside program for such crop established by the Secretary); and
(2) participate in an acreage limitation or set-aside program for such crop of corn established by the Secretary.
(b) Such loans and purchases may be made on a quantity of corn of the same crop, other than the corn obtained for silage, acquired by the producer equivalent to a quantity determined by multiplying—
(1) the acreage of corn obtained for silage; by
(2) the lower of the farm program payment yield or the actual yield on a field, as determined by the Secretary, that is similar to the field from which such silage was obtained.
(Pub. L. 99–198, title IV, §403, Dec. 23, 1985, 99 Stat. 1406; Pub. L. 101–624, title IV, §403, Nov. 28, 1990, 104 Stat. 3419.)
Editorial Notes
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Amendments
1990—Subsec. (a). Pub. L. 101–624 substituted "1996" for "1990" in introductory provisions.
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.
Section, act Oct. 31, 1949, ch. 792, title I, §105B, as added Nov. 28, 1990, Pub. L. 101–624, title IV, §401(3), 104 Stat. 3401; amended Nov. 5, 1990, Pub. L. 101–508, title I, §§1101(b), 1102(b), 1103(b), 104 Stat. 1388–1, 1388-2; Dec. 13, 1991, Pub. L. 102–237, title I, §§102(c), 103(a), 105, 106(c), 108, 113(4), (5), 114(b)(1), 105 Stat. 1822, 1823, 1825, 1828, 1837, 1839; Aug. 10, 1993, Pub. L. 103–66, title I, §1103, 107 Stat. 315; May 6, 1994, Pub. L. 103–247, §1(b), 108 Stat. 618; Oct. 13, 1994, Pub. L. 103–354, title I, §119(a)(4), 108 Stat. 3207, related to loans, payments, and acreage reduction programs for 1991 through 1995 crops of feed grains.
Section, Pub. L. 101–624, title IV, §404, Nov. 28, 1990, 104 Stat. 3419, related to price support for high moisture feed grains. See section 1444f(q) of this title.
Section 1445, act Oct. 31, 1949, ch. 792, title I, §106, as added Pub. L. 86–389, §1, Feb. 20, 1960, 74 Stat. 6; amended Pub. L. 89–12, §3, Apr. 16, 1965, 79 Stat. 72; Pub. L. 92–10, §3, Apr. 14, 1971, 85 Stat. 27; Pub. L. 97–218, title I, §102, July 20, 1982, 96 Stat. 201; Pub. L. 98–59, §1, July 25, 1983, 97 Stat. 296; Pub. L. 98–180, title II, §202, Nov. 29, 1983, 97 Stat. 1144; Pub. L. 99–157, §6(a), Nov. 15, 1985, 99 Stat. 818; Pub. L. 99–272, title I, §§1102, 1105(b), Apr. 7, 1986, 100 Stat. 84, 90; Pub. L. 100–203, title I, §1104(a), Dec. 22, 1987, 101 Stat. 1330–4; Pub. L. 101–508, title I, §1105(f), Nov. 5, 1990, 104 Stat. 1388–6; Pub. L. 103–66, title I, §1106(b)(1), Aug. 10, 1993, 107 Stat. 321; Pub. L. 103–465, title IV, §422(b), Dec. 8, 1994, 108 Stat. 4964, related to tobacco price support levels for 1960 and subsequent years.
Section 1445–1, act Oct. 31, 1949, ch. 792, title I, §106A, as added Pub. L. 97–218, title I, §101, July 20, 1982, 96 Stat. 197; amended Pub. L. 98–180, title II, §203, Nov. 29, 1983, 97 Stat. 1145; Pub. L. 99–272, title I, §1108(a), (d), Apr. 7, 1986, 100 Stat. 92, 95; Pub. L. 99–500, §101(a) [title VI, §637], Oct. 18, 1986, 100 Stat. 1783, 1783-34, and Pub. L. 99–591, §101(a) [title VI, §637], Oct. 30, 1986, 100 Stat. 3341, 3341-34; Pub. L. 103–66, title I, §1106(b)(2), Aug. 10, 1993, 107 Stat. 321, related to producer contributions and purchaser assessments for the No Net Cost Tobacco Fund.
Section 1445–2, act Oct. 31, 1949, ch. 792, title I, §106B, as added Pub. L. 97–218, title III, §301, July 20, 1982, 96 Stat. 207; amended Pub. L. 98–180, title II, §204, Nov. 29, 1983, 97 Stat. 1145; Pub. L. 99–157, §6(b), Nov. 15, 1985, 99 Stat. 818; Pub. L. 99–272, title I, §1108(b), Apr. 7, 1986, 100 Stat. 94; Pub. L. 103–66, title I, §1106(b)(3), Aug. 10, 1993, 107 Stat. 322, related to marketing assessments to No Net Cost Tobacco Account.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal applicable to the 2005 and subsequent crops of tobacco, see section 643 of Pub. L. 108–357, set out as an Effective Date note under section 518 of this title.
Savings Provision
Repeal not to affect the liability of any person under sections 1445 to 1445–2 of this title with respect to the 2004 or an earlier crop of tobacco, see section 614 of Pub. L. 108–357, set out as a note under section 515 of this title.
§1445–3. Purchase of inventory stock
Notwithstanding any other provision of law, in order to reduce or eliminate the excessive inventories of Flue-cured and Burley tobacco held by associations from the 1976 through 1984 crops, and in order to provide for the orderly disposition of such excessive inventories of tobacco in a manner that will not disrupt the orderly marketing of new tobacco crops and will minimize any losses to the Federal Government:
(a) Sale of inventory stock
(1) The producer-owned cooperative marketing association that has entered into a loan agreement with the Commodity Credit Corporation to make price support available to producers of Flue-cured tobacco shall offer to sell the stocks of Flue-cured tobacco of the association from the 1976 through 1984 crops as provided in this section.
(2) Each producer-owned cooperative marketing association that has entered into a loan agreement with the Commodity Credit Corporation to make price support available to producers of Burley tobacco shall offer to sell its stocks of Burley tobacco from the 1982 and 1984 crops as provided in this section.
(3)(A)(i) Not later than 30 days after April 7, 1986, the Commodity Credit Corporation shall acquire title to the Burley tobacco from the 1983 crop that is pledged as security for loans on such tobacco by calling the loans on such tobacco.
(ii) The Corporation shall, then, offer such tobacco for sale at such times, in such quantities, and subject to such conditions as the Corporation considers appropriate.
(B) If the Commodity Credit Corporation has not sold all of the stocks of the 1983 crop of Burley tobacco within 2 years from the date the Corporation calls the loans on such tobacco, the Corporation may offer to sell to domestic manufacturers of cigarettes the remaining stocks of such tobacco as provided in this section.
(b) Sale prices
(1)(A) The stocks of Flue-cured tobacco from the 1976 through 1984 crops shall be offered for sale at the base prices, including carrying charges, in effect as of the date of the offer, reduced by—
(i) 90 percent for Flue-cured tobacco from the 1976 through 1981 crops; and
(ii) 10 percent for Flue-cured tobacco from the 1982 through 1984 crops.
(B) The purchasers of the stocks of Flue-cured tobacco from the 1976 through 1984 crops shall pay the full carrying charges that have accrued to such tobacco from the date of the offer made under this section to the date that such tobacco is removed from the inventory of the association.
(2)(A) The stocks of Burley tobacco from the 1982 crop shall be offered for sale at the listed base price in effect as of July 1, 1985.
(B) The stocks of Burley tobacco from the 1984 crop shall be offered for sale at the costs of the association for such tobacco as of April 7, 1986.
(C) The purchasers of the stocks of Burley tobacco from the 1982 crop shall pay the full carrying charges that have accrued to such tobacco.
(D) The purchasers of the stocks of Burley tobacco from the 1984 crop shall pay the full carrying charges that have accrued to such tobacco from April 7, 1986, to the date such tobacco is removed from the inventories of the associations.
(3)(A) After the 2-year period specified in subsection (a)(3)(B) has expired, if the Commodity Credit Corporation offers to sell the stocks of the Corporation of Burley tobacco from the 1983 crop to domestic manufacturers of cigarettes, such stocks shall be offered for sale at the costs of the association, including carrying charges, as of the date on which the Corporation calls the loans on such tobacco, reduced by 90 percent.
(B) Neither tobacco producers nor tobacco purchasers shall be responsible for carrying charges that accrue to the 1983 crop of Burley tobacco after the date on which the Commodity Credit Corporation calls the loans on such tobacco.
(c) Terms of agreements
(1)(A) Each domestic manufacturer of cigarettes may enter into agreements to purchase inventory stocks of Flue-cured and Burley tobacco, in accordance with this section.
(B) To be eligible for the reductions in price specified in this section, such manufacturer shall enter into such agreements as soon as practicable, but not later than 90 days after April 7, 1986, except that, with respect to the 1983 crop of Burley tobacco, if the Corporation offers to sell the stocks of such tobacco pursuant to subsection (b)(3)(A), such agreements shall be entered into as soon as practicable, but not later than 90 days after the end of the 2-year period referred to in subsection (a)(3)(B).
(C)(i) Such agreements shall provide that, over a period of time, each participating domestic manufacturer of cigarettes shall purchase a percentage of the stocks of Flue-cured and Burley tobacco held—
(I) by the producer-owned cooperative marketing associations at the close of the 1984 marketing year; or
(II) in the case of the 1983 crop of Burley tobacco, by the Commodity Credit Corporation at the time the Corporation offers such tobacco for sale to domestic manufacturers of cigarettes under this section.
(ii) The period of time referred to in clause (i) may not exceed—
(I) in the case of Flue-cured tobacco, 8 years from April 7, 1986;
(II) in the case of Burley tobacco from the 1982 and 1984 crops, 5 years from April 7, 1986; and
(III) in the case of the 1983 crop of Burley tobacco, 5 years from the end of the 2-year period referred to in subsection (a)(3)(B).
(2)(A)(i) The percentage to be purchased by each participating manufacturer shall be at least equal to the respective percentage of the participating manufacturer of the total quantity of net cigarettes manufactured for use as determined by the Secretary of Agriculture under this paragraph on the basis of the monthly reports ("Manufacturer of Tobacco Products—Monthly Reports") submitted by manufacturers of tobacco products to the Tax and Trade Bureau of the Department of the Treasury.
(ii) The Secretary of Agriculture shall request from the Secretary of the Treasury copies of such monthly reports necessary to make the determinations required under this section.
(iii) Notwithstanding any other provision of law, the Secretary of the Treasury may release and disclose such information to the Secretary of Agriculture.
(B) "Net cigarettes manufactured for use" shall be computed by subtracting—
(i) the cumulative figures entered for large and small cigarettes in item 16f of ATF Form 3068 ("Reduction to tobacco"); from
(ii) the cumulative figures entered for large and small cigarettes in item 7 of such form ("Manufactured").
(C)(i) The percentage to be purchased by each participating manufacturer shall be determined—
(I) on April 7, 1986; and
(II) annually thereafter over the course of the respective buy-out periods specified in this subsection.
(ii) Such percentage shall be determined by dividing—
(I) the average net cigarettes manufactured by a manufacturer for use for the 12-month period immediately preceding the appropriate determination date (April 7, 1986, and annually thereafter over the course of the respective buy-out periods specified in this subsection); by
(II) the aggregate average net cigarettes manufactured by all domestic cigarette manufacturers for use for such 12-month period.
(D)(i) The quantity of tobacco to be purchased by each participating manufacturer shall be determined annually.
(ii) Such quantity shall be based on—
(I) the percentage of net cigarettes of a manufacturer manufactured for use, as determined under subparagraph (C); multiplied by
(II) the appropriate annual quantity to be withdrawn from the inventories of the associations or the Commodity Credit Corporation.
(iii) The appropriate annual quantity to be withdrawn from inventories shall be—
(I) 12½ percent of the inventories of Flue-cured tobacco from the 1976 through 1984 crops on hand on April 7, 1986;
(II) 20 percent of the inventories of Burley tobacco from the 1982 and 1984 crops on hand on April 7, 1986; and
(III) 20 percent of the inventories of Burley tobacco from the 1983 crop held by the Commodity Credit Corporation on the date that is 2 years after the call of the loans on such tobacco by the Corporation.
(E) Any purchases by a manufacturer from the inventories of the associations or from the Commodity Credit Corporation for a crop covered by this section in any year of the buy-out period that exceed the quantity of the purchases of the manufacturer required under the agreement, as determined under this section, shall be applied against future purchases required of such manufacturer.
(3) In carrying out this section, manufacturers may confer with one another and, separately or collectively, with associations, the Secretary of Agriculture, and the Commodity Credit Corporation, as may be necessary or appropriate to carry out this section and the purposes of this subtitle.1
(d) Approval of agreements
(1)(A) Each agreement entered into under this section shall be submitted to the Secretary of Agriculture for review and approval.
(B) In the case of an agreement to purchase tobacco from the inventory of a producer association, the agreement shall be submitted by the association.
(C) No agreement may become effective until approved by the Secretary.
(2) The Secretary of Agriculture shall not approve any agreement submitted under this section unless the Secretary has determined that—
(A) the agreement—
(i) will not unduly impair or disrupt the orderly marketing of current and future tobacco crops during the term of the agreement; and
(ii) is otherwise consistent with the purposes of this subtitle; 1 and
(B) the price and other terms of sale are uniform and nondiscriminatory among various purchasers.
(e) Disclosure
The limitations on disclosure set forth in subsections (c) and (d) of section 1314g 1 of this title shall apply to information submitted by domestic manufacturers of cigarettes under this section with respect to net cigarettes manufactured for use, including information provided on ATF Form 3068. Any officer or employee of the Department of Agriculture who violates such limitations on disclosure shall be subject to the penalties set forth in section 1314g(c)(4) 1 of this title.
(Pub. L. 99–272, title I, §1109, Apr. 7, 1986, 100 Stat. 95; Pub. L. 107–296, title XI, §1112(b), Nov. 25, 2002, 116 Stat. 2276.)
Editorial Notes
References in Text
This subtitle, referred to in subsecs. (c)(3) and (d)(2)(A)(ii), is subtitle B (§§1101–1112) of title I of Pub. L. 99–272, Apr. 7, 1986, 100 Stat. 83, which enacted sections 1314g, 1314h, and 1445–3 of this title, amended sections 511d, 1301, 1312, 1314c, 1314e, 1372, 1445, 1445–1, and 1445–2 of this title, and enacted provisions set out as notes under sections 1301, 1314c, 1314e, 1314g, 1314h, 1372, 1445, 1445–1, and 1445–2 of this title. For complete classification of this subtitle to the Code, see Tables.
Section 1314g of this title, referred to in subsec. (e), was repealed by Pub. L. 108–357, title VI, §611(a), Oct. 22, 2004, 118 Stat. 1522.
Codification
Section was enacted as part of the Consolidated Omnibus Budget Reconciliation Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Amendments
2002—Subsec. (c)(2)(A)(i). Pub. L. 107–296 substituted "by manufacturers of tobacco products to the Tax and Trade Bureau" for "(on ATF Form 3068) by manufacturers of tobacco products to the Bureau of Alcohol, Tobacco and Firearms".
Statutory Notes and Related Subsidiaries
Effective Date of 2002 Amendment
Amendment by Pub. L. 107–296 effective 60 days after Nov. 25, 2002, see section 4 of Pub. L. 107–296, set out as an Effective Date note under section 101 of Title 6, Domestic Security.
Rulemaking Procedures
For implementation of this section by the Secretary of Agriculture without regard to provisions requiring notice and other procedures for public participation in rulemaking contained in section 553 of Title 5, Government Organization and Employees, or in any other directive of the Secretary, see section 1108(c) of Pub. L. 99–272, set out as a note under section 1301 of this title.
§1445a. Wheat price support levels; "cooperator" defined
Notwithstanding the provisions of section 1441 of this title, beginning with the 1964 crop—
(1) Price support for wheat accompanied by domestic certificates shall be at such level not less than 65 per centum or more than 90 per centum of the parity price therefor as the Secretary determines appropriate, taking into consideration the factors specified in section 1421(b) of this title.
(2) Price support for wheat accompanied by export certificates shall be at such level not more than 90 per centum of the parity price therefor as the Secretary determines appropriate, taking into consideration the factors specified in section 1421(b) of this title.
(3) Price support for wheat not accompanied by marketing certificates shall be at such level, not in excess of 90 per centum of the parity price therefor, as the Secretary determines appropriate, taking into consideration competitive world prices of wheat, the feeding value of wheat in relation to feed grains, and the level at which price support is made available for feed grains.
(4) Price support shall be made available only to cooperators: and, if a commercial wheat-producing area is established for such crop, price support shall be made available only in the commercial wheat-producing area.
(5) Effective with respect to crops planted for harvest in the calendar year 1966 and any subsequent year, the level of price support for any crop of wheat for which a national marketing quota is not proclaimed or for which marketing quotas have been disapproved by producers shall be as provided in section 1441 of this title.
(6) A "cooperator" with respect to any crop of wheat produced on a farm shall be a producer who (i) does not knowingly exceed (A) the farm acreage allotment for wheat on the farm or (B) except as the Secretary may by regulation prescribe, the farm acreage allotment for wheat on any other farm on which the producer shares in the production of wheat, and (ii) complies with the land-use requirements of section 1339 of this title, to the extent prescribed by the Secretary. Effective with respect to crops planted for harvest in the calendar year 1966 and any subsequent year, if marketing quotas are not in effect for the crop of wheat, a "cooperator" with respect to any crop of wheat produced on a farm shall be a producer who does not knowingly exceed the farm acreage allotment for wheat. 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, but the producer shall not be eligible to receive price support on such marketing excess. No producer shall be deemed to have exceeded the farm acreage allotment for wheat on any other farm, if such farm is exempt from the farm marketing quota for such crop under section 1335 of this title. No producer shall be deemed to have exceeded a farm acreage allotment for wheat if the production on the acreage in excess of the farm acreage allotment is stored pursuant to the provisions of section 1379c(b) of this title, but the producer shall not be eligible to receive price support on the wheat so stored.
(Oct. 31, 1949, ch. 792, title I, §107, as added Pub. L. 87–703, title III, §325(1), Sept. 27, 1962, 76 Stat. 630; amended Pub. L. 88–297, title II, §203, Apr. 11, 1964, 78 Stat. 182; Pub. L. 89–321, title V, §506, Nov. 3, 1965, 79 Stat. 1203; Pub. L. 90–559, §1(1), Oct. 11, 1968, 82 Stat. 996; Pub. L. 91–524, title IV, §401, Nov. 30, 1970, 84 Stat. 1362; Pub. L. 93–86, §1(8), Aug. 10, 1973, 87 Stat. 224; Pub. L. 93–125, §1(b), Oct. 18, 1973, 87 Stat. 450; Pub. L. 93–228, §1(a), Dec. 29, 1973, 87 Stat. 944.)
Editorial Notes
Amendments
1973—Subsec. (a). Pub. L. 93–86, §1(8)(A), temporarily amended subsec. (a) generally, substituting "$1.37 per bushel" for "$1.25 per bushel". See Effective and Termination Dates of 1970 and 1973 Amendment notes below.
Subsec. (b). Pub. L. 93–86, §1(8)(B), temporarily substituted "payments" for "certificates". See Effective and Termination Dates of 1970 and 1973 Amendment notes below.
Subsec. (c). Pub. L. 93–228 substituted "(or of cotton, corn, grain sorghums, or barley planted in lieu of wheat)" for "(or other nonconserving crop planted instead of wheat)", in two places.
Pub. L. 93–125 substituted "prevented from planting any portion" for "prevented from planting, any portion".
Pub. L. 93–86, §1(8)(C), (D), temporarily added subsec. (c). See Effective and Termination Dates of 1970 and 1973 Amendment notes below.
1970—Pub. L. 91–524 temporarily revised section into subsecs. (a) and (b) which provided for loans on wheat at such levels not in excess of the parity price as the Secretary determines appropriate, taking into consideration competitive world prices of wheat, the feeding value of wheat in relation to feed grains, and the level at which price support is made available for feed grains, provided that, if a set-aside program is in effect, program benefits would be made available only to producers who comply with such set-aside program, and placed a floor on the loan of $1.25 per bushel. See Effective and Termination Dates of 1970 Amendment note below.
1968—Subsec. (2). Pub. L. 90–559 provided for a one year extension through 1970.
1965—Pub. L. 89–321 temporarily raised the wheat support level to 100 per centum of parity or as near to 100 per centum as the Secretary determines to be practicable, placed a floor of 100 per centum of parity for wheat accompanied by marketing certificates and $1.25 for wheat not so accompanied under the 1966 crop, guaranteed to cooperators for 1967 through 1969 crops a total average rate of return per bushel of not less than the total average rate of return per bushel made available to cooperators through loans and domestic marketing certificates for the 1966 crop where the diversion factor is not less than 10 per centum, and eliminated reference to classification as cooperators of producers who do not knowingly exceed the farm acreage allotment for wheat in cases where marketing quotas are not in effect. See Effective and Termination Dates of 1965 Amendment note below.
1964—Subsec. (1). Pub. L. 88–297 substituted "domestic certificates" for "marketing certificates".
Subsec. (2). Pub. L. 88–297 added subsec. (2). Former subsec. (2) redesignated (3).
Subsec. (3). Pub. L. 88–297 redesignated former subsec. (2) as (3), struck out introductory clause "if marketing quotas are in effect for wheat", and inserted "not in excess of 90 per centum of the parity price therefor." Former subsec. (3) redesignated (4).
Subsec. (4). Pub. L. 88–297 redesignated former subsec. (3) as (4). Former subsec. (4) redesignated (5).
Subsec. (5). Pub. L. 88–297 redesignated former subsec. (4) as (5) and inserted introductory phrase "Effective with respect to crops planted for harvest in the calendar year 1966 and any subsequent year,". Former subsec. (5) redesignated (6).
Subsec. (6). Pub. L. 88–297 redesignated former subsec. (5) as (6), struck out introductory clause "if marketing quotas are in effect for the crop of wheat", struck out from cl. (i)(A) "or any other commodity" after "wheat", substituted in cl. (i)(B) "the farm acreage allotment for wheat on any other farm on which the producer shares in the production of wheat" for "the farm acreage allotment on any other farm for any commodity in which he has an interest as a producer", inserted "Effective with respect to crops planted for harvest in the calendar year 1966 and any subsequent year," before "if marketing quotas", and inserted provision for deeming a producer as not having exceeded a farm acreage allotment for wheat if the production on the acreage in excess of the farm acreage allotment is stored pursuant to section 1379c(b) of this title, but making the producer ineligible to receive price support on the wheat so stored.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates of 1973 Amendment
Pub. L. 93–86, §1(8), Aug. 10, 1973, 87 Stat. 224, provided that the amendment made by section 1(8) is effective beginning with the 1974 crop.
Effective and Termination Dates of 1970 Amendment
Pub. L. 91–524, title IV, §401, Nov. 30, 1970, 84 Stat. 1362, as amended by Pub. L. 93–86, §1(8), Aug. 10, 1973, 87 Stat. 224, provided that the amendment made by section 401 is effective only with respect to the 1971 through 1977 crops of wheat.
Effective and Termination Dates of 1965 Amendment
Pub. L. 89–321, title V, §506, Nov. 3, 1965, 79 Stat. 1203, as amended by Pub. L. 90–559, §1(1), Oct. 11, 1968, 82 Stat. 996, provided that the amendment made by section 506 is effective only with respect to the 1966 through 1970 crops.
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 9092(b)(4) of this title.
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 8782(b)(4) of this title.
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 7992(b)(4) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(D) of this title.
Pub. L. 101–624, title III, §305, Nov. 28, 1990, 104 Stat. 3400, provided that: "Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to the 1991 through 1995 crops of wheat."
Pub. L. 99–198, title III, §312, Dec. 23, 1985, 99 Stat. 1395, provided that: "Section 107 of the Agricultural Act of 1949 (7 U.S.C. 1445a) shall not be applicable to the 1986 through 1990 crops of wheat."
Pub. L. 97–98, title III, §305, Dec. 22, 1981, 95 Stat. 1227, provided that: "Section 107 of the Agricultural Act of 1949 [this section] shall not be applicable to the 1982 through 1985 crops of wheat."
Pub. L. 95–113, title IV, §409, Sept. 29, 1977, 91 Stat. 928, provided that: "Section 107 of the Agricultural Act of 1949, as amended [this section], shall not be applicable to the 1977 through 1981 crops of wheat."
Pub. L. 95–113, title IV, §410, Sept. 29, 1977, 91 Stat. 928, provided that: "Except as otherwise provided in section 401 of this Act [enacting section 1445b(a)–(c) of this title effective only for the 1977 through 1981 crops of wheat], section 107 of the Agricultural Act of 1949, as added by the Agricultural Act of 1970, as amended [this section as amended by Pub. L. 91–524, as amended], to be effective only for the 1974 through 1977 crops of wheat, shall not be applicable to the 1977 crop of wheat."
Section 1445b, act Oct. 31, 1949, ch. 792, title I, §107A, as added Sept. 29, 1977, Pub. L. 95–113, title IV, §§401, 402, 91 Stat. 921, 924; amended Mar. 18, 1980, Pub. L. 96–213, §§3, 4(d), 94 Stat. 119, 120; Sept. 26, 1980, Pub. L. 96–365, title II, §201(d), 94 Stat. 1320; Dec. 3, 1980, Pub. L. 96–494, title II, §202(b), 94 Stat. 2570, related to loan rates and target prices for the 1977 through 1981 crops of wheat.
Section 1445b–1, act Oct. 31, 1949, ch. 792, title I, §107B, as added Dec. 22, 1981, Pub. L. 97–98, title III, §301, 95 Stat. 1221; Sept. 8, 1982, Pub. L. 97–253, title I, §§121, 122, 96 Stat. 768; amended Sept. 29, 1983, Pub. L. 98–100, §1(b), 97 Stat. 718; Apr. 10, 1984, Pub. L. 98–258, title I, §§101–103, 98 Stat. 130, 131, related to loan rates and target prices for 1982 through 1985 wheat crops.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1421 of this title.
§1445b–2. Transferred
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107C, as added Sept. 8, 1982, Pub. L. 97–253, title I, §120, 96 Stat. 766, and amended, which related to advance deficiency and diversion payments, was renumbered section 114 of act Oct. 31, 1949, by Pub. L. 101–624, title XI, §1161(a)(1), Nov. 28, 1990, 104 Stat. 3520, and transferred to section 1445j of this title.
§1445b–3. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107A, formerly §107D, as added Dec. 23, 1985, Pub. L. 99–198, title III, §308, 99 Stat. 1383; amended Feb. 28, 1986, Pub. L. 99–253, §1, 100 Stat. 36; Mar. 20, 1986, Pub. L. 99–260, §§2(a), 7(a), 100 Stat. 45, 50; Oct. 18, 1986, Pub. L. 99–500, §152, 100 Stat. 1783–352, and Oct. 30, 1986, Pub. L. 99–591, §152, 100 Stat. 3341–355; Nov. 10, 1986, Pub. L. 99–641, title II, §202, 100 Stat. 3563; May 27, 1987, Pub. L. 100–45, §2, 101 Stat. 318; Dec. 22, 1987, Pub. L. 100–203, title I, §§1101(a), 1102(a), 1111, 1113(a), 1201, 101 Stat. 1330–1, 1330-2, 1330-7, 1330-8, 1330-10; renumbered §107A, Nov. 28, 1990, Pub. L. 101–624, title III, §301(2), 104 Stat. 3382, related to loan rates and target prices. See Effective and Termination Dates note below.
A prior section 107A of act Oct. 31, 1949, ch. 792, title I, as added Sept. 29, 1977, Pub. L. 95–113, title IV, §§401, 402, 91 Stat. 921, 924, was classified to section 1445b of this title, prior to repeal by section 301(1) of Pub. L. 101–624.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates
Pub. L. 99–198, title III, §308, Dec. 23, 1985, 99 Stat. 1383, provided that this section is effective only for the 1986 through 1990 crops of wheat.
Section, act Oct. 31, 1949, ch. 792, title I, §107B, as added Nov. 28, 1990, Pub. L. 101–624, title III, §301(3), 104 Stat. 3382; amended Nov. 5, 1990, Pub. L. 101–508, title I, §§1101(a), 1102(a), 104 Stat. 1388–1; Dec. 13, 1991, Pub. L. 102–237, title I, §§102(d), 103(b), 106(d), 113(6), 105 Stat. 1822, 1823, 1826, 1837; Aug. 10, 1993, Pub. L. 103–66, title I, §1102, 107 Stat. 314; Oct. 13, 1994, Pub. L. 103–354, title I, §119(a)(5), 108 Stat. 3207, related to loans, payments, and acreage reduction programs for 1991 through 1995 crops of wheat.
§1445b–4. Transferred
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §107E, as added Dec. 23, 1985, Pub. L. 99–198, title X, §1005, 99 Stat. 1448, and amended, which related to payments in commodities, was renumbered section 115 of act Oct. 31, 1949, by Pub. L. 101–624, title XI, §1161(a)(1), Nov. 28, 1990, 104 Stat. 3520, and transferred to section 1445k of this title.
Section, act Oct. 31, 1949, ch. 792, title I, §107F, as added Dec. 23, 1985, Pub. L. 99–198, title X, §1006, 99 Stat. 1448, related to export certificate programs for 1986 through 1990 crops of wheat and feed grains.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1421 of this title.
Section 1445c, act Oct. 31, 1949, ch. 792, title I, §108, as added Sept. 29, 1977, Pub. L. 95–113, title VIII, §807, 91 Stat. 947, related to price support program for 1978 through 1981 crops of peanuts.
Section 1445c–1, act Oct. 31, 1949, ch. 792, title I, §108A, as added Dec. 22, 1981, Pub. L. 97–98, title VII, §705, 95 Stat. 1254, related to price support program for 1982 through 1985 crops of peanuts.
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
Repeal effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1421 of this title.
§1445c–2. Omitted
Editorial Notes
Codification
Section, act Oct. 31, 1949, ch. 792, title I, §108A, formerly §108B, as added Dec. 23, 1985, Pub. L. 99–198, title VII, §705, 99 Stat. 1439; amended Oct. 18, 1986, Pub. L. 99–500, §101(a) [title VI, §639], 100 Stat. 1783, 1783-35, and Oct. 30, 1986, Pub. L. 99–591, §101(a) [title VI, §639], 100 Stat. 3341, 3341-35; Nov. 10, 1986, Pub. L. 99–641, title II, §203, 100 Stat. 3563; Dec. 22, 1987, Pub. L. 100–203, title I, §1104(b), 101 Stat. 1330–4; renumbered §108A, Nov. 28, 1990, Pub. L. 101–624, title VIII, §806(2), 104 Stat. 3475; Dec. 13, 1991, Pub. L. 102–237, title I, §117(b)(1)(A), 105 Stat. 1841, related to price support, loans, purchases, and other operations, and national average quota support rate. See Effective and Termination Dates note below.
Statutory Notes and Related Subsidiaries
Effective and Termination Dates
Pub. L. 99–198, title VII, §705, Dec. 23, 1985, 99 Stat. 1439, provided that this section is effective only for the 1986 through 1990 crops of peanuts.
Section, act Oct. 31, 1949, ch. 792, title I, §108B, as added Nov. 28, 1990, Pub. L. 101–624, title VIII, §806(3), 104 Stat. 3475; amended Nov. 5, 1990, Pub. L. 101–508, title I, §1105(b), 104 Stat. 1388–3; Dec. 13, 1991, Pub. L. 102–237, title I, §117(b)(1)(B), 105 Stat. 1841; Aug. 10, 1993, Pub. L. 103–66, title I, §1109(a), 107 Stat. 325, related to price support program for 1991 through 1997 crops of peanuts.
§1445d. Special wheat acreage grazing and hay program for 1978 through 1990 crop years
Notwithstanding any other provision of law—
(a) Authorization for program; acreage designation; payment
The Secretary is authorized to administer a special wheat acreage grazing and hay program (hereinafter in this section referred to as the "special program") in each of the crop years 1978 through 1990. If a special program is implemented, a producer shall be permitted to designate, under such regulations as established by the Secretary, a portion of the acreage on the farm intended to be planted to wheat, feed grains, or upland cotton for harvest, not in excess of 40 per centum thereof, or 50 acres, whichever is greater, which shall be planted to wheat (or some other commodity other than corn or grain sorghum) and used by the producer for grazing purposes or hay rather than for commercial grain production. A producer who elects to participate in the special program shall receive a payment as provided in subsection (c) of this section.
(b) Specific farm acreage
Any producer who elects to participate in the special program under this section shall designate the specific acreage on the farm which is to be used for the purposes set forth in subsection (a) of this section. No crop other than hay may be harvested from acreage included in the special program.
(c) Determination of payment
The Secretary shall pay the producer participating in the special program an amount determined by multiplying the farm program payment yield for wheat established for the farm, by the number of acres included in the special program, by a rate of payment determined by the Secretary to be fair and reasonable. The producer shall not be eligible for any other payment or price support on any portion of the acreage for the farm which the producer elects to include in the special program.
(d) Other acreage set-aside programs
Acreage included in the special program shall be in addition to any acreage included in any acreage set-aside, reduced acreage, or land diversion program otherwise provided for by law.
(e) Rules and regulations
The Secretary is authorized to issue such regulations as the Secretary determines necessary to carry out the provisions of this section.
(f) Commodity Credit Corporation
The Secretary shall carry out the special program through the Commodity Credit Corporation.
(Oct. 31, 1949, ch. 792, title I, §109, as added Pub. L. 95–113, title X, §1004, Sept. 29, 1977, 91 Stat. 950; amended Pub. L. 97–98, title XI, §1110, Dec. 22, 1981, 95 Stat. 1267; Pub. L. 99–198, title X, §1015, Dec. 23, 1985, 99 Stat. 1457.)
Editorial Notes
Amendments
1985—Subsec. (a). Pub. L. 99–198 substituted "1990" for "1985".
1981—Subsec. (a). Pub. L. 97–98, §1110(1), (2), substituted "1985" for "1981" and "If a special program is implemented" for "Under the special program".
Subsec. (d). Pub. L. 97–98, §1110(3), inserted ", reduced acreage, or land diversion".
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.
Effective Date
Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as an Effective Date of 1977 Amendment note under section 1307 of this title.
§1445e. Farmer owned reserve program
(a) In general
The Secretary shall formulate and administer a farmer owned reserve program under which producers of wheat and feed grains will be able to store wheat and feed grains when the commodities are in abundant supply, extend the time period for the orderly marketing of the commodities, and provide for adequate carryover stocks to ensure a reliable supply of the commodities.
(b) Terms of program
(1) Price support loans
In carrying out this program, the Secretary shall provide extended price support loans for wheat and feed grains. An extended loan shall only be made to a producer after the expiration of a 9-month price support loan (hereafter in this section referred to as the "original loan") made in accordance with this subchapter.
(2) Level of loans
Loans made under this section shall not be less than the then current level of support under the wheat and feed grain programs established under this subchapter.
(3) Other terms and conditions
The Secretary shall provide for—
(A) repayment of the extended price support loan 27 months from the date on which the original loan expired unless, at the discretion of the Secretary, the loan has been extended for one 6-month period;
(B) a rate of interest as provided under subsection (c); and
(C) payments to producers for storage as provided in subsection (d).
(4) Regional differences
The Secretary shall ensure that producers are afforded a fair and equitable opportunity to participate in the program established under this section, taking into account regional differences in the time of harvest.
(c) Interest charges
(1) Levying of interest
The Secretary may charge interest on loans under this section whenever the price of wheat or feed grains is equal to or exceeds 105 percent of the then current established price for the commodity.
(2) 90-day period
If interest is levied on the loans under paragraph (1), the interest may be charged for a period of 90 days after the last day on which the price of wheat or feed grains was equal to or in excess of 105 percent of the established price for the commodities.
(3) Rate of interest
The rate of interest charged participants in this program shall not be less than the rate of interest charged by the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust the interest as the Secretary considers appropriate to effectuate the purposes of this section.
(d) Storage payments
(1) In general
The Secretary shall provide storage payments to producers for storage of wheat or feed grains under the program established in this section in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program.
(2) Timing
The Secretary shall make storage payments available to participants in this program at the end of each quarter.
(3) Duration
The Secretary shall cease making storage payments whenever the price of wheat or feed grains is equal to or exceeds 95 percent of the then current established price for the commodities, and for any 90-day period immediately following the last day on which the price of wheat or feed grains was equal to or in excess of 95 percent of the then current established price for the commodities.
(e) Emergencies
Notwithstanding any other provision of law, the Secretary may require producers to repay loans made under this section, plus accrued interest and such other charges as may be required by regulation prior to the maturity date thereof, if the Secretary determines that emergency conditions exist that require that the commodity be made available in the market to meet urgent domestic or international needs and the Secretary reports the determination and the reasons for the determination to the President, the Committee on Agriculture of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry of the Senate at least 14 days before taking the action.
(f) Quantity of commodities in program
The Secretary may establish maximum quantities of wheat and feed grains that may receive loans and storage payments under this program as follows:
(1) The maximum quantities of wheat may not be established at less than 300 million bushels, nor more than 450 million bushels.
(2) The maximum quantities of feed grains may not be established at less than 600 million bushels, nor more than 900 million bushels.
(g) Announcement of program
(1) Time of announcement
The Secretary shall announce the terms and conditions of the producer storage program for a crop of wheat and feed grains by—
(A) in the case of wheat, December 15 of the year in which the crop of wheat was harvested; and
(B) in the case of feed grains, March 15 of the year following the year in which the crop of corn was harvested.
(2) Discretionary entry
The Secretary may make extended loans available to producers of wheat or feed grains if—
(A) the Secretary determines that the average market price for wheat or corn, respectively, for the 90-day period prior to the dates specified in paragraph (1) is less than 120 percent of the current loan rate for wheat or corn, respectively; or
(B) as of the appropriate date specified in paragraph (1), the Secretary estimates that the stocks-to-use ratio on the last day of the current marketing year will be—
(i) in the case of wheat, more than 37.5 percent; and
(ii) in the case of corn, more than 22.5 percent.
(3) Mandatory entry
The Secretary shall make extended loans available to producers of wheat or feed grains if the conditions specified in subparagraphs (A) and (B) of paragraph (2) are met for wheat or feed grains, respectively.
(4) Content of announcement
In the announcement, the Secretary shall specify the maximum quantity of wheat or feed grains to be stored under this program that the Secretary determines appropriate to promote the orderly marketing of the commodities.
(h) Discretionary exit
A producer may repay a loan extended under this section at any time.
(i) Reconcentration of grain
The Secretary may, with the concurrence of the owner of grain stored under this program, reconcentrate all such grain stored in commercial warehouses at such points as the Secretary considers to be in the public interest, taking into account such factors as transportation and normal marketing patterns. The Secretary shall permit rotation of stocks and facilitate maintenance of quality under regulations that assure that the holding producer or warehouseman shall, at all times, have available for delivery at the designated place of storage both the quantity and quality of grain covered by the producer's or warehouseman's commitment.
(j) Management of grain
Whenever grain is stored under this section, the Secretary may buy and sell at an equivalent price, allowing for the customary location and grade differentials, substantially equivalent quantities of grain in different locations or warehouses to the extent needed to properly handle, rotate, distribute, and locate the commodities that the Commodity Credit Corporation owns or controls. The purchases to offset sales shall be made within 2 market days following the sales. The Secretary shall make a daily list available showing the price, location, and quantity of the transactions.
(k) Use of Commodity Credit Corporation
The Secretary shall use the Commodity Credit Corporation, to the extent feasible, to fulfill the purposes of this section. To the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall utilize the usual and customary channels, facilities, and arrangements of trade and commerce.
(l) Use of commodity certificates
Notwithstanding any other provision of law, if a producer has substituted purchased or other commodities for the commodities originally pledged as collateral for a loan made under this section, the Secretary may allow a producer to repay the loan using a generic commodity certificate that may be exchanged for commodities owned by the Commodity Credit Corporation, if the substitute commodities have been pledged as loan collateral and redeemed only within the same county.
(m) Additional authority
The authority provided by this section shall be in addition to other authorities available to the Secretary for carrying out producer loan and storage operations.
(n) Regulations
The Secretary of Agriculture shall issue such regulations as are necessary to carry out this section not later than 60 days after November 28, 1990.
(o) Review
In announcing the terms and conditions of the producer storage program under this section, the Secretary shall review standards concerning the quality of grain that shall be allowed to be stored under the program, and such standards should encourage only quality grain, as determined by the Secretary, to be pledged as collateral for such loans. The Secretary shall review inspection, maintenance, and stock rotation requirements and take the necessary steps to maintain the quality of such grain.
(p) Crops
Notwithstanding any other provision of law, this section shall become effective December 1, 1990.
(Oct. 31, 1949, ch. 792, title I, §110, as added Pub. L. 95–113, title XI, §1101, Sept. 29, 1977, 91 Stat. 951; amended Pub. L. 96–234, §§1, 2, Apr. 11, 1980, 94 Stat. 333; Pub. L. 96–494, title II, §§203(a), 204, 205, Dec. 3, 1980, 94 Stat. 2571, 2572; Pub. L. 97–24, §2, July 23, 1981, 95 Stat. 143; Pub. L. 97–98, title X, §1001, Dec. 22, 1981, 95 Stat. 1257; Pub. L. 99–198, title X, §1012(a), Dec. 23, 1985, 99 Stat. 1455; Pub. L. 100–203, title I, §1108, Dec. 22, 1987, 101 Stat. 1330–6; Pub. L. 100–387, title III, §303(b), Aug. 11, 1988, 102 Stat. 947; Pub. L. 101–624, title XI, §1123, title XX, §2010, Nov. 28, 1990, 104 Stat. 3503, 3932; Pub. L. 102–237, title I, §113(7), Dec. 13, 1991, 105 Stat. 1837.)
Editorial Notes
Amendments
1991—Subsec. (k). Pub. L. 102–237, §113(7)(C)(i), redesignated subsec. (k), relating to review, as (o).
Subsec. (n). Pub. L. 102–237, §113(7)(A), substituted "November 28, 1990" for "the date of enactment of this section".
Subsec. (o). Pub. L. 102–237, §113(7)(C), redesignated subsec. (k), relating to review, as (o), inserted heading, and substituted "this section" for "subsection (e)(1)".
Pub. L. 102–237, §113(7)(B), redesignated subsec. (o) as (p).
Subsec. (p). Pub. L. 102–237, §113(7)(B), redesignated subsec. (o) as (p).
1990—Pub. L. 101–624, §1123, amended section generally, substituting provisions relating to the farmer owned reserve program for provisions relating to the establishment and maintenance of the producer reserve program for wheat and feed grains.
Subsec. (k). Pub. L. 101–624, §2010, added subsec. (k) relating to review.
1988—Subsec. (j). Pub. L. 100–387 temporarily added subsec. (j). See Effective and Termination Dates of 1988 Amendment note.
1987—Subsec. (b)(A)(i). Pub. L. 100–203, §1108(1), substituted "300 million bushels" for "17 percent of the estimated total domestic and export usage of wheat during the then current marketing year for wheat, as determined by the Secretary".
Subsec. (b)(A)(ii). Pub. L. 100–203, §1108(2), substituted "450 million bushels" for "7 percent of the estimated total domestic and export usage of feed grains during the then current marketing year for feed grains, as determined by the Secretary".
1985—Subsec. (a). Pub. L. 99–198 in first sentence substituted "abundant supply, extend" for "abundant supply and extend" and inserted ", and provide for adequate, but not excessive, carryover stocks to ensure a reliable supply of the commodities" after "for their orderly marketing".
Subsec. (b). Pub. L. 99–198 in third sentence substituted ", with extensions as warranted by market conditions" for "nor more than five years" in cl. (1), substituted "when the total amount of wheat or feed grains in storage under programs under this section is below the upper limits for such storage as set forth in clauses (A) and (B) of subsection (e)(2) of this section and the market price for wheat or feed grains is below" for "before the market price for wheat or feed grains has reached" in cl. (4), substituted "the higher of 140 percent of the nonrecourse loan rate for the commodity or the established price for such commodity, as determined under this subchapter" for "a specified level, as determined by the Secretary" in cl. (5), and at end inserted provisions requiring Secretary to encourage participation in the programs authorized under this section by offering producers increased storage payments and loan levels, interest waivers, or such other incentives as the Secretary determines necessary to maintain total amount of storage at specified levels, whenever the total quantity of wheat and feed grains stored under this section is less than 17 and 7 percent, respectively, of the estimated total usage thereof during the then current marketing year, and the marketing price does not exceed 140 percent of the nonrecourse loan rate for the commodity, and inserted provision requiring Secretary to ensure than producers are afforded a fair and equitable opportunity to participate in each producer storage program.
Subsec. (e). Pub. L. 99–198 designated existing provisions as par. (1), inserted ", subject to the upper limits on the total quantity of wheat and feed grains that may be stored under storage programs established under this section set out in paragraph (2)" in second sentence, struck out third sentence which authorized the Secretary to place an upper limit of not less than seven hundred million bushels for wheat and one billion bushels for feed grains placed in the reserve, and added par. (2).
1981—Subsec. (a). Pub. L. 97–98 struck out discretionary authority of Secretary with regard to permitting producers of feed grains to store wheat and feed grains.
Subsec. (b). Pub. L. 97–98 substituted "Secretary shall provide" for "Secretary may provide", struck out "at the same level of support as provided by this Act" after "loans for wheat and feed grains", and substituted provisions that loans be made at such levels of support as Secretary determines appropriate, except that the loan rate not be less than the then current level of support under the wheat and feed grains programs established under this subchapter for provisions relating to the level of price support loans to be made available to producers for the 1980 and 1981 crops of wheat and feed grains necessary to mitigate the adverse effects of the restrictions on the export of agricultural products to the Union of Soviet Socialist Republics and providing that the level of price support loans for the 1980 and 1981 crops of wheat and feed grains not be used in determining the levels at which producers repay loans and redeem commodities prior to the maturity dates of the loans or levels at which Secretary may call for the repayment of loans prior to their maturity dates and "program may provide" for "program shall provide".
Subsec. (b)(2). Pub. L. 97–98 substituted "for storage in such amounts and under such conditions as the Secretary determines appropriate to encourage producers to participate in the program" for "of such amounts as the Secretary determines appropriate to cover the cost of storing wheat and feed grains held under the program".
Subsec. (b)(3). Pub. L. 97–98 substituted "as determined under subsection (c) of this section" for "determined by the Secretary based upon the rate of interest charged the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust such interest".
Pub. L. 97–24 struck out ", and the Secretary shall waive such interest on loans made on the 1980 and 1981 crops of wheat and feed grains" after "a rate of interest determined by the Secretary based upon the rate of interest charged the Commodity Credit Corporation by the United States Treasury, except that the Secretary may waive or adjust such interest".
Subsec. (b)(4). Pub. L. 97–98 substituted "if such loans" for "in the event such loans" and "determined under clause (5) of this sentence" for "specified in clause (5) of this subsection".
Subsec. (b)(6). Pub. L. 97–98 struck out cl. (6) which authorized the program to contain conditions prescribed by Secretary under which Secretary may require producers to repay such loans, plus accrued interest thereon, refund amounts paid for storage, and pay such additional interest and other charges as may be required by regulation, whenever Secretary determines that the market price for the commodity is not less than such appropriate level, as determined by Secretary.
Subsec. (c). Pub. L. 97–98 substituted provision prescribing rate of interest charged to participants in the program authorized by this section for provision authorizing payments to producers of the 1979 crops of corn and wheat who did not comply with the 1979 program requirements.
Subsec. (d). Pub. L. 97–98 added subsec. (d) and redesignated former subsec. (d) as (e).
Subsec. (e). Pub. L. 97–98 redesignated former subsec. (d) as (e) and substituted provision authorizing Secretary to place an upper limit on the amount of wheat and feed grains placed in the reserve, with such upper limit not less than seven hundred million bushels for wheat and one billion bushels for feed grains, for provision authorizing the maximum amount of wheat stored as not less than three hundred million bushels nor more than seven hundred million bushels, with authority for Secretary to adjust this amount as necessary to meet commitments by the United States pursuant to international agreements. Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 97–98 redesignated former subsec. (e) as (f) and substituted in provision preceding par. (1) "the program authorized" for "the extended loan program authorized", "110 per centum" for "105 per centum", "Secretary may encourage repayment" for "Secretary may call for repayment", and "clause (5) of the third sentence of subsection (b) of this section. The foregoing restriction" for "clause (6) of the second sentence of subsection (b) of this section: Provided, That such restriction" and in provision following par. (3) "clause (5) of the third sentence" for "clause (5) of the second sentence". Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 97–98 redesignated former subsec. (f) as (g) and substituted "by the producer's or warehouseman's commitment" for "by his commitment". Former subsec. (g) redesignated (h).
Subsec. (h). Pub. L. 97–98 redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i).
Subsec. (i). Pub. L. 97–98 redesignated former subsec. (h) as (i) and substituted "To the maximum extent" for "In addition, to the maximum extent".
1980—Subsec. (b). Pub. L. 96–494, §203(a)(1), inserted two provisos in provisions permitting Secretary to provide original or extended price support loans for wheat and feed grains at the same level of support as provided by this Act, in carrying out the producer storage program, under terms and conditions designed to encourage producers to store wheat and feed grains for extended periods of time to promote orderly marketing when wheat or feed grains are in abundant supply.
Subsec. (b)(3). Pub. L. 96–494, §203(a)(2), inserted provisions requiring Secretary to waive interest on loans made on the 1980 and 1981 crops of wheat and feed grains.
Subsec. (b)(5). Pub. L. 96–494, §204, substituted "for the commodity has attained a specified level" for "of wheat has attained a specified level which is not less than 140 per centum nor more than 160 per centum of the then current level of price support for wheat or such appropriate level for feed grains".
Subsec. (b)(6). Pub. L. 96–494, §204, substituted "such appropriate level, as determined by the Secretary" for "175 per centum of the then current level of the price support for wheat or such appropriate level for feed grains as determined by the Secretary under this Act".
Subsecs. (c), (d). Pub. L. 96–234, §1, added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively.
Subsec. (e). Pub. L. 96–494, §205(1), (2), substituted "except as otherwise provided under section 1736f–1 of this title and section 4001 of this title, whenever the extended loan program authorized by this section is in effect, the Commodity Credit Corporation may not sell any of its stocks of wheat or feed grains at less than 105 per centum of the then current level at which the Secretary may call for repayment of producer storage loans on the commodity prior to the maturity dates of the loans, as determined under clause (6) of the second sentence of subsection (b) of this section" for "whenever the extended loan program authorized by this section is in effect, the Commodity Credit Corporation may not sell any of its stocks of wheat or feed grains at less than 150 percentum of the then current level of price support for such commodity".
Pub. L. 96–234, §1(1), (2), redesignated former subsec. (d) as (e) and added cl. (3). Former subsec. (e) redesignated (f).
Subsec. (e)(3). Pub. L. 96–494, §205(3), in provisions preceding subpar. (A), substituted "sales of corn" for "sales of corn when sold at not less than the release level under the extended loan program", and inserted "when sold at not less than the price at which producers may repay producer storage loans and redeem corn prior to the maturity dates of loans, as determined under clause (5) of the second sentence of subsection (b) of this section, or, whenever the fuel conversion price (as defined in section 4005 of this title) for corn exceeds such price, at not less than the fuel conversion price".
Subsecs. (f) to (h). Pub. L. 96–234, §1(1), redesignated former subsecs. (e) to (g) as (f) to (h), respectively.
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by section 1123 of Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.
Effective and Termination Dates of 1988 Amendment
Pub. L. 100–387, title III, §303(b), Aug. 11, 1988, 102 Stat. 947, provided that the amendment made by section 303(b) is effective only for the 1988 marketing year for wheat and feed grains.
Effective Date of 1985 Amendment
Pub. L. 99–198, title X, §1012(a), Dec. 23, 1985, 99 Stat. 1455, provided that, except as provided in section 1012(b) of Pub. L. 99–198 (set out below), the amendments by section 1012(a) are effective beginning with the 1986 crops.
Pub. L. 99–198, title X, §1012(b), Dec. 23, 1985, 99 Stat. 1456, provided that: "The amendment made by subsection (a)(2)(B) of this section [amending this section] shall take effect with respect to any loan made under section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) the date for repayment of which occurs after the date of enactment of this Act [Dec. 23, 1985]."
Effective Date of 1981 Amendment
Pub. L. 97–98, title X, §1001, Dec. 22, 1981, 95 Stat. 1257, provided that the amendment made by section 1001 is effective beginning with the 1982 crops.
Effective Date of 1980 Amendment
Pub. L. 96–494, title II, §203(b), Dec. 3, 1980, 94 Stat. 2571, provided that: "Subsection (a) of this section [amending this section] shall become effective October 1, 1980, and any producers who, prior to such date, receive loans on the 1980 crop of the commodity as computed under the Agricultural Act of 1949 [see Short Title note set out under section 1421 of this title], as amended prior to the enactment of this Act [Dec. 3, 1980], may elect after September 30, 1980, to receive loans as authorized under subsection (a) of this section."
Amendment by sections 204 and 205 of Pub. L. 96–494 effective Dec. 3, 1980, see section 213 of Pub. L. 96–494, set out as an Effective Date note under section 4001 of this title.
Effective Date
Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as an Effective Date of 1977 Amendment note under section 1307 of this title.
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 9092(b)(5) of this title.
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 8782(b)(5) of this title.
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 7992(b)(5) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(E) of this title.
Comparability of Storage Payments
Pub. L. 101–624, title XI, §1124, Nov. 28, 1990, 104 Stat. 3506, as amended by Pub. L. 102–237, title I, §114(a)(1), Dec. 13, 1991, 105 Stat. 1838, provided that: "In making storage payments to producers under section 110 of the Agricultural Act of 1949 (7 U.S.C. 1445e) and to commercial warehousemen in accordance with the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), the Commodity Credit Corporation and the Secretary of Agriculture shall, to the extent practicable, ensure that the rates of the storage payments made to producers are equivalent to average rates paid for commercial storage, taking into account the current demand for storage for commodities, efficiency, location, regulatory compliance costs, bonding requirements, and impact of user fees as determined by the Secretary, except that the rates paid to producers and commercial warehousemen shall be established at rates that will result in no increase in current or projected combined outlays of the Commodity Credit Corporation for the storage payments made to producers and commercial warehousemen as a result of the adjustment of storage rates under this section."
Repayment of Loans Without Penalty
Pub. L. 100–387, title III, §303(a), Aug. 11, 1988, 102 Stat. 947, provided that effective for the 1988 marketing year for wheat or feed grains, once the market price described in former clause (5) of the third sentence of subsection (b) of this section had been reached at any time during such marketing year with respect to such commodity, producers could repay loans made under this section for such commodity during the remainder of that marketing year without the payment of a penalty.
§1445f. International Emergency Food Reserve
The President is encouraged to enter into negotiations with other nations to develop an international system of food reserves to provide for humanitarian food relief needs and to establish and maintain a food reserve, as a contribution of the United States toward the development of such a system, to be made available in the event of food emergencies in foreign countries. The reserves shall be known as the International Emergency Food Reserve.
(Oct. 31, 1949, ch. 792, title I, §111, as added Pub. L. 95–113, title XI, §1102, Sept. 29, 1977, 91 Stat. 953.)
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as an Effective Date of 1977 Amendment note under section 1307 of this title.
§1445g. Production of commodities for conversion into industrial hydrocarbons; terms and conditions; incentive payments; regulations; appropriations; effective date
Notwithstanding any other provision of this Act—
(a) The Secretary may permit, subject to such terms and conditions as the Secretary may prescribe, all or any part of the acreage set aside or diverted from the production of a commodity for any crop year under this subchapter to be devoted to the production of any commodity (other than the commodities for which acreage is being set aside or diverted) for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income.
(b)(1) During any year in which there is no set-aside or diversion of acreage under this subchapter, the Secretary may formulate and administer a program for the production, subject to such terms and conditions as the Secretary may prescribe, of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel, if the Secretary determines that such production is desirable in order to provide an adequate supply of commodities for such purpose, is not likely to increase the cost of the price support programs, and will not adversely affect farm income. Under the program, producers of wheat, feed grains, upland cotton, and rice shall be paid incentive payments to devote a portion of their acreage to the production of commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuel.
(2) The payments under this subsection shall be at such rate or rates as the Secretary determines to be fair and reasonable, taking into consideration the participation necessary to ensure an adequate supply of the agricultural commodities for conversion into industrial hydrocarbons and blending with gasoline or other fossil fuels for use as motor or industrial fuels.
(3) The Secretary may issue such regulations as the Secretary deems necessary to carry out the provisions of this subsection.
(4) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection.
(5) The provisions of this subsection shall become effective October 1, 1978.
(Oct. 31, 1949, ch. 792, title I, §112, as added Pub. L. 95–279, title II, §201, May 15, 1978, 92 Stat. 241.)
Editorial Notes
References in Text
This Act, referred to in provision preceding subsec. (a), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Statutory Notes and Related Subsidiaries
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 9092(b)(6) of this title.
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 8782(b)(6) of this title.
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 7992(b)(6) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(F) of this title.
Section, act Oct. 31, 1949, ch. 792, title I, §113, as added Dec. 3, 1980, Pub. L. 96–494, title II, §207, 94 Stat. 2572; amended Dec. 22, 1981, Pub. L. 97–98, title XI, §1105, 95 Stat. 1264; Dec. 23, 1985, Pub. L. 99–198, title X, §1011, 99 Stat. 1454; Nov. 28, 1990, Pub. L. 101–624, title XI, §1125, 104 Stat. 3506, authorized Secretary to announce and provide for supplemental set-aside and acreage limitation program.
§1445i. Multiyear set-aside contracts for 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice
Notwithstanding any other provision of law:
(1) The Secretary of Agriculture may enter into multiyear set-aside contracts for a period not to extend beyond the 1990 crops. Such contracts may be entered into only as a part of the programs in effect for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, and only producers participating in one or more of such programs shall be eligible to contract with the Secretary under this section. Producers agreeing to a multiyear set-aside agreement shall be required to devote the set-aside acreage to vegetative cover capable of maintaining itself through such period to provide soil protection, water quality enhancement, wildlife production, and natural beauty. Grazing of livestock under this section shall be prohibited, except in areas of a major disaster, as determined by the President, if the Secretary finds there is a need for such grazing as a result of such disaster. Producers entering into agreements under this section shall also agree to comply with all applicable State and local laws and regulations governing noxious weed control.
(2) The Secretary shall provide cost-sharing incentives to farm operators for the establishment of vegetative cover, whenever a multiyear set-aside contract is entered into under this section.
(3) The Secretary may issue such regulations as the Secretary determines necessary to carry out this section.
(4) The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(Pub. L. 99–198, title X, §1010, Dec. 23, 1985, 99 Stat. 1454.)
Editorial Notes
Codification
Section was enacted as part of the Food Security Act of 1985, and not as part of the Agricultural Act of 1949 which is classified principally to this chapter. For complete classification of the 1949 Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
§1445j. Deficiency and land diversion payments
(a) Deficiency payments
(1) In general
If the Secretary establishes an acreage limitation program for any of the 1991 through 1997 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for the commodity for the crop, the Secretary shall make advance deficiency payments available to producers for each of the crops.
(2) Terms and conditions
Advance deficiency payments under paragraph (1) shall be made to the producer under the following terms and conditions:
(A) Form
Such payments may be made available in the form of—
(i) cash;
(ii) commodities owned by the Commodity Credit Corporation and certificates redeemable in a commodity owned by the Commodity Credit Corporation, except that not more than 50 percent of the payments may be made in commodities or the certificates in the case of any producer; or
(iii) any combination of clauses (i) and (ii).
(B) Commodities and certificates
If payments are made available to producers as provided for under subparagraph (A)(ii), such producers may elect to receive such payments either in the form of—
(i) such commodities; or
(ii) such certificates.
(C) Maturity
Such a certificate shall be redeemable for a period not to exceed 3 years from the date the certificate is issued.
(D) Storage
The Commodity Credit Corporation shall pay the cost of storing a commodity that may be received under such a certificate until such time as the certificate is redeemed.
(E) Timing
The payments shall be made available as soon as practicable after the producer enters into a contract with the Secretary to participate in such program.
(F) Amounts
The payments shall be made available in such amounts as the Secretary determines appropriate to encourage adequate participation in the program, except that the amount may not exceed an amount determined by multiplying—
(i) the estimated payment acreage for the crop; by
(ii) the farm program payment yield for the crop; by
(iii)(I) in the case of wheat and feed grains, not less than 40 percent, nor more than 50 percent, of the projected payment rate; and
(II) in the case of rice and upland cotton, not less than 30 percent, nor more than 50 percent, of the projected payment rate,
as determined by the Secretary.
(G) Repayment
If the deficiency payment payable to a producer for a crop, as finally determined by the Secretary under this Act, is less than the amount paid to the producer as an advance deficiency payment for the crop under this subsection, the producer shall repay an amount equal to the difference between the amount advanced and the amount finally determined by the Secretary to be payable to the producer as a deficiency payment for the crop concerned.
(H) Repayment requirement
If the Secretary determines under this Act that deficiency payments will not be made available to producers on a crop with respect to which advance deficiency payments already have been made under this subsection, the producers who received the advance payments shall repay the payments.
(I) Deadline
Any repayment required under subparagraph (G) or (H) shall be due at the end of the marketing year for the crop with respect to which the payments were made.
(J) Noncompliance
If a producer fails to comply with requirements established under the acreage limitation program involved after obtaining an advance deficiency payment under this subsection, the producer shall repay immediately the amount of the advance, plus interest thereon in such amount as the Secretary shall prescribe by regulation.
(3) Regulations
The Secretary may issue such regulations as the Secretary determines necessary to carry out this section.
(4) Commodity Credit Corporation
The Secretary shall carry out the program authorized by this section through the Commodity Credit Corporation.
(5) Additional authority
The authority provided in this section shall be in addition to, and not in place of, any authority granted to the Secretary or the Commodity Credit Corporation under any other provision of law.
(Oct. 31, 1949, ch. 792, title I, §114, formerly §107C, as added Pub. L. 97–253, title I, §120, Sept. 8, 1982, 96 Stat. 766; amended Pub. L. 99–198, title X, §1002, Dec. 23, 1985, 99 Stat. 1446; Pub. L. 100–203, title I, §1110, Dec. 22, 1987, 101 Stat. 1330–6; Pub. L. 101–239, title I, §1003(b)(1), Dec. 19, 1989, 103 Stat. 2108; Pub. L. 101–508, title I, §1102(d), Nov. 5, 1990, 104 Stat. 1388–2; renumbered §114 and amended Pub. L. 101–624, title XI, §§1121(a), (c), 1161(a)(1), Nov. 28, 1990, 104 Stat. 3500, 3503, 3520; Pub. L. 102–237, title I, §109, Dec. 13, 1991, 105 Stat. 1828; Pub. L. 103–66, title I, §1101(b)(1), Aug. 10, 1993, 107 Stat. 314; Pub. L. 104–127, title I, §171(b)(2)(G), Apr. 4, 1996, 110 Stat. 938.)
Editorial Notes
References in Text
This Act, referred to in subsec. (a)(1), (2)(G), (H), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, known as the Agricultural Act of 1949, which is classified principally to this chapter (§1421 et seq.). For complete classification of this Act to the Code, see Short Title note set out under section 1421 of this title and Tables.
Codification
Section was classified to section 1445b–2 of this title prior to its renumbering by Pub. L. 101–624.
Amendments
1996—Subsecs. (b), (c). Pub. L. 104–127 struck out subsecs. (b) and (c) which, in subsec. (b), related to land diversion payments to assist in adjusting total national acreage of any of 1991 through 1995 crops of wheat, feed grains, upland cotton, or rice to desirable levels, and, in subsec. (c), related to timing of deficiency payments made available to producers for any of 1991 through 1997 crops of wheat and feed grains.
1993—Subsecs. (a)(1), (c). Pub. L. 103–66 substituted "1997" for "1995".
1991—Subsec. (c). Pub. L. 102–237, §109(1), substituted "section" for "sections" in introductory provisions.
Subsec. (c)(2). Pub. L. 102–237, §109(3), added par. (2) and struck out former par. (2) which read as follows: "Seventy-five percent of the final projected deficiency payment for the crop, reduced by the amount of the advance, shall be made available as soon as practicable after the end of the first 5 months of the applicable marketing year."
Subsec. (c)(3), (4). Pub. L. 102–237, §109(2), (3), added par. (3) and redesignated former par. (3) as (4).
1990—Pub. L. 101–624, §1121(a), amended section generally, substituting provisions relating to deficiency and land diversion payments for the 1991 through 1995 crops of wheat, feed grains, upland cotton, and rice for provisions relating to advance deficiency and diversion payments for the 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice.
Pub. L. 101–624, §1121(c), amended Pub. L. 99–198. See 1985 Amendment note below.
Subsec. (c). Pub. L. 101–508 substituted "wheat and feed grains which payments are calculated as provided in sections 1445b–3a(c)(1)(B)(ii), 1445b–3a(p), or 1444f(c)(1)(B)(ii) of this title" for "wheat, feed grains, and rice which payments are calculated on the basis of the national weighted average market price (or, in the case of rice, the national average market price) for the marketing year for the crop".
1989—Subsec. (a)(2)(G). Pub. L. 101–239 temporarily inserted "(taking into consideration any reduction in the payment made under section 1433d of this title)" and substituted "amount finally" for "amount finallly". See Effective and Termination Dates of 1989 Amendment note below.
1987—Subsec. (a)(1). Pub. L. 100–203, §1110(1), temporarily added par. (1) and struck out former par. (1) which read as follows: "If the Secretary establishes an acreage limitation or set-aside program for any of the 1986 through 1990 crops of wheat, feed grains, upland cotton, or rice under this Act and determines that deficiency payments will likely be made for such commodity for such crop, the Secretary—
"(A) shall make advance deficiency payments available to producres [sic] who agree to participate in such program for the 1986 crop; and
"(B) may make such payments available to such producers for each of the 1987 through 1990 crops."
See Effective and Termination Dates of 1987 Amendment note below.
Subsec. (a)(2)(F)(iii). Pub. L. 100–203, §1110(2), temporarily added cl. (iii) and struck out former cl. (iii) which read as follows: "50 percent of the projected payment rate,". See Effective and Termination Dates of 1987 Amendment note below.
1985—Pub. L. 99–198, as amended by Pub. L. 101–624, §1121(c), amended section generally, substituting provisions relating to advance deficiency and diversion payments for the 1986 through 1990 crops of wheat, feed grains, upland cotton and rice for provisions relating to advance deficiency payments for the 1982 through 1985 crops of wheat, feed grains, upland cotton and rice.
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.
Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as a note under section 1994 of this title.
Effective and Termination Dates of 1989 Amendment
Pub. L. 101–239, title I, §1003(b)(1), Dec. 19, 1989, 103 Stat. 2108, provided that the amendment made by section 1003(b)(1) is effective only for the 1990 crops of wheat, feed grains, upland cotton, and rice.
Effective and Termination Dates of 1987 Amendment
Pub. L. 100–203, title I, §1110, Dec. 22, 1987, 101 Stat. 1330–6, provided that the amendment made by section 1110 is effective only for the 1988 through 1990 crops of wheat, feed grains, upland cotton, and rice.
Effective and Termination Dates of 1985 Amendment
That portion of section 1002 of Pub. L. 99–198 which provided that the amendment made by that section was effective only for 1986 through 1990 crops of wheat, feed grains, upland cotton, and rice, was struck out by section 1121(c) of Pub. L. 101–624.
Effective and Termination Dates
Pub. L. 97–253, title I, §120, Sept. 8, 1982, 96 Stat. 766, provided that this section is effective only for the 1982 through 1985 crops of wheat, feed grains, upland cotton, and rice.
Calculation of Refunds of Advance Established Price Payments by Producers of 1988 or 1989 Crops of Feed Barley
Pub. L. 101–624, title IV, §405, Nov. 28, 1990, 104 Stat. 3420, provided that:
"(a) Mandatory Calculation of Refund.—
"(1) In general.—Not later than 90 days after the date of enactment of this Act [Nov. 28, 1990], the Secretary of Agriculture shall calculate, for informational purposes only (except as provided in the discretionary authority under subsection (b)), the amount of the refund of any advance deficiency payment a producer of barley who participated in the 1988 or 1989 Federal barley price support program would be required to make pursuant to section 107C of the Agricultural Act of 1949 (7 U.S.C. 1445b–2) (as it existed immediately before the date of enactment of this Act) based on a formula which excludes malting barley from the market price calculations of barley used to determine the amount of refund of the advance deficiency payment required of the producer.
"(2) Disclosure.—
"(A) To the public.—The Secretary shall publish in the Federal Register—
"(i) the formula used to perform the calculations described in paragraph (1);
"(ii) the aggregate results that the use of the calculation would have pursuant to subsection (b), in terms of—
"(I) the total reduction in the amount of refunds;
"(II) the number of producers affected; and
"(III) any other information the Secretary determines appropriate;
"(iii) a declaration of the Secretary's decision whether to use the calculation to recalculate barley producer's refunds pursuant to subsection (b); and
"(iv) a statement of the Secretary's reasons for the decision described in clause (iii).
"(B) To producers.—The Secretary shall make available to each producer of 1988 or 1989 crop barley, on request, a statement detailing the effect of the calculation of refunds described in paragraph (1) on the producer's 1988 or 1989 refund.
"(b) Discretionary Use of Calculation.—
"(1) In general.—The Secretary may use the calculation described in subsection (a) to determine whether or not to reduce the total refund owed by a producer of 1988 or 1989 crop barley under section 107C of the Agricultural Act of 1949 [7 U.S.C. 1445b–2] (as it existed immediately before the date of enactment of this Act [Nov. 28, 1990]).
"(2) Procedure for use of calculation.—If the Secretary decides to use the calculation described in subsection (a) as provided under paragraph (1), in the case of a producer of 1988 or 1989 crop barley who paid the refund of the advance deficiency payment for the crop calculated prior to the date of enactment of this Act (or any amount of refund in excess of the amount of the refund determined in accordance with paragraph (1)), the Secretary—
"(i) shall, before May 31, 1991, reimburse the producer the amount of refund paid by the producer in excess of the refund determined in accordance with this section;
"(ii) shall have the option to make the reimbursement in a lump sum or in installments;
"(iii) shall, not later than 90 days after the date of enactment of this Act, notify producers who are eligible to receive the reimbursement of their 1988 or 1989 advance deficiency payment refund under this section—
"(I) of the timing of the payment of the reimbursement (either in lump sum or in installments);
"(II) that the amount of the reimbursement shall not bear interest if paid before February 15, 1991; and
"(III) that the amount of the reimbursement paid after February 15, 1991, shall bear interest at a rate of at least 7 percent per annum; and
"(iv) may elect to pay the reimbursement in a lump sum with generic certificates redeemable for commodities owned by the Commodity Credit Corporation if the reimbursement is paid in full not later than 60 days after the date of enactment of this Act."
Repayment Requirements
Pub. L. 101–624, title XI, §1121(b), Nov. 28, 1990, 104 Stat. 3502, provided that:
"(1) In general.—Notwithstanding any other provision of law, effective only for producers who are suffering financial hardship, as determined by the Secretary, on a farm who received an advance deficiency payment for the 1988 or 1989 crop of a commodity and are otherwise described in paragraph (2), the Secretary of Agriculture—
"(A) shall not charge an annual interest rate for any delinquent refund for the advance deficiency payment in excess of prevailing rates for operating loans made by Farm Credit System institutions;
"(B) shall not withhold, in each of the 3 succeeding crop years, more than 1/3 of the farm program payments otherwise due to the producers, as a result of any delinquency in providing the refund; and
"(C) shall permit the producers to make the refund in three equal installments during each of the crop years 1990, 1991, and 1992, if the producers enter into an agreement to obtain multiperil crop insurance for each of the crop years, to the extent that the Secretary determines is similar to section 107 of the Disaster Assistance Act of 1989 (7 U.S.C. 1421 et seq.) [§107 of Pub. L. 101–82, 7 U.S.C. 1421 note].
"(2) Application.—This subparagraph shall apply if—
"(A) the producers received an advance deficiency payment for the 1988 or 1989 crop of a commodity under section 107C(a) of the Agricultural Act of 1949 (7 U.S.C. 1445b–2(a));
"(B) the producers are required to provide a refund of at least $1,500 under subparagraph (G) or (H) of section 107C(a)(2) of such Act with respect to the advance deficiency payments;
"(C) the producers reside in a county, or in a county that is contiguous to a county, where the Secretary of Agriculture has found that farming, ranching, or aquaculture operations have been substantially affected as evidenced by a reduction in normal production for the county of at least 30 percent during two of the three crop years 1988, 1989, and 1990 by a natural disaster or by a major disaster or emergency designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); and
"(D) the total quantity of the 1988 or 1989 crop of the commodity that the producers were able to harvest is less than the result of multiplying 65 percent of the farm payment yield established by the Secretary for the crop by the sum of the acreage planted for the harvest and the acreage prevented from being planted (because of the disaster or emergency referred to in subparagraph (C)) for the crop."
Advance Deficiency Payments
Pub. L. 99–509, title I, §1021, Oct. 21, 1986, 100 Stat. 1877, required Secretary of Agriculture to make advance deficiency payments available for 1987 crops of wheat, feed grains, upland cotton, and rice, and provided that percentage of projected payment rate used in computing such payments shall not be less than (1) 40 percent in the case of wheat and feed grains, and (2) 30 percent in the case of rice and upland cotton.
§1445k. Payments in commodities
(a) In-kind payments by Secretary
In making in-kind payments under any of the annual programs for wheat, feed grains, upland cotton, or rice (other than negotiable marketing certificates for upland cotton or rice), the Secretary may—
(1) acquire and use like commodities that have been pledged to the Commodity Credit Corporation as security for price support loans, including loans made to producers under section 1445e of this title; and
(2) use other like commodities owned by the Commodity Credit Corporation.
(b) Methods of payments
The Secretary may make in-kind payments—
(1) by delivery of the commodity to the producer at a warehouse or other similar facility, as determined by the Secretary;
(2) by the transfer of negotiable warehouse receipts;
(3) by the issuance of negotiable certificates which the Commodity Credit Corporation shall redeem for a commodity in accordance with regulations prescribed by the Secretary; or
(4) by such other methods as the Secretary determines appropriate to enable the producer to receive payments in an efficient, equitable, and expeditious manner so as to ensure that the producer receives the same total return as if the payments had been made in cash.
(c) Commodity certificates
The Secretary shall pay interest on the cash redemption of a commodity certificate issued by the Secretary to a producer who holds the certificate for at least 150 days. This subsection shall not apply with respect to commodity certificates issued in connection with the export enhancement program or the marketing promotion program established under the Agricultural Trade Act of 1978.
(Oct. 31, 1949, ch. 792, title I, §115, formerly §107E, as added Pub. L. 99–198, title X, §1005, Dec. 23, 1985, 99 Stat. 1448; renumbered §115 and amended Pub. L. 101–624, title XI, §§1122(a), 1161(a)(1), Nov. 28, 1990, 104 Stat. 3503, 3520.)
Editorial Notes
References in Text
The Agricultural Trade Act of 1978, referred to in subsec. (c), is Pub. L. 95–501, Oct. 21, 1978, 92 Stat. 1685, as amended generally by Pub. L. 101–624, title XV, §1531, Nov. 28, 1990, 104 Stat. 3668, which is classified generally to chapter 87 (§5601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5601 of this title and Tables.
Codification
Section was classified to section 1445b–4 of this title prior to its renumbering by Pub. L. 101–624.
Amendments
1990—Subsec. (c). Pub. L. 101–624, §1122(a), added subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by Pub. L. 101–624 effective beginning with 1991 crop of an agricultural commodity, with provision for prior crops, see section 1171 of Pub. L. 101–624, set out as a note under section 1421 of this title.
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 9092(b)(7) of this title.
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 8782(b)(7) of this title.
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 7992(b)(7) of this title.
Section inapplicable to 1996 through 2002 crops of loan commodities, peanuts, and sugar and inapplicable to milk during period beginning Apr. 4, 1996, and ending Dec. 31, 2002, see section 7301(b)(1)(G) of this title.
Redemption of Commodity Certificates
Pub. L. 101–624, title XI, §1122(b), Nov. 28, 1990, 104 Stat. 3503, provided that:
"(1) In general.—A subsequent holder of a commodity certificate issued by the Commodity Credit Corporation shall be allowed to exchange the expired commodity certificate under the same rules that apply to an original holder of the certificate.
"(2) Application and redemption limitations.—This subsection shall only apply during the 180-day period beginning on the date of enactment of this Act [Nov. 28, 1990]. No person may redeem more than $1,000 worth of certificates under this subsection.
"(3) Redemption limitations.—In no event shall a person receive a payment from the Commodity Credit Corporation for a certificate that is redeemed under this subsection in an amount greater than the price paid for the certificate by the person. No expired certificate shall be exchanged under this section if the owner purchased the certificate after January 1, 1990."