US (United States) Code. Title 7. Chapter 100: Agricultural market transition

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Agriculture

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7 USC CHAPTER 100 - AGRICULTURAL MARKET TRANSITION 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

.

-HEAD-

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

-MISC1-

SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

Sec.

7201. Short title and purpose.

(a) Short title.

(b) Purpose.

7202. Definitions.

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

7211. Authorization for use of production flexibility contracts.

(a) Offer and terms.

(b) Eligible owners and producers described.

(c) Tenants and sharecroppers.

(d) Eligible cropland described.

(e) Quantity of eligible cropland covered by

contract.

(f) Voluntary reduction in contract acreage.

7212. Elements of contracts.

(a) Time for contracting.

(b) Duration of contract.

(c) Estimation of contract payments.

(d) Time for payment.

7213. Amounts available for contract payments.

(a) Fiscal year amounts.

(b) Allocation.

(c) Adjustment.

(d) Additional rice allocation.

(e) Exclusion of certain amounts from contract

payments.

(f) Effect of payment limitation.

7214. Determination of contract payments under contracts.

(a) Individual payment quantity of contract

commodities.

(b) Annual payment quantity of contract commodities.

(c) Annual payment rate.

(d) Annual payment amount.

(e) Reduction in payment amount.

(f) Assignment of contract payments.

(g) Sharing of contract payments.

7215. Applicability of payment limitations.

7216. Violations of contract.

(a) Termination of contract for violation.

(b) Refund or adjustment.

(c) Foreclosure.

(d) Review.

7217. Transfer or change of interest in lands subject to contract.

(a) Termination.

(b) Modification.

(c) Exception.

7218. Planting flexibility.

(a) Permitted crops.

(b) Limitations and exceptions regarding fruits and

vegetables.

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

7231. Availability of nonrecourse marketing assistance loans.

(a) Nonrecourse loans available.

(b) Eligible production.

(c) Compliance with conservation and wetlands

requirements.

(d) Additional outlays prohibited.

7232. Loan rates for marketing assistance loans.

(a) Wheat.

(b) Feed grains.

(c) Upland cotton.

(d) Extra long staple cotton.

(e) Rice.

(f) Oilseeds.

7233. Term of loans.

(a) Term of loan.

(b) Special rule for cotton.

(c) Extensions prohibited.

7234. Repayment of loans.

(a) Repayment rates for wheat, feed grains, and

oilseeds.

(b) Repayment rates for upland cotton and rice.

(c) Repayment rates for extra long staple cotton.

(d) Prevailing world market price.

(e) Adjustment of prevailing world market price for

upland cotton.

7235. Loan deficiency payments.

(a) Availability of loan deficiency payments.

(b) Computation.

(c) Loan payment rate.

(d) Exception for extra long staple cotton.

(e) Transition.

(f) Beneficial interest.

(g) Effective date for payment rate determination.

7236. Special marketing loan provisions for upland cotton.

(a) Cotton user marketing certificates.

(b) Special import quota.

(c) Limited global import quota for upland cotton.

7236a. Special competitive provisions for extra long staple cotton.

(a) Competitiveness program.

(b) Payments under program; trigger.

(c) Eligible recipients.

(d) Payment amount.

(e) Form of payment.

7237. Availability of recourse loans for high moisture feed grains

and seed cotton and other fibers.

(a) High moisture feed grains.

(b) Recourse loans available for seed cotton.

(c) Recourse loans available for mohair.

(d) Repayment rates.

SUBCHAPTER IV - OTHER COMMODITIES

PART A - DAIRY

7251. Milk price support program.

(a) Support activities.

(b) Rate.

(c) Purchase prices.

(d) Special rule for butter and nonfat dry milk

purchase prices.

(e) Refunds of 1995 and 1996 assessments.

(f) Commodity Credit Corporation.

(g) Omitted.

(h) Period of effectiveness.

7252. Repealed.

7253. Consolidation and reform of Federal milk marketing orders.

(a) Amendment of orders.

(b) Expedited process.

(c) Failure to timely consolidate orders.

(d) Report regarding further reforms.

7254. Effect on fluid milk standards in State of California.

7255. Milk manufacturing marketing adjustment.

(a) Maximum allowances established.

(b) ''Manufacturing allowance'' defined.

(c) Effect of violation.

(d) Effective date; implementation.

7256. Northeast Interstate Dairy Compact.

7257. Authority to assist in establishment and maintenance of one

or more export trading companies.

7258. Standby authority to indicate entity best suited to provide

international market development and export services.

(a) Indication of entity best suited to assist

international market development for and export

of United States dairy products.

(b) Funding of export activities.

(c) Application of section.

7259. Study and report regarding potential impact of Uruguay Round

on prices, income, and government purchases.

(a) Study.

(b) Report.

(c) Rule of construction.

PART B - SUGAR

7271. Repealed.

7272. Sugar program.

(a) Sugarcane.

(b) Sugar beets.

(c) Loan rate adjustments.

(d) Term of loans.

(e) Loan type; processor assurances.

(f) Loans for in-process sugar.

(g) Avoiding forfeitures; Corporation inventory

disposition.

(h) Information reporting.

(i) Substitution of refined sugar.

(j) Effective period.

SUBCHAPTER V - ADMINISTRATION

7281. Administration.

(a) Use of Commodity Credit Corporation.

(b) Omitted.

(c) Determinations by Secretary.

(d) Regulations.

7282. Adjustments of loans.

(a) Adjustment authority.

(b) Manner of adjustment.

(c) Adjustment on county basis.

7283. Commodity Credit Corporation interest rate.

(a) In general.

(b) Sugar.

7284. Personal liability of producers for deficiencies.

(a) In general.

(b) Limitations.

(c) Acquisition of collateral.

(d) Sugarcane and sugar beets.

7285. Commodity Credit Corporation sales price restrictions.

(a) General sales authority.

(b) Nonapplication of sales price restrictions.

(c) Presidential disaster areas.

(d) Efficient operations.

7286. Commodity certificates.

(a) In general.

(b) Methods of payment.

(c) Administration.

SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

7301. Suspension and repeal of permanent price support authority.

(a) Agricultural Adjustment Act of 1938.

(b) Agricultural Act of 1949.

(c) Suspension of certain quota provisions.

7302. Effect of chapter.

(a) Effect on prior crops.

(b) Liability.

SUBCHAPTER VII - COMMISSION ON 21ST CENTURY PRODUCTION AGRICULTURE

7311. Establishment.

7312. Composition.

(a) Membership and appointment.

(b) Qualifications.

(c) Term of members; vacancies.

(d) Time for appointment; first meeting.

(e) Chairperson.

7313. Comprehensive review of past and future of production

agriculture.

(a) Initial review.

(b) Subsequent review.

(c) Recommendations.

7314. Reports.

(a) Report on initial review.

(b) Report on subsequent review.

7315. Powers.

(a) Hearings.

(b) Assistance from other agencies.

(c) Mail.

(d) Assistance from Secretary.

7316. Commission procedures.

(a) Meetings.

(b) Quorum.

7317. Personnel matters.

(a) Compensation.

(b) Staff.

(c) Detailed personnel.

7318. Termination of Commission.

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

7331. Options pilot program.

(a) Pilot programs authorized.

(b) Distribution of pilot program.

(c) Eligible participants.

(d) Notice to producers.

(e) Contracts.

(f) Eligible markets.

(g) Recordkeeping.

(h) Use of Commodity Credit Corporation.

7332. Risk management education.

7333. Administration and operation of noninsured crop assistance

program.

(a) Operation and administration of program.

(b) Application for noninsured crop disaster

assistance.

(c) Loss requirements.

(d) Payment.

(e) Yield determinations.

(f) Contract payments.

(g) Use of Commodity Credit Corporation.

(h) Exclusions.

(i) Payment and income limitations.

(j) Omitted.

(k) Service fee.

7334. Flood risk reduction.

(a) In general.

(b) Duties of producers.

(c) Duties of Secretary.

(d) Commodity Credit Corporation.

(e) Additional payments.

(f) Limitation on payments.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1308-3, 1508, 1515, 7334

of this title; title 16 sections 3811, 3821, 3839bb.

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7 USC SUBCHAPTER I - SHORT TITLE, PURPOSE, AND

DEFINITIONS 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

.

-HEAD-

SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-CITE-

7 USC Sec. 7201 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-HEAD-

Sec. 7201. Short title and purpose

-STATUTE-

(a) Short title

This chapter may be cited as the ''Agricultural Market Transition

Act''.

(b) Purpose

It is the purpose of this chapter -

(1) to authorize the use of binding production flexibility

contracts between the United States and agricultural producers to

support farming certainty and flexibility while ensuring

continued compliance with farm conservation and wetland

protection requirements;

(2) to make nonrecourse marketing assistance loans and loan

deficiency payments available for certain crops;

(3) to improve the operation of farm programs for milk,

peanuts, and sugar; and

(4) to establish a commission to undertake a comprehensive

review of past and future production agriculture in the United

States.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 101, Apr. 4, 1996, 110 Stat. 896.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in text, was in the original ''this

title'', meaning title I of Pub. L. 104-127, Apr. 4, 1996, 110

Stat. 896, which enacted this chapter and section 6933 of this

title, amended sections 1308, 1308-1, 1308-3, 1358-1, 1358b, 1358c,

1359a, 1373, 1441, 1445j, 1508, 1516, 4504, 6401, 6402, 6413, 6414,

and 6932 of this title and sections 713a-14, 714b, 714i, and 714k

of Title 15, Commerce and Trade, repealed sections 1426, 1433f,

1441-2, 1444-2, 1444f, 1445b-3a, 1445c-3, 1445h, 1446e to 1446h,

and 1519 of this title, enacted provisions set out as notes under

sections 1373, 1446e, 1446e-1, and 1508 of this title, and repealed

provisions set out as a note under section 1421 of this title. For

complete classification of title I to the Code, see Tables.

-MISC2-

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-228, Sec. 1, Aug. 12, 1998, 112 Stat. 1516, provided

that: ''This Act (amending section 7212 of this title) may be cited

as the 'Emergency Farm Financial Relief Act'.''

SHORT TITLE

Section 1(a) of Pub. L. 104-127 provided that: ''This Act (see

Tables for classification) may be cited as the 'Federal Agriculture

Improvement and Reform Act of 1996'.''

SEVERABILITY

Section 928 of Pub. L. 104-127 provided that: ''If any provision

of this Act (see Short Title note above) or the application thereof

to any person or circumstance is held invalid, the invalidity shall

not affect other provisions or applications of this Act that can be

given effect without regard to the invalid provision or

application, and to this end the provisions of this Act are

severable.''

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7 USC Sec. 7202 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER I - SHORT TITLE, PURPOSE, AND DEFINITIONS

-HEAD-

Sec. 7202. Definitions

-STATUTE-

In this chapter:

(1) Agricultural Act of 1949

Except in section 7301 of this title, the term ''Agricultural

Act of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421

et seq.), as in effect prior to the suspensions under section

7301(b)(1) of this title.

(2) Considered planted

The term ''considered planted'' means acreage that is

considered planted under title V of the Agricultural Act of 1949

(7 U.S.C. 1461 et seq.) and such other acreage as the Secretary

considers fair and equitable.

(3) Contract

The terms ''contract'' and ''production flexibility contract''

mean a production flexibility contract entered into under section

7211 of this title.

(4) Contract acreage

The term ''contract acreage'' means 1 or more crop acreage

bases established for contract commodities under title V of the

Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) that would have

been in effect for the 1996 crop (but for suspension under

section 7301(b)(1) of this title).

(5) Contract commodity

The term ''contract commodity'' means wheat, corn, grain

sorghum, barley, oats, upland cotton, and rice.

(6) Contract payment

The term ''contract payment'' means a payment made under this

subchapter (FOOTNOTE 1) pursuant to a contract.

(FOOTNOTE 1) So in original. Probably should be ''chapter''.

(7) Department

The term ''Department'' means the Department of Agriculture.

(8) Extra long staple cotton

The term ''extra long staple cotton'' means cotton that -

(A) 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 United

States 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 the varieties or types; and

(B) is ginned on a roller-type gin or, if authorized by the

Secretary, ginned on another type gin for experimental

purposes.

(9) Farm program payment yield

The term ''farm program payment yield'' means the farm program

payment yield established for the 1995 crop of a contract

commodity under section 505 of the Agricultural Act of 1949 (7

U.S.C. 1465). The Secretary shall adjust the farm program payment

yield for the 1995 crop of a contract commodity to account for

any additional yield payments made with respect to that crop

under subsection (b)(2) of the section.

(10) Loan commodity

The term ''loan commodity'' means each contract commodity,

extra long staple cotton, and oilseed.

(11) Oilseed

The term ''oilseed'' means a crop of soybeans, sunflower seed,

rapeseed, canola, safflower, flaxseed, mustard seed, or, if

designated by the Secretary, other oilseeds.

(12) Producer

The term ''producer'' means an owner, operator, landlord,

tenant, or sharecropper who shares in the risk of producing a

crop and who is entitled to share in the crop available for

marketing from the farm, or would have shared had the crop been

produced. In determining whether a grower of hybrid seed is a

producer, the Secretary shall not take into consideration the

existence of a hybrid seed contract.

(13) Secretary

The term ''Secretary'' means the Secretary of Agriculture.

(14) State

The term ''State'' means each of the several States of the

United States, the District of Columbia, the Commonwealth of

Puerto Rico, and any other territory or possession of the United

States.

(15) United States

The term ''United States'', when used in a geographical sense,

means all of the States.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 102, Apr. 4, 1996, 110 Stat. 897.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in text, see note

set out under section 7201 of this title.

The Agricultural Act of 1949, referred to in pars. (1), (2), and

(4), is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended,

which is classified principally to chapter 35A (Sec. 1421 et seq.)

of this title. Title V of the Act, which was classified generally

to subchapter IV (Sec. 1461 et seq.) of chapter 35A of this title,

was omitted from the Code. For complete classification of this Act

to the Code, see Short Title note set out under section 1421 of

this title and Tables.

Section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465),

referred to in par. (9), was omitted from the Code.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7911, 7916 of this title.

-CITE-

7 USC SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

.

-HEAD-

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

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7 USC Sec. 7211 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7211. Authorization for use of production flexibility

contracts

-STATUTE-

(a) Offer and terms

The Secretary shall offer to enter into a production flexibility

contract with an eligible owner or producer described in subsection

(b) of this section on a farm containing eligible cropland. Under

the terms of a contract, the owner or producer shall agree, in

exchange for annual contract payments, to -

(1) comply with applicable conservation requirements under

subtitle B of title XII of the Food Security Act of 1985 (16

U.S.C. 3811 et seq.);

(2) comply with applicable wetland protection requirements

under subtitle C of title XII of the Act (16 U.S.C. 3821 et

seq.);

(3) comply with the planting flexibility requirements of

section 7218 of this title; and

(4) use the land subject to the contract for an agricultural or

related activity, but not for a nonagricultural commercial or

industrial use, as determined by the Secretary.

(b) Eligible owners and producers described

The following producers and owners shall be eligible to enter

into a contract:

(1) An owner of eligible cropland who assumes all or a part of

the risk of producing a crop.

(2) A producer (other than an owner) on eligible cropland with

a share-rent lease of the eligible cropland, regardless of the

length of the lease, if the owner enters into the same contract.

(3) A producer (other than an owner) on eligible cropland who

cash rents the eligible cropland under a lease expiring on or

after September 30, 2002, in which case the owner is not required

to enter into the contract.

(4) A producer (other than an owner) on eligible cropland who

cash rents the eligible cropland under a lease expiring before

September 30, 2002. The owner of the eligible cropland may also

enter into the same contract. If the producer elects to enroll

less than 100 percent of the eligible cropland in the contract,

the consent of the owner is required.

(5) An owner of eligible cropland who cash rents the eligible

cropland and the lease term expires before September 30, 2002, if

the tenant declines to enter into a contract. In the case of an

owner covered by this paragraph, contract payments shall not

begin under a contract until the lease held by the tenant ends.

(6) An owner or producer described in any preceding paragraph

regardless of whether the owner or producer purchased

catastrophic risk protection for a 1996 crop under section

1508(b) of this title.

(c) Tenants and sharecroppers

In carrying out this subchapter, the Secretary shall provide

adequate safeguards to protect the interests of tenants and

sharecroppers.

(d) Eligible cropland described

Land shall be considered to be cropland eligible for coverage

under a contract only if the land has contract acreage attributable

to the land and -

(1) for at least 1 of the 1991 through 1995 crops, at least a

portion of the land was enrolled in the acreage reduction program

authorized for a crop of a contract commodity under section 101B,

103B, 105B, or 107B of the Agricultural Act of 1949 or was

considered planted;

(2) was subject to a conservation reserve contract under

section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)

whose term expired, or was voluntarily terminated, on or after

January 1, 1995; or

(3) is released from coverage under a conservation reserve

contract by the Secretary during the period beginning on January

1, 1995, and ending on the date specified in section 7212(a)(2)

of this title.

(e) Quantity of eligible cropland covered by contract

Subject to subsection (b)(4) of this section, an owner or

producer may enroll as contract acreage all or a portion of the

eligible cropland on the farm.

(f) Voluntary reduction in contract acreage

Subject to subsection (b)(4) of this section, an owner or

producer who enters into a contract may subsequently reduce the

quantity of contract acreage covered by the contract.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 111, Apr. 4, 1996, 110 Stat. 898.)

-REFTEXT-

REFERENCES IN TEXT

The Food Security Act of 1985, referred to in subsec. (a)(1),

(2), is Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.

Subtitles B and C of title XII of the Act are classified generally

to subchapters II (Sec. 3811 et seq.) and III (Sec. 3821 et seq.),

respectively, of chapter 58 of Title 16, Conservation. For complete

classification of this Act to the Code, see Short Title of 1985

Amendment note set out under section 1281 of this title and Tables.

This subchapter, referred to in subsec. (c), was in the original

''this subtitle'', meaning subtitle B (Sec. 111-118) of title I of

Pub. L. 104-127, Apr. 4, 1996, 110 Stat. 898, which enacted this

subchapter and amended sections 1308, 1308-1, and 1308-3 of this

title. For complete classification of subtitle B to the Code, see

Tables.

Sections 101B, 103B, 105B, and 107B of the Agricultural Act of

1949, referred to in subsec. (d)(1), were classified to sections

1441-2, 1444-2, 1444f, and 1445b-3a, respectively, of this title

prior to repeal by section 7301(b)(2)(A)-(D) of this title.

-MISC2-

VIOLATION OF CONTRACT; DENIAL OF FUNDS FOR SALARIES

Pub. L. 104-180, title VII, Sec. 726, Aug. 6, 1996, 110 Stat.

1600, provided that: ''None of the funds made available in this Act

(see Tables for classification) may be used to pay the salaries of

employees of the Department of Agriculture who make payments

pursuant to a production flexibility contract entered into under

section 111 of the Federal Agriculture Improvement and Reform Act

of 1996 (Public Law 104-127; 7 U.S.C. 7211) when it is made known

to the Federal official having authority to obligate or expend such

funds that the land covered by that production flexibility contract

is not being used for the production of an agricultural commodity

or is not devoted to a conserving use, unless it is also made known

to that Federal official that the lack of agricultural production

or the lack of a conserving use is a consequence of drought, flood,

or other natural disaster.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7202, 7216, 7917 of this

title.

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7 USC Sec. 7212 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7212. Elements of contracts

-STATUTE-

(a) Time for contracting

(1) Commencement

To the extent practicable, the Secretary shall commence

entering into contracts not later than 45 days after April 4,

1996.

(2) Deadline

Except as provided in paragraph (3), the Secretary may not

enter into a contract after August 1, 1996.

(3) Conservation reserve lands

(A) In general

At the beginning of each fiscal year, the Secretary shall

allow an eligible owner or producer on a farm covered by a

conservation reserve contract entered into under section 3831

of title 16 that terminates after the date specified in

paragraph (2) to enter into or expand a production flexibility

contract to cover the contract acreage of the farm that was

subject to the former conservation reserve contract.

(B) Amount

Contract payments made for contract acreage under this

paragraph shall be made at the rate and amount applicable to

the annual contract payment level for the applicable crop. For

the fiscal year in which the conservation reserve contract is

terminated, the owner or producer subject to the production

flexibility contract may elect to receive either contract

payments or a prorated payment under the conservation reserve

contract, but not both.

(b) Duration of contract

(1) Beginning date

The term of a contract shall begin with -

(A) the 1996 crop of a contract commodity; or

(B) in the case of acreage that was subject to a conservation

reserve contract described in subsection (a)(3) of this

section, the date the production flexibility contract was

entered into or expanded to cover the acreage.

(2) Ending date

The term of a contract shall extend through the 2002 crop,

unless earlier terminated by the owner or producer.

(c) Estimation of contract payments

At the time the Secretary enters into a contract, the Secretary

shall provide an estimate of the minimum contract payments

anticipated to be made during at least the first fiscal year for

which contract payments will be made.

(d) Time for payment

(1) In general

An annual contract payment shall be made not later than

September 30 of each of fiscal years 1996 through 2002.

(2) Advance payments

(A) Fiscal year 1996

At the option of the owner or producer, 50 percent of the

contract payment for fiscal year 1996 shall be made not later

than 30 days after the date on which the contract is entered

into and approved by the Secretary and the owner or producer.

(B) Subsequent fiscal years

At the option of the owner or producer for fiscal year 1997

and each subsequent fiscal year, 50 percent of the annual

contract payment shall be made on December 15 or January 15 of

the fiscal year. The owner or producer may change the date

selected under this subparagraph for a subsequent fiscal year

by providing advance notice to the Secretary.

(3) Special rule

Notwithstanding the requirements for making an annual contract

payment specified in paragraphs (1) and (2), at the option of the

owner or producer, the Secretary shall pay the full amount (or

such portion as the owner or producer may specify) of the

contract payment required to be paid for any of fiscal years 1999

through 2002 at such time or times during that fiscal year as the

owner or producer may specify.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 112, Apr. 4, 1996, 110 Stat. 899;

Pub. L. 105-228, Sec. 2, Aug. 12, 1998, 112 Stat. 1516; Pub. L.

106-78, title VIII, Sec. 811, Oct. 22, 1999, 113 Stat. 1181.)

-MISC1-

AMENDMENTS

1999 - Subsec. (d)(3). Pub. L. 106-78, in par. heading, struck

out ''for fiscal year 1999'' after ''rule'' and, in text,

substituted ''any of fiscal years 1999 through 2002'' for ''fiscal

year 1999''.

1998 - Subsec. (d)(3). Pub. L. 105-228 added par. (3).

PRODUCTION FLEXIBILITY CONTRACT PAYMENTS

Pub. L. 106-170, title V, Sec. 525, Dec. 17, 1999, 113 Stat.

1928, as amended by Pub. L. 107-147, title IV, Sec. 417(24)(A),

Mar. 9, 2002, 116 Stat. 57, provided that: ''Any option to

accelerate the receipt of any payment under a production

flexibility contract which is payable under the Federal Agriculture

Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.), as in

effect on the date of the enactment of this Act (Dec. 17, 1999),

shall be disregarded in determining the taxable year for which such

payment is properly includible in gross income for purposes of the

Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.).''

Pub. L. 105-277, div. J, title II, Sec. 2012, Oct. 21, 1998, 112

Stat. 2681-902, provided that:

''(a) In General. - The options under paragraphs (2) and (3) of

section 112(d) of the Federal Agriculture Improvement and Reform

Act of 1996 (7 U.S.C. 7212(d)(2) and (3)), as in effect on the date

of the enactment of this Act (Oct. 21, 1998), shall be disregarded

in determining the taxable year for which any payment under a

production flexibility contract under subtitle B of title I of such

Act (7 U.S.C. 7211 et seq.) (as so in effect) is properly

includible in gross income for purposes of the Internal Revenue

Code of 1986 (26 U.S.C. 1 et seq.).

''(b) Effective Date. - Subsection (a) shall apply to taxable

years ending after December 31, 1995.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7211 of this title.

-CITE-

7 USC Sec. 7213 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7213. Amounts available for contract payments

-STATUTE-

(a) Fiscal year amounts

The Secretary shall, to the maximum extent practicable, expend

the following amounts to satisfy the obligations of the Secretary

under all contracts:

(1) For fiscal year 1996, $5,570,000,000.

(2) For fiscal year 1997, $5,385,000,000.

(3) For fiscal year 1998, $5,800,000,000.

(4) For fiscal year 1999, $5,603,000,000.

(5) For fiscal year 2000, $5,130,000,000.

(6) For fiscal year 2001, $4,130,000,000.

(7) For fiscal year 2002, $4,008,000,000.

(b) Allocation

The amount made available for a fiscal year under subsection (a)

of this section shall be allocated as follows:

(1) For wheat, 26.26 percent.

(2) For corn, 46.22 percent.

(3) For grain sorghum, 5.11 percent.

(4) For barley, 2.16 percent.

(5) For oats, 0.15 percent.

(6) For upland cotton, 11.63 percent.

(7) For rice, 8.47 percent.

(c) Adjustment

The Secretary shall adjust the amounts allocated for each

contract commodity under subsection (b) of this section for a

particular fiscal year by -

(1) adding an amount equal to the sum of all repayments of

deficiency payments required under section 114(a)(2) of the

Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) for the

commodity;

(2) adding an amount equal to the sum of all refunds of

contract payments received during the preceding fiscal year under

section 7216 of this title for the commodity; and

(3) subtracting an amount equal to the amount, if any,

necessary during that fiscal year to satisfy payment requirements

for the commodity under sections 103B, 105B, or 107B of the

Agricultural Act of 1949 for the 1994 and 1995 crop years.

(d) Additional rice allocation

In addition to the adjustments required under subsection (c) of

this section, the amount allocated under subsection (b) of this

section for rice contract payments shall be increased by $8,500,000

for each of fiscal years 1997 through 2002.

(e) Exclusion of certain amounts from contract payments

Any amount added pursuant to paragraphs (1) and (2) of subsection

(c) of this section to the amount available under subsection (a) of

this section for a fiscal year and paid to owners and producers

under a contract shall not be treated as a contract payment for

purposes of section 7215 of this title or section 1308(1) (FOOTNOTE

1) of this title. However, the amount of a payment covered by this

subsection may not exceed $50,000 per person.

(FOOTNOTE 1) See References in text below.

(f) Effect of payment limitation

The amount available under subsection (a) of this section for a

fiscal year shall be reduced by an amount equal to the total amount

of contract payments for the fiscal year that owners and producers

forgo as a result of operation of the payment limitation under

section 1308(1) (FOOTNOTE 1) of this title.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 113, Apr. 4, 1996, 110 Stat. 900.)

-REFTEXT-

REFERENCES IN TEXT

Sections 103B, 105B, and 107B of the Agricultural Act of 1949,

referred to in subsec. (c)(3), were classified to sections 1444-2,

1444f, and 1445b-3a, respectively, of this title prior to repeal by

section 7301(b)(2)(A)-(D) of this title.

Section 1308(1) of this title, referred to in subsecs. (e), (f),

was repealed by Pub. L. 107-171, title I, Sec. 1603(a), May 13,

2002, 116 Stat. 213.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7214, 7334, 7917 of this

title.

-CITE-

7 USC Sec. 7214 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7214. Determination of contract payments under contracts

-STATUTE-

(a) Individual payment quantity of contract commodities

For each contract, the payment quantity of a contract commodity

for each fiscal year shall be equal to the product of -

(1) 85 percent of the contract acreage; and

(2) the farm program payment yield.

(b) Annual payment quantity of contract commodities

The payment quantity of each contract commodity covered by all

contracts for each fiscal year shall be equal to the sum of the

amounts calculated under subsection (a) of this section for each

individual contract.

(c) Annual payment rate

The payment rate for a contract commodity for each fiscal year

shall be equal to -

(1) the amount made available under section 7213 of this title

for the contract commodity for the fiscal year; divided by

(2) the amount determined under subsection (b) of this section

for the fiscal year.

(d) Annual payment amount

The amount to be paid under a contract in effect for each fiscal

year with respect to all contract commodities covered by the

contract shall be equal to the sum of the products of -

(1) the payment quantity determined under subsection (a) of

this section for each of the contract commodities covered by the

contract; and

(2) the corresponding payment rate for the contract commodity

in effect under subsection (c) of this section.

(e) Reduction in payment amount

The contract payment determined under subsection (d) of this

section for an owner or producer for a fiscal year shall be

immediately reduced by the amount of any repayment of deficiency

payments that is required under section 114(a)(2) of the

Agricultural Act of 1949 (7 U.S.C. 1445j(a)(2)) and is not repaid

as of the date the contract payment is determined. The Secretary

shall be required to collect the required repayment, or any claim

based on the required repayment, as soon as the contract payment is

determined.

(f) Assignment of contract payments

The provisions of section 590h(g) of title 16 (relating to

assignment of payments) shall apply to contract payments under this

section. The owner or producer making the assignment, or the

assignee, shall provide the Secretary with notice, in such manner

as the Secretary may require in the contract, of any assignment

made under this subsection.

(g) Sharing of contract payments

The Secretary shall provide for the sharing of contract payments

among the owners and producers subject to the contract on a fair

and equitable basis.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 114, Apr. 4, 1996, 110 Stat. 901.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7911, 7916 of this title.

-CITE-

7 USC Sec. 7215 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7215. Applicability of payment limitations

-STATUTE-

Sections 1308 through 1308-3 of this title shall be applicable to

contract payments made under this subchapter.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 115(a), Apr. 4, 1996, 110 Stat.

902.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7213 of this title.

-CITE-

7 USC Sec. 7216 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7216. Violations of contract

-STATUTE-

(a) Termination of contract for violation

Except as provided in subsection (b) of this section, if an owner

or producer subject to a contract violates a requirement of the

contract specified in section 7211(a) of this title, the Secretary

shall terminate the contract with respect to the owner or producer

on each farm in which the owner or producer has an interest. On

the termination, the owner or producer shall forfeit all rights to

receive future contract payments on each farm in which the owner or

producer has an interest and shall refund to the Secretary all

contract payments received by the owner or producer during the

period of the violation, together with interest on the contract

payments as determined by the Secretary.

(b) Refund or adjustment

If the Secretary determines that a violation does not warrant

termination of the contract under subsection (a) of this section,

the Secretary may require the owner or producer subject to the

contract -

(1) to refund to the Secretary that part of the contract

payments received by the owner or producer during the period of

the violation, together with interest on the contract payments as

determined by the Secretary; or

(2) to accept a reduction in the amount of future contract

payments that is proportionate to the severity of the violation,

as determined by the Secretary.

(c) Foreclosure

(1) Effect of foreclosure

An owner or producer subject to a contract may not be required

to make repayments to the Secretary of amounts received under the

contract if the contract acreage has been foreclosed on and the

Secretary determines that forgiving the repayments is appropriate

to provide fair and equitable treatment.

(2) Resumption of operation

This subsection shall not void the responsibilities of the

owner or producer under the contract if the owner or producer

continues or resumes operation, or control, of the contract

acreage. On the resumption of operation or control over the

contract acreage by the owner or producer, the provisions of the

contract in effect on the date of the foreclosure shall apply.

(d) Review

A determination of the Secretary under this section shall be

considered to be an adverse decision for purposes of the

availability of administrative review of the determination.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 116, Apr. 4, 1996, 110 Stat. 903.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7213 of this title.

-CITE-

7 USC Sec. 7217 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7217. Transfer or change of interest in lands subject to

contract

-STATUTE-

(a) Termination

Except as provided in subsection (c) of this section, a transfer

of (or change in) the interest of an owner or producer subject to a

contract in the contract acreage covered by the contract shall

result in the termination of the contract with respect to the

acreage, unless the transferee or owner of the acreage agrees to

assume all obligations under the contract. The termination shall

be effective on the date of the transfer or change.

(b) Modification

At the request of the transferee or owner, the Secretary may

modify the contract if the modifications are consistent with the

objectives of this subchapter, as determined by the Secretary.

(c) Exception

If an owner or producer who is entitled to a contract payment

dies, becomes incompetent, or is otherwise unable to receive the

contract payment, the Secretary shall make the payment, in

accordance with regulations prescribed by the Secretary.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 117, Apr. 4, 1996, 110 Stat. 904.)

-CITE-

7 USC Sec. 7218 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER II - PRODUCTION FLEXIBILITY CONTRACTS

-HEAD-

Sec. 7218. Planting flexibility

-STATUTE-

(a) Permitted crops

Subject to subsection (b) of this section, any commodity or crop

may be planted on contract acreage on a farm.

(b) Limitations and exceptions regarding fruits and vegetables

(1) Limitations

The planting of fruits and vegetables (other than lentils, mung

beans, and dry peas) shall be prohibited on contract acreage.

(2) Exceptions

Paragraph (1) shall not limit the planting of a fruit or

vegetable -

(A) in any region in which there is a history of

double-cropping of contract commodities with fruits or

vegetables, as determined by the Secretary, in which case the

double-cropping shall be permitted;

(B) on a farm that the Secretary determines has a history of

planting fruits or vegetables on contract acreage, except that

a contract payment shall be reduced by an acre for each acre

planted to the fruit or vegetable; or

(C) by a producer who the Secretary determines has an

established planting history of a specific fruit or vegetable,

except that -

(i) the quantity planted may not exceed the producer's

average annual planting history of the fruit or vegetable in

the 1991 through 1995 crop years (excluding any crop year in

which no plantings were made), as determined by the

Secretary; and

(ii) a contract payment shall be reduced by an acre for

each acre planted to the fruit or vegetable.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 118, Apr. 4, 1996, 110 Stat. 904.)

-MISC1-

CONTRACT PAYMENTS FOR WILD RICE ACREAGE

Pub. L. 106-78, title VII, Sec. 727, Oct. 22, 1999, 113 Stat.

1164, provided that: ''None of the funds appropriated or otherwise

available to the Department of Agriculture in fiscal year 2000 or

thereafter may be used to administer the provision of contract

payments to a producer under the Agricultural Market Transition Act

(7 U.S.C. 7201 et seq.) for contract acreage on which wild rice is

planted unless the contract payment is reduced by an acre for each

contract acre planted to wild rice.''

Similar provisions were contained in the following prior

appropriations acts:

Pub. L. 105-277, div. A, Sec. 101(a) (title VII, Sec. 727), Oct.

21, 1998, 112 Stat. 2681, 2681-28.

Pub. L. 105-86, title VII, Sec. 734, Nov. 18, 1997, 111 Stat.

2110.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7211 of this title.

-CITE-

7 USC SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE

LOANS AND LOAN DEFICIENCY PAYMENTS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

.

-HEAD-

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 7286, 7931, 8001 of

this title; title 31 section 3720B.

-CITE-

7 USC Sec. 7231 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7231. Availability of nonrecourse marketing assistance loans

-STATUTE-

(a) Nonrecourse loans available

For each of the 1996 through 2002 crops of each loan commodity,

the Secretary shall make available to producers on a farm

nonrecourse marketing assistance loans for loan commodities

produced on the farm. The loans shall be made under terms and

conditions that are prescribed by the Secretary and at the loan

rate established under section 7232 of this title for the loan

commodity.

(b) Eligible production

The following production shall be eligible for a marketing

assistance loan under subsection (a) of this section:

(1) In the case of a marketing assistance loan for a contract

commodity, any production by a producer on a farm containing

eligible cropland covered by a production flexibility contract.

(2) In the case of a marketing assistance loan for extra long

staple cotton and oilseeds, any production.

(c) Compliance with conservation and wetlands requirements

As a condition of the receipt of a marketing assistance loan

under subsection (a) of this section, the producer shall comply

with applicable conservation requirements under subtitle B of title

XII of the Food Security Act of 1985 (16 U.S.C. 3811 et seq.) and

applicable wetland protection requirements under subtitle C of

title XII of the Act (16 U.S.C. 3821 et seq.) during the term of

the loan.

(d) Additional outlays prohibited

The Secretary shall carry out this subchapter in such a manner

that there are no additional outlays under this subchapter as a

result of the reconstitution of a farm that occurs as a result of

the combination of another farm that does not contain eligible

cropland covered by a production flexibility contract.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 131, Apr. 4, 1996, 110 Stat. 905.)

-REFTEXT-

REFERENCES IN TEXT

The Food Security Act of 1985, referred to in subsec. (c), is

Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended.

Subtitles B and C of title XII of the Act are classified generally

to subchapters II (Sec. 3811 et seq.) and III (Sec. 3821 et seq.),

respectively, of chapter 58 of Title 16, Conservation. For complete

classification of this Act to the Code, see Short Title of 1985

Amendment note set out under section 1281 of this title and Tables.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7232, 7233, 7234, 7235,

7237, 7286, 7931, 7934 of this title.

-CITE-

7 USC Sec. 7232 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7232. Loan rates for marketing assistance loans

-STATUTE-

(a) Wheat

(1) Loan rate

Subject to paragraph (2), the loan rate for a marketing

assistance loan under section 7231 of this title for wheat shall

be -

(A) not less than 85 percent of the simple average price

received by producers of wheat, as determined by the Secretary,

during the marketing years for the immediately preceding 5

crops of wheat, excluding the year in which the average price

was the highest and the year in which the average price was the

lowest in the period; but

(B) not more than $2.58 per bushel.

(2) Stocks to use ratio adjustment

If the Secretary estimates for any marketing year that the

ratio of ending stocks of wheat to total use for the marketing

year will be -

(A) equal to or greater than 30 percent, the Secretary may

reduce the loan rate for wheat for the corresponding crop by an

amount not to exceed 10 percent in any year;

(B) less than 30 percent but not less than 15 percent, the

Secretary may reduce the loan rate for wheat for the

corresponding crop by an amount not to exceed 5 percent in any

year; or

(C) less than 15 percent, the Secretary may not reduce the

loan rate for wheat for the corresponding crop.

(b) Feed grains

(1) Loan rate for corn

Subject to paragraph (2), the loan rate for a marketing

assistance loan under section 7231 of this title for corn shall

be -

(A) not less than 85 percent of the simple average price

received by producers of corn, as determined by the Secretary,

during the marketing years for the immediately preceding 5

crops of corn, excluding the year in which the average price

was the highest and the year in which the average price was the

lowest in the period; but

(B) not more than $1.89 per bushel.

(2) Stocks to use ratio adjustment

If the Secretary estimates for any marketing year that the

ratio of ending stocks of corn to total use for the marketing

year will be -

(A) equal to or greater than 25 percent, the Secretary may

reduce the loan rate for corn for the corresponding crop by an

amount not to exceed 10 percent in any year;

(B) less than 25 percent but not less than 12.5 percent, the

Secretary may reduce the loan rate for corn for the

corresponding crop by an amount not to exceed 5 percent in any

year; or

(C) less than 12.5 percent, the Secretary may not reduce the

loan rate for corn for the corresponding crop.

(3) Other feed grains

The loan rate for a marketing assistance loan under section

7231 of this title for grain sorghum, barley, and oats,

respectively, shall be established at such level as the Secretary

determines is fair and reasonable in relation to the rate that

loans are made available for corn, taking into consideration the

feeding value of the commodity in relation to corn.

(c) Upland cotton

(1) Loan rate

Subject to paragraph (2), the loan rate for a marketing

assistance loan under section 7231 of this title for upland

cotton shall be established by the Secretary at such loan rate,

per pound, as will reflect for the base quality of upland cotton,

as determined by the Secretary, at average locations in the

United States a rate that is not less than the smaller of -

(A) 85 percent of the average price (weighted by market and

month) of the base quality of cotton as quoted in the

designated United States spot markets during 3 years of the

5-year period ending July 31 of the year preceding the year in

which the crop is planted, excluding the year in which the

average price was the highest and the year in which the average

price was the lowest in the period; or

(B) 90 percent of the average, for the 15-week period

beginning July 1 of the year preceding the year in which the

crop is planted, of the 5 lowest-priced growths of the growths

quoted for Middling 1 3/32-inch cotton C.I.F. Northern Europe

(adjusted downward by the average difference during the period

April 15 through October 15 of the year preceding the year in

which the crop is planted between the average Northern European

price quotation of such quality of cotton and the market

quotations in the designated United States spot markets for the

base quality of upland cotton), as determined by the Secretary.

(2) Limitations

The loan rate for a marketing assistance loan for upland cotton

shall not be less than $0.50 per pound or more than $0.5192 per

pound.

(d) Extra long staple cotton

The loan rate for a marketing assistance loan under section 7231

of this title for extra long staple cotton shall be -

(1) 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 of the year preceding the year in which the crop is planted,

excluding the year in which the average price was the highest and

the year in which the average price was the lowest in the period;

but

(2) not more than $0.7965 per pound.

(e) Rice

The loan rate for a marketing assistance loan under section 7231

of this title for rice shall be $6.50 per hundredweight.

(f) Oilseeds

(1) Soybeans

The loan rate for a marketing assistance loan under section

7231 of this title for soybeans shall be -

(A) not less than 85 percent of the simple average price

received by producers of soybeans, as determined by the

Secretary, during the marketing years for the immediately

preceding 5 crops of soybeans, excluding the year in which the

average price was the highest and the year in which the average

price was the lowest in the period; but

(B) not less than $4.92 or more than $5.26 per bushel.

(2) Sunflower seed, canola, rapeseed, safflower, mustard seed,

and flaxseed

The loan rate for a marketing assistance loan under section

7231 of this title for sunflower seed, canola, rapeseed,

safflower, mustard seed, and flaxseed, individually, shall be -

(A) not less than 85 percent of the simple average price

received by producers of sunflower seed, individually, as

determined by the Secretary, during the marketing years for the

immediately preceding 5 crops of sunflower seed, individually,

excluding the year in which the average price was the highest

and the year in which the average price was the lowest in the

period; but

(B) not less than $0.087 or more than $0.093 per pound.

(3) Other oilseeds

The loan rates for a marketing assistance loan under section

7231 of this title for other oilseeds shall be established at

such level as the Secretary determines is fair and reasonable in

relation to the loan rate available for soybeans, except in no

event shall the rate for the oilseeds (other than cottonseed) be

less than the rate established for soybeans on a per-pound basis

for the same crop.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 132, Apr. 4, 1996, 110 Stat. 905.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7231, 7234, 7235, 7236 of

this title.

-CITE-

7 USC Sec. 7233 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7233. Term of loans

-STATUTE-

(a) Term of loan

In the case of each loan commodity (other than upland cotton or

extra long staple cotton), a marketing assistance loan under

section 7231 of this title shall have a term of 9 months beginning

on the first day of the first month after the month in which the

loan is made.

(b) Special rule for cotton

A marketing assistance loan for upland cotton or extra long

staple cotton shall have a term of 10 months beginning on the first

day of the month in which the loan is made.

(c) Extensions prohibited

The Secretary may not extend the term of a marketing assistance

loan for any loan commodity.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 133, Apr. 4, 1996, 110 Stat. 907.)

-CITE-

7 USC Sec. 7234 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7234. Repayment of loans

-STATUTE-

(a) Repayment rates for wheat, feed grains, and oilseeds

The Secretary shall permit a producer to repay a marketing

assistance loan under section 7231 of this title for wheat, corn,

grain sorghum, barley, oats, and oilseeds at a rate that is the

lesser of -

(1) the loan rate established for the commodity under section

7232 of this title, plus interest (as determined by the

Secretary); or

(2) a rate that the Secretary determines will -

(A) minimize potential loan forfeitures;

(B) minimize the accumulation of stocks of the commodity by

the Federal Government;

(C) minimize the cost incurred by the Federal Government in

storing the commodity; and

(D) allow the commodity produced in the United States to be

marketed freely and competitively, both domestically and

internationally.

(b) Repayment rates for upland cotton and rice

The Secretary shall permit producers to repay a marketing

assistance loan under section 7231 of this title for upland cotton

and rice at a rate that is the lesser of -

(1) the loan rate established for the commodity under section

7232 of this title, plus interest (as determined by the

Secretary); or

(2) the prevailing world market price for the commodity

(adjusted to United States quality and location), as determined

by the Secretary.

(c) Repayment rates for extra long staple cotton

Repayment of a marketing assistance loan for extra long staple

cotton shall be at the loan rate established for the commodity

under section 7232 of this title, plus interest (as determined by

the Secretary).

(d) Prevailing world market price

For purposes of this section and section 7236 of this title, the

Secretary shall prescribe by regulation -

(1) a formula to determine the prevailing world market price

for each loan commodity, adjusted to United States quality and

location; and

(2) a mechanism by which the Secretary shall announce

periodically the prevailing world market price for each loan

commodity.

(e) Adjustment of prevailing world market price for upland cotton

(1) In general

During the period ending July 31, 2003, the prevailing world

market price for upland cotton (adjusted to United States quality

and location) established under subsection (d) of this section

shall be further adjusted if -

(A) the adjusted prevailing world market price is less than

115 percent of the loan rate for upland cotton established

under section 7232 of this title, as determined by the

Secretary; and

(B) the Friday through Thursday average price quotation for

the lowest-priced United States growth as quoted for Middling

(M) 1 3/32-inch cotton delivered C.I.F. Northern Europe is

greater than the Friday through Thursday average price of the 5

lowest-priced growths of upland cotton, as quoted for Middling

(M) 1 3/32-inch cotton, delivered C.I.F. Northern Europe

(referred to in this section as the ''Northern Europe price'').

(2) Further adjustment

Except as provided in paragraph (3), the adjusted prevailing

world market price for upland cotton shall be further adjusted on

the basis of some or all of the following data, as available:

(A) The United States share of world exports.

(B) The current level of cotton export sales and cotton

export shipments.

(C) Other data determined by the Secretary to be relevant in

establishing an accurate prevailing world market price for

upland cotton (adjusted to United States quality and location).

(3) Limitation on further adjustment

The adjustment under paragraph (2) may not exceed the

difference between -

(A) the Friday through Thursday average price for the

lowest-priced United States growth as quoted for Middling 1

3/32-inch cotton delivered C.I.F. Northern Europe; and

(B) the Northern Europe price.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 134, Apr. 4, 1996, 110 Stat. 908.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7235, 7934 of this title.

-CITE-

7 USC Sec. 7235 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7235. Loan deficiency payments

-STATUTE-

(a) Availability of loan deficiency payments

Except as provided in subsection (d) of this section, the

Secretary may make loan deficiency payments available to -

(1) producers who, although eligible to obtain a marketing

assistance loan under section 7231 of this title with respect to

a loan commodity, agree to forgo obtaining the loan for the

commodity in return for payments under this section; and

(2) effective only for the 2000 and 2001 crop years, producers

that, although not eligible to obtain such a marketing assistance

loan under section 7231 of this title, produce a contract

commodity.

(b) Computation

A loan deficiency payment under this section shall be computed by

multiplying -

(1) the loan payment rate determined under subsection (c) of

this section for the loan commodity; by

(2) the quantity of the loan commodity produced by the eligible

producers, excluding any quantity for which the producers obtain

a loan under section 7231 of this title.

(c) Loan payment rate

For purposes of this section, the loan payment rate shall be the

amount by which -

(1) the loan rate established under section 7232 of this title

for the loan commodity; exceeds

(2) the rate at which a loan for the commodity may be repaid

under section 7234 of this title.

(d) Exception for extra long staple cotton

This section shall not apply with respect to extra long staple

cotton.

(e) Transition

A payment to a producer eligible for a payment under subsection

(a)(2) of this section that harvested a commodity on or before the

date that is 30 days after the promulgation of the regulations

implementing subsection (a)(2) of this section shall be determined

as the date the producer lost beneficial interest in the commodity,

as determined by the Secretary.

(f) Beneficial interest

Subject to subsection (e) of this section, a producer shall be

eligible for a payment under this section only if the producer has

a beneficial interest in the commodity, as determined by the

Secretary.

(g) Effective date for payment rate determination

For the 2001 crop year, the Secretary shall determine the amount

of the loan deficiency payment to be made under this section to the

producers on a farm with respect to a quantity of a loan commodity

using the payment rate in effect under subsection (c) of this

section as of the earlier of the following:

(1) The date on which the producers marketed or otherwise lost

beneficial interest in the crop of the loan commodity, as

determined by the Secretary.

(2) The date the producers requested the payment.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 135, Apr. 4, 1996, 110 Stat. 909;

Pub. L. 106-224, title II, Sec. 206, June 20, 2000, 114 Stat. 405;

Pub. L. 107-171, title I, Sec. 1205(f)(2), May 13, 2002, 116 Stat.

159.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(2). Pub. L. 107-171, Sec. 1205(f)(2)(A),

substituted ''2000 and 2001 crop years'' for ''2000 crop year''.

Subsec. (g). Pub. L. 107-171, Sec. 1205(f)(2)(B), added subsec.

(g).

2000 - Subsec. (a). Pub. L. 106-224, Sec. 206(a), designated

existing provisions as par. (1) and added par. (2).

Subsec. (b)(2). Pub. L. 106-224, Sec. 206(b), substituted

''produced by the eligible producers, excluding any quantity for

which the producers obtain a loan under section 7231 of this

title.'' for ''that the producers on a farm are eligible to place

under loan but for which the producers forgo obtaining the loan in

return for payments under this section.''

Subsecs. (e), (f). Pub. L. 106-224, Sec. 206(c), added subsecs.

(e) and (f).

-CITE-

7 USC Sec. 7236 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7236. Special marketing loan provisions for upland cotton

-STATUTE-

(a) Cotton user marketing certificates

(1) Issuance

During the period ending July 31, 2003, the Secretary shall

issue marketing certificates or cash payments, at the option of

the recipient, to domestic users and exporters for documented

purchases by domestic users and sales for export by exporters

made in the week following a consecutive 4-week period in which -

(A) the Friday through Thursday average price quotation for

the lowest-priced United States growth, as quoted for Middling

(M) 1 3/32-inch cotton, delivered C.I.F. Northern Europe

exceeds the Northern Europe price by more than 1.25 cents per

pound; and

(B) the prevailing world market price for upland cotton

(adjusted to United States quality and location) does not

exceed 134 percent of the loan rate for upland cotton

established under section 7232 of this title.

(2) Value of certificates or payments

The value of the marketing certificates or cash payments shall

be based on the amount of the difference (reduced by 1.25 cents

per pound) in the prices during the 4th week of the consecutive

4-week period multiplied by the quantity of upland cotton

included in the documented sales.

(3) Administration of marketing certificates

(A) Redemption, marketing, or exchange

The Secretary shall establish procedures for redeeming

marketing certificates for cash or marketing or exchange of the

certificates for agricultural commodities owned by the

Commodity Credit Corporation or pledged to the Commodity Credit

Corporation as collateral for a loan in such manner, and at

such price levels, as the Secretary determines will best

effectuate the purposes of cotton user marketing certificates,

including enhancing the competitiveness and marketability of

United States cotton. Any price restrictions that would

otherwise apply to the disposition of agricultural commodities

by the Commodity Credit Corporation shall not apply to the

redemption of certificates under this subsection.

(B) Designation of commodities and products

To the extent practicable, the Secretary shall permit owners

of certificates to designate the commodities and products,

including storage sites, the owners would prefer to receive in

exchange for certificates.

(C) Transfers

Marketing certificates issued to domestic users and exporters

of upland cotton may be transferred to other persons in

accordance with regulations issued by the Secretary.

(b) Special import quota

(1) Establishment

(A) In general

The President shall carry out an import quota program during

the period ending July 31, 2003, as provided in this

subsection.

(B) Program requirements

Except as provided in subparagraph (C), whenever the

Secretary determines and announces that for any consecutive

4-week period, the Friday through Thursday average price

quotation for the lowest-priced United States growth, as quoted

for Middling (M) 1 3/32-inch cotton, delivered C.I.F. Northern

Europe, adjusted for the value of any certificate issued under

subsection (a) of this section, exceeds the Northern Europe

price by more than 1.25 cents per pound, there shall

immediately be in effect a special import quota.

(C) Tight domestic supply

During any month for which the Secretary estimates the

season-ending United States upland cotton stocks-to-use ratio,

as determined under subparagraph (D), to be below 16 percent,

the Secretary, in making the determination under subparagraph

(B), shall not adjust the Friday through Thursday average price

quotation for the lowest-priced United States growth, as quoted

for Middling (M) 1 3/32-inch cotton, delivered C.I.F. Northern

Europe, for the value of any certificates issued under

subsection (a) of this section.

(D) Season-ending United States stocks-to-use ratio

For the purposes of making estimates under subparagraph (C),

the Secretary shall, on a monthly basis, estimate and report

the season-ending United States upland cotton stocks-to-use

ratio, excluding projected raw cotton imports but including the

quantity of raw cotton that has been imported into the United

States during the marketing year.

(2) Quantity

The quota shall be equal to 1 week's consumption of upland

cotton by domestic mills at the seasonally adjusted average rate

of the most recent 3 months for which data are available.

(3) Application

The quota shall apply to upland cotton purchased not later than

90 days after the date of the Secretary's announcement under

paragraph (1) and entered into the United States not later than

180 days after the date.

(4) Overlap

A special quota period may be established that overlaps any

existing quota period if required by paragraph (1), except that a

special quota period may not be established under this subsection

if a quota period has been established under subsection (c) of

this section.

(5) Preferential tariff treatment

The quantity under a special import quota shall be considered

to be an in-quota quantity for purposes of -

(A) section 2703(d) of title 19;

(B) section 3203 of title 19;

(C) section 2463(d) of title 19; and

(D) General Note 3(a)(iv) to the Harmonized Tariff Schedule.

(6) ''Special import quota'' defined

In this subsection, the term ''special import quota'' means a

quantity of imports that is not subject to the over-quota tariff

rate of a tariff-rate quota.

(7) Limitation

The quantity of cotton entered into the United States during

any marketing year under the special import quota established

under this subsection may not exceed the equivalent of 5 week's

consumption of upland cotton by domestic mills at the seasonally

adjusted average rate of the 3 months immediately preceding the

first special import quota established in any marketing year.

(c) Limited global import quota for upland cotton

(1) In general

The President shall carry out an import quota program that

provides that whenever the Secretary determines and announces

that the average price of the base quality of upland cotton, as

determined by the Secretary, in the designated spot markets for a

month exceeded 130 percent of the average price of such quality

of cotton in the markets for the preceding 36 months,

notwithstanding any other provision of law, there shall

immediately be in effect a limited global import quota subject to

the following conditions:

(A) Quantity

The quantity of the quota shall be equal to 21 days of

domestic mill consumption of upland cotton at the seasonally

adjusted average rate of the most recent 3 months for which

data are available.

(B) Quantity if prior quota

If a quota has been established under this subsection during

the preceding 12 months, the quantity of the quota next

established under this subsection shall be the smaller of 21

days of domestic mill consumption calculated under subparagraph

(A) or the quantity required to increase the supply to 130

percent of the demand.

(C) Preferential tariff treatment

The quantity under a limited global import quota shall be

considered to be an in-quota quantity for purposes of -

(i) section 2703(d) of title 19;

(ii) section 3203 of title 19;

(iii) section 2463(d) of title 19; and

(iv) General Note 3(a)(iv) to the Harmonized Tariff

Schedule.

(D) Definitions

In this subsection:

(i) Supply

The term ''supply'' means, using the latest official data

of the Bureau of the Census, the Department of Agriculture,

and the Department of the Treasury -

(I) the carry-over of upland cotton at the beginning of

the marketing year (adjusted to 480-pound bales) in which

the quota is established;

(II) production of the current crop; and

(III) imports to the latest date available during the

marketing year.

(ii) Demand

The term ''demand'' means -

(I) the average seasonally adjusted annual rate of

domestic mill consumption during the most recent 3 months

for which data are available; and

(II) the larger of -

(aa) average exports of upland cotton during the

preceding 6 marketing years; or

(bb) cumulative exports of upland cotton plus

outstanding export sales for the marketing year in which

the quota is established.

(iii) Limited global import quota

The term ''limited global import quota'' means a quantity

of imports that is not subject to the over-quota tariff rate

of a tariff-rate quota.

(E) Quota entry period

When a quota is established under this subsection, cotton may

be entered under the quota during the 90-day period beginning

on the date the quota is established by the Secretary.

(2) No overlap

Notwithstanding paragraph (1), a quota period may not be

established that overlaps an existing quota period or a special

quota period established under subsection (b) of this section.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 136, Apr. 4, 1996, 110 Stat. 909;

Pub. L. 105-86, title VII, Sec. 731, Nov. 18, 1997, 111 Stat. 2108;

Pub. L. 105-277, div. A, Sec. 101(a) (title VII, Sec. 762), Oct.

21, 1998, 112 Stat. 2681, 2681-36; Pub. L. 106-78, title VIII, Sec.

806, Oct. 22, 1999, 113 Stat. 1179.)

-REFTEXT-

REFERENCES IN TEXT

The Harmonized Tariff Schedule, referred to in subsecs. (b)(5)(D)

and (c)(1)(C)(iv), is not set out in the Code. See Publication of

Harmonized Tariff Schedule note set out under section 1202 of Title

19, Customs Duties.

-MISC2-

AMENDMENTS

1999 - Subsec. (a)(1). Pub. L. 106-78, Sec. 806(a)(1),

substituted ''or cash payments, at the option of the recipient,''

for ''or cash payments'' in introductory provisions.

Subsec. (a)(1)(A), (2). Pub. L. 106-78, Sec. 806(a)(2),

substituted ''1.25 cents per pound'' for ''3 cents per pound''.

Subsec. (a)(3)(A). Pub. L. 106-78, Sec. 806(a)(3)(A), substituted

''owned by the Commodity Credit Corporation or pledged to the

Commodity Credit Corporation as collateral for a loan in such

manner, and at such price levels, as the Secretary determines will

best effectuate the purposes of cotton user marketing certificates,

including enhancing the competitiveness and marketability of United

States cotton'' for ''owned by the Commodity Credit Corporation in

such manner, and at such price levels, as the Secretary determines

will best effectuate the purposes of cotton user marketing

certificates'' in first sentence.

Subsec. (a)(3)(B). Pub. L. 106-78, Sec. 806(a)(3)(B), struck out

at end ''If any certificate is not presented for redemption,

marketing, or exchange within a reasonable number of days after the

issuance of the 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 the reasonable

number of days and ending with the date of the presentation of the

certificate to the Commodity Credit Corporation.''

Subsec. (a)(4). Pub. L. 106-78, Sec. 806(a)(4), struck out

heading and text of par. (4). Text read as follows: ''Total

expenditures under this subsection shall not exceed $701,000,000

during fiscal years 1996 through 2002.''

Subsec. (b)(1). Pub. L. 106-78, Sec. 806(b)(1), added par. (1)

and struck out heading and text of former par. (1). Text read as

follows: ''The President shall carry out an import quota program

that provides that, during the period ending July 31, 2003,

whenever the Secretary determines and announces that for any

consecutive 10-week period, the Friday through Thursday average

price quotation for the lowest-priced United States growth, as

quoted for Middling (M) 1 3/32-inch cotton, delivered C.I.F.

Northern Europe, adjusted for the value of any certificates issued

under subsection (a) of this section, exceeds the Northern Europe

price by more than 3 cents per pound, there shall immediately be in

effect a special import quota.''

Subsec. (b)(7). Pub. L. 106-78, Sec. 806(b)(2), added par. (7).

1998 - Subsecs. (a)(1)(A), (2), (b)(1). Pub. L. 105-277

substituted ''3 cents'' for ''1.25 cents''.

1997 - Subsec. (a)(1). Pub. L. 105-86, Sec. 731(1), in

introductory provisions substituted ''During'' for ''Subject to

paragraph (4), during'' and in subpar. (B) substituted ''134'' for

''130''.

Subsec. (a)(4), (5). Pub. L. 105-86, Sec. 731(2), (3)

redesignated par. (5) as (4) and struck out heading and text of

former par. (4). Text read as follows: ''The Secretary shall not

issue marketing certificates or cash payments under paragraph (1)

if, for the immediately preceding consecutive 10-week period, the

Friday through Thursday average price quotation for the lowest

priced United States growth, as quoted for Middling (M) 1 3/32-inch

cotton, delivered C.I.F. Northern Europe, adjusted for the value of

any certificate issued under this subsection, exceeds the Northern

Europe price by more than 1.25 cents per pound.''

EFFECTIVE DATE OF 1997 AMENDMENT

Section 731 of Pub. L. 105-86 provided that the amendment made by

that section is effective Oct. 1, 1998.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7234 of this title.

-CITE-

7 USC Sec. 7236a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7236a. Special competitive provisions for extra long staple

cotton

-STATUTE-

(a) Competitiveness program

Notwithstanding any other provision of law, during the period

beginning on October 1, 1999, and ending on July 31, 2003, the

Secretary shall carry out a program to maintain and expand the

domestic use of extra long staple cotton produced in the United

States, to increase exports of extra long staple cotton produced in

the United States, and to ensure that extra long staple cotton

produced in the United States remains competitive in world markets.

(b) Payments under program; trigger

Under the program, the Secretary shall make payments available

under this section whenever -

(1) for a consecutive 4-week period, the world market price for

the lowest priced competing growth of extra long staple cotton

(adjusted to United States quality and location and for other

factors affecting the competitiveness of such cotton), as

determined by the Secretary, is below the prevailing United

States price for a competing growth of extra long staple cotton;

and

(2) the lowest priced competing growth of extra long staple

cotton (adjusted to United States quality and location and for

other factors affecting the competitiveness of such cotton), as

determined by the Secretary, is less than 134 percent of the loan

rate for extra long staple cotton.

(c) Eligible recipients

The Secretary shall make payments available under this section to

domestic users of extra long staple cotton produced in the United

States and exporters of extra long staple cotton produced in the

United States who enter into an agreement with the Commodity Credit

Corporation to participate in the program under this section.

(d) Payment amount

Payments under this section shall be based on the amount of the

difference in the prices referred to in subsection (b)(1) of this

section during the fourth week of the consecutive 4-week period

multiplied by the amount of documented purchases by domestic users

and sales for export by exporters made in the week following such a

consecutive 4-week period.

(e) Form of payment

Payments under this section shall be made through the issuance of

cash or marketing certificates, at the option of eligible

recipients of the payments.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 136A, as added Pub. L. 106-113,

div. B, Sec. 1000(a)(5) (title I, Sec. 104(c)), Nov. 29, 1999, 113

Stat. 1536, 1501A-291.)

-CITE-

7 USC Sec. 7237 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER III - NONRECOURSE MARKETING ASSISTANCE LOANS AND LOAN

DEFICIENCY PAYMENTS

-HEAD-

Sec. 7237. Availability of recourse loans for high moisture feed

grains and seed cotton and other fibers

-STATUTE-

(a) High moisture feed grains

(1) Recourse loans available

For each of the 1996 through 2002 crops of corn and grain

sorghum, the Secretary shall make available recourse loans, as

determined by the Secretary, to producers on a farm containing

eligible cropland covered by a production flexibility contract

who -

(A) normally harvest all or a portion of their crop of corn

or grain sorghum in a high moisture state;

(B) present -

(i) certified scale tickets from an inspected, certified

commercial scale, including a licensed warehouse, feedlot,

feed mill, distillery, or other similar entity approved by

the Secretary, pursuant to regulations issued by the

Secretary; or

(ii) field or other physical measurements of the standing

or stored crop in regions of the United States, as determined

by the Secretary, that do not have certified commercial

scales from which certified scale tickets may be obtained

within reasonable proximity of harvest operation;

(C) certify that they were the owners of the feed grain at

the time of delivery to, and that the quantity to be placed

under loan under this subsection was in fact harvested on the

farm and delivered to, a feedlot, feed mill, or commercial or

on-farm high-moisture storage facility, or to a facility

maintained by the users of corn and grain sorghum in a high

moisture state; and

(D) comply with deadlines established by the Secretary for

harvesting the corn or grain sorghum and submit applications

for loans under this subsection within deadlines established by

the Secretary.

(2) Eligibility of acquired feed grains

A loan under this subsection shall be made on a quantity of

corn or grain sorghum of the same crop acquired by the producer

equivalent to a quantity determined by multiplying -

(A) the acreage of the corn or grain sorghum in a high

moisture state harvested on the producer's farm; by

(B) 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 the corn or grain sorghum was

obtained.

(3) ''High moisture state'' defined

In this subsection, the term ''high moisture state'' means corn

or grain sorghum having a moisture content in excess of Commodity

Credit Corporation standards for marketing assistance loans made

by the Secretary under section 7231 of this title.

(b) Recourse loans available for seed cotton

(1) Upland cotton

For each of the 1996 through 2002 crops of upland cotton, the

Secretary shall make available recourse seed cotton loans, as

determined by the Secretary, to producers on a farm containing

eligible cropland covered by a production flexibility contract.

(2) Extra long staple cotton

For each of the 1996 through 2002 crops of extra long staple

cotton, the Secretary shall make available recourse seed cotton

loans, as determined by the Secretary, on any production.

(c) Recourse loans available for mohair

(1) Recourse loans available

Notwithstanding any other provision of law, during fiscal year

1999, the Secretary shall make available recourse loans, as

determined by the Secretary, to producers of mohair produced

during or before that fiscal year.

(2) Loan rate

The loan rate for a loan under paragraph (1) shall be equal to

$2.00 per pound.

(3) Term of loan

A loan under paragraph (1) shall have a term of 1 year

beginning on the first day of the first month after the month in

which the loan is made.

(4) Waiver of interest

Notwithstanding subsection (d) of this section, the Secretary

shall not charge interest on a loan made under paragraph (1).

(d) Repayment rates

Repayment of a recourse loan made under this section shall be at

the loan rate established for the commodity by the Secretary, plus

interest (as determined by the Secretary).

-SOURCE-

(Pub. L. 104-127, title I, Sec. 137, Apr. 4, 1996, 110 Stat. 912;

Pub. L. 105-277, div. A, Sec. 101(a) (title XI, Sec. 1126), Oct.

21, 1998, 112 Stat. 2681, 2681-46.)

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-277, Sec. 101(a) (title XI, Sec. 1126(1)),

inserted ''and other fibers'' after ''seed cotton'' in section

catchline.

Subsecs. (c), (d). Pub. L. 105-277, Sec. 101(a) (title XI, Sec.

1126(2), (3)), added subsec. (c) and redesignated former subsec.

(c) as (d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7939 of this title.

-CITE-

7 USC SUBCHAPTER IV - OTHER COMMODITIES 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

.

-HEAD-

SUBCHAPTER IV - OTHER COMMODITIES

-CITE-

7 USC Part A - Dairy 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

.

-HEAD-

Part A - Dairy

-CITE-

7 USC Sec. 7251 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7251. Milk price support program

-STATUTE-

(a) Support activities

The Secretary of Agriculture shall support the price of milk

produced in the 48 contiguous States through the purchase of

cheese, butter, and nonfat dry milk produced from the milk.

(b) Rate

The price of milk shall be supported at the following rates per

hundredweight for milk containing 3.67 percent butterfat:

(1) During calendar year 1996, $10.35.

(2) During calendar year 1997, $10.20.

(3) During calendar year 1998, $10.05.

(4) During each of calendar years 1999 through 2001, $9.90.

(5) During the period beginning on January 1, 2002, and ending

on May 31, 2002, $9.90.

(c) Purchase prices

The support purchase prices under this section for each of the

products of milk (butter, cheese, and nonfat dry milk) announced by

the Secretary shall be the same for all of that product sold by

persons offering to sell the product to the Secretary. The purchase

prices shall be sufficient to enable plants of average efficiency

to pay producers, on average, a price that is not less than the

rate of price support for milk in effect under subsection (b) of

this section.

(d) Special rule for butter and nonfat dry milk purchase prices

(1) Allocation of purchase prices

The Secretary may allocate the rate of price support between

the purchase prices for nonfat dry milk and butter in a manner

that will result in the lowest level of expenditures by the

Commodity Credit Corporation or achieve such other objectives as

the Secretary considers appropriate. Not later than 10 days

after making or changing an allocation, the Secretary shall

notify the Committee on Agriculture of the House of

Representatives and the Committee on Agriculture, Nutrition, and

Forestry of the Senate of the allocation. Section 553 of title 5

shall not apply with respect to the implementation of this

section.

(2) Timing of purchase price adjustments

The Secretary may make any such adjustments in the purchase

prices for nonfat dry milk and butter the Secretary considers to

be necessary not more than twice in each calendar year.

(e) Refunds of 1995 and 1996 assessments

(1) Refund required

The Secretary shall provide for a refund of the entire

reduction required under section 204(h)(2) of the Agricultural

Act of 1949 (7 U.S.C. 1446e(h)(2)), as in effect on the day

before the amendment made by subsection (g) of this section, in

the price of milk received by a producer during calendar year

1995 or 1996, if the producer provides evidence that the producer

did not increase marketings in calendar year 1995 or 1996 when

compared to calendar year 1994 or 1995, respectively.

(2) Exception

This subsection shall not apply with respect to a producer for

a particular calendar year if the producer has already received a

refund under section 204(h) of the Agricultural Act of 1949 for

the same fiscal year before the effective date of this section.

(3) Treatment of refund

A refund under this subsection shall not be considered as any

type of price support or payment for purposes of sections 3811

and 3821 of title 16.

(f) Commodity Credit Corporation

The Secretary shall carry out the program authorized by this

section through the Commodity Credit Corporation.

(g) Omitted

(h) Period of effectiveness

This section (other than subsection (g) of this section) shall be

effective only during the period beginning on the first day of the

first month beginning after April 4, 1996, and ending on May 31,

2002. The program authorized by this section shall terminate on May

31, 2002, and shall be considered to have expired notwithstanding

section 907 of title 2.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 141, Apr. 4, 1996, 110 Stat. 914;

Pub. L. 106-78, title VIII, Sec. 807(a), Oct. 22, 1999, 113 Stat.

1181; Pub. L. 106-387, Sec. 1(a) (title VII, Sec. 742(a)), Oct. 28,

2000, 114 Stat. 1549, 1549A-35; Pub. L. 107-76, title VII, Sec.

772(a), Nov. 28, 2001, 115 Stat. 745.)

-REFTEXT-

REFERENCES IN TEXT

Section 204 of the Agricultural Act of 1949, referred to in

subsec. (e)(1), (2), was classified to section 1446e of this title

prior to repeal by subsec. (g) of this section. See Codification

note below.

-COD-

CODIFICATION

Section is comprised of section 141 of Pub. L. 104-127. Subsec.

(g) of section 141 of Pub. L. 104-127 repealed section 1446e of

this title and enacted provisions set out as a note under section

1446e of this title.

-MISC3-

AMENDMENTS

2001 - Subsec. (b)(5). Pub. L. 107-76, Sec. 772(a)(1), added par.

(5).

Subsec. (h). Pub. L. 107-76, Sec. 772(a)(2), substituted ''May

31, 2002'' for ''December 31, 2001'' in two places.

2000 - Subsec. (b)(4). Pub. L. 106-387, Sec. 1(a) (title VII,

Sec. 742(a)(1)), substituted ''through 2001'' for ''and 2000''.

Subsec. (h). Pub. L. 106-387, Sec. 1(a) (title VII, Sec.

742(a)(2)), substituted ''2001'' for ''2000'' in two places.

1999 - Subsec. (b)(4). Pub. L. 106-78, Sec. 807(a)(1),

substituted ''each of calendar years 1999 and 2000'' for ''calendar

year 1999''.

Subsec. (h). Pub. L. 106-78, Sec. 807(a)(2), substituted ''2000''

for ''1999'' in two places.

-CITE-

7 USC Sec. 7252 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7252. Repealed. Pub. L. 107-76, title VII, Sec. 772(b), Nov.

28, 2001, 115 Stat. 745

-MISC1-

Section, Pub. L. 104-127, title I, Sec. 142, Apr. 4, 1996, 110

Stat. 915; Pub. L. 106-78, title VIII, Sec. 807(b), Oct. 22, 1999,

113 Stat. 1181; Pub. L. 106-387, Sec. 1(a) (title VII, Sec.

742(b)), Oct. 28, 2000, 114 Stat. 1549, 1549A-35, related to

recourse loan program for commercial processors of dairy products.

-CITE-

7 USC Sec. 7253 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7253. Consolidation and reform of Federal milk marketing

orders

-STATUTE-

(a) Amendment of orders

(1) Required consolidation

The Secretary shall amend Federal milk marketing orders issued

under section 608c of this title to limit the number of Federal

milk marketing orders to not less than 10 and not more than 14

orders.

(2) Inclusion of California as separate order

Upon the petition and approval of California dairy producers in

the manner provided in section 608c of this title, the Secretary

shall designate the State of California as a separate Federal

milk marketing order. The order covering California shall have

the right to reblend and distribute order receipts to recognize

quota value.

(3) Related issues addressed in consolidation

Among the issues the Secretary is authorized to implement as

part of the consolidation of Federal milk marketing orders are

the following:

(A) The use of utilization rates and multiple basing points

for the pricing of fluid milk.

(B) The use of uniform multiple component pricing when

developing 1 or more basic formula prices for manufacturing

milk.

(4) Effect of existing law

In implementing the consolidation of Federal milk marketing

orders and related reforms under this subsection, the Secretary

may not consider, or base any decision on, the table contained in

section 608c(5)(A) of this title.

(b) Expedited process

(1) Use of informal rulemaking

To implement the consolidation of Federal milk marketing orders

and related reforms under subsection (a) of this section, the

Secretary shall use the notice and comment procedures provided in

section 553 of title 5.

(2) Time limitations

(A) Proposed amendments

The Secretary shall announce the proposed amendments to be

made under subsection (a) of this section not later than 2

years after April 4, 1996.

(B) Final amendments

The Secretary shall implement the amendments not later than 3

years after April 4, 1996.

(3) Effect of court order

The actions authorized by this subsection are intended to

ensure the timely publication and implementation of new and

amended Federal milk marketing orders. In the event that the

Secretary is enjoined or otherwise restrained by a court order

from publishing or implementing the consolidation and related

reforms under subsection (a) of this section, the length of time

for which that injunction or other restraining order is effective

shall be added to the time limitations specified in paragraph (2)

thereby extending those time limitations by a period of time

equal to the period of time for which the injunction or other

restraining order is effective.

(c) Failure to timely consolidate orders

If the Secretary fails to implement the consolidation required

under subsection (a)(1) of this section within the time period

required under subsection (b)(2)(B) of this section (plus any

additional period provided under subsection (b)(3) of this

section), the Secretary may not assess or collect assessments from

milk producers or handlers under such section 608c of this title

for marketing order administration and services provided under such

section after the end of that period until the consolidation is

completed. The Secretary may not reduce the level of services

provided under the section on account of the prohibition against

assessments, but shall rather cover the cost of marketing order

administration and services through funds available for the

Agricultural Marketing Service of the Department.

(d) Report regarding further reforms

(1) Report required

Not later than April 1, 1997, the Secretary shall submit to

Congress a report -

(A) reviewing the Federal milk marketing order system

established pursuant to section 608c of this title in light of

the reforms required by subsection (a) of this section;

(B) describing the efforts underway and the progress made in

implementing the reforms required by subsection (a) of this

section; and

(C) containing such recommendations as the Secretary

considers appropriate for further improvements and reforms to

the Federal milk marketing order system.

(2) Effect of other laws

Any limitation imposed by Act of Congress on the conduct or

completion of reports to Congress shall not apply to the report

required under this section, unless the limitation specifically

refers to this section.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 143, Apr. 4, 1996, 110 Stat. 915.)

-MISC1-

USE OF OPTION 1A AS PRICE STRUCTURE FOR CLASS I MILK UNDER

CONSOLIDATED FEDERAL MILK MARKETING ORDERS

Pub. L. 106-113, div. B, Sec. 1000(a)(8) (Sec. 1), Nov. 29,

1999, 113 Stat. 1536, 1501A-517, provided that:

''(a) Final Rule Defined. - In this section, the term 'final

rule' means the final rule for the consolidation and reform of

Federal milk marketing orders that was published in the Federal

Register on September 1, 1999 (64 Fed. Reg. 47897-48021), to comply

with section 143 of the Federal Agriculture Improvement and Reform

Act of 1996 (7 U.S.C. 7253).

''(b) Implementation of Final Rule for Milk Order Reform. -

Subject to subsection (c), the final rule shall take effect, and be

implemented by the Secretary of Agriculture, on the first day of

the first month beginning at least 30 days after the date of the

enactment of this Act (Nov. 29, 1999).

''(c) Use of Option 1A for Pricing Class I Milk. - In lieu of the

Class I price differentials specified in the final rule, the

Secretary of Agriculture shall price fluid or Class I milk under

the Federal milk marketing orders using the Class I price

differentials identified as Option 1A 'Location-Specific

Differentials Analysis' in the proposed rule published in the

Federal Register on January 30, 1998 (63 Fed. Reg. 4802, 4809),

except that the Secretary shall include the corrections and

modifications to such Class I differentials made by the Secretary

through April 2, 1999.

''(d) Effect of Prior Announcement of Minimum Prices. - If the

Secretary of Agriculture announces minimum prices for milk under

Federal milk marketing orders pursuant to section 1000.50 of title

7, Code of Federal Regulations, before the effective date specified

in subsection (b), the minimum prices so announced before that date

shall be the only applicable minimum prices under Federal milk

marketing orders for the month or months for which the prices have

been announced.

''(e) Implementation of Requirement. - The implementation of the

final rule, as modified by subsection (c), shall not be subject to

any of the following:

''(1) The notice and hearing requirements of section 8c(3) of

the Agricultural Adjustment Act (7 U.S.C. 608c(3)), reenacted

with amendments by the Agricultural Marketing Agreement Act of

1937, or the notice and comment provisions of section 553 of

title 5, United States Code.

''(2) A referendum conducted by the Secretary of Agriculture

pursuant to subsections (17) or (19) of section 8c of the

Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with

amendments by the Agricultural Marketing Agreement Act of 1937.

''(3) The Statement of Policy of the Secretary of Agriculture

effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices

of proposed rulemaking and public participation in rulemaking.

''(4) Chapter 35 of title 44, United States Code (commonly

known as the Paperwork Reduction Act).

''(5) Any decision, restraining order, or injunction issued by

a United States court before the date of the enactment of this

Act (Nov. 29, 1999).''

FURTHER RULEMAKING TO DEVELOP PRICING METHODS FOR CLASS III AND

CLASS IV MILK UNDER MARKETING ORDERS

Pub. L. 106-113, div. B, Sec. 1000(a)(8) (Sec. 2), Nov. 29,

1999, 113 Stat. 1536, 1501A-518, provided that:

''(a) Congressional Finding. - The Class III and Class IV milk

pricing formulas included in the final decision for the

consolidation and reform of Federal milk marketing orders, as

published in the Federal Register on April 2, 1999 (64 Fed. Reg.

16025), do not adequately reflect public comment on the original

proposed rule published in the Federal Register on January 30, 1998

(63 Fed. Reg. 4802), and are sufficiently different from the

proposed rule and any comments submitted with regard to the

proposed rule that further emergency rulemaking is merited.

''(b) Rulemaking Required. - The Secretary of Agriculture shall

conduct rulemaking, on the record after an opportunity for an

agency hearing, to reconsider the Class III and Class IV milk

pricing formulas included in the final rule for the consolidation

and reform of Federal milk marketing orders that was published in

the Federal Register on September 1, 1999 (64 Fed. Reg.

47897-48021).

''(c) Time Period for Rulemaking. - On December 1, 2000, the

Secretary of Agriculture shall publish in the Federal Register a

final decision on the Class III and Class IV milk pricing

formulas. The resulting formulas shall take effect, and be

implemented by the Secretary, on January 1, 2001.

''(d) Effect of Court Order. - The actions authorized by

subsections (b) and (c) are intended to ensure the timely

publication and implementation of new pricing formulas for Class

III and Class IV milk. In the event that the Secretary of

Agriculture is enjoined or otherwise restrained by a court order

from implementing a final decision within the time period specified

in subsection (c), the length of time for which that injunction or

other restraining order is effective shall be added to the time

limitations specified in subsection (c) thereby extending those

time limitations by a period of time equal to the period of time

for which the injunction or other restraining order is effective.

''(e) Failure To Timely Complete Rulemaking. - If the Secretary

of Agriculture fails to implement new Class III and Class IV milk

pricing formulas within the time period required under subsection

(c) (plus any additional period provided under subsection (d)), the

Secretary may not assess or collect assessments from milk producers

or handlers under section 8c of the Agricultural Adjustment Act (7

U.S.C. 608c), reenacted with amendments by the Agricultural

Marketing Agreement Act of 1937, for marketing order administration

and services provided under such section after the end of that

period until the pricing formulas are implemented. The Secretary

may not reduce the level of services provided under that section on

account of the prohibition against assessments, but shall rather

cover the cost of marketing order administration and services

through funds available for the Agricultural Marketing Service of

the Department.

''(f) Implementation of Requirement. - The implementation of the

final decision on new Class III and Class IV milk pricing formulas

shall not be subject to congressional review under chapter 8 of

title 5, United States Code.''

-CITE-

7 USC Sec. 7254 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7254. Effect on fluid milk standards in State of California

-STATUTE-

Nothing in this Act or any other provision of law shall be

construed to preempt, prohibit, or otherwise limit the authority of

the State of California, directly or indirectly, to establish or

continue to effect any law, regulation, or requirement regarding -

(1) the percentage of milk solids or solids not fat in fluid

milk products sold at retail or marketed in the State of

California; or

(2) the labeling of such fluid milk products with regard to

milk solids or solids not fat.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 144, Apr. 4, 1996, 110 Stat. 917.)

-CITE-

7 USC Sec. 7255 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7255. Milk manufacturing marketing adjustment

-STATUTE-

(a) Maximum allowances established

No State shall provide for a manufacturing allowance for the

processing of milk in excess of -

(1) $1.65 per hundredweight of milk for milk manufactured into

butter and nonfat dry milk; and

(2) $1.80 per hundredweight of milk for milk manufactured into

cheese.

(b) ''Manufacturing allowance'' defined

In this section, the term ''manufacturing allowance'' means -

(1) the amount by which the product price value of butter and

nonfat dry milk manufactured from a hundred pounds of milk

containing 3.5 pounds of butterfat and 8.7 pounds of milk solids

not fat resulting from a State's yield and product price formulas

exceeds the class price for the milk used to produce those

products; or

(2) the amount by which the product price value of cheese

manufactured from a hundred pounds of milk containing 3.5 pounds

of butterfat and 8.7 pounds of milk solids not fat resulting from

a State's yield and product price formulas exceeds the class

price for the milk used to produce cheese.

(c) Effect of violation

If the Secretary determines following a hearing that a State has

in effect a manufacturing allowance that exceeds the manufacturing

allowance authorized in subsection (a) of this section, the

Secretary shall suspend purchases of cheddar cheese, butter, and

nonfat dry milk produced in that State until such time as the State

complies with such subsection.

(d) Effective date; implementation

This section (other than subsection (e) (FOOTNOTE 1) of this

section) shall be effective during the period beginning on the

first day of the first month beginning after April 4, 1996, and

ending on December 31, 1999. During that period, the Secretary may

exercise the authority provided to the Secretary under this section

without regard to the issuance of regulations intended to carry out

this section.

(FOOTNOTE 1) See Codification note below.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 145, Apr. 4, 1996, 110 Stat. 917.)

-COD-

CODIFICATION

Section is comprised of section 145 of Pub. L. 104-127. Subsec.

(e) of section 145 of Pub. L. 104-127 repealed section 1446e-1 of

this title and enacted provisions set out as a note under section

1446e-1 of this title.

-CITE-

7 USC Sec. 7256 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7256. Northeast Interstate Dairy Compact

-STATUTE-

Congress hereby consents to the Northeast Interstate Dairy

Compact entered into among the States of Connecticut, Maine,

Massachusetts, New Hampshire, Rhode Island and Vermont as specified

in section 1(b) Senate Joint Resolution 28 of the 104th Congress,

as placed on the calendar of the Senate, subject to the following

conditions:

(1) Finding of compelling public interest

Based upon a finding by the Secretary of a compelling public

interest in the Compact region, the Secretary may grant the

States that have ratified the Northeast Interstate Dairy Compact,

as of April 4, 1996, the authority to implement the Northeast

Interstate Dairy Compact.

(2) Limitation on manufacturing price

The Northeast Interstate Dairy Compact Commission shall not

regulate Class II, Class III, or Class III-A milk used for

manufacturing purposes or any other milk, other than Class I

(fluid) milk, as defined by a Federal milk marketing order issued

under section 608c of this title.

(3) Duration

Consent for the Northeast Interstate Dairy Compact shall

terminate on September 30, 2001.

(4) Additional States

Delaware, New Jersey, New York, Pennsylvania, Maryland, and

Virginia are the only additional States that may join the

Northeast Interstate Dairy Compact, individually or otherwise, if

upon entry the State is contiguous to a participating State and

if Congress consents to the entry of the State into the Compact

after April 4, 1996.

(5) Compensation of Commodity Credit Corporation

Before the end of each fiscal year that a Compact price

regulation is in effect, the Northeast Interstate Dairy Compact

Commission shall compensate the Commodity Credit Corporation for

the cost of any purchases of milk and milk products by the

Corporation that result from the projected rate of increase in

milk production for the fiscal year within the Compact region in

excess of the projected national average rate of the increase in

milk production, as determined by the Secretary.

(6) Milk marketing order Administrator

At the request of the Northeast Interstate Dairy Compact

Commission, the Administrator of the applicable Federal milk

marketing order issued under section 608c(5) (FOOTNOTE 1) of this

title shall provide technical assistance to the Compact

Commission and be compensated for that assistance.

(FOOTNOTE 1) See References in Text note below.

(7) Further conditions

The Northeast Interstate Dairy Compact Commission shall not

prohibit or in any way limit the marketing in the Compact region

of any milk or milk product produced in any other production area

in the United States. The Compact Commission shall respect and

abide by the ongoing procedures between Federal milk marketing

orders with respect to the sharing of proceeds from sales within

the Compact region of bulk milk, packaged milk, or producer milk

originating from outside of the Compact region. The Compact

Commission shall not use compensatory payments under section

10(6) of the Compact as a barrier to the entry of milk into the

Compact region or for any other purpose. Establishment of a

Compact over-order price, in itself, shall not be considered a

compensatory payment or a limitation or prohibition on the

marketing of milk.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 147, Apr. 4, 1996, 110 Stat. 919;

Pub. L. 106-113, div. B, Sec. 1000(a)(8) (Sec. 4), Nov. 29, 1999,

113 Stat. 1536, 1501A-520.)

-REFTEXT-

REFERENCES IN TEXT

Senate Joint Resolution 28 of the 104th Congress, referred to in

text, which would have granted consent of the Congress to the

Northeast Interstate Dairy Compact, was not enacted into law during

the 104th Congress.

Section 608c(5) of this title, referred to in par. (6), was in

the original ''section 8(c)5 of the Agricultural Adjustment Act (7

U.S.C. 608c), reenacted with amendments by the Agricultural

Marketing Agreement Act of 1937,'' which was translated as meaning

section 8c(5) of the Agricultural Adjustment Act, to reflect the

probable intent of Congress.

-MISC2-

AMENDMENTS

1999 - Par. (3). Pub. L. 106-113 substituted ''on September 30,

2001.'' for ''concurrent with the Secretary's implementation of the

dairy pricing and Federal milk marketing order consolidation and

reforms under section 7253 of this title.''

-CITE-

7 USC Sec. 7257 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7257. Authority to assist in establishment and maintenance of

one or more export trading companies

-STATUTE-

The Secretary of Agriculture shall, consistent with the

obligations of the United States as a member of the World Trade

Organization, provide such advice and assistance to the United

States dairy industry as may be necessary to enable that industry

to establish and maintain one or more export trading companies

under the Export Trading Company Act of 1982 (15 U.S.C. 4001 et

seq.) for the purpose of facilitating the international market

development for and exportation of dairy products produced in the

United States.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 149, Apr. 4, 1996, 110 Stat. 921.)

-REFTEXT-

REFERENCES IN TEXT

The Export Trading Company Act of 1982, referred to in text, is

title I of Pub. L. 97-290, Oct. 8, 1982, 96 Stat. 1233, as amended,

which is classified generally to subchapter I (Sec. 4001 et seq.)

of chapter 66 of Title 15, Commerce and Trade. For complete

classification of this Act to the Code, see Short Title note set

out under section 4001 of Title 15 and Tables.

-CITE-

7 USC Sec. 7258 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7258. Standby authority to indicate entity best suited to

provide international market development and export services

-STATUTE-

(a) Indication of entity best suited to assist international market

development for and export of United States dairy products

The Secretary of Agriculture shall indicate which entity or

entities autonomous of the Government of the United States, which

seeks such a designation, is best suited to facilitate the

international market development for and exportation of United

States dairy products, if the Secretary determines that -

(1) the United States dairy industry has not established an

export trading company under the Export Trading Company Act of

1982 (15 U.S.C. 4001 et seq.) for the purpose of facilitating the

international market development for an exportation of dairy

products produced in the United States on or before June 30,

1997; or

(2) the quantity of exports of United States dairy products

during the 12-month period preceding July 1, 1998 does not exceed

the quantity of exports of United States dairy products during

the 12-month period preceding July 1, 1997 by 1.5 billion pounds

(milk equivalent, total solids basis).

(b) Funding of export activities

The Secretary shall assist the entity or entities identified

under subsection (a) of this section in identifying sources of

funding for the activities specified in subsection (a) of this

section from within the dairy industry and elsewhere.

(c) Application of section

This section shall apply only during the period beginning on July

1, 1997 and ending on September 30, 2000.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 150, Apr. 4, 1996, 110 Stat. 921.)

-REFTEXT-

REFERENCES IN TEXT

The Export Trading Company Act of 1982, referred to in subsec.

(a)(1), is title I of Pub. L. 97-290, Oct. 8, 1982, 96 Stat. 1233,

as amended, which is classified generally to subchapter I (Sec.

4001 et seq.) of chapter 66 of Title 15, Commerce and Trade. For

complete classification of this Act to the Code, see Short Title

note set out under section 4001 of Title 15 and Tables.

-CITE-

7 USC Sec. 7259 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part A - Dairy

-HEAD-

Sec. 7259. Study and report regarding potential impact of Uruguay

Round on prices, income, and government purchases

-STATUTE-

(a) Study

The Secretary of Agriculture shall conduct a study, on a variety

by variety of cheese basis, to determine the potential impact on

milk prices in the United States, dairy producer income, and

Federal dairy program costs, of the allocation of additional cheese

granted access to the United States as a result of the obligations

of the United States as a member of the World Trade Organization.

(b) Report

Not later than June 30, 1997, the Secretary shall report to the

Committee on Agriculture, Nutrition, and Forestry of the Senate and

the Committee on Agriculture of the House of Representatives the

results of the study conducted under this section.

(c) Rule of construction

Any limitation imposed by Act of Congress on the conduct or

completion of studies or reports to Congress shall not apply to the

study and report required under this section, unless the limitation

specifically refers to this section.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 151, Apr. 4, 1996, 110 Stat. 922.)

-CITE-

7 USC Part B - Sugar 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part B - Sugar

.

-HEAD-

Part B - Sugar

-CITE-

7 USC Sec. 7271 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part B - Sugar

-HEAD-

Sec. 7271. Repealed. Pub. L. 107-171, title I, Sec. 1310(a)(1), May

13, 2002, 116 Stat. 182

-MISC1-

Section, Pub. L. 104-127, title I, Sec. 155, Apr. 4, 1996, 110

Stat. 922, related to Secretary making nonrecourse loans available

to producers of quota peanuts.

-CITE-

7 USC Sec. 7272 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER IV - OTHER COMMODITIES

Part B - Sugar

-HEAD-

Sec. 7272. Sugar program

-STATUTE-

(a) Sugarcane

The Secretary shall make loans available to processors of

domestically grown sugarcane at a rate equal to 18 cents per pound

for raw cane sugar.

(b) Sugar beets

The Secretary shall make loans available to processors of

domestically grown sugar beets at a rate equal to 22.9 cents per

pound for refined beet sugar.

(c) Loan rate adjustments

(1) In general

The Secretary may reduce the loan rate specified in subsection

(a) of this section for domestically grown sugarcane and

subsection (b) of this section for domestically grown sugar beets

if the Secretary determines that negotiated reductions in export

subsidies and domestic subsidies provided for sugar of other

major sugar growing, producing, and exporting countries in the

aggregate exceed the commitments made as part of the Agreement on

Agriculture.

(2) Extent of reduction

The Secretary shall not reduce the loan rate under subsection

(a) or (b) of this section below a rate that provides an equal

measure of support to that provided by other major sugar growing,

producing, and exporting countries, based on an examination of

both domestic and export subsidies subject to reduction in the

Agreement on Agriculture.

(3) Announcement of reduction

The Secretary shall announce any loan rate reduction to be made

under this subsection as far in advance as is practicable.

(4) Definitions

In this subsection:

(A) Agreement on Agriculture

The term ''Agreement on Agriculture'' means the Agreement on

Agriculture referred to in section 3511(d)(2) of title 19, or

any amendatory or successor agreement.

(B) Major sugar countries

The term ''major sugar growing, producing, and exporting

countries'' means -

(i) the countries of the European Union; and

(ii) the 10 foreign countries not covered by subparagraph

(A) that the Secretary determines produce the greatest

quantity of sugar.

(d) Term of loans

(1) In general

A loan under this section during any fiscal year shall be made

available not earlier than the beginning of the fiscal year and

shall mature at the earlier of -

(A) the end of the 9-month period beginning on the first day

of the first month after the month in which the loan is made;

or

(B) the end of the fiscal year in which the loan is made.

(2) Supplemental loans

In the case of a loan made under this section in the last 3

months of a fiscal year, the processor may repledge the sugar as

collateral for a second loan in the subsequent fiscal year,

except that the second loan shall -

(A) be made at the loan rate in effect at the time the second

loan is made; and

(B) mature in 9 months less the quantity of time that the

first loan was in effect.

(e) Loan type; processor assurances

(1) Nonrecourse loans

The Secretary shall carry out this section through the use of

nonrecourse loans.

(2) Processor assurances

(A) In general

The Secretary shall obtain from each processor that receives

a loan under this section such assurances as the Secretary

considers adequate to ensure that the processor will provide

payments to producers that are proportional to the value of the

loan received by the processor for the sugar beets and

sugarcane delivered by producers to the processor.

(B) Minimum payments

(i) In general

Subject to clause (ii), the Secretary may establish

appropriate minimum payments for purposes of this paragraph.

(ii) Limitation

In the case of sugar beets, the minimum payment established

under clause (i) shall not exceed the rate of payment

provided for under the applicable contract between a sugar

beet producer and a sugar beet processor.

(iii) Effect of disaster

The Secretary may not bar a beet sugar processor from

eligibility to obtain a loan under this section because of

the failure of the processor to provide the appropriate

minimum payment established under this subsection if the

failure -

(I) occurred during a crop year prior to May 13, 2002;

and

(II) was related, at least in part, to the effects of a

natural disaster, including damage from freeze.

(3) Administration

The Secretary may not impose or enforce any prenotification

requirement, or similar administrative requirement not otherwise

in effect on May 13, 2002, that has the effect of preventing a

processor from electing to forfeit the loan collateral (of an

acceptable grade and quality) on the maturity of the loan.

(f) Loans for in-process sugar

(1) Definition of in-process sugars and syrups

In this subsection, the term ''in-process sugars and syrups''

does not include raw sugar, liquid sugar, invert sugar, invert

syrup, or other finished product that is otherwise eligible for a

loan under subsection (a) or (b) of this section.

(2) Availability

The Secretary shall make nonrecourse loans available to

processors of a crop of domestically grown sugarcane and sugar

beets for in-process sugars and syrups derived from the crop.

(3) Loan rate

The loan rate shall be equal to 80 percent of the loan rate

applicable to raw cane sugar or refined beet sugar, as determined

by the Secretary on the basis of the source material for the

in-process sugars and syrups.

(4) Further processing on forfeiture

(A) In general

As a condition of the forfeiture of in-process sugars and

syrups serving as collateral for a loan under paragraph (2),

the processor shall, within such reasonable time period as the

Secretary may prescribe and at no cost to the Commodity Credit

Corporation, convert the in-process sugars and syrups into raw

cane sugar or refined beet sugar of acceptable grade and

quality for sugars eligible for loans under subsection (a) or

(b) of this section.

(B) Transfer to Corporation

Once the in-process sugars and syrups are fully processed

into raw cane sugar or refined beet sugar, the processor shall

transfer the sugar to the Commodity Credit Corporation.

(C) Payment to processor

On transfer of the sugar, the Secretary shall make a payment

to the processor in an amount equal to the amount obtained by

multiplying -

(i) the difference between -

(I) the loan rate for raw cane sugar or refined beet

sugar, as appropriate; and

(II) the loan rate the processor received under paragraph

(3); by

(ii) the quantity of sugar transferred to the Secretary.

(5) Loan conversion

If the processor does not forfeit the collateral as described

in paragraph (4), but instead further processes the in-process

sugars and syrups into raw cane sugar or refined beet sugar and

repays the loan on the in-process sugars and syrups, the

processor may obtain a loan under subsection (a) or (b) of this

section for the raw cane sugar or refined beet sugar, as

appropriate.

(6) Term of loan

The term of a loan made under this subsection for a quantity of

in-process sugars and syrups, when combined with the term of a

loan made with respect to the raw cane sugar or refined beet

sugar derived from the in-process sugars and syrups, may not

exceed 9 months, consistent with subsection (d) of this section.

(g) Avoiding forfeitures; Corporation inventory disposition

(1) In general

Subject to subsection (e)(3) of this section, to the maximum

extent practicable, the Secretary shall operate the program

established under this section at no cost to the Federal

Government by avoiding the forfeiture of sugar to the Commodity

Credit Corporation.

(2) Inventory disposition

(A) In general

To carry out paragraph (1), the Commodity Credit Corporation

may accept bids to obtain raw cane sugar or refined beet sugar

in the inventory of the Commodity Credit Corporation from (or

otherwise make available such commodities, on appropriate terms

and conditions, to) processors of sugarcane and processors of

sugar beets (acting in conjunction with the producers of the

sugarcane or sugar beets processed by the processors) in return

for the reduction of production of raw cane sugar or refined

beet sugar, as appropriate.

(B) Additional authority

The authority provided under this paragraph is in addition to

any authority of the Commodity Credit Corporation under any

other law.

(h) Information reporting

(1) Duty of processors and refiners to report

A sugarcane processor, cane sugar refiner, and sugar beet

processor shall furnish the Secretary, on a monthly basis, such

information as the Secretary may require to administer sugar

programs, including the quantity of purchases of sugarcane, sugar

beets, and sugar, and production, importation, distribution, and

stock levels of sugar.

(2) Duty of producers to report

(A) Proportionate share States

As a condition of a loan made to a processor for the benefit

of a producer, the Secretary shall require each producer of

sugarcane located in a State (other than the Commonwealth of

Puerto Rico) in which there are in excess of 250 producers of

sugarcane to report, in the manner prescribed by the Secretary,

the sugarcane yields and acres planted to sugarcane of the

producer.

(B) Other States

The Secretary may require each producer of sugarcane or sugar

beets not covered by subparagraph (A) to report, in a manner

prescribed by the Secretary, the yields of, and acres planted

to, sugarcane or sugar beets, respectively, of the producer.

(3) Duty of importers to report

(A) In general

Except as provided in subparagraph (B), the Secretary shall

require an importer of sugars, syrups, or molasses to be used

for human consumption or to be used for the extraction of sugar

for human consumption to report, in the manner prescribed by

the Secretary, the quantities of the products imported by the

importer and the sugar content or equivalent of the products.

(B) Tariff-rate quotas

Subparagraph (A) shall not apply to sugars, syrups, or

molasses that are within the quantities of tariff-rate quotas

that are subject to the lower rate of duties.

(4) Penalty

Any person willfully failing or refusing to furnish the

information, or furnishing willfully any false information, shall

be subject to a civil penalty of not more than $10,000 for each

such violation.

(5) Monthly reports

Taking into consideration the information received under this

subsection, the Secretary shall publish on a monthly basis

composite data on production, imports, distribution, and stock

levels of sugar.

(i) Substitution of refined sugar

For purposes of Additional U.S. Note 6 to chapter 17 of the

Harmonized Tariff Schedule of the United States and the reexport

programs and polyhydric alcohol program administered by the

Secretary, all refined sugars (whether derived from sugar beets or

sugarcane) produced by cane sugar refineries and beet sugar

processors shall be fully substitutable for the export of sugar and

sugar-containing products under those programs.

(j) Effective period

This section shall be effective only for the 1996 through 2007

crops of sugar beets and sugarcane.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 156, Apr. 4, 1996, 110 Stat. 931;

Pub. L. 106-387, Sec. 1(a) (title VIII, Sec. 836), Oct. 28, 2000,

114 Stat. 1549, 1549A-62; Pub. L. 107-171, title I, Sec. 1401(a),

May 13, 2002, 116 Stat. 183.)

-REFTEXT-

REFERENCES IN TEXT

The Harmonized Tariff Schedule of the United States, referred to

in subsec. (i), is not set out in the Code. See Publication of

Harmonized Tariff Schedule note set out under section 1202 of Title

19, Customs Duties.

-MISC2-

AMENDMENTS

2002 - Pub. L. 107-171 reenacted section catchline and amended

text generally, substituting substantially similar provisions in

subsecs. (a), (b), (d), (e), and (h), and substituting in subsec.

(c) provisions relating to loan rate adjustments for provisions

relating to reduction in loan rates, in subsec. (f) provisions

relating to loans for in-process sugar for provisions for marketing

assessment, in subsec. (g) provisions relating to avoiding

forfeitures and corporate inventory disposition for provisions

relating to forfeiture penalty, in subsec. (i) provisions relating

to substitution of refined sugar for provisions relating to crops,

and adding subsec. (j).

2000 - Subsec. (e)(1). Pub. L. 106-387, Sec. 1(a) (title VIII,

Sec. 836(1)(B)), substituted ''The'' for ''Subject to paragraph

(2), the''.

Pub. L. 106-387, Sec. 1(a) (title VIII, Sec. 836(1)(A)),

substituted ''nonrecourse'' for ''recourse''.

Subsec. (e)(2), (3). Pub. L. 106-387, Sec. 1(a) (title VIII, Sec.

836(2)-(4)), redesignated par. (3) as (2), substituted ''The

Secretary shall'' for ''If the Secretary is required under

paragraph (2) to make nonrecourse loans available during a fiscal

year or to change recourse loans into nonrecourse loans, the

Secretary shall'', and struck out heading and text of former par.

(2). Text read as follows: ''During any fiscal year in which the

tariff rate quota for imports of sugar into the United States is

established at, or is increased to, a level in excess of 1,500,000

short tons raw value, the Secretary shall carry out this section by

making available nonrecourse loans. Any recourse loan previously

made available by the Secretary under this section during the

fiscal year shall be changed by the Secretary into a nonrecourse

loan.''

EFFECTIVE DATE OF ASSESSMENT TERMINATION

Pub. L. 107-171, title I, Sec. 1401(b), May 13, 2002, 116 Stat.

187, provided that: ''Subsection (f) of section 156 of the Federal

Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7272(f)),

as in effect immediately before the enactment of the Farm Security

and Rural Investment Act of 2002 (Pub. L. 107-171), is deemed to

have been repealed effective as of October 1, 2001.''

REGULATIONS

Pub. L. 106-387, Sec. 1(a) (title VIII, Sec. 840), Oct. 28, 2000,

114 Stat. 1549, 1549A-63, provided that: ''As soon as practicable

after the date of enactment of this Act (Oct. 28, 2000), the

Secretary and the Commodity Credit Corporation, as appropriate,

shall issue such regulations as are necessary to implement sections

804, 805, 806, 809, 810, 811, 812, 814, 815, 816, 836, 837, 838,

839, 841, 843, 844, and 845 of this title (amending this section

and section 3720B of Title 31, Money and Finance, enacting

provisions set out as notes under section 3720B of Title 31, and

amending provisions set out as a note under section 1421 of this

title): Provided, That the issuance of the regulations shall be

made without regard to: (1) the notice and comment provisions of

section 553 of title 5, United States Code; (2) the Statement of

Policy of the Secretary of Agriculture effective July 24, 1971 (36

Fed. Reg. 13804), relating to notices of proposed rulemaking and

public participation in rulemaking; and (3) chapter 35 of title 44,

United States Code (commonly known as the 'Paperwork Reduction

Act'): Provided further, That in carrying out this section, the

Secretary shall use the authority provided under section 808 of

title 5, United States Code.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1359bb, 7283 of this

title.

-CITE-

7 USC SUBCHAPTER V - ADMINISTRATION 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

.

-HEAD-

SUBCHAPTER V - ADMINISTRATION

-CITE-

7 USC Sec. 7281 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7281. Administration

-STATUTE-

(a) Use of Commodity Credit Corporation

The Secretary shall carry out this chapter through the Commodity

Credit Corporation.

(b) Omitted

(c) Determinations by Secretary

A determination made by the Secretary under this chapter shall be

final and conclusive.

(d) Regulations

Not later than 90 days after April 4, 1996, the Secretary and the

Commodity Credit Corporation, as appropriate, shall issue such

regulations as are necessary to implement this chapter. The

issuance of the regulations shall be made without regard to -

(1) the notice and comment provisions of section 553 of title

5;

(2) the Statement of Policy of the Secretary of Agriculture

effective July 24, 1971 (36 Fed. Reg. 13804) relating to notices

of proposed rulemaking and public participation in rulemaking;

and

(3) chapter 35 of title 44, United States Code (commonly know

(FOOTNOTE 1) as the ''Paperwork Reduction Act'').

(FOOTNOTE 1) So in original. Probably should be ''known''.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 161, Apr. 4, 1996, 110 Stat. 934.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in text, see note

set out under section 7201 of this title.

-COD-

CODIFICATION

Section is comprised of section 161 of Pub. L. 104-127. Subsec.

(b) of section 161 of Pub. L. 104-127 amended sections 714b, 714i,

and 714k of Title 15, Commerce and Trade.

-CITE-

7 USC Sec. 7282 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7282. Adjustments of loans

-STATUTE-

(a) Adjustment authority

The Secretary may make appropriate adjustments in the loan rates

for any commodity for differences in grade, type, quality,

location, and other factors.

(b) Manner of adjustment

The adjustments under the authority of this section shall, to the

maximum extent practicable, be made in such manner that the average

loan level for the commodity will, on the basis of the anticipated

incidence of the factors, be equal to the level of support

determined as provided in this chapter and title I of the Farm

Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.).

(c) Adjustment on county basis

The Secretary may establish loan rates for a crop for producers

in individual counties in a manner that results in the lowest such

rate being 95 percent of the national average loan rate, except

that such action shall not result in an increase in outlays.

Adjustments under this subsection shall not result in an increase

in the national average loan rate for any year.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 162, Apr. 4, 1996, 110 Stat. 935;

Pub. L. 107-171, title I, Sec. 1606, May 13, 2002, 116 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in subsec. (b),

see note set out under section 7201 of this title.

The Farm Security and Rural Investment Act of 2002, referred to

in subsec. (b), is Pub. L. 107-171, May 13, 2002, 116 Stat. 134.

Title I of the Act is classified principally to chapter 106 (Sec.

7901 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note under section 7901 of this

title and Tables.

-MISC2-

AMENDMENTS

2002 - Subsec. (b). Pub. L. 107-171 substituted ''this chapter

and title I of the Farm Security and Rural Investment Act of 2002''

for ''this chapter''.

-CITE-

7 USC Sec. 7283 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7283. Commodity Credit Corporation interest rate

-STATUTE-

(a) In general

Notwithstanding any other provision of law, the monthly Commodity

Credit Corporation interest rate applicable to loans provided for

agricultural commodities by the Corporation shall be 100 basis

points greater than the rate determined under the applicable

interest rate formula in effect on October 1, 1995.

(b) Sugar

For purposes of this section, raw cane sugar, refined beet sugar,

and in-process sugar eligible for a loan under section 7272 of this

title shall not be considered an agricultural commodity.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 163, Apr. 4, 1996, 110 Stat. 935;

Pub. L. 107-171, title I, Sec. 1401(c), May 13, 2002, 116 Stat.

187.)

-MISC1-

AMENDMENTS

2002 - Pub. L. 107-171 designated existing provisions as subsec.

(a), inserted heading, and added subsec. (b).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7934, 7939, 7957 of this

title.

-CITE-

7 USC Sec. 7284 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7284. Personal liability of producers for deficiencies

-STATUTE-

(a) In general

Except as provided in subsection (b) of this section, no producer

shall be personally liable for any deficiency arising from the sale

of the collateral securing any nonrecourse loan made under this

chapter and title I of the Farm Security and Rural Investment Act

of 2002 (7 U.S.C. 7901 et seq.) unless the loan was obtained

through a fraudulent representation by the producer.

(b) Limitations

Subsection (a) of this section shall not prevent the Commodity

Credit Corporation or the Secretary from requiring a producer to

assume liability for -

(1) a deficiency in the grade, quality, or quantity of a

commodity stored on a farm or delivered by the producer;

(2) a failure to properly care for and preserve a commodity; or

(3) a failure or refusal to deliver a commodity in accordance

with a program established under this chapter and title I of the

Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et

seq.).

(c) Acquisition of collateral

In the case of a nonrecourse loan made under this chapter and

title I of the Farm Security and Rural Investment Act of 2002 (7

U.S.C. 7901 et seq.) or the Commodity Credit Corporation Charter

Act (15 U.S.C. 714 et seq.), if the Commodity Credit Corporation

acquires title to the unredeemed collateral, the Corporation shall

be under no obligation to pay for any market value that the

collateral may have in excess of the loan indebtedness.

(d) Sugarcane and sugar beets

A security interest obtained by the Commodity Credit Corporation

as a result of the execution of a security agreement by the

processor of sugarcane or sugar beets shall be superior to all

statutory and common law liens on raw cane sugar and refined beet

sugar in favor of the producers of sugarcane and sugar beets and

all prior recorded and unrecorded liens on the crops of sugarcane

and sugar beets from which the sugar was derived.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 164, Apr. 4, 1996, 110 Stat. 935;

Pub. L. 107-171, title I, Sec. 1607, May 13, 2002, 116 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in text, see note

set out under section 7201 of this title.

The Farm Security and Rural Investment Act of 2002, referred to

in subsecs. (a), (b)(3), and (c), is Pub. L. 107-171, May 13, 2002,

116 Stat. 134. Title I of the Act is classified principally to

chapter 106 (Sec. 7901 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note under

section 7901 of this title and Tables.

The Commodity Credit Corporation Charter Act, referred to in

subsec. (c), is act June 29, 1948, ch. 704, 62 Stat. 1070, as

amended, which is classified generally to subchapter II (Sec. 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.

-MISC2-

AMENDMENTS

2002 - Subsecs. (a), (b)(3), (c). Pub. L. 107-171 substituted

''this chapter and title I of the Farm Security and Rural

Investment Act of 2002'' for ''this chapter''.

-CITE-

7 USC Sec. 7285 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7285. Commodity Credit Corporation sales price restrictions

-STATUTE-

(a) General sales authority

The Commodity Credit Corporation may sell any commodity owned or

controlled by the Corporation at any price that the Secretary

determines will maximize returns to the Corporation.

(b) Nonapplication of sales price restrictions

Subsection (a) of this section shall not apply to -

(1) a sale for a new or byproduct use;

(2) a sale of peanuts or oilseeds for the extraction of oil;

(3) a sale for seed or feed if the sale will not substantially

impair any loan program;

(4) a sale of a commodity that has substantially deteriorated

in quality or as to which there is a danger of loss or waste

through deterioration or spoilage;

(5) a sale for the purpose of establishing a claim arising out

of a contract or against a person who has committed fraud,

misrepresentation, or other wrongful act with respect to the

commodity;

(6) a sale for export, as determined by the Corporation; and

(7) a sale for other than a primary use.

(c) Presidential disaster areas

(1) In general

Notwithstanding subsection (a) of this section, on such terms

and conditions as the Secretary may consider in the public

interest, the Corporation may make available any commodity or

product owned or controlled by the Corporation for use in

relieving distress -

(A) in any area in the United States (including the Virgin

Islands) declared by the President to be an acute distress area

because of unemployment or other economic cause, if the

President finds that the use will not displace or interfere

with normal marketing of agricultural commodities; and

(B) in connection with any major disaster determined by the

President to warrant assistance by the Federal Government under

the Robert T. Stafford Disaster Relief and Emergency Assistance

Act (42 U.S.C. 5121 et seq.).

(2) Costs

Except on a reimbursable basis, the Corporation shall not bear

any costs in connection with making a commodity available under

paragraph (1) beyond the cost of the commodity to the Corporation

incurred in -

(A) the storage of the commodity; and

(B) the handling and transportation costs in making delivery

of the commodity to designated agencies at 1 or more central

locations in each State or other area.

(d) Efficient operations

Subsection (a) of this section shall not apply to the sale of a

commodity the disposition of which is desirable in the interest of

the effective and efficient conduct of the operations of the

Corporation because of the small quantity of the commodity

involved, or because of the age, location, or questionable

continued storability of the commodity.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 165, Apr. 4, 1996, 110 Stat. 936.)

-REFTEXT-

REFERENCES IN TEXT

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in subsec. (c)(1)(B), is Pub. L. 93-288, May 22,

1974, 88 Stat. 143, as amended, which is classified principally to

chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 5121 of Title 42 and Tables.

-CITE-

7 USC Sec. 7286 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER V - ADMINISTRATION

-HEAD-

Sec. 7286. Commodity certificates

-STATUTE-

(a) In general

In making in-kind payments under subchapter III of this chapter

and subtitle (FOOTNOTE 1) B and C of title I of the Farm Security

and Rural Investment Act of 2002 (7 U.S.C. 7931 et seq., 7951 et

seq.), the Commodity Credit Corporation may -

(FOOTNOTE 1) So in original. Probably should be ''subtitles''.

(1) acquire and use commodities that have been pledged to the

Commodity Credit Corporation as collateral for loans made by the

Corporation;

(2) use other commodities owned by the Commodity Credit

Corporation; and

(3) redeem negotiable marketing certificates for cash under

terms and conditions established by the Secretary.

(b) Methods of payment

The Commodity Credit Corporation may make in-kind payments -

(1) by delivery of the commodity at a warehouse or other

similar facility;

(2) by the transfer of negotiable warehouse receipts;

(3) by the issuance of negotiable certificates, which the

Commodity Credit Corporation shall exchange for a commodity owned

or controlled by the Corporation in accordance with regulations

promulgated by the Corporation; or

(4) by such other methods as the Commodity Credit Corporation

determines appropriate to promote the efficient, equitable, and

expeditious receipt of the in-kind payments so that a person

receiving the payments receives the same total return as if the

payments had been made in cash.

(c) Administration

(1) Form

At the option of a producer, the Commodity Credit Corporation

shall make negotiable certificates authorized under subsection

(b)(3) of this section available to the producer, in the form of

program payments or by sale, in a manner that the Corporation

determines will encourage the orderly marketing of commodities

pledged as collateral for loans made to producers under

subchapter III of this chapter and subtitle (FOOTNOTE 1) B and C

of title I of the Farm Security and Rural Investment Act of 2002

(7 U.S.C. 7931 et seq., 7951 et seq.).

(2) Transfer

A negotiable certificate issued in accordance with this

subsection may be transferred to another person in accordance

with regulations promulgated by the Secretary.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 166, as added Pub. L. 106-78, title

VIII, Sec. 812, Oct. 22, 1999, 113 Stat. 1181; amended Pub. L.

107-171, title I, Sec. 1608, May 13, 2002, 116 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

The Farm Security and Rural Investment Act of 2002, referred to

in subsecs. (a) and (c)(1), is Pub. L. 107-171, May 13, 2002, 116

Stat. 134. Subtitle B of title I of the Act is classified generally

to subchapter II (Sec. 7931 et seq.) of chapter 106 of this title.

Subtitle C of title I of the Act is classified principally to

subchapter III (Sec. 7951 et seq.) of chapter 106 of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 7901 of this title and Tables.

-MISC2-

AMENDMENTS

2002 - Subsecs. (a), (c)(1). Pub. L. 107-171 substituted

''subchapter III of this chapter and subtitle B and C of title I of

the Farm Security and Rural Investment Act of 2002'' for

''subchapter III of this chapter''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7931, 7957 of this title.

-CITE-

7 USC SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

.

-HEAD-

SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-CITE-

7 USC Sec. 7301 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-HEAD-

Sec. 7301. Suspension and repeal of permanent price support

authority

-STATUTE-

(a) Agricultural Adjustment Act of 1938

(1) Suspensions

The following provisions of the Agricultural Adjustment Act of

1938 (7 U.S.C. 1281 et seq.) shall not be applicable to the 1996

through 2001 crops of loan commodities, peanuts, and sugar and

shall not be applicable to milk during the period beginning on

April 4, 1996, and ending on December 31, 2002:

(A) Parts II through V of subtitle B of title III (7 U.S.C.

1326-1351) (7 U.S.C. 1321 et seq., 1331 et seq., 1341 et seq.,

1351).

(B) Subsections (a) through (j) of section 358 (7 U.S.C.

1358). (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(C) Subsections (a) through (h) of section 358a (7 U.S.C.

1358a). (FOOTNOTE 1)

(D) Subsections (a), (b), (d), and (e) of section 358d (7

U.S.C. 1359). (FOOTNOTE 1)

(E) Part VII of subtitle B of title III (7 U.S.C.

1359aa-1359jj).

(F) In the case of peanuts, part I of subtitle C of title III

(7 U.S.C. 1361-1368).

(G) In the case of upland cotton, section 377 (7 U.S.C.

1377).

(H) Subtitle D of title III (7 U.S.C. 1379a-1379j).

(I) Title IV (7 U.S.C. 1401-1407).

(2) Omitted

(b) Agricultural Act of 1949

(1) Suspensions

The following provisions of the Agricultural Act of 1949 (7

U.S.C. 1421 et seq.) shall not be applicable to the 1996 through

2002 crops of loan commodities, peanuts, and sugar and shall not

be applicable to milk during the period beginning on April 4,

1996, and ending on December 31, 2002:

(A) Section 101 (7 U.S.C. 1441).

(B) Section 103(a) (7 U.S.C. 1444(a)).

(C) Section 105 (7 U.S.C. 1444b).

(D) Section 107 (7 U.S.C. 1445a).

(E) Section 110 (7 U.S.C. 1445e).

(F) Section 112 (7 U.S.C. 1445g).

(G) Section 115 (7 U.S.C. 1445k).

(H) Section 201 (7 U.S.C. 1446).

(I) Title III (7 U.S.C. 1447-1449).

(J) Title IV (7 U.S.C. 1421-1433d), other than sections 404,

412, and 416 (7 U.S.C. 1424, 1429, and 1431).

(K) Title V (7 U.S.C. 1461-1469).

(L) Title VI (7 U.S.C. 1471-1471j).

(2) Repeals

The following provisions of the Agricultural Act of 1949 (7

U.S.C. 1421 et seq.) are repealed:

(A) Section 101B (7 U.S.C. 1441-2).

(B) Section 103B (7 U.S.C. 1444-2).

(C) Section 105B (7 U.S.C. 1444f).

(D) Section 107B (7 U.S.C. 1445b-3a).

(E) Section 108B (7 U.S.C. 1445c-3).

(F) Section 113 (7 U.S.C. 1445h).

(G) Subsections (b) and (c) of section 114 (7 U.S.C. 1445j).

(H) Sections 205, 206, and 207 (7 U.S.C. 1446f, 1446g, and

1446h).

(I) Sections 406 and 427 (7 U.S.C. 1426 and 1433f).

(3) Omitted

(c) Suspension of certain quota provisions

Section 1340 of this title shall not be applicable to the crops

of wheat planted for harvest in the calendar years 1996 through

2002.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 171, Apr. 4, 1996, 110 Stat. 937;

Pub. L. 107-171, title I, Sec. 1602(d), May 13, 2002, 116 Stat.

213.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Adjustment Act of 1938, referred to in subsec.

(a)(1), is act Feb. 16, 1938, ch. 30, 52 Stat. 31, as amended,

which is classified principally to chapter 35 (Sec. 1281 et seq.)

of this title. Parts II through V and VII of subtitle B of title

III of the Act are classified generally to subparts II (Sec. 1321

et seq.), III (Sec. 1331 et seq.), IV (Sec. 1341 et seq.), V (Sec.

1351, which was omitted from the Code), and VII (Sec. 1359aa et

seq.), respectively, of part B of subchapter II of chapter 35 of

this title. Part I of subtitle C of title III of the Act is

classified generally to subpart I (Sec. 1361 et seq.) of part C of

subchapter II of chapter 35 of this title. Subtitle D of title III

of the Act is classified generally to part D (Sec. 1379a et seq.)

of subchapter II of chapter 35 of this title. Title IV of the Act

was classified generally to subchapter III (Sec. 1401 et seq.) of

chapter 35 of this title, and was omitted from the Code. For

complete classification of this Act to the Code, see section 1281

of this title and Tables.

Sections 1358, 1358a, and 1359 of this title, referred to in

subsec. (a)(1)(B)-(D), were repealed by Pub. L. 107-171, title I,

Sec. 1309(a)(1), May 13, 2002, 116 Stat. 179.

The Agricultural Act of 1949, referred to in subsec. (b)(1), (2),

is act Oct. 31, 1949, ch. 792, 63 Stat. 1051, as amended, which is

classified principally to chapter 35A (Sec. 1421 et seq.) of this

title. Title III of the Act is classified generally to sections

1447 to 1449 of this title. Title IV of the Act is classified

principally to subchapter I (Sec. 1421 et seq.) of chapter 35A of

this title. Title V of the Act, which was classified generally to

subchapter IV (Sec. 1461 et seq.) of chapter 35A of this title, was

omitted from the Code. Title VI of the Act is classified generally

to subchapter V (Sec. 1471 et seq.) of chapter 35A of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 1421 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of section 171 of Pub. L. 104-127. Subsec.

(a)(2) of section 171 of Pub. L. 104-127 amended section 1373 of

this title and enacted provisions set out as a note under section

1373 of this title. Subsec. (b)(3) of section 171 of Pub. L.

104-127 amended section 1441 of this title.

-MISC3-

AMENDMENTS

2002 - Subsec. (a)(1). Pub. L. 107-171 substituted ''1996 through

2001'' for ''1996 through 2002''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 7202, 7901 of this title;

title 2 section 907.

-CITE-

7 USC Sec. 7302 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VI - PERMANENT PRICE SUPPORT AUTHORITY

-HEAD-

Sec. 7302. Effect of chapter

-STATUTE-

(a) Effect on prior crops

Except as otherwise specifically provided in this chapter and

notwithstanding any other provision of law, this chapter and the

amendments made by this chapter shall not affect the authority of

the Secretary to carry out a price support or production adjustment

program for any of the 1991 through 1995 crops of an agricultural

commodity established under a provision of law in effect

immediately before April 4, 1996.

(b) Liability

A provision of this chapter or an amendment made by this chapter

shall not affect the liability of any person under any provision of

law as in effect before April 4, 1996.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 172, Apr. 4, 1996, 110 Stat. 938.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in text, see note

set out under section 7201 of this title.

-CITE-

7 USC SUBCHAPTER VII - COMMISSION ON 21 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

.

-HEAD-

SUBCHAPTER VII - COMMISSION ON 21 st CENTURY PRODUCTION

AGRICULTURE

-CITE-

7 USC Sec. 7311 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7311. Establishment

-STATUTE-

There is established a commission to be known as the ''Commission

on 21st Century Production Agriculture'' (in this subchapter

referred to as the ''Commission'').

-SOURCE-

(Pub. L. 104-127, title I, Sec. 181, Apr. 4, 1996, 110 Stat. 938.)

-CITE-

7 USC Sec. 7312 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7312. Composition

-STATUTE-

(a) Membership and appointment

The Commission shall be composed of 11 members, appointed as

follows:

(1) Three members shall be appointed by the President.

(2) Four members shall be appointed by the Chairman of the

Committee on Agriculture of the House of Representatives in

consultation with the ranking minority member of the Committee.

(3) Four members shall be appointed by the Chairman of the

Committee on Agriculture, Nutrition, and Forestry of the Senate

in consultation with the ranking minority member of the

Committee.

(b) Qualifications

At least 1 of the members appointed under each of paragraphs (1),

(2), and (3) of subsection (a) of this section shall be an

individual who is primarily involved in production agriculture.

All other members of the Commission shall be appointed from among

individuals having knowledge and experience in agricultural

production, marketing, finance, or trade.

(c) Term of members; vacancies

A member of the Commission shall be appointed for the life of the

Commission. A vacancy on the Commission shall not affect its

powers, but shall be filled in the same manner as the original

appointment was made.

(d) Time for appointment; first meeting

The members of the Commission shall be appointed not later than

October 1, 1997. The Commission shall convene its first meeting to

carry out its duties under this subchapter 30 days after 6 members

of the Commission have been appointed.

(e) Chairperson

The chairperson of the Commission shall be designated jointly by

the Chairman of the Committee on Agriculture of the House of

Representatives and the Chairman of the Committee on Agriculture,

Nutrition, and Forestry of the Senate from among the members of the

Commission.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 182, Apr. 4, 1996, 110 Stat. 938.)

-CITE-

7 USC Sec. 7313 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7313. Comprehensive review of past and future of production

agriculture

-STATUTE-

(a) Initial review

The Commission shall conduct a comprehensive review of changes in

the condition of production agriculture in the United States since

April 4, 1996, and the extent to which the changes are the result

of this chapter and the amendments made by this chapter. The

review shall include the following:

(1) An assessment of the initial success of production

flexibility contracts in supporting the economic viability of

farming in the United States.

(2) An assessment of economic risks to farms delineated by size

of farm operation (such as small, medium, or large farms) and

region of production.

(3) An assessment of the food security situation in the United

States in the areas of trade, consumer prices, international

competitiveness of United States production agriculture, food

supplies, and humanitarian relief.

(4) An assessment of the changes in farmland values and

agricultural producer incomes since April 4, 1996.

(5) An assessment of the extent to which regulatory relief for

agricultural producers has been enacted and implemented,

including the application of cost/benefit principles in the

issuance of agricultural regulations.

(6) An assessment of the extent to which tax relief for

agricultural producers has been enacted in the form of capital

gains tax reductions, estate tax exemptions, and mechanisms to

average tax loads over high- and low-income years.

(7) An assessment of the effect of any Federal Government

interference in agricultural export markets, such as the

imposition of trade embargoes, and the degree of implementation

and success of international trade agreements and United States

export programs.

(8) An assessment of the likely effect of the sale, lease, or

transfer of farm poundage quota for peanuts across State lines.

(b) Subsequent review

The Commission shall conduct a comprehensive review of the future

of production agriculture in the United States and the appropriate

role of the Federal Government in support of production

agriculture. The review shall include the following:

(1) An assessment of changes in the condition of production

agriculture in the United States since the initial review

conducted under subsection (a) of this section.

(2) Identification of the appropriate future relationship of

the Federal Government with production agriculture after 2002.

(3) An assessment of the personnel and infrastructure

requirements of the Department of Agriculture necessary to

support the future relationship of the Federal Government with

production agriculture.

(4) An assessment of economic risks to farms delineated by size

of farm operation (such as small, medium, or large farms) and

region of production.

(c) Recommendations

In carrying out the subsequent review under subsection (b) of

this section, the Commission shall develop specific recommendations

for legislation to achieve the appropriate future relationship of

the Federal Government with production agriculture identified under

subsection (a)(2) of this section.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 183, Apr. 4, 1996, 110 Stat. 939.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in subsec. (a),

see note set out under section 7201 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7314 of this title.

-CITE-

7 USC Sec. 7314 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7314. Reports

-STATUTE-

(a) Report on initial review

Not later than June 1, 1998, the Commission shall submit to the

President, the Committee on Agriculture of the House of

Representatives, and the Committee on Agriculture, Nutrition, and

Forestry of the Senate a report containing the results of the

initial review conducted under section 7313(a) of this title.

(b) Report on subsequent review

Not later than January 1, 2001, the Commission shall submit to

the President and the congressional committees specified in

subsection (a) of this section a report containing the results of

the subsequent review conducted under section 7313(b) of this

title.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 184, Apr. 4, 1996, 110 Stat. 940.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 7318 of this title.

-CITE-

7 USC Sec. 7315 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7315. Powers

-STATUTE-

(a) Hearings

The Commission may, for the purpose of carrying out this

subchapter, conduct such hearings, sit and act at such times, take

such testimony, and receive such evidence, as the Commission

considers appropriate.

(b) Assistance from other agencies

The Commission may secure directly from any department or agency

of the Federal Government such information as may be necessary for

the Commission to carry out its duties under this subchapter. On

the request of the chairperson of the Commission, the head of the

department or agency shall, to the extent permitted by law, furnish

such information to the Commission.

(c) Mail

The Commission may use the United States mails in the same manner

and under the same conditions as the departments and agencies of

the Federal Government.

(d) Assistance from Secretary

The Secretary shall provide to the Commission appropriate office

space and such reasonable administrative and support services as

the Commission may request.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 185, Apr. 4, 1996, 110 Stat. 940.)

-CITE-

7 USC Sec. 7316 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7316. Commission procedures

-STATUTE-

(a) Meetings

The Commission shall meet on a regular basis (as determined by

the chairperson) and at the call of the chairperson or a majority

of its members.

(b) Quorum

A majority of the members of the Commission shall constitute a

quorum for the transaction of business.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 186, Apr. 4, 1996, 110 Stat. 941.)

-CITE-

7 USC Sec. 7317 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7317. Personnel matters

-STATUTE-

(a) Compensation

Each member of the Commission shall serve without compensation,

but shall be allowed travel expenses including per diem in lieu of

subsistence, as authorized by section 5703 of title 5, when engaged

in the performance of Commission duties.

(b) Staff

(1) Appointment

The Commission shall appoint a staff director, who shall be

paid at a rate not to exceed the maximum rate of basic pay under

section 5376 of title 5, and such professional and clerical

personnel as may be reasonable and necessary to enable the

Commission to carry out its duties under this subchapter without

regard to the provisions of title 5 governing appointments in the

competitive service, and without regard to the provisions of

chapter 51 and subchapter III of chapter 53 of such title, or any

other provision of law, relating to the number, classification,

and General Schedule rates.

(2) Limitation on compensation

No employee appointed under this subsection (other than the

staff director) may be compensated at a rate to exceed the

maximum rate applicable to level GS-15 of the General Schedule.

(c) Detailed personnel

On the request of the chairperson of the Commission, the head of

any department or agency of the Federal Government is authorized to

detail, without reimbursement, any personnel of the department or

agency to the Commission to assist the Commission in carrying out

its duties under this section. The detail of any individual may

not result in the interruption or loss of civil service status or

other privilege of the individual.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 187, Apr. 4, 1996, 110 Stat. 941.)

-REFTEXT-

REFERENCES IN TEXT

The provisions of title 5 governing appointments in the

competitive service, referred to in subsec. (b)(1), are classified

generally to section 3301 et seq. of Title 5, Government

Organization and Employees.

The General Schedule, referred to in subsec. (b), is set out

under section 5332 of Title 5.

-CITE-

7 USC Sec. 7318 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VII - COMMISSION ON 21

-HEAD-

Sec. 7318. Termination of Commission

-STATUTE-

The Commission shall terminate on submission of the final report

required by section 7314 of this title.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 188, Apr. 4, 1996, 110 Stat. 941.)

-CITE-

7 USC SUBCHAPTER VIII - MISCELLANEOUS COMMODITY

PROVISIONS 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

.

-HEAD-

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-CITE-

7 USC Sec. 7331 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-

Sec. 7331. Options pilot program

-STATUTE-

(a) Pilot programs authorized

Until December 31, 2002, the Secretary of Agriculture may conduct

a pilot program for 1 or more agricultural commodities supported

under this chapter to ascertain whether futures and options

contracts can provide producers with reasonable protection from the

financial risks of fluctuations in price, yield, and income

inherent in the production and marketing of the commodities. The

pilot program shall be an alternative to other related programs of

the Department of Agriculture.

(b) Distribution of pilot program

For each agricultural commodity included in the pilot program,

the Secretary may operate the pilot program in not more than 300

counties, except that not more than 25 of the counties may be

located in any 1 State. The pilot program for a commodity shall not

be operated in any county for more than 3 of the 1996 through 2002

calendar years.

(c) Eligible participants

In operating the pilot program, the Secretary may enter into

contract with a producer who -

(1) is eligible for a production flexibility contract, a

marketing assistance loan, or other assistance under this

chapter;

(2) volunteers to participate in the pilot program during any

calendar year in which a county in which the farm of the producer

is located is included in the pilot program;

(3) operates a farm located in a county selected for the pilot

program; and

(4) meets such other eligibility requirements as the Secretary

may establish.

(d) Notice to producers

The Secretary shall provide notice to each producer participating

in the pilot program that -

(1) the participation of the producer is voluntary; and

(2) neither the United States, the Commodity Credit

Corporation, the Federal Crop Insurance Corporation, the

Department of Agriculture, nor any other Federal agency is

authorized to guarantee that participants in the pilot program

will be better or worse off financially as a result of

participation in the pilot program than the producer would have

been if the producer had not participated in the pilot program.

(e) Contracts

The Secretary shall set forth in each contract under the pilot

program the terms and conditions for participation in the pilot

program and the notice required by subsection (d) of this section.

(f) Eligible markets

Trades for futures and options contracts under the pilot program

shall be carried out on commodity futures and options markets

designated as contract markets under the Commodity Exchange Act (7

U.S.C. 1 et seq.).

(g) Recordkeeping

A producer participating in the pilot program shall compile,

maintain, and submit (or authorize the compilation, maintenance,

and submission) of such documentation as the regulations governing

the pilot program require.

(h) Use of Commodity Credit Corporation

The Secretary shall fund and operate the pilot program through

the Commodity Credit Corporation, except that the amount of

Commodity Credit Corporation funds used to carry out this section

shall not exceed, to the maximum extent practicable, $9,000,000 for

fiscal year 2001, $15,000,000 for fiscal year 2002, and $2,000,000

for fiscal year 2003. To the maximum extent practicable, the

Secretary shall operate the pilot program in a budget neutral

manner.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 191, Apr. 4, 1996, 110 Stat. 941;

Pub. L. 106-224, title I, Sec. 134, June 20, 2000, 114 Stat. 388.)

-REFTEXT-

REFERENCES IN TEXT

For definition of ''this chapter'', referred to in subsecs. (a)

and (c)(1), see note set out under section 7201 of this title.

The Commodity Exchange Act, referred to in subsec. (f), is act

Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is

classified generally to chapter 1 (Sec. 1 et seq.) of this title.

For complete classification of this Act to the Code, see section 1

of this title and Tables.

-COD-

CODIFICATION

Section is comprised of section 191 of Pub. L. 104-127. Subsec.

(i) of section 191 of Pub. L. 104-127 repealed provisions set out

as a note under section 1421 of this title.

-MISC3-

AMENDMENTS

2000 - Subsec. (b). Pub. L. 106-224, Sec. 134(1), substituted

''300 counties, except that not more than 25'' for ''100 counties,

except that not more than 6'' in first sentence.

Subsec. (c)(2). Pub. L. 106-224, Sec. 134(2), inserted before

semicolon at end ''during any calendar year in which a county in

which the farm of the producer is located is included in the pilot

program''.

Subsec. (h). Pub. L. 106-224, Sec. 134(3), inserted before period

at end of first sentence '', except that the amount of Commodity

Credit Corporation funds used to carry out this section shall not

exceed, to the maximum extent practicable, $9,000,000 for fiscal

year 2001, $15,000,000 for fiscal year 2002, and $2,000,000 for

fiscal year 2003''.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-224 effective Oct. 1, 2000, see section

171(b)(1)(A) of Pub. L. 106-224, set out as a note under section

1501 of this title.

-CITE-

7 USC Sec. 7332 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-

Sec. 7332. Risk management education

-STATUTE-

In consultation with the Commodity Futures Trading Commission,

the Secretary shall provide such education in management of the

financial risks inherent in the production and marketing of

agricultural commodities as the Secretary considers appropriate.

As part of such educational activities, the Secretary may develop

and implement programs to facilitate the participation of

agricultural producers in commodity futures trading programs,

forward contracting options, and insurance protection programs by

assisting and training producers in the usage of such programs. In

implementing this authority, the Secretary may use existing

research and extension authorities and resources of the Department

of Agriculture.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 192, Apr. 4, 1996, 110 Stat. 942.)

-CITE-

7 USC Sec. 7333 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-

Sec. 7333. Administration and operation of noninsured crop

assistance program

-STATUTE-

(a) Operation and administration of program

(1) In general

In the case of an eligible crop described in paragraph (2), the

Secretary of Agriculture shall operate a noninsured crop disaster

assistance program to provide coverage equivalent to the

catastrophic risk protection otherwise available under section

1508(b) of this title. The Secretary shall carry out this

section through the Consolidated Farm Service Agency (in this

section referred to as the ''Agency'').

(2) Eligible crops

(A) In general

In this section, the term ''eligible crop'' means each

commercial crop or other agricultural commodity (except

livestock) -

(i) for which catastrophic risk protection under section

1508(b) of this title is not available; and

(ii) that is produced for food or fiber.

(B) Crops specifically included

The term ''eligible crop'' shall include floricultural,

ornamental nursery, and Christmas tree crops, turfgrass sod,

seed crops, aquaculture (including ornamental fish), sea grass

and sea oats, and industrial crops.

(C) Combination of similar types or varieties

At the option of the Secretary, all types or varieties of a

crop or commodity, described in subparagraphs (A) and (B), may

be considered to be a single eligible crop under this section.

(3) Cause of loss

To qualify for assistance under this section, the losses of the

noninsured commodity shall be due to drought, flood, or other

natural disaster, as determined by the Secretary.

(b) Application for noninsured crop disaster assistance

(1) Timely application

To be eligible for assistance under this section, a producer

shall submit an application for noninsured crop disaster

assistance at a local office of the Department. The application

shall be in such form, contain such information, and be submitted

not later than 30 days before the beginning of the coverage

period, as determined by the Secretary.

(2) Records

To be eligible for assistance under this section, a producer

shall provide annually to the Secretary records of crop acreage,

acreage yields, and production for each crop, as required by the

Secretary.

(3) Acreage reports

A producer shall provide annual reports on acreage planted or

prevented from being planted, as required by the Secretary, by

the designated acreage reporting date for the crop and location

as established by the Secretary.

(c) Loss requirements

(1) Cause

To be eligible for assistance under this section, a producer of

an eligible crop shall have suffered a loss of a noninsured

commodity as the result of a cause described in subsection (a)(3)

of this section.

(2) Assistance

On making a determination described in subsection (a)(3) of

this section, the Secretary shall provide assistance under this

section to producers of an eligible crop that have suffered a

loss as a result of the cause described in subsection (a)(3) of

this section.

(3) Prevented planting

Subject to paragraph (1), the Secretary shall make a prevented

planting noninsured crop disaster assistance payment if the

producer is prevented from planting more than 35 percent of the

acreage intended for the eligible crop because of drought, flood,

or other natural disaster, as determined by the Secretary.

(4) Area trigger

The Secretary shall provide assistance to individual producers

without any requirement of an area loss.

(d) Payment

The Secretary shall make available to a producer eligible for

noninsured assistance under this section a payment computed by

multiplying -

(1) the quantity that is less than 50 percent of the

established yield for the crop; by

(2)(A) in the case of each of the 1996 through 1998 crop years,

60 percent of the average market price for the crop (or any

comparable coverage determined by the Secretary); or

(B) in the case of each of the 1999 and subsequent crop years,

55 percent of the average market price for the crop (or any

comparable coverage determined by the Secretary); by

(3) a payment rate for the type of crop (as determined by the

Secretary) that -

(A) in the case of a crop that is produced with a significant

and variable harvesting expense, reflects the decreasing cost

incurred in the production cycle for the crop that is -

(i) harvested;

(ii) planted but not harvested; and

(iii) prevented from being planted because of drought,

flood, or other natural disaster (as determined by the

Secretary); and

(B) in the case of a crop that is not produced with a

significant and variable harvesting expense, as determined by

the Secretary.

(e) Yield determinations

(1) Establishment

The Secretary shall establish farm yields for purposes of

providing noninsured crop disaster assistance under this section.

(2) Actual production history

The Secretary shall determine yield coverage using the actual

production history of the producer over a period of not less than

the 4 previous consecutive crop years and not more than 10

consecutive crop years. Subject to paragraph (3), the yield for

the year in which noninsured crop disaster assistance is sought

shall be equal to the average of the actual production history of

the producer during the period considered.

(3) Assignment of yield

If a producer does not submit adequate documentation of

production history to determine a crop yield under paragraph (2),

the Secretary shall assign to the producer a yield equal to not

less than 65 percent of the transitional yield of the producer

(adjusted to reflect actual production reflected in the records

acceptable to the Secretary for continuous years), as specified

in regulations issued by the Secretary based on production

history requirements.

(4) Prohibition on assigned yields in certain counties

(A) In general

(i) Documentation

If sufficient data are available to demonstrate that the

acreage of a crop in a county for the crop year has increased

by more than 100 percent over any year in the preceding 7

crop years or, if data are not available, if the acreage of

the crop in the county has increased significantly from the

previous crop years, a producer must provide such detailed

documentation of production costs, acres planted, and yield

for the crop year for which benefits are being claimed as is

required by the Secretary. If the Secretary determines that

the documentation provided is not sufficient, the Secretary

may require documenting proof that the crop, had the crop

been harvested, could have been marketed at a reasonable

price.

(ii) Prohibition

Except as provided in subparagraph (B), a producer who

produces a crop on a farm located in a county described in

clause (i) may not obtain an assigned yield.

(B) Exception

A crop or a producer shall not be subject to this subsection

if -

(i) the planted acreage of the producer for the crop has

been inspected by a third party acceptable to the Secretary;

or

(ii)(I) the County Executive Director and the State

Executive Director recommend an exemption from the

requirement to the Administrator of the Agency; and

(II) the Administrator approves the recommendation.

(5) Limitation on receipt of subsequent assigned yield

A producer who receives an assigned yield for the current year

of a natural disaster because required production records were

not submitted to the local office of the Department shall not be

eligible for an assigned yield for the year of the next natural

disaster unless the required production records of the previous 1

or more years (as applicable) are provided to the local office.

(6) Yield variations due to different farming practices

The Secretary shall ensure that noninsured crop disaster

assistance accurately reflects significant yield variations due

to different farming practices, such as between irrigated and

nonirrigated acreage.

(f) Contract payments

A producer who has received a guaranteed payment for production,

as opposed to delivery, of a crop pursuant to a contract shall have

the production of the producer adjusted upward by the amount of the

production equal to the amount of the contract payment received.

(g) Use of Commodity Credit Corporation

The Secretary may use the funds of the Commodity Credit

Corporation to carry out this section.

(h) Exclusions

Noninsured crop disaster assistance under this section shall not

cover losses due to -

(1) the neglect or malfeasance of the producer;

(2) the failure of the producer to reseed to the same crop in

those areas and under such circumstances where it is customary to

reseed; or

(3) the failure of the producer to follow good farming

practices, as determined by the Secretary.

(i) Payment and income limitations

(1) Definitions

In this subsection:

(A) Person

The term ''person'' has the meaning provided the term in

regulations issued by the Secretary. The regulations shall

conform, to the extent practicable, to the regulations defining

the term ''person'' issued under section 1308 of this title.

(B) Qualifying gross revenues

The term ''qualifying gross revenues'' means -

(i) if a majority of the gross revenue of the person is

received from farming, ranching, and forestry operations, the

gross revenue from the farming, ranching, and forestry

operations of the person; and

(ii) if less than a majority of the gross revenue of the

person is received from farming, ranching, and forestry

operations, the gross revenue of the person from all sources.

(2) Payment limitation

The total amount of payments that a person shall be entitled to

receive annually under this section may not exceed $100,000.

(3) Limitation on multiple benefits for same loss

(A) In general

Except as provided in subparagraph (B), if a producer who is

eligible to receive benefits under this section is also

eligible to receive assistance for the same loss under any

other program administered by the Secretary, the producer shall

be required to elect whether to receive benefits under this

section or under the other program, but not both.

(B) Exception

Subparagraph (A) shall not apply to emergency loans under

subtitle C of the Consolidated Farm and Rural Development Act

(7 U.S.C. 1961 et seq.).

(4) Income limitation

A person who has qualifying gross revenues in excess of the

amount specified in section 2266(a) of the Food, Agriculture,

Conservation, and Trade Act of 1990 (7 U.S.C. 1421 note) (as in

effect on November 28, 1990) during the taxable year (as

determined by the Secretary) shall not be eligible to receive any

noninsured assistance payment under this section.

(5) Regulations

The Secretary shall issue regulations prescribing such rules as

the Secretary determines necessary to ensure a fair and equitable

application of section 1308 of this title, the general payment

limitation regulations of the Secretary, and the limitations

established under this subsection.

(j) Omitted

(k) Service fee

(1) In general

To be eligible to receive assistance for an eligible crop for a

crop year under this section, a producer shall pay to the

Secretary (at the time at which the producer submits the

application under subsection (b)(1) of this section) a service

fee for the eligible crop in an amount that is equal to the

lesser of -

(A) $100 per crop per county; or

(B) $300 per producer per county, but not to exceed a total

of $900 per producer.

(2) Waiver

The Secretary shall waive the service fee required under

paragraph (1) in the case of a limited resource farmer, as

defined by the Secretary.

(3) Use

The Secretary shall deposit service fees collected under this

subsection in the Commodity Credit Corporation Fund.

-SOURCE-

(Pub. L. 104-127, title I, Sec. 196, Apr. 4, 1996, 110 Stat. 947;

Pub. L. 105-277, div. A, Sec. 101(a) (title VIII, Sec. 803(b)),

Oct. 21, 1998, 112 Stat. 2681, 2681-38; Pub. L. 106-224, title I,

Sec. 109, June 20, 2000, 114 Stat. 371; Pub. L. 107-171, title X,

Sec. 10101, May 13, 2002, 116 Stat. 488.)

-REFTEXT-

REFERENCES IN TEXT

The Consolidated Farm and Rural Development Act, referred to in

subsec. (i)(3)(B), is title III of Pub. L. 87-128, Aug. 8, 1961, 75

Stat. 307, as amended. Subtitle C of the Act is classified

generally to subchapter III (Sec. 1961 et seq.) of chapter 50 of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1921 of this title and

Tables.

Section 2266(a) of the Food, Agriculture, Conservation, and Trade

Act of 1990, referred to in subsec. (i)(4), is section 2266(a) of

Pub. L. 101-624, which was set out in a note under section 1421 of

this title, prior to repeal by Pub. L. 103-354, title I, Sec.

119(c), Oct. 13, 1994, 108 Stat. 3208.

-COD-

CODIFICATION

Section is comprised of section 196 of Pub. L. 104-127. Subsec.

(j) of section 196 of Pub. L. 104-127 repealed section 1519 of this

title.

-MISC3-

AMENDMENTS

2002 - Subsec. (a)(2)(B). Pub. L. 107-171 inserted ''sea grass

and sea oats,'' after ''fish),''.

2000 - Subsec. (a)(2)(C). Pub. L. 106-224, Sec. 109(a), added

subpar. (C).

Subsec. (b)(1). Pub. L. 106-224, Sec. 109(b), substituted ''not

later than 30 days before the beginning of the coverage period, as

determined by the Secretary'' for ''at such time as the Secretary

may require'' in second sentence.

Subsec. (b)(2). Pub. L. 106-224, Sec. 109(c)(1), added par. (2)

and struck out heading and text of former par. (2). Text read as

follows: ''A producer shall provide records, as required by the

Secretary, of crop acreage, acreage yields, and production.''

Subsec. (b)(3). Pub. L. 106-224, Sec. 109(c)(2), inserted

''annual'' after ''shall provide''.

Subsec. (c). Pub. L. 106-224, Sec. 109(d), added subsec. (c) and

struck out heading and text of former subsec. (c), which authorized

noninsured crop disaster assistance if average yield fell below 65

percent of expected yield, if producer was prevented from planting

more than 35 percent of intended acreage, or if total quantity of

harvest was less than 50 percent of expected yield.

Subsec. (k). Pub. L. 106-224, Sec. 109(e), added subsec. (k).

1998-Subsec. (i)(3). Pub. L. 105-277 designated existing

provisions as subpar. (A), inserted heading, substituted ''Except

as provided in subparagraph (B), if a producer'' for ''If a

producer'', and added subpar. (B).

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-224 applicable beginning with the 2001

crop of an agricultural commodity, see section 171(b)(2)(G) of Pub.

L. 106-224, set out as a note under section 1501 of this title.

SAVINGS CLAUSE

Section as in effect on day before June 20, 2000, to continue to

apply with respect to 1999 crop year, and to apply with respect to

2000 crop year, to extent application of an amendment by Pub. L.

106-224 is delayed under section 171(b) or by terms of the

amendment, see section 173 of Pub. L. 106-224, set out as a note

under section 1501 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1506, 1508a, 1515, 1522,

7936 of this title.

-CITE-

7 USC Sec. 7334 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 100 - AGRICULTURAL MARKET TRANSITION

SUBCHAPTER VIII - MISCELLANEOUS COMMODITY PROVISIONS

-HEAD-

Sec. 7334. Flood risk reduction

-STATUTE-

(a) In general

During fiscal years 1996 through 2002, the Secretary of

Agriculture (referred to in this section as the ''Secretary'') may

enter into a contract with a producer on a farm who has contract

acreage under the Agricultural Market Transition Act (7 U.S.C. 7201

et seq.) that is frequently flooded.

(b) Duties of producers

Under the terms of the contract, with respect to acres that are

subject to the contract, the producer must agree to -

(1) the termination of any contract acreage and production

flexibility contract under the Agricultural Market Transition Act

(7 U.S.C. 7201 et seq.);

(2) forgo loans for contract commodities, oilseeds, and extra

long staple cotton;

(3) not apply for crop insurance issued or reinsured by the

Secretary;

(4) comply with applicable highly erodible land and wetlands

conservation compliance requirements established under title XII

of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.);

(5) not apply for any conservation program payments from the

Secretary;

(6) not apply for disaster program benefits provided by the

Secretary; and

(7) refund the payments, with interest, issued under the flood

risk reduction contract to the Secretary, if the producer

violates the terms of the contract or if the producer transfers

the property to another person who violates the contract.

(c) Duties of Secretary

In return for a contract entered into by a producer under this

section, the Secretary shall pay the producer an amount that is not

more than 95 percent of projected contract payments under the

Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) that the

Secretary estimates the producer would otherwise have received

during the period beginning at the time the contract is entered

into under this section and ending September 30, 2002.

(d) Commodity Credit Corporation

The Secretary shall carry out the program authorized by this

section (other than subsection (e) of this section) through the

Commodity Credit Corporation.

(e) Additional payments

(1) In general

Subject to the availability of advanced appropriations, the

Secretary may make payments to a producer described in subsection

(a) of this section, in addition to the payments provided under

subsection (c) of this section, to offset other estimated Federal

Government outlays on frequently flooded land.

(2) Authorization of appropriations

There are authorized to be appropriated such sums as are

necessary to carry out paragraph (1).

(f) Limitation on payments

Amounts made available for production flexibility contracts under

section 7213 of this title shall be reduced by an amount that is

equal to the contract payments that producers forgo under

subsection (b)(1) of this section.

-SOURCE-

(Pub. L. 104-127, title III, Sec. 385, Apr. 4, 1996, 110 Stat.

1016.)

-REFTEXT-

REFERENCES IN TEXT

The Agricultural Market Transition Act, referred to in subsecs.

(a), (b)(1), and (c), is title I of Pub. L. 104-127, Apr. 4, 1996,

110 Stat. 896, which is classified principally to this chapter.

For complete classification of this Act to the Code, see References

in Text note set out under section 7201 of this title and Tables.

The Food Security Act of 1985, referred to in subsec. (b)(4), is

Pub. L. 99-198, Dec. 23, 1985, 99 Stat. 1354, as amended. Title

XII of the Act, popularly known as the ''Sodbuster Law'', is

classified principally to chapter 58 (Sec. 3801 et seq.) of Title

16, Conservation. For complete classification of this Act to the

Code, see Short Title of 1985 Amendment note set out under section

1281 of this title and Tables.

-COD-

CODIFICATION

Section was enacted as part of title III of the Federal

Agriculture Improvement and Reform Act of 1996, and not as part of

title I of the Act, known as the Agricultural Market Transition

Act, which comprises this chapter.

-CITE-